Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q2 2024 Earnings Presentation
28 slides from Golub Capital Bdc's earnings presentation, May 7, 2024
Slide 1: Golub Capital BDC, Inc. Earnings Presentation
GOLUB CAPITAL BDC, INC. EARNINGS PRESENTATION QUARTER ENDED MARCH 31, 2024
Slide 2: Disclaimer
Disclaimer Some of the statements in this presentation constitute forward-looking statements, Such forward-looking statements may include statements preceded by, followed by which relate to future events or our future performance or financial condition. The or that otherwise include the words “may,”
Slide 3: Summary of Financial Results
Summary of Financial Results 01
Slide 4: FY 2024 Q2 Earnings Review (Quarter Ended 3/31/24)
FY 2024 Q2 Earnings Review (Quarter Ended 3/31/24) 1,2 ◦ Adjusted net investment income per share of $0.51, or an Adjusted NII ROE over 13% Earnings Summary ▪ Increase of $0.01 from $0.50 per share for the quarter ended December 31, 2023 ▪ Increase of $0.09 from $0.42 per share for the quarter ended
Slide 5: Summary of Financial Results vs. Prior Quarter
Summary of Financial Results vs. Prior Quarter Quarter Ended December 31, 2023 March 31, 2024 Net Investment Income Per Share Net investment income per share $0.49 $0.51 1 Amortization of purchase premium per share 0.01 0.00* 2 Adjusted net investment income per share A $0.50 $0.51 Accrual (reversal
Slide 6: GBDC Performance Drivers
GBDC Performance Drivers O 2 GOLUB CAPITAL
Slide 7: NII Drove a NAV Per Share Increase (NAV Per Share Bridge)
NII Drove a NAV Per Share Increase from December 31, 2023 NAV Per Share Bridge $0.51 $0.00* ($0.07) $0.12 ($0.00)* $15.12 ($0.39) $15.03 ($0.08) 1 Adjusted NII: $0.51 Total Distributions: ($0.46) Adjusted Net Realized & Unrealized Gain: $0.04 December 31, Net Investment Reversal of FY 2024 Q1 Quarte
Slide 8: Summary of Financial Results for the Quarter Ended March 31, 2024
Summary of Financial Results for the Quarter Ended March 31, 2024 03
Slide 9: Summary of Quarterly Results
Summary of Quarterly Results Quarter Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 Net Investment Income Per Share Net investment income per share $0.41 $0.43 $0.49 $0.49 $0.51 1 Amortization of purchase premium per share 0.01 0.01 0.01 0.01 0.00* Adjusted ne
Slide 10: Portfolio Highlights - New Originations
Portfolio Highlights - New Originations – Total investments at fair value decreased by approximately 0.9%, or $48.7 million, during the three months ended March 31, 2024. Quarter Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 Select Portfolio Funds Roll Data (
Slide 11: Portfolio Highlights – Investment Mix
Portfolio Highlights – Investment Mix – The portfolio continues to be focused on first lien, senior secured loans to what we believe to be healthy, resilient middle market companies backed by strong, partnership-oriented private equity sponsors. Historical Investment Portfolio ($000) $6,000,000 $5,4
Slide 12: Portfolio Highlights – Portfolio Diversity as of March 31, 2024
Portfolio Highlights – Portfolio Diversity as of March 31, 2024 Investment Portfolio $5,395MM | 366 Portfolio Companies | Average Size 0.3% Portfolio Composition by Seniority Diversification by Portfolio Company Top 10 Portfolio Companies 1% 6% 16% 8% First Lien Traditional Senior First Lien Top 25
Slide 13: Portfolio Highlights – Economic Analysis
Portfolio Highlights – Economic Analysis: 12.5% 12.6% 12.8% 13.0% 11.9% 12.0% 11.5% 12.4% 12.2% 11.9% 11.0% 10.5% 11.6% 11.1% 10.0% 9.2% 10.0% 9.0% 8.0% 7.5% 8.4% 7.3% 7.2% 7.3% 6.7% 6.8% 7.0% 7.1% 6.1% 6.0% 5.5% 5.4% 5.4% 5.5% 5.3% 4.9% 5.0% 4.5% 4.6% 5.2% 5.3% 5.3% 5.1% 3.7% 4.8% 4.0% 4.4% 3.0% 3.
