Slide 1: Second Quarter 2023 Financial Results
SECOND QUARTER 2023 FINANCIAL RESULTS August 4, 2023 Daniel P. Penberthy President & CEO Margaret W. Brechtel EVP & CFO © 2023 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 2023 Execution
SECOND QUARTER 2023 EXECUTION Total investment income increased 34% to $1.8 million over the 2022 second quarter • Driven by strong growth in interest and fee income Net investment income per share was $0.19 compared with $0.55 in the prior-year period; Adjusted net income per share was $0.38, u
Slide 4: Portfolio Mix
PORTFOLIO MIX Fair Value Portfolio Mix ($ in millions) $68.2 $66.8 Fair value change reflects valuation adjustments on ACV Auctions and $7.8 $7.4 Open Exchange, as well as Dealer Solutions and Design (DSD) sale, $21.0 $19.2 partially offset by new investment in INEA $39.4 $40.2 Mix at quarter-end, b
Slide 5: Q2 2023 Investments & Exits
Q2 2023 INVESTMENTS & EXITS Investments Funded $4.3 million, consisting of $3.3 million of senior subordinated debt and $1.0 million of preferred equity A stocking distributor of controlled expansion alloys, electronic grade nickels, refractory grade metals and alloys, and soft magnetic alloys Follo
Slide 6: Diversified Portfolio
DIVERSIFIED PORTFOLIO Investments by Industry Classification June 30, 2023 March 31, 2023 Public BDC Public BDC Automotive 5% stocks stocks 6% 6% Distribution Professional Software 11% Professional 7% Services Services 32% Automotive 32% Software 9% 12% Consumer Products Consumer 15% Manufacturing M
Slide 7: Top Five Portfolio Investments
TOP FIVE PORTFOLIO INVESTMENTS Investments at Year % of Total Company Industry Investment Type ($ in millions) Fair Value Acquired Portfolio Professional Services – Cellular Equity – Tilson $10.6 2015 info systems, construction, 16% mgmt. paying dividend Term note Consumer Product – Billiard Seybert
Slide 8: Financial Review
FINANCIAL REVIEW © 2023 Rand Capital Corporation Nasdaq: RAND
Slide 9: Second Quarter Financial Summary
SECOND QUARTER FINANCIAL SUMMARY ($ in thousands, except per share data) Q2 2023 Q2 2022 Total investment income $ 1,815 $ 1,353 Total investment income grew 34% • Driven by a 47% increase in interest from portfolio Total expenses 1,307 (96) companies Net investment income¹ 493 1,418 Total expenses
Slide 10: Net Asset Value Change: Q2 2023
NET ASSET VALUE CHANGE: Q2 2023 ($ in thousands) $3,480 $61,402 $59,375 $493 ($1,301) ($645) Net assets at Net investment Net realized gain on Net change in Cash dividend Net assets at 3/31/2023 income sales and dispositions unrealized 06/30/2023 $59,375,393 of investments appreciation on $61,402,02
Slide 11: Strong and Flexible Balance Sheet
STRONG AND FLEXIBLE BALANCE SHEET Net Asset Value Composition At June 30, 2023 Publicly-traded equity securities of $7.4 million Per Share Assets and Liabilities available for future liquidity opportunities $3.24 $8.4 million consolidated cash At June 30 2023, $10.7 million in outstanding borrowings
Slide 12: 2023 Objectives
2023 OBJECTIVES Continue to grow and scale the business by focusing on debt and related equity investments in privately-held, lower middle market companies Put capital to work: • Leverage $25 million senior secured revolving credit facility • Opportunistically use our publicly traded equity inve
Slide 13: Supplemental Information
SUPPLEMENTAL INFORMATION © 2023 Rand Capital Corporation Nasdaq: RAND
Slide 14: Adjusted Expenses (Non-GAAP)
ADJUSTED EXPENSES (N -GAAP*) ON Three months Three months ended ended June 30, 2023 June 30, 2022 Total expenses/(credits) $ 1,306,741 $ (96,198) Exclude expenses/(credits) for capital gains incentive fees 491,000 (663,000) Adjusted expenses $ 815,741 $ 566,802 *In addition to reporting total expens
Slide 15: Adjusted Net Investment Income per Share (Non-GAAP)
ADJUSTED NET INVESTMENT INCOME PER SHARE (N -GAAP*) ON Three months Three months ended ended June 30, 2023 June 30, 2022 Net investment income per share $ 0.19 $ 0.55 Exclude expenses/(credits) for capital gains incentive fees 0.19 (0.26) Adjusted net investment income per share $ 0.38 $ 0.29 *In ad