November 7, 2016

GSV Capital Corp. Reports Third Quarter 2016 Financial Results and Paid a $0.04 Dividend per Share

Net Asset Value of $10.08 per Share as of September 30, 2016

WOODSIDE, Calif., Nov. 07, 2016 (GLOBE NEWSWIRE) -- GSV Capital Corp. ("GSV Capital" or the "Company") (Nasdaq:GSVC) today announced financial results for the quarter ended September 30, 2016. Net assets totaled approximately $223.6 million, or $10.08 per share, at September 30, 2016, as compared to $10.22 per share at June 30, 2016. 

"We launched GSV Capital to provide public investors with unique access to the most dynamic, fastest-growing private companies in the world," said Michael Moe, Chief Executive Officer of GSV Capital. "We are pleased to report continued strong fundamentals in the portfolio, especially for top names, including Dropbox, Palantir, Snap, Coursera, Lyft, and Spotify."

Dividend Information

On August 3, 2016, GSV Capital's Board of Directors declared a per share cash dividend of $0.04, which was paid on August 24, 2016 to the Company's stockholders of record as of the close of business on August 16, 2016.

Investment Portfolio as of September 30, 2016

At September 30, 2016, GSV Capital held positions in 46 portfolio companies with an aggregate fair value of approximately $298.3 million. Excluding Treasuries, the Company's top ten portfolio company investments accounted for 55.3% of the total portfolio at fair value.

Top Ten Investments at September 30, 2016
 
$ in millions (rounded) Fair Value % of Total Portfolio 
Palantir Technologies, Inc. $ 43.0  14.4%
Dropbox, Inc.   17.1  5.7 
Spotify Technology S.A.   16.2  5.4 
Coursera, Inc.   14.4  4.8 
PayNearMe, Inc.   14.0  4.7 
JAMF Holdings, Inc.   12.4  4.2 
General Assembly Space, Inc.   12.4  4.1 
Ozy Media, Inc.   12.1  4.0 
Declara, Inc.   12.0  4.0 
Curious.com, Inc.   11.3  3.8 
Total (rounded) $ 164.9  55.3%

Of the five key investment themes GSV Capital has identified in its portfolio as of September 30, 2016, Cloud Computing and Big Data is its largest commitment, accounting for 33.7% of the total portfolio at fair value. Education Technology represents 32.5% of the total portfolio at fair value, and Social Mobile, Marketplaces and Sustainability represent 14.9%, 14.4% and 4.5% of the total portfolio at fair value, respectively.

Third Quarter 2016 Portfolio Investment Activity

In the third quarter of 2016, GSV Capital invested approximately $2.5 million, including a follow-on investment of approximately $2.0 million in Ozy Media, Inc. and approximately $0.5 million follow-on investment in Lytro, Inc.

GSV Capital sold shares in the following portfolio companies during the third quarter of 2016:

     Average      
   Shares Net Share Net Realized  
Portfolio Company  Sold Price 1 Proceeds Gains 2 IRR
            
Lyft, Inc.  170,000 $24.00 $4,080,000$2,351,752  42.9%
Twitter, Inc.  800,600 $18.21  14,578,469 306,603  0.4%
Total     $18,658,469$2,658,355  
            
            
(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 exclude any realized gains/(losses) incurred on the maturity of GSV Capital's treasury investments.
 

Subsequent to third quarter-end, through November 7, 2016, GSV Capital sold shares in the following portfolio company:

     Average     
   Shares Net Share Net Realized 
Portfolio Company  Sold Price 1 Proceeds Loss 2 
           
Upwork Global Inc.  25,159 $4.31  $108,530  $(77,819) 
           
           
(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) exclude any realized gains/(losses) incurred on the maturity of GSV Capital's treasury investments.

At quarter-end and as of November 7, 2016, GSV Capital had no borrowings outstanding and $18.0 million of borrowing capacity available to it under its credit facility.

