Rand Capital Corporation · NASDAQ:RAND
Rand Capital — Q2 2024 Earnings Presentation
17 slides from Rand Capital's earnings presentation, Aug 6, 2024
Slide 1: Second Quarter 2024 Financial Results
SECOND QUARTER 2024 FINANCIAL RESULTS August 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: Consistent Execution Drove Strong Q2 Results
CONSISTENT EXECUTION DROVE STRONG Q2 RESULTS (Results compared with the prior-year period unless otherwise noted) ✓ Growth in interest income from continued deployment into debt investments • Total investment income up 18% to $2.1 million over the prior-year period ✓ Net asset value per share was $2
Slide 4: Delivering Cash Dividends
DELIVERING CASH DIVIDENDS (Results compared with the prior-year period unless otherwise noted) ✓ Paid Q2 2024 dividend of $0.29 per share ✓ On July 31, 2024, declared third quarter cash dividend of $0.29 per share • To be paid on or about September 13, 2024, to shareholders of record as of August 30
Slide 5: Portfolio Mix
PORTFOLIO MIX Fair Value Portfolio Mix ($ in millions) $82.8 $87.1 $1.3 Fair value increase reflects a follow-on investment and valuation $4.5 $20.7 $28.4 adjustments on several portfolio companies Mix at quarter-end, based on fair value: $57.6 $57.3 66% Fixed-rate debt investments 32% Equity invest
Slide 6: Q2 2024 Portfolio Activity
Q2 2024 PORTFOLIO ACTIVITY Investment Provider of services for commercial kitchens and new builds Funded follow-on equity investment of $108 thousand Total debt and equity investments had a fair value of $7.5 million Exits / Repayments Partial asset sale drove realized gain of $397,000 Received $740
Slide 7: Diversified Portfolio
DIVERSIFIED PORTFOLIO Investments by Industry Classification June 30, 2024 March 31, 2024 Software, 3% Public BDC Stocks 2% Automotive Automotive Public BDC Software 4% 4% Stocks 4% 5% Distribution, 9% Distribution Professional Services 9% Consumer Products Professional Services 43% 14% 43% Consumer
Slide 8: Top Five Portfolio Investments
TOP FIVE PORTFOLIO INVESTMENTS Investments at Year % of Total Company Industry Investment Type ($ in millions) Fair Value Acquired Portfolio Professional Services – Cellular Equity – Tilson $12.3 2015 info systems, construction, 14% mgmt. paying dividend Equity Manufacturing – SciAps, Inc. $10.8 201
Slide 9: Financial Review
FINANCIAL REVIEW © 2024 Rand Capital Corporation Nasdaq: RAND
Slide 10: Second Quarter Financial Summary
SECOND QUARTER FINANCIAL SUMMARY ($ in thousands, except per share data) Q2 2024 Q2 2023 Total investment income $ 2,136 $ 1,815 Total investment income grew 18% • Driven by a 35% increase in interest from Total expenses 2,653 1,307 portfolio companies Net investment (loss) income¹ (517) 493 Total e
Slide 11: Net Asset Value Change: Q2 2024
NET ASSET VALUE CHANGE: Q2 2024 ($ in thousands) $7,827 $68,559 $61,569 $428 ($748) ($517) Net assets at Net investment loss Net realized gain on Net change in Cash dividend Net assets at 3/31/2024 sales and dispositions unrealized 6/30/2024 $61,569,339 of investments appreciation on $68,558,616 inv
Slide 12: Strong and Flexible Balance Sheet
STRONG AND FLEXIBLE BALANCE SHEET Net Asset Value Composition At June 30, 2024 Total assets increased 8% to $90.8 million Per Share Assets and Liabilities Publicly-traded equity securities of $1.3 million available for future liquidity opportunities $0.89 $2.3 million consolidated cash At June 30, 2
Slide 13: 2024 Objectives
2024 OBJECTIVES ✓ Continue to replicate our past success by increasing our portfolio composition with new debt investments ✓ Continue to evaluate current portfolio company equity holdings and M&A market conditions to further drive portfolio equity returns ✓ Put capital to work: • Leverage anticipate
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 Six months Six months ended ended ended ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Total expenses $ 2,652,782 $ 1,306,741 $ 3,879,638 $ 2,354,586 Exclude expenses for capital gains incentive fees 1,641,000 491,000 1,753,300
Slide 16: Adjusted Net Investment Income Per Share (Non-GAAP)
ADJUSTED NET INVESTMENT INCOME PER SHARE (N -GAAP*) ON Three months Three months Six months Six months ended ended ended ended June 30, 2024 June 30, 2023 June 30, 2024 June 30, 2023 Net investment (loss) income per share $ (0.20) $ 0.19 $ 0.12 $ 0.47 Exclude expenses for capital gains incentive fee
Slide 17: Second Quarter 2024 Financial Results
SECOND QUARTER 2024 FINANCIAL RESULTS August 6, 2024 Daniel P. Penberthy President & CEO Margaret W. Brechtel EVP & CFO © 2024 Rand Capital Corporation Nasdaq: RAND