Golub Capital Bdc, Inc. · NASDAQ:GBDC
Golub Capital Bdc — Q2 FY2023 Earnings Presentation
26 slides from Golub Capital Bdc's earnings presentation, May 8, 2023
Slide 1: Golub Capital BDC, Inc. Earnings Presentation, Quarter Ended March 31, 2023
Confidential | for discussion purposes only GOLUB CAPITAL BDC, INC. EARNINGS PRESENTATION QUARTER ENDED MARCH 31, 2023
Slide 2: Forward-looking statements
2 Such forward-looking statements may include statements preceded by, followed by or that otherwise include the words “may,” “might,” “will,” “intend,” “should,” “could,” “can,” “would,” “expect,” “believe,” “estimate,” “anticipate,” “predict,” “potential,” “plan” or similar words. We have based the
Slide 3: Summary of Financial Results
Summary of Financial Results 01
Slide 4: Summary of Financial Results vs. Prior Quarter
4 Quarter Ended December 31, 2022 March 31, 2023 Net Investment Income Per Share Net investment income per share $0.36 $0.41 Amortization of purchase premium per share1 0.01 0.01 Adjusted net investment income per share2 $0.37 $0.42 Accrual (reversal) for capital gain incentive fee per share — — Adj
Slide 5: GBDC Performance Drivers
GBDC Performance Drivers GOLU 02
Slide 6: Drivers of GBDC's FQ2 2023 Earnings
6 Drivers of GBDC’s FQ2 2023 Earnings Key Themes from Quarter Ended March 31, 2023 Key GBDC-Specific Takeaways ■ Overall, Golub Capital’s middle market borrowers experienced continued strength in year-over-year earnings growth1 ■ As expected, we are seeing increased dispersion of credit performance
Slide 7: NAV Per Share Bridge
7 $14.71 $0.41 $0.01 ($0.33) ($0.03) ($0.04) ($0.01) $0.01 $14.73 December 31, 2022 NAV Net Investment Income Reversal of Amortization of Purchase Premium Dividends Paid During March 31, 2023 Quarter Net Realized Gain (Loss) on Investments Net Change in Unrealized Appreciation (Depreciation) on Inve
Slide 8: Summary of Financial Results for the Quarter Ended
Summary of Financial Results for the Quarter Ended March 31, 2023 03
Slide 9: Summary of Quarterly Results
9 Summary of Quarterly Results Quarter Ended March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 Net Investment Income Per Share Net investment income per share $0.25 $0.32 $0.32 $0.36 $0.41 Amortization of purchase premium per share1 0.02 0.02 0.01 0.01 0.01 Adjusted ne
Slide 10: Portfolio Highlights - New Originations
10 Portfolio Highlights - New Originations Quarter Ended March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 Select Portfolio Funds Roll Data (in millions) New Investment Commitments $323.3 $449.6 $176.7 $247.0 $157.4 Exits and Sales of Investments 122.2 171.2 305.6 253.
