EX-99.1 2 v433929_ex99-1.htm EXHIBIT 99.1

Exhibit 99.1

GSV Capital Corp.

Page 1 of 8

 

 


 

GSV Capital Corp. Reports Fourth Quarter and Fiscal Year 2015 Financial Results

 

Net Asset Value of $12.08 per Share as of December 31, 2015

 

WOODSIDE, Calif., March 10, 2016 (GLOBE NEWSWIRE) -- GSV Capital Corp. (“GSV Capital” or the “Company”) (Nasdaq:GSVC) today announced financial results for the quarter and fiscal year ended December 31, 2015.

 

Date  Net Assets (Millions)   Net Asset Value (per share) 
As of December 31, 2015  $268.0(1)  $12.08(1)
As of September 30, 2015  $312.5   $16.17 
As of December 31, 2014  $285.9   $14.80 

 

(1)The net assets of $268.0 million, or $12.08 per share, as of December 31, 2015, reflect the $3.16 cumulative per share effect of the distribution paid on December 31, 2015 to stockholders of record as of November 16, 2015.

 

“We were pleased to make our first distribution to stockholders since inception during the fourth quarter of 2015,” said Michael Moe, Chief Executive Officer of GSV Capital. “Looking forward, our focus remains on systematically identifying and investing in what we believe are the world’s most dynamic growth companies.”

 

Investment Portfolio as of December 31, 2015

 

At December 31, 2015, GSV Capital held positions in 48 portfolio companies with an aggregate fair value of $349.8 million. Excluding Treasuries, the Company’s three largest investments comprised 27.8% of its total portfolio at fair value, while its top ten portfolio company investments accounted for 55.2% of the total portfolio at fair value.

 

Top Ten Investments at December 31, 2015

 

$ in millions (rounded)  Fair Value   % of Total Portfolio 
Palantir Technologies, Inc.  $56.4    16.1%
Dropbox, Inc.   22.2    6.4 
Twitter, Inc.   18.5    5.3 
Spotify Technology S.A.   16.2    4.6 
Coursera, Inc.   14.4    4.1 
Solexel, Inc.   14.0    4.0 
PayNearMe, Inc.   14.0    4.0 
Lyft, Inc.   14.0    4.0 
Declara, Inc.   12.0    3.4 
General Assembly Space, Inc.   11.5    3.3 
Total (rounded)  $193.3    55.2%

  

 

 

 

GSV Capital Corp.

Page 2 of 8

 

Of the five key investment themes GSV Capital has identified in its portfolio, Cloud Computing and Big Data is its largest commitment, constituting 35.3% of the total portfolio at fair value. Education Technology represents 28.2% of the total portfolio at fair value, and Social Mobile, Marketplaces and Sustainability represent 17.2%, 12.6% and 6.7% of the total portfolio at fair value, respectively.

 

Fourth Quarter 2015 Portfolio Investment Activity

 

In the fourth quarter of 2015, GSV Capital invested approximately $13.8 million, including follow-on investments of approximately $10.0 million in Spotify, $2.0 million in Declara, $1.2 million in GSV Sustainability Partners, $500,000 in EdSurge, and $25,000 in Circle Media.

 

Subsequent to fourth quarter-end, through March 10, 2016, GSV Capital invested approximately $5.0 million, including follow-on investments of approximately $2.5 million in Lytro, $2.0 million in Curious.com, and $500,000 in GSVlabs.

 

GSV Capital sold shares in the following portfolio companies subsequent to fourth quarter-end:

 

      

Average 

             
   Shares   Net Share   Net   Realized     
Portfolio Company  Sold   Price 1   Proceeds   Gain/(Loss) 2   IRR 
                     
Lyft, Inc.   65,557   $25.00   $1,638,925   $974,224    62.3%
Bloom Energy Corporation   201,589   $14.75    2,973,438    (882,163)   (5.9%)
Total            $4,612,363   $92,061      

 

 

 

(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) excludes any realized gains (losses) incurred on the maturity of GSV Capital’s treasury investments.

 

At quarter-end, and as of March 10, 2016, GSV Capital had no borrowings outstanding and $18.0 million of borrowing capacity available to it under its credit facility.

