WOODSIDE, Calif., May 09, 2016 (GLOBE NEWSWIRE) -- GSV Capital Corp. ("GSV Capital" or the "Company") GSVC today announced financial results for the quarter ended March 31, 2016.
| Date | Net Assets (Millions) | Net Asset Value (per share) | |||||||||
| As of March 31, 2016 | $ | 243.1 | $ | 10.96 | |||||||
| As of December 31, 2015 | $ | 268.0 | $ | 12.08 | |||||||
| As of March 31, 2015 | $ | 302.6 | $ | 15.66 | |||||||
"Despite first quarter volatility in both public and private markets, we are pleased with the fundamentals of the GSV Capital portfolio," said Michael Moe, Chief Executive Officer of GSV Capital. "Due to markdowns in leading positions, including Palantir, Dropbox and Twitter, where growth remains robust, our net asset value per share decreased $1.12 in the quarter. We believe that over time, growth drives enterprise value, and ultimately stockholder returns. Accordingly, GSV Capital remains committed to building a portfolio of companies with high, sustainable growth rates."
Moe continued, "We would also like to invite our stockholders to GSV Capital's annual Investor Day on Wednesday, June 1, at GSVlabs in Redwood City from 1:00PM-5:00PM (Pacific Time), where we will feature CEOs of our portfolio companies. Presenting companies include Coursera, Enjoy, Lytro, PayNearMe, OZY, DogVacay, Declara and Curious. To RSVP, please visit gsv.com/gsvc-investor-day."
Investment Portfolio as of March 31, 2016
At March 31, 2016, GSV Capital held positions in 46 portfolio companies with an aggregate fair value of $325.3 million. Excluding Treasuries, the Company's three largest investments comprised 25.1% of its total portfolio at fair value, while its top ten portfolio company investments accounted for 53.8% of the total portfolio at fair value.
| Top Ten Investments at March 31, 2016 | ||||||
| $ in millions (rounded) | Fair Value | % of Total Portfolio | ||||
| Palantir Technologies, Inc. | $ | 46.1 | 14.2 | % | ||
| Dropbox, Inc. | 19.2 | 5.9 | ||||
| Spotify Technology S.A. | 16.2 | 5.0 | ||||
| Coursera, Inc. | 14.4 | 4.4 | ||||
| Solexel, Inc. | 14.0 | 4.3 | ||||
| PayNearMe, Inc. | 14.0 | 4.3 | ||||
| Lyft, Inc. | 13.7 | 4.2 | ||||
| Twitter, Inc. | 13.2 | 4.1 | ||||
| Declara, Inc. | 12.0 | 3.7 | ||||
| Curious.com, Inc. | 12.0 | 3.7 | ||||
| Total (rounded) | $ | 174.9 | 53.8 | % | ||
Of the five key investment themes GSV Capital has identified in its portfolio, Cloud Computing and Big Data is its largest commitment, constituting 32.9% of the total portfolio at fair value. Education Technology represents 30.3% of the total portfolio at fair value, and Social Mobile, Marketplaces and Sustainability represent 17.6%, 13.3% and 5.9% of the total portfolio at fair value, respectively.
First Quarter 2016 Portfolio Investment Activity
In the first quarter of 2016, GSV Capital invested approximately $6.0 million, including follow-on investments of approximately $2.5 million in Lytro, $2.0 million in Curious.com, $1.0 million in Fullbridge, and $500,000 in nestGSV (d/b/a GSVlabs).
Subsequent to first quarter-end, through May 9, 2016, GSV Capital invested approximately $4.0 million in Snapchat.
