Golub Capital BDC, Inc. · NASDAQ:GBDC
Golub Capital BDC — Q2 FY2021 Earnings Presentation
25 slides from Golub Capital BDC's earnings presentation, May 2021
Slide 1: Golub Capital BDC, Inc. Investor Presentation
GOLUB CAPITAL BDC, INC. INVESTOR PRESENTATION QUARTER ENDED MARCH 31, 2021
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 Quarter Ended December 31, March 31, 2021 2020 Net Investment Income Per Share Net investment income per share $0.23 $0.24 Amortization of purchase premium per share1 0.06 0.05 Adjusted net investment income per share2 A $0.29 $0.29 Net Re
Slide 5: GBDC Performance Drivers
GBDC Performance Drivers O Wi, GOLUB CAPITAL
Slide 6: Strong Earnings Driven by Continuation of Prior Quarter Themes
GBDC’s Strong Earnings in Quarter Ended March 31, 2021 Were Driven by a Continuation of Themes from the Prior Quarter Key Themes from Quarter Ended March 31, 2021 Impact on GBDC Earnings growth year-over-year across middle GBDC portfolio companies generally continued market private companies in
Slide 7: Strong Borrower Performance – Performance Ratings Back to 2018 Levels
Strong Borrower Performance – GBDC’s Performance Ratings Are Back to 2018 Levels − Percentage of portfolio investments at fair value with internal performance ratings 1-2 remained small and has declined to pre-COVID 2018/2019 levels. Internal Performance Rating Migration % of Portfolio at Fair Value
Slide 8: Strong Unrealized Gains Drove a NAV Per Share Increase
Strong Unrealized Gains Drove a NAV Per Share Increase from December 31, 2020 NAV Per Share Bridge $0.05 ($0.05) $14.86 ($0.29) $0.31 $0.24 $0.00 * $14.60 Adjusted NII: $0.291 Adjusted Net Realized & Unrealized Gain: $0.261 12/31/20 Net Investment Reversal of Dividend Paid Net Realized Gain Net Chan
Slide 9: Summary of Financial Results for the Quarter Ended March 31, 2021
Summary of Financial Results for the Quarter Ended March 31, 2021 03
Slide 10: Summary of Quarterly Results
Summary of Quarterly Results FY 2020 FY 2021 Quarter Ended Quarter Ended 3/31/20 6/30/20 9/30/20 12/31/20 3/31/21 Net Investment Income Per Share Net investment income per share $0.24 $0.23 $0.23 $0.23 $0.24 Amortization of purchase premium per share1 0.09 0.05 0.05 0.06 0.05 Adjusted net investment
Slide 11: Portfolio Highlights – New Originations
Portfolio Highlights – New Originations New Originations Data and Net Funds Growth − Total investments at fair value decreased by approximately 2.5%, or $112.0 million, during the quarter ended March 31, 2021 as strong originations were offset by elevated repayments. − As of March 31, 2021, we had $
Slide 12: Portfolio Highlights – Investment Mix
Portfolio Highlights – Investment Mix 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)
Slide 13: Portfolio Highlights – Portfolio Diversity
Portfolio Highlights – Portfolio Diversity as of March 31, 2021 Investment Portfolio $4,395mm // 256 Investments – Average Size <0.4% Portfolio Composition by Seniority Diversification by Obligor Top 10 1% 2% Investments 16% 16% First Lien Traditional Senior First Lien Top 25 97% One Stop Investment
Slide 14: Portfolio Highlights – Economic Analysis
Portfolio Highlights – Economic Analysis Economic Analysis 10.00% 9.2% 8.8% 9.00% 8.4% 8.2% 8.1% 7.9% 8.0% 7.8% 8.00% 8.6% 8.4% 8.0% 7.8% 7.7% 7.00% 7.4% 7.4% 7.5% 6.00% 5.0% 5.1% 5.0% 5.0% 4.8% 4.9% 5.00% 4.5% 4.5% 4.00% 4.2% 4.0% 3.9% 3.7% 3.00% 3.2% 2.9% 3.0% 2.7% 2.00% 2.3% 2.1% 1.9% 1.00% 1.5%
Slide 15: Portfolio Highlights – Credit Quality
Portfolio Highlights – Credit Quality Credit Quality – Investment Portfolio − As of March 31, 2021, non-accrual investments continued to decline to below pre-COVID levels and remained low at 1.4% and 1.0% as a percentage of total investments at cost and fair value, respectively. − During the quarter
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 12.0% of the portfolio at fair value as of March 31, 2021 from 17.9% as of December 31, 2020. Internal Perf
Slide 17: Quarterly Statements of Financial Condition
Quarterly Statements of Financial Condition FY 2020 FY 2021 March 31, 2020 June 30, 2020 September 30, 2020 December 31, 2020 March 31, 2021 (Dollar amounts in 000s, except per share data) (unaudited) (unaudited) (audited) (unaudited) (unaudited) Assets Investments, at fair value $4,210,215 $4,250,3
Slide 18: Quarterly Operating Results
Quarterly Operating Results FY 2020 FY 2021 March 31, June 30, September 30, December 31, March 31, 2020 2020 2020 2020 2021 (Dollar amounts in 000s, except share and per share data) (unaudited) (unaudited) (unaudited) (unaudited) (unaudited) Investment Income Interest income $87,421 $80,100 $79,107
Slide 19: 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% 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 $
Slide 20: Long History of Strong Shareholder Returns
Long History of Strong Shareholder Returns Investors in GBDC’s 2010 IPO have achieved a 9.9% IRR on NAV1 $33.33 $0.58 $13.88 $14.63 $4.012 $14.86 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Sep-10 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20
Slide 21: Liquidity and Investment Capacity
Liquidity and Investment Capacity Cash and Cash Equivalents − Unrestricted cash and cash equivalents and foreign currencies totaled $77.1 million as of March 31, 2021. − Restricted cash, cash equivalents and foreign currencies totaled $107.0 million as of March 31, 2021. Restricted cash is held in o
Slide 22: Post-COVID Initiatives Enhanced 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: 2020 Debt Securitization $ 189,000 $ 1
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: Appendix: Endnotes
Appendix: Endnotes GOLUB CAPITAL
Slide 25: 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