 

Fourth Quarter 2015 Financial Results 

 

  

Three Months Ended

December 31, 2015

  

Three Months Ended

December 31, 2014

 
  

 

$ in millions
(rounded)

  

 

per share

  

 

$ in millions
(rounded)

  

 

per share

 
Net investment loss  $(4.7)  $(0.24)  $(1.7)  $(0.09)
                     
Net realized gains/(losses)  $(0.0)  $(0.00)  $6.1   $0.31 
                     
(Provision)/benefit for taxes on net realized gains   -    -   $(2.5)  $(0.13)
                     
Net change in unrealized depreciation of investments  $(13.5)  $(0.69)  $(15.5)  $(0.79)
                     
(Provision)/benefit for taxes on unrealized appreciation/ depreciation of investments  $0.0   $0.00   $6.3   $0.33 
                     
Net decrease in net assets resulting from operations - basic  $(18.1)  $(0.94)  $(7.2)  $(0.37)
                     

 

Weighted-average common basic shares outstanding were approximately 19.4 million for the three months ended December 31, 2015 and 19.3 million for the three months ended December 31, 2014.

 

 

 

 

GSV Capital Corp.

Page 3 of 8

 

Fiscal Year 2015 Financial Results

 

  

Fiscal Year Ended

December 31, 2015

  

Fiscal Year Ended

December 31, 2014

 
   $ in millions
(rounded)
  

 

per share

   $ in millions
(rounded)
  

 

per share

 
Net investment loss  $(48.7)  $(2.52)  $(12.8)  $(0.66)
                     
Net realized gains  $54.1   $2.80   $23.9   $1.24 
                     
(Provision)/benefit for taxes on net realized gains  $0.3   $0.02   $(9.8)  $(0.51)
                     
Net change in unrealized depreciation of investments  $(13.4)  $(0.69)  $(5.8)  $(0.30)
                     
(Provision)/benefit for taxes on unrealized appreciation/ depreciation of investments  $16.1   $0.83   $2.4   $0.12 
                     
Net increase/(decrease) in net assets resulting from operations - basic  $8.5   $0.44   $(2.1)  $(0.11)
                     

 

Weighted-average common basic shares outstanding were approximately 19.3 million for the fiscal years ended December 31, 2015 and December 31, 2014.

 

GSV Capital’s liquid assets ended the quarter at $57.9 million, consisting of $13.3 million of cash, $18.0 million of unused borrowings available under the Company’s credit facility and $26.6 million of public securities not subject to lock-up agreements, $100,000 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 800-467-8998, and the conference call number for participants outside of the United States is 1-719-325-2115. The conference ID number for both call numbers is 3594811. 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 March 17, 2016 by dialing 888-203-1112 (U.S.) or 1-719-457-0820 (international) and using conference ID number 3594811.

 

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

 

 

 

 

GSV Capital Corp.

Page 4 of 8

 

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.

 

Contact

 

GSV Capital Corp.

(650) 235-4769

IR@gsvam.com

  

 

 

 

 

 

 

 

 

GSV Capital Corp.

Page 5 of 8

 

GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES

 

   December 31, 2015   December 31, 2014 
ASSETS        
Investments at fair value:        
Investments in controlled securities (cost of $21,830,392 and $17,933,651, respectively) (1)  $22,871,790   $18,819,335 
Investments in affiliated securities (cost of $73,942,123 and $80,760,208, respectively) (1)   66,075,585    70,172,313 
Investments in non-controlled/non-affiliated securities (cost of $197,577,328 and $202,417,830, respectively)   260,861,392    281,992,669 
Investments in treasury bill (cost of $29,999,968 and $100,001,692, respectively)   30,000,000    100,000,056 
Investments owned and pledged (amortized cost of $3,675,192 and $7,286,332, respectively) (2)   3,676,693    7,298,042 
Total Investments (cost of $327,025,003 and $408,399,713, respectively)   383,485,460    478,282,415 
           
Cash   13,349,877    3,472,880 
Restricted cash   52,931    48,889 
Due from:          
GSV Asset Management (1)   220,770    204,825 
Portfolio companies (1)   56,371    85,356 
Interest and dividends receivable   97,183    26,671 
Prepaid expenses and other assets   227,826    596,926 
Deferred financing costs   2,300,225    2,928,134 
Total Assets   399,790,643    485,646,096 
           
LIABILITIES          
Due to:          
GSV Asset Management (1)   5,047,429    23,396 
Accounts payable and accrued expenses   105,587    292,950 
Accrued incentive fees (1)    17,314,565    14,137,899 
Accrued management fees (1)    683,423    641,276 
Accrued interest payable   1,056,563    1,139,458 
Payable for securities purchased   26,499,357    90,001,692 
Current taxes payable   -    134,733 
Deferred tax liability   12,476,155    6,907,666 
Line of credit payable   -    18,000,000 
Convertible Senior Notes embedded derivative liability   -    1,000 
Convertible Senior Notes payable 5.25% due September 15, 2018   68,596,619    68,462,353 
Total Liabilities   131,779,698    199,742,423 
Commitments and contingencies          
Net Assets  $268,010,945   $285,903,673 
           
