Goldman Sachs BDC, Inc. Reports September 30, 2024 Financial Results and Announces Quarterly Dividend of $0.45 Per Share
QUARTERLY HIGHLIGHTS
-
Net investment income per share for the quarter ended
September 30, 2024 was$0.58 . Excluding purchase discount amortization per share of$0.01 from the Merger (as defined below), adjusted net investment income per share was$0.57 , equating to an annualized net investment income yield on book value of 16.8%.1 Earnings per share for the quarter endedSeptember 30, 2024 was$0.32 . -
Net asset value ("NAV") per share for the quarter ended
September 30, 2024 decreased 1.0% to$13.54 from$13.67 as ofJune 30, 2024 . -
As of
September 30, 2024 , the Company’s total investments at fair value and commitments were$4,017.5 million , comprised of investments in 167 portfolio companies across 41 industries. The investment portfolio was comprised of 97.6% senior secured debt, including 96.3% in first lien investments2. -
During the quarter, the Company had gross originations of approximately
$376.6 million of which$212.7 million were funded. Fundings of previously unfunded commitments for the quarter were$47.0 million and sales and repayments activity totaled$329.1 million , resulting in net funded investment activity of$(69.4) million . -
During the quarter, there were changes to accrual status for two portfolio companies.
Pluralsight, Inc. was restructured and one first lien position remained on non-accrual status and another first lien position was restored to accrual status. Additionally, we exitedZodiac Intermediate, LLC , also known as Zipari, which had previously been on non-accrual status through a sale of the company. As ofSeptember 30, 2024 , investments on non-accrual status amounted to 2.2% and 4.5% of the total investment portfolio at fair value and amortized cost, respectively. -
The Company’s ending net debt-to-equity ratio was 1.16x as of
September 30, 2024 and 1.19x as ofJune 30, 2024 . -
As of
September 30, 2024 , 66.7% of the Company’s approximately$1,887.8 million aggregate principal amount of debt outstanding was comprised of unsecured debt and 33.3% was comprised of secured debt.4 -
The Company’s Board of Directors declared a regular fourth quarter 2024 dividend of
$0.45 per share payable to shareholders of record as ofDecember 31, 2024 .3 -
On
November 15, 2023 , the Company entered into an equity distribution agreement, pursuant to which it may issue up to$200 million in aggregate offering price of shares of its common stock through at-the-market offerings. During the three months endedSeptember 30, 2024 , the Company issued and sold 285,037 shares for net proceeds of approximately$3.9 million , net of underwriting and offering costs of approximately$0.1 million .
SELECTED FINANCIAL HIGHLIGHTS
(in $ millions, except per share data) |
|
As of
|
|
As of
|
|
||
Investment portfolio, at fair value2 |
|
$ |
3,442.1 |
|
$ |
3,518.7 |
|
Total debt outstanding4 |
|
$ |
1,887.8 |
|
$ |
1,955.1 |
|
Net assets |
|
$ |
1,586.1 |
|
$ |
1,595.9 |
|
Net asset value per share |
|
$ |
13.54 |
|
$ |
13.67 |
|
Ending net debt to equity |
|
1.16x |
|
1.19x |
|
(in $ millions, except per share data) |
|
Three Months Ended
|
|
Three Months Ended
|
|
||
Total investment income |
|
$ |
110.4 |
|
$ |
108.6 |
|
|
|
|
|
|
|
||
Net investment income after taxes |
|
$ |
68.2 |
|
$ |
67.0 |
|
Less: Purchase discount amortization |
|
|
1.0 |
|
|
1.8 |
|
Adjusted net investment income after taxes1 |
|
$ |
