CHICAGO, Feb. 10, 2011 /PRNewswire/ -- Golub
Capital BDC, Inc., a business development company (Nasdaq: GBDC),
today announced its financial results for the first fiscal quarter
ended December 31, 2010.
Except where the context suggests otherwise, the terms
"we," "us," "our," and "Company," refer to Golub Capital BDC, Inc.
and its Subsidiaries. "GC Advisors" refers to GC Advisors
LLC, our investment adviser.
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SELECTED FINANCIAL
HIGHLIGHTS
|
|
|
(in thousands, expect per share
data)
|
|
|
|
|
|
|
|
December 31,
2010
|
|
September
30, 2010
|
|
|
Investment portfolio
|
$
382,414
|
|
$
344,869
|
|
|
Total assets
|
$
460,314
|
|
$
442,763
|
|
|
NAV per share
|
$
14.74
|
|
$
14.71
|
|
|
|
|
|
|
|
Quarter
Ended
December 31,
2010
|
|
Quarter
Ended
September
30, 2010
|
|
|
Investment income
|
$
9,137
|
|
$
7,431
|
|
|
Net investment income
|
$
5,233
|
|
$
4,351
|
|
|
Net realized and unrealized
gain
|
$
729
|
|
$
1,896
|
|
|
Net increase in net assets
resulting from operations
|
$
5,962
|
|
$
6,247
|
|
|
|
|
|
|
|
Net earnings per
share
|
$
0.34
|
|
$
0.35
|
|
|
Net investment income per
share
|
$
0.30
|
|
$
0.25
|
|
|
Net realized and unrealized gain
per share
|
$
0.04
|
|
$
0.10
|
|
|
|
|
|
FIRST FISCAL QUARTER 2011 HIGHLIGHTS
- Net investment income for the quarter ended December 31, 2010 was $5.2
million, or $.30 per share, as
compared to $4.4 million, or
$0.25 per share, for the quarter
ended September 30, 2010;
- Net realized and unrealized gains on investments for the
quarter ended December 31, 2010 was
$0.7 million, or $.04 per share, as compared to $1.9 million, or $0.10 per share, for the quarter ended
September 30, 2010;
- Net increase in net assets resulting from operations for the
quarter ended December 31, 2010 was
$6.0 million, or $0.34 per share, as compared to $6.3 million, or $0.35 per share, for the quarter ended
September 30, 2010;
- Our board of directors declared a second quarter distribution
on February 8, 2011 of $0.32 per share, payable on March 30, 2011.
PORTFOLIO AND INVESTMENT ACTIVITIES
At December 31, 2010, the Company
had investments in 98 portfolio companies, with a total fair value
of $382.4 million. The
portfolio consisted of $226.8 million
of senior secured loans, $98.1
million of unitranche loans, $26.3
million of second lien loans, $24.8
million of subordinated debt and $6.4
million of common equity investments. For the three
months ended December 31, 2010, the
Company originated $113.7 million in
new investment commitments of which 40% were senior secured loans,
30% were unitranche loans, 17% were second lien loans, 10% were
subordinated loans and 3% were equity securities. Sales and
repayments on investments for the same period totaled $64.1 million. The Company expects to continue to
invest in a mix of mezzanine and senior secured loans to obtain a
high level of current income and to preserve capital.
For the quarter ended December 31,
2010, weighted average annualized investment income yield
(which includes interest income and amortization of fees and
discounts) and the weighted average annualized interest income
yield (which excludes income resulting from amortization of fees
and discounts) on the fair value of investments in the Company's
portfolio was 10.6% and 8.1% , respectively. As of
December 31, 2010, 65.3% of the
Company's portfolio at fair value had interest rate floors that
limit minimum interest rates on such loans.
CONSOLIDATED RESULTS OF OPERATIONS
Total investment income for the three months ended December 31, 2010 and September 30, 2010 was $9.1 million and $7.4
million, respectively. Investment income increased by
$1.7 million, or 23.0%, for the three
months ended December 31, 2010 as
compared to the three months ended September
30, 2010. This increase was primarily attributable to higher
average invested assets during the three months ended December 31, 2010.
Total expenses for the three months ended December 31, 2010 and September 30, 2010 were $3.9 million and $3.1
million, respectively. Total expenses increased by
$0.8 million, or 25.8%, for the three
months ended December 31, 2010 as
compared to the three months ended September
30, 2010. This increase was primarily due to an increase in
management fees, incentive fees, interest expense, and professional
fees. Management and incentive fees increased due to higher
average invested assets and higher net investment income. The
increase in interest expense was driven by a higher effective
interest rate during the three months ended December 31, 2010. Professional fees
increased due to increased consulting expenses related to our
Sarbanes Oxley implementation as well as other costs associated
with being a public entity.
