Golub Capital BDC, Inc. · NASDAQ:GBDC
Golub Capital BDC — Q1 FY2022 Earnings Presentation
24 slides from Golub Capital BDC's earnings presentation, February 2022
Slide 1: Golub Capital BDC, Inc. Investor Presentation
GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED DECEMBER 31, 2021 CONF I D E NT I A L | F OR DISCU S S I O N P URP O S E S ONL Y
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
Summary of Financial Results 01
Slide 4: Summary of Financial Results vs. Prior Quarter
Summary of Financial Results vs. Prior Quarter Quarter Ended September 30, 2021 December 31, 2021 Net Investment Income Per Share Net investment income per share $0.27 $0.27 Amortization of purchase premium per share1 0.03 0.04 Adjusted net investment income per share2 A $0.30 $0.31 Net Realized/Unr
Slide 5: GBDC Performance Drivers
GBDC Performance Drivers 0 Wi, GOLUB CAPITAL
Slide 6: GBDC's Strong Earnings Were Driven by a Continuation of Themes from the Prior Quarter
GBDC’s Strong Earnings Were Driven by a Continuation of Themes from the Prior Quarter Key Themes from Quarter Ended December 31, 2021 Impact on GBDC ❑ Earnings growth across middle market private ❑ GBDC portfolio companies generally continued companies in Golub Capital portfolios was to perform well
Slide 7: Strong Realized Gains Drove a NAV Per Share Increase
Strong Realized Gains Drove a NAV Per Share Increase from September 30, 2021 NAV Per Share Bridge $0.04 ($0.30) $0.27 $0.02 ($0.04) $0.08 $15.26 $15.19 Adjusted Net Realized & Unrealized Gain: $0.061 Adjusted NII: $0.311 September 30, Net Investment Reversal of Dividend Paid Net Realized Gain Net Ch
Slide 8: Summary of Financial Results for the Quarter Ended December 31, 2021
Summary of Financial Results for the Quarter Ended December 31, 2021 03
Slide 9: Summary of Quarterly Results
Summary of Quarterly Results Quarter Ended December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 Net Investment Income Per Share Net investment income per share $0.23 $0.24 $0.25 $0.27 $0.27 Amortization of purchase premium per share1 0.06 0.05 0.04 0.03 0.04 Adjusted n
Slide 10: Portfolio Highlights – New Originations
Portfolio Highlights – New Originations − Total investments at fair value increased by approximately 5.1%, or $251.9 million, during the quarter ended December 31, 2021. − As of December 31, 2021, we had $41.0 million of undrawn revolver commitments to portfolio companies. Quarter Ended December 31,
Slide 11: Portfolio Highlights – Investment Mix
Portfolio Highlights – Investment Mix − The portfolio continues to be focused on first lien, senior secured loans to what we believe to be healthy, resilient middle market companies backed by strong, partnership-oriented private equity sponsors. Historical Investment Portfolio ($000) $5,500,000 $5,1
Slide 12: Portfolio Highlights – Portfolio Diversity
Portfolio Highlights – Portfolio Diversity as of December 31, 2021 Investment Portfolio $5,147mm // 301 Investments – Average Size <0.3% Portfolio Composition by Seniority Diversification by Obligor Top 10 1% 5% Investments 16% 12% First Lien Traditional Senior First Lien Top 25 94% One Stop Investm
Slide 13: Portfolio Highlights – Economic Analysis
Portfolio Highlights – Economic Analysis 10.00% 9.00% 8.2% 8.1% 7.9% 8.0% 7.9% 7.8% 7.7% 7.7% 8.00% 7.8% 7.7% 7.00% 7.4% 7.4% 7.5% 7.4% 7.2% 7.1% 6.00% 5.1% 5.0% 5.0% 5.1% 4.9% 5.0% 4.9% 5.00% 4.5% 4.00% 3.7% 3.00% 3.2% 2.9% 3.0% 2.8% 2.7% 2.8% 2.7% 2.00% 1.00% 1.5% 0.3% 0.2% 0.2% 0.2% 0.1% 0.1% 0.2
Slide 14: Portfolio Highlights – Credit Quality
Portfolio Highlights – Credit Quality − As of December 31, 2021, non-accrual investments remained low at 1.2% and 0.9% as a percentage of total investments at cost and fair value, respectively, a slight decrease from the prior quarter. − During the quarter ended December 31, 2021, the number of non-
Slide 15: Portfolio Highlights – Portfolio Ratings
Portfolio Highlights – Portfolio Ratings − Due to continued improvement in borrower performance, the percentage of risk rated “3” investments decreased to 6.6% of the portfolio at fair value as of December 31, 2021 from 8.1% as of September 30, 2021. Internal Performance Ratings (% of Portfolio at F
Slide 16: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition As of December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (unaudited) (audited) (unaudited) Assets Investments, at fair value $4,507,218 $4,39
Slide 17: Quarterly Operating Results
Quarterly Operating Results Quarter Ended December 31, 2020 March 31, 2021 June 30, 2021 September 30, 2021 December 31, 2021 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment Income Interest income $82,209 $83,728 $81,69
Slide 18: Financial Performance Highlights
Financial Performance Highlights Quarterly Return on Equity and Quarterly Distributions (Last 5 Years) Regular Distribution Special Distribution Quarterly Return on Equity* 6.7% 4.0% 3.9% 3.8% 3.3% 2.4% 2.2% 2.3% 2.2% 2.4% 2.3% 2.2% 2.1% 2.8% 2.4% 1.6% 1.9% 1.9% 2.0% -10.5% $0.46 $0.44 $0.40 $0.13 $
Slide 19: Long History of Strong Shareholder Returns
Long History of Strong Shareholder Returns Investors in GBDC’s 2010 IPO have achieved a 10.0% IRR on NAV1 $34.93 $0.58 $14.76 $4.332 $14.63 $15.26 Dec-18 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-19 Dec-20 Dec-21 Sep-16 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-17 Sep-18 Sep-19
Slide 20: Liquidity and Investment Capacity
Liquidity and Investment Capacity Cash and Cash Equivalents − Unrestricted cash and cash equivalents and foreign currencies totaled $182.7 million as of December 31, 2021. − Restricted cash, cash equivalents and foreign currencies totaled $118.8 million as of December 31, 2021. Restricted cash is he
Slide 21: Post-COVID Initiatives Have Enhanced GBDC's Liability Structure
Post-COVID Initiatives Have Enhanced the Flexibility, Term and Durability of GBDC’s Liability Structure Debt Capital Structure* Debt Outstanding Undrawn Funding Source Commitment Par Commitment Reinvestment Period Stated Maturity Interest Rate1 Securitizations: 2018 Debt Securitization $ 408,200 $ 4
Slide 22: Common Stock and Distribution Information
Common Stock and Distribution Information Common Stock Data1 Fiscal Year Ending September 30, 2021 High Low End of Period First Quarter $14.15 $12.66 $14.14 Second Quarter $15.36 $14.08 $14.62 Third Quarter $16.10 $14.72 $15.42 Fourth Quarter $16.01 $15.17 $15.81 Fiscal Year Ending September 30, 202
Slide 23: Appendix: Endnotes
Appendix: Endnotes GOLUB CAPITAL
Slide 24: 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