Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q3 2024 Earnings Presentation
35 slides from Golub Capital Bdc's earnings presentation, Aug 6, 2024
Slide 1: Golub Capital BDC, Inc. Earnings Presentation, Quarter Ended June 30, 2024
GOLUB CAPITAL BDC, INC. EARNINGS PRESENTATION QUARTER ENDED JUNE 30, 2024
Slide 2: Disclaimer
Disclaimer Some of the statements in this presentation constitute forward-looking statements, Such forward-looking statements may include statements preceded by, followed by which relate to future events or our future performance or financial condition. The or that otherwise include the words “may,”
Slide 3: Summary of Financial Results
Summary of Financial Results 01
Slide 4: FY 2024 Q3 Earnings Review (Quarter Ended 6/30/24)
FY 2024 Q3 Earnings Review (Quarter Ended 6/30/24) 1,2 ◦ Adjusted net investment income per share of $0.48, or an Adjusted NII ROE of 12.7% Earnings Summary ▪ Decrease of $0.03 from $0.51 per share for the quarter ended March 31, 2024 ▪ Increase of $0.04 from $0.44 per share for the quarter ended Ju
Slide 5: Summary of Financial Results vs. Prior Quarter
Summary of Financial Results vs. Prior Quarter Quarter Ended Pre-Acquisition Post-Acquisition March 31, 2024 June 30, 2024 Net Investment Income Per Share Net investment income per share $0.51 $0.46 1 Amortization of purchase premium per share 0.00* 0.02 2 Adjusted net investment income per share A
Slide 6: FQ3 2024 Net Investment Income Impacted by Non-Recurring/Non-Cash Items
FQ3 2024 Net Investment Income Impacted by Non-Recurring/Non-Cash Items ▪ Several non-recurring items impacted GBDC’s profitability in the quarter ended June 30, 2024. We believe isolating the impact of these one-time items provides clarity into GBDC’s normalized financial results for the quarter en
Slide 7: GBDC Performance Drivers
GBDC Performance Drivers O 2 GOLUB CAPITAL
Slide 8: Share Accretion from GBDC and GBDC 3 Merger Drove NAV Per Share Increase
Share Accretion as a Result of the GBDC and GBDC 3 Merger Drove a NAV Per Share Increase from March 31, 2024 NAV Per Share Bridge $0.46 $0.02 ($0.05) ($0.06) $0.65 $15.32 $15.12 ($0.39) $0.03 ($0.18) ($0.02) 1 Adjusted NII: $0.48 Total Distributions: ($0.50) ($0.26) GBDC 3 Merger- Adjusted Net Reali
Slide 9: GBDC 3 Acquisition: Accounting Treatment of the Purchase Premium
GBDC 3 Acquisition: Accounting Treatment of the Purchase Premium Acquisition of Determine GBDC’s Recognize One- GBDC 3 Assets at Cost Basis in Time Write-Down of Premium Acquired Assets Purchase Premium One - Time Purchase Unrealized Loss Premium GBDC Cost Basis on Purchase GBDC Cost Premium Basis =
Slide 10: GBDC 3 Acquisition: Illustrative Income Statement Impact and Supplemental Financial Measures
GBDC 3 Acquisition: Illustrative Income Statement Impact and Supplemental Financial Measures As a supplement to U.S. generally accepted accounting principles (“GAAP”) financial measures, the Company is providing the following non-GAAP financial measures: A Expected to be equal and A + B offsetting a
Slide 11: Summary of Financial Results for the Quarter Ended June 30, 2024
Summary of Financial Results for the Quarter Ended June 30, 2024 03
Slide 12: Summary of Quarterly Results
Summary of Quarterly Results Quarter Ended Pre-Acquisition Post-Acquisition June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 Net Investment Income Per Share Net investment income per share $0.43 $0.49 $0.49 $0.51 $0.46 1 Amortization of purchase premium per share 0.01
Slide 13: Portfolio Highlights - New Originations
Portfolio Highlights - New Originations – Total investments at fair value increased by approximately 45.8%, or $2,472.8 million, during the three months ended June 30, 2024. – Including $2.6 billion of investments acquired from GBDC 3, total investments in portfolio companies at fair value was $7.9
