Gladstone Capital Corporation · NASDAQ:GLAD
Gladstone Capital — Investor Presentation (December 2024)
16 slides from Gladstone Capital's investor presentation, Dec 31, 2024
Slide 1: Investor Presentation for the Quarter Ended December 31, 2024
Investing Since 2001 Investor Presentation for the Quarter Ended December 31, 2024 NASDAQ: GLAD FINANCING FOR LOWER MIDDLE MARKET COMPANIES
Slide 2: Legal Disclaimer
Legal Disclaimer Forward-Looking Statements: This presentation may include “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. These forward-looking statements may include commen
Slide 3: Gladstone Capital Quarterly Highlights
Gladstone Capital Quarterly Highlights (as of 12/31/2024) Net Investment Income Per Share: $0.50 Financial Net Asset Value Per Share: $21.51 (+$0.33 over prior quarter-end) Results LTM ROE: 22% per GAAP and 10% on net investment income Monthly dividends per share: $0.165 or annualized divide
Slide 4: Investment Highlights
Gladstone Capital Investment Highlights Lending focused on growth-oriented lower middle market businesses Experienced, long-tenured leadership and investment team High-quality sourcing and execution model with high degree of selectivity Diversified, conservative portfolio with focus on senior secure
Slide 5: Overview
Gladstone Capital Overview Background: Founded in 2001 with the purpose of making loans to lower middle market U.S. businesses, Gladstone Capital’s investment team is exclusively focused on this segment of the private capital market Gladstone Capital is funded through publicly traded common stoc
Slide 6: Attractive Lower Middle Market Dynamics
Attractive Lower Middle Market Dynamics Why focus on lower middle market (“LMM”) companies Greater industry diversity and more consistent flow of growth-oriented investment opportunities Lower cash flow purchase multiples in the LMM translate to reduced financial leverage, better asset collatera
Slide 7: 12/31/2024 Quarter Summary
Gladstone Capital 12/31/2024 Quarter Summary Originations/Portfolio Activity: New investments totaled $151.6 million during the quarter, comprised of $107.2 million into six new portfolio companies, and $44.5 million of add-on investments in support of existing portfolio companies. As anticipate
Slide 8: Origination Activity
Gladstone Capital Origination Activity Gladstone Capital Quarterly Net Investment 3/31/2023 6/30/2023 9/30/2023 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 New Investments at Cost $ 48,000 $ 53,500 $ - $ 11,000 $ 15,000 $ 27,250 $ - $ 107,159 Disbursements to Existing Portfolio Companies 16,
Slide 9: Portfolio Trends
Gladstone Capital Portfolio Trends While new deal buyout activity has been volatile in the past several quarters, we have absorbed significant refinancings of larger and mature credits while seeding a new vintage of growth oriented LMM platform investments to maintain our AUM and portfolio diversi
Slide 10: Portfolio Metrics
Portfolio Metrics Consistent with GLAD’s LMM focus, the core loan portfolio continues to represent companies with an average EBITDA of approx. $10.4 million and an average leverage attachment point of 3.86x EBITDA *For the purposes of this presentation, certain investments have been excluded from th
Slide 11: Industry and Deal Sources Are Diversified
Industry and Deal Sources Are Diversified Portfolio Diversification Across 13 Deal Source Composition - Industries - At 12/31/2024 Fair Value At 12/31/2024 Fair Value Page 11
Slide 12: Portfolio Composition
Portfolio Composition Portfolio Characteristics As Of: March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Total Portfolio - FV $ 791,588 $ 757,745 $ 796,260 $ 799,497 # of Portfolio Companies 51 51 49 51 Average Investment Size - FV $ 15,521 $ 14,858 $ 16,250 $ 15,676 Top 5 Investment
Slide 13: Representative Portfolio Investments
Representative Portfolio Investments WINGS ‘N MORE RESTAURANTS LLC. is a proud HH-INSPIRE ACQUISITION, INC. is a plastic Texas tradition and restaurant chain that offers surgery and aesthetic center offering a a diverse, value-oriented menu centered around comprehensive range of cosmetic surgeries a
Slide 14: Quarterly Financial Summary
Quarterly Financial Summary Three Months Ended In Thousands, except per share data December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 December 31, 2024 Income: Interest Income $ 22,996 $ 23,715 $ 23,199 $ 23,384 $ 21,320 Other Investment Income 225 282 2,490 330 640 Total Investment I
Slide 15: 12/31/2024 Quarter Summary
Gladstone Capital 12/31/2024 Quarter Summary Capital Base and Liquidity Total Assets increased to $816 million as of December 31, 2024, consisting of ~$800 million in investments at fair value and ~$16 million in cash and other assets. We ended the quarter with a conservative leverage position o
Slide 16: Corporate Data
Corporate Data Executive Officers Research Coverage Websites David Gladstone Gladstone Capital: Janney Montgomery Scott LLC Chairman & CEO www.gladstonecapital.com John Rowan Bob Marcotte Investment Adviser: Jefferies President www.gladstonemanagement.com Matt Hurwit Nicole Schaltenbrand Information
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