Slide 14: Portfolio Highlights - Credit Quality
Portfolio Highlights - Credit Quality – Fundamental credit quality as of March 31, 2024 remained strong with over 87% of the investments in our portfolio at fair value having an 1 Internal Performance Rating of 4 or higher as of March 31, 2024. – As of March 31, 2024, non-accrual investments remaine
Slide 15: Portfolio Highlights – Portfolio Ratings
Portfolio Highlights – Portfolio Ratings Internal Performance Ratings (% of Portfolio at Fair Value) At Fiscal Year End At Quarter End Rating 2019 2020 2021 2022 2023 December 31, 2023 March 31, 2024 5 2.7% 6.1% 10.2% 4.6% 0.9% 2.6% 2.3% 4 88.2% 72.8% 80.7% 86.8% 84.2% 83.3% 84.9% 3 7.9% 19.7% 8.1%
Slide 16: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition As of March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (audited) (unaudited) (unaudited) Assets Investments, at fair value $5,486,352 $5,525,0
Slide 17: Quarterly Operating Results
Quarterly Operating Results Quarter Ended March 31, 2023 June 30, 2023 September 30, 2023 December 31, 2023 March 31, 2024 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment Income Interest income $143,661 $151,937 $161,75
Slide 18: Financial Performance Highlights
Financial Performance Highlights Quarterly Return on Equity and Quarterly Distributions (Last 5 Years) Regular Distribution Special Distribution Supplemental Distribution Quarterly Return on Equity* 6.7% 4.0% 3.9% 3.8% 3.3% 4.0% 3.7% 2.2% 2.8% 2.4% 2.6% 2.4% 2.9% 2.9% 2.0% 2.1% 0.6% 0.3% 1.0% (10.5)
Slide 19: Long History of Strong Shareholder Returns
Long History of Strong Shareholder Returns As of March 31, 2024 $33.66 1 Investors in GBDC’s 2010 IPO have achieved a 9.5% IRR on NAV $0.18 $0.58 $17.78 $14.63 $15.12 Mar-22 Dec-17 Sep-13 Sep-23 Mar-15 Jun-19 Dec-10 Dec-20 Sep-16 Jun-12 Mar-18 Jun-22 Dec-13 Dec-23 Sep-19 Mar-11 Jun-15 Mar-21 Dec-16
Slide 20: Liquidity and Investment Capacity
Liquidity and Investment Capacity Cash and Cash Equivalents – Unrestricted cash and cash equivalents and foreign currencies totaled $300.7 million as of March 31, 2024. – Restricted cash and cash equivalents totaled $159.6 million as of March 31, 2024. Restricted cash is held in our securitization v
Slide 21: GBDC Has a Stable, Highly Flexible and Low-Cost Funding Structure
GBDC Has a Stable, Highly Flexible and Low-Cost Funding Structure GBDC Debt Capital Structure* Undrawn 1 Funding Source Debt Commitment Outstanding Par Commitment Reinvestment Period Stated Maturity Interest Rate Securitizations: 2018 Debt Securitization $346,983 $346,983 $— January 20, 2023 January
Slide 22: Common Stock and Distribution Information
Common Stock and Distribution Information 1 Common Stock Price Data Fiscal Year Ending September 30, 2023 High Low End of Period First Quarter $14.25 $12.46 $13.16 Second Quarter $14.09 $12.38 $13.56 Third Quarter $13.55 $13.02 $13.50 Fourth Quarter $15.02 $13.37 $14.67 Fiscal Year Ending September
Slide 23: Quarterly Variable Supplemental Distribution Framework
Quarterly Variable Supplemental Distribution Framework FY 2024 Q2 Quarterly Variable Supplemental Distribution Quarter Ended Quarter Ended December 31, 2023 March 31, 2024 Quarterly Variable Supplemental Distribution Adjusted net investment income per share $0.50 $0.51 (-) Quarterly distribution pai
Slide 24: Appendix: Endnotes
Appendix: Endnotes A GOLUB CAPITAL
Slide 25: Endnotes - FY 2024 Q2 Earnings Review (Quarter Ended 3/31/24)
Endnotes - FY 2024 Q2 Earnings Review (Quarter Ended 3/31/24) 1. As a supplement to GAAP financial measures, the Company is providing additional non-GAAP measures. See the slide titled “Endnotes – Non-GAAP Financial Measures” at the end of this presentation for further description on the non-GAAP fi
Slide 26: Endnotes - Non-GAAP Financial Measures
Endnotes - 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 (“ASC”) 805-50, Business Combinations — Related Issues. U
Slide 27: Endnotes - Portfolio Highlights Economic Analysis
Endnotes - Portfolio Highlights Economic Analysis 1. The income yield presented for the quarter ended September 30, 2022 excludes the one-time recognition of $2.0 million of previously deferred interest income resulting from the repayment and refinancing of former non-accrual loans, which are includ
Slide 28: Endnotes - Debt Capital Structure
Endnotes - Debt Capital Structure 1. Interest rate for securitizations represents the weighted average spread over 3-month SOFR for the various tranches of issued notes, excluding tranches retained by the Company. SOFR borrowings under the securitizations are subject to an additional spread adjustme