Rand Capital Corporation · NASDAQ:RAND
Rand Capital — Q3 2023 Earnings Presentation
15 slides from Rand Capital's earnings presentation, Nov 6, 2023
Slide 1: Third Quarter 2023 Financial Results
THIRD QUARTER 2023 FINANCIAL RESULTS November 6, 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: Third Quarter 2023 Execution
THIRD QUARTER 2023 EXECUTION ✓ Total investment income increased 12% to $1.7 million over the 2022 third quarter • Driven by strong growth in interest income ✓ Net investment income per share was $0.31 compared with $0.39 in the prior-year period ✓ Net asset value per share was $23.771, up 6% from y
Slide 4: Portfolio Mix
PORTFOLIO MIX Fair Value Portfolio Mix ($ in millions) $74.7 Fair value increase reflects new investments and valuation $66.8 $7.2 $7.4 $20.2 adjustments on several portfolio companies $19.2 $40.2 $47.2 Mix at quarter-end, based on fair value: 63% Fixed-rate debt investments Q2 2023 Q3 2023 27% Equi
Slide 5: Q3 2023 Investments
Q3 2023 INVESTMENTS Full-service staffing and executive search Commercial mulch installation firm, with a growing focus on the company that covers the north and healthcare industry central Florida market Funded $3.0 million of senior debt Funded $3.4 million subordinated note at 12% (+4% PIK) and at
Slide 6: Diversified Portfolio
DIVERSIFIED PORTFOLIO Investments by Industry Classification September 30, 2023 June 30, 2023 Automotive Automotive Public BDC 4% Public BDC Stocks 6% Stocks 6% 5% Distribution Distribution 6% 7% Professional Services Software 8% Professional Services Software 9% 32% 40% Consumer Products Consumer 1
Slide 7: Top Five Portfolio Investments
TOP FIVE PORTFOLIO INVESTMENTS Investments at Year % of Total Company Industry Investment Type ($ in millions) Fair Value Acquired Portfolio Professional Services – Cellular Equity – Tilson $10.6 2015 info systems, construction, 14% mgmt. paying dividend Term note Consumer Product – Billiard Seybert
Slide 8: Financial Review
FINANCIAL REVIEW © 2023 Rand Capital Corporation Nasdaq: RAND
Slide 9: Third Quarter Financial Summary
THIRD QUARTER FINANCIAL SUMMARY ($ in thousands, except per share data) Q3 2023 Q3 2022 Total investment income $ 1,741 $ 1,554 Total investment income grew 12% • Driven by a 40% increase in interest from portfolio Total expenses 810 499 companies Net investment income¹ 799 1,010 Total expenses refl
Slide 10: Net Asset Value Change: Q3 2023
NET ASSET VALUE CHANGE: Q3 2023 ($ in thousands) $61,402 $799 ($2,803) $2,600 ($645) $61,352 Net assets at Net investment Net realized loss on Net change in Cash dividend Net assets at 6/30/2023 income sales and dispositions unrealized 09/30/2023 $61,402,028 of investments appreciation on $61,352,27
Slide 11: Strong and Flexible Balance Sheet
STRONG AND FLEXIBLE BALANCE SHEET Net Asset Value Composition At September 30, 2023 Publicly-traded equity securities of $7.2 million Per Share Assets and Liabilities available for future liquidity opportunities $1.35 $3.5 million consolidated cash At September 30, 2023, $13.8 million in outstanding
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 senior secured revolving credit facility • Opportunistically use our publicly traded equity investments as a
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 ended Three months ended September 30, 2023 September 30, 2022 Total expenses $ 809,936 $ 498,959 Exclude (credits)/expenses for capital gains incentive fees (41,300) 22,000 Adjusted expenses $ 851,236 $ 476,959 *In addition to reporting total expenses, w
Slide 15: Adjusted Net Investment Income Per Share (Non-GAAP)
ADJUSTED NET INVESTMENT INCOME PER SHARE (N -GAAP*) ON Three months ended Three months ended September 30, 2023 September 30, 2022 Net investment income per share $ 0.31 $ 0.39 Exclude (credits)/expenses for capital gains incentive fees (0.02) 0.01 Adjusted net investment income per share $ 0.29 $ 0