Golub Capital BDC, Inc. (NASDAQ:GBDC) Q4 2020 Earnings Conference Call - Final Transcript

Dec 01, 2020 • 11:00 am ET


Golub Capital BDC, Inc. (NASDAQ:GBDC) Q4 2020 Earnings Conference Call - Final Transcript


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Welcome to GBDC September 30, 2020 Quarterly Earnings Conference Call. Before we begin, I would like to take a moment to remind our listeners that remarks made during this call may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements other than statements of historical facts made during this call may constitute forward-looking statements and are not guarantees of future performance or results and involve a number of risks and uncertainties.

Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including those described from time-to-time in GBDC's filings with the SEC. For materials the company intends to refer to on today's earnings conference call, please visit the Investor Resources tab on the homepage of the company's website www.golubcapitalbdc.com and click on the Events or Presentations link. GBDC's earnings release is also available on the company's website in the Investor Resources section. As a reminder, this call is being recorded for replay purposes.

I will now turn the call over to David Golub, Chief Executive Officer at Golub Capital BDC. Please go ahead.

David B. Golub

Thanks Alicia. Hello everybody, and thanks for joining us today. I'm joined by Ross Teune, our CFO; Greg Robbins and Jon Simmons both Managing Directors at Golub Capital. We and the rest of the Golub Capital team hope that you and your family are safe and that like us you're all recovering from eating too much over Thanksgiving. Yesterday afternoon we issued our earnings press release for the quarter and fiscal year ended September 30 and we posted an earnings presentation on our website. We're going to refer to that presentation throughout the call today. For those of you who are new to GBDC, our investment strategy is, and since inception has been to focus on providing first lien senior secured loans to healthy, resilient middle market companies that are backed by strong partnership-oriented private equity sponsors.

Let me start today's meeting by sharing with you two headlines. The first headline is that GBDC's results for fiscal Q4 were strong and were in line with the preliminary estimates that we filed on October 19. The primary driver of the results was the continuation of trends that we described on last quarter's earnings call, and I'll discuss those trends in a minute. The second headline is that GBDC's very well-positioned as we head into fiscal 2021 with ample dry powder liquidity and flexibility to capitalize on what we expect will be an attractive investment environment in fiscal 2021. I'll discuss this in more detail in my closing remarks. And after that, we'll take your questions. Let's now take a closer look at GBDC's results for the quarter and for the fiscal year and the key drivers of those results.

Please turn to slide 4. For fiscal Q4, GBDC's adjusted net investment income per share was $0.28, adjusted EPS was $0.57 and ending NAV per share was $14.33. All of these were at the