Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q4 2019 Earnings Presentation
23 slides from Golub Capital Bdc's earnings presentation, Nov 25, 2019
Slide 1: Golub Capital BDC, Inc. Investor Presentation Quarter Ended September 30, 2019
GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED SEPTEMBER 30, 2019
Slide 2: Disclaimer
Disclaimer Some of the statements in this presentation constitute forward-looking statements, have filed or in the future may file with the Securities and Exchange Commission which relate to future events or our future performance or financial condition. The (“SEC”), including annual reports on Form
Slide 3: GCIC Acquisition: Completed on September 16, 2019
GCIC Acquisition: Completed on September 16, 20191 Meaningful net asset value (“NAV”) per share accretion Increased portfolio size and scale Greater earnings power to support an increased dividend 1. On September 16, 2019, Golub Capital BDC, Inc. (“we”, “us”, “our”, the “Company” or “GBDC”) complete
Slide 4: GCIC Acquisition: 5.1% NAV Per Share Accretion
GCIC Acquisition: 5.1% NAV Per Share Accretion NAV Accretion Per Share − The acquisition was the primary driver for NAV per share accretion of $0.81, or 5.1%, for the quarter ended September 30, 2019. This NAV accretion is more than two and a half quarters of historical regular distributions1. GBDC
Slide 5: GCIC Acquisition: Greater Portfolio Size and Diversification
GCIC Acquisition: Greater Portfolio Size and Diversification While GBDC’s portfolio more than doubled in size, its asset mix by investment type and obligor is consistent with pre-acquisition GBDC as over 98% of GBDC’s investments at fair value as of the GCIC acquisition date overlapped with GCIC Div
Slide 6: GCIC Acquisition: Accounting Treatment of the Purchase Premium
GCIC Acquisition: Accounting Treatment of the Purchase Premium Recognize One- Acquisition of Determine GBDC’s Time Write-Down GCIC Assets at a Cost Basis in of Purchase Premium Acquired Assets Premium Write Down to Fair Value One-Time Purchase Unrealized Loss Premium on Purchase Premium GBDC Cost Ba
Slide 7: GCIC Acquisition: Illustrative Income Statement Impact and Supplemental Financial Measures
GCIC Acquisition: Illustrative Income Statement Impact and Supplemental Financial Measures As a supplement to U.S. generally accepted accounting principles (“GAAP”) financial measures, the Company is providing the following non- GAAP financial measures: A B Expected to be equal and offsetting amount
Slide 8: Summary of Quarterly Results
Summary of Quarterly Results Pre-Acquisition Post-Acquisition Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Net Investment Income Per Share Net investment income per share $0.34 $0.33 $0.33 $0.32 $0.37 Amortization of purchase premium per share - - - - 0.02 Accrual for (reversal of) capital gain incentive
Slide 9: Portfolio Highlights – New Originations
Portfolio Highlights – New Originations New Originations Data and Net Funds Growth − New investment commitments totaled $130.4 million for the quarter ended September 30, 2019 − Including $2.3 billion of investments acquired from GCIC, total investments in portfolio companies at fair value were $4.3
Slide 10: Portfolio Highlights – Portfolio Diversity
Portfolio Highlights – Portfolio Diversity as of September 30, 2019 Pre-Acquisition Post-Acquisition Investment Portfolio Statistics Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Investments in Portfolio Companies at Fair Value (000s) $1,711,757 $1,849,564 $1,883,271 $1,851,079 $4,169,287 Investments in S
Slide 11: Portfolio Highlights – Portfolio Diversity by Size and Industry
Portfolio Highlights – Portfolio Diversity as of September 30, 2019 Diversity by Investment Size Industry Diversity of Investments SLFs Top 10 3% Investments Diversified/Conglomerate Service 34% 18% Healthcare, Education and Childcare 17% Retail Stores 7% Top 25 Investments 34% Beverage, Food and To