67.2 |
|
$ |
65.2 |
|
|
|
|
|
|
|
||
Net realized and unrealized gains (losses) |
|
$ |
(30.9 |
) |
$ |
(121.4 |
) |
Add: Realized/Unrealized depreciation from the purchase discount |
|
|
1.0 |
|
|
1.8 |
|
Adjusted net realized and unrealized gains (losses)1 |
|
$ |
(29.9 |
) |
$ |
(119.6 |
) |
|
|
|
|
|
|
||
Net investment income per share (basic and diluted) |
|
$ |
0.58 |
|
$ |
0.59 |
|
Less: Purchase discount amortization per share |
|
|
0.01 |
|
|
0.02 |
|
Adjusted net investment income per share1 |
|
$ |
0.57 |
|
$ |
0.57 |
|
|
|
|
|
|
|
||
Weighted average shares outstanding |
|
|
116.9 |
|
|
114.4 |
|
Regular distribution per share |
|
$ |
0.45 |
|
$ |
0.45 |
|
Total investment income for the three months ended
Net expenses before taxes for the three months ended
INVESTMENT ACTIVITY2
The following table summarizes investment activity for the three months ended
|
|
Commitments |
|
|
Sales and Repayments |
|
||||||||||
Investment Type |
|
$ Millions |
|
|
% of Total |
|
|
$ Millions |
|
|
% of Total |
|
||||
1st Lien/Senior Secured Debt |
|
$ |
369.5 |
|
|
|
98.1 |
% |
|
$ |
319.6 |
|
|
|
97.2 |
% |
1st Lien/Last-Out Unitranche |
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
— % 10 |
|
|
2nd Lien/Senior Secured Debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
Unsecured Debt |
|
|
7.1 |
|
|
|
1.9 |
|
|
|
— |
|
|
|
— |
|
Preferred Stock |
|
|
— |
|
|
|
— |
|
|
|
9.3 |
|
|
|
2.8 |
|
Common Stock |
|
|
— |
|
|
|
— |
|
|
|
0.1 |
|
|
— % 10 |
|
|
Total |
|
$ |
376.6 |
|
|
|
100.0 |
% |
|
$ |
329.1 |
|
|
|
100.0 |
% |
During the three months ended
PORTFOLIO SUMMARY2
As of
|
|
Investments at Fair Value |
|
|||||
Investment Type |
|
$ Millions |
|
|
% of Total |
|
||
1st Lien/Senior Secured Debt |
|
$ |
3,153.3 |
|
|
|
91.6 |
% |
1st Lien/Last-Out Unitranche |
|
|
163.3 |
|
|
|
4.7 |
|
2nd Lien/Senior Secured Debt |
|
|
42.9 |
|
|
|
1.3 |
|
Unsecured Debt |
|
|
16.3 |
|
|
|
0.5 |
|
Preferred Stock |
|
|
30.1 |
|
|
|
0.9 |
|
Common Stock |
|
|
35.8 |
|
|
|
1.0 |
|
Warrants |
|
|
0.4 |
|
|
—10 |
|
|
Total |
|
$ |
3,442.1 |
|
|
|
100.0 |
% |
The following table presents certain selected information regarding the Company’s investments:
|
|
As of |
|
|||||
|
|
2024 |
|
|
2023 |
|
||
Number of portfolio companies |
|
|
167 |
|
|
|
144 |
|
Percentage of performing debt bearing a floating rate5 |
|
|
99.4 |
% |
|
|
99.9 |
% |
Percentage of performing debt bearing a fixed rate5 |
|
|
0.6 |
% |
|
|
0.1 |
% |
Weighted average yield on debt and income producing investments, at amortized cost6 |
|
|
11.8 |
% |
|
|
12.6 |
% |
Weighted average yield on debt and income producing investments, at fair value6 |
|
|
13.9 |
% |
|
|
13.8 |
% |
Weighted average leverage (net debt/EBITDA)7 |
|
6.3x |
|
|
6.1x |
|
||
Weighted average interest coverage7 |
|
1.7x |
|
|
1.5x |
|
||
Median EBITDA7 |
$ |
62.49 million |
|
$ |
53.98 million |
|
As of
LIQUIDITY AND CAPITAL RESOURCES
As of
The Company’s ending net debt-to-equity leverage ratio was 1.16x for the three months ended
CONFERENCE CALL
The Company will host an earnings conference call on
Please direct any questions regarding the conference call to
ENDNOTES
1) |
|
On |
|
|
As a supplement to our financial results reported in accordance with generally accepted accounting principles in |
2) |
|
The discussion of the investment portfolio excludes the investment, if any, in a money market fund managed by an affiliate of |
3) |
|
The |
4) |
|
Total debt outstanding excludes netting of debt issuance costs of |
