Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q1 2020 Earnings Presentation
21 slides from Golub Capital Bdc's earnings presentation, Feb 11, 2020
Slide 1: Golub Capital BDC, Inc. Investor Presentation
GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED DECEMBER 31, 2019
Slide 2: Disclaimer
Disclaimer Some of the statements in this presentation constitute forward-looking statements, have filed or in the future may file with the Securities and Exchange Commission which relate to future events or our future performance or financial condition. The (“SEC”), including annual reports on Form
Slide 3: Summary of Quarterly Results
Summary of Quarterly Results Pre-Acquisition Post-Acquisition1 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Net Investment Income Per Share Net investment income per share $0.33 $0.33 $0.32 $0.37 $0.24 Amortization of purchase premium per share2 - - - 0.02 0.09 Accrual for (reversal of) capital gain ince
Slide 4: Portfolio Highlights – New Originations
Portfolio Highlights – New Originations New Originations Data and Net Funds Growth − New investment commitments totaled $271.1 million for the quarter ended December 31, 2019 − Total investments at fair value increased by approximately 3.6%, or $155.4 million, during the three months ended December
Slide 5: Portfolio Highlights – Portfolio Diversity as of December 31, 2019
Portfolio Highlights – Portfolio Diversity as of December 31, 2019 Pre-Acquisition Post-Acquisition Investment Portfolio Statistics Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 Investments in Portfolio Companies at Fair Value (000s) $1,849,564 $1,883,271 $1,851,079 $4,169,287 $4,329,238 Investments in Se
Slide 6: Portfolio Highlights – Portfolio Diversity as of December 31, 2019
Portfolio Highlights – Portfolio Diversity as of December 31, 2019 Investment Portfolio $4,329mm1 // 250 Investments1 – Average Size $17.3mm Portfolio Composition by Seniority Diversification by Obligor SLFs Top 10 2% 3% 3% Investments 18% 12% First Lien Traditional Senior First Lien 95% One Stop To
Slide 7: Portfolio Highlights – Economic Analysis
Portfolio Highlights – Economic Analysis Economic Analysis 10.0% 9.3% 9.2% 9.2% 9.1% 9.1% 8.8% 8.8% 9.0% 8.4% 8.8% 8.8% 8.0% 8.5% 8.6% 8.6% 8.4% 8.2% 8.0% 7.0% 6.0% 5.0% 5.0% 5.0% 5.0% 5.0% 4.8% 4.8% 5.0% 4.4% 4.0% 4.1% 4.3% 4.3% 4.2% 4.2% 3.9% 4.0% 4.0% 3.0% 2.8% 2.0% 2.6% 2.3% 2.3% 2.4% 2.3% 2.1%
Slide 8: Portfolio Highlights – Credit Quality
Portfolio Highlights – Credit Quality Credit Quality – Investment Portfolio − Fundamental credit quality remained strong with over 90% of the investments in our portfolio continuing to have an Internal Performance Rating1 of 4 or higher as of December 31, 2019. − During the quarter ended December 31
Slide 9: Portfolio Highlights – Portfolio Ratings
Portfolio Highlights – Portfolio Ratings Internal Performance Ratings (% of Portfolio at Fair Value) At Fiscal Year End At Quarter End Rating 2014 2015 2016 2017 2018 Q1 2019 Q2 2019 Q3 2019 Q4 2019 Q1 2020 5 9.7% 8.8% 5.7% 5.5% 6.4% 5.6% 6.0% 3.7% 2.7% 4.0% 4 84.9% 84.9% 83.1% 81.8% 81.6% 84.0% 84.
