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This content is a press release from our partner Globe Newswire. The AP newsroom and editorial departments were not involved in its creation.

Fidus Investment Corporation Announces Fourth Quarter and Full Year 2018 Financial Results

February 28, 2019

EVANSTON, Ill., Feb. 28, 2019 (GLOBE NEWSWIRE) -- Fidus Investment Corporation (NASDAQ:FDUS) (“Fidus” or the “Company”), a provider of customized debt and equity financing solutions, primarily to lower middle-market companies based in the United States, today announced its financial results for the fourth quarter and full year ended December 31, 2018.

Fourth Quarter 2018 Financial Highlights

-- Total investment income of $22.2 million -- Net investment income of $10.9 million, or $0.45 per share -- Adjusted net investment income of $11.2 million, or $0.46 per share(1) -- Net increase in net assets resulting from operations of $12.0 million, or $0.49 per share -- Invested $67.7 million in debt and equity securities, including three new portfolio companies -- Received proceeds from repayments and realizations of $96.2 million -- Paid special dividend of $0.04 per share and regular quarterly dividend of $0.39 per share on December 21, 2018 -- Net asset value (NAV) of $403.0 million, or $16.47 per share, as of December 31, 2018

Full Year 2018 Financial Highlights

-- Total investment income of $76.4 million -- Net investment income of $34.8 million, or $1.42 per share -- Adjusted net investment income of $37.7 million, or $1.54 per share(1) -- Net increase in net assets resulting from operations of $49.5 million, or $2.02 per share -- Invested $212.3 million in debt and equity securities, including 15 new portfolio companies -- Received proceeds from repayments and realizations of $188.3 million -- Paid regular dividends totaling $1.56 per share and a special dividend of $0.04 per share -- Estimated spillover income (or taxable income in excess of distributions) as of December 31, 2018 of $17.3 million, or $0.71 per share

Management Commentary

“Rounding out a solid year, our diversified portfolio generated a 29.2% increase in adjusted net investment income for the fourth quarter, reflecting continued growth in recurring interest and fee income with an additional boost in income from equity investments,” said Edward Ross, Chairman and CEO of Fidus Investment Corporation. “For the year, our plan to stay the course, selectively investing in high quality companies that generate strong free cash flow and have positive long-term outlooks, was effective. NAV per share grew for the fourth consecutive year, reflecting positive portfolio returns, and we closed investments totaling $212.3 million while receiving repayments totaling $188.3 million. The overall health of our portfolio along with our adherence to underwriting disciplines focused on capital preservation place us in a durable position to selectively grow our portfolio with a focus on our long-term goal of generating attractive risk-adjusted returns from our debt and equity investments.”

(1) Supplemental information regarding adjusted net investment income:

On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliations of net investment income to adjusted net investment income are set forth in Schedule 1.

Fourth Quarter 2018 Financial Results

The following table provides a summary of our operating results for the three months ended December 31, 2018 as compared to the same period in 2017 (dollars in thousands, except per share data):

Three Months Ended December 31, ------------------ 2018 2017 $ Change % Change -------- -------- --------- --------- Interest income $ 15,049 $ 13,946 $ 1,103 7.9 % Payment-in-kind interest income 2,051 1,857 194 10.4 % Dividend income 3,020 156 2,864 1835.9 % Fee income 2,041 1,068 973 91.1 % Interest on idle funds and other income 47 41 6 14.6 % Total investment income $ 22,208 $ 17,068 $ 5,140 30.1 % - ------ - ------ - ----- - ------ -- Net investment income $ 10,945 $ 7,687 $ 3,258 42.4 % Net investment income per share $ 0.45 $ 0.31 $ 0.14 45.2 % Adjusted net investment income (1) $ 11,152 $ 8,631 $ 2,521 29.2 % Adjusted net investment income per share (1) $ 0.46 $ 0.35 $ 0.11 31.4 % Net increase in net assets resulting from operations $ 11,982 $ 12,407 $ (425 ) (3.4 %) Net increase in net assets resulting from operations per share $ 0.49 $ 0.51 $ (0.02 ) (3.9 %)

The $5.1 million increase in total investment income for the three months ended December 31, 2018 as compared to the same period in 2017 was primarily attributable to (i) a $1.3 million increase in total interest income (including payment-in-kind interest income) resulting from higher average debt investment balances outstanding, partially offset by a decrease in weighted average debt investment yield, (ii) a $2.9 million increase in dividend income from equity investments, and (iii) a $1.0 million increase in fee income resulting primarily from an increase in prepayment fee income.

