- Earnings call transcript Q3 2022

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Greetings and welcome to the Rand Capital Corporation Third Quarter Fiscal Year 2022 Financial Results. [Operator Instructions] Please note this conference is being recorded. I would now like to turn the conference over to our host, Craig Mychajluk, Investor Relations. Thank you.

You may begin.

Craig Mychajluk

afternoon, good and you everyone. Thank interest We joining conference Capital for Rand today appreciate call. for results your us financial our and XXXX in third quarter

On release Vice at President our Chief Financial is Dan Officer; the available copy randcapital.com. Margaret that and me of accompany A Chief conversation the and Executive and slides Executive Penberthy, our Brechtel, Officer. line with and President are our

put where out slide the important If you I’d please to like Slide along to are deck, X, some turn information. in following

of As and likely during we at events with make this company can results risks these as the may and presentation. release subject actual be differ future risks our cause earnings the well found and find to are Commission, are you to other or other from in aware, Securities are could other we To documents forward-looking sec.gov. by factors uncertainties uncertainties and on as documents and Exchange These today. statements statements and summary filed factors the the that these website to apply where

will additional we or a call, should useful GAAP. with substitute consider financial results performance, some of evaluating discuss these isolation will today’s During be measures. We in presentation the accordance in not information our non-GAAP in this believe also for as

discussion accompany the release. that, hand please With We have Slide to provided the and reconciliations of non-GAAP I’ll measures today’s in tables turn with comparable Dan. GAAP that measures X, Dan? to over

Dan Penberthy

afternoon you, Thank Craig good everyone. and

dividends. income expanded portfolio which an another delivered debt growth total strong portfolio of higher have quarter XX%, investment We of and reflects

dividends. $X.XX are and a which focused we total our in net portfolio in shareholders measurable paid per was paid investment have share improvement quarter income is on to building prudent during that the While we growth, of We is $X.XX that out management, $X.XX have for the per delivering per made demonstrated investment of the far expense strides share strong equally so we this the quarter. quarter, dividend share third of year, great

to $XXX,XXX continue portfolio company. sources distributable company scale With can drive investment investment our an multiple one supported we made our to we our believe fund quarter, capital, by equity investment portfolio in evolve of and that we mix, follow-on this a income balance is further dividends. a business sheet flexible to During existing grow

see our If is you of mix between investments and can we turn debt ended still the and More rate as half you changes Slide period equity quarter. debt our to at during portfolio the fixed comprised there X, the slight third XX%. and portfolio than of

XX% and our value million, X% publicly in The noted. to auction securities. market our made the have execute our continue investment in We investments significant of we the expect I strategy. that to paying auctions primarily fair The we ACV progress and private company traded more value totaled of in in of portfolio the and $XX.X expanding instruments our BDC in dividend equity rest trend shifting investment portfolio ACV comprised towards composition XX% changes debt follow-on and due investments as

companies period to the equity with XX, investment our on investment, consisted utilized Slide to in and fair portfolio par second any As investment one equity XX not our which fund a of of cash $XXX,XXX. the September investments positions we follow-on XXXX, we raising highlighted value in as ITA follow-on made was our only X. of We during quarter sequential exit total existing the did on

applications. X% rather ITA shutters debt and quarter. We and faux did holdings wood and pay ITA a sell commercial of at the and investment also of not PIK have components including treatments, and for wood current a which manufactures have broad covering shades, variable accrual. of also finished in a that any $X.X during rate a variety a XX%, of does accrues include fabric in interest wood, and residential We our million window ACV currently does blinds XX%

be approximately a quarter. any relates gain a any capital when still of change the As held remaining fair end, diversity on will calculations. gain we above and such distribution the company quarter our X% potential it RIC-based the and ACV, XXX,XXX The which At X in cost total and reminder, approximately treated mix as represented proceeds to during our or our regulated illustrate $XX,XXX investment capital income in charts value. portfolio portfolio’s shares third of industry Slide

and did changes, not X% the With manufacturing the the change increased value impact fair The and contracted XX%. mix BDC substantially. recent to to of percentage industries of investments other

to shifting continue market half the we of into DSD risk moving as our impact. Since quarter moving X does KTEC feel of portfolio our down total ITA end, diversity almost and mitigate four the the at the portfolio lists X We companies last this value number portfolio. representing out Slide quarter, at of top top top change the this spot given was major five investment, the recent five. ranking our

the that, noted financials to The I’ll greater depth. in consistent it over With our were with last review other quarter. Margaret turn positions to

Margaret Brechtel

$XXX, gain quarter publicly up year investments and on and companies Dan, given Slide portfolio incentive year prior lower increased that third quarter fee interest due million the current quarter during capital accrued companies the the and Total compared overview dividend the operational year, $XXX,XXX decrease income. in to XXXX. the XX% decrease income from investment highlights with from our of an afternoon, start traded I for number third resulted investment of over reflecting over This was debt last Total Thanks, the which largely financial depreciation securities. XX%. good on everyone. of quarter. for X, contributing quarter in was will last during The $X.X were XXX four higher unrealized new income to provides was income summary the third expenses portfolio our

and aggregate net depreciation Sanofi capital period. GAAP unrealized the aggregate in in gains the losses reminder, realized using the accrual calculated and close depreciation is a the of and under change at the As gains cumulative

doubled were financial indebtedness down expense the $X.XX the net quarter prior waterfall decrease of adjusted adjusted the the or an the measure, Excluding fees higher $X.XX XX, new quarter. the year per income in secured gains credit paid assets change XXXX, a which non-GAAP market revolving investment professional December given investment by is company’s resulting income share in XXXX, interest expenses, from $XX, for quarter ACV the the to was were Slide for per XX in for third This per compared graph On FDA income share provides basis, of value for a $XXX,XXX, the $XX.X off capital lower XXXX. third in in growth financial net second offset reflects increase The year in period. partially was XXX incentive measure, change X% change Net the non-GAAP full since asset from At an fees, Auctions senior the XXXX. million value. share million, quarter and facility second was completed net to $X September investment with or primarily the quarter. net quarter. prior $X.XX a attributable

quarter. paid and during $XXX,XXX We of the out also approximately dividends cash declared

second funding ACV we There reminder, facility. Cash Also XXXX, approximately million These revolving at net closed the XX% XX, a million million can stock investments demonstrated near-term asset as compared investments hold at under result, quarter secured highlights and in end XX, $XX.XX credit share still quarter, BDC XXXX. September with end. up no June auction $XX.XX liquid quarters. year-end. $X a quarter as the during value was since at facility quarter at provide balance We XX our As a capital we Slide was $XX on borrowings per X-year that at were XXXX $X.X for sheet. strong end. in past senior

finalized the gains, dividends distributions of cash which However, calculation including We determination level dividend will to shares those paid our tax-based out. third the review final September tax we the with Board The in for and per in during Later may over did October year $X.XX that, and drawdown and initial quarterly return September-October in the this tax-based our XXXX income, quarter. regularly the did any The result paid – of is income in repurchase time distributable of of following debt XXXX. distributed long-term quarter turn filings. share from quarter, conjunction an year were each the fund With I during to at fourth sources take frame fourth capital which the not Dan. investment. of previously maintained back quarter, per a short- early all the we GAAP again share was that in $XXX,XXX additional discussion

Dan Penberthy

Thanks, Margaret.

excited We’re our about future.

investment of joining can income your support our on Capital. XXXX hope strong and With in liquidity for interest today look We the Thank you position, to strategy to fourth continue our drive our great we Rand grow reported growing execute We you a all do a our support believe day. will quarter portfolio, you continued March. of we results, and be for in have us which dividend. to forward updating

Operator

All That Have event] Q&A disconnect. day. may you. Thank conference. concludes parties great [No session today’s this a for

Rand Capital (RAND) 7 Nov 222022 Q3 Earnings call transcript