Gladstone Investment Corp (GAIN) 2025 Q4 法說會逐字稿

Greetings and welcome to Gladstone Investment Corporation fourth quarter and year-end earnings conference call. (Conference Instructions).

問候並歡迎參加格拉斯頓投資公司第四季和年終收益電話會議。（會議指示）。

It is now my pleasure to introduce your host David Gladstone, Chief Executive Officer.

現在我很高興向大家介紹主持人兼執行長 David Gladstone。

Thank you. Please go ahead.

謝謝。請繼續。

Well, thank you, Donna, and good morning to everybody out there who's listening to this. This is David Gladstone, Chairman of Gladstone Investment. This is the earnings conference call for the fourth quarter and fiscal year on March 31, 2025, for shareholders and analysts of Gladstone Investment listed on NASDAQ under the trading symbol GAIN or capital gains for us. For our common stock and then we have some preferred stock, GAINN, GAINZ, GAINL, GAINI, and these are the four registered notes that we have.

好吧，謝謝你，唐娜，各位聽眾早安。我是格拉斯頓投資公司董事長大衛‧格拉德斯通。這是 2025 年 3 月 31 日為納斯達克上市、交易代碼為 GAIN 或資本收益的 Gladstone Investment 股東和分析師舉行的第四季度和財政年度收益電話會議。對於我們的普通股，我們還有一些優先股，GAINN、GAINZ、GAINL、GAINI，這是我們擁有的四種註冊票據。

And thank you all for calling in. We're always happy to provide updates to our shareholders and analysts and provide our views on the current business environment. Two goals for this call is to help you understand what happened and also give you some current views on the future will be like. Now we hear from our general counsel and Secretary Michael Lakowski.

謝謝大家的來電。我們始終樂意向股東和分析師提供最新信息，並提供我們對當前商業環境的看法。這次通話有兩個目標：一是幫助您了解發生了什麼，二是為您提供一些關於未來前景的當前看法。現在我們來聽聽我們的總法律顧問兼秘書 Michael Lakowski 的發言。

Yes, that's right. Speaking of the future, today's call might include forward-looking statements on the Securities Act of 1933 and the Securities Exchange Act of 1934, including those regarding our future performance. These forward-looking statements involve certain risks and uncertainties, although they're based on our current, which we believe to be reasonable.

是的，沒錯。說到未來，今天的電話會議可能包括對 1933 年證券法和 1934 年證券交易法的前瞻性陳述，包括有關我們未來業績的陳述。這些前瞻性陳述涉及一定的風險和不確定性，儘管它們是基於我們認為合理的當前情況。

The many factors may cause our actual results to be materially different from any future results expressed or implied by these forward-looking statements, including all the risk factors that we have in our 10, 10K and other documents we file with the SEC. You can find them all on the investors page of our website. That's Gladstoneinvestment.com, or you can even find them on the SEC's website, which is sec.gov.

許多因素可能導致我們的實際結果與這些前瞻性陳述所表達或暗示的任何未來結果有重大差異，包括我們向美國證券交易委員會提交的 10、10K 和其他文件中的所有風險因素。您可以在我們網站的投資者頁面上找到所有這些資訊。那是 Gladstoneinvestment.com，或者你甚至可以在美國證券交易委員會 (SEC) 的網站上找到它們，即 sec.gov。

That we undertake no obligation to publicly update or revise any of these forward-looking statements, whether as a result of new information, future events, or otherwise except as required by law. Please also note that any past performance is never guarantee of future results.

我們不承擔公開更新或修改任何前瞻性聲明的義務，無論是否出現新資訊、未來事件或其他情況，除非法律要求。另請注意，任何過去的表現都不能保證未來的結果。

We ask that you visit our website once again it's Gladstone Investment.com. Sign up for our email notification service while you're there. You can also find us on Twitter. Keyword there is Gladstone Comps, and on Facebook, the keyword is the Gladstone Companies. And today's call is an overview of our annual results through March 31, 2025.

我們懇請您再次造訪我們的網站：Gladstone Investment.com。在那裡時請註冊我們的電子郵件通知服務。您也可以在 Twitter 上找到我們。那裡的關鍵字是 Gladstone Comps，而在 Facebook 上，關鍵字是 Gladstone Companies。今天的電話會議概述了我們截至 2025 年 3 月 31 日的年度表現。

So please review our press release in Form 10k for more detailed information. With that, I'll turn it over to Dave Dullum. He's the President of Gladstone Investment. Dave

因此，請查看表格 10k 中的新聞稿以獲取更多詳細資訊。說完這些，我會把話題交給 Dave Dullum。他是格拉斯頓投資公司的總裁。戴夫

Mike, thanks very much. Good morning to everyone.

麥克，非常感謝。大家早安。

We are again pleased to report that GAIN did produce very positive results for the fourth quarter, and the fiscal year ended March 31, 2025.

我們再次高興地報告，GAIN 在第四季度以及截至 2025 年 3 月 31 日的財政年度確實取得了非常積極的業績。

For the fiscal year, we generated adjusted NII of $0.97 per share. Which is earning our $0.96 per share annual dividend. We also increased the total fare value of our portfolio at 33,125 to $979 million which is up from roughly $921 million at the prior year end, though slightly lower than the $1.1 billion at the end that we reported at the end of last quarter.

在本財政年度，我們產生的調整後 NII 為每股 0.97 美元。這就為我們帶來了每股 0.96 美元的年度股息。我們也將投資組合的總票價價值從 33,125 億美元增加到 9.79 億美元，高於上年末的約 9.21 億美元，但略低於上季末報告的 11 億美元。

Now this slight decrease quarter over quarter in assets actually really resulted from a couple of positive things. One, we had an increase in assets from new buyouts that we made. But then we reduced that by the successful exit of one of our existing portfolio companies which actually reduced while reducing the assets also generated significant realized capital gains of $19.8 million.