During the three months ended December
31, 2010 and September 30,
2010, the Company had $0.9
million of net realized gains and $(40,000) of net realized losses on investments,
respectively. During the three months ended December 31, 2010 and September 30, 2010, the Company recorded net
unrealized depreciation of $(0.1)
million and net unrealized appreciation of $1.9 million, respectively.
"I am pleased to report that we had a solid quarter with very
strong origination volume," said Golub Capital BDC, Inc. CEO
David Golub. "We also made
progress toward our goal of shifting the asset mix of the portfolio
to more unitranche, second lien and mezzanine investments."
LIQUIDITY AND CAPITAL RESOURCES
As of December 31, 2010, the
Company had cash and cash equivalents of $41.4 million, restricted cash of $27.6 million and $194.0
million of total debt outstanding.
On February 8, 2011, the Company's
board of directors declared a quarterly distribution of
$0.32 per share, payable on
March 30, 2011 to holders of record
as of March 18, 2011.
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 the following
categories:
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Risk Ratings
Definition
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Rating
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Definition
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|
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5
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Involves the least amount of
risk in our portfolio. The borrower is performing above
expectations, and the trends and risk factors are generally
favorable.
|
|
|
|
|
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4
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Involves an acceptable level of
risk that is similar to the risk at the time of origination. The
borrower is generally performing as expected, and the risk factors
are neutral to favorable.
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|
|
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3
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Involves a borrower performing
below expectations and indicates that the loan's risk has increased
somewhat since origination. The borrower may be out of compliance
with debt covenants; however; loan payments are generally not past
due.
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|
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2
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Involves a borrower performing
materially below expectations and indicates that the loan's risk
has increased materially since origination. In addition to the
borrower being generally out of compliance with debt covenants,
loan payments may be past due (but generally not more than 180 days
past due).
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|
|
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1
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Indicates that the borrower is
performing substantially below expectations and the loan risk has
substantially increased since origination. Most or all of the debt
covenants are out of compliance and payments are substantially
delinquent. Loans graded 1 are not anticipated to be repaid in
full, and we reduce the fair market value of the loan to the amount
we anticipate recovering.
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The following table shows the distribution of our investments on
the 1 to 5 investment performance rating scale at fair value as of
December 31, 2010 and September 30, 2010:
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December 31,
2010
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September
30, 2010
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|
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Investment
Performance
Rating
|
|
Investments
at Fair Value
(in thousands)
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|
Percentage
of
Total
Investments
|
|
Investments
at Fair Value
(in thousands)
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|
Percentage
of
Total
Investments
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|
|
|
|
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5
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$
75,836
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19.9%
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$
98,307
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28.5%
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4
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277,356
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72.5%
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199,876
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58.0%
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3
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24,908
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6.5%
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41,948
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12.1%
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2
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4,314
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1.1%
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4,738
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1.4%
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1
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-
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0.0%
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-
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0.0%
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Total
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$
382,414
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|
100.0%
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|
$
344,869
|
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100.0%
|
|
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|
|
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CONFERENCE CALL
The Company will host an earnings conference call at
1:00 p.m. (Eastern Time) on
Thursday, February 10, 2011.
All interested parties may participate in the conference call
by dialing (800) 897-4057 approximately 10-15 minutes prior to the
call; international callers should dial (212) 231-2919.
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 Events and
Presentations link on the homepage of our website
(www.golubcapitalbdc.com) and click on the Investor Presentations
link to find the December 31, 2010
Investor Presentation. An archived replay of the call will be
available shortly after the call until 3:00
p.m. (Eastern Time) on February 25,
2011. To hear the replay, please dial (800) 633-8284.
International dialers, please dial (402) 977-9140. For all replays,
please reference program ID number 21508409.