5) |
|
The fixed versus floating composition has been calculated as a percentage of performing debt investments measured on a fair value basis, including income producing preferred stock investments and excludes investments, if any, placed on non-accrual. |
6) |
|
Computed based on the (a) annual actual interest rate or yield earned plus amortization of fees and discounts on the performing debt and other income producing investments as of the reporting date, divided by (b) the total performing debt and other income producing investments (excluding investments on non-accrual) at amortized cost or fair value, respectively. This calculation excludes exit fees that are receivable upon repayment of the investment. Excludes the purchase discount and amortization related to the Merger. |
7) |
|
For a particular portfolio company, we calculate the level of contractual indebtedness net of cash (“net debt”) owed by the portfolio company and compare that amount to measures of cash flow available to service the net debt. To calculate net debt, we include debt that is both senior and pari passu to the tranche of debt owned by us but exclude debt that is legally and contractually subordinated in ranking to the debt owned by us. We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual rights of repayment of the tranche of debt owned by us relative to other senior and junior creditors of a portfolio company. We typically calculate cash flow available for debt service at a portfolio company by taking net income before net interest expense, income tax expense, depreciation and amortization (“EBITDA”) for the trailing twelve month period. Weighted average net debt to EBITDA is weighted based on the fair value of our debt investments and excludes investments where net debt to EBITDA may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. |
|
|
For a particular portfolio company, we also compare that amount of EBITDA to the portfolio company’s contractual interest expense (“interest coverage ratio”). We believe this calculation method assists in describing the risk of our portfolio investments, as it takes into consideration contractual interest obligations of the portfolio company. Weighted average interest coverage is weighted based on the fair value of our performing debt investments and excludes investments where interest coverage may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. |
|
|
Median EBITDA is based on our debt investments and excludes investments where net debt-to-EBITDA may not be the appropriate measure of credit risk, such as cash collateralized loans and investments that are underwritten and covenanted based on recurring revenue. |
|
|
Portfolio company statistics are derived from the financial statements most recently provided to us of each portfolio company as of the reported end date. Statistics of the portfolio companies have not been independently verified by us and may reflect a normalized or adjusted amount. As of |
8) |
|
The Company’s Revolving Credit Facility has debt outstanding denominated in currencies other than |
9) |
|
The ending net debt-to-equity leverage ratio is calculated by using the total borrowings net of cash divided by equity as of |
10) |
|
Amount rounds to less than 0.1%. |
Consolidated Statements of Assets and Liabilities (in thousands, except share and per share amounts) |
||||||||
|
|
(Unaudited) |
|
|
|
|
||
Assets |
|
|
|
|
|
|
||
Investments, at fair value |
|
