Rand Capital Corporation · NASDAQ:RAND
Rand Capital — Q2 2022 Earnings Presentation
14 slides from Rand Capital's earnings presentation, Aug 8, 2022
Slide 1: Second Quarter 2022 Financial Results
SECOND QUARTER 2022 FINANCIAL RESULTS August 8, 2022 Daniel P. Penberthy President & CEO Margaret W. Brechtel EVP & CFO © 2022 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: Second Quarter 2022 Execution
SECOND QUARTER 2022 EXECUTION Total investment income up 67% to $1.4 million • Portfolio expansion focused on income producing assets Net asset value per share was $22.34* $2.2 million debt investment made in Q2 Secured $25 million senior secured revolving credit facility to support future p
Slide 4: Portfolio Mix
PORTFOLIO MIX Fair Value Portfolio Mix ($ in millions) $62.4 $59.0 Portfolio fair value decreased 6% primarily due to change in $11.8 $6.1 ACV Auctions’ market value, and stock sales. $20.7 $20.6 Mix at quarter-end, based on fair value: $29.9 $32.3 55% Fixed-rate debt investments Q1 2022 Q2 2022 35%
Slide 5: Q2 2022 Investments & Exits
Q2 2022 INVESTMENTS & EXITS Investments Follow on debt investment of $2.2 million, making Seybert’s the largest Rand interest yielding debt holding Exits Sold remaining interest, Liquidated two publicly traded BDC’s Sold 86,000 shares at average which netted $190,000 gain for total proceeds of $922,
Slide 6: Diversified Portfolio
DIVERSIFIED PORTFOLIO Investments by Industry Classification June 30, 2022 March 31, 2022 Healthcare Healthcare 2% Other 1% 2% Other 1% Public BDC Public BDC stocks 7% stocks 9% Automotive Software 18% Automotive Software 23% 12% 11% Professional Consumer Consumer Services Products 12% Professional
Slide 7: Top Five Portfolio Investments
TOP FIVE PORTFOLIO INVESTMENTS Investments at Year % of Total Company Industry Investment Type ($ in millions) Fair Value Acquired Portfolio Professional Services – Equity – Tilson $8.9 2015 Cellular info systems, 15% construction, mgmt. paying dividend Term note Consumer Product – Billiard Seybert’
Slide 8: Financial Review
FINANCIAL REVIEW © 2022 Rand Capital Corporation Nasdaq: RAND
Slide 9: Second Quarter Financial Summary
SECOND QUARTER FINANCIAL SUMMARY ($ in thousands, except per share data) Q2 2022 Q2 2021 Total investment income $ 1,353 $ 811 Total investment income grew 67% • Driven by increased interest income from portfolio Total expenses (96) 1,620 companies and higher dividend income Net investment income (l
Slide 10: Net Asset Value Change: Q2 2022
NET ASSET VALUE CHANGE: Q2 2022 ($ in thousands) $1,418 $1,540 ($4,855) $59,948 ($387) $57,664 Net assets at Net investment Net realized gain on Net change in Cash dividend Net assets at 3/31/2022 income sales and unrealized 6/30/2022 dispositions of appreciation on $59,947,726 $57,664,184 investmen
Slide 11: Strong and Flexible Balance Sheet
STRONG AND FLEXIBLE BALANCE SHEET Net Asset Value Composition At June 30, 2022 Per Share Assets and Liabilities $0.46 $1.2 million consolidated cash Publicly-traded equity securities of $6.1 million available for future liquidity opportunities $2.36 $6.1 million in public equity investments “Liquid”
Slide 12: Supplemental Information
SUPPLEMENTAL INFORMATION © 2022 Rand Capital Corporation Nasdaq: RAND
Slide 13: Adjusted Net Investment Income per Share (Non-GAAP)
ADJUSTED NET INVESTMENT INCOME PER SHARE (N -GAAP*) ON Three months ended Three months ended June 30, 2022 June 30, 2021 Net investment income (loss) per share $ 0.55 $ (0.31) Exclude (credits) expenses for capital gains incentive fees per share (0.26) 0.41 Adjusted net investment income per share $
Slide 14: Adjusted Expenses (Non-GAAP)
ADJUSTED EXPENSES (N -GAAP*) ON Three months ended Three months ended June 30, 2022 June 30, 2021 Total (credits) expenses $ (96,198) $ 1,619,958 Exclude (credits) expenses for capital gains incentive fees (663,000) 1,060,000 Adjusted expenses $ 566,802 $ 559,958 *In addition to reporting total expe