For the three months ended December 31, 2018, total expenses, including income tax provision, were $11.3 million, an increase of $1.9 million or 20.1%, from the $9.4 million of total expenses, including income tax provision, for the three months ended December 31, 2017. The increase was primarily attributable to (i) a $1.3 million increase in interest and financing expenses due to an increase in average borrowings outstanding and an increase in weighted average interest rate on borrowings, (ii) a $1.0 million net increase in base management and income incentive fees due to higher average total assets and higher pre-incentive fee net investment income, and (iii) partially offset by a $(0.7) million decrease in the capital gains incentive fee accrued.

Net investment income increased by $3.3 million, or 42.4%, to $10.9 million during the three months ended December 31, 2018 as compared to the same period in 2017, as a result of the $5.1 million increase in total investment income, as compared to only a $1.9 million increase in total expenses, including income tax provision. Adjusted net investment income (1), which excludes the capital gains incentive fee accrual, increased by $2.5 million, or 29.2%, to $11.2 million due to the $5.1 million increase in total investment income, as compared to a $2.6 million increase in total expenses, excluding the accrued capital gains incentive fee.

For the three months ended December 31, 2018, the total net realized gain on investments, net of income tax provision on realized gains, was $5.5 million, as compared to total net realized gain on investments, net of income tax provision on realized gains, of $5.0 million for the same period in 2017.

Full Year 2018 Financial Results

The following table provides a summary of our operating results for the year ended December 31, 2018 as compared to the same period in 2017 (dollars in thousands, except per share data):

Years Ended December 31, ------------------ 2018 2017 $ Change % Change -------- -------- --------- -------- Interest income $ 60,883 $ 55,100 $ 5,783 10.5 % Payment-in-kind interest income 6,575 7,039 (464 ) (6.6 %) Dividend income 4,010 1,862 2,148 115.4 % Fee income 4,809 4,463 346 7.8 % Interest on idle funds and other income 148 151 (3 ) (2.0 %) Total investment income $ 76,425 $ 68,615 $ 7,810 11.4 % - ------ - ------ - ----- - ----- -- Net investment income $ 34,761 $ 33,677 $ 1,084 3.2 % Net investment income per share $ 1.42 $ 1.43 $ (0.01 ) (0.7 %) Adjusted net investment income (1) $ 37,699 $ 35,732 $ 1,967 5.5 % Adjusted net investment income per share (1) $ 1.54 $ 1.52 $ 0.02 1.3 % Net increase in net assets resulting from operations $ 49,452 $ 43,951 $ 5,501 12.5 % Net increase in net assets resulting from operations per share $ 2.02 $ 1.87 $ 0.15 8.0 %

The $7.8 million increase in total investment income for the year ended December 31, 2018 as compared to the same period in 2017 was primarily attributable to (i) a $5.3 million increase in total interest income (including payment-in-kind interest income) resulting from higher average debt investment balances outstanding, partially offset by a decrease in weighted average debt investment yield, (ii) a $2.1 million increase in dividend income due to increased levels of distributions received from equity investments, and (iii) a $0.3 million increase in fee income resulting from an increase in prepayment fee income, and partially offset by a decrease in debt amendment fee income.

For the year ended December 31, 2018, total expenses, including income tax provision, were $41.7 million, an increase of $6.7 million or 19.3%, from the $34.9 million of total expenses, including income tax provision, for the year ended December 31, 2017. The increase was primarily attributable to (i) a $3.1 million increase in interest and financing expenses due to an increase in average borrowings outstanding and an increase in weighted average interest rate on borrowings, (ii) a $2.1 million net increase in base management and income incentive fees due to higher average total assets and higher pre-incentive fee net investment income, and (iii) a $0.9 million increase in the capital gains incentive fee accrued.

