Golub Capital BDC, Inc. · NASDAQ:GBDC
Golub Capital BDC — Q1 FY2021 Earnings Presentation
26 slides from Golub Capital BDC's earnings presentation, February 2021
Slide 1: Golub Capital BDC, Inc. Investor Presentation
GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED DECEMBER 31, 2020
Slide 2: Disclaimer
Disclaimer Some of the statements in this presentation constitute forward-looking statements, Such forward-looking statements may include statements preceded by, followed by which relate to future events or our future performance or financial condition. The or that otherwise include the words “may,”
Slide 3: Summary of Financial Results vs. Preliminary Estimates
Summary of Financial Results vs. Preliminary Estimates 01
Slide 4: Summary of Financial Results vs. Preliminary Estimates
Summary of Financial Results vs. Preliminary Estimates FQ1 2021 Preliminary Estimate FQ1 2021 Actual Range (Filed January 20, 2021) Net Investment Income Per Share Net investment income per share $0.23 $0.22 $0.23 Amortization of purchase premium per share1 0.06 0.05 0.06 Adjusted net investment inc
Slide 5: GBDC Performance Drivers
GBDC Performance Drivers 0 Wi, GOLUB CAPITAL
Slide 6: GBDC's Strong FQ1 2021 Earnings Were Driven by a Continuation of Themes from FQ4 2020
GBDC’s Strong FQ1 2021 Earnings Were Driven by a Continuation of Themes from FQ4 2020 Key Themes from FQ1 2021 Impact on GBDC GBDC portfolio companies generally Improved internal performance ratings1 continue to perform well, despite an economy that remained COVID-impacted Private equity spons
Slide 7: Improved Borrower Performance and Increased Sponsor Support Drive Positive Risk Rating Trends
Improved Borrower Performance and Increased Sponsor Support Continue to Drive Positive Trends in GBDC’s Risk Ratings − Steady upward portfolio migration into internal performance ratings 4-5 since the quarter ended March 31, 2020 as borrowers continued to perform well − Investments at fair value wit
Slide 8: Low Net Realized Losses and Strong Unrealized Gains Drove NAV Per Share Increase
Low Net Realized Losses and Strong Unrealized Gains Drove a NAV Per Share Increase from September 30, 2020 NAV Per Share Bridge ($0.06) $0.06 $14.60 ($0.29) $0.34 $0.23 $14.33 ($0.01) Adjusted NII: $0.291 Adjusted Net Realized & Unrealized Gain: $0.271 9/30/20 Net Investment Reversal of FQ1 2021 Net
Slide 9: Summary of Financial Results for the Quarter Ended December 31, 2020
Summary of Financial Results for the Quarter Ended December 31, 2020 03
Slide 10: Summary of Quarterly Results
Summary of Quarterly Results FY 2020 FY 2021 FQ1 2020 FQ2 2020 FQ3 2020 FQ4 2020 FQ1 2021 Net Investment Income Per Share Net investment income per share $0.24 $0.24 $0.23 $0.23 $0.23 Amortization of purchase premium per share1 0.09 0.09 0.05 0.05 0.06 Adjusted net investment income per share2 A $0.
Slide 11: Portfolio Highlights – New Originations
Portfolio Highlights – New Originations New Originations Data and Net Funds Growth − Total investments at fair value increased by approximately 6.3%, or $269.0 million, during the quarter ended December 31, 2020. − As of December 31, 2020, we had $43.5 million of undrawn revolver commitments to port
Slide 12: Portfolio Highlights – Portfolio Diversity as of December 31, 2020
Portfolio Highlights – Portfolio Diversity as of December 31, 2020 FY 2020 FY 2021 Investment Portfolio Statistics FQ1 2020 FQ2 2020 FQ3 2020 FQ4 2020 FQ1 2021 Investments in Portfolio Companies at Fair Value (000s) $4,329,238 $4,210,215 $4,250,370 $4,238,210 $4,507,218 Investments in Senior Loan Fu
Slide 13: Portfolio Highlights – Portfolio Diversity as of December 31, 2020
Portfolio Highlights – Portfolio Diversity as of December 31, 2020 Investment Portfolio $4,507mm // 253 Investments – Average Size <0.4% Portfolio Composition by Seniority Diversification by Obligor Top 10 1% 2% Investments 17% 16% First Lien Traditional Senior First Lien 97% One Stop Top 25 First L
