NYSE$BBDC

Barings Bdc Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported strong Q3 2023 results, out-earning the dividend by 20% and demonstrating solid portfolio performance despite elevated base rates.

Barings BDC reported a strong third quarter, with net investment income increasing by 19% year-over-year. The company out-earned its dividend by 20% and continues to demonstrate strong credit culture and flexible capital solutions.

  • Net investment income for Q3 2023 was $33.3 million, or $0.31 per share.
  • NAV per share as of September 30, 2023, was $11.25, compared to $11.34 as of June 30, 2023.
  • The company made 10 new investments totaling $64.5 million and invested $73.4 million in existing portfolio companies.
  • A quarterly cash dividend of $0.26 per share was declared.

Headline financials

Total Revenue

$3.62M

Previous: $6.3M-42.6%
EPS (adj)

$0.31

Previous: $0.26+19.2%
Weighted Average Yield on Performing Debt Investments

10.6%

Previous: 8.6%+23.3%
Debt-to-Equity Ratio

1.27

Previous: 1.12+13.4%
Net Debt-to-Equity Ratio

1.18

Previous: 0.99+19.2%
Free Cash Flow

$98.1M

Previous: $5.93M+1553.6%
Net Income

$98.1M

Previous: $5.93M+1553.6%
Operating Income

-$12.6M

Previous: -$7.65M-64.5%
Gross Profit

$3.22M

Previous: $6.3M-49.0%
Cash & Equivalents

$33.1M

Previous: $96.7M-65.7%
Total Assets

$2.74B

Previous: $2.65B+3.6%

Revenue & EPS history

Barings BDC · Revenue · Quarterly

$3.62M

Q3 2023-42.6%vs Q3 2022
Beat estimate in 5 of 13 quarters(38%)
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 September 30, 2023, the Company made approximately $105.3 million of new commitments, of which $96.7 million closed and funded. The $96.7 million of investments consists of $94.6 million of first lien senior secured debt investments, $2.0 million of subordinated debt investments and $0.1 million of equity investments. The weighted average yield of the debt investments was 13.1%.

Tailwinds

  • The company made approximately $105.3 million of new commitments after the quarter.
  • $96.7 million of these commitments were closed and funded.
  • These investments included $94.6 million in first lien senior secured debt investments.
  • $2.0 million was allocated to subordinated debt investments.
  • $0.1 million was invested in equity investments.

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 Q3 2023

Historical avgQ3 2023

+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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