NEW YORK, Nov. 25, 2019 /PRNewswire/ -- Golub Capital BDC, Inc., a business development company (NASDAQ: GBDC), today announced its financial results for its fourth fiscal quarter ended September 30, 2019.
Except where the context suggests otherwise, the terms "we," "us," "our," and "Company" refer to Golub Capital BDC, Inc. and its consolidated subsidiaries. "GC Advisors" refers to GC Advisors LLC, our investment adviser.
Fourth Fiscal Quarter 2019 Highlights
- Net investment income per share for the quarter ended September 30, 2019 was $0.37 per share as compared to $0.32 per share for the quarter ended June 30, 2019. Excluding $0.02 per share in purchase premium amortization from the GCIC acquisition and a ($0.06) per share reversal in the accrual for the capital gain incentive fee, adjusted net investment income per share1 for the quarter ended September 30, 2019 was $0.33 per share. This compares to adjusted net income per share1 of $0.32 per share for the quarter ended June 30, 2019 when excluding an accrual for the capital gain incentive fee of less than $0.01 per share.
- Net realized and unrealized loss per share for the quarter ended September 30, 2019 was ($1.39) per share that was comprised of (i) $0.02 per share of net realized and unrealized gain on investments and foreign currency, (ii) a ($1.43) loss per share of net unrealized depreciation resulting from the one-time write-down of the unamortized purchase premium allocated to the GCIC assets acquired and (iii) a $0.02 reversal of unrealized loss resulting from the amortization of the purchase premium. Adjusted net realized and unrealized gain per share1 was $0.02 per share when excluding the ($1.43) loss per share of net unrealized depreciation resulting from the write-down of the GCIC acquisition purchase premium and the $0.02 reversal of unrealized loss resulting from the amortization of purchase premium. This compares to net realized and unrealized loss per share of less than ($0.01) per share during the quarter ended June 30, 2019.
- Earnings per share for the quarter ended September 30, 2019 was a loss of ($1.02) per share as compared to earnings per share of $0.32 per share for the quarter ended June 30, 2019. Adjusted earnings per share1 for the quarter ended September 30, 2019 was $0.35 per share, which is calculated as the sum of adjusted net investment income per share and adjusted net realized and unrealized gain/(loss) per share.
- Net asset value per share increased from $15.95 per as of June 30, 2019 to $16.76 as of September 30, 2019, primarily due to the GCIC acquisition.
- Our board of directors declared on November 22, 2019, a quarterly distribution of $0.33 per share and a special distribution of $0.13 per share both of which are payable on December 30, 2019 to stockholders of record as of December 12, 2019.
Portfolio and Investment Activities
As of September 30, 2019, the Company had investments in 241 portfolio companies with a total fair value of $4,169.3 million and had investments in Senior Loan Fund LLC ("SLF") and GCIC SLF LLC ("GCIC SLF") with a total aggregate fair value of $123.6 million. This compares to the Company's portfolio as of June 30, 2019, as of which date the Company had investments in 225 portfolio companies with a total fair value of $1,851.1 million and an investment in SLF with a total fair value of $71.7 million. Investments in portfolio companies as of September 30, 2019 and June 30, 2019 consisted of the following:
The following table shows the asset mix of our new investment commitments, excluding investments acquired in the GCIC acquisition, for the three months ended September 30, 2019:
Including $2.3 billion of investments acquired from GCIC, total investments in portfolio companies at fair value were $4.3 billion at September 30, 2019. As of September 30, 2019, total assets were $4.4 billion, net assets were $2.2 billion and net asset value per share was $16.76.
Consolidated Results of Operations
For the fourth fiscal quarter of 2019, the Company reported a GAAP net loss of ($74.0) million or ($1.02) per share and adjusted net income1 of $25.6 million or $0.35 per share. GAAP net investment income was $26.8 million or $0.37 per share and adjusted net investment income1 was $23.7 million or $0.33 per share. GAAP net realized and unrealized losses1 were ($100.8) million or ($1.39) per share and adjusted realized and unrealized gains were $1.9 million or $0.02 per share.
Net income can vary substantially from period to period due to various factors, including the level of new investment commitments, the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, quarterly comparisons of net income may not be meaningful.
