Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q1 2024 Earnings Presentation
28 slides from Golub Capital Bdc's earnings presentation, Feb 6, 2024
Slide 1: Golub Capital BDC Earnings Presentation, Quarter Ended December 31, 2023
GOLUB CAPITAL BDC, INC. EARNINGS PRESENTATION QUARTER ENDED DECEMBER 31, 2023
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 Q1 Earnings Review (Quarter Ended 12/31/23)
FY 2024 Q1 Earnings Review (Quarter Ended 12/31/23) 1,2 ◦ Adjusted net investment income per share of $0.50, or an 13.3% NII ROE Earnings Summary ▪ Consistent with $0.50 per share for the quarter ended September 30, 2023 ▪ Increase of $0.17 from $0.33 per share for the quarter ended December 31, 202
Slide 5: Immediate NII Accretion from Fee Structure Reduction
Immediate NII Accretion from Fee Structure Reduction • We believe the incentive fee reduction from 20.0% to 15.0% results in a pro forma increase in adjusted net investment income of between $0.03 - $0.04 per share 1 quarterly, or ~$0.13 per share annually 2 • Based on GBDC’s FY 2024 Q1 results, the
Slide 6: Summary of Financial Results vs. Prior Quarter
Summary of Financial Results vs. Prior Quarter Quarter Ended September 30, 2023 December 31, 2023 Net Investment Income Per Share Net investment income per share $0.49 $0.49 1 Amortization of purchase premium per share 0.01 0.01 2 Adjusted net investment income per share A $0.50 $0.50 Accrual (rever
Slide 7: GBDC Performance Drivers
GBDC Performance Drivers O 2 GOLUB CAPITAL
Slide 8: NII Drove a NAV Per Share Increase from September 30
NII Drove a NAV Per Share Increase from September 30, 2023 NAV Per Share Bridge $0.49 $0.01 ($0.07) $0.01 ($0.37) ($0.05) $15.02 ($0.01) $15.03 1 Adjusted NII: $0.50 Total Distributions: ($0.44) Adjusted Net Realized & Unrealized Loss: ($0.05) September 30, Net Investment Reversal of FY 2023 Q4 Quar
Slide 9: Summary of Financial Results for the Quarter Ended
Summary of Financial Results for the Quarter Ended December 31, 2023 03
Slide 10: Summary of Quarterly Results
Summary of Quarterly Results Quarter Ended December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Net Investment Income Per Share Net investment income per share $0.36 $0.41 $0.43 $0.49 $0.49 1 Amortization of purchase premium per share 0.01 0.01 0.01 0.01 0.01 Adjusted
Slide 11: Portfolio Highlights - New Originations
Portfolio Highlights - New Originations – Total investments at fair value decreased by approximately 1.3%, or $73.2 million, during the three months ended December 31, 2023. Quarter Ended December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 Select Portfolio Funds Roll
Slide 12: 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) $6,000,000 $5,4
Slide 13: Portfolio Highlights – Portfolio Diversity as of December 31, 2023
Portfolio Highlights – Portfolio Diversity as of December 31, 2023 Investment Portfolio $5,443MM | 357 Investments | Average Size 0.3% Portfolio Composition by Seniority Diversification by Obligor Top 10 1% 5% Investments 16% 8% First Lien Traditional Senior First Lien Top 25 94% One Stop Investment
Slide 14: Portfolio Highlights – Economic Analysis
Portfolio Highlights – Economic Analysis: 13.0% 12.5% 11.9% 12.6% 12.0% 11.5% 12.2% 11.9% 11.0% 10.5% 11.6% 11.1% 10.0% 9.2% 10.0% 9.0% 8.0% 7.5% 7.3% 8.4% 7.3% 7.2% 6.7% 6.8% 7.0% 7.1% 6.1% 6.9% 6.0% 5.5% 5.4% 5.4% 5.3% 4.9% 5.0% 4.5% 4.5% 4.6% 5.2% 5.3% 5.1% 3.7% 4.8% 4.0% 4.4% 3.0% 3.0% 3.6% 2.8%
Slide 15: Portfolio Highlights - Credit Quality
Portfolio Highlights - Credit Quality – Fundamental credit quality as of December 31, 2023 remained strong with over 85% of the investments in our portfolio at fair value having an 1 Internal Performance Rating of 4 or higher as of December 31, 2023. – As of December 31, 2023, non-accrual investment
Slide 16: Portfolio Highlights – Portfolio Ratings
Portfolio Highlights – Portfolio Ratings Internal Performance Ratings (% of Portfolio at Fair Value) At Fiscal Year End At Quarter End Rating 2019 2020 2021 2022 2023 December 31, 2023 5 2.7% 6.1% 10.2% 4.6% 0.9% 2.6% 4 88.2% 72.8% 80.7% 86.8% 84.2% 83.3% 3 7.9% 19.7% 8.1% 7.3% 14.6% 13.7% 2 1.2% 1.
Slide 17: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition As of December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (unaudited) (audited) (unaudited) Assets Investments, at fair value $5,451,946 $5,48
Slide 18: Quarterly Operating Results
Quarterly Operating Results Quarter Ended December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment Income Interest income $134,350 $143,661 $151
Slide 19: 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% 3.3% 4.0% 2.2% 2.8% 2.4% 2.6% 2.4% 2.9% 2.9% 1.9% 2.0% 2.1% 0.6% 0.3% 1.0% (10.5)
Slide 20: Long History of Strong Shareholder Returns
Long History of Strong Shareholder Returns 1 Investors in GBDC’s 2010 IPO have achieved a 9.4% IRR on NAV As of December 31, 2023 $33.11 $0.11 $0.58 $17.39 $14.63 $15.03 Dec-21 Sep-17 Jun-13 Mar-23 Dec-18 Sep-14 Jun-10 Mar-20 Dec-15 Sep-11 Mar-17 Jun-21 Dec-12 Sep-22 Mar-14 Jun-18 Dec-23 Sep-19 Mar-
Slide 21: Liquidity and Investment Capacity
Liquidity and Investment Capacity Cash and Cash Equivalents – Unrestricted cash and cash equivalents and foreign currencies totaled $76.7 million as of December 31, 2023. – Restricted cash and cash equivalents totaled $96.8 million as of December 31, 2023. Restricted cash is held in our securitizati
Slide 22: 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* Debt Outstanding Undrawn 1 Funding Source Commitment Par Commitment Reinvestment Period Stated Maturity Interest Rate Securitizations: 2018 Debt Securitization $377,703 $377,703 $— January 20, 2023 January
Slide 23: 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 24: Quarterly Variable Supplemental Distribution Framework
Quarterly Variable Supplemental Distribution Framework FY 2024 Q1 Quarterly Variable Supplemental Distribution Quarter Ended Quarter Ended September 30, 2023 December 31, 2023 Quarterly Variable Supplemental Distribution Adjusted net investment income per share $0.50 $0.50 (-) Quarterly distribution
Slide 25: Endnotes - Non-GAAP Financial Measures
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. U
Slide 26: Appendix: Endnotes
Appendix: Endnotes A GOLUB CAPITAL
Slide 27: 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 28: Endnotes - Debt Capital Structure
Endnotes - Debt Capital Structure 1. Interest rate for securitizations represents the weighted average spread over 3-month SOFR for the various tranches of issued notes, excluding tranches retained by the Company. SOFR borrowings under the securitizations are subject to an additional spread adjustme