Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q4 2023 Earnings Presentation
26 slides from Golub Capital Bdc's earnings presentation, Nov 21, 2023
Slide 1: Golub Capital BDC, Inc. Earnings Presentation
GOLUB CAPITAL BDC, INC. EARNINGS PRESENTATION QUARTER ENDED SEPTEMBER 30, 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 2023 Q4 Earnings Review (Quarter Ended 9/30/23)
FY 2023 Q4 Earnings Review (Quarter Ended 9/30/23) 1,2 ◦ Adjusted net investment income per share of $0.50, or an 13.3% NII ROE Earnings Summary ▪ Increase of $0.06 from $0.44 per share for the quarter ended June 30, 2023 (~13% increase) ▪ Increase of $0.17 from $0.33 per share for the quarter ended
Slide 5: Summary of Financial Results vs. Prior Quarter
Summary of Financial Results vs. Prior Quarter Quarter Ended June 30, 2023 September 30, 2023 Net Investment Income Per Share Net investment income per share $0.43 $0.49 1 Amortization of purchase premium per share 0.01 0.01 2 Adjusted net investment income per share A $0.44 $0.50 Accrual (reversal)
Slide 6: GBDC Performance Drivers
GBDC Performance Drivers O 2 GOLUB CAPITAL
Slide 7: NII Drove a NAV Per Share Increase from June 30, 2023
NII Drove a NAV Per Share Increase from June 30, 2023 NAV Per Share Bridge $0.49 $0.01 ($0.04) $0.11 $0.00* ($0.01) $15.02 ($0.37) $14.83 1 Adjusted NII: $0.50 Total Distributions: ($0.41) Adjusted Net Realized & Unrealized Gain: $0.10 June 30, 2023 Net Investment Reversal of FY 2023 Q3 Quarterly Ne
Slide 8: Summary of Financial Results for the Quarter Ended September 30, 2023
Summary of Financial Results for the Quarter Ended September 30, 2023 03
Slide 9: Summary of Quarterly Results
Summary of Quarterly Results Quarter Ended September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 Net Investment Income Per Share Net investment income per share $0.32 $0.36 $0.41 $0.43 $0.49 1 Amortization of purchase premium per share 0.01 0.01 0.01 0.01 0.01 Adjusted
Slide 10: Portfolio Highlights - New Originations
Portfolio Highlights - New Originations – Total investments at fair value decreased by approximately 0.2%, or $8.4 million, during the three months ended September 30, 2023. Quarter Ended September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 Select Portfolio Funds Roll
Slide 11: 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 12: Portfolio Highlights – Portfolio Diversity as of September 30, 2023
Portfolio Highlights – Portfolio Diversity as of September 30, 2023 Investment Portfolio $5,517mm | 342 Investments | Average Size 0.3% Portfolio Composition by Seniority Diversification by Obligor Top 10 1% 5% Investments 15% 9% First Lien Traditional Senior First Lien Top 25 94% One Stop Investmen
Slide 13: Portfolio Highlights – Economic Analysis: Positioned for Higher Interest Rates
Portfolio Highlights – Economic Analysis: Positioned for Higher Interest Rates 13.0% 11.9% 12.5% 12.0% 11.5% 11.9% 11.0% 10.5% 11.6% 11.1% 10.0% 9.2% 10.0% 9.0% 7.7% 8.0% 7.5% 8.4% 7.3% 7.3% 6.7% 6.8% 7.0% 7.1% 7.1% 6.1% 6.9% 6.0% 5.5% 5.3% 5.4% 5.0% 4.9% 5.0% 4.5% 4.5% 4.6% 5.1% 5.2% 3.7% 4.8% 4.0%
Slide 14: Portfolio Highlights - Credit Quality
Portfolio Highlights - Credit Quality – Fundamental credit quality as of September 30, 2023 remained strong with 85% of the investments in our portfolio at fair value having an 1 Internal Performance Rating of 4 or higher as of September 30, 2023. – Non-accrual investments at September 30, 2023 as a
Slide 15: 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, March 31, June 30, September 30, Rating 2018 2019 2020 2021 2022 2022 2023 2023 2023 5 6.4% 2.7% 6.1% 10.2% 4.6% 2.8% 1.1% 1.6% 0.9% 4 81.6% 88.2% 72.8%
Slide 16: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition As of September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 (Dollar amounts in 000s, except share and per share data) (audited) (unaudited) (unaudited) (unaudited) (audited) Assets Investments, at fair value $5,446,356 $5,451
Slide 17: Quarterly Operating Results
Quarterly Operating Results Quarter Ended September 30, 2022 December 31, 2022 March 31, 2023 June 30, 2023 September 30, 2023 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment Income Interest income $119,925 $134,350 $14
Slide 18: 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% 1.9% 1.9% 2.0% 2.1% 0.6% 0.3% 1.0% (10.5)
Slide 19: 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 September 30, 2023 $32.66 $0.04 $0.58 $17.02 $14.63 $15.02 Mar-20 Dec-12 Mar-12 Jun-19 Sep-18 Jun-11 Dec-17 Sep-10 Mar-17 Sep-23 Jun-16 Dec-22 Sep-15 Mar-22 Dec-14 Mar-14 Jun-21 Sep-20 Jun
Slide 20: Liquidity and Investment Capacity
Liquidity and Investment Capacity Cash and Cash Equivalents – Unrestricted cash and cash equivalents and foreign currencies totaled $69.8 million as of September 30, 2023. – Restricted cash and cash equivalents totaled $70.4 million as of September 30, 2023. Restricted cash is held in our securitiza
Slide 21: 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 $388,697 $388,697 $— January 20, 2023 January
Slide 22: Common Stock and Distribution Information
Common Stock and Distribution Information 1 Common Stock Price Data Fiscal Year Ending September 30, 2022 High Low End of Period First Quarter $15.99 $14.86 $15.44 Second Quarter $16.10 $14.70 $15.21 Third Quarter $15.48 $12.67 $12.96 Fourth Quarter $14.35 $12.21 $12.39 Fiscal Year Ending September
Slide 23: Quarterly Variable Supplemental Distribution Framework
Quarterly Variable Supplemental Distribution Framework FY 2023 Q4 Quarterly Variable Supplemental Distribution Quarter Ended Quarter Ended June 30, 2023 September 30, 2023 Quarterly Variable Supplemental Distribution Adjusted net investment income per share $0.44 $0.50 1 (-) Quarterly distribution p
Slide 24: 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 25: Appendix: Endnotes
Appendix: Endnotes A GOLUB CAPITAL
Slide 26: 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