Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q4 FY2022 Earnings Presentation
26 slides from Golub Capital Bdc's earnings presentation, Nov 21, 2022
Slide 1: Golub Capital BDC, Inc. Earnings Presentation Quarter Ended September 30, 2022
Confidential | for discussion purposes only GOLUB CAPITAL BDC, INC. EARNINGS PRESENTATION QUARTER ENDED SEPTEMBER 30, 2022
Slide 2: Forward-looking statements
2 Such forward-looking statements may include statements preceded by, followed by or that otherwise include the words “may,” “might,” “will,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “potential,” “plan” or similar words. We have based the
Slide 3: Summary of Financial Results
Summary of Financial Results 01
Slide 4: Summary of Financial Results vs. Prior Quarter
4 Quarter Ended June 30, 2022 September 30, 2022 Net Investment Income Per Share Net investment income per share $0.32 $0.32 Amortization of purchase premium per share1 0.02 0.01 Adjusted net investment income per share2 $0.34 $0.33 Accrual (reversal) for capital gain incentive fee per share (0.03)
Slide 5: GBDC Performance Drivers
GBDC Performance Drivers 0 Wi GOLUB CAPITAL a
Slide 6: Drivers of GBDC's FQ4 2022 Earnings
6 Drivers of GBDC’s FQ4 2022 Earnings Key Themes from Quarter Ended September 30, 2022 Key GBDC-Specific Takeaways ■ U.S. equity and fixed income markets saw double digit losses year-to-date1 ■ Golub Capital’s middle market borrowers experienced a modest decline in profits and solid growth in revenu
Slide 7: NAV Per Share Bridge
7 $15.14 $0.32 $0.01 ($0.30) $0.01 ($0.28) ($0.01) $14.89 June 30, 2022 NAV Net Investment Income Reversal of Amortization of Purchase Premium Dividends Paid During September 30, 2022 Quarter Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments
Slide 8: Summary of Financial Results for the Quarter Ended
Summary of Financial Results for the Quarter Ended September 30, 2022 03
Slide 9: Summary of Quarterly Results
9 Summary of Quarterly Results Quarter Ended September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 Net Investment Income Per Share Net investment income per share $0.27 $0.27 $0.25 $0.32 $0.32 Amortization of purchase premium per share1 0.03 0.04 0.02 0.02 0.01 Adjuste
Slide 10: Portfolio Highlights - New Originations
10 Portfolio Highlights - New Originations Quarter Ended September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 Select Portfolio Funds Roll Data (in millions) New Investment Commitments $971.4 $867.7 $323.3 $449.6 $176.7 Exits and Sales of Investments 383.8 661.8 122.2
Slide 11: Portfolio Highlights – Investment Mix
11 $4,894,886 $5,146,766 $5,426,159 $5,613,550 $5,446,356 September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000 $6,000,000 Portfolio Highlights – I
Slide 12: Portfolio Highlights – Portfolio Diversity
12 Software 26% Healthcare Providers and Services 8% Specialty Retail 7% Automobiles 5% IT Services 5%Diversified Consumer Services 4% Insurance 4% Health Care Technology 4% Portfolio Highlights – Portfolio Diversity as of September 30, 2022 Investment Portfolio $5,446mm | 331 Investments | Average
Slide 13: Portfolio Highlights - Yield, Cost of Debt and Net Investment Spread
13 1. The weighted average cost of debt and weighted average net investment spread presented for the quarter ended September 30, 2021 exclude $3.6 million of accelerated capitalized debt issuance costs that resulted from the August 26, 2021 early redemption of notes issued by the 2020 Debt Securitiz
Slide 14: Portfolio Highlights - Positioned For Higher Interest Rates
14 Potential for meaningfully higher quarterly adjusted net investment income (“NII”) as loans continue to reset to higher base rates* Portfolio Highlights - Positioned For Higher Interest Rates: * Reflects illustrative pro forma adjusted NII per share for GBDC if the ending 3-Month LIBOR rate of 3.
