Golub Capital BDC, Inc. Announces Fiscal Year 2025 Second Quarter Financial Results
Declares Quarterly Distribution of $0.39 Per Share
NEW YORK--(BUSINESS WIRE)--May 05, 2025--
Golub Capital BDC, Inc., a business development company (Nasdaq: GBDC), today announced its financial results for its second fiscal quarter ended March 31, 2025.
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, except per
share data)
March 31, 2025 December 31, 2024
---------------- ---------------------
Investment portfolio, at fair
value $ 8,621,220 $ 8,685,231
Total assets $ 8,949,865 $ 9,008,786
Net asset value per share $ 15.04 $ 15.13
Quarter Ended
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March 31, 2025 December 31, 2024
---------------- ---------------------
Net investment income per share $ 0.37 $ 0.37
Amortization of purchase
premium per share 0.02 0.02
----------- --------------
Adjusted net investment income
per share(1) $ 0.39 $ 0.39
Net realized/unrealized
gain/(loss) per share $ (0.07) $ 0.05
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) $ (0.09) $ 0.03
Earnings/(loss) per share $ 0.30 $ 0.42
Adjusted earnings/(loss) per
share(1) $ 0.30 $ 0.42
Net asset value per share $ 15.04 $ 15.13
Distributions paid per share $ 0.39 $ 0.48
(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.
Second Fiscal Quarter 2025 Highlights
-- Net investment income per share for the quarter ended March 31, 2025
remained consistent at $0.37 compared to the quarter ended December 31,
2024. 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, Adjusted Net Investment Income Per Share1 for
the quarters ended March 31, 2025 and December 31, 2024 was $0.39.
-- Net realized and unrealized gain/(loss) per share for the quarter ended
March 31, 2025 was $(0.07). Adjusted Net Realized and Unrealized
Gain/(Loss) Per Share1 was ($0.09) 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 March 31, 2025
was primarily due to (i) unrealized depreciation resulting from the
underperformance of certain portfolio companies and (ii) net realized
losses recognized on the restructuring of debt and equity investments of
two portfolio companies that was 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
03.31.2025 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
$0.05 during the quarter ended December 31, 2024. Adjusted Net Realized
and Unrealized Gain/(Loss) Per Share1 for the quarter ended December 31,
2024 was $0.03 when excluding $0.02 per share net reversal of unrealized
depreciation and realized loss resulting from the amortization of the
purchase premium.
-- Earnings per share for the quarter ended March 31, 2025 was $0.30 as
compared to $0.42 for the quarter ended December 31, 2024. Adjusted
Earnings Per Share1 for the quarter ended March 31, 2025 was $0.30 as
compared to $0.42 for the quarter ended December 31, 2024.
-- Net asset value ("NAV") per share decreased to $15.04 at March 31, 2025
from $15.13 at December 31, 2024.
-- On March 28, 2025 we paid a quarterly distribution of $0.39 per share.
-- On May 2, 2025, our board of directors declared a quarterly distribution
of $0.39 per share, which is payable on June 27, 2025, to stockholders of
record as of June 13, 2025.
-- Accretive capital management in response to market volatility through (i)
issuance of 2.4 million shares of our common stock, at a premium to NAV,
under our equity distribution agreement with net proceeds totaling
approximately $38 million, after giving effect to sales agents'
commissions and certain estimated offering expenses and (ii) during the
period March 1, 2025 through May 5, 2025 we repurchased approximately 2.5
million shares of our common stock for an aggregate purchase price of
approximately $35 million, at an aggregate price of $14.00 per share.
-- During the three months ended March 31, 2025, the Golub Capital Employee
Grant Program Rabbi Trust (the "Trust") purchased approximately $13.0
million, or 832,821 shares, of our common stock for the purpose of
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