Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q4 2024 Earnings Presentation
33 slides from Golub Capital Bdc's earnings presentation, Nov 20, 2024
Slide 1: Golub Capital BDC, Inc. Earnings Presentation
GOLUB CAPITAL BDC, INC. EARNINGS PRESENTATION QUARTER ENDED SEPTEMBER 30, 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 Q4 Earnings Review (Quarter Ended 9/30/24)
FY 2024 Q4 Earnings Review (Quarter Ended 9/30/24) 1,2 ◦ Adjusted net investment income per share of $0.47, or an Adjusted NII ROE of 12.4% Earnings Summary ◦ Key profitability drivers: ▪ Continued strong portfolio company performance ▪ High base rates ▪ Leading fee structure in place (1) base manag
Slide 5: Summary of Financial Results vs. Prior Quarter
Summary of Financial Results vs. Prior Quarter Quarter Ended June 30, 2024 September 30, 2024 Net Investment Income Per Share Net investment income per share $0.46 $0.45 1 Amortization of purchase premium per share 0.02 0.02 2 Adjusted net investment income per share A $0.48 $0.47 Net Realized/Unrea
Slide 6: GBDC Performance Drivers
GBDC Performance Drivers O 2 GOLUB CAPITAL
Slide 7: Realized Losses Drove a NAV Per Share Decrease from June 30, 2024
Realized Losses Drove a NAV Per Share Decrease from June 30, 2024 NAV Per Share Bridge $0.45 $0.02 ($0.05) ($0.05) $15.32 $0.02 $15.19 ($0.39) ($0.11) ($0.02) 1 Adjusted NII: $0.47 Total Distributions: ($0.49) Adjusted Net Realized & Unrealized Loss: 1 ($0.11) June 30, 2024 NAV Net Investment Revers
Slide 8: Summary of Financial Results for the Quarter Ended September 30, 2024
Summary of Financial Results for the Quarter Ended September 30, 2024 03
Slide 9: Summary of Quarterly Results
Summary of Quarterly Results Quarter Ended Pre-GBDC 3 Acquisition Post-GBDC 3 Acquisition September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 Net Investment Income Per Share Net investment income per share $0.49 $0.49 $0.51 $0.46 $0.45 1 Amortization of purchase prem
Slide 10: Portfolio Highlights - New Originations
Portfolio Highlights - New Originations – Total investments at fair value increased by approximately 4.7%, or $367.9 million, during the three months ended September 30, 2024. – Total investments in portfolio companies at fair value was $8.2 billion at September 30, 2024. Quarter Ended Pre-GBDC 3 Ac
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) $8,235,411 $7,8
Slide 12: Portfolio Highlights – Portfolio Diversity
Portfolio Highlights – Portfolio Diversity as of September 30, 2024 Investment Portfolio $8,235MM | 381 Portfolio Companies | Average Size 0.3% Portfolio Composition by Seniority Diversification by Portfolio Company Top 10 Portfolio Companies 1% 7% 13% 6% First Lien Traditional Senior First Lien Top
Slide 13: Portfolio Highlights – Economic Analysis
Portfolio Highlights – Economic Analysis: 14.0% 12.8% 13.0% 12.5% 12.6% 12.3% 11.9% 12.0% 12.0% 11.5% 12.4% 12.2% 11.9% 12.0% 11.0% 10.5% 11.6% 11.7% 11.1% 10.0% 10.0% 9.0% 8.0% 7.3% 7.2% 6.8% 7.0% 6.8% 6.7% 6.5% 7.0% 6.1% 5.8% 6.0% 5.4% 5.4% 5.8% 5.3% 4.9% 5.0% 4.6% 5.2% 5.2% 5.3% 5.3% 5.3% 5.1% 4.