Slide 15: Portfolio Highlights - Credit Quality
15 Portfolio Highlights - Credit Quality Quarter Ended September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 Non-Accrual - Debt Investments Non-accrual investments at amortized cost (000s) $62,619 $60,984 $76,284 $80,791 $96,956 Non-accrual investments / total debt inv
Slide 16: Portfolio Highlights – Portfolio Ratings
Portfolio Highlights – Portfolio Ratings * Represents an amount less than 0.1%. Internal Performance Ratings (% of Portfolio at Fair Value) Internal Performance Rating Definitions At Fiscal Year End At Quarter End Rating 2016 2017 2018 2019 2020 2021 December 31, 2021 March 31, 2022 June 30, 2022 Se
Slide 17: Quarterly Statements of Financial Condition
17 Quarterly Statements of Financial Condition As of (Dollar amounts in 000s, except share and per share data) September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 (audited) (unaudited) (unaudited) (unaudited) (audited) Assets Investments, at fair value $4,894,886 $5,
Slide 18: Quarterly Operating Results
18 Quarterly Operating Results Quarter Ended (Dollar amounts in 000s, except share and per share data) September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 September 30, 2022 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment Income Interest income $83,600 $92,336 $8
Slide 19: Financial Performance Highlights
19 Financial Performance Highlights * The quarterly return on equity for the periods up to and including the quarter ended June 30, 2019 are calculated as (a) the net increase in net assets resulting from operations (i.e., net income) for the period presented divided by (b) the daily average of tota
Slide 20: Long History of Strong Shareholder Returns
20 Long History of Strong Shareholder Returns 1. The 9.3% internal rate of return (“IRR”) on NAV is calculated using beginning of period NAV, distributions paid during the period and ending period NAV. Period beginning June 30, 2010 and ending September 30, 2022. GBDC made its initial public offerin
Slide 21: Liquidity and Investment Capacity
21 Liquidity and Investment Capacity Cash and Cash Equivalents – Unrestricted cash and cash equivalents and foreign currencies totaled $124.1 million as of September 30, 2022. – Restricted cash and cash equivalents totaled $56.4 million as of September 30, 2022. Restricted cash is held in our securi
Slide 22: GBDC Has a Stable, Highly Flexible and Low-Cost Funding Structure
22 GBDC Has a Stable, Highly Flexible and Low-Cost Funding Structure GBDC Debt Capital Structure* Funding Source Debt Commitment Outstanding Par Undrawn Commitment Reinvestment Period Stated Maturity Interest Rate1 Securitizations: 2018 Debt Securitization $408,200 $408,200 $— January 20, 2023 Janua
Slide 23: Common Stock and Distribution Information
23 Common Stock and Distribution Information Date Declared Record Date Payment Date Amount Per Share Frequency Total Amount (in 000s) November 20, 2020 December 11, 2020 December 30, 2020 $0.29 Quarterly $48,505 February 5, 2021 March 5, 2021 March 30, 2021 $0.29 Quarterly $48,505 May 7, 2021 June 1
Slide 24: Appendix: Endnotes
Appendix: Endnotes A GOLUB CAPITAL
Slide 25: Endnotes - Non-GAAP Financial Measures
25 Endnotes - Non-GAAP Financial Measures 1. On September 16, 2019, the Company completed its acquisition of GCIC. The merger was accounted for under the asset acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”) 805-50, Business Combinations — Related Issues
Slide 26: Endnotes - Drivers of GBDC's FQ4 2022 Earnings
26 Endnotes - Drivers of GBDC’s FQ4 2022 Earnings 1. Year-to-date as of September 30, the S&P 500 returned -23.9% and the Bloomberg U.S. Aggregate Bond Index returned -14.6%. 2. Please see the September 30, 2022 Golub Capital Middle Market Report (which is available on Golub Capital’s website at www