GSV Capital sold shares in the following portfolio companies during the first quarter:
| Shares | Net Share | Net | Realized | |||||||||||
| Portfolio Company | Sold | Price 1 | Proceeds | Gain/(Loss) 2 | ||||||||||
| Bloom Energy Corporation | 201,589 | $ | 14.75 | $ | 2,973,437 | $ | (882,162 | ) | ||||||
| Gilt Groupe Holdings, Inc. 3 | 248,600 | $ | 1.72 | 427,270 | (6,167,164 | ) | ||||||||
| Lyft, Inc. | 65,557 | $ | 25.00 | 1,638,925 | 974,224 | |||||||||
| Total | $ | 5,039,632 | $ | (6,075,102 | ) | |||||||||
__________
(1) The average net share price is the net share price realized after deducting all commissions and fees on the sale(s).
(2) Realized gains/(losses) exclude any realized gains/(losses) incurred on the maturity of GSV Capital's treasury investments.
(3) In January 2016, Gilt Groupe Holdings, Inc. sold for $250 million to Hudson's Bay Co., the parent company of Saks Fifth Avenue.
Subsequent to first quarter-end, through May 9, 2016, GSV Capital sold shares in the following portfolio company:
| Shares | Net Share | Net | Realized | |||||||||
| Portfolio Company | Sold | Price 1 | Proceeds | Gain 2 | ||||||||
| Lyft, Inc. | 27,582 | $ | 24.00 | $ | 661,968 | $ | 382,078 | |||||
__________
(1) The average net share price is the net share price realized after deducting all commissions and fees on the sale(s).
(2) Realized gains/(losses) exclude any realized gains/(losses) incurred on the maturity of GSV Capital's treasury investments.
At quarter-end, and as of May 9, 2016, GSV Capital had no borrowings outstanding and $18.0 million of borrowing capacity available to it under its credit facility.
First Quarter 2016 Financial Results
| Three Months Ended March 31, 2016 | Three Months Ended March 31, 2015 | |||||||||||
| $ in millions (rounded) | per share | $ in millions (rounded) | per share | |||||||||
| Net investment income/(loss) | $ | 0.5 | $ | 0.02 | $ | (7.6 | ) | $ | (0.39 | ) | ||
| Net realized gains/(losses) | $ | (6.1 | ) | $ | (0.27 | ) | $ | 13.2 | $ | 0.68 | ||
| Provision for taxes on net realized gains | - | - | $ | (5.4 | ) | $ | (0.28 | ) | ||||
| Net change in unrealized appreciation/(depreciation) of investments | $ | (19.4 | ) | $ | (0.87 | ) | $ | 27.8 | $ | 1.44 | ||
| Provision for taxes on unrealized appreciation of investments | - | - | $ | (11.4 | ) | $ | (0.59 | ) | ||||
| Net increase/(decrease) in net assets resulting from operations - basic | $ | (24.9 | ) | $ | (1.12 | ) | $ | 16.7 | $ | 0.86 | ||
Weighted-average common basic shares outstanding were approximately 22.2 million for the three months ended March 31, 2016 and 19.3 million for the three months ended March 31, 2015.
GSV Capital's liquid assets ended the quarter at $41.0 million, consisting of $4.4 million of cash, $18.0 million of unused borrowings available under the Company's credit facility and $18.7 million of public securities not subject to lock-up agreements, $133,678 of which are subject to periodic sales restrictions.
Conference Call and Webcast
Management will hold a conference call and webcast for investors today at 2:00 p.m. PT (5:00 p.m. ET). The conference call number for U.S. participants is 888-523-1232, and the conference call number for participants outside of the United States is 1-719-325-2201. The conference ID number for both call numbers is 9445452. Additionally, interested parties can listen to a live webcast of the call from the "Investors" section of GSV Capital's website at http://investors.gsvcap.com/. An archived replay of the webcast will also be available for 12 months following the live presentation.
A replay of the conference call may be accessed through May 16, 2016 by dialing 888-203-1112 (U.S.) or 1-719-457-0820 (international) and using conference ID number 9445452.
About GSV Capital Corp.