Slide 14: Portfolio Highlights – Economic Analysis
Portfolio Highlights – Economic Analysis Economic Analysis 10.00% 9.2% 9.2% 8.8% 9.00% 8.4% 8.2% 8.1% 8.8% 7.8% 7.9% 8.00% 8.6% 8.4% 8.0% 7.8% 7.7% 7.00% 7.4% 7.4% 6.00% 5.0% 5.0% 5.1% 5.0% 4.8% 4.9% 5.00% 4.5% 4.5% 4.00% 4.2% 4.2% 4.0% 3.9% 3.7% 3.00% 3.2% 2.9% 2.6% 2.7% 2.00% 2.3% 2.1% 1.9% 1.00%
Slide 15: Portfolio Highlights – Credit Quality
Portfolio Highlights – Credit Quality Credit Quality – Investment Portfolio − Non-accrual investments at December 31, 2020 as a percentage of total investments at cost and fair value declined to 1.6% and 1.2%, respectively, comparable to pre-COVID levels. During the quarter ended December 31, 2020,
Slide 16: Portfolio Highlights – Portfolio Ratings
Portfolio Highlights – Portfolio Ratings Credit Quality – Investment Portfolio − Due to continued improvement in borrower performance, the percentage of risk rated “3” investments decreased to 17.9% of the portfolio at fair value as of December 31, 2020 from 19.7% as of September 30, 2020. Internal
Slide 17: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition FY 2020 FY 2021 December 31, 2019 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 (Dollar amounts in 000s, except per share data) (unaudited) (unaudited) (unaudited) (audited) (unaudited) Assets Investments, at fair value $4,448,316 $4,21
Slide 18: Quarterly Operating Results
Quarterly Operating Results For the three months ended FY 2020 FY 2021 December 31, March 31, June 30, September 30, December 31, 2019 2020 2020 2020 2020 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment Income Interest
Slide 19: Financial Performance Highlights
Financial Performance Highlights Quarterly Return on Equity and Quarterly Distributions (Last 5 Years) 6.7% 4.0% 3.9% 2.5% 1.8% 2.3% 1.9% 2.2% 2.4% 2.2% 2.3% 2.2% 2.4% 2.3% 1.9% 1.9% 2.0% 2.2% 2.1% 1.6% $0.57 -10.5% $0.46 $0.44 $0.40 $0.32 $0.32 $0.32 $0.32 $0.32 $0.32 $0.32 $0.32 $0.32 $0.32 $0.32
Slide 20: Long History of Strong Shareholder Returns
Long History of Strong Shareholder Returns Investors in GBDC’s 2010 IPO have achieved a 9.8% IRR on NAV1 $32.64 $0.58 $13.59 $14.63 $3.872 $14.60 Mar-11 Mar-12 Sep-10 Mar-13 Dec-10 Sep-11 Mar-14 Apr-10 Jun-10 Dec-11 Sep-12 Mar-15 Jun-11 Dec-12 Sep-13 Mar-16 Jun-12 Dec-13 Sep-14 Mar-17 Jun-13 Dec-14
Slide 21: Liquidity and Investment Capacity
Liquidity and Investment Capacity Cash and Cash Equivalents − Unrestricted cash and cash equivalents and foreign currencies totaled $27.0 million as of December 31, 2020. − Restricted cash, cash equivalents and foreign currencies totaled $244.1 million as of December 31, 2020. Restricted cash is hel
Slide 22: Debt Capital Structure
Debt Capital Structure* Key Funding Vehicles Debt Outstanding Undrawn Funding Source Commitment Par Commitment Reinvestment Period Stated Maturity Interest Rate1 Securitizations: 2020 Debt Securitization $ 189,000 $ 189,000 $ - November 5, 2022 November 5, 2032 3 Month LIBOR + 2.44% 2018 Debt Securi
Slide 23: Common Stock and Distribution Information
Common Stock and Distribution Information Common Stock Data1 Fiscal Year Ending September 30, 2020 High Low End of Period First Quarter $18.56 $17.70 $18.45 Second Quarter $18.14 $9.55 $12.56 Third Quarter $12.65 $9.58 $11.65 Fourth Quarter $13.44 $11.31 $13.24 Fiscal Year Ending September 30, 2021
Slide 24: Goals For Navigating Through COVID
Goals For Navigating Through COVID Key Goals Update as of December 31, 2020 1. Proactively manage GBDC’s GBDC’s portfolio companies continued to perform well, and credit metrics have investment portfolio improved meaningfully Performance ratings have improved with over 80% of loans performing at o
Slide 25: Appendix: Endnotes
Appendix: Endnotes GOLUB CAPITAL
Slide 26: Endnotes – Non-GAAP Financial Measures
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. U