現在，資產環比略有下降實際上是由一些積極因素造成的。首先，我們透過新的收購增加了資產。但後來，我們成功退出了我們現有的投資組合公司，這實際上減少了​​資產，同時也產生了 1,980 萬美元的可觀的資本收益。

We also of course, had some movement in the net valuation. Of our portfolio certainly year to year and quarter over quarter, a number of which were a function of some increases in the multiple and slight decreases in EBITDA, but all of those movements were certainly all positive in some regard. During the year we did add experienced talent to our investing team which is in support of our continuing portfolio growth and being able to help manage our current portfolio of 25 operating companies.

當然，我們的淨估值也有一些變動。我們的投資組合肯定是逐年和逐季變化的，其中一些是倍數增加和 EBITDA 略有下降的結果，但所有這些變動在某些方面肯定都是積極的。在這一年中，我們確實為我們的投資團隊增添了經驗豐富的人才，這支持了我們投資組合的持續成長，並能夠幫助管理我們目前的 25 家營運公司的投資組合。

For the year we invested a total of $221 million which is up from $184 million in the prior year. This included investments in four new portfolio companies, some add-on investments, and we also completed a dividend recap, which was a positive thing, of one of our portfolio companies, Educators Resource, which generated both dividend income and provided for an additional interest bearing investment in that company.

我們今年的投資總額為 2.21 億美元，比前一年的 1.84 億美元增加。其中包括對四家新的投資組合公司進行投資，以及一些附加投資，我們還完成了對我們投資組合公司之一 Educators Resource 的股息回顧，這是一件好事，它既產生了股息收入，又為該公司提供了額外的計息投資。

So throughout the year we maintained our monthly distribution to shareholders of $0.08 per share, which is $0.96 per share I mentioned. We paid a supplemental distribution of $0.70 per share and then another $1.66 which aggregated to $1.66 per share for the year. Further in April, subsequent to the year end, we declared an additional $0.54 per share supplemental distribution.

因此，我們全年維持每月向股東分配每股 0.08 美元的水平，也就是我提到的每股 0.96 美元。我們支付了每股 0.70 美元的補充分配，然後又支付了 1.66 美元，全年總計每股 1.66 美元。此外，在年末之後的四月份，我們宣布每股額外分配 0.54 美元。

Now these supplemental distributions I've said before and those that we've made previously are a direct result of our buyout strategy and the goal of rewarding our shareholders with meaningful supplemental distributions from the realized capital gains which are generated on the equity portion of our exits while we still maintain and try to grow our monthly distributions from operating income.

我之前提到的這些補充分配以及我們之前所做的補充分配都是我們收購策略的直接結果，其目標是從我們退出時股權部分產生的已實現資本收益中，透過有意義的補充分配來回報我們的股東，同時我們仍然保持並嘗試增加每月從營業收入中獲得的分配。

Just to recap, since inception in 2005 and through 33,125, we've invested in 62 bio portfolio companies for an aggregate of approximately $2 billion exited 33 of these companies. This resulted in total investments which are currently valued, as I mentioned, at $979 million while generating approximately $353 million in net realize gains and another $45 million in other income on exit.

回顧一下，自 2005 年成立以來，透過 33,125 家公司，我們已投資了 62 家生物投資組合公司，總計約 20 億美元，退出了其中 33 家公司。正如我所提到的，這導致總投資目前價值為 9.79 億美元，同時產生約 3.53 億美元的淨實現收益和另外 4,500 萬美元的退出其他收入。

Turning to the outlook, which is obviously important these days, from our perspective, there continues to be good liquidity in the M&A market. It is a very competitive environment though we have now added variables of course regarding tariffs which are impacting analysis which we have to do when we evaluate a new opportunity. We are competing effectively for new acquisitions that we believe do fit our buyout model while we're being careful in assessing that risk and forecasting the tariff impact on costs, customer demand, and supply chain dynamics.

談到目前顯然重要的前景，從我們的角度來看，併購市場仍然保持良好的流動性。這是一個競爭非常激烈的環境，當然我們現在增加了與關稅有關的變量，這些變量會影響我們在評估新機會時必須進行的分析。我們正在有效地競爭我們認為符合我們的收購模式的新收購，同時我們正在謹慎評估風險並預測關稅對成本、客戶需求和供應鏈動態的影響。

Obviously, this is not easy. But you know we have to take a hard look at these actual aspects of evaluating a new deal. Now not every business is affected in the same manner, and that of course creates both opportunity and adds to the uncertainty. With that said though, we are very far along and expect to close two new acquisitions shortly. If not by the end of this quarter. We also are in various stages of review and diligence on a number of new opportunities, and I am cautiously optimistic for our new bio activity during the year.

顯然，這並不容易。但你知道，我們必須認真審視評估新協議的實際方面。現在，並非所有企業都受到同樣的影響，這當然既創造了機遇，也增加了不確定性。話雖如此，我們已經取得了巨大進展，並預計很快就會完成兩項新的收購。如果到本季末還沒有實現的話。我們也對許多新機會進行了不同階段的審查和盡職調查，我對我們今年的新生物活動持謹慎樂觀的態度。

Looking at our existing portfolio, we do have a few companies that are consumer focused, and while they've had very good results to date, we are cautious due to the tariff costs on the ultimate consumer prices that may have to be passed through and therefore the demand and the margin impact on those companies. We are working with all of our companies and evaluating supply chain alternatives and various production strategies so that we can navigate the current environment.

縱觀我們現有的投資組合，我們確實有幾家以消費者為中心的公司，雖然迄今為止它們的業績非常好，但我們仍持謹慎態度，因為關稅成本可能必須轉嫁到最終消費者價格上，從而對這些公司的需求和利潤產生影響。我們正在與所有公司合作，評估供應鏈替代方案和各種生產策略，以便我們能夠應對當前的環境。

The recently announced pause a few days ago on tariffs does bring a bit of relief, although we have to see what the permanent solution will be. So again, we will continue to be cautious, but we believe we have a fairly good handle as it impacts our existing portfolio companies.

