NYSE$BBDC

Barings Bdc Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Reported financial and operating results for the first quarter of 2022 and announced an increased quarterly cash dividend of $0.24 per share.

Barings BDC reported a strong quarter with net portfolio growth, consistent investment performance, and the closure of the Sierra transaction. The company reported total investment income of $43.8 million, net investment income of $19.0 million, or $0.23 per share, and a net increase in net assets resulting from operations of $21.0 million, or $0.25 per share.

  • Net asset value per share as of March 31, 2022 was $11.86, compared to $11.36 as of December 31, 2021.
  • The increase in NAV per share was primarily attributed to the net impact of the acquisition of Sierra Income Corporation and net unrealized appreciation on the Company's investment portfolio.
  • The company made 22 new investments totaling $229.3 million and purchased $442.2 million of investments as part of the acquisition of Sierra.
  • The Board of Directors declared a dividend increase of 4% to $0.24 per share in the second quarter.

Headline financials

Total Revenue

$43.8M

Previous: $30.6M+43.0%
EPS (adj)

$0.23

Previous: $0.22+4.5%
Weighted Average Yield on Performing Debt Investments

7.3%

No prior period
Net Asset Value Per Share

$11.86

No prior period
Debt-to-Equity Ratio

1.12

No prior period
Net Debt-to-Equity Ratio

0.89

No prior period
Net Income

$19M

No prior period
Cash & Equivalents

$154M

No prior period
Total Assets

$2.85B

No prior period

Revenue & EPS history

Barings BDC · Revenue · Quarterly

$43.8M

Q1 2022+43%vs Q1 2021
Beat estimate in 6 of 13 quarters(46%)
ActualEstimate

Revenue by segment

Barings BDC · $32.1M total across 3 segments · Q1 2022

  • Non-Control / Non-Affiliate
    $31.6M
  • Control Investments
    $273K
  • Affiliate Investments
    $172K

Forward guidance

Subsequent to March 31, 2022, the Company made approximately $174.4 million of new commitments, of which $141.0 million closed and funded. Effective on April 1, 2022, the Company increased aggregate commitments under its senior secured credit facility with ING Capital LLC to $1.1 billion from $965.0 million.

Tailwinds

  • New commitments of approximately $174.4 million were made.
  • $141.0 million of new commitments closed and were funded.
  • Aggregate commitments under the senior secured credit facility with ING Capital LLC increased to $1.1 billion.
  • $120.9 million of first lien senior secured debt investments were funded.
  • $16.2 million of second lien senior secured and subordinated debt investments were funded.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2022

Historical avgQ1 2022

+1.3%

Avg return

Earnings day

+0.9%

Avg return

5 days after

-1.2%

Avg return

30 days after

71%

15 / 21 earnings

Positive

+6.0%

Q2 2024

Best reaction

-3.9%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-0.2%-3.2%-6.2%
Q4 2025+0.9%-2.3%-10.5%
Q3 2025-0.7%-1.5%-2.1%
Q1 2025+1.0%+3.1%+3.3%
Q4 2024+2.7%-3.0%-8.7%
Q3 2024+3.1%+2.7%+2.7%
Q2 2024+6.0%+3.7%+3.5%
Q1 2024-1.9%+0.9%+2.2%
Q4 2023+5.8%+8.6%-0.8%
Q3 2023-3.9%-3.8%-6.2%
Q2 2023+5.8%+7.1%+5.1%
Q1 2023-2.4%-3.2%+7.1%
Q4 2022+0.3%+0.7%-9.9%
Q3 2022+2.9%+1.1%-3.1%
Q2 2022+2.1%+2.7%-5.0%
Q1 2022+1.5%+0.4%+1.1%
Q4 2021+0.6%+0.8%-3.3%
Q3 2021+0.7%+0.0%-4.6%
Q2 2021+2.7%+2.9%+3.5%
Q1 2021+1.3%+0.4%+3.2%
Q4 2020-0.2%+0.9%+3.8%

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