GSV Capital Reports Second Quarter 2012 Results of Operations
WOODSIDE, Calif., Aug. 8, 2012 (GLOBE NEWSWIRE) -- GSV Capital Corp., "GSV", (Nasdaq:GSVC) today reported financial results for the second quarter ended June 30, 2012.
Management Commentary
"GSV's portfolio expanded to 34 high-growth venture-backed companies in the second quarter, and we added six more companies since quarter-end. Today our largest investment as a percentage of net assets is Twitter, followed by Palantir, Violin Memory, Chegg and Dropbox. We continued to build a diversified portfolio across our major investment themes demonstrating an ongoing ability to source and close investments in companies that we believe represent game-changing technology ideas that will drive meaningful growth in the years ahead," said Michael Moe, GSV's CEO and founder.
Portfolio Summary and Investment Activity
The total value of GSV's portfolio investments was $171.6 million at June 30, 2012. During the second quarter of 2012, GSV invested approximately $98.5 million in nine new and eight existing portfolio companies.
GSV invested in the following new portfolio companies during the second quarter: Avenues World Holdings, Dailybreak, Fullbridge, Global Education Learning, NestGSV, Solexel, Top Hat and Violin Memory.
GSV also made additional investments in current portfolio companies AltEgo, Bloom Energy, Chegg, Control4, Dropbox, Kno, Silver Springs Networks and Twitter during the second quarter.
Recent Developments
The Company closed on investments totaling $42.6 million, plus transaction costs, subsequent to June 30, 2012, which included investments in 2tor, AltEgo, Dataminr, Gilt Groupe, Maven Research, NestGSV Silicon Valley, Palantir, SinoLending, Spotify, Totus Solutions and Twitter.
Portfolio as of June 30, 2012
GSV's investment portfolio consists of companies that it believes benefit from "megatrends" that have the potential to drive the market in the years to come. GSV invests in companies that combine what it believes are powerful technological, economic and social forces that create growth opportunities in the economy.
At the end of the second quarter of 2012, GSV's portfolio included investments in the following companies: AltEgo, AlwaysOn, Avenues World Holdings, Bloom Energy, Chegg, Control4, CUX, Dailybreak, DreamBox Learning, Dropbox, Facebook, Fullbridge, Gilt Groupe, Global Education Learning, Grockit, Groupon, Kno, Maven Research, NestGSV, Palantir, Serious Energy, SharesPost, Silver Spring Networks, Solexel, StormWind, The Echo System, The rSmart Group, Top Hat, TrueCar, Twitter, Violin Memory, ZocDoc, ZoomSystems and Zynga.
| Financial Results | |
| June 30, 2012 | |
| Total Portfolio Investments | $171,598,410 |
| Total Investments | $187,598,410 |
| Total Cash | $79,617,068 |
| Total Assets | $267,754,402 |
| Total Liabilities | $894,348 |
| Net Assets | $266,860,054 |
| Net Asset Value Per Share | $13.81 |
| For the three | For the three | |
| months ended | months ended | |
| June 30, 2012 | June 30, 2011 | |
| Total Investment Income | $110,354 | $ -- |
| Net Investment Loss | ($2,080,119) | ($565,305) |
| Net Realized Loss on Investments | ($1,380,263) | $ -- |
| Net Change in Unrealized Depreciation on Investments | ($2,014,512) | ($59,634) |
| Net Decrease in Net Assets Resulting From Operations | ($5,474,894) | ($624,939) |
| Net Decrease in Net Assets Resulting From Operations Per Common Share | ($0.34) | ($0.27) |
| Weighted Average Common Shares Outstanding | 16,287,133 | 2,345,595 |
Results of Operations
Investment income was $110,354, or $0.01 per share, for the three months ended June 30, 2012, compared to $0, or $0.00 per share, for the three months ended June 30, 2011. Net investment loss was $2,080,119, or $0.13 per share, in the second quarter of 2012, compared to $565,305, or $0.24 per share, for the prior year period. Net realized loss on investments was $1,380,263, or $0.08 per share, in the second quarter of 2012, compared to $0, or $0.00 per share, for the same period in 2011. Net change in unrealized depreciation was $2,014,512, or $0.12 per share, for the three months ended June 30, 2012, compared to $59,634, or $0.03 per share, for the prior year period. Net decrease in net assets resulting from operations was $5,474,894, or $0.34 per share, and $624,939, or $0.27 per share, for the second quarter of 2012 and 2011, respectively.