Liquidity and Capital Resources
The Company's liquidity and capital resources are derived from the Company's debt securitizations (also known as collateralized loan obligations, or CLOs), U.S. Small Business Administration ("SBA") debentures, revolving credit facilities and cash flow from operations. The Company's primary uses of funds from operations include investments in portfolio companies and payment of fees and other expenses that the Company incurs. The Company has used, and expects to continue to use, its debt securitizations, SBA debentures, revolving credit facilities, proceeds from its investment portfolio and proceeds from offerings of its securities and its dividend reinvestment plan to finance its investment objectives.
As of September 30, 2019, the Company had cash, cash equivalents and foreign currencies of $6.5 million, restricted cash and cash equivalents of $77.7 million and $2,129.9 million of debt outstanding. As of September 30, 2019, subject to leverage and borrowing base restrictions, we had approximately $88.2 million of remaining commitments and $42.2 million of availability on our revolving credit facilities with various banks. As of September 30, 2019, through our SBIC licensees, we had $18.0 million of remaining unfunded debenture commitments, of which $18.0 million was available to be drawn, subject to customary SBA regulatory requirements.
On October 11, 2019, the Company entered into an amendment to the documents governing its credit facility with Morgan Stanley Bank, N.A., which increased the borrowing capacity from $300.0 million to $500.0 million. The other material terms of the credit facility were unchanged.
Portfolio and Asset Quality
GC Advisors regularly assesses the risk profile of each of the Company's investments and rates each of them based on an internal system developed by Golub Capital and its affiliates. This system is not generally accepted in our industry or used by our competitors. It is based on the following categories, which we refer to as GC Advisors' internal performance ratings:
Our internal performance ratings do not constitute any rating of investments by a nationally recognized statistical rating organization or represent or reflect any third-party assessment of any of our investments.
The following table shows the distribution of the Company's investments on the 1 to 5 internal performance rating scale at fair value as of September 30, 2019 and June 30, 2019:
Conference Call
The Company will host an earnings conference call at 2:30 p.m. (Eastern Time) on Tuesday, November 26, 2019 to discuss the quarterly financial results. All interested parties may participate in the conference call by dialing (800) 668-9550 approximately 10-15 minutes prior to the call; international callers should dial (303) 223-2694. Participants should reference Golub Capital BDC, Inc. when prompted. For a slide presentation that we intend to refer to on the earnings conference call, please visit the Investor Resources link on the homepage of our website (www.golubcapitalbdc.com) and click on the Quarter Ended 9.30.19 Investor Presentation under Events/Presentations. An archived replay of the call will be available shortly after the call until 4:30 p.m. (Eastern Time) on December 26, 2019. To hear the replay, please dial (800) 633-8284. International dialers, please dial (402) 977-9140. For all replays, please reference program ID number 21931806.
ABOUT GOLUB CAPITAL BDC, INC.
Golub Capital BDC, Inc. ("Golub Capital BDC") is an externally-managed, non-diversified closed-end management investment company that has elected to be treated as a business development company under the Investment Company Act of 1940. Golub Capital BDC invests primarily in one stop and other senior secured loans of U.S. middle-market companies that are often sponsored by private equity investors. Golub Capital BDC's investment activities are managed by its investment adviser, GC Advisors LLC, an affiliate of the Golub Capital group of companies ("Golub Capital").
ABOUT GOLUB CAPITAL
Golub Capital is a market-leading, award-winning direct lender and credit asset manager, with over $30 billion of capital under management. Golub Capital specializes in delivering reliable, creative and compelling financing solutions to U.S. middle market companies backed by private equity sponsors. The firm's credit expertise also forms the foundation of its Late Stage Lending business and its Broadly Syndicated Loan investment program. Across its activities, Golub Capital nurtures long-term, win-win partnerships that inspire repeat business from its private equity sponsor clients and investors. Founded 25 years ago, Golub Capital today has over 425 employees and lending offices in Chicago, New York and San Francisco. For more information, please visit golubcapital.com.
FORWARD-LOOKING STATEMENTS
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts included in this press release may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties. Actual results may differ materially from those expressed or implied in the forward-looking statements as a result of a number of factors, including those described from time to time in filings with the Securities and Exchange Commission. Golub Capital BDC, Inc. undertakes no duty to update any forward-looking statement made herein. All forward-looking statements speak only as of the date of this press release.
SOURCE Golub Capital BDC, Inc.