Slide 14: Portfolio Highlights - Credit Quality
Portfolio Highlights - Credit Quality – Fundamental credit quality as of September 30, 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 September 30, 2024. – As of September 30, 2024, non-accrual investm
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 December 31, March 31, June 30, September 30, Rating 2019 2020 2021 2022 2023 2023 2024 2024 2024 5 2.7% 6.1% 10.2% 4.6% 0.9% 2.6% 2.3% 1.6% 1.9% 4 88.2% 72.8% 80.7%
Slide 16: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition As of Pre-GBDC 3 Acquisition Post-GBDC 3 Acquisition September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 (Dollar amounts in 000s, except share and per share data) (audited) (unaudited) (unaudited) (unaudited) (audited) Asse
Slide 17: Quarterly Operating Results
Quarterly Operating Results Quarter Ended Pre-GBDC 3 Acquisition Post-GBDC 3 Acquisition September 30, 2023 December 31, 2023 March 31, 2024 June 30, 2024 September 30, 2024 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investme
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% 2.8% 2.4% 2.6% 2.4% 2.9% 2.9% 2.1% 2.0%^ 2.3% 0.6% 0.3% 1.0% (10.5
Slide 19: Long History of Strong Shareholder Returns
Long History of Strong Shareholder Returns As of September 30, 2024 $34.72 1 Investors in GBDC’s 2010 IPO have achieved a 9.6% IRR on NAV $0.29 $0.68 $18.56 $14.63 $15.19 Jun-11 Mar-14 Dec-16 Sep-19 Jun-22 Jun-10 Mar-13 Dec-15 Sep-18 Jun-21 Mar-24 Mar-12 Dec-14 Sep-17 Jun-20 Mar-23 Mar-11 Dec-13 Sep
Slide 20: Liquidity and Investment Capacity
Liquidity and Investment Capacity Cash and Cash Equivalents – Unrestricted cash and cash equivalents and foreign currencies totaled $131.2 million as of September 30, 2024. – Restricted cash and cash equivalents and foreign currencies totaled $228.4 million as of September 30, 2024. Restricted cash
Slide 21: Liquidity and Investment Capacity (continued)
Liquidity and Investment Capacity (continued) Debt Facilities – Amendments – On August 6, 2024, we amended our revolving credit facility with JPMorgan to, among other things, increase the aggregate commitments outstanding to $1.8 billion from $1.5 billion and extend the maturity date to August 6, 20
Slide 22: 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 $229,985 $229,985 $— January 20, 2023 January
Slide 23: 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 24: Quarterly Variable Supplemental Distribution Framework
Quarterly Variable Supplemental Distribution Framework FY 2024 Q4 Quarterly Variable Supplemental Distribution Quarter Ended Quarter Ended June 30, 2024 September 30, 2024 Quarterly Variable Supplemental Distribution Adjusted net investment income per share $0.48 $0.47 (-) Quarterly distribution pai
Slide 25: Appendix: Endnotes
Appendix: Endnotes A GOLUB CAPITAL
Slide 26: Endnotes - FY 2024 Q4 Earnings Review (Quarter Ended 9/30/24)
Endnotes - FY 2024 Q4 Earnings Review (Quarter Ended 9/30/24) 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 27: Endnotes - NAV Roll
Endnotes - NAV Roll 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 financial measures. 2. Refer to slide 23 for
Slide 28: Endnotes - Summary of Financial Results vs. Prior Quarter
Endnotes - Summary of Financial Results vs. Prior Quarter 1. On September 16, 2019 and June 3, 2024, Golub Capital BDC, Inc. (“we”, “us”, “our”, the “Company” or “GBDC”) completed its acquisitions of Golub Capital Investment Corporation (“GCIC”) and Golub Capital BDC 3, Inc. (“GBDC 3”), respectively
Slide 29: Endnotes - Non-GAAP Financial Measures
Endnotes - Non-GAAP Financial Measures 1. On September 16, 2019 and June 3, 2024, the Company completed its acquisitions of GCIC and GBDC 3, respectively. Each acquisition was accounted for under the asset acquisition method of accounting in accordance with Accounting Standards Codification (“ASC”)
Slide 30: Endnotes - Quarterly Operating Results
Endnotes - Quarterly Operating Results 1. For the quarters ended March 31, 2024, June 30, 2024 and September 30, 2024, GC Advisors unilaterally agreed to irrevocably waive $5.2 million, and $14.4 million and $7.8 million of income incentive fees, respectively, calculated under the Investment Advisor
Slide 31: Endnotes - Portfolio Highlights - New Originations
Endnotes - Portfolio Highlights - New Originations 1. Net funds growth includes the impact of new investments and exits of investments as noted in the table above, as well as other variables such as net funding on revolvers, net change in unamortized fees, net change in unrealized appreciation (depr
Slide 32: Endnotes - Portfolio Highlights Economic Analysis
Endnotes - Portfolio Highlights Economic Analysis 1. The income yield presented for the quarter ended September 30, 2023 excludes the one-time recognition of $3.7 million of previously deferred interest income resulting from a former non-accrual loan returning to accrual status, which is included in
Slide 33: Endnotes - Debt Capital Structure
Endnotes - Debt Capital Structure 1. Interest rate for securitizations represents the weighted average spread over 3-month Secured Overnight Financing Rate (“SOFR”) for the various tranches of issued notes, excluding tranches retained by the Company. SOFR borrowings under the securitizations are sub