Third Quarter 2016 Financial Results

 Quarter Ended
September 30, 2016
 Quarter Ended
September 30, 2015
$ in millions (rounded)
 per share
 $ in millions (rounded)
 per share
Net investment loss$(4.2) $(0.19) $(32.8) $(1.70)
     
Net realized gains$2.7  $0.12  $27.3  $1.40 
     
Benefit for taxes on net realized gains -   -  $11.3  $0.59 
     
Net change in unrealized depreciation of investments$(1.3) $(0.06) $(22.0) $(1.14)
     
Benefit for taxes on unrealized depreciation of investments$0.6  $0.02  $25.0  $1.30 
     
Distributions from realized gain$(0.9) $(0.04)  -   - 
     
Net increase/(decrease) in net assets resulting from operations - basic$(2.3) $(0.10) $8.9  $0.45 
     

Weighted-average common basic shares outstanding were approximately 22.2 million for the quarter ended September 30, 2016 and 19.3 million for the quarter ended September 30, 2015.

GSV Capital's liquid assets ended the quarter at $37.8 million, consisting of $11.4 million of cash, $18.0 million of unused borrowings available under the Company's credit facility and $8.4 million of public securities not subject to lock-up agreements, none 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 877-419-6593, and the conference call number for participants outside of the United States is 1-719-325-4824. The conference ID number for both call numbers is 2157689. Additionally, interested parties can listen to a live webcast of the call from the "Investor Relations" 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 until 5:00 p.m. PT (8:00 p.m. ET) on November 14, 2016 by dialing 888-203-1112 (U.S.) or 1-719-457-0820 (international) and using conference ID number 2157689.

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

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.

GSV CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (Unaudited)
 
 
 September 30, 2016 December 31, 2015
ASSETS   
Investments at fair value:     
Investments in controlled securities (cost of $22,832,672 and $21,830,392, respectively) (1)$ 22,050,846  $ 22,871,790 
Investments in affiliated securities (cost of $73,984,911 and $73,942,123, respectively) (1)  64,121,729    66,075,585 
Investments in non-controlled/non-affiliated securities (cost of $181,608,512 and $197,577,328, respectively)  212,097,381    260,861,392 
Investments in treasury bill (cost of $29,999,935 and $29,999,968, respectively)  29,999,935    30,000,000 
Investments owned and pledged (amortized cost of $0 and $3,675,192, respectively) (2)  -    3,676,693 
Total Investments (cost of $308,426,030 and $327,025,003, respectively)  328,269,891    383,485,460 
      
Cash  11,445,113    13,349,877 
Restricted cash  115,431    52,931 
Due from:     
GSV Asset Management (1)  77,021    220,770 
Portfolio companies (1)  679    56,371 
Interest and dividends receivable  222,361    97,183 
Prepaid expenses and other assets  315,238    227,826 
Deferred financing costs (3)  356,268    352,653 
Total Assets  340,802,002    397,843,071 
      
LIABILITIES     
Due to:     
GSV Asset Management (1)  895,932    5,047,429 
Accounts payable and accrued expenses  364,239    105,587 
Accrued incentive fees (1)  9,509,476    17,314,565 
Accrued management fees (1)  541,988    683,423 
Accrued interest payable  150,938    1,056,563 
Payable for securities purchased  26,499,909    26,499,357 
Deferred tax liability  11,924,845    12,476,155 
Convertible Senior Notes payable 5.25% due September 15, 2018 (2)(3)  67,294,938    66,649,047 
Total Liabilities  117,182,265    129,832,126 
      
Commitments and contingencies      
      
Net Assets$ 223,619,737  $ 268,010,945 
      
NET ASSETS     
Common stock, par value $0.01 per share     
(100,000,000 authorized; 22,181,003 issued and outstanding, respectively)$ 221,810  $ 221,810 
Paid-in capital in excess of par  237,757,527    237,757,527 
Accumulated net investment loss  (21,760,725)   (16,634,037)
Accumulated net realized gains/(losses) on investments  (517,892)   2,681,342 
Accumulated net unrealized appreciation of investments  7,919,017    43,984,303 
Net Assets$ 223,619,737  $ 268,010,945 
      