NET ASSETS          
Common stock, par value $0.01 per share          
(100,000,000 authorized; 22,181,003 and 19,320,100 issued and outstanding, respectively)  $221,810   $193,201 
Paid-in capital in excess of par   237,757,527    275,837,514 
Accumulated net investment loss   (16,634,037)   (31,972,292)
Accumulated net realized gains on investments   2,681,342    496,782 
Accumulated net unrealized appreciation of investments   43,984,303    41,348,468 
Net Assets  $268,010,945   $285,903,673 
           
Net Asset Value Per Share  $12.08   $14.80 

 

(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 December 31, 2015, four 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 December 31, 2015, 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 $3,675,192.

  

 

 

 

GSV Capital Corp.

Page 6 of 8

 

GSV CAPITAL CORP. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

 

   Year ended   Year ended   Year ended 
   December 31,
2015
   December 31,
2014
   December 31,
2013
 
INVESTMENT INCOME            
Interest income from controlled securities (1)  $-   $10,233   $- 
Interest income from affiliated securities (1)   214,420    130,021    23,615 
Interest income from non-controlled/non-affiliated securities   29,695    44,805    2,256 
Dividend income from affiliated securities (1)   -    -    13,008 
Dividend income from non-controlled/non-affiliated securities   46,781    887    10,072 
Total Investment Income   290,896    185,946    48,951 
                
OPERATING EXPENSES               
Management fees (1)   8,044,801    7,562,488    5,426,485 
Incentive fees (1)   8,170,326    3,614,347    10,523,552 
Costs incurred under Administration Agreement (1)   2,681,079    3,199,904    3,089,771 
Directors’ fees   373,676    260,000    260,250 
Professional fees   1,357,988    1,764,722    876,769 
Interest and Credit Facility expense   4,961,169    5,503,843    1,278,997 
Income tax expense   880,778    -    - 
Other expenses   509,418    668,635    529,051 
(Gain)/Loss on fair value adjustment for embedded derivative   (1,000)   (798,000)   99,000 
Total Operating Expenses   26,978,235    21,775,939    22,083,875 
                
(Provision)/Benefit for taxes on net investment loss (2)   (21,969,370)   8,810,102    13,159,268 
                
Net Investment Loss   (48,656,709)   (12,779,891)   (8,875,656)
                
Net Realized Gains/(Losses):               
From affiliated securities   (10,170,567)   10,419    (7,839,791)
From non-controlled/non-affiliated securities   64,314,796    23,915,705    (13,866,230)
Net Realized Gains/(Losses) on investments   54,144,229    23,926,124    (21,706,021)
                
(Provision)/Benefit for taxes on net realized               
gain/loss on investments (2)   342,802    (9,769,036)   9,426,234 
                
Net Change in Unrealized Appreciation/               
(Depreciation) of investments:               
From controlled securities   (627,139)   (662,619)   - 
From affiliated securities   1,386,378    (6,867,225)   1,600,822 
From non-controlled/non-affiliated securities   (14,181,484)   1,718,047    85,844,327 
Net Change in Unrealized Appreciation/               
 (Depreciation) of investments   (13,422,245)   (5,811,797)   87,445,149 
                
(Provision)/Benefit for taxes on unrealized               
appreciation/depreciation of investments (2)   16,058,080    2,371,829    (30,906,063)
                
Net Increase/(Decrease) in Net Assets               
Resulting from Operations  $8,466,157   $(2,062,771)  $35,383,643 
                
Net Increase/(Decrease) in Net Assets Resulting               
from Operations per Common Share               
Basic  $0.44   $(0.11)  $1.83 
Diluted (3)  $0.44   $(0.11)  $1.78 
                
Weighted-Average Common Shares Outstanding               
Basic   19,327,938    19,320,100    19,320,100 
Diluted (3)   19,327,938    19,320,100    20,541,014 

 

(1)This balance is a related-party transaction.
(2)Due to the Company’s change in tax status to a regulated investment company (“RIC”) from a C Corporation, the associated accrued benefits and provisions from previous years were reversed, resulting in a provision for net investment loss, a benefit for net realized gains, and a benefit for unrealized depreciation of investments for the year ended December 31, 2015.
(3)For the years ended December 31, 2015, and 2014, respectively, 5,710,212 and 4,244,128 potentially dilutive common shares were excluded from the weighted-average common shares outstanding for diluted net increase in net assets resulting from operations per common share because the effect of these shares would have been anti-dilutive.

 

 

 

 

GSV Capital Corp.