Slide 14: Portfolio Highlights – Investment Mix
Portfolio Highlights – Investment Mix – The portfolio continues to be focused on first lien, senior secured loans to what we believe to be healthy, resilient middle market companies backed by strong, partnership-oriented private equity sponsors. Historical Investment Portfolio ($000) $8,000,000 $7,8
Slide 15: Portfolio Highlights – Portfolio Diversity as of June 30, 2024
Portfolio Highlights – Portfolio Diversity as of June 30, 2024 Investment Portfolio $7,868MM | 380 Portfolio Companies | Average Size 0.3% Portfolio Composition by Seniority Diversification by Portfolio Company Top 10 Portfolio Companies 0%* 7% 14% 7% First Lien Traditional Senior First Lien Top 25
Slide 16: Portfolio Highlights – Economic Analysis
Portfolio Highlights – Economic Analysis: 14.0% 12.6% 12.8% 13.0% 12.5% 12.3% 11.9% 12.0% 11.5% 12.4% 12.2% 11.9% 12.0% 11.0% 10.5% 11.6% 11.1% 10.0% 9.2% 10.0% 9.0% 8.0% 7.3% 7.2% 8.4% 7.0% 6.7% 6.8% 7.0% 6.5% 6.1% 5.8% 6.0% 5.5% 5.4% 5.4% 5.3% 5.8% 4.9% 5.0% 4.6% 5.2% 5.3% 5.3% 5.3% 3.7% 5.1% 4.0%
Slide 17: Portfolio Highlights - Credit Quality
Portfolio Highlights - Credit Quality – Fundamental credit quality as of June 30, 2024 remained strong with over 89% of the investments in our portfolio at fair value having an Internal 1 Performance Rating of 4 or higher as of June 30, 2024. – As of June 30, 2024, non-accrual investments remained l
Slide 18: Portfolio Highlights – Portfolio Ratings
Portfolio Highlights – Portfolio Ratings Internal Performance Ratings (% of Portfolio at Fair Value) At Fiscal Year End At Quarter End December 31, Rating 2019 2020 2021 2022 2023 March 31, 2024 June 30, 2024 2023 5 2.7% 6.1% 10.2% 4.6% 0.9% 2.6% 2.3% 1.6% 4 88.2% 72.8% 80.7% 86.8% 84.2% 83.3% 84.9%
Slide 19: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition As of Pre-Acquisition Post-Acquisition June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 (Dollar amounts in 000s, except share and per share data) (unaudited) (audited) (unaudited) (unaudited) (unaudited) Assets Investments, a
Slide 20: Quarterly Operating Results
Quarterly Operating Results Quarter Ended Pre-Acquisition Post-Acquisition June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment Income Interest
Slide 21: Financial Performance Highlights
Financial Performance Highlights Quarterly Return on Equity and Quarterly Distributions (Last 5 Years) Regular Distribution Special Distribution Supplemental Distribution Quarterly Return on Equity* 6.7% 4.0% 3.9% 3.8% 4.0% 3.7% 3.3% 2.8% 2.6% 2.9% 2.9% 2.2% 2.1% 2.4% 2.4% 2.0%^ 0.6% 0.3% 1.0% (10.5
Slide 22: Long History of Strong Shareholder Returns
Long History of Strong Shareholder Returns As of June 30, 2024 $34.36 1 Investors in GBDC’s 2010 IPO have achieved a 9.6% IRR on NAV $0.24 $0.63 $18.17 $14.63 $15.32 Jun-12 Mar-17 Dec-21 Mar-12 Dec-16 Dec-11 Sep-21 Sep-16 Jun-21 Sep-11 Jun-16 Mar-21 Jun-11 Mar-16 Dec-20 Mar-11 Dec-15 Dec-10 Sep-20 S
Slide 23: Liquidity and Investment Capacity
Liquidity and Investment Capacity Cash and Cash Equivalents – Unrestricted cash and cash equivalents and foreign currencies totaled $147.5 million as of June 30, 2024. – Restricted cash and cash equivalents totaled $317.2 million as of June 30, 2024. Restricted cash is held in our securitization veh
Slide 24: GBDC Has a Stable, Highly Flexible and Low-Cost Funding Structure
GBDC Has a Stable, Highly Flexible and Low-Cost Funding Structure GBDC Debt Capital Structure* Undrawn 1 Funding Source Debt Commitment Outstanding Par Commitment Reinvestment Period Stated Maturity Interest Rate Securitizations: 2018 Debt Securitization $307,994 $307,994 $— January 20, 2023 January
