TCG BDC, Inc. (NASDAQ:CGBD) Q3 2019 Earnings Conference Call - Final Transcript
Nov 06, 2019 • 08:30 am ET
Ladies and gentlemen, thank you for standing by and welcome to the TCG BDC Third Quarter 2019 Earnings Conference Call. At this time all participants lines are in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions] Please be advised that today's conference call is being recorded. [Operator Instructions]
I would now like to hand the conference over to one of your speakers today, Mr. Daniel Harris. Sir, please begin.
Daniel F. Harris
Thank you, Howard. Good morning and welcome to TCG BDC's third quarter 2019 earnings call. Last night we issued an earnings press release and detailed earnings presentation with our quarterly results. A copy of which is available on TCG BDC's Investor Relations website. Following our remarks today, we will hold a question-and-answer session for analysts and institutional investors. This call is being webcast and a replay will be available on our website. Any forward-looking statements made today, do not guarantee future performance and undue reliance should not be placed on them. These statements are based on current management expectations and involve inherent risks and uncertainties, including those identified in the Risk Factors section of our Annual Report on Form 10-K that could cause actual results to differ materially from those indicated. TCG, BDC assumes no obligation to update any forward-looking guidance at anytime.
With that, I'll turn it over to our President, Linda Pace.
Thank you, Dan. Good morning everyone and thank you for joining us on our call this morning to discuss our third quarter results. Joining me on the call today is our Chief Investment Officer, Taylor Boswell and our Chief Financial Officer, Tom Hennigan. Before handing the call over to Taylor and Tom, I'd like to focus my remarks today across three areas. Summarizing our financial results for the quarter; A closer look at our portfolio and the change in NAV this quarter; and a brief discussion on our dividend and capital position.
Let me start with an overview of our results for the third quarter. We generated net investment income of $27 million or $0.45 per share and we declared our regular $0.37 dividend. Our company has consistently produced net investment income well in excess of our quarterly dividend and we expect to continue this going forward. Our net asset value per share declined to $16.58 from $17.06 last quarter. Net investment income substantially exceeded the dividend, but was offset by realized and unrealized losses of approximately $0.60 per share while share repurchases were $0.04 per share accretive to NAV. Let me shift to a slightly deeper discussion on our portfolio and change in NAV this quarter.
Our BDC's portfolios highly diversified and heavily weighted with first lien positions, which represent about 70% of our portfolio as of the third quarter. We have over 140 investments in the portfolio diversified by size and sector. No single sector accounts for more than 12% of the portfolio. This portfolio construction represents our defensive approach to sustainable dividend creation, which is our investment objective.