In reporting its results for the third quarter of fiscal 2014 on Tuesday, Prospect Capital saw its net investment income increase from $0.26 per share in the third quarter of last year to $0.31 per share in the most recent quarter, a 30% gain. Meanwhile, net investment income at the business development company increased by 65% to $98.5 million. However, its common shares outstanding have risen by approximately 35% over the past year. That's why EPS was up, but not as significantly as the total dollar amount.
Total assets at Prospect Capital have risen from $4.5 billion through the end of March 2013 to $6.4 billion at the end of the most recent quarter, a 43% gain. It made 18 new and follow-on investments for a total of more than $1.3 billion in the most recent quarter, a record total.
Included in those originations were a $277.5 debt facility for Instant Web, which provides direct marketers with direct marketing solutions, and a $246 million cash investment in Harbortouch Payments, which provides point-of-sale equipment merchants use to process transactions.
The company said that it "closed approximately 65% of our March 2014 quarter originations during the last two business days of the quarter," and as a result, "we did not realize the full economic benefit possible from such investments during the quarter." The company continued: "However, we expect to generate full-quarter interest benefits in the June 2014 quarter from these investments."
The article Prospect Capital Corporation's Net Investment Income Jumps 30% to $0.31 Per Share originally appeared on Fool.com.Patrick Morris and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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