幾天前宣布的暫停關稅確實帶來了一些緩解，儘管我們必須看看永久的解決方案是什麼。因此，我們將繼續保持謹慎，但我們相信，我們可以很好地應對它對我們現有投資組合公司的影響。

So in summing up the quarter and the fiscal year and looking forward, our current portfolio we feel is in good shape. We have a strong and liquid balance sheet, a good level of bio activity. And then with the prospect of continued good earnings and distributions over the next year, albeit having to navigate the challenges we face due to the uncertain economic landscape. So I'll turn it over now to our CFO Taylor Ritchie to go into more detail on the actual results, Taylor.

因此，總結本季和本財年並展望未來，我們認為我們目前的投資組合狀況良好。我們擁有強大且流動性的資產負債表和良好的生物活性水準。儘管我們必須應對不確定的經濟狀況所帶來的挑戰，但明年我們仍有望繼續獲得良好的利潤和分配。所以現在我將把它交給我們的財務長泰勒里奇 (Taylor Ritchie)，讓他更詳細地介紹實際結果，泰勒。

Thank you, Dave. Good morning.

謝謝你，戴夫。早安.

Looking at our operating performance, we had a strong finish to the fiscal year, generating total investment income of $93.7 million up from $87.3 million in the prior year. This increase was primarily the result of a $4.5 million increase in dividend and successful income following the successful exit of two portfolios.

從我們的經營業績來看，本財年我們取得了強勁的業績，總投資收入從上一年的 8,730 萬美元增至 9,370 萬美元。這一增長主要源於兩個投資組合成功退出後股息和成功收入增加了 450 萬美元。

Well as a $1.8 million increase in interest, the increase in interest income was primarily due to the increased weighted average principal balance of our interest bearing portfolio, partially offset by a decrease in the weighted average yield. Additionally, we ended the year with adjusted net investment income of $35.5 million or $0.97 per share, up slightly from $34.5 million to $1 per share in the prior fiscal year, fully covering our annual regular monthly distribution of $0.96 per share.

除了利息增加 180 萬美元外，利息收入的增加主要是由於我們有利息的投資組合的加權平均本金餘額增加，但加權平均收益率的下降部分抵消了這一增加。此外，我們本財年的調整後淨投資收入為 3,550 萬美元，即每股 0.97 美元，略高於上一財年的 3,450 萬美元至每股 1 美元，完全涵蓋了我們每股 0.96 美元的年度定期月度分配。

Focusing on the fourth quarter results, we generate a total investment income of $27.5 million, up from $21.4 million in the prior quarter, primarily due to an increase in dividend and success fee income as a result of the exit of our investment in Nocturne and our recapitalization of educators resources, as well as an increase in interest. Net expenses for the quarter were $20.3 million up slightly from $20.2 million in the prior quarter. This increase was primarily due to an increase in interest expense and a decrease in credits to fees from Advisor, which were driven by the significant new investment activity in the prior quarter.

專注於第四季度的 2,140 萬美元，這主要是由於我們退出對 Nocturne 的投資以及對教育工作者資源進行資本重組導致的股息和成功費收入增加，以及利息增加。本季淨支出為 2,030 萬美元，較上一季的 2,020 萬美元略有成長。這一增長主要是由於利息支出增加以及顧問費用貸項減少，而這又是由於上一季的大量新投資活動所致。

Additionally, base management fee expense, income incentive fees, and bad debt expense increased compared to the prior quarter.

此外，基本管理費支出、收入激勵費支出和壞帳支出與上一季相比有所增加。

These expense increases were partially offset by a decrease in capital gains-based incentive fees resulting from the net impact of realized and unrealized gains and losses during the quarter and accrued as required under US GAAP. This resulted in net investment income for the quarter of $7.2 million compared to $1.2 million in the prior quarter. Adjusted net investment income, which is net investment income or loss exclusive of any accrued capital gains based incentive fees for the quarter was $9.4 million or $0.26 per share, up from $8.6 million or $0.23 per share in the price.

這些費用的增加被基於資本收益的激勵費用的減少部分抵消，該減少是由於本季度已實現和未實現損益的淨影響導致的，並根據美國公認會計準則的要求計提。這使得本季的淨投資收入達到 720 萬美元，而上一季為 120 萬美元。調整後的淨投資收益（即扣除任何應計資本收益的激勵費用後的淨投資收益或損失）為 940 萬美元或每股 0.26 美元，高於價格中的 860 萬美元或每股 0.23 美元。

We continue to believe that adjusted net investment income is a useful and representative indicator of our ongoing operations. Consistent with the product as of March 31, 2025, we continue to have four portfolio companies on non-accrual status. Overall, there are no portfolio-wide credit concerns, and we continue working closely with these companies and their management teams to get them back on accrual status or exit the investments when possible.

我們仍然相信，調整後的淨投資收益是我們持續經營的一個有用且具代表性的指標。與截至 2025 年 3 月 31 日的產品一致，我們繼續擁有四家處於非應計狀態的投資組合公司。總體而言，不存在整個投資組合的信用問題，我們將繼續與這些公司及其管理團隊密切合作，使它們恢復應計狀態或在可能時退出投資。

In particular, we continue to see improvements to these companies as they're back to generating profit. Excluding the $24.3 million dollar reversal of unrealized appreciation upon the exit of Nocturne, valuations in the aggregate were up $14.1 million across the portfolio. This unrealized appreciation was driven by higher valuation multiples across the portfolio and increased performance at a number of our portfolio companies, which was partially offset by decreased performance at a few of our other portfolio companies.

