Slide 1: Third Quarter 2024 Financial Results
THIRD QUARTER 2024 FINANCIAL RESULTS November 6, 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: Debt Portfolio Expansion Drives Q3 Results
DEBT PORTFOLIO EXPANSION DRIVES Q3 RESULTS (Results compared with the prior-year period unless otherwise noted) Strong Total Investment Income Growth • Increased $477,000, or 27%, to $2.2 million, driven by five new debt instruments and higher fee income NAV and Portfolio Composition • Net Asset Val
Slide 4: Delivering Cash Dividends
DELIVERING CASH DIVIDENDS (Results compared with the prior-year period unless otherwise noted) On July 31, 2024, declared third quarter cash dividend of $0.29 per share • Dividend was paid during the third quarter to shareholders of record as of August 30, 2024 Fourth quarter dividend announcement i
Slide 5: Portfolio Mix Change Reflects Sale of SciAps
PORTFOLIO MIX CHANGE REFLECTS SALE OF SCIAPS Fair Value Portfolio Mix ($ in millions) $87.1 $1.3 $75.0 Portfolio fair value decrease reflects the SciAps exit, stock sales and $28.4 other portfolio company loan repayments, partially offset by new and $19.1 follow-on investments and valuation adjustme
Slide 6: Q3 2024 Portfolio Activity
Q3 2024 PORTFOLIO ACTIVITY Investment Blind and shade manufacturing Funded follow-on debt investment of $125 thousand Total debt and equity investments has a fair value of $4.9 million Exits / Repayments Sold share holdings in two publicly Received $13.1 million from the sale, consisting of traded B
Slide 7: Diversified Portfolio
DIVERSIFIED PORTFOLIO Investments by Industry Classification September 30, 2024 June 30, 2024 Software, 3% Public BDC Software Stocks 2% Automotive Automotive 4% 4% 4% Distribution Distribution, 10% 9% Professional Services Consumer Products Manufacturing Professional Services 43% 14% 16% 50% Manufa
Slide 8: Top Five Portfolio Investments
TOP FIVE PORTFOLIO INVESTMENTS Investments at Year % of Total Company Industry Investment Type ($ in millions) Fair Value Acquired Portfolio Professional Services – Cellular Equity – Tilson $12.3 2015 info systems, construction, 16% mgmt. paying dividend Term note Consumer Product – Billiard Seybert
Slide 9: Financial Review
FINANCIAL REVIEW © 2024 Rand Capital Corporation Nasdaq: RAND
Slide 10: Third Quarter Financial Summary
THIRD QUARTER FINANCIAL SUMMARY ($ in thousands, except per share data) Q3 2024 Q3 2023 Total investment income $ 2,218 $ 1,741 Total investment income grew 27% • Driven by a 27% increase in interest from Total expenses 1,334 810 portfolio companies and a $165,000 increase in fee income Net investme
Slide 11: Net Asset Value Change: Q3 2024
NET ASSET VALUE CHANGE: Q3 2024 ($ in thousands) $7,230 $68,559 $887 $70,447 ($5,481) ($748) Net assets at Net investment Net realized gain on Net change in Cash dividend Net assets at 6/30/2024 income sales and dispositions unrealized 9/30/2024 $68,558,616 of investments appreciation on $70,446,636
Slide 12: Strong and Flexible Balance Sheet
STRONG AND FLEXIBLE BALANCE SHEET Net Asset Value Composition At September 30, 2024 Total assets of $79.8 million was down 12%, largely Per Share Assets and Liabilities due to sale of SciAps Paid down line of credit balance during Q3 $1.30 $3.4 million consolidated cash • $3.9 million line of credit
Slide 13: Strategic Objectives for 2024 and Beyond
STRATEGIC OBJECTIVES FOR 2024 AND BEYOND Expand Debt Portfolio • Continue building on successful debt investments with targeted new originations to strengthen income Deploy Available Capital • Capitalize on revolving credit availability for growth, while reduced borrowing costs from Fed rate cut and
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 Nine months Nine months ended ended ended ended September 30, September 30, September 30, September 30, 2024 2023 2024 2023 Total expenses $ 1,333,930 $ 809,936 $ 5,213,568 $ 3,164,522 Exclude expenses/(credits) for capital gains incentive fe
Slide 16: Adjusted Net Investment Income Per Share (Non-GAAP)
ADJUSTED NET INVESTMENT INCOME PER SHARE (N -GAAP*) ON Three months Three months Nine months Nine months ended ended ended ended September 30, September 30, September 30, September 30, 2024 2023 2024 2023 Net investment income per share $ 0.34 $ 0.31 $ 0.47 $ 0.78 Exclude expenses/(credits) for capi
Slide 17: Third Quarter 2024 Financial Results
THIRD QUARTER 2024 FINANCIAL RESULTS November 6, 2024 Daniel P. Penberthy President & CEO Margaret W. Brechtel EVP & CFO © 2024 Rand Capital Corporation Nasdaq: RAND