Net investment income increased by $1.1 million, or 3.2%, to $34.8 million during the year ended December 31, 2018 as compared to the same period in 2017, as a result of the $7.8 million increase in total investment income, as compared to only a $6.7 million increase in total expenses, including income tax provision. Adjusted net investment income (1), which excludes the capital gains incentive fee accrual, increased by $2.0 million, or 5.5%, to $37.7 million due to the $7.8 million increase in total investment income, as compared to a $5.8 million increase in total expenses, excluding the accrued capital gains incentive fee.

For the year ended December 31, 2018, the total net realized loss on investments, net of income tax provision on realized gains, was $(11.0) million, as compared to total net realized gain on investments, net of income tax provision on realized gains, of $15.7 million for the same period in 2017.

Portfolio and Investment Activities

As of December 31, 2018, the fair value of our investment portfolio totaled $643.0 million and consisted of 60 active portfolio companies and three portfolio companies that have sold their underlying operations. Our total portfolio investments at fair value were approximately 107.4% of the related cost basis as of December 31, 2018. As of December 31, 2018, seven debt investments bore interest at a variable rate, which represented $75.9 million of our portfolio on a fair value basis, and the remainder of our debt portfolio was comprised of fixed rate investments. As of December 31, 2018, our average active portfolio company investment at amortized cost was $10.0 million, which excludes investments in the three portfolio companies that have sold their underlying operations. The weighted average yield on debt investments was 12.6% as of December 31, 2018. The weighted average yield was computed using the effective interest rates for debt investments at cost as of December 31, 2018, including the accretion of OID and loan origination fees, but excluding investments on non-accrual status, if any.

Fourth quarter 2018 investment activity included the following new portfolio company investments:

-- Alzheimer’s Research and Treatment Center, LLC, a leading clinical trial site services provider with a focus on trials targeting the treatment and prevention of Alzheimer’s Disease. Fidus invested $7.5 million in first lien debt and common equity. -- Palisade Company, LLC, a leading provider of risk modeling and decision analysis software. Fidus invested $7.5 million in subordinated debt and common equity. -- Argo Turboserve Corporation, a leading provider of parts management and other outsourced logistics services to the aerospace and industrial markets. Fidus invested $15.0 million in second lien debt.

As of December 31, 2018, we had debt investments in two portfolio companies on non-accrual status, which had an aggregate cost and fair value of $29.6 million and $20.8 million, respectively.

Liquidity and Capital Resources

As of December 31, 2018, we had $42.0 million in cash and cash equivalents and $53.5 million of unused capacity under our senior secured revolving credit facility (the “Credit Facility”). As of December 31, 2018, we had SBA debentures outstanding of $191.0 million, $50.0 million outstanding of our 5.875% notes due 2023 (the “Public Notes”), and $36.5 million outstanding under our Credit Facility. As of December 31, 2018, the weighted average interest rate on total debt outstanding was 4.1%.

Subsequent Events

On January 3, 2019, we invested $17.0 million in subordinated debt, common equity and preferred equity, and made a commitment for up to $11.0 million of additional subordinated debt, of BCM One Group Holdings, Inc., a provider of managed technology solutions and services.

On January 3, 2019, we exited our debt investments in Gurobi Optimization, LLC. We received payment in full of $20.4 million on our subordinated debt, which includes a prepayment penalty.

On January 28, 2019, we exited our existing debt and equity investments in K2 Industrial Services, Inc. We received payment in full on our Tranche A and A-1 notes, including prepayment penalties, and recognized a loss of approximately $1.3 million on our equity investment. We converted our remaining Tranche B note into a new debt security of K2 Merger Agreement Agent, LLC (the residual escrow entity).

On January 28, 2019, we invested $18.4 million in subordinated debt and common equity of BCC Group Holdings, Inc., a leading provider of software and data solutions designed to enhance direct mail processing.

On February 1, 2019, we exited our debt investment in Fiber Materials, Inc. We received payment in full of $4.0 million on our second lien debt.

On February 1, 2019, we exited our debt investment in Tile Redi, LLC. We received payment in full of $10.2 million on our first lien debt.

