Golub Capital BDC, Inc. Announces Fiscal Year 2024 Fourth Quarter Financial Results
Declares Quarterly Distribution of $0.39 Per Share, and a Fiscal Year 2024 Fourth Quarter Supplemental Distribution of $0.04 Per Share
NEW YORK--(BUSINESS WIRE)--November 19, 2024--
Golub Capital BDC, Inc., a business development company (Nasdaq: GBDC), today announced its financial results for its fourth fiscal quarter ended September 30, 2024.
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.
SELECTED FINANCIAL HIGHLIGHTS
(in thousands, expect per share
data)
September 30, 2024 June 30, 2024
-------------------- -----------------
Investment portfolio, at fair
value $ 8,235,411 $ 7,867,514
Total assets $ 8,705,978 $ 8,477,205
Net asset value per share $ 15.19 $ 15.32
Quarter Ended
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September 30, 2024 June 30, 2024
-------------------- -----------------
Net investment income per share $ 0.45 $ 0.46
Amortization of purchase premium
per share 0.02 0.02
--------------- ----------
Adjusted net investment income
per share(1) $ 0.47 $ 0.48
Net realized/unrealized
gain/(loss) excluding write-down
of purchase premium per share $ (0.09) $ (0.15)
Unrealized (loss) from the
write-down of the GBDC 3
purchase premium per share(1) -- (0.26)
--------------- ----------
Net realized/unrealized
gain/(loss) per share $ (0.09) $ (0.41)
Reversal of unrealized (loss)
resulting from the write-down of
the GBDC 3 purchase premium per
share(1) -- 0.26
Reversal of realized/unrealized
loss resulting from the
amortization of purchase premium
per share(1) (0.02) (0.02)
--------------- ----------
Adjusted net realized/unrealized
gain/(loss) per share(1) $ (0.11) $ (0.17)
Earnings/(loss) per share $ 0.36 $ 0.05
Adjusted earnings/(loss) per
share(1) $ 0.36 $ 0.31
Net asset value per share $ 15.19 $ 15.32
Distributions paid per share $ 0.49 $ 0.50
(1) On September 16, 2019 and June 3, 2024, the Company completed its
acquisition of Golub Capital Investment Corporation ("GCIC") and Golub
Capital BDC 3, Inc. ("GBDC 3"), respectively. Each acquisition was
accounted for under the asset acquisition method of accounting in
accordance with Accounting Standards Codification 805-50, Business
Combinations -- Related Issues. Under asset acquisition accounting,
where the consideration paid to GCIC and GBDC 3's stockholders exceeded
the relative fair values of the assets acquired, the premium paid by
the Company was allocated to the cost of the GCIC and GBDC 3
investments acquired by the Company pro-rata based on their relative
fair value. Immediately following each acquisition, the Company
recorded its assets at their respective fair values and, as a result,
the purchase premium allocated to the cost basis of the assets acquired
was immediately recognized as unrealized depreciation on the Company's
Consolidated Statement of Operations. The purchase premium allocated to
investments in loan securities acquired from GCIC and GBDC 3 will
amortize over the life of the loans through interest income with a
corresponding reversal of the unrealized depreciation on such loans
acquired through their ultimate disposition. The purchase premium
allocated to investments in equity securities will not amortize over
the life of the equity securities through interest income and, assuming
no subsequent change to the fair value of the GCIC and GBDC 3 equity
securities acquired and disposition of such equity securities at fair
value, the Company will recognize a realized loss with a corresponding
reversal of the unrealized depreciation upon disposition of the GCIC
and GBDC 3 equity securities acquired. As a supplement to U.S.