GSV Capital Corp. (GSVC) is a publicly traded investment fund that seeks to invest in high-growth, venture-backed private companies. Led by industry veteran Michael Moe, the Company seeks to create a portfolio of high-growth emerging private companies via a repeatable and disciplined investment approach, as well as to provide investors with access to such companies through its publicly traded common stock. GSV Capital is headquartered in Woodside, CA. www.gsvcap.com
Follow GSV Capital on Twitter: @gsvcap
The GSV Capital Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=12750
Forward-Looking Statements
Statements included herein may constitute "forward-looking statements," which relate to future events or our future performance or financial condition. These statements are not guarantees of our future performance, condition or results of operations and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the SEC. GSV Capital Corp. undertakes no duty to update any forward-looking statements made herein, unless required to do so by law.
| GSV CAPITAL CORP. AND SUBSIDIARIES | |||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES | |||||||||
| March 31, 2016 | December 31, 2015 | ||||||||
| ASSETS | (Unaudited) | ||||||||
| Investments at fair value: | |||||||||
| Investments in controlled securities (cost of $22,330,392 and $21,830,392, respectively) (1) | $ | 23,105,062 | $ | 22,871,790 | |||||
| Investments in affiliated securities (cost of $71,994,560 and $73,942,123, respectively) (1) | 67,935,085 | 66,075,585 | |||||||
| Investments in non-controlled/non-affiliated securities (cost of $193,925,756 and $197,577,328, respectively) | 234,248,249 | 260,861,392 | |||||||
| Investments in treasury bill (cost of $29,999,883 and $29,999,968, respectively) | 29,999,883 | 30,000,000 | |||||||
| Investments owned and pledged (amortized cost of $1,845,845 and $3,675,192, respectively) (2) | 1,847,613 | 3,676,693 | |||||||
| Total Investments (cost of $320,096,436 and $327,025,003, respectively) | 357,135,892 | 383,485,460 | |||||||
| Cash | 4,381,411 | 13,349,877 | |||||||
| Restricted cash | 75,681 | 52,931 | |||||||
| Due from: | |||||||||
| GSV Asset Management (1) | 1,623 | 220,770 | |||||||
| Portfolio companies (1) | 52,491 | 56,371 | |||||||
| Interest and dividends receivable | 185,534 | 97,183 | |||||||
| Prepaid expenses and other assets | 161,223 | 227,826 | |||||||
| Deferred financing costs (3) | 328,820 | 352,653 | |||||||
| Total Assets | 362,322,675 | 397,843,071 | |||||||
| LIABILITIES | |||||||||
| Due to: | |||||||||
| GSV Asset Management (1) | 25,690 | 5,047,429 | |||||||
| Accounts payable and accrued expenses | 393,161 | 105,587 | |||||||
| Accrued incentive fees (1) | 12,195,980 | 17,314,565 | |||||||
| Accrued management fees (1) | 655,912 | 683,423 | |||||||
| Accrued interest payable | 150,938 | 1,056,563 | |||||||
| Payable for securities purchased | 26,499,883 | 26,499,357 | |||||||
| Deferred tax liability | 12,476,155 | 12,476,155 | |||||||
| Convertible Senior Notes payable 5.25% due September 15, 2018 (2)(3) | 66,863,075 | 66,649,047 | |||||||
| Total Liabilities | 119,260,794 | 129,832,126 | |||||||
| Commitments and contingencies (Note 6) | |||||||||
| Net Assets | $ | 243,061,881 | $ | 268,010,945 | |||||
| NET ASSETS | |||||||||
| Common stock, par value $0.01 per share | |||||||||
| (100,000,000 authorized; 22,181,003 issued and outstanding, respectively) | $ | 221,810 | $ | 221,810 | |||||
| Paid-in capital in excess of par | 237,757,527 | 237,757,527 | |||||||
| Accumulated net investment loss | (16,087,030 | ) | (16,634,037 | ) | |||||
| Accumulated net realized gains/(losses) on investments | (3,393,728 | ) | 2,681,342 | ||||||
| Accumulated net unrealized appreciation of investments | 24,563,302 | 43,984,303 | |||||||
| Net Assets | $ | 243,061,881 | $ | 268,010,945 | |||||
| Net Asset Value Per Share | $ | 10.96 | $ | 12.08 | |||||
(1) This balance is a related-party transaction.
