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GSV Capital Corp. Reports Third Quarter 2014 Results of Operations

WOODSIDE, Calif., Nov. 6, 2014 (GLOBE NEWSWIRE) -- GSV Capital Corp. ("GSV") (Nasdaq:GSVC), today announced financial results for the third quarter ended September 30, 2014. Net assets totaled $293.1 million or $15.17 per share at September 30, 2014, as compared to $14.86 per share at June 30, 2014, and $13.16 per share at September 30, 2013.

"We are pleased that NAV continues to increase, reaching an all time high this quarter and was up over 15% from a year ago," said Michael Moe, Chief Executive Officer of GSV Capital. "Another positive milestone in the quarter was monetizing several of our private positions with strong returns, including ZocDoc, Dianrong, and a portion of Palantir. We believe it's important to demonstrate an ability to get liquidity for our private holdings to optimize portfolio performance."

"Additionally, the overall portfolio continues to exhibit excellent fundamentals with the average year-over-year growth greater than 90%," Moe continued. "We are confident that high and sustainable growth will correlate with appreciation of our Net Asset Value."

Third Quarter 2014 Portfolio Highlights include:

  • GSV sold shares in a number of its public and private portfolio companies including:

1) 320,000 shares of Palantir at $5.50 per share, resulting in $1.8 million in net proceeds, a $0.9 million realized gain, and a 36% Internal Rate of Return (IRR).

2) 300,000 shares of Twitter (Ticker:TWTR) at an average price $52.27 per share, resulting in $15.7 million in net proceeds. This transaction generated $10.2 million in realized gains and a 42% IRR.

3) 8,747,476 shares of Dianrong at $0.49 per share, resulting in $4.3 million in net proceeds. This transaction generated $3.5 million in realized gains and a 151% IRR.

4) 311,866 shares of ZocDoc at $25 per share, resulting in $7.8 million in net proceeds, a $2.5 million realized gain, and a 18% IRR.

  • GSV invested $10.3 million in the quarter, including a new investment in CourseHero, and follow-on investments in the following portfolio companies: Circle Media, Earlyshares, GSV Sustainability Partners, nestGSV, Solexel and Stormwind.

Investment Portfolio as of September 30, 2014

At September 30, 2014, GSV owned positions in 49 portfolio companies with an aggregate fair value of $366.2 million. The Company's three largest investments comprised 40.6% of the total portfolio value excluding Treasuries while its top ten portfolio companies represented 65.3% of the total portfolio value excluding Treasuries.

Top Ten Investments at September 30, 2014
$ in millions Fair
Value
% of Total
Portfolio
Twitter, Inc. $ 82.6 22.5%
Palantir Technologies, Inc. 39.5 10.8
Dropbox, Inc. 26.4 7.2
2U, Inc. 18.5 5.1
Coursera, Inc. 14.5 4.0
Solexel, Inc. 14.0 3.8
SugarCRM, Inc. 12.1 3.3
Avenues Global Holdings, LLC. 11.2 3.1
Declara, Inc. 10.1 2.8
PayNearMe, Inc. 10.0 2.7
Total $ 238.9 65.3%

Third Quarter 2014 Portfolio Investment Activity

In the third quarter of 2014, GSV invested $10.3 million, including a new investment in CourseHero, and made follow-on investments in the following portfolio companies: Circle Media, Earlyshares, GSV Sustainability Partners, nestGSV, Solexel and Stormwind.

During the third quarter of 2014, GSV sold the following investments.

Average
Shares Share Net Realized
Portfolio Company Sold Price Proceeds Gain/Loss
Palantir Technologies 320,000 $5.50 $1,759,900 $889,672
Twitter Inc. 300,000 $52.27 $15,681,483 $10,241,936
DianRong (fka SinoLending Ltd.) 8,747,476 $0.49 $4,286,230 $3,531,144
ZocDoc Inc. 311,866 $25.00 $7,796,650 $2,498,594
Total Net Proceeds $ 29,524,263 $ 17,161,346

At September 30, 2014, GSV had investments in 44 private companies and 5 public companies (2U, Chegg, Cricket Media (fka ePals Inc.) TrueCar, and Twitter). In general, management intends to liquidate its public securities holdings within one year following the expiration of the IPO lock-up.