特別是，我們繼續看到這些公司恢復獲利，業績不斷改善。不包括 Nocturne 退出時 2,430 萬美元的未實現增值逆轉，整個投資組合的估值總計上漲了 1,410 萬美元。這種未實現的升值是由整個投資組合的估值倍數上升以及我們投資組合中一些公司的業績增長所推動的，但這被我們投資組合中其他幾家公司的業績下滑所部分抵消。

Our NAV increased to $13.55 per share compared to $13.30 per share at the end of the prior quarter. The increase was primarily the result of a 57 per share of net realized gains and $0.20 per share of adjustment. These increases were partially offset by $0.28 per share of net unrealized depreciation and $0.24 per share of distributions paid to common shareholders during the quarter.

我們的資產淨值從上一季末的每股 13.30 美元增至每股 13.55 美元。成長的主要原因是每股淨實現收益增加 57 美元，每股調整 0.20 美元。這些成長部分被本季每股 0.28 美元的淨未實現折舊和每股 0.24 美元的支付給普通股股東的分配所抵銷。

We believe that maintaining liquidity and flexibility to support and grow our portfolio is key to our continued success. During the year, we issued $126.5 million of publicly traded notes and completed the upsize of our credit facility to a total commitment of $270 million. As of yesterday's release, we had $214 million in availability on our line of credit. Additionally, we raised approximately $2 million in net proceeds under our common stock ATM while prices were created to NAV.

我們相信，保持流動性和靈活性以支持和擴大我們的投資組合是我們持續成功的關鍵。本年度，我們發行了價值 1.265 億美元的公開交易票據，並完成了信貸額度的擴大，總承諾額達到 2.7 億美元。截至昨天發布，我們的信用額度可用金額為 2.14 億美元。此外，我們在普通股 ATM 下籌集了約 200 萬美元的淨收益，同時價格是根據資產淨值製定的。

We believe that the recently issued notes, the additional available capital for our line of credit, and the ability to raise equity capital through our common stock ATM will allow us to drive portfolio growth as new buyout opportunities emerge and to weather any potential economic slowdowns as a result of tariffs or other economic uncertainties. Overall, our leverage remains in a strong position with an asset coverage ratio as of March 31, 2025 of 204%, providing cushion to the required 100% coverage ratio.

我們相信，最近發行的票據、我們信用額度的額外可用資本以及透過我們的普通股 ATM 籌集股本的能力將使我們能夠在新的收購機會出現時推動投資組合增長，並抵禦由於關稅或其他經濟不確定性導致的任何潛在經濟放緩。總體而言，我們的槓桿率仍然保持強勁，截至 2025 年 3 月 31 日的資產覆蓋率為 204%，為達到所需的 100% 覆蓋率提供了緩衝。

Consistent with prior quarters, distributable book earnings to shareholders remained strong. We ended the fiscal year with $55.3 million or $1.50 per share and spillover, sufficient to cover our current monthly distribution of $0.08 per share for an annual run rate of $0.96 per share, and the recently declared $0.54 per share supplement distribution to be paid in June.

與前幾季一致，可供股東分配的帳面收益依然強勁。我們以 5,530 萬美元或每股 1.50 美元及溢出收益結束了本財政年度，足以支付我們目前每股 0.08 美元的月分配額（每股 0.96 美元的年運行率）以及最近宣布的每股 0.54 美元的補充分配額（將於 6 月份支付）。

We will look to continue funding future supplement distributions as we recognize realized capital gains on the equity portion of future exits using the monthly distribution run rate of $0.96 per share per year and $0.70 per share on supplement distributions paid in the fiscal year 2025. Our aggregate estimated fiscal year distributions would yield about 11.3% using yesterday's closing price of $14.05.

我們將繼續為未來的補充分配提供資金，因為我們使用每年每股 0.96 美元的月度分配運行率和 2025 財年支付的補充分配每股 0.70 美元來確認未來退出的股權部分的已實現資本收益。根據昨日 14.05 美元的收盤價，我們預計本財年的總分配收益率約為 11.3%。

This covers my part of today's call. I'll now hand it back over to you, David.

這就是我今天通話的部分內容。現在我將把它交還給你，大衛。

All right, Taylor, very nice. You and Dave and Michael, good information to the shareholders that's been delivering and this call and the 10K filed with the SEC yesterday should bring everyone up to date. Reported solid results for the quarter ending March 31, 2025, including new investment activity.

好的，泰勒，非常好。您、戴夫和邁克爾向股東提供了很好的信息，這次電話會議和昨天向美國證券交易委員會提交的 10K 文件應該可以讓每個人都了解最新情況。報告了截至 2025 年 3 月 31 日的季度的穩健業績，包括新的投資活動。

Significantly realized gains generated during the year. We believe the team is in a great position now to continue these successes. I often ask myself, I wonder if anyone knows that there's a $0.54 dividend that record date is June 4, and the payment date is June 13. When you add that to what's being paid is the monthly, you get a great return.

本年度實現了顯著的收益。我們相信，球隊現在處於有利地位，可以繼續取得這些成功。我經常問自己，是否有人知道有一筆 0.54 美元的股息，其記錄日期是 6 月 4 日，支付日期是 6 月 13 日。當您將其添加到每月支付的金額時，您會獲得豐厚的回報。

I believe Gladstone Investment is an attractive investment for anyone seeking continuous monthly distributions. And supplemental distributions from the potential capital gains and the other income that's generated by this company. The team hopes to continue to show you a strong return on your investment just like we did last year. But now let's stop and ask the operator to let some people come in and ask us questions. We'd like all your questions, Donna.