Slide 11: Portfolio Highlights – Investment Mix
11 $5,426,159 $5,613,550 $5,446,356 $5,451,946 $5,486,352 March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 $0 $500,000 $1,000,000 $1,500,000 $2,000,000 $2,500,000 $3,000,000 $3,500,000 $4,000,000 $4,500,000 $5,000,000 $5,500,000 $6,000,000 Portfolio Highlights – Inves
Slide 12: Portfolio Highlights – Portfolio Diversity
12 Software 27% Healthcare Providers and Services 8% Specialty Retail 6% Automobiles 5% IT Services 5% Diversified Consumer Services 5% Insurance 4% Health Care Technology 4% Commercial Services and Supplies 3% Portfolio Highlights – Portfolio Diversity as of March 31, 2023 Investment Portfolio $5,4
Slide 13: Portfolio Highlights – Economic Analysis: Positioned for Higher Interest Rates
13 See the slide titled “Endnotes - Portfolio Highlights Economic Analysis” at the end of this presentation for footnotes. Portfolio Highlights – Economic Analysis: Positioned for Higher Interest Rates 7.9% 7.7% 7.7% 7.3% 7.5% 9.2% 10.5% 11.5% 7.4% 7.2% 7.1% 6.9% 7.1% 8.4% 10.0% 11.1% 5.1% 4.9% 5.0%
Slide 14: Portfolio Highlights - Credit Quality
14 Portfolio Highlights - Credit Quality Quarter Ended March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 Non-Accrual - Debt Investments Non-accrual investments at amortized cost (000s) $76,284 $80,791 $96,956 $145,572 $142,432 Non-accrual investments / total debt inves
Slide 15: Portfolio Highlights – Portfolio Ratings
15 Portfolio Highlights – Portfolio Ratings * Represents an amount less than 0.1%. Internal Performance Ratings (% of Portfolio at Fair Value) Internal Performance Rating Definitions At Fiscal Year End At Quarter End Rating 2018 2019 2020 2021 2022 December 31, 2022 March 31, 2023 5 6.4% 2.7% 6.1% 1
Slide 16: Quarterly Statements of Financial Condition
16 Quarterly Statements of Financial Condition As of (Dollar amounts in 000s, except share and per share data) March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 (unaudited) (unaudited) (audited) (unaudited) (unaudited) Assets Investments, at fair value $5,426,159 $5,61
Slide 17: Quarterly Operating Results
17 Quarterly Operating Results Quarter Ended (Dollar amounts in 000s, except share and per share data) March 31, 2022 June 30, 2022 September 30, 2022 December 31, 2022 March 31, 2023 (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment Income Interest income $88,679 $97,568 $119,9
Slide 18: Financial Performance Highlights
18 Financial Performance Highlights * The quarterly return on equity for the periods up to and including the quarter ended June 30, 2019 are calculated as (a) the net increase in net assets resulting from operations (i.e., net income) for the period presented divided by (b) the daily average of tota
Slide 19: Long History of Strong Shareholder Returns
19 Long History of Strong Shareholder Returns 1. The 9.3% internal rate of return (“IRR”) on NAV is calculated using beginning of period NAV, distributions paid during the period and ending period NAV. Period beginning June 30, 2010 and ending March 31, 2023. GBDC made its initial public offering on
Slide 20: Liquidity and Investment Capacity
20 Liquidity and Investment Capacity Cash and Cash Equivalents – Unrestricted cash and cash equivalents and foreign currencies totaled $87.5 million as of March 31, 2023. – Restricted cash and cash equivalents totaled $50.2 million as of March 31, 2023. Restricted cash is held in our securitization
Slide 21: Stable, Highly Flexible and Low-Cost Funding Structure
21 GBDC Has a Stable, Highly Flexible and Low-Cost Funding Structure GBDC Debt Capital Structure* Funding Source Debt Commitment Outstanding Par Undrawn Commitment Reinvestment Period Stated Maturity Interest Rate1 Securitizations: 2018 Debt Securitization $408,200 $408,200 $— January 20, 2023 Janua
Slide 22: Common Stock and Distribution Information
22 Common Stock and Distribution Information Date Declared Record Date Payment Date Amount Per Share Frequency Total Amount (in 000s) May 7, 2021 June 11, 2021 June 29, 2021 $0.29 Quarterly $48,787 August 6, 2021 September 8, 2021 September 29, 2021 $0.29 Quarterly $49,055 November 19, 2021 December
Slide 23: Appendix: Endnotes
Appendix: Endnotes A GOLUB CAPITAL
Slide 24: Endnotes - Non-GAAP Financial Measures
24 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
Slide 25: Endnotes - Drivers of GBDC's FQ2 2023 Earnings
25 Endnotes - Drivers of GBDC’s FQ2 2023 Earnings 1. Please see the Q1 2023 Golub Capital Middle Market Report (which is available on Golub Capital’s website at www.golubcapital.com) for additional details. The Golub Capital Middle Market Report for Q1 2023 compared January 2023 and February 2023 re
Slide 26: Endnotes - Portfolio Highlights Economic Analysis
26 Endnotes - Portfolio Highlights Economic Analysis 1. The weighted average cost of debt and weighted average net investment spread presented for the quarter ended September 30, 2021 exclude $3.6 million of accelerated capitalized debt issuance costs that resulted from the August 26, 2021 early red