Goldman Sachs BDC (GSBD) Q1 2025 Earnings Call May 09, 2025 09:00 AM ET Speaker0 Good morning. This is Austin Eery, a member of the Investor Relations team for Goldman Sachs BDC, Inc. And I would like to welcome everyone to the Goldman Sachs BDC, Inc. First Quarter twenty twenty five Earnings Conference Call. Please note that all participants will be in listen only mode until the end of the call when we will open up the line for questions. Before we begin today's call, I would like to remind our listeners t ...

This investor presentation may contain forward-looking statements that involve substantial risks and uncertainties. You can identify these statements by the use of forward-looking terminology such as "may," "will," "should," "expect," "anticipate," "project," "target," "estimate," "intend," "continue," or "believe" or the negatives thereof or other variations thereon or comparable terminology. You should read statements that contain these words carefully because they discuss our plans, strategies, prospects ...

Goldman Sachs BDC (GSBD) came out with quarterly earnings of $0.41 per share, missing the Zacks Consensus Estimate of $0.43 per share. This compares to earnings of $0.54 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -4.65%. A quarter ago, it was expected that this specialty finance company would post earnings of $0.50 per share when it actually produced earnings of $0.47, delivering a surprise of -6%.Over the last four quart ...

Exhibit 99.1 Goldman Sachs BDC, Inc. Reports March 31, 2025 Financial Results and Announces Second Quarterly Base Dividend of $0.32 Per Share, Special Dividend of $0.16 Per Share and First Quarter Supplemental Dividend of $0.05 Per Share. Company Release – May 8, 2025 NEW YORK — (BUSINESS WIRE) — Goldman Sachs BDC, Inc. ("GSBD", the "Company", "we", "us", or "our") (NYSE: GSBD) today reported financial results for the first quarter ended March 31, 2025 and filed its Form 10-Q with the U.S. Securities and Ex ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 814-00998 Goldman Sachs BDC, Inc. (Exact Name of Registrant as Specified in Its Charter) Delaware 46-2176593 (State or Other Jurisdiction of Incorporation or Organization) (I.R. ...

In this article GSBD Pedestrians walk past an Itau Unibanco Holding SA bank branch in Sao Paulo, Brazil. Patricia Monteiro/Bloomberg | Bloomberg | Getty Images Investors have been piling into emerging market bonds as Treasurys' long-held reputation as a safe haven took a beating following U.S. President Donald Trump's "reciprocal" tariffs. Emerging market local currency bond yields slid by 13 basis points between April 2 — when Trump announced the tariffs — and April 25, according to the most recent data pr ...

John Silas Good morning. This is John Silos, a member of the Investor Relations team for Goldman Sachs BDC, Inc. And I would like to welcome everyone to the Goldman Sachs BDC, Inc. Fourth Quarter and Fiscal Year End 2024 