Slide 12: Portfolio Highlights – Economic Analysis
Portfolio Highlights – Economic Analysis Economic Analysis 10.0% 9.3% 9.1% 9.1% 9.2% 9.2% 8.8% 8.8% 9.0% 8.5% 8.8% 8.8% 8.6% 8.6% 8.0% 8.5% 8.4% 8.2% 7.9% 7.0% 6.0% 5.0% 5.0% 5.0% 5.0% 5.0% 4.8% 4.8% 5.0% 4.6% 4.0% 4.1% 4.3% 4.3% 4.2% 4.2% 3.9% 3.9% 4.0% 3.0% 2.8% 2.0% 2.6% 2.3% 2.3% 2.4% 2.3% 2.1%
Slide 13: Portfolio Highlights – Credit Quality
Portfolio Highlights – Credit Quality Credit Quality – Investment Portfolio − Fundamental credit quality remained strong as non-accrual investments as a percentage of total debt investments at cost and fair value declined from 0.7% and 0.4%, respectively, as of June 30, 2019, to 0.5% and 0.3%, respe
Slide 14: Portfolio Highlights – Portfolio Ratings
Portfolio Highlights – Portfolio Ratings Internal Performance Ratings (% of Portfolio at Fair Value) At Fiscal Year End At Quarter End Rating 2014 2015 2016 2017 Q4 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 5 9.7% 8.8% 5.7% 5.5% 6.4% 5.6% 6.0% 3.7% 2.7% 4 84.9% 84.9% 83.1% 81.8% 81.6% 84.0% 84.1% 86.0% 8
Slide 15: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition As of Pre-Acquisition Post-Acquisition September 30, 2018 December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 (Dollar amounts in 000s, except per share data) (audited) (unaudited) (unaudited) (unaudited) (audited) Assets Investments, at fair
Slide 16: Quarterly Operating Results
Quarterly Operating Results For the three months ended Pre-Acquisition Post Acquisition September 30, December 31, March 31, June 30, September 30, 2018 2018 2019 2019 2019 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investmen
Slide 17: Financial Performance Highlights
Financial Performance Highlights NAV Per Common Share $17.50 $17.21 $17.00 $16.43 $16.76 $16.50 $16.33 $15.96 $16.00 $15.80 $16.08 $16.10 $15.96 $15.55 $15.80 $15.50 $15.21 $15.55 $15.21 $15.00 $14.71 $14.63 $14.56 $14.60 $14.71 $14.50 $14.63 $14.56 $14.60 $14.00 IPO Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 Q4 (4
Slide 18: Financial Performance Highlights (Continued)
Financial Performance Highlights (Continued) Annualized Return on Average Equity and Quarterly Distributions (Last 5 Years) $1.00 10.1% 9.8% 9.7% 10% 9.5% 9.6% 9.2% 9.3% 9.0% 9.0% 8.8% 8.8% 8.6% 8.6% Average = 8.6% $0.80 7.9% 8% 7.5% 7.5% 8.2% 7.5% 7.0% $0.57 $0.60 6% 6.5% $0.44 $0.25 $0.40 $0.40 $0
Slide 19: Portfolio Highlights – Investments in Senior Loan Funds
Portfolio Highlights – Investments in Senior Loan Funds − The annualized quarterly returns for GBDC SLF and GCIC SLF were 14.3% and 8.1%, respectively, for the quarter ended September 30, 2019. − Total investments at fair value for GBDC SLF and GCIC SLF as of September 30, 2019 were $152.3 million a
Slide 20: Liquidity and Investment Capacity
Liquidity and Investment Capacity Cash and Cash Equivalents − Unrestricted cash and cash equivalents and foreign currencies totaled $6.5 million as of September 30, 2019. − Restricted cash, cash equivalents and foreign currencies totaled $77.7 million as of September 30, 2019. Restricted cash is hel
Slide 21: Debt Capital Structure
Debt Capital Structure* Key Funding Vehicles Debt Outstanding Undrawn Funding Source Commitment Par Commitment Reinvestment Period Stated Maturity Interest Rate1 Securitizations: Golub Capital BDC CLO 2014 $ 126,334 $ 126,334 $ - April 28, 2018 April 25, 2026 3 Month LIBOR + 1.08% Golub Capital BDC
Slide 22: Common Stock and Distribution Information
Common Stock and Distribution Information Common Stock Data1 Fiscal Year Ending September 30, 2018 High Low End of Period First Quarter $19.41 $18.20 $18.20 Second Quarter $18.44 $17.62 $17.89 Third Quarter $18.67 $17.83 $18.30 Fourth Quarter $19.14 $18.40 $18.75 Fiscal Year Ending September 30, 201
Slide 23: Endnote – Non-GAAP Financial Measures
Endnote – 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 805-50, Business Combinations — Related Issues. Under asse