Bcp Investment Corporation · NASDAQ:BCIC
Bcp Investment — Portman Ridge Finance — Q2 2023 Earnings Presentation
19 slides from Bcp Investment's earnings presentation, Aug 10, 2023
Slide 1: 2023 Q2 Earnings Presentation
2023 Q2 Earnings Presentation August 10, 2023
Slide 2: Important Information
Important Information Cautionary Statement Regarding Forward-Looking Statements This presentation contains forward-looking statements. The matters discussed in this presentation, as well as in future oral and written statements by management of Portman Ridge Finance Corporation (“PTMN”, “Portman Rid
Slide 3: Q2'23 Highlights
Q2’23 Highlights Second Quarter 2023 Highlights ▪ Total investment income for the second quarter of 2023 was $19.6 million, an increase of $4.6 million as compared to $15.0 million for the second quarter of 2022 and a decrease of $0.7 million as compared to $20.3 million for the first quarter of 202
Slide 4: Financial Highlights
Financial Highlights ($ in thousands Q1 2023 Q2 2023 Interest from investments in debt excluding accretion $14,105 $14,156 Purchase discount accounting 1,042 427 PIK Investment Income 1,600 966 CLO Income 548 829 JV Income 2,459 2,329 Service Fees 573 919 Investment Income $20,327 $19,626 Less: Purc
Slide 5: Rising Rates
Rising Rates ▪ As of June 30, 2023, approximately 69% of our floating rate assets were on SOFR contract. ▪ If all floating rate assets as of 6/30 were reset to current 3 month benchmark rates (5.62% for LIBOR and 5.36% for SOFR), we would expect to generate an incremental ~$484k of quarterly income.
Slide 6: Limited Repayment Activity
Limited Repayment Activity ▪ Over the last three years, Portman has experienced an average of $1.4 million in income related to repayment / prepayment activity as compared to the current quarter of $0.4 million. 6
Slide 7: NII Per Share Bridge
NII Per Share Bridge ▪ The below analysis begins with Q2 2023 net investment income and assumes no other changes to the portfolio (including accrual status of each portfolio company), investment income, professional expenses or administrative expenses other than the following: ▪ Current benchmarks a
Slide 8: Core Earning Analysis
Core Earning Analysis ($ in ‘000s except per share) Q1 2023 Q2 2023 Interest Income: Non-controlled/non-affiliated investments 14,846 14,786 Non-controlled affiliated investments 849 626 Total interest income 15,695 15,412 Payment-in-kind income: Non-controlled/non-affiliated investments 1,527 859 N
Slide 9: Net Asset Value Rollforward
Net Asset Value Rollforward ($ in ‘000s) Q1 2023 Q2 2023 NAV, Beginning of Period $232,123 $225,106 Net Investment Income 8,529 7,915 Net realized gains (losses) from investment transactions (3,085) (6,471) Net change in unrealized appreciation (depreciation) on investments (5,960) (4,176) Tax (prov
Slide 10: Current Portfolio Profile
(1) Current Portfolio Profile Diversified Portfolio of Assets Diversification by Borrower(2) 4.6% Top 5 Borrowers, 4.1% 17.7% 104 Debt + Equity Portfolio Investee Companies 3.3% 2.9% $3.2mm / 1% Average Debt Position Size 2.8% Remainder 43.3% U.S Centric Investments: Nearly 100% US-Based Companies N
Slide 11: Portfolio Trends
(1)(2) Portfolio Trends ($ in ‘000s) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 P o rt f o lio S o urc ing ( a t F a ir V a lue ) : B C P artners $ 336,689 $ 351,940 $ 367,771 $ 360,061 $ 357,971 Legacy KCA P $ 59,646 $ 53,156 $ 52,847 $ 44,061 $ 30,718 Legacy OHA I $ 10,315 $ 9,447 $ 9,179 $ 6,943 $ 6
Slide 12: Credit Quality
Credit Quality ▪ As of June 30, 2023, seven of the Company’s debt investments were on non-accrual status and represented 0.8% and 2.6% of the Company’s investment portfolio at fair value and amortized cost, respectively ($ in ‘000s) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Investments Credit Quality
Slide 13: Portfolio Composition
(1) Portfolio Composition Investment Portfolio ($ in ‘000s) Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Senior Secured Loan $414,920 $415,819 $418,722 $392,022 $376,539 Junior Secured Loan 59,147 61,535 56,400 50,795 37,962 Senior Unsecured Bond 43 43 43 43 43 Equity Securities 24,805 24,487 21,905 15,3
Slide 14: M&A Value Realization
M&A Value Realization ▪ Our track record demonstrates BC Partners’ ability to efficiently realize the value of legacy portfolios acquired while rotating into BC Partners’ sourced assets ▪ We remain in the process of implementing the same strategy with the acquired and fully redeemed HCAP assets but
Slide 15: Appendix
RIDGE Appendix
Slide 16: Balance Sheet
Balance Sheet June 30, 2023 December 31, 2022 (Unaudited) ASSETS Investments at fair value: Non-controlled/non-affiliated investments (amortized cost: 2023 - $465,608; 2022 - $518,699) $ 422,072 $ 483,698 Non-controlled affiliated investments (amortized cost: 2023 - $72,325; 2022 - $75,196) 71,411 7
Slide 17: Income Statement
Income Statement For the Three Months Ended For the Six Months Ended June 30, June 30, 2023 2022 2023 2022 INVESTMENT INCOME Interest income: Non-controlled/non-affiliated investments $ 14,786 $ 10,649 $ 29,632 $ 23,316 Non-controlled affiliated investments 626 857 1,475 1,448 Total interest income
Slide 18: Corporate Leverage & Liquidity
Corporate Leverage & Liquidity Cash and Cash Equivalents ▪ Unrestricted cash and cash equivalents totaled $20.3 million as of June 30, 2023 ▪ Restricted cash of $15.2 million as of June 30, 2023 Debt Summary ▪ As of June 30, 2023, par value of outstanding borrowings was $333.7 million; there was $37
Slide 19: Regular Distribution Information
Regular Distribution Information (1) Date Declared Record Date Payment Date Distribution per Share 8/9/2023 8/22/2023 8/31/2023 $0.69 5/10/2023 5/22/2023 5/31/2023 $0.69 3/9/2023 3/20/2023 3/31/2023 $0.68 11/8/2022 11/24/2022 12/13/2022 $0.67 8/9/2022 8/16/2022 9/2/2022 $0.63 5/10/2022 5/24/2022 6/7
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