Net Asset Value Per Share$ 10.08  $ 12.08 
      
(1)   This balance is a related-party transaction.
(2)   The Convertible Senior Notes have a face value of $69,000,000. 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 N.A., the trustee. These funds were used to purchase six U.S. Treasury Strips with an original cost of $10,845,236. As of September 30, 2016, all of the government securities purchased had matured and the proceeds were used by the trustee in accordance with the terms of the escrow agreement.
(3)  Deferred debt issuance costs of $1,947,572 related to the Company's issuance of the Convertible Senior Notes payable were previously classified as "Deferred financing costs" as of December 31, 2015.  In accordance with FASB ASU 2015-03, this balance has been retrospectively reclassified as a direct deduction from the Convertible Senior Notes on the Condensed Consolidated Statements of Assets and Liabilities at September 30, 2016.
 


GSV CAPITAL CORP. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
       
   Three months ended September 30,  Nine months ended September 30,
    2016    2015    2016    2015 
INVESTMENT INCOME            
Interest income from controlled securities (1) $ 23,000  $ -  $  43,417  $ - 
Interest income/(reversal of interest accrual) from affiliated securities (1)    61,145    31,992     79,858     152,388 
Interest income from non-controlled/non-affiliated securities   2,503    7,371     11,906     23,109 
Dividend income from non-controlled/non-affiliated securities   -    -    -    46,781 
Total Investment Income   86,648    39,363    135,181    222,278 
             
OPERATING EXPENSES            
Management fees (1)    1,625,963     2,063,017     5,324,186     5,994,530 
Incentive fees / (Reversal of incentive fee accrual) (1)    220,719     1,062,535     (7,805,089)    10,839,602 
Costs incurred under administration agreement (1)     627,444     598,456     1,926,085     2,185,888 
Directors' fees    86,250     94,620     258,750     287,426 
Professional fees     416,353      265,429      1,441,856      1,001,401 
Interest expense    1,189,736     1,183,833     3,557,225     3,781,419 
Income tax expense   -     852,970    -     852,970 
Other expenses   141,838     118,417    558,856     382,895 
Gain on fair value adjustment for embedded derivative   -     -    -     (1,000)
Total Operating Expenses   4,308,303      6,239,277    5,261,869      25,325,131 
             
Provision for taxes on net investment loss (3)   -    (26,583,935)   -     (18,865,865)
             
Net Investment Loss    (4,221,655)    (32,783,849)   (5,126,688)   (43,968,718)
             
Net Realized Gains/(Losses):              
From affiliated securities   -    (10,170,567)   -     (10,161,030)
From non-controlled/non-affiliated securities   2,658,715     37,460,383    (2,311,994)    64,305,863 
Net Realized Gains/(Losses) on investments   2,658,715     27,289,816    (2,311,994)    54,144,833 
             
Benefit from taxes on realized            
gains on investments (3)   -    11,307,706    -    342,802 
             
Net Change in Unrealized Appreciation/            
(Depreciation) of Investments:            
From controlled securities    (1,616,568)    719,143     (1,823,224)    685,571 
From affiliated securities    (584,077)    5,124,897     (6,951,895)    4,467,809 
From non-controlled/non-affiliated securities    938,936    (27,825,708)    (27,841,477)    (5,095,366)
Total Change in Unrealized Appreciation/            
(Depreciation) of investments   (1,261,709)   (21,981,668)   (36,616,596)   58,014 
             
Benefit from taxes on unrealized            
appreciation/depreciation of investments (3)   551,310    25,020,686    551,310    16,021,883 
             
Net Increase/(Decrease) in Net Assets            
Resulting from Operations $  (2,273,339) $ 8,852,691  $ (43,503,968) $ 26,598,814 
             
Net Increase/(Decrease) in Net Assets Resulting            
from Operations per Common Share            
Basic $ (0.10) $  0.45  $ (1.96) $  1.37 
Diluted (2) $ (0.10) $  0.42  $ (1.96) $  1.27 
             
Weighted-Average Common Shares Outstanding             
Basic   22,181,003    19,320,100    22,181,003    19,320,100 
Diluted (2)   22,181,003    23,564,228    22,181,003    23,564,228 
                     
(1)    This balance is a related-party transaction.
(2)    For the three and nine months ended September 30, 2016, 5,751,815 potentially dilutive common shares were excluded from the weighted-average common shares outstanding for diluted net decrease in net assets resulting from operations per common share because the effect of these shares would have been anti-dilutive.
(3)    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 periods were reversed, resulting in a provision for net investment loss, a benefit from net realized gains, and a benefit from unrealized appreciation of investments for the three and nine months ended September 30, 2015.
 