|
|
|
|
|
||
Non-controlled/non-affiliated investments (cost of |
|
$ |
3,336,893 |
|
|
$ |
3,371,910 |
|
Non-controlled affiliated investments (cost of |
|
|
105,236 |
|
|
|
42,419 |
|
Total investments, at fair value (cost of |
|
$ |
3,442,129 |
|
|
$ |
3,414,329 |
|
Investments in affiliated money market fund (cost of |
|
|
1,527 |
|
|
|
— |
|
Cash |
|
|
52,957 |
|
|
|
52,363 |
|
Interest and dividends receivable |
|
|
32,789 |
|
|
|
38,534 |
|
Deferred financing costs |
|
|
12,721 |
|
|
|
14,937 |
|
Other assets |
|
|
3,371 |
|
|
|
2,656 |
|
Total assets |
|
$ |
3,545,494 |
|
|
$ |
3,522,819 |
|
Liabilities |
|
|
|
|
|
|
||
Debt (net of debt issuance costs of |
|
$ |
1,878,107 |
|
|
$ |
1,826,794 |
|
Interest and other debt expenses payable |
|
|
8,186 |
|
|
|
13,369 |
|
Management fees payable |
|
|
8,855 |
|
|
|
8,708 |
|
Incentive fees payable |
|
|
— |
|
|
|
13,041 |
|
Distribution payable |
|
|
52,723 |
|
|
|
49,304 |
|
Unrealized depreciation on foreign currency forward contracts |
|
|
917 |
|
|
|
726 |
|
Secured borrowings |
|
|
2,473 |
|
|
|
— |
|
Accrued expenses and other liabilities |
|
|
8,145 |
|
|
|
9,052 |
|
Total liabilities |
|
$ |
1,959,406 |
|
|
$ |
1,920,994 |
|
Commitments and contingencies |
|
|
|
|
|
|
||
Net assets |
|
|
|
|
|
|
||
Preferred stock, par value |
|
$ |
— |
|
|
$ |
— |
|
Common stock, par value |
|
|
117 |
|
|
|
110 |
|
Paid-in capital in excess of par |
|
|
1,940,934 |
|
|
|
1,826,294 |
|
Distributable earnings (loss) |
|
|
(354,963 |
) |
|
|
(224,579 |
) |
Total net assets |
|
$ |
1,586,088 |
|
|
$ |
1,601,825 |
|
Total liabilities and net assets |
|
$ |
3,545,494 |
|
|
$ |
3,522,819 |
|
Net asset value per share |
|
$ |
13.54 |
|
|
$ |
14.62 |
|
Consolidated Statements of Operations (in thousands, except share and per share amounts) (Unaudited) |
||||||||||||||||
|
|
For the Three Months Ended |
|
|
For the Nine Months Ended |
|
||||||||||
|
|
2024 |
|
|
2023 |
|
|
2024 |
|
|
2023 |
|
||||
Investment income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
From non-controlled/non-affiliated investments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest income |
|
$ |
97,917 |
|
|
$ |
109,117 |
|
|
$ |
289,185 |
|
|
$ |
309,199 |
|
Payment-in-kind income |
|
|
9,961 |
|
|
|
9,221 |
|
|
|
34,452 |
|
|
|
25,673 |
|
Dividend income |
|
|
1 |
|
|
|
— |
|
|
|
1 |
|
|
|
— |
|
Other income |
|
|
794 |
|
|
|
809 |
|
|
|
2,427 |
|
|
|
2,355 |
|
From non-controlled affiliated investments: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Dividend income |
|
|
468 |
|
|
|
256 |
|
|
|
1,650 |
|
|
|
501 |
|
Interest income |
|
|
1,218 |
|
|
|
590 |
|
|
|
2,708 |
|
|
|
1,629 |
|
Payment-in-kind income |
|
|
20 |
|
|
|
53 |
|
|
|
85 |
|
|
|
153 |
|
Other income |
|
|
34 |
|
|
|
10 |
|
|
|
65 |
|
|
|
33 |
|
Total investment income |
|
$ |
110,413 |
|
|
$ |
120,056 |
|
|
$ |
330,573 |
|
|
$ |
339,543 |
|
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest and other debt expenses |
|
$ |
29,298 |
|
|
$ |
28,174 |
|
|
$ |
86,015 |
|
|
$ |
83,213 |
|
Incentive fees |
|
|
— |
|
|
|
6,237 |
|
|
|
10,882 |
|
|
|
36,376 |
|
Management fees |
|
|
8,855 |
|
|
|
8,870 |
|
|
|
26,452 |
|
|
|
26,761 |
|
Professional fees |
|
|
1,335 |
|
|
|
982 |
|
|
|
3,651 |
|
|
|
2,748 |
|
Directors’ fees |
|
|
207 |
|
|
|
204 |
|
|
|
621 |
|
|
|
619 |
|
Other general and administrative expenses |
|
|
1,046 |
|
|
|
1,137 |
|
|
|
3,143 |
|
|
|
3,220 |
|
Total expenses |
|
$ |
40,741 |
|
|
$ |
45,604 |
|
|
$ |