Slide 25: Common Stock and Distribution Information
Common Stock and Distribution Information 1 Common Stock Price Data Fiscal Year Ending September 30, 2023 High Low End of Period First Quarter $14.25 $12.46 $13.16 Second Quarter $14.09 $12.38 $13.56 Third Quarter $13.55 $13.02 $13.50 Fourth Quarter $15.02 $13.37 $14.67 Fiscal Year Ending September
Slide 26: Quarterly Variable Supplemental Distribution Framework
Quarterly Variable Supplemental Distribution Framework FY 2024 Q3 Quarterly Variable Supplemental Distribution Quarter Ended Quarter Ended March 31, 2024 June 30, 2024 Quarterly Variable Supplemental Distribution Adjusted net investment income per share $0.51 $0.48 (-) Quarterly distribution paid (0
Slide 27: Appendix: Endnotes
Appendix: Endnotes A GOLUB CAPITAL
Slide 28: Endnotes - FY 2024 Q3 Earnings Review (Quarter Ended 6/30/24)
Endnotes - FY 2024 Q3 Earnings Review (Quarter Ended 6/30/24) 1. As a supplement to GAAP financial measures, the Company is providing additional non-GAAP measures. See the slide titled “Endnotes – Non-GAAP Financial Measures” at the end of this presentation for further description on the non-GAAP fi
Slide 29: Endnotes - NAV Roll
Endnotes - NAV Roll 1. As a supplement to GAAP financial measures, the Company is providing additional non-GAAP measures. See the slide titled “Endnotes - Non-GAAP Financial Measures” at the end of this presentation for further description on the non-GAAP financial measures. 2. Refer to slide 27 for
Slide 30: Endnotes - Summary of Financial Results vs. Prior Quarter
Endnotes - Summary of Financial Results vs. Prior Quarter 1. On September 16, 2019 and June 3, 2024, Golub Capital BDC, Inc. (“we”, “us”, “our”, the “Company” or “GBDC”) completed its acquisitions of Golub Capital Investment Corporation (“GCIC”) and Golub Capital BDC 3, Inc. (“GBDC 3”), respectively
Slide 31: Endnotes - Non-GAAP Financial Measures
Endnotes - Non-GAAP Financial Measures 1. On September 16, 2019 and June 3, 2024, the Company completed its acquisitions of GCIC and GBDC 3, respectively. Each acquisition was accounted for under the asset acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”)
Slide 32: Endnotes - Quarterly Operating Results
Endnotes - Quarterly Operating Results 1. For the quarters ended March 31, 2024 and June 30, 2024, GC Advisors unilaterally agreed to irrevocably waive $5.2 million and $14.4 million of income incentive fees, respectively, calculated under the Investment Advisory Agreement. 2. As a supplement to GAA
Slide 33: Endnotes - Portfolio Highlights - New Originations
Endnotes - Portfolio Highlights - New Originations 1. Net funds growth includes the impact of new investments and exits of investments as noted in the table above, as well as other variables such as net funding on revolvers, net change in unamortized fees, net change in unrealized appreciation (depr
Slide 34: Endnotes - Portfolio Highlights Economic Analysis
Endnotes - Portfolio Highlights Economic Analysis 1. The income yield presented for the quarter ended September 30, 2022 excludes the one-time recognition of $2.0 million of previously deferred interest income resulting from the repayment and refinancing of former non-accrual loans, which are includ
Slide 35: Endnotes - Debt Capital Structure
Endnotes - Debt Capital Structure 1. Interest rate for securitizations represents the weighted average spread over 3-month Secured Overnight Financing Rate (“SOFR”) for the various tranches of issued notes, excluding tranches retained by the Company. SOFR borrowings under the securitizations are sub