(2) In accordance with the terms of the Company's Convertible Senior Notes payable, the Company deposited $10,867,500 in an escrow account with U.S. Bank National Association, the trustee. These funds were used to purchase six U.S. Treasury Strips with an original cost of $10,845,236. As of March 31, 2016, five of the government securities purchased had matured and the proceeds were used by the trustee in accordance with the terms of the escrow agreement. At March 31, 2016, the remaining government securities are shown on the Condensed Consolidated Statements of Assets and Liabilities as "Investments owned and pledged" with an amortized cost of $1,845,845. The Convertible Senior Notes have a face value of $69,000,000 due to the Company's investors.
(3) Deferred debt issuance costs of $1,947,572 related to the Company's issuance of the Convertible Senior Notes payable was previously classified as Deferred Financing costs as of December 31, 2015. In accordance with ASU 2015-03, this balance has been retrospectively reclassified as a direct deduction from the Convertible Senior Notes on the Condensed Consolidated Statements of Assets and Liabilities.
| GSV CAPITAL CORP. AND SUBSIDIARIES | |||||||||||
| CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||
| Three months ended | Three months ended | ||||||||||
| March 31, 2016 | March 31, 2015 | ||||||||||
| INVESTMENT INCOME | |||||||||||
| Interest income from controlled securities (1) | $ | 4,889 | $ | - | |||||||
| Interest income from affiliated securities (1) | 92,478 | 51,231 | |||||||||
| Interest income from non-controlled/non-affiliated securities | 5,285 | 7,793 | |||||||||
| Total Investment Income | 102,652 | 59,024 | |||||||||
| OPERATING EXPENSES | |||||||||||
| Management fees (1) | 1,958,000 | 1,921,128 | |||||||||
| (Reversal of Incentive fee accrual)/Incentive fees (1) | (5,118,584 | ) | 8,211,728 | ||||||||
| Costs incurred under Administration Agreement (1) | 599,950 | 802,396 | |||||||||
| Directors' fees | 86,250 | 85,306 | |||||||||
| Professional fees | 637,128 | 341,744 | |||||||||
| Interest expense | 1,183,163 | 1,368,803 | |||||||||
| Other expenses | 209,738 | 121,325 | |||||||||
| Total Operating Expenses | (444,355 | ) | 12,852,430 | ||||||||
| Benefit for taxes on net investment loss | - | 5,223,611 | |||||||||
| Net Investment Income/(Loss) | 547,007 | (7,569,795 | ) | ||||||||
| Net Realized Gains/(Losses): | |||||||||||
| From non-controlled/non-affiliated securities | (6,075,070 | ) | 13,218,403 | ||||||||
| Net Realized Gains/(Losses) on investments | (6,075,070 | ) | 13,218,403 | ||||||||
| Provision for taxes on net realized | |||||||||||
| gains on investments | - | (5,397,074 | ) | ||||||||
| Net Change in Unrealized Appreciation/ | |||||||||||
| (Depreciation) of investments: | |||||||||||
| From controlled securities (1) | (266,728 | ) | (141,656 | ) | |||||||
| From affiliated securities (1) | (1,148,187 | ) | 249,522 | ||||||||
| From non-controlled/non-affiliated securities | (18,006,086 | ) | 27,676,215 | ||||||||
| Net Change in Unrealized Appreciation/ | |||||||||||
| (Depreciation) of investments | (19,421,001 | ) | 27,784,081 | ||||||||
| Provision for taxes on unrealized | |||||||||||
| appreciation of investments | - | (11,370,993 | ) | ||||||||
| Net Increase/(Decrease) in Net Assets | |||||||||||
| Resulting from Operations | $ | (24,949,064 | ) | $ | 16,664,622 | ||||||
| Net Increase/(Decrease) in Net Assets Resulting | |||||||||||
| from Operations per Common Share | |||||||||||
| Basic | $ | (1.12 | ) | $ | 0.86 | ||||||
| Diluted (2) | $ | (1.12 | ) | $ | 0.73 | ||||||
| Weighted-Average Common Shares Outstanding | |||||||||||
| Basic | 22,181,003 | 19,320,100 | |||||||||
| Diluted (2) | 22,181,003 | 23,564,228 | |||||||||
(1) This balance is a related-party transaction.