我相信，對於任何尋求持續每月分配的人來說，格拉斯頓投資都是一項有吸引力的投資。以及來自該公司產生的潛在資本收益和其他收入的補充分配。團隊希望像去年一樣繼續為您帶來豐厚的投資回報。但是現在我們停下來並要求接線員讓一些人進來向我們提問。唐娜，我們期待您提出所有問題。

Thank you. (Conference Instructions)

謝謝。（會議指示）

Our first question is coming from Mickey Schleien of Ladenburg. Please go ahead.

我們的第一個問題來自拉登堡的 Mickey Schleien。請繼續。

Yes, good morning, everyone. Dave, I appreciate your comments on the tariff issue, but I was hoping you could give us some sense of on a on a on a quantitative basis, how much of your portfolio does have exposure to tariff risk?

是的，大家早安。戴夫，我很感謝您對關稅問題的評論，但我希望您能從量化的角度告訴我們，您的投資組合中有多少面臨關稅風險？

Yes, I guess Mickey, the correct answer is probably most of them in some regards. I mean, certainly, we have a couple of companies that currently have produced and manufacture a good part of their product in China. Some of that's already being shifted, have been working on that. That's a relatively small portion actually of the portfolio that are directly affected that way. The others that could be impacted were obviously things around steel issues like that.

是的，我猜米奇，正確答案在某些方面可能都是如此。我的意思是，當然，我們有幾家公司目前在中國生產和製造其大部分產品。其中一些已經發生轉變，並且正在努力實現這一目標。實際上，這只是投資組合中直接受到影響的一小部分。其他可能受到影響的顯然是與鋼鐵問題相關的問題。

So, I guess again say in fairness, the majority of them, but frankly with the exception of one or two, none that we are, I would say, overly concerned about those that have that direct impact again have already started working on. And had been working on advancing obviously product, ahead of the tariffs to some degree. So, there's been a buildup of inventory which obviously affects working capital but in a positive way before some of these prices hit and then obviously ultimately how the supply chains, as things start to hopefully unravel here over the next number of months.

所以，我想再次公平地說，其中大多數，但坦白說，除了一兩個，我想說，我們都不太擔心那些再次產生直接影響的問題，我們已經開始著手處理這些問題了。並且一直致力於推進產品升級，在某種程度上領先關稅。因此，庫存積壓顯然會對營運資金產生影響，但在某些價格上漲之前，這會產生積極的影響，最終顯然會對供應鏈產生影響，因為在接下來的幾個月裡，情況有望開始好轉。

So long answer, but again everyone is going to be impacted in some regard, but the ones where they're directly producing a product almost exclusively in China. Those are just a few companies, and we've already been taking some things to help that, and these companies are doing well regardless, actually been doing very well going in the air, so I'm not overly concerned per se about those in that regard, but we have to work through, being sensitive to it and alternatives.

答案很長，但每個人都會受到某種影響，但直接在中國生產產品的人幾乎都會受到影響。這些只是少數幾家公司，我們已經採取了一些措施來幫助它們，而且這些公司無論如何都做得很好，實際上在空中表現非常好，所以我在這方面並不太擔心，但我們必須努力，對它和替代方案保持敏感。

Okay, I think I understand. Thanks for that and Dave, in the consumer sector, how much exposure does the portfolio have to lower income customers which seems to be the group that are the weakest?

好的，我想我明白了。謝謝你，戴夫，在消費領域，投資組合對低收入客戶（似乎是最弱勢的群體）的敞口有多大？

To say that again about what about customers.

再說一次關於顧客的事。

So, in the consumer sector, how much exposure does the does the portfolio have to lower income customers?

那麼，在消費領域，投資組合對低收入客戶的曝險有多大？

Lower income I wouldn't honestly know how to answer that question, you look at the consumer type products we have, things like especially toys, products that go through people like Walmart. I wouldn't necessarily classify those as, higher income or lower income per se. So, I don't think we have any that I would really consider. It's not like they're foodstuffs as an example that would go to a, let's say again I hate to use the expression, a much lower income type category.

低收入我真的不知道該如何回答這個問題，看看我們擁有的消費產品，特別是玩具，透過沃爾瑪這樣的公司銷售的產品。我不會將這些人歸類為高收入或低收入。所以，我認為我們沒有任何值得我真正考慮的事情。這並不是說，以食品為例，它們屬於收入低得多的類別，我再次強調，我不喜歡使用這種表達方式。

We don't have that kind of exposure. I would say these are more, normal type maybe some discretionary to some degree, which would affect obviously, various folks. But again, the movement and tariff costs to our companies that then might or might not get past we're not. Passing everything through from a dollar perspective actually on each item is actually relatively small in a sense, right?

我們沒有這樣的曝光率。我想說，這些更多的是正常類型，可能在某種程度上是有些自由裁量的，這顯然會影響到不同的人。但同樣，對於我們公司來說，運輸和關稅成本可能會或可能不會超過我們。從美元角度來看，每件物品的流通成本實際上在某種意義上相對較小，對嗎？

Even though I know 145% tariff sounds high, and especially if we go back to 40% tariff a product that we might be selling at $10 now it's going to be more like maybe, $12 to $14. So, it's not again like we're talking about items that are going to be just, egregiously overpriced and therefore no one's going to take them on.

儘管我知道 145% 的關稅聽起來很高，尤其是如果我們回到 40% 的關稅，那麼我們現在可能以 10 美元的價格出售的產品的價格可能會達到 12 到 14 美元。所以，我們討論的並不是那些價格過高、無人購買的商品。

I understand, Dave, a couple of quarter quarters ago you were, somewhat optimistic on the outlook for hops, going back on a cruel, around now, obviously that hasn't happened yet. I think there may have been something in the prepared remarks, but there was some background noise that was hard to see, hard to hear. Could you update us on the outlook for Hobbs and maybe your other non-accruals?