On February 7, 2019, we invested $10.5 million in first lien debt and common equity of Diversified Search, LLC, a leading multi-practice retained executive search firm.

On February 8, 2019, we closed the public offering of approximately $60.0 million in aggregate principal amount of our 6.000% notes due 2024, or the “2024 Notes.” On February 19, 2019, the underwriters exercised their option to purchase an additional $9.0 million in aggregate principal of the 2024 Notes. The total net proceeds to us from the 2024 Notes, including the exercise of the underwriters’ option, after deducting underwriting discounts of approximately $2.1 million and estimated offering expenses of $0.4 million, were approximately $66.5 million. The 2024 Notes are listed on the NASDAQ Global Select Market under the trading symbol “FDUSZ.”

On February 28, 2019, we repaid $19.8 million of SBA debentures with a weighted average interest rate of 3.1% which would have matured on dates ranging from September 1, 2021 to March 1, 2025.

First Quarter 2019 Dividend of $0.39 Per Share Declared

On January 31, 2019, our Board of Directors declared a regular quarterly dividend of $0.39 per share payable on March 22, 2019 to stockholders of record as of March 8, 2019.

When declaring dividends, our Board of Directors reviews estimates of taxable income available for distribution, which differs from consolidated income under generally accepted accounting principles due to (i) changes in unrealized appreciation and depreciation, (ii) temporary and permanent differences in income and expense recognition, and (iii) the amount of undistributed taxable income carried over from a given year for distribution in the following year. The final determination of 2019 taxable income, as well as the tax attributes for 2019 dividends, will be made after the close of the 2019 tax year. The final tax attributes for 2019 dividends will generally include ordinary taxable income but may also include capital gains, qualified dividends and return of capital.

Fidus has adopted a dividend reinvestment plan (“DRIP”) that provides for reinvestment of dividends on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when we declare a cash dividend, stockholders who have not “opted out” of the DRIP at least two days prior to the dividend payment date will have their cash dividends automatically reinvested in additional shares of our common stock. Those stockholders whose shares are held by a broker or other financial intermediary may receive dividends in cash by notifying their broker or other financial intermediary of their election.

Fourth Quarter 2018 Financial Results Conference Call

Management will host a conference call to discuss the operating and financial results at 9:00am ET on Friday, March 1, 2019. To participate in the conference call, please dial (877) 810-3368 approximately 10 minutes prior to the call. International callers should dial (914) 495-8561. Please reference conference ID # 6896935.

A live webcast of the conference call will be available at http://investor.fdus.com/events-presentations. Please access the website 15 minutes prior to the start of the call to download and install any necessary audio software.

A telephone replay of the conference call will be available from 12:00pm ET on March 1, 2019 until 11:59pm ET on March 8, 2019 and may be accessed by calling (855) 859-2056 (domestic dial-in) or (404) 537-3406 (international dial-in) and reference conference ID # 6896935. An archived replay of the conference call will also be available in the investor relations section of the Company’s website.

ABOUT FIDUS INVESTMENT CORPORATION

Fidus Investment Corporation provides customized debt and equity financing solutions to lower middle-market companies, which management generally defines as U.S. based companies with revenues between $10 million and $150 million. The Company’s investment objective is to provide attractive risk-adjusted returns by generating both current income from debt investments and capital appreciation from equity related investments. Fidus seeks to partner with business owners, management teams and financial sponsors by providing customized financing for change of ownership transactions, recapitalizations, strategic acquisitions, business expansion and other growth initiatives.

Fidus is an externally managed, closed-end, non-diversified management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940, as amended. In addition, for tax purposes, Fidus has elected to be treated as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Fidus was formed in February 2011 to continue and expand the business of Fidus Mezzanine Capital, L.P., which commenced operations in May 2007 and is licensed by the U.S. Small Business Administration as a small business investment company.