(2) For the three months ended March 31, 2016, 5,710,212 potentially dilutive common shares were excluded from the weighted-average common shares outstanding for diluted net decrease in net assets resulting from operations per common share because the effect of these shares would have been anti-dilutive.
| GSV CAPITAL CORP. AND SUBSIDIARIES | ||||||||||||||||
| FINANCIAL HIGHLIGHTS | ||||||||||||||||
| Three months ended | Three months ended | |||||||||||||||
| March 31, 2016 | March 31, 2015 | |||||||||||||||
| Per Share Data | (Unaudited) | (Unaudited) | ||||||||||||||
| Net asset value at beginning of period | $ | 12.08 | $ | 14.80 | ||||||||||||
| Net investment income/(loss) | 0.02 | (1 | ) | (0.39 | ) | (1 | ) | |||||||||
| Realized gain/(loss) | (0.27 | ) | (1 | ) | 0.68 | (1 | ) | |||||||||
| Provision for taxes on net realized capital gains | - | (1 | ) | (0.28 | ) | (1 | ) | |||||||||
| Net change in unrealized appreciation/(depreciation) | (0.87 | ) | (1 | ) | 1.44 | (1 | ) | |||||||||
| Provision for taxes on unrealized appreciation of investments | - | (1 | ) | (0.59 | ) | (1 | ) | |||||||||
| Net asset value at end of period | $ | 10.96 | $ | 15.66 | ||||||||||||
| Per share market value at end of period | $ | 5.60 | $ | 9.80 | ||||||||||||
| Total return based on market value | (15.28 | ) | %(2) | 13.56 | % (2) | |||||||||||
| Total return based on net asset value | (9.27 | ) | %(2) | 5.81 | % (2) | |||||||||||
| Shares outstanding at end of period | 22,181,003 | 19,320,100 | ||||||||||||||
| Ratio/Supplemental Data: | ||||||||||||||||
| Net assets at end of period | $ | 243,061,881 | $ | 302,568,295 | ||||||||||||
| Average net assets | $ | 275,907,870 | $ | 296,308,650 | ||||||||||||
| Annualized ratios | ||||||||||||||||
| Ratio of gross operating expenses to average net assets (3) | (0.65 | ) | % | 17.59 | % | |||||||||||
| Ratio of net income tax provisions to average net assets (3) | - | % | (15.80 | ) | % | |||||||||||
| Ratio of net operating expenses to average net assets (3) | (0.65 | ) | % | 1.79 | % | |||||||||||
| Ratio of net investment income (loss) to | ||||||||||||||||
| average net assets (3) | 0.80 | % | (10.36 | ) | % | |||||||||||
| Portfolio Turnover Ratio | 1.55 | % | 2.33 | % | ||||||||||||
(1) Based on weighted-average number of shares outstanding for the period.
(2) Total return based on market value is based on the change in market price per share between the opening and ending market values per share in the period. Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share.
(3) Financial Highlights for periods of less than one year are annualized and the ratios of operating expenses to average net assets and net investment loss to average net assets are adjusted accordingly. Non-recurring expenses are not annualized. For each of the three months ended March 31, 2016 and 2015, the Company did not incur any non-recurring expenses. Because the ratios are calculated for the Company's common stock taken as a whole, an individual investor's ratios may vary from these ratios.
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