Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q3 FY2022 Earnings Presentation
25 slides from Golub Capital Bdc's earnings presentation, Aug 9, 2022
Slide 1: Golub Capital BDC, Inc. Investor Presentation Quarter Ended June 30, 2022
Confidential | for discussion purposes only GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED JUNE 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 March 31, 2022 June 30, 2022 Net Investment Income Per Share Net investment income per share $0.25 $0.32 Amortization of purchase premium per share1 0.02 0.02 Adjusted net investment income per share2 $0.27 $0.34 Accrual (reversal) for capital gain incentive fee per share 0.03 (0.03)
Slide 5: GBDC Performance Drivers
GBDC Performance Drivers 0 Wi GOLUB CAPITAL SS
Slide 6: Drivers of GBDC's FQ3 2022 Earnings
6 Drivers of GBDC’s FQ3 2022 Earnings Key Themes from Quarter Ended June 30, 2022 Key GBDC-Specific Takeaways ■ U.S. equity and credit markets fell meaningfully over the quarter, with the S&P 500 falling by ~16% and the Bloomberg U.S. Aggregate Bond Index falling by ~5% ■ The U.S. economy demonstrat
Slide 7: NAV Per Share Bridge
7 $15.35 $0.32 $0.02 ($0.30) $0.01 ($0.24) ($0.02) $15.14 March 31, 2022 NAV Net Investment Income Reversal of Amortization of Purchase Premium Dividends Paid During June 30, 2022 Quarter Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Investments Net
Slide 8: Summary of Financial Results for the Quarter Ended
Summary of Financial Results for the Quarter Ended June 30, 2022 03
Slide 9: Summary of Quarterly Results
9 Summary of Quarterly Results Quarter Ended June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 Net Investment Income Per Share Net investment income per share $0.25 $0.27 $0.27 $0.25 $0.32 Amortization of purchase premium per share1 0.04 0.03 0.04 0.02 0.02 Adjusted net
Slide 10: Portfolio Highlights - New Originations
10 Portfolio Highlights - New Originations Quarter Ended June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 Select Portfolio Funds Roll Data (in millions) New Investment Commitments $614.7 $971.4 $867.7 $323.3 $449.6 Exits and Sales of Investments 583.5 383.8 661.8 122.2
Slide 11: Portfolio Highlights – Investment Mix
11 $4,439,547 $4,894,886 $5,146,766 $5,426,159 $5,613,550 June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 June 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 – Invest
Slide 12: Portfolio Highlights – Portfolio Diversity
12 Software 24% Healthcare Providers and Services 8% Specialty Retail 7% Insurance 5% Automobiles 5% IT Services 5% Diversified Consumer Services 4% Health Care Technology 4% Commercial Services and Supplies 3% Portfolio Highlights – Portfolio Diversity as of June 30, 2022 Investment Portfolio $5,61
Slide 13: Investment Income Yield 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 - Credit Quality
14 Portfolio Highlights - Credit Quality Quarter Ended June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 Non-Accrual - Debt Investments Non-accrual investments at amortized cost (000s) $62,198 $62,619 $60,984 $76,284 $80,791 Non-accrual investments / total debt investme
Slide 15: Portfolio Highlights – Portfolio Ratings
15 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
Slide 16: Quarterly Statements of Financial Condition
16 Quarterly Statements of Financial Condition As of (Dollar amounts in 000s, except share and per share data) June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 (unaudited) (audited) (unaudited) (unaudited) (unaudited) Assets Investments, at fair value $4,439,547 $4,894
Slide 17: Quarterly Operating Results
17 Quarterly Operating Results Quarter Ended (Dollar amounts in 000s, except share and per share data) June 30, 2021 September 30, 2021 December 31, 2021 March 31, 2022 June 30, 2022 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment Income Interest income $81,694 $83,600 $92,336
Slide 18: Financial Performance Highlights
18 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 19: Long History of Strong Shareholder Returns
19 Long History of Strong Shareholder Returns 1. Internal rate of return (“IRR”) on NAV is calculated using beginning of period NAV, distributions paid during the period, an incremental investment of $2.29 per share, or the GBDC Rights Offering subscription price of $9.17 per share divided by four (
Slide 20: Liquidity and Investment Capacity
20 Liquidity and Investment Capacity Cash and Cash Equivalents – Unrestricted cash and cash equivalents and foreign currencies totaled $85.2 million as of June 30, 2022. – Restricted cash and cash equivalents totaled $36.0 million as of June 30, 2022. Restricted cash is held in our securitization ve
Slide 21: Stable, Highly Flexible and Low-Cost Funding Structure
21 GBDC Has a Stable, Highly Flexible and Low-Cost Funding Structure 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 January
Slide 22: Common Stock and Distribution Information
22 Common Stock and Distribution Information Date Declared Record Date Payment Date Amount Per Share Frequency Total Amount (in 000s) August 4, 2020 September 8, 2020 September 29, 2020 $0.29 Quarterly $48,505 November 20, 2020 December 11, 2020 December 30, 2020 $0.29 Quarterly $48,505 February 5,
Slide 23: Appendix: Endnotes
Appendix: Endnotes A GOLUB CAPITAL SS
Slide 24: Endnotes - Non-GAAP Financial Measures
24 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 25: Endnotes - Drivers of GBDC's FQ3 2022 Earnings
25 Endnotes - Drivers of GBDC’s FQ3 2022 Earnings 1. Please see the June 30, 2022 Golub Capital Middle Market Report (which is available on Golub Capital’s website at www.golubcapital.com) for additional details. The Golub Capital Middle Market Report for Q2 2022 compared the April 2022 and May 2022