我明白，戴夫，幾個季度前你對啤酒花的前景有些樂觀，但現在情況變得殘酷，顯然這種情況還沒有發生。我認為準備好的發言稿中可能有一些內容，但有些背景噪音很難看清楚、聽清楚。您能否向我們介紹霍布斯以及其他非應計項目的前景？

Yes, so I think the comment that was made that Taylor made is that we still have four companies and non-accrual, and actually three of them are all profitable, including Hobbs. Hobbs has continued to improve its profitability. We are still, yes, optimistic we're going to be able to bring them back onto accrual probably again things do move around a bit, but they're actually worried they're performing. I'm hopeful we might bring them back on accrual by the end of this year.

是的，所以我認為泰勒的評論是，我們仍然有四家公司且不提，實際上其中三家都是盈利的，包括霍布斯。霍布斯的獲利能力持續提高。是的，我們仍然樂觀地認為我們將能夠讓他們重新回到應計制，事情可能會再次發生一些變化，但他們實際上擔心他們的表現。我希望我們能在今年年底前讓他們恢復應計。

And then two of the other companies are profitable, moving in the right direction, and some things are going on with those companies that again, if not back on accrual, they're certainly not getting worse, if you will, in that regard. So, Yes, I continue to be as I say, optimistic but overall, it's not impacting and has not impacted necessarily the results of the portfolio overall and the results that we actually have achieved in spite of that.

另外兩家公司則實現了盈利，並朝著正確的方向發展，而且這些公司正在發生一些事情，即使沒有回到應計利潤，從這個角度來看，它們肯定不會變得更糟。所以，是的，正如我所說，我仍然保持樂觀，但總的來說，它不會、也不一定會影響投資組合的整體結果以及我們實際上已經取得的成果。

And Dave, when you talk about profits, are you referring to EBITDA or net income or operating income? What are you referring to? Yes.

戴夫，當您談到利潤時，您指的是 EBITDA、淨收入還是營業收入？你指的是什麼？是的。

We look at generally EBITDA because that's obviously an important thing. So I look at that because that's cash flow, right, basically for these companies. And so when I refer to profitability, yes, that's obviously your gross margins improved overall operating income is improved, but the key thing then is obviously. As we look at it in the way we because that's how we generally value our companies as well, is through the EBITDA and how that impacts actual cash flow.

我們通常會關注 EBITDA，因為這顯然是一件重要的事情。所以我關注這一點，因為對這些公司來說，這基本上就是現金流。因此，當我提到獲利能力時，是的，這顯然是毛利率提高，整體營業收入提高，但關鍵顯然是。我們以這種方式看待這個問題，因為我們通常也是透過 EBITDA 來評估我們的公司，以及它如何影響實際現金流。

Which indeed is also what allows for the payment say, of our interests and what have you as we look at a company like Hobbs as it continues to improve. In fact, we even think looking at some add-on things, to do to do with Hobbs. So fundamentally, yes, it's well managed now, it's doing really well and I think it's going to be good over time.

這實際上也是允許支付我們的利息以及我們看到像霍布斯這樣的公司不斷進步的原因。事實上，我們甚至考慮研究一些附加的東西，與霍布斯有關。所以從根本上來說，是的，現在管理得很好，運行得很好，而且我認為隨著時間的推移它會變得更好。

So, generally, optimistic on the non-accruals, but on the flip side, what, what's going on with Horizon, still marked at a fairly distressed level, doesn't seem to be going in the right direction.

因此，總體而言，對非應計項目持樂觀態度，但另一方面，Horizo​​​​n 的情況仍然處於相當低迷的水平，似乎沒有朝著正確的方向發展。

No, actually, Horizon is very profitable actually and its EBITDA and it has continued to improve. Horizon, you may or may not recall we actually did a dividend recap with Horizon back just about not quite two years ago, a year and a half or so ago. And about two years ago, and which was a positive event, right, and you know when we did that we obviously put leverage more leverage on the business. We effectively had some issues around some of their customer base remember they sell they service people like Hertz, etc.

不，實際上，Horizo​​​​n 的利潤非常高，其 EBITDA 也一直在持續改善。Horizo​​n，您可能記得，也可能不記得，大約兩年前，一年半前，我們實際上對 Horizo​​​​n 進行了一次股息回顧。大約兩年前，這是一個積極的事件，對吧，你知道，當我們這樣做的時候，我們顯然在業務上施加了更大的槓桿。我們確實遇到了一些圍繞他們的部分客戶群的問題，記得他們向赫茲等公司提供服務。

In the car. Space and we did see some drop off in the EBITDA relatively speaking it's again still positive. So as a result of that we've been working on just kind of redoing a bit of the of that leverage scenario that we did when we took the dividend recap so we can give the company. Ability to continue to grow and perform as we like it. So yes, it's got, hit from a mark standpoint because of multiple and also, again it's being done relatively speaking, but again it's performing under the circumstances in pretty decent shape.

在車裡。空間方面，我們確實看到 EBITDA 有所下降，相對而言它仍然是正值。因此，我們一直在努力重新制定我們在股息回顧時所做的槓桿方案，以便為公司提供股息。能夠繼續成長並以我們喜歡的方式表現。所以是的，從目標角度來看，它確實受到了打擊，因為有多種因素，而且，相對而言，它的表現相當不錯。

I understand.

我明白。

Those are all my questions, Dave. Thanks for your time this morning.

這些就是我的所有問題，戴夫。感謝您今天上午抽出時間。

Yes sir, thanks.

是的，先生，謝謝。

Hey. Donna, do we have another question?

嘿。唐娜，我們還有其他問題嗎？

We do. And once again, if you do have a question, it's one on your telephone keypad. The next question is coming from Erik Zwick of Lucid Capital Markets. Please go ahead.

是的。再說一次，如果您確實有問題，可以透過電話鍵盤來提問。下一個問題來自 Lucid Capital Markets 的 Erik Zwick。請繼續。

Thanks. Good morning, everyone. Wanted to start with just a follow up to one of your prepared remarks where you indicated that you're cautiously optimistic for buyout activity in the current year and wondering if you could maybe just kind of address the two components of that one, what you're seeing that gives you some optimism and two, what gives you, a little bit of a cautious stance, whether it's more than just you know the current market volatility and economic uncertainty.

