Golub Capital BDC Inc reported record adjusted net investment income in the fourth quarter of fiscal 2023.

  • Adjusted net investment income hit an all-time high of $0.50 per share in Q4.

  • Net asset value per share increased to $15.02 from $14.83 in the prior quarter.

  • GBDC declared a quarterly distribution of $0.37 per share and an additional distribution of $0.07 per share.

  • The investment portfolio at fair value decreased slightly to $5.516 billion from $5.525 billion.

On November 20, 2023, Golub Capital BDC Inc (NASDAQ:GBDC) released its 8-K filing announcing its financial results for the fiscal fourth quarter ended September 30, 2023. The company reported its highest adjusted net investment income of $0 .50 per share, marking a significant increase from $0.44 in the previous quarter. This performance highlights GBDC’s ability to generate strong income from its investment activities.

Review of financial results

GBDC’s net investment income per share rose to $0.49 for the quarter, up from $0.43 in the prior quarter. The company’s net asset value per share also increased from $14.83 to $15.02, reflecting a positive trend in the underlying value of GBDC’s investments. Adjusted net investment income, which excludes amortization of the purchase premium from the GCIC acquisition, was $0.50 per share, indicating solid operating performance.

The company’s investment portfolio at fair value fell slightly to $5.516 billion from $5.525 billion in the prior quarter. However, total assets remained relatively stable at $5.733 billion. GBDC’s earnings per share for the quarter were reported at $0.60, compared to $0.43 in the quarter ended June 30, 2023, demonstrating a solid increase in profitability.

Share Allotment and Repurchase Program

GBDC declared a quarterly distribution of $0.37 per share and an additional distribution of $0.07 per share, reflecting its commitment to providing shareholder value. The company also continued its share repurchase program, repurchasing approximately $0.1 million worth of shares during the quarter, demonstrating confidence in the intrinsic value of its shares.

Portfolio composition and investment activity

The company’s investment portfolio consists of 342 portfolio companies as of September 30, 2023, with senior secured loans and one-stop loans representing the majority of investments. New investment commitments during the quarter totaled $129.55 million, with one-stop loans accounting for the largest share at 80.4%.

Liquidity and capital resources

GBDC reported cash and cash equivalents of $69.8 million and restricted cash and cash equivalents of $70.4 million. The company had $3.133 billion in outstanding debt and approximately $703.1 million in remaining availability under its revolving credit facility with JPMorgan, indicating a strong liquidity position to support ongoing investment activities.

Asset quality and future prospects

GC Advisors, GBDC’s investment advisor, regularly assesses the risk profile of the company’s investments, with the majority of the portfolio maintaining favorable internal performance ratings. Looking forward, GBDC is positioned to continue its strategy of investing in mid-market companies, often sponsored by private equity investors, while managing its portfolio to optimize returns and maintain asset quality.

For additional details on GBDC’s financial results, including portfolio and investment activities, as well as liquidity and capital resources, interested parties may refer to the earnings presentation available on the company’s website or the archived earnings conference call.

As a leading provider of financial news and insights, GuruFocus.com invites valued investors and potential members to examine the financial performance of Golub Capital BDC Inc (NASDAQ:GBDC) in detail and consider the opportunities it offers in the current market landscape.

View the full 8-K earnings release (here) from Golub Capital BDC Inc for additional details.

This article first appeared on GuruFocus.

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