GSV CAPITAL CORP. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS (Unaudited)
       
  Three months ended  Three months ended 
Per Share Data: September 30, 2016  September 30, 2015 
       
Net asset value at beginning of period$ 10.22  $ 15.72  
Net investment loss  (0.19) (1)    (1.70) (1)
Realized gain   0.12  (1)    1.40  (1)
Benefit from taxes on net realized capital gains   -   (1)    0.59  (1)
Net change in unrealized depreciation   (0.06) (1)    (1.14) (1)
Benefit from taxes on unrealized depreciation of investments  0.02  (1)   1.30  (1)
Dividends from realized gain  (0.04)   -  
Net asset value at end of period 10.08  $ 16.17  
       
Per share market value at end of period$ 4.72  $  7.85  
Total return based on market value  (5.23)%(2)   (23.86)%(2)
Total return based on net asset value  (0.59)%(2)   2.86 %(2)
Shares outstanding at end of period  22,181,003    19,320,100    
   .     
Ratio/Supplemental Data:        
Net assets at end of period$  223,619,737  $  312,502,487    
Average net assets$  226,900,410  $  303,720,148    
         
Annualized ratios        
Ratio of gross operating expenses to average net assets (3)  7.53 %     8.24 %  
Ratio of net income tax provisions to average net assets (3)  (0.96)%     12.87 %  
Ratio of net operating expenses to average net assets (3)  6.57 %     21.11 %  
       
Ratio of net investment loss to average net assets (3)  (7.38)%     (43.30)%  
          
Portfolio Turnover Ratio  0.82 %     1.78 %  
       
       


GSV CAPITAL CORP. AND SUBSIDIARIES 
FINANCIAL HIGHLIGHTS (Unaudited) 
  
  Nine months ended  Nine months ended 
  September 30, 2016  September 30, 2015 
Per Share Data:      
Net asset value at beginning of period$ 12.08  (1) $ 14.80  (1)
Net investment loss   (0.23) (1)    (2.28) (1)
Realized gain/(loss)   (0.10) (1)    2.80  (1)
Benefit from taxes on net realized capital gains  -  (1)    0.02  (1)
Net change in unrealized appreciation/(depreciation)  (1.65) (1)   0.00  (1)
Benefit from taxes on unrealized appreciation/depreciation of investments   0.02     0.83  
Dividends from realized gain   (0.04)   -  
Net asset value at end of period$ 10.08  $ 16.17  
       
Per share market value at end of period$ 4.72  $  7.85  
Total return based on market value  (28.03)%(2)   (9.04)%(2)
Total return based on net asset value  (15.90)%(2)   9.26 %(2)
Shares outstanding at end of period  22,181,003    19,320,100  
       
Ratio / Supplemental Data:      
Net assets at end of period$  223,619,737  $  312,502,487  
Average net assets$   250,723,620  $  299,491,050  
       
Annualized ratios      
Ratio of gross operating expenses to average net assets (3)  2.80 %     11.31 %  
Ratio of net income tax provisions to average net assets (3)  (0.29)%     (1.12)%  
Ratio of net operating expenses to average net assets (3)  2.51 %     10.19 %  
            
Ratio of net investment loss to average net assets (3)  (2.72)%     (19.63)%  
            
Portfolio Turnover Ratio  4.05 %     4.53 %  
                
(1)    Based on weighted-average number of shares outstanding for the period.
(2)   Total return based on market value is based on the change in market price per share between the opening and ending market values per share in the period. Total return based on net asset value is based upon the change in net asset value per share between the opening and ending net asset values per share.
(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 three and nine months ended September 30, 2016 and 2015, the Company did not incur any non-recurring expenses. 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.
 
Contact

GSV Capital Corp.
(650) 235-4769
IR@gsvam.com


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