謝謝。大家早安。首先，我想跟進一下您準備好的發言之一，您表示對今年的收購活動持謹慎樂觀的態度，我想知道您是否可以談談其中的兩個組成部分，第一，您所看到的讓您感到樂觀的因素是什麼，第二，是什麼讓您採取一點謹慎的立場，這是否不僅僅是您知道的當前市場波動和經濟不確定性。

Sure. Thanks, Eric. I'm glad you're here. So, the cautiously optimistic is based on the fact that I mentioned in my remarks, we've got a couple that we're close to actually closing. That which is which is a good thing. And secondly, from our standpoint, obviously we always are looking at our, I'll call it backlog of companies that we have in, for us a couple of important categories are what we call initial review where we've actually. Take a look at some material whether it's from an investment banker or other sources. We've gotten interested enough.

當然。謝謝，埃里克。我很高興你在這裡。因此，謹慎樂觀是基於我在發言中提到的事實，我們已經有幾個項目即將完成。凡是存在的，都是好東西。其次，從我們的角度來看，顯然我們一直在關注我們公司積壓的業務，對我們來說，有幾個重要的類別是我們所謂的初步審查，我們實際上已經進行了初步審查。查看一些資料，無論它來自投資銀行家還是其他來源。我們已經夠感興趣了。

We've probably met the management, talked to the management team, and we're doing our evaluations and then, moving forward to the stage that we might then. Put together what we would call a letter of intent which would need to get approved by our investment committee to then if that gets accepted from a valuation standpoint from the seller, move into the actual full board due diligence. So thinking about it that way, we have a couple right now.

我們可能已經與管理層會面，與管理團隊進行了交談，我們正在進行評估，然後進入我們可能採取的階段。整理一份我們稱之為「意向書」的文件，該文件需要得到我們投資委員會的批准，然後，如果從賣方的估值角度獲得批准，則進入實際的全面董事會盡職調查。所以這樣想的話，我們現在就有幾個了。

Are actually in that are pretty close to being in that due diligence phase that we've received approval on moving forward and a number of others that are in that early initial review and where we've actually we've initiated again what we call an indication of interest to the company in terms of what we're willing to pay. So that activity level is an important thing to look at. It's like you might call it a funnel, right? That's we feel really in good shape and the cautious reason or the cautious optimism is the companies that we are looking at that are filling that funnel are at values because of probably some of the economic uncertainty that are values that we believe make some sense.

實際上，我們已經非常接近盡職調查階段，我們已經獲得了繼續推進的批准，還有一些其他的申請處於早期初步審查階段，我們實際上已經再次啟動了所謂的「向公司表明我們願意支付的價格」的活動。因此，活動水平是需要關注的重要事項。你可能稱它為漏斗，對嗎？這就是我們感覺狀況確實良好的原因，謹慎的原因或謹慎的樂觀態度是，我們正在關注的那些正在填補這一渠道的公司的價值可能是因為一些經濟不確定性，我們認為這些價值是有意義的。

So, the fundamentals of the business are still pretty good. Not all of them, as I mentioned, necessarily. Impacted by the tariff. There are a couple we're looking at and we're doing really thorough analysis around what the tariff impact could be and we've factored that into our evaluation. So we're not backing away just because, yes, there's a global issue and we've got to be concerned. We are concerned, but we're working to try to find those where we think it might make some sense.

因此，業務基本面仍然相當良好。正如我所提到的，並非所有都是如此。受到關稅的影響。我們正在研究幾個問題，並對關稅可能產生的影響進行非常徹底的分析，並將其納入我們的評估中。所以我們不會退縮，因為確實存在一個全球性問題，我們必須關注。我們很擔心，但我們正在努力尋找那些我們認為可能有意義的東西。

Keep in mind also our activity level is such that we don't, we generally don't target doing 678 new acquisitions a year, we do really well as we did last year. We had a really good year, a couple $100 million of new investments, and if we can be in that same general category, grow that number a bit, that's kind of where we want to be. So it's kind of in that context that we're able to the companies we're working on, the companies we're evaluating are all in that category of numbers that we believe those companies are good well valued at.

也要記住，我們的活動量是這樣的，我們通常不會設定每年 678 次新收購的目標，但我們去年的表現非常好。今年我們表現得非常好，有幾億美元的新投資，如果我們能夠保持同樣的水平，並且投資額能再增加一點，那就是我們想要的。因此，在這種背景下，我們能夠對正在合作的公司、正在評估的公司進行評估，我們認為這些公司都屬於具有良好估值的數位類別。

We're in a competitive position with them in the various stages, and as the next number of months go by, especially if we get some clarity, let's call it around the level of tariffs, and we can factor that now into the math. That's why I feel like, it's not like we're just closing, putting pencils down as the expression we use and not doing anything. We're actually working pretty aggressively on trying to find closure on a number of opportunities. Long answer, I'm sorry, but that's kind of how we see it.

我們在各個階段都與他們處於競爭地位，隨著接下來的幾個月過去，特別是如果我們得到一些明確的信息，我們可以將其稱為關稅水平，現在我們可以將其納入計算之中。這就是為什麼我覺得，我們並不是只是關閉，用我們的表達方式來說，把鉛筆放下，什麼都不做。事實上，我們正​​在積極努力，試圖抓住許多機會。答案很長，很抱歉，但我們就是這麼看的。

Yes, no apology needed. That was a very thorough. I was going to ask you about the impact of the current market volatility on evaluation, and you addressed that as well. So, thank you.