generally accepted accounting principles ("GAAP") financial measures,
the Company is providing the following non-GAAP financial measures that
it believes are useful for the reasons described below: "Adjusted Net
Investment Income" and "Adjusted Net Investment Income Per Share" --
excludes the amortization of the purchase premium from net investment
income calculated in accordance with GAAP. "Adjusted Net Investment
Income Before Accrual for Capital Gain Incentive Fee" - Adjusted Net
Investment Income excluding the accrual or reversal for the capital
gain incentive fee required under GAAP; "Adjusted Net Realized and
Unrealized Gain/(Loss)" and "Adjusted Net Realized and Unrealized
Gain/(Loss) Per Share" -- excludes the unrealized loss resulting from
the purchase premium write-down and the corresponding reversal of the
unrealized loss from the amortization of the premium from the
determination of realized and unrealized gain/(loss) in accordance with
GAAP. "Adjusted Net Income/(Loss)" and "Adjusted Earnings/(Loss) Per
Share" -- calculates net income and earnings per share based on
Adjusted Net Investment Income and Adjusted Net Realized and Unrealized
Gain/(Loss). The Company believes that excluding the financial impact
of the purchase premium write down in the above non-GAAP financial
measures is useful for investors as it is a non-cash expense/loss
resulting from the acquisitions of GCIC and GBDC 3 and is one method
the Company uses to measure its financial condition and results of
operations. In addition, the Company believes excluding the accrual of
the capital gain incentive fee under GAAP is useful as a portion of
such accrual is not contractually payable under the terms of the
Company's investment advisory agreement with GC Advisors.
Fourth Fiscal Quarter 2024 Highlights
--
Net investment income per share for the quarter ended September 30,
2024 was $0.45 as compared to $0.46 for the quarter ended June 30, 2024.
Excluding $0.02 per share in purchase premium amortization from the
GCIC/GBDC 3 acquisitions, Adjusted Net Investment Income Per Share1 for
the quarter ended September 30, 2024 was $0.47. This compares to Adjusted
Net Investment Income Per Share1 of $0.48 for the quarter ended June 30,
2024 when excluding $0.02 per share in purchase premium amortization from
the GCIC/GBDC 3 acquisitions and no accrual or reversal for the capital
gain incentive fee under GAAP.
--
Net realized and unrealized gain/(loss) per share for the quarter ended
September 30, 2024 was $(0.09). Adjusted Net Realized and Unrealized
Gain/(Loss) Per Share1 was $(0.11) when excluding $0.02 per share net
reversal of unrealized depreciation and realized loss resulting from the
amortization of the purchase premium. The Adjusted Net Realized and
Unrealized Gain/(Loss) Per Share1 for the quarter ended September 30,
2024 was primarily due to net realized losses recognized on the
restructuring of four portfolio companies that were partially offset by
net realized and unrealized gains recognized on the translation of
foreign currency transactions. For additional analysis, please refer to
the Quarter Ended 9.30.2024 Earnings Presentation available on the
Investor Resources link on the homepage of the Company's website
(www.golubcapitalbdc.com) under Events/Presentations. The Earnings
Presentation was also filed with the Securities and Exchange Commission
as an Exhibit to a Form 8-K. These results compare to net realized and
unrealized gain/(loss) per share of $(0.41) during the quarter ended June
30, 2024. Adjusted Net Realized and Unrealized Gain/(Loss) Per Share1 for
the quarter ended June 30, 2024 was $(0.17) when excluding $0.02 per
share net reversal of unrealized depreciation and realized loss resulting
from the amortization of the purchase premium and $0.26 per share
reversal of unrealized loss resulting from the one-time write-down of the
purchase premium allocated to the investments acquired from Golub Capital
BDC 3, Inc. ("GBDC 3").
--
Earnings per share for the quarter ended September 30, 2024 was $0.36
as compared to $0.05 for the quarter ended June 30, 2024. Adjusted
Earnings Per Share1 for the quarter ended September 30, 2024 was $0.36 as
compared to $0.31 for the quarter ended June 30, 2024.
--
Net asset value per share decreased to $15.19 at September 30, 2024
from $15.32 at June 30, 2024.
--
On June 2, 2024, our board of directors declared a series of special
distributions totaling $0.15 per share, distributed in three consecutive
quarterly payments of $0.05 per share per quarter. The first and second
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