Subsequent to third quarter end, GSV Capital invested $3.5 million, including new investments of $2.5 million in DogVacay and $1.0 million in Enjoy Technologies. In addition, GSV Capital made follow-on investments of $11.7 million in OzyMedia, GSV Sustainability Partners, Learnist, and nestGSV.

As GSV's portfolio matures and realizes a cumulative net realized gain, GSV intends to distribute a portion of such gains to shareholders in the form of a distribution.

Third Quarter 2014 Financial Results

GSV recorded a net realized gain on investments of $17.2 million or $0.89 per share during the three months ended September 30, 2014, compared to a net realized loss on investments of $(0.2) million or $(0.01) per share, for the three months ended September 30, 2013. Net investment loss was $(4.9) million or $(0.25) per share during the three months ended September 30, 2014, compared to net investment loss of $(3.0) million or $(0.16) per share, for the three months ended September 30, 2013. For the three months ended September 30, 2014, GSV had a net change in unrealized appreciation on investments of $1.3 million or $0.07 per share, a decrease from the three months ended September 30, 2013 versus $8.9 million or $0.46 per share. Net increase in net assets resulting from operations was $6.0 million or $0.31 per share, for the three months ended September 30, 2014. This compares to a net increase in net assets resulting from operations of $5.7 million or $0.29 per share, for the three months ended September 30, 2013. Weighted average common shares outstanding were 19.3 million for the three months ended September 30, 2014 and September 30, 2013, respectively.

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 877-675-4756 and the conference call number for participants outside the U.S. is 1 719-325-4784. The conference ID number for both call numbers is 2880368. 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 November 13, 2014 by dialing 888-203-1112 (U.S.) or 1 719-457-0820 (international), using conference ID number 2880368.

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 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. www.gsvcap.com

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

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 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.

GSV CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES
September 30, 2014 December 31, 2013
ASSETS (Unaudited)
Investments at fair value:
Investments in controlled securities (cost of $13,153,112 and $0, respectively) $ 14,333,474 $ --
Investments in affiliated securities (cost of $73,333,331 and $64,912,527, respectively) 61,962,467 62,740,162
Investments in non-controlled/non-affiliated securities (cost of $194,419,794 and $214,796,591, respectively) 289,950,095 292,643,491
Investments owned and pledged (cost of $7,277,896 and $10,845,236, respectively) 7,293,864 10,865,200
Investments in United States Treasury Bill (cost of $100,001,483 and $0, respectively) 99,999,944 --
Total Investments (cost of $388,185,616 and $290,554,354, respectively) 473,539,844 366,248,853
Cash 6,517,389 7,219,203
Restricted cash 48,889 22,264
Due from GSV Capital Service Company, LLC (1) 18,834 3,039
Due from Portfolio companies 107,874 153,178
Interest receivable 12,584 7,304
Prepaid expenses 242,194 49,739
Coupon interest receivable 896 11,141
Dividend receivable -- 13,233
Deferred credit facility fees 141,586 288,249
Deferred debt issuance costs 2,841,316 3,378,121
Deferred offering costs -- 184,710
Other assets 333,820 368,524
Total Assets 483,805,226 377,947,558
LIABILITIES
Due to GSV Asset Management(1) 48,898 563,978
Accounts payable 101,747 382,165
Accrued incentive fees 16,022,137 10,523,552
Accrued interest payable 235,255 1,056,563
Accrued expenses 155 --
Payable for securities purchased 94,001,484 --
Net deferred tax liability 11,809,330 8,320,561
Line of Credit -- --
Convertible senior notes embedded derivative liability 12,000 799,000
Convertible senior notes payable 5.25% due September 15, 2018 68,429,665 68,335,295
Total Liabilities 190,660,671 89,981,114
Commitments and contingencies (Note 6)
Net Assets $ 293,144,555 $ 287,966,444
NET ASSETS
Common stock, par value $0.01 per share
(100,000,000 authorized; 19,320,100 issued and outstanding) $ 193,201 $ 193,201
Paid-in capital in excess of par 275,837,514 275,837,514
Accumulated net investment loss (30,287,651) (19,192,401)
Accumulated net realized loss on investments (3,102,606) (13,660,306)
Accumulated net unrealized appreciation on investments 50,504,097 44,788,436
Net Assets $ 293,144,555 $ 287,966,444
Net Asset Value Per Share $ 15.17 $ 14.91
(1) This balance is a related party transaction. Refer to Note 2 for more detail.
GSV CAPITAL CORP. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended September 30, Nine Months Ended September 30,
2014 2013 2014 2013
INVESTMENT INCOME
Interest income from controlled securities $ 4,083 $ -- $ 9,816 $ --
Interest income from affiliated securities 9,294 -- 112,747 --
Interest income from non-controlled/non-affiliated securities 8,594 2,256 36,369 2,256
Dividend income from affiliated securities -- 388 -- 13,008
Dividend income from non-controlled/non-affiliated securities -- -- 887 7,638
Total Investment Income 21,971 2,644 159,819 22,902
OPERATING EXPENSES
Investment management fees 1,949,705 1,298,858 5,639,564 3,828,835
Accrued incentive fees 3,684,300 -- 5,498,585 --
Costs incurred under administration agreement 718,896 678,283 2,557,129 2,276,152
Directors' fees 65,000 65,000 195,000 195,250
Professional fees 442,683 198,932 1,301,777 656,796
Interest and credit facility expense 1,442,063 191,188 4,155,759 191,188
Insurance expense 61,800 62,732 181,839 179,807
Investor relations expense 35,816 54,760 194,112 171,265
Other expenses 18,306 45,680 58,898 71,034
Loss (Gain) on fair value adjustment for embedded derivative (147,000) 421,000 (787,000) 421,000
Total Operating Expenses 8,271,569 3,016,433 18,995,663 7,991,327
Benefit for taxes on net investment loss 3,368,311 -- 7,740,594 --
Net Investment Loss (4,881,287) (3,013,789) (11,095,250) (7,968,425)
Net Realized Gain (Loss) on Investments 17,160,816 (162,569) 17,842,995 (9,837,093)
Provision for taxes on Net Realized Capital Gains (7,006,762) -- (7,285,295) --
Net Change in Unrealized Appreciation on Investments 1,260,683 8,892,104 9,659,729 19,545,712
Provision for taxes on Unrealized Appreciation of Investments (514,737) -- (3,944,068) --
Net Increase in Net Assets Resulting from Operations $ 6,018,713 $ 5,715,746 $ 5,178,111 $ 1,740,194
Net Increase in Net Assets Resulting from Operations per Common Share
Basic $ 0.31 $ 0.29 $ 0.27 $ 0.09
Diluted $ 0.30 $ 0.29 $ 0.27 $ 0.09
Weighted Average Common Shares Outstanding
Basic 19,320,100 19,320,100 19,320,100 19,320,100
Diluted 23,564,228 19,320,100 19,320,100 19,320,100
See Notes to the Consolidated Financial Statements.
GSV CAPITAL CORP. AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
Three months ended
September 30, 2014
(Unaudited)
Three months ended
September 30, 2013
(Unaudited)
Per Share Data:
Net asset value at beginning of period $ 14.86 $ 12.87
Net investment loss (0.25) (1) (0.16) (1)
Net realized gain (loss) 0.89 (1) (0.01) (1)
Provision for taxes on Net Realized Capital Gains (0.36) (1) -- (1)
Net change in Unrealized Appreciation of Investments 0.06 (1) 0.46 (1)
Provision for taxes on Unrealized Appreciation of Investments (0.03) (1) -- (1)
Net asset value at end of period $ 15.17 $ 13.16
(1) Based on weighted average number of shares outstanding for the period.

CONTACT: Spencer McLeod (650) 235-4777 smcleod@gsvam.com

Source:GSV Capital Corp.