FORWARD-LOOKING STATEMENTS

This press release may contain certain forward-looking statements which are based upon current expectations and are inherently uncertain. Any such statements, other than statements of historical fact, are likely to be affected by other unknowable future events and conditions, including elements of the future that are or are not under the Company’s control, and that the Company may or may not have considered; accordingly, such statements cannot be guarantees or assurances of any aspect of future performance. Actual developments and results are highly likely to vary materially from these estimates and projections of the future as a result of a number of factors, including those described from time to time in the Company’s filings with the Securities and Exchange Commission. Such statements speak only as of the time when made, and are based on information available to the Company as of the date hereof and are qualified in their entirety by this cautionary statement. The Company undertakes no obligation to update any such statement now or in the future, except as required by applicable law.

FIDUS INVESTMENT CORPORATIONConsolidated Statements of Assets and Liabilities(in thousands, except shares and per share data)

December December 31, 31, 2018 2017 --------- --------- ASSETS Investments, at fair value Control investments (cost: $22,697 and $6,294, respectively) $ 18,820 $ 4,723 Affiliate investments (cost: $70,924 and $91,361, respectively) 123,051 123,011 Non-control/non-affiliate investments (cost: $505,129 and $480,139, respectively) 501,111 468,574 - ------- - ------- Total investments, at fair value (cost: $598,750 and $577,794, respectively) 642,982 596,308 Cash and cash equivalents 42,015 41,572 Interest receivable 7,528 7,411 Prepaid expenses and other assets 1,351 972 Total assets $ 693,876 $ 646,263 - ------- - ------- LIABILITIES SBA debentures, net of deferred financing costs $ 186,734 $ 226,660 Public Notes, net of deferred financing costs 48,411 — Borrowings under Credit Facility, net of deferred financing costs 36,358 11,175 Accrued interest and fees payable 2,812 2,712 Management and incentive fees payable – due to affiliate 15,127 11,217 Administration fee payable and other – due to affiliate 474 562 Taxes payable 803 500 Accounts payable and other liabilities 172 164 Total liabilities 290,891 252,990 - ------- - ------- Commitments and contingencies NET ASSETS Common stock, $0.001 par value (100,000,000 shares authorized, 24,463,119 and 24,507,940 shares issued and outstanding at December 31, 2018 and December 31, 2017, respectively) 24 24 Additional paid-in capital 366,278 370,796 Total distributable earnings 36,683 22,453 - ------- - ------- Total net assets 402,985 393,273 Total liabilities and net assets $ 693,876 $ 646,263 - ------- - ------- Net asset value per common share $ 16.47 $ 16.05 - ------- - -------

FIDUS INVESTMENT CORPORATIONConsolidated Statements of Operations(in thousands, except shares and per share data)

