EXHIBIT 99.1

Gladstone Investment Corporation Reports Financial Results for its Fourth Quarter and Fiscal Year Ended March 31, 2017

MCLEAN, Va., May 15, 2017 (GLOBE NEWSWIRE) -- Gladstone Investment Corporation (NASDAQ:GAIN) (the “Company”) today announced earnings for its fourth quarter and fiscal year ended March 31, 2017. Please read the Company’s Annual Report on Form 10-K filed today with the U.S. Securities and Exchange Commission (the “SEC”), which can be retrieved from the SEC’s website at www.sec.gov or from the Company’s website at www.gladstoneinvestment.com

 
Summary Information:  (dollars in thousands, except per share data (unaudited)):
 
  March 31,
2017
 December 31,
2016
 Change %
Change
 
For the quarter ended:         
Total investment income $12,364 $13,374  $(1,010)(7.6)%
Total expenses, net 7,070 8,170 (1,100)(13.5)
Net investment income 5,294 5,204 90 1.7 
Net realized gain (loss) 157 (3,137)3,294 NM 
Net unrealized appreciation 3,925 8,888 (4,963)(55.8)
Net increase in net assets resulting from operations 9,376 10,955 (1,579)(14.4)
Net investment income per common share 0.17 0.17   
Cash distribution per common share 0.19 0.19   
          
Distributions coverage ratio(A) 228.3%232.3%(4.0)%(1.7)
Weighted average yield on interest-bearing investments 12.8  12.7 0.1 0.8 
Total dollars invested $31,260 $  $31,260 NM 
Total dollars repaid and collected from sales 5,151 18,534 (13,383)(72.2)
          
As of:         
Total investments, at fair value $501,579 $471,440  $30,139 6.4%
Fair value, as a percent of cost 95.5%94.5%1.0%1.1 
Net assets $301,082 $297,382  $3,700 1.2 
Net asset value per common share 9.95 9.82 0.13 1.3 
Number of portfolio companies 35 35   


  March 31,
2017
 March 31,
2016
 Change %
Change
 
For the year ended:         
Total investment income $51,875 $50,955  $920 1.8%
Total expenses, net 29,453 30,239 (786)(2.6)
Net investment income 22,422 20,716 1,706 8.2 
Net realized gain (loss) 15,387 (4,599)19,986 NM 
Net unrealized appreciation 6,954 8,737 (1,783)(20.4)
Net increase in net assets resulting from operations 44,763 24,854 19,909 80.1 
Net investment income per common share 0.74 0.68 0.06 8.2 
Cash distribution per common share 0.75 0.75   
          
Distributions coverage ratio(A) 132.1%128.3%3.8%3.0 
Weighted average yield on interest-bearing investments 12.7 12.6 0.1 0.8 
Total dollars invested $62,446 $61,896  $550 0.9 
Total dollars repaid and collected from sales 68,825 44,582 24,243 54.4 
          
As of:       
Total investments, at fair value $501,579 $487,656  $13,923 2.9%
Fair value, as a percent of cost 95.5%94.1%1.4%1.5 
Net assets $301,082 $279,022  $22,060 7.9 
Net asset value per common share 9.95 9.22 0.73 7.9 
Number of portfolio companies 35 36 (1)(2.8)
          

(A) Distributions coverage ratio is calculated by dividing the sum of net investment income in excess of distributions at the end of the period and distributions to common stockholders during the period by current period distributions to common stockholders.

NM = Not Meaningful

Highlights for the Quarter:  During the quarter ended March 31, 2017, the following significant events occurred:

Fourth Quarter Results: Net investment income for the quarters ended March 31, 2017 and December 31, 2016, was $5.3 million, or $0.17 per share, and $5.2 million, or $0.17 per share, respectively, an increase of 1.7%. Net investment income period over period was relatively flat as the slight decrease in total investment income was offset by a decrease in total expenses net of credits. 

Net asset value per common share as of March 31, 2017 increased to $9.95 compared to $9.82 as of December 31, 2016. The quarter over quarter increase was primarily due to $3.9 million of net unrealized appreciation during the period, which was principally due to improved performance of certain portfolio companies and, to a lesser extent, an increase in comparable multiples.

Fiscal Year End Results: Net investment income for the fiscal years ended March 31, 2017 and 2016 was $22.4 million, or $0.74 per share, and $20.7 million, or $0.68 per share, respectively, an increase of 8.2%. The increase in net investment income period over period was primarily due to higher other income, both dividend income and success fee income, and a decrease in total expenses net of credits, including lower incentive fees.

Net asset value per common share as of March 31, 2017 increased to $9.95 compared to $9.22 as of March 31, 2016. The year-over-year increase was primarily due to $15.6 million of net realized gains on investments as a result of portfolio company exits and $6.9 million of net unrealized appreciation, which was principally due the improved performance of certain portfolio companies and an increase in comparable multiples, partially offset by the reversal of previously recorded net unrealized appreciation related to exits.

Subsequent Events:  After March 31, 2017, the following significant events occurred:

  
Record Date Payment Date Distribution per Common Share Dividend per Series B Term Preferred Share Dividend per
Series C Term Preferred Share
 Dividend per
Series D Term Preferred Share
 
April 21, 2017 April 28, 2017 $0.064 $0.140625 $0.135417 $0.13020833 
May 19, 2017 May 31, 2017 0.064 0.140625 0.135417 0.13020833 
June 5, 2017 June 15, 2017 0.060(A)    
June 21, 2017 June 30, 2017 0.064 0.140625 0.135417 0.13020833 
  Total for the Quarter: $0.252 $0.421875 $0.406251 $0.39062499 


(A) Denotes supplemental distribution to common stockholders.
  

Conference Call: The Company will hold its earnings release conference call on Tuesday, May 16, 2017, at 8:30 a.m. EDT. Please call (855) 376-7516 to enter the conference. An operator will monitor the call and set a queue for any questions. A replay of the conference call will be available through June 15, 2017. To hear the replay, please dial (855) 859-2056 and use the playback conference number 56283683. The replay will be available beginning approximately one hour after the call concludes. The live audio broadcast of the Company’s quarterly conference call will also be available online at www.gladstoneinvestment.com. The event will be archived and available for replay on the Company’s website through July 15, 2017.

About Gladstone Investment Corporation: Gladstone Investment Corporation is a publicly traded business development company that seeks to make secured debt and equity investments in lower middle market businesses in the United States in connection with acquisitions, changes in control and recapitalizations. The Company has paid 142 consecutive monthly cash distributions on its common stock. Information on the business activities of all the Gladstone funds can be found at www.gladstonecompanies.com.

To obtain a paper copy of our Annual Report on Form 10-K filed today with the SEC, please contact the Company at 1521 Westbranch Drive, Suite 100, McLean, VA 22102, ATTN: Investor Relations. The financial information above is not comprehensive and is without notes, so readers should obtain and carefully review the Company’s Form 10-K for the year ended March 31, 2017, including the notes to the consolidated financial statements contained therein.

Investor Relations Inquiries: Please visit www.gladstone.com or +1-703-287-5893.