130,764 |
|
|
$ |
152,937 |
|
Fee waivers |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
(1,986 |
) |
Net expenses |
|
$ |
40,741 |
|
|
$ |
45,604 |
|
|
$ |
130,764 |
|
|
$ |
150,951 |
|
Net investment income before taxes |
|
$ |
69,672 |
|
|
$ |
74,452 |
|
|
$ |
199,809 |
|
|
$ |
188,592 |
|
Income tax expense, including excise tax |
|
$ |
1,490 |
|
|
$ |
1,503 |
|
|
$ |
3,809 |
|
|
$ |
3,155 |
|
Net investment income after taxes |
|
$ |
68,182 |
|
|
$ |
72,949 |
|
|
$ |
196,000 |
|
|
$ |
185,437 |
|
Net realized and unrealized gains (losses) on investment transactions: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net realized gain (loss) from: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled/non-affiliated investments |
|
$ |
(83,796 |
) |
|
$ |
(5,180 |
) |
|
$ |
(131,446 |
) |
|
$ |
(44,394 |
) |
Non-controlled affiliated investments |
|
|
— |
|
|
|
— |
|
|
|
(2,015) |
|
|
|
— |
|
Foreign currency and other transactions |
|
|
60 |
|
|
|
(10 |
) |
|
|
4,504 |
|
|
|
185 |
|
Net change in unrealized appreciation (depreciation) from: |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Non-controlled/non-affiliated investments |
|
|
56,413 |
|
|
|
(17,813 |
) |
|
|
(34,705 |
) |
|
|
6,578 |
|
Non-controlled affiliated investments |
|
|
(352 |
) |
|
|
(2,089 |
) |
|
|
(1,814 |
) |
|
|
(1,912 |
) |
Foreign currency forward contracts |
|
|
(377 |
) |
|
|
232 |
|
|
|
(191 |
) |
|
|
103 |
|
Foreign currency translations and other transactions |
|
|
(2,813 |
) |
|
|
3,568 |
|
|
|
(4,968 |
) |
|
|
(57 |
) |
Net realized and unrealized gains (losses) |
|
$ |
(30,865 |
) |
|
$ |
(21,292 |
) |
|
$ |
(170,635 |
) |
|
$ |
(39,497 |
) |
(Provision) benefit for taxes on realized gain/loss on investments |
|
$ |
(189 |
) |
|
$ |
— |
|
|
$ |
(333 |
) |
|
$ |
— |
|
(Provision) benefit for taxes on unrealized appreciation/depreciation on investments |
|
$ |
(47 |
) |
|
$ |
(62 |
) |
|
$ |
288 |
|
|
$ |
(618 |
) |
Net increase (decrease) in net assets from operations |
|
$ |
37,081 |
|
|
$ |
51,595 |
|
|
$ |
25,320 |
|
|
$ |
145,322 |
|
Weighted average shares outstanding |
|
|
116,942,390 |
|
|
|
109,535,156 |
|
|
|
113,805,819 |
|
|
|
107,881,454 |
|
Basic and diluted net investment income per share |
|
$ |
0.58 |
|
|
$ |
0.67 |
|
|
$ |
1.72 |
|
|
$ |
1.72 |
|
Basic and diluted earnings (loss) per share |
|
$ |
0.32 |
|
|
$ |
0.47 |
|
|
$ |
0.22 |
|
|
$ |
1.35 |
|
ABOUT
FORWARD-LOOKING STATEMENTS
This press release may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as “may,” “will,” “should,” “expect,” “anticipate,” “project,” “target,” “estimate,” “intend,” “continue,” or “believe” or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects and expectations concerning our business, operating results, financial condition and other similar matters. These statements represent the Company’s belief regarding future events that, by their nature, are uncertain and outside of the Company’s control. Any forward-looking statement made by us in this press release speaks only as of the date on which we make it. Factors or events that could cause our actual results to differ, possibly materially from our expectations, include, but are not limited to, the risks, uncertainties and other factors we identify in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in filings we make with the
View source version on businesswire.com: https://www.businesswire.com/news/home/20241107728773/en/
Investor Contact:
Media Contact:
Source: