Rand Capital Corporation · NASDAQ:RAND
Rand Capital — Q1 2023 Earnings Presentation
15 slides from Rand Capital's earnings presentation, May 9, 2023
Slide 1: First Quarter 2023 Financial Results
FIRST QUARTER 2023 FINANCIAL RESULTS May 9, 2023 Daniel P. Penberthy President & CEO Margaret W. Brechtel EVP & CFO © 2023 Rand Capital Corporation Nasdaq: RAND
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS This presentation contains “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. All statements, other than historical facts, including but not limited t
Slide 3: First Quarter 2023 Execution
FIRST QUARTER 2023 EXECUTION Total investment income increased 65% to $1.85 million over the 2022 first quarter • Driven by strong growth in interest, dividend and fee income Net investment income per share was $0.28 compared with $0.30 in the prior-year period Net asset value per share was $2
Slide 4: Portfolio Mix
PORTFOLIO MIX Fair Value Portfolio Mix ($ in millions) $61.5 $68.2 Fair value up $6.7 million or 11% $7.8 $6.4 $20.9 $21.0 Reflects new and follow on investments and $1.5 million valuation adjustment on ACV Auctions, partially offset by equity sales and loan $34.2 $39.4 repayments YE 2022 Q1 2023 Mi
Slide 5: Q1 2023 Investments & Exits
Q1 2023 INVESTMENTS & EXITS Investments Funded $3.0 million in subordinated debt at 15% interest rate and with a 10% warrant Market leader for branded tire pressure monitoring systems consisting of a suite of proprietary hardware and software Follow on debt investment of $2.3 million in combination
Slide 6: Diversified Portfolio
DIVERSIFIED PORTFOLIO Investments by Industry Classification March 31, 2023 December 31, 2022 Public BDC Public BDC stocks stocks 6% Software Software 11% Professional 6% 10% Professional Services Services Automotive 32% Automotive 31% 12% 13% Consumer Consumer Manufacturing Products 15% Manufacturi
Slide 7: Top Five Portfolio Investments
TOP FIVE PORTFOLIO INVESTMENTS Investments at Year % of Total Company Industry Investment Type ($ in millions) Fair Value Acquired Portfolio Professional Services – Equity – Tilson $10.6 2015 Cellular info systems, 15% construction, mgmt. paying dividend Term note Consumer Product – Billiard Seybert
Slide 8: Financial Review
FINANCIAL REVIEW © 2023 Rand Capital Corporation Nasdaq: RAND
Slide 9: First Quarter Financial Summary
FIRST QUARTER FINANCIAL SUMMARY ($ in thousands, except per share data) Q1 2023 Q1 2022 Total investment income $ 1,851 $ 1,125 Total investment income grew 65% • Driven by a 42% increase in interest from Total expenses 1,048 345 portfolio companies, dividend income that more than doubled, and highe
Slide 10: Net Asset Value Change: Q1 2023
NET ASSET VALUE CHANGE: Q1 2023 ($ in thousands) $57,721 $715 $53 $1,402 $59,375 ($516) Net assets at Net investment Net realized gain on Net change in Cash dividend Net assets at 12/31/2022 income sales and dispositions unrealized 03/31/2023 $57,721,320 of investments appreciation on $59,375,393 in
Slide 11: Strong and Flexible Balance Sheet
STRONG AND FLEXIBLE BALANCE SHEET Net Asset Value Composition At March 31, 2023 Publicly-traded equity securities of $7.8 million Per Share Assets and Liabilities available for future liquidity opportunities $0.71 $1.8 million consolidated cash At March 31 2023, $7.95 million in outstanding borrowin
Slide 12: 2023 Objectives
2023 OBJECTIVES Continue to grow and scale the business by focusing on debt and related equity investments in privately-held, lower middle market companies Put capital to work: • Leverage $25 million senior secured revolving credit facility • Opportunistically use our publicly traded equity inve
Slide 13: Supplemental Information
SUPPLEMENTAL INFORMATION © 2023 Rand Capital Corporation Nasdaq: RAND
Slide 14: Adjusted Expenses (Non-GAAP)
ADJUSTED EXPENSES (N -GAAP*) ON Three months Three months ended ended March 31, 2023 March 31, 2022 Total expenses $ 1,047,845 $ 345,378 Exclude expenses/(credits) for capital gains incentive fees 291,000 (239,760) Adjusted expenses $ 756,845 $ 585,138 *In addition to reporting total expenses, which
Slide 15: Adjusted Net Investment Income per Share (Non-GAAP)
ADJUSTED NET INVESTMENT INCOME PER SHARE (N -GAAP*) ON Three months Three months ended ended March 31, 2023 March 31, 2022 Net investment income per share $ 0.28 $ 0.30 Exclude expenses/(credits) for capital gains incentive fees 0.11 (0.09) Adjusted net investment income per share $ 0.39 $ 0.21 *In