Conference Call Information
The GSV Capital second quarter 2012 teleconference and webcast is scheduled to begin at 2:00 p.m., Pacific Time, on Wednesday, August 8, 2012, during which the company may provide forward-looking information. To participate on the live call, analysts and investors should dial 877-941-4774 at least ten minutes prior to the call. GSV Capital will also offer a live and archived webcast of the conference call, accessible from the "Investor Relations" section of the company's Web site at http://investors.gsvcap.com/
About GSV Capital Corp.
GSV Capital Corp. (Nasdaq: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 fund 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.
The GSV Capital Corp. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=12750
Forwarding-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 future performance, condition or results 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 Securities and Exchange Commission. GSV Capital Corp. undertakes no duty to update any forward-looking statements made herein.
| CONSOLIDATED STATEMENT OF ASSETS AND LIABILITIES | |
| (Unaudited) | |
| June 30, 2012 | |
| ASSETS | |
| Investments at fair value: | |
| Investments in affiliated securities (cost of $19,828,912) | $ 19,962,743 |
| Investments in non-control/non-affiliated securities (cost of $154,352,615) | 151,635,667 |
| Investments in money market funds (cost of $16,000,000) | 16,000,000 |
| Total Investments (cost of $190,181,527) | 187,598,410 |
| Cash | 79,617,068 |
| Due from: | |
| GSV Asset Management | 5,901 |
| Portfolio company | 246,065 |
| Accrued interest | 9,399 |
| Prepaid expenses | 191,639 |
| Dividend receivable | 2,314 |
| Other assets | 83,606 |
| Total Assets | 267,754,402 |
| LIABILITIES | |
| Due to: | |
| GSV Asset Management | 17,159 |
| Other affiliates | 12,717 |
| Accounts payable | 705,028 |
| Accrued expenses | 159,444 |
| Total Liabilities | 894,348 |
| Commitments and contingencies | |
| Net Assets | $ 266,860,054 |
| NET ASSETS | |
| Common stock, par value $0.01 per share | |
| (100,000,000 authorized; 19,320,100 issued and outstanding) | $ 193,201 |
| Paid-in capital in excess of par | 273,804,610 |
| Accumulated net investment loss | (3,174,121) |
| Accumulated net realized loss on investments | (1,380,519) |
| Accumulated net unrealized depreciation on investments | (2,583,117) |
| Net Assets | $ 266,860,054 |
| Net Asset Value Per Share | $ 13.81 |
| CONSOLIDATED STATEMENTS OF OPERATIONS | ||||
| (Unaudited) | ||||
| Three Months Ended | Six Months Ended | |||
| June 30, | June 30, | |||
| 2012 | 2011 | 2012 | 2011(1) | |
| INVESTMENT INCOME | ||||
| Interest income from affiliated securities | $ 7,808 | $ -- | $ 7,808 | $ -- |
| Interest income | 95,075 | -- | 207,176 | -- |
| Dividend income | 7,471 | -- | 13,175 | -- |
| Total Investment Income | 110,354 | -- | 228,159 | -- |
| OPERATING EXPENSES | ||||
| Investment management fees | 1,126,091 | 150,943 | 1,748,017 | 150,943 |
| Costs incurred under administration agreement | 602,201 | 113,035 | 947,795 | 113,035 |
| Directors' fees | 65,000 | 42,500 | 107,500 | 42,500 |
| Professional fees | 222,561 | 102,582 | 354,406 | 118,632 |
| Insurance expense | 55,485 | 48,109 | 102,154 | 48,109 |
| Investor relations expense | 95,038 | 750 | 109,288 | 750 |