Three Months Ended Years Ended December 31, (unaudited) December 31, ------------------------------ ------------------------------ 2018 2017 2018 2017 -------------- -------------- -------------- -------------- Investment Income: Interest income Control investments $ 65 $ 56 $ 246 $ 56 Affiliate investments 1,600 1,954 6,868 9,173 Non-control/non-affiliate investments 13,384 11,936 53,769 45,871 - ---------- - - ---------- - - ---------- - - ---------- - Total interest income 15,049 13,946 60,883 55,100 Payment-in-kind interest income Control investments 175 152 661 152 Affiliate investments 85 444 698 1,834 Non-control/non-affiliate investments 1,791 1,261 5,216 5,053 - ---------- - - ---------- - - ---------- - - ---------- - Total payment-in-kind interest income 2,051 1,857 6,575 7,039 Dividend income Control investments — — — — Affiliate investments 2,501 27 3,454 898 Non-control/non-affiliate investments 519 129 556 964 - ---------- - - ---------- - - ---------- - - ---------- - Total dividend income 3,020 156 4,010 1,862 Fee income Control investments — — — — Affiliate investments 57 152 80 378 Non-control/non-affiliate investments 1,984 916 4,729 4,085 - ---------- - - ---------- - - ---------- - - ---------- - Total fee income 2,041 1,068 4,809 4,463 Interest on idle funds and other income 47 41 148 151 Total investment income 22,208 17,068 76,425 68,615 - ---------- - - ---------- - - ---------- - - ---------- - Expenses: Interest and financing expenses 3,722 2,417 12,956 9,893 Base management fee 2,927 2,586 11,365 9,788 Incentive fee 2,992 3,098 12,351 10,968 Administrative service expenses 350 419 1,462 1,428 Professional fees 325 429 1,343 1,433 Other general and administrative expenses 255 241 1,467 1,208 Total expenses 10,571 9,190 40,944 34,718 - ---------- - - ---------- - - ---------- - - ---------- - Net investment income before income taxes 11,637 7,878 35,481 33,897 Income tax provision (benefit) 692 191 720 220 Net investment income 10,945 7,687 34,761 33,677 - ---------- - - ---------- - - ---------- - - ---------- - Net realized and unrealized gains (losses) on investments: Net realized gains (losses): Control investments — — — — Affiliate investments 9,944 4,481 10,786 4,460 Non-control/non-affiliate investments (5,059 ) 1,074 (21,055 ) 13,444 Net change in unrealized appreciation (depreciation): Control investments (2,212 ) (1,571 ) (2,306 ) (1,571 ) Affiliate investments (7,469 ) 8,088 20,477 13,632 Non-control/non-affiliate investments 5,183 (6,810 ) 7,547 (17,487 ) Income tax (provision) benefit from realized 650 (542 ) (758 ) (2,204 ) gains on investments Net gain (loss) on investments 1,037 4,720 14,691 10,274 - ---------- - - ---------- - - ---------- - - ---------- - Net increase in net assets resulting from $ 11,982 $ 12,407 $ 49,452 $ 43,951 operations - ---------- - - ---------- - - ---------- - - ---------- - Per common share data: Net investment income per share-basic and $ 0.45 $ 0.31 $ 1.42 $ 1.43 diluted - ---------- - - ---------- - - ---------- - - ---------- - Net increase in net assets resulting from $ 0.49 $ 0.51 $ 2.02 $ 1.87 operations per share — basic and diluted - ---------- - - ---------- - - ---------- - - ---------- - Dividends declared per share $ 0.43 $ 0.43 $ 1.60 $ 1.60 - ---------- - - ---------- - - ---------- - - ---------- - Weighted average number of shares outstanding 24,463,119 24,493,535 24,471,730 23,527,188 — basic and diluted - ---------- - - ---------- - - ---------- - - ---------- -

Schedule 1

Supplemental Information Regarding Adjusted Net Investment Income

On a supplemental basis, we provide information relating to adjusted net investment income, which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The management agreement with our advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses for such year, less the aggregate amount of any capital gains incentive fees paid in all prior years. In addition, we accrue, but do not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income is a useful indicator of operations exclusive of any capital gains incentive fee expense or (reversal) attributable to realized and unrealized gains and losses. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. The following table provides a reconciliation of net investment income to adjusted net investment income for the three months and years ended December 31, 2018 and 2017.

($ in thousands) ($ in thousands) Three Months Ended Years Ended December 31, December 31, (unaudited) (unaudited) ------------------- -------------------- 2018 2017 2018 2017 --------- -------- --------- --------- Net investment income $ 10,945 $ 7,687 $ 34,761 $ 33,677 Capital gains incentive fee expense (reversal) 207 944 2,938 2,055 Adjusted net investment income (1) $ 11,152 $ 8,631 $ 37,699 $ 35,732 - ------ - ----- - ------ - ------ (Per share) (Per share) Three Months Ended Years Ended December 31, December 31, (unaudited) (unaudited) ------------------- -------------------- 2018 2017 2018 2017 --------- -------- --------- --------- Net investment income $ 0.45 $ 0.31 $ 1.42 $ 1.43 Capital gains incentive fee expense (reversal) 0.01 0.04 0.12 0.09 Adjusted net investment income (1) $ 0.46 $ 0.35 $ 1.54 $ 1.52 - ------ - ----- - ------ - ------

(1) Adjusted net investment income per share amounts are calculated as adjusted net investment income dividend by weighted average shares outstanding for the period. Due to rounding, the sum of net investment income per share and capital gains incentive fee expense (reversal) amounts may not equal the adjusted net investment income per share amount presented here.

Company Contact: Investor Relations Contact: Shelby E. Sherard Jody Burfening Chief Financial Officer LHA Fidus Investment Corporation (212) 838-3777 (847) 859-3940 jburfening@lhai.com