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Golub Capital BDC, Inc. and
Subsidiaries
|
|
|
Consolidated Statements of
Financial Condition (unaudited)
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|
|
(In thousands, except share and
per share data)
|
|
|
|
|
December 31,
2010
|
|
September
30, 2010
|
|
|
Assets
|
|
|
|
|
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Investments, at fair value (cost
of $383,507 and $345,536 respectively)
|
$
382,414
|
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$
344,869
|
|
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Cash and cash
equivalents
|
41,389
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|
61,219
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|
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Restricted cash and cash
equivalents
|
27,618
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|
31,771
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Interest receivable
|
2,194
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|
1,956
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Receivable for investments
sold
|
2,895
|
|
-
|
|
|
Deferred financing
costs
|
3,548
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|
2,748
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Other assets
|
256
|
|
200
|
|
|
Total Assets
|
$
460,314
|
|
$
442,763
|
|
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Liabilities
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Debt
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$
194,000
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$
174,000
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Payable for investments
purchased
|
-
|
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5,328
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|
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Interest payable
|
2,576
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|
1,167
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|
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Management and incentive fees
payable
|
1,693
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|
1,008
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|
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Accounts payable and accrued
expenses
|
570
|
|
719
|
|
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Total Liabilities
|
198,839
|
|
182,222
|
|
|
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Net Assets
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|
|
|
|
|
Preferred stock, par value
$0.001 per share, 1,000,000 shares authorized,
zero shares issued and
outstanding as of December 31, 2010 and September 30,
2010
|
|
|
|
|
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$
-
|
|
$
-
|
|
|
Common stock, par value $0.001
per share, 100,000,000 shares authorized,
|
|
|
|
|
|
17,738,197 and 17,712,444 shares
issued and outstanding, respectively
|
18
|
|
18
|
|
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Paid in capital in excess of
par
|
260,152
|
|
259,690
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|
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Over distributed net investment
income
|
(1,379)
|
|
(1,122)
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Net unrealized appreciation on
investments
|
1,848
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|
1,995
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|
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Net realized gains (losses) on
investments
|
836
|
|
(40)
|
|
|
Total Net Assets
|
261,475
|
|
260,541
|
|
|
Total Liabilities and Total Net
Assets
|
$
460,314
|
|
$
442,763
|
|
|
|
|
|
|
|
Number of common shares
outstanding
|
17,738,197
|
|
17,712,444
|
|
|
Net asset value per common
share
|
$
14.74
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|
$
14.71
|
|
|
|
|
|
|
Golub Capital BDC, Inc. and
Subsidiaries
|
|
|
|
|
Consolidated Statements of
Operations (unaudited)
|
|
|
|
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(In thousands, except share and
per share data)
|
|
|
|
|
|
Three months
ended
|
|
|
|
December 31,
2010
|
|
September
30, 2010
|
|
|
Investment income
|
|
|
|
|
|
|
Interest
|
|
$
9,137
|
|
$
7,431
|
|
|
|
|
|
|
|
|
Total investment
income
|
|
9,137
|
|
7,431
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
Interest and other debt
financing expenses
|
|
1,577
|
|
1,381
|
|
|
Base management fee
|
|
1,284
|
|
1,091
|
|
|
Incentive fee
|
|
190
|
|
-
|
|
|
Professional fees
|
|
567
|
|
315
|
|
|
Administrative service
fee
|
|
174
|
|
141
|
|
|
General and administrative
expenses
|
|
112
|
|
152
|
|
|
|
|
|
|
|
|
Total expenses
|
|
3,904
|
|
3,080
|
|
|
|
|
|
|
|
|
Net investment
income
|
|
5,233
|
|
4,351
|
|
|
|
|
|
|
|
|
Net gain (loss) on
investments
|
|
|
|
|
|
|
Net realized gains (losses) on
investments
|
|
876
|
|
(40)
|
|
|
Net change in unrealized
(depreciation) appreciation on investments
|
|
(147)
|
|
1,936
|
|
|
|
|
|
|
|
|
Net gain on
investments
|
|
729
|
|
1,896
|
|
|
|
|
|
|
|
|
Net increase in net assets
resulting from operations
|
|
$
5,962
|
|
$
6,247
|
|
|
|
|
|
|
|
|
Per Common Share
Data
|
|
|
|
|
|
|
Basic and diluted earnings per
common share
|
|
$
0.34
|
|
$
0.35
|
|
|
Dividends and distributions
declared per common share
|
|
$
0.31
|
|
$
0.31
|
|
|
Basic and diluted weighted
average common shares outstanding
|
|
17,712,724
|
|
17,712,444
|
|
|
|
|
|
|
ABOUT GOLUB CAPITAL BDC, INC.
Golub Capital BDC, Inc., (NASDAQ: GBDC,
www.golubcapitalbdc.com), a business development company,
principally invests in senior secured, unitranche, mezzanine and
second lien loans of middle-market companies that are, in most
cases, sponsored by private equity investors. Golub Capital BDC,
Inc.'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, founded in 1994, is a leading lender to
middle-market companies. In 2009, Golub Capital was named "Middle
Market Lender of the Year" by Buyouts Magazine and "Debt Financing
Agent of the Year" and "Mezzanine Financing Agent of the Year" by
M&A Advisor. As of December 31,
2010, Golub Capital managed over $4.0
billion of capital, with a team of investment professionals
in New York, Chicago and Atlanta.
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 in the forward-looking statements as a
result of a number of factors, including those described from time
to time in the Company's filings with the Securities and Exchange
Commission. The Company 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.