| Organization expenses | -- | 97,855 | -- | 192,495 |
| Other expenses | 24,097 | 9,531 | 33,120 | 9,649 |
| Total Operating Expenses | 2,190,473 | 565,305 | 3,402,280 | 676,113 |
| Net Investment Loss | (2,080,119) | (565,305) | (3,174,121) | (676,113) |
| Net Realized Loss on Investments | (1,380,263) | -- | (1,380,519) | -- |
| Net Change in Unrealized Depreciation on Investments | (2,014,512) | (59,634) | (1,003,317) | (59,634) |
| Net Decrease in Net Assets Resulting from Operations | $ (5,474,894) | $ (624,939) | $ (5,557,957) | $ (735,747) |
| Net Decrease in Net Assets Resulting from Operations per Common Share | $ (0.34) | $ (0.27) | (0.43) | $ (0.42) |
| Weighted Average Common Shares Outstanding | 16,287,133 | 2,345,595 | 12,837,133 | 1,735,385 |
| (1) For the period from January 6, 2011 (date of inception) to June 30, 2011. | ||||
| (2) Weighted average common shares for the period from January 6, 2011 (date of inception) to June 30, 2011 was calculated from the issuance of 100 shares on February 28, 2011. | ||||
| FINANCIAL HIGHLIGHTS | ||||
| (Unaudited) | ||||
| For the period from | For the period from | |||
| January 6, 2011 | January 6, 2011 | |||
| Three months ended | Six months ended | (date of inception) to | (date of inceptions) | |
| June 30, 2012 | June 30, 2012 | June 30, 2011 | to December 31, 2011 | |
| Per Share Data: | ||||
| Net asset value at beginning of period | $ 13.47 | $ 12.95 | $ -- | $ -- |
| Issuance of common shares | 0.99 (3) | 1.91 (3) | 15.00 (2) | 14.67 (4) |
| Underwriters' discount | (0.35) (2) | (0.72) (2) | (1.05) (2) | (0.86) (2) |
| Offering costs | (0.02) (2) | (0.04) (2) | (0.16) (2) | (0.19) (2) |
| Net investment loss | (0.13) (1) | (0.16) (2) | (0.20) (2) | (0.37) (2) |
| Realized loss | (0.07) (2) | (0.07) (2) | -- | -- |
| Change in unrealized depreciation | (0.08) (5) | (0.06) (5) | (0.02) (2) | (0.30) (2) |
| Net asset value at end of period | $ 13.81 | $ 13.81 | $ 13.57 | $ 12.95 |
| (1) Based on weighted average number of shares outstanding for the period. | ||||
| (2) Based on shares outstanding at end of period. | ||||
| (3) Issuance of common shares for the three months ended June 30, 2012 is based on the change in net asset value from the secondary offering on February 10, 2012. Issuance of common shares for the six months ended June 30, 2012 is based on the change in net asset value from the secondary offerings on February 10, 2012 and May 11, 2012. | ||||
| (4) 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. | ||||
| (5) 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. | ||||
| CONSOLIDATED SCHEDULE OF INVESTMENTS | |||||
| June 30, 2012 | |||||
| (Unaudited) | |||||
| Headquarters / | Shares / Par | % of | |||
| Portfolio Investments* | Industry | Amount | Cost | Fair Value | Net Assets |
| AltEgo, LLC | Santa Monica, CA | ||||
| Preferred shares, Series B-2 | Social Media Online Gaming | 1,000,000 | $ 1,017,540 | $ 1,000,000 | 0.37% |
| AlwaysOn, LLC (1) | Woodside, CA | ||||
| Structured note, 10%, due 1/9/2013 and warrant | Social Media | $ 250,000 | 250,000 | 250,000 | 0.09% |
| Avenues World Holdings LLC | New York, NY | ||||
| Preferred shares, Class A-1 | Globally-focused Private School | 5,000,000 | 10,026,573 | 10,000,000 | 3.75% |
