Gladstone Capital Corporation · NASDAQ:GLAD
Gladstone Capital — Q4 2024 Earnings Presentation
16 slides from Gladstone Capital's earnings presentation, Nov 14, 2024
Slide 1: Investor Presentation for the Quarter Ended September 30, 2024
Investor Presentation for the Quarter Ended September 30, 2024 FINANCING FOR LOWER MIDDLE MARKET COMPANIES
Slide 2: Legal Disclaimer
Legal Disclaimer Forward-Looking Statements: This presentation may include “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. These forward-looking statements may include commen
Slide 3: Gladstone Capital Quarterly Highlights
Gladstone Capital Quarterly Highlights (as of 9/30/2024) Net Investment Income Per Share: $0.50 Financial Net Asset Value Per Share: $21.18 (+$1.00 over prior quarter-end) Results LTM ROE: 21.5% per GAAP and 10.5% on net investment income Monthly dividends per share: $0.165 or annualized div
Slide 4: Investment Highlights
Gladstone Capital Investment Highlights Lending focused on growth-oriented lower middle market businesses Experienced, long-tenured leadership and investment team High-quality sourcing and execution model with high degree of selectivity Diversified, conservative portfolio with focus on senior secure
Slide 5: Overview
Gladstone Capital Overview Background: Founded in 2001 with the purpose of making loans to lower middle market U.S. businesses, Gladstone Capital’s investment team is exclusively focused on this segment of the private capital market Gladstone Capital is funded through publicly traded common stoc
Slide 6: Attractive Lower Middle Market Dynamics
Attractive Lower Middle Market Dynamics Why focus on lower middle market (“LMM”) companies Greater industry diversity and more consistent flow of growth-oriented investment opportunities LMM companies typically sell for lower cash flow multiples, which translates into reduced financial leverage,
Slide 7: 9/30/2024 Quarter Summary
Gladstone Capital 9/30/2024 Quarter Summary Originations/Portfolio Activity: New investments totaled $28.5 million during the quarter, comprised of add-on investments in support of existing portfolio companies. Refinancings and amortization payments were $12.6 million, resulting in net originati
Slide 8: Origination Activity
Gladstone Capital Origination Activity Originations of $28.5 million exceeded repayments & amortization resulting in $16 million of net originations. Gladstone Capital Quarterly Net Investment 9/30/2022 12/31/2022 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 New Investmen
Slide 9: Portfolio Trends
Gladstone Capital Portfolio Trends While new deal buyout activity has been volatile in the past several quarters, we have absorbed significant refinancings of larger and mature credits while seeding a new vintage of growth oriented LMM platform investments to maintain our AUM and portfolio diversi
Slide 10: Portfolio Metrics
Portfolio Metrics Consistent with GLAD’s LMM focus, the core loan portfolio continues to represent companies with an average EBITDA of approx. $11.7 million and an average leverage attachment point of 4.25x EBITDA *For the purposes of this presentation, certain investments have been excluded from th
Slide 11: Industry and Deal Sources Are Diversified
Industry and Deal Sources Are Diversified Portfolio Diversification Across 13 Deal Source Composition - Industries - At 9/30/2024 Fair Value At 9/30/2024 Fair Value Page 11
Slide 12: Portfolio Composition
Portfolio Composition Portfolio Characteristics As Of: December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Total Portfolio - FV $ 749,985 $ 791,588 $ 757,745 $ 796,260 # of Portfolio Companies 51 51 51 49 Average Investment Size - FV $ 14,706 $ 15,521 $ 14,858 $ 16,250 Top 5 Investment
Slide 13: Representative Portfolio Investments
Representative Portfolio Investments ANTENNA RESEARCH ASSOCIATES, INC. designs HH-INSPIRE ACQUISITION, INC. is a plastic and manufactures radio frequency based surgery and aesthetic center offering a antenna sub-systems and integrated antenna comprehensive range of cosmetic surgeries and systems for
Slide 14: Quarterly Financial Summary
Quarterly Financial Summary Three Mont Three Months Ended In Thousands, except per share data September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Income: Interest Income $ 23,269 $ 22,996 $ 23,715 $ 23,199 $ 23,384 Other Investment Income $ 487 $ 225 $ 282 $ 2,490 $
Slide 15: 9/30/2024 Quarter Summary
Gladstone Capital 9/30/2024 Quarter Summary Capital Base and Liquidity Total Assets increased to $812 million as of September 30, 2024, consisting of $796 million in investments at fair value and $16 million in cash and other assets. We ended the quarter with a conservative leverage position of
Slide 16: Corporate Data
Corporate Data Executive Officers Research Coverage Websites David Gladstone B. Riley Securities Gladstone Capital: Chairman & CEO Bryce Rowe www.gladstonecapital.com Terry Lee Brubaker Janney Montgomery Scott LLC Investment Adviser: COO John Rowan www.gladstonemanagement.com Bob Marcotte Jefferies