Rand Capital Corporation · NASDAQ:RAND
Rand Capital — Q1 2025 Earnings Presentation
17 slides from Rand Capital's earnings presentation, May 5, 2025
Slide 1: First Quarter 2025 Financial Results
FIRST QUARTER 2025 FINANCIAL RESULTS May 5, 2025 Daniel P. Penberthy President & CEO Margaret W. Brechtel EVP & CFO © 2025 Rand Capital Corporation Nasdaq: RAND
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than historical facts, including but not limited t
Slide 3: Q1 Results: Resilient Performance, Stronger Balance Sheet, and Strategic Positioning for Future Growth
Q1 RESULTS: RESILIENT PERFORMANCE, STRONGER BALANCE SHEET, AND STRATEGIC POSITIONING FOR FUTURE GROWTH (Results compared with the prior-year period unless otherwise noted) Financial Performance • Net investment income grew 45% YoY to $1.2 million, or $0.42 per share, despite a modest decline in tota
Slide 4: Delivering Cash Dividends
DELIVERING CASH DIVIDENDS (Results compared with the prior-year period unless otherwise noted) March 3, 2025: declared quarterly cash dividend of $0.29 per share • Paid during the first quarter to shareholders of record as of March 14, 2025 • Total dollar amount of the distribution increased due to
Slide 5: Portfolio Composition and Yield Focus
PORTFOLIO COMPOSITION AND YIELD FOCUS Fair Value Portfolio Mix ($ in millions) $70.8 $62.2 Portfolio fair value decrease primarily reflects repayment of three $17.7 debt instruments $17.3 $53.1 $44.9 Mix at quarter-end, based on fair value: 72% Fixed-rate debt investments YE 2024 Q1 2025 28% Equity
Slide 6: Q1 2025 Portfolio Activity
Q1 2025 PORTFOLIO ACTIVITY Investments Blind and shade manufacturing Funded follow-on debt investment of $375,000 Total debt and equity investments at a fair value of $2.0 million Exits / Repayments Exited investment, receiving full repayment Exited investment, receiving full repayment Exited invest
Slide 7: Portfolio Industry Classification
PORTFOLIO INDUSTRY CLASSIFICATION March 31, 2025 December 31, 2024 Health and Software Health & Wellness Software Wellness 5% 4% 4% Automotive 4% Automotive, 4% 5% Manufacturing Distribution 8% Professional Services 10% Professional Services Distribution 45% Manufacturing 48% 12% 13% Consumer Produc
Slide 8: Top Five Portfolio Investments
TOP FIVE PORTFOLIO INVESTMENTS Investments at Year % of Total Company Industry Investment Type ($ in millions) Fair Value Acquired Portfolio Professional Services – Cellular Equity – Tilson $11.5 2015 info systems, construction, 19% mgmt. paying dividend Term note Consumer Product – Billiard Seybert
Slide 9: Financial Review
FINANCIAL REVIEW © 2025 Rand Capital Corporation Nasdaq: RAND
Slide 10: First Quarter Financial Summary
FIRST QUARTER FINANCIAL SUMMARY ($ in thousands, except per share data) Q1 2025 Q1 2024 Total investment income down slightly Total investment income $ 2,008 $ 2,067 • Reflects 8% reduction in interest from portfolio companies and lower dividend income, partially Total expenses 791 1,227 offset by a
Slide 11: Net Asset Value Change: Q1 2025
NET ASSET VALUE CHANGE: Q1 2025 ($ in thousands) $65,333 $1,218 $925 $65,311 ($1,302) ($863) Net assets at 12/31/2024 Net investment income Net realized gain on sales Net change in unrealized Cash dividend Net assets at 3/31/2025 and dispositions of appreciation/depreciation investments on investmen
Slide 12: Balance Sheet, Liquidity and Capital Allocation
BALANCE SHEET, LIQUIDITY AND CAPITAL ALLOCATION Net Asset Value Composition At March 31, 2025 Total assets of $67.8 million was down 6% from Per Share Assets and Liabilities year-end 2024 $4.9 million in cash, up from $835,000 at $1.66 $4.9 million consolidated cash year-end 2024 Repaid revolver deb
Slide 13: Executing With Discipline: Building Long-Term Shareholder Value
EXECUTING WITH DISCIPLINE: BUILDING LONG-TERM SHAREHOLDER VALUE Objectives for 2025 and Beyond Strategic Growth Amid a Cautious Environment • Well-positioned to execute on long-term strategy, supported by a resilient investment model • Slowdown in new investment opportunities, driven by macroeconomi
Slide 14: Supplemental Information
SUPPLEMENTAL INFORMATION © 2025 Rand Capital Corporation Nasdaq: RAND
Slide 15: Adjusted Expenses (Non-GAAP)
ADJUSTED EXPENSES (N -GAAP*) ON Three months Three months ended ended March 31, 2025 March 31, 2024 Total expenses $ 791,065 $ 1,226,856 Exclude (benefits)/expenses for capital gains incentive fees (75,000) 112,300 Adjusted total expenses $ 866,065 $ 1,114,556 *In addition to reporting total expense
Slide 16: Adjusted Net Investment Income Per Share (Non-GAAP)
ADJUSTED NET INVESTMENT INCOME PER SHARE (N -GAAP*) ON Three months Three months ended ended March 31, 2025 March 31, 2024 Net investment income per share $ 0.42 $ 0.33 Exclude (benefits)/expenses for capital gains incentive fees per share (0.02) 0.04 Adjusted net investment income per share $ 0.40
Slide 17: First Quarter 2025 Financial Results
FIRST QUARTER 2025 FINANCIAL RESULTS May 5, 2025 Daniel P. Penberthy President & CEO Margaret W. Brechtel EVP & CFO © 2025 Rand Capital Corporation Nasdaq: RAND