Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q1 FY2019 Earnings Presentation
18 slides from Golub Capital Bdc's earnings presentation, Feb 6, 2019
Slide 1: Golub Capital BDC, Inc. Investor Presentation, Quarter Ended December 31, 2018
GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED DECEMBER 31, 2018
Slide 2: Disclaimer
Disclaimer Some of the statements in this presentation constitute forward-looking the effect of changes to tax legislation and our tax position. statements, which relate to future events or our future performance or Such forward-looking statements may include statements preceded financial condition.
Slide 3: Summary of Quarterly Results
Summary of Quarterly Results First Fiscal Quarter 2019 Highlights − Net increase in net assets resulting from operations (i.e. net income) for the quarter ended December 31, 2018 was $18.4 million, or $0.31 per share, as compared to $15.9 million, or $0.26 per share, for the quarter ended September
Slide 4: Financial Highlights
Financial Highlights Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 Earnings per share $ 0.36 $ 0.39 $ 0.36 $ 0.26 $ 0.31 Net investment income per share 0.31 0.31 0.31 0.34 0.33 Accrual for capital gain incentive fee per share 0.01 0.01 0.02 (0.02) (0.01) Net investment income before accrual for capital g
Slide 5: New Originations
Portfolio Highlights – New Originations Originations and Net Funds Growth − New investment commitments totaled $203.1 million for the quarter ended December 31, 2018. − Total investments at fair value increased by 7.6%, or $135.6 million, as of December 31, 2018 from September 30, 2018. Select Portf
Slide 6: Diversity: Historical Investment Portfolio
Portfolio Highlights – Portfolio Diversity as of December 31, 2018 Investment Portfolio $1,850mm1 // 212 Investments1 – Average Size $8.7mm Historical Investment Portfolio ($mm) $2,000 $1,918 4% $1,799 $1,783 $1,800 $1,760 2% $1,723 5% 4% 5% 1% 5% 2% 2% 3% $1,600 3% 1% 1% 1% 1% Inv. in SLF $1,400 Eq
Slide 7: Diversity by Investment Size and Industry
Portfolio Highlights – Portfolio Diversity as of December 31, 2018 Diversity by Investment Size Industry Diversity of Investments SLF Top 10 4% Investments Diversified/Conglomerate Service 28% 19% Healthcare, Education and Childcare 18% Electronics 8% Retail Stores 7% Top 25 Investments Diversified/
Slide 8: Spread Analysis
Portfolio Highlights – Spread Analysis 10.0% 9.3% Portfolio Rotation – Q1 Q2 Q3 Q4 Q1 9.1% 9.1% 8.8% Debt Investments 2018 2018 2018 2018 2019 9.0% 8.5% Weighted average interest rate 8.8% 8.6% 7.5% 8.4% 7.8% 8.2% 7.7% 8.0% 8.5% of new investments1 8.2% 7.9% 7.0% Weighted average interest rate on in
Slide 9: Credit Quality
Portfolio Highlights – Credit Quality Credit Quality – Investment Portfolio − Fundamental credit quality as of December 31, 2018 remained strong with non-accrual investments as a percentage of total debt investments at cost and fair value of 0.7% and 0.3%, respectively. − During the quarter ended De
Slide 10: Portfolio Risk Ratings
Portfolio Highlights – Portfolio Ratings Portfolio Risk Ratings June 30, 2018 September 30, 2018 December 31, 2018 Investments at % of Investments at % of Investments at % of Internal Fair Value Total Fair Value Total Fair Value Total Performance Rating (000s) Portfolio (000s) Portfolio (000s) Portf
Slide 11: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition As of (Dollar amounts in 000s, December 31, 2017 March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 except per share data) (unaudited) (unaudited) (unaudited) (audited) (unaudited) Assets Investments, at fair value $ 1,723,372 $ 1,759,807 $
Slide 12: Quarterly Operating Results
Quarterly Operating Results For the three months ended (Dollar amounts in 000s, December 31, 2017 March 31, 2018 June 30, 2018 September 30, 2018 December 31, 2018 except share and per share data) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment Income Interest income $ 33,354
Slide 13: Financial Performance Highlights
Financial Performance Highlights Quarterly Distributions Annualized Return on Average Equity1 $0.50 $0.44 12% $0.40 $0.40 $0.12 $0.08 9.7% $0.30 10% 5 qtr. 8.8% 9.0% wtd. avg.: $0.20 8.3% $0.32 $0.32 $0.32 $0.32 $0.32 8% 7.5% $0.10 6.5% $0.00 Q1'18 Q2'18 Q3'18 Q4'18 Q1'19 6% Q1'18 Q2'18 Q3'18 Q4'18
Slide 14: Senior Loan Fund LLC
Portfolio Highlights – Senior Loan Fund LLC − The annualized quarterly return was 0.6% for the quarter ended December 31, 2018. The quarterly return was negatively impacted by mark-to-market unrealized losses on a few portfolio company investments. − Total investments at fair value for the quarter e
Slide 15: Liquidity and Investment Capacity
Liquidity and Investment Capacity Cash and Cash Equivalents − Unrestricted cash and cash equivalents and foreign currencies totaled $13.0 million as of December 31, 2018. − Restricted cash, cash equivalents and foreign currencies totaled $40.7 million as of December 31, 2018. Restricted cash is held
Slide 16: Reduced Asset Coverage
Liquidity and Investment Capacity Reduced Asset Coverage − On February 5, 2019, stockholders approved a proposal to increase the Company’s leverage limitation under the 1940 Act by reducing its required Asset Coverage Ratio from 200% to 150%, which permits the Company to double the maximum amount of
Slide 17: Debt Facilities
Debt Facilities* 2014 Debt Securitization Tranche Rating (M/S) Par Amount ($mm) Interest Rate Stated Maturity Reinvestment Period Class A-1-R Notes Aaa/AAA $139.4 3-Month LIBOR + 0.95% April 25, 2026 April 28, 2018 Class A-2-R Notes Aaa/AAA $14.6 3-Month LIBOR + 0.95% April 25, 2026 April 28, 2018 C
Slide 18: Common Stock and Distribution Information
Common Stock and Distribution Information Common Stock Data 1 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, 20