是的，不需要道歉。那是非常徹底的。我本來想問您目前市場波動對評估的影響，您也談到了這個問題。所以，謝謝你。

Maybe moving to educators' resource and the dividend recap there, maybe if you can just walk me through the rationale for why this was the right time and strategy, what the new capital will help them to do, and maybe a second part just are there any other, dividend recap opportunities that you see in your portfolio today?

也許轉向教育工作者資源和股息回顧，也許你可以向我解釋為什麼這是正確的時間和策略，新資本將幫助他們做什麼，也許第二部分是，你今天在投資組合中看到的任何其他股息回顧機會？

Yes, so the last part of the question today, I don't see any necessarily, but we're always obviously continuing to evaluate that. Keep in mind when we do a dividend recap, we've done a few, we've not done a great many, but when we do a dividend recap, it's usually around a couple of things. One, we have a management team that has got investment in the company. And it's an opportunity for them to get some liquidity.

是的，所以對於今天問題的最後一部分，我認為沒有必要，但我們顯然一直在繼續評估這一點。請記住，當我們進行股息回顧時，我們只做了一些，沒有做很多，但是當我們進行股息回顧時，通常圍繞著幾件事。一是我們有一支對公司進行投資的管理團隊。這對他們來說是一個獲得流動性的機會。

We like them, we like the basics and the fundamentals of the business, and so we collectively believe it makes sense going forward. In doing that, we then also obviously for us to have the opportunity to put in a bit more capital, usually it's in the form of some coverage which obviously increases the opportunity for us to generate income on that incremental call it debt investment at the same time that we took out some money and either generated a cap gain in the educators side.

我們喜歡它們，我們喜歡業務的基本面和根本性，因此我們一致相信未來的發展是有意義的。在這樣做時，我們顯然也有機會投入更多的資本，通常是以某種保險的形式，這顯然增加了我們在增量債務投資中創造收入的機會，同時我們拿出一些錢並在教育工作者方面產生了資本收益。

We didn't do it where we generated a cap gain per se, but we did generate incremental income for us dividends. Income, which was which was a positive and specifically in their case, the management team that when we bought the business some years ago, it was with a family team, really experienced, very good in this business, and frankly it was, we've been looking at the idea would we exit the whole company, potentially sell it.

我們並沒有從本質上產生資本收益，但我們確實透過股息創造了增量收入。收入是一個積極的方面，特別是在他們的情況下，當我們幾年前收購這家公司時，管理團隊是一個家族團隊，他們經驗豐富，在這個行業非常出色，坦率地說，我們一直在考慮退出整個公司，或者可能將其出售。

We felt that frankly the way things were going on the team, we liked it well enough that it was a kind of a reinvestment decision. So, we and the management team agreed to stay in, to recap it, as I mentioned, they took some money off, we took some money out, and we keep going forward with the business, and yes, that's kind of where that one stands.

坦白說，我們覺得我們非常喜歡團隊的現狀，這是一種再投資決策。因此，我們和管理團隊同意留下來，總而言之，正如我提到的那樣，他們拿走了一些錢，我們也拿走了一些錢，但我們繼續推進業務，是的，情況就是這樣。

Excellent, and last one for me, just a, I think I missed it. I prepared remarks Taylor, I think you mentioned the current spill over amount and I neglected to write that down fast enough. Could you repeat that please?

非常好，對我來說這是最後一個了，只是，我想我錯過了它。我準備好了評論泰勒，我想你提到了當前的溢出量，但我忘了及時把它寫下來。你再說一遍，好嗎？

Sure.

當然。

So, we ended the year with $55.3 million of spillover, which is at the current level $1.50 per share. So that amount covers the current run rate for the monthlies of $0.08 per share, so $0.96, and our 54 supplemental that we're going to pay in June.

因此，我們今年的溢利為 5530 萬美元，按當前水準計算為每股 1.50 美元。因此，該金額​​涵蓋了每股 0.08 美元的月度當前運行率，即 0.96 美元，以及我們將在 6 月支付的 54 美元補充費用。

Perfect thank you so much for taking my questions today.

非常感謝您今天回答我的問題。

Thanks Erik.

謝謝埃里克。

And just to make one point here, I know we talk about buyouts. We're not in that giant buyout game which seems to be stalled because there's no exit for them in the public marketplace. So, there's a lot of people with investments in large buyouts that don't have any liquidity.

我只想在這裡說明一點，我知道我們談論的是收購。我們並沒有陷入那種大型收購遊戲，這種遊戲似乎因為在公開市場上沒有退出管道而陷入停滯。因此，許多人投資大型收購，但卻沒有任何流動性。

We're not in that. We put something up for sale and usually get it sold pretty quick. That that's just the difference in our business versus the giant buyout business that goes on in the marketplace.

我們不屬於那一類。我們把一些東西拿出來賣，通常很快就賣完了。這就是我們的業務與市場上的大型收購業務之間的差異。

Any other questions?

還有其他問題嗎？

None at this time, sir. I would like to turn it back over to you for closing comments.

目前沒有，先生。我想把這個時間交還給你們，請你們發表最後評論。

Okay, thank you all for listening to our report, and unfortunately, we don't have enough questions. We wish you guys would dream up some more questions for us to answer. We're pleased to do that and thank you so much for attending this meeting, and we'll see you next quarter. That's the end of this call.

好的，謝謝大家聆聽我們的報告，很遺憾，我們的問題還不夠多。我們希望你們能提出更多問題讓我們來回答。我們很高興這樣做，非常感謝您參加這次會議，我們下個季度再見。本次通話到此結束。

Ladies and gentlemen, thank you for your participation and interest in Gladstone Investments. This concludes today's event. You may disconnect your lines or log off the webcast at this time and enjoy the rest of your day.

女士們、先生們，感謝您對 Gladstone Investments 的參與與關注。今天的活動到此結束。現在您可以斷開線路或退出網路廣播，享受剩餘的一天。