Page 7 of 8

 

GSV CAPITAL CORP. AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

 

 

   Three months ended   Three months ended 
   December 31,   December 31, 
   2015   2014 
Net asset value at beginning of period  $16.17   $15.17 
Net investment loss   (0.24)   (0.09)
Realized gain/(loss)   -    0.31 
(Provision)/benefit for taxes on net realized capital gains/losses   -    (0.13)
Change in unrealized appreciation/(depreciation)   (0.69)   (0.79)
(Provision)/benefit for taxes on unrealized appreciation/deprecation of investments   -    0.33 
Cash dividends paid   (1.36)   - 
Effect of shares issued including dilution   (1.80)   - 
Net asset value at end of period  $12.08   $14.80 

 

 

 

 

 

  

 

 

 

GSV Capital Corp.

Page 8 of 8

  

GSV CAPITAL CORP. AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS – (continued)

 

                            For the
period from
   
                            January 6, 2011   
   Year ended     Year ended     Year ended     Year ended      (date of inception)   
   December 31,     December 31,     December 31,     December 31,      to December 31,   
   2015     2014     2013     2012      2011   
Net asset value at beginning of year  $14.80     $14.91     $13.07     $12.95      $-   
Issuance of common shares   -      -      -      1.91   (4)   14.67  (5)
Underwriters’ discount   -      -      -      (0.72)  (2)   (0.86) (2)
Offering costs   -      -      -      (0.04   (2)   (0.19) (2)
Net investment loss   (2.52) (1)   (0.66) (1)   (0.46) (1)   (0.51)  (1)   (0.37) (2)
Realized gain (loss)   2.80  (1)   1.24  (1)   (1.12) (1)   (0.09)  (1)   -  (2)
(Provision)/Benefit for taxes on net realized capital gains/losses   0.02  (1)   (0.51) (1)   0.49  (1)   -       -   
Change in unrealized appreciation (depreciation)   (0.69) (1)   (0.30) (1)   4.53  (1)   (0.43)  (6)   (0.30) (2)
(Provision)/Benefit for taxes on unrealized appreciation/deprecation of investments   0.83  (1)   0.12  (1)   (1.60) (1)   -       -   
Cash dividends paid   (1.36)     -      -      -       -   
Effect of shares issued including dilution   (1.80)     -      -      -       -   
Net asset value at end of year  $12.08     $14.80     $14.91     $13.07      $12.95   
                                     
Per share market value at end of year  $9.37     $8.63     $12.09     $8.43      $13.95   
Shares outstanding at end of year   22,181,003      19,320,100      19,320,100      19,320,100       5,520,100   
       .      .                      
Ratio / Supplemental Data:                                    
Net assets at end of year  $268,010,945     $285,903,673     $287,966,444     $252,582,801      $71,503,248   
Average net assets  $296,560,393     $284,953,811     $250,121,052     $208,050,344      $44,532,523   
                                     
Annualized Ratios                                    
Ratio of gross operating expenses to average net assets (3)   9.10%    7.64%    8.83%     4.10%      5.01%  
Ratio of net income tax provisions to average net assets (3)   (1.88)%    (0.50)%    (3.33)%     -%      -%  
Ratio of net operating expenses to average net assets (3)   7.22%    7.14%    5.50%     4.10%      5.01%  
                                     
Ratio of net investment loss to average net assets (3)   (16.41)%    (4.48)%    (3.55)%     (3.98)%      (4.64)%  
Portfolio Turnover Ratio   8.30%    19.45%    2.89%     13.26%      N/A%

 


(1) Based on weighted-average number of shares outstanding for the year.
(2) Based on shares outstanding at end of period.
(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 years ended December 31, 2015, 2014, and 2013, respectively the Company did not incur any non-recurring expenses. For the year-end December 31, 2012, and for the period from January 6, 2011 (date of inception) to December 31, 2011, the Company incurred $0, and $198,831 of organizational expenses, respectively, which were deemed to be non-recurring. For the period from January 6, 2011 (date of inception) to December 31, 2011, average net assets were calculated starting from the issuance of 100 shares on February 28, 2011. 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.
(4) Issuance of common shares for the year ended December 31, 2012 is based on the change in net asset value from the secondary offerings on February 10, 2012 and May 11, 2012.
(5) Issuance of common shares for the period from January 6, 2011 (date of inception) to December 31, 2011 is based on the weighted average offering price for the shares issued during the period.
(6) Includes the impact of the different share amounts as a result of calculating certain per share data based on the weighted average basic shares outstanding during the period and certain per share data based on the shares outstanding as of a period end or transaction date.