Slide 10: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition As of Pre-Acquisition Post-Acquisition December 31, 2018 March 31, 2019 June 30, 2019 September 30, 2019 December 31, 2019 (Dollar amounts in 000s, except per share data) (unaudited) (unaudited) (unaudited) (audited) (unaudited) Assets Investments, at fair
Slide 11: Quarterly Operating Results
Quarterly Operating Results For the three months ended Pre-Acquisition Post Acquisition December 31, March 31, June 30, September 30, December 31, 2018 2019 2019 2019 2019 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment
Slide 12: Financial Performance Highlights
Financial Performance Highlights NAV Per Common Share $17.50 $17.21 $17.24 $17.00 $16.43 $16.76 $16.50 $16.33 $16.66 $15.96 $16.00 $15.80 $16.08 $16.10 $15.96 $15.55 $15.80 $15.50 $15.21 $15.55 $15.21 $15.00 $14.71 $14.63 $14.60 $14.56 $14.71 $14.50 $14.63 $14.60 $14.56 $14.00 IPO Q4 Q4 Q4 Q4 Q4 Q4
Slide 13: Financial Performance Highlights (Continued)
Financial Performance Highlights (Continued) Annualized Return on Average Equity and Quarterly Distributions (Last 5 Years) $1.00 10.1% 9.6% 9.7% 10% 9.5% 9.2% 9.3% 9.0% 9.0% 9.8% 8.6% 8.8% 8.8% Average = 8.6% 8.6% 8.4% $0.80 7.9% 8% 7.5% 7.5% 7.5% 7.0% $0.57 $0.60 6% 6.5% $0.46 $0.44 $0.25 $0.40 $0
Slide 14: Portfolio Highlights – Investments in Senior Loan Funds
Portfolio Highlights – Investments in Senior Loan Funds − The annualized quarterly returns for GBDC SLF and GCIC SLF were 2.4% and 10.1%, respectively, for the quarter ended December 31, 2019. Total investments at fair value for GBDC SLF and GCIC SLF as of December 31, 2019 were $116.3 million and $
Slide 15: Liquidity and Investment Capacity
Liquidity and Investment Capacity Cash and Cash Equivalents − Unrestricted cash and cash equivalents and foreign currencies totaled $19.4 million as of December 31, 2019. − Restricted cash, cash equivalents and foreign currencies totaled $113.8 million as of December 31, 2019. Restricted cash is hel
Slide 16: Debt Capital Structure
Debt Capital Structure * Key Funding Vehicles Debt Outstanding Undrawn Funding Source Commitment Par Commitment Reinvestment Period Stated Maturity Interest Rate1 Securitizations: 2014 Debt Securitization $ 119,788 $ 119,788 $ - April 28, 2018 April 25, 2026 3 Month LIBOR + 1.08% 2018 Debt Securitiz
Slide 17: Common Stock and Distribution Information
Common Stock and Distribution Information Common Stock Data1 Fiscal Year Ended September 30, 2019 High Low End of Period First Quarter $19.01 $16.38 $16.49 Second Quarter $18.65 $16.62 $17.88 Third Quarter $18.43 $17.34 $17.80 Fourth Quarter $18.97 $17.72 $18.84 Fiscal Year Ended September 30, 2020
Slide 18: Appendix: Endnotes and Illustration of the Purchase Accounting for the GCIC Acquisition
A Appendix: Endnotes and Illustration of the Purchase Accounting for the GCIC Acquisition
Slide 19: 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 805-50, Business Combinations — Related Issues. Under ass
Slide 20: Accounting Treatment of the Purchase Premium
Accounting Treatment of the Purchase Premium Recognize One- Acquisition of Determine GBDC’s Time Write-Down GCIC Assets at a Cost Basis in of Purchase Premium Acquired Assets Premium Write Down to Fair Value One-Time Purchase Unrealized Loss Premium on Purchase Premium GBDC Cost Basis = Purchase Pre
Slide 21: Illustrative Income Statement Impact and Supplemental Non-GAAP Financial Measures
Illustrative Income Statement Impact and Supplemental Non- GAAP Financial Measures As a supplement to U.S. generally accepted accounting principles (“GAAP”) financial measures, the Company is providing the following non- GAAP financial measures: A B Expected to be equal and offsetting amounts A Purc