| Bloom Energy Corporation | Sunnyvale, CA | ||||
| Common shares | Fuel Cell Energy | 201,589 | 3,854,817 | 3,770,135 | 1.41% |
| Chegg, Inc. | Santa Clara, CA | ||||
| Common shares | Textbook Rental | 1,274,193 | 10,012,543 | 9,999,996 | 3.75% |
| Preferred shares, Series F | 500,000 | 4,008,654 | 4,000,000 | 1.50% | |
| Total | 14,021,197 | 13,999,996 | 5.25% | ||
| Control4 Corporation | Salt Lake City, UT | ||||
| Common shares | Home Automation | 2,950,667 | 5,046,583 | 4,997,000 | 1.87% |
| CUX, Inc. (2) | Mechanicsburg, PA | ||||
| Preferred shares, Series C | Corporate Education | 246,305 | 2,005,942 | 2,000,000 | 0.75% |
| Dailybreak, Inc. (2) | Boston, MA | ||||
| Preferred shares, Series A-1 | Social Advertising | 1,545,181 | 2,000,000 | 2,000,000 | 0.75% |
| DreamBox Learning, Inc. | Bellevue, WA | ||||
| Preferred shares, Series A | Education Technology | 3,579,610 | 758,017 | 750,000 | 0.28% |
| Dropbox, Inc. | San Francisco, CA | ||||
| Common share | Online | 600,000 | 6,868,679 | 6,858,500 | 2.57% |
| Preferred shares, Series A-1 | Storage | 552,486 | 5,015,333 | 6,314,915 | 2.37% |
| Total | 11,884,012 | 13,173,415 | 4.94% | ||
| Facebook, Inc. (3) | Palo Alto, CA | ||||
| Common shares, Class B | Social Networking | 350,000 | 10,472,294 | 9,361,100 | 3.51% |
| Fullbridge, Inc. (2) | Cambridge, MA | ||||
| Preferred shares, Series C | Business Education | 1,196,809 | 2,250,001 | 2,250,000 | 0.84% |
| Gilt Groupe, Inc. | New York, NY | ||||
| Common shares | e-Commerce Flash Sales | 203,100 | $ 5,589,279 | $ 5,499,250 | 2.06% |
| Global Education Learning (Holdings) Ltd. (2) | San Bruno, CA | ||||
| Preferred shares, Series A | Education Technology | 1,472,175 | 2,999,998 | 2,999,998 | 1.12% |
| Grockit, Inc. (2) | San Francisco, CA | ||||
| Preferred shares, Series D | Online Test Preparation | 2,728,252 | 2,005,945 | 2,000,000 | 0.75% |
| Groupon, Inc. (4) | Chicago, IL | ||||
| Common shares | Online Deals | 80,000 | 2,128,774 | 850,400 | 0.32% |
| Kno, Inc. | Santa Clara, CA | ||||
| Preferred shares, Series C | Digital | 440,313 | 2,262,006 | 2,250,000 | 0.84% |
| Preferred shares, Series C-1 | Textbooks | 1 | 7,509,663 | 7,500,000 | 2.81% |
| Common shares | 50,000 | 214,681 | 205,000 | 0.08% | |
| Total | 9,986,350 | 9,955,000 | 3.73% | ||
| Maven Research, Inc. | San Francisco, CA | ||||
| Preferred shares, Series B | Global Knowledge Marketplace | 49,505 | 217,206 | 200,000 | 0.07% |
| NestGSV, Inc. (2) | Redwood City, CA | ||||
| Preferred shares, Series A | Entrepreneurial Education | 1,000,000 | 1,020,145 | 1,000,000 | 0.37% |
| Palantir Technologies, Inc. | Palo Alto, CA | ||||
| Common shares, Class B | Data Security | 1,559,419 | 4,239,986 | 4,210,431 | 1.58% |
| Serious Energy, Inc. | Sunnyvale, CA | ||||
| Common shares | Green Materials | 178,095 | 739,130 | 237,460 | 0.09% |
| SharesPost, Inc. | San Bruno, CA | ||||
| Preferred shares, Series B | Online | 1,771,653 | 2,257,984 | 2,256,752 | 0.85% |
| Common warrants, $0.13 strike price, expire 6/15/2018 | Marketplace | ||||
| (Finance) | 770,934 | 23,128 | 8,480 | 0.00% | |
| Total | 2,281,112 | 2,265,232 | 0.85% | ||
| Silver Spring Networks, Inc. | Redwood City, CA | ||||
| Common shares | Smart Grid | 510,143 | 5,145,271 | 4,901,430 | 1.84% |
| Solexel, Inc. | Milpitas, CA | ||||
| Preferred shares, Series C | Solar Technology | 4,576,659 | $ 10,016,559 | $ 10,000,000 | 3.75% |
| StormWind, LLC (2) | Scottsdale, AZ | ||||
| Preferred shares, Series B | Electronic | 3,279,629 | 2,019,687 | 2,000,000 | 0.75% |
| The Echo System Corp. (1)(2) | New York, NY | ||||
| Preferred shares, Series A | Social Analytics | 512,365 | 1,436,404 | 1,639,568 | 0.61% |
| Preferred warrants, $0.20 strike price, expire 11/14/2016 | 68,359 | 75,988 | 73,176 | 0.03% | |
| Total | 1,512,392 | 1,712,744 | 0.64% | ||
| The rSmart Group, Inc. | Scottsdale, AZ | ||||
| Preferred shares, Series B | Higher Education | 1,201,923 | 1,266,940 | 1,250,000 | 0.47% |
| Learning Platform | |||||
| Top Hat, Inc. (2) | Shakopee, MN | ||||
| Preferred shares, Series A | Jewelry Retailing Technology | 1,777,778 | 4,014,802 | 4,000,001 | 1.50% |
| TrueCar, Inc. | Santa Monica, CA | ||||
| Common shares | Online Marketplace (Cars) | 377,358 | 2,014,863 | 1,999,997 | 0.75% |
| Twitter, Inc. | San Francisco, CA | ||||
| Common shares | Social Communication | 1,835,600 | 31,751,748 | 31,513,493 | 11.81% |
| Violin Memory, Inc. | Mountain View, CA | ||||
| Preferred shares, Series B | Flash Memory | 800,000 | 4,800,000 | 4,800,000 | 1.80% |
| Preferred shares, Series D | 1,666,666 | 10,018,045 | 9,999,996 | 3.75% | |
| Total | 14,818,045 | 14,799,996 | 5.55% | ||
| ZocDoc Inc. | New York, NY | ||||
| Preferred shares, Series A | Online Medical Scheduling | 200,000 | 3,563,178 | 3,500,000 | 1.31% |
| ZoomSystems | San Francisco, CA | ||||
| Preferred shares, Series A | Smart e-tail (Retail) | 1,250,000 | 260,476 | 250,000 | 0.09% |
| Zynga, Inc. | San Francisco, CA | ||||
| Common shares | Social Gaming | 533,333 | 3,002,665 | 2,901,332 | 1.09% |
| Total Portfolio Investments | $ 174,181,527 | $ 171,598,410 | 64.30% | ||
| * All portfolio investments are non-control/non-affiliated and non-income producing, unless identified. Equity investments are subject to lock-up restrictions upon their initial public offering. | |||||
| (1) Investment is income producing. | |||||
| (2) Denotes an Affiliate Investment. "Affiliate Investments" are investments in those companies that are "Affiliated Companies" of GSV Capital Corp., as defined in the Investment Company Act of 1940. A company is deemed to be an "Affiliate" of GSV Capital Corp. if GSV Capital Corp. owns 5% or more but less than 25% of the voting securities of such company. | |||||
| (3) On May 17, 2012, Facebook, Inc. priced its initial public offering, selling 421,233,615 shares at a price of $38.00 per share. GSV Capital Corp.'s shares in Facebook, Inc. are subject to a lock-up agreement that expires on November 14, 2012. At June 30, 2012, GSV Capital Corp. valued Facebook based on its June 29, 2012 closing price, less a discount for the lock-up restriction. | |||||
| (4) On November 8, 2011, Groupon, Inc. priced its initial public offering, selling 35,000,000 shares at a price of $20.00 per share. GSV Capital Corp.'s shares in Groupon, Inc. are subject to a lock-up agreement that expired on May 1, 2012. At June 30, 2012, GSV Capital Corp. valued Groupon, Inc. based on its June 29, 2012 closing price. | |||||
CONTACT: Media:
Kim Hughes
(415) 516-6187
kim@blueshirtgroup.com
Investors:
Alex Wellins
(415) 217-5861
alex@blueshirtgroup.com
