Fidus Investment Corporation (NASDAQ:FDUS) Files An 8-K Results of Operations and Financial ConditionItem 2.02.
Set forth below are certain preliminary estimates of Fidus Investment Corporation’s (“the Company”, “we” or “our”) financial condition and results of operations for the three months ended December31, 2017. These estimates are subject to the completion of financial closing procedures and are not a comprehensive statement of our financial results for the three months ended December31, 2017. We advise you that this information is inherently uncertain. Our actual results may differ materially from these estimates, which are given only as of January30, 2018, as a result of the completion of our financial closing procedures, final adjustments and other developments that arise between now and the time that our financial results for the three months ended December31, 2017 are finalized.
The preliminary financial estimates provided herein have been prepared by, and are the responsibility of, management. Neither RSM USLLP, our independent registered public accounting firm, nor any other independent accountants has audited, reviewed, compiled, or performed any procedures with respect to the accompanying preliminary financial data. Accordingly, RSM US LLP does not express an opinion or any form of assurance with respect thereto and assumes no responsibility for, and disclaims any association with, this information.
As of January30, 2018, we estimate that the range of our net investment income per share was between $0.30 and $0.32 for the three months ended December31, 2017.
As of January30, 2018, we estimate that the range of our adjusted net investment income(1) per share was between $0.34 and $0.36 for the three months ended December31, 2017.
As of January30, 2018, we estimate that the range of our net asset value per share was between $16.02 to $16.07 as of December31, 2017.
| (Per share) Three months ended December31, 2017 (unaudited) | ||||
| Low Estimate | High Estimate | |||
|
Net investment income |
$ | 0.30 | $ | 0.32 |
|
Capital gains incentive fee expense |
0.04 | 0.04 | ||
|
Adjusted net investment income(1) |
$ | 0.34 | $ | 0.36 |
| (1) | On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. Our investment advisory agreement with our investment adviser provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses for such year, less the aggregate amount of any capital gains incentive fees paid in all prior years. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. The above table provides a reconciliation of our estimates for net investment income to adjusted net investment income for the three months ended December31, 2017. |
The information disclosed under this Item 2.02 is being furnished and shall not be deemed “filed” for purposes of Section18 of the Securities Exchange Act of 1934 and shall not be deemed incorporated by reference into any filing made under the Securities Act of 1933, except as expressly set forth by specific reference in such filing.
About Fidus Investment Corporation (NASDAQ:FDUS)
Fidus Investment Corporation is a business development company. The Company provides customized debt and equity financing solutions to lower middle-market companies. Its investment objective is to provide risk-adjusted returns by generating both current income from its debt investments and capital appreciation from its equity related investments. Its investment strategy consists of collaborating with business owners, management teams and financial sponsors by providing customized financing for ownership transactions, business expansion and other growth initiatives. It invests in industries, such as healthcare products, specialty distribution, aerospace and defense manufacturing, oil and gas services, consumer products, components manufacturing and building products manufacturing. Its investment portfolio consists of subordinated notes, senior secured loans, equity and warrants. The Company’s investment advisor is Fidus Investment Advisors, LLC.