Slide 1: First Quarter 2024 Financial Results
FIRST QUARTER 2024 FINANCIAL RESULTS May 13, 2024 Daniel P. Penberthy President & CEO Margaret W. Brechtel EVP & CFO © 2024 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: Strong Execution
STRONG EXECUTION (Results compared with the prior-year period unless otherwise noted) ✓ Strategy focused on expanding portfolio composition with new debt investments drives total investment income growth of 12% to $2.1 million over the prior-year period ✓ Net asset value per share $23.85 at quarter-
Slide 4: Delivering Cash Dividends
DELIVERING CASH DIVIDENDS (Results compared with the prior-year period unless otherwise noted) Dividends per Share ✓ Paid Q1 2024 dividends of $0.25 per share ✓ On May 8, 2024, declared second quarter cash $1.33 dividend of $0.29 per share • To be paid on or about June 14, 2024, to $0.83 shareholder
Slide 5: Portfolio Mix
PORTFOLIO MIX Fair Value Portfolio Mix ($ in millions) Fair value increase reflects new and follow-on investments, and $77.1 $82.8 $4.5 valuation adjustments on several portfolio companies $7.3 $20.7 $20.5 Mix at quarter-end, based on fair value: $49.3 $57.6 70% Fixed-rate debt investments YE 2023 Q
Slide 6: Q1 2024 Portfolio Activity
Q1 2024 PORTFOLIO ACTIVITY Investments Supplies automated lubrication systems, active Provider of upscale salon spaces for lease Billiard supply company and passive safety systems and maintenance products for mobile heavy equipment Funded new debt investment of Funded follow-on debt investment Funde
Slide 7: Diversified Portfolio
DIVERSIFIED PORTFOLIO Investments by Industry Classification March 31, 2024 December 31, 2023 Automotive Automotive Public BDC Software Public BDC 4% 4% Stocks 4% Stocks 5% 5% Distribution 6% Distribution 9% Software 8% Professional Services Professional Services 42% Consumer Products 43% Consumer P
Slide 8: Top Five Portfolio Investments
TOP FIVE PORTFOLIO INVESTMENTS Investments at Year % of Total Company Industry Investment Type ($ in millions) Fair Value Acquired Portfolio Professional Services – Cellular Equity – Tilson $10.6 2015 info systems, construction, 13% mgmt. paying dividend Term note Consumer Product – Billiard Seybert
Slide 9: Financial Review
FINANCIAL REVIEW © 2024 Rand Capital Corporation Nasdaq: RAND
Slide 10: First Quarter Financial Summary
FIRST QUARTER FINANCIAL SUMMARY ($ in thousands, except per share data) Q1 2024 Q1 2023 Total investment income $ 2,067 $ 1,851 Total investment income grew 12% • Driven by a 40% increase in interest from Total expenses 1,227 1,048 portfolio companies Net investment income¹ 840 715 Total expenses in
Slide 11: Net Asset Value Change: Q1 2024
NET ASSET VALUE CHANGE: Q1 2024 ($ in thousands) $3,450 ($2,890) $60,815 $840 ($645) $61,569 Net assets at Net investment Net realized gain on Net change in Cash dividend Net assets at 12/31/2023 income sales and dispositions unrealized 3/31/2024 $60,815,213 of investments appreciation on $61,569,33
Slide 12: Strong and Flexible Balance Sheet
STRONG AND FLEXIBLE BALANCE SHEET Net Asset Value Composition At March 31, 2024 Total assets increased 4% to $84.4 million Per Share Assets and Liabilities Publicly-traded equity securities of $4.5 million available for future liquidity opportunities $0.29 $0.8 million consolidated cash At March 31,
Slide 13: 2024 Objectives
2024 OBJECTIVES ✓ Continue to replicate our past success by increasing our portfolio composition with new debt investments ✓ Continue to evaluate current portfolio company equity holdings and M&A market conditions to further drive portfolio equity returns ✓ Put capital to work: • Leverage cash balan
Slide 14: Supplemental Information
SUPPLEMENTAL INFORMATION © 2024 Rand Capital Corporation Nasdaq: RAND
Slide 15: Adjusted Expenses (Non-GAAP)
ADJUSTED EXPENSES (N -GAAP*) ON Three months Three months ended ended March 31, 2024 March 31, 2023 Total expenses $ 1,226,856 $ 1,047,845 Exclude expenses for capital gains incentive fees 112,300 291,000 Adjusted total expenses $ 1,114,556 $ 756,845 *In addition to reporting total expenses, which i
Slide 16: 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, 2024 March 31, 2023 Net investment income per share $ 0.33 $ 0.28 Exclude expenses for capital gains incentive fees per share 0.04 0.11 Adjusted net investment income per share $ 0.37 $ 0.39 Totals
Slide 17: First Quarter 2024 Financial Results
FIRST QUARTER 2024 FINANCIAL RESULTS May 13, 2024 Daniel P. Penberthy President & CEO Margaret W. Brechtel EVP & CFO © 2024 Rand Capital Corporation Nasdaq: RAND