NYSE$BBDC

Barings Bdc Inc · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported strong net earning-asset growth and stable credit quality.

Barings BDC reported total investment income of $19.9 million, net investment income of $9.2 million, or $0.19 per share, and a net increase in net assets resulting from operations of $22.8 million, or $0.46 per share. Net asset value ("NAV") per share as of December 31, 2020 was $10.99.

  • Experienced strong net earning-asset growth and stable credit quality in Q4 2020.
  • Completed the rotation out of its initial broadly syndicated loan portfolio.
  • Completed acquisition of MVC and onboarded approximately $185 million of investments.
  • Originations in new middle-market investment commitments were $528 million.

Headline financials

Total Revenue

$19.9M

No prior period
EPS (adj)

$0.19

No prior period
Weighted Average Yield on Performing Debt Investments

7.1%

No prior period
Net Asset Value Per Share

$10.99

No prior period
Debt-to-Equity Ratio

1.32

No prior period
Net Debt-to-Equity Ratio

1.04

No prior period
Net Income

$9.21M

No prior period
Operating Income

$9.28M

No prior period
Cash & Equivalents

$62.7M

No prior period
Total Assets

$1.68B

No prior period

Revenue & EPS history

Barings BDC · Revenue · Quarterly

$19.9M

Q4 2020
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

Company continues to further diversify its underlying asset base across its wide frame of investment reference and deploy capital into attractive, global middle-market and cross-platform investments.

Tailwinds

  • Continued earning-asset growth.
  • Income contribution from the MVC acquisition.
  • Deployment of capital into attractive investments.
  • Further diversification of its underlying asset base.
  • Opportunity for earnings and NAV expansion.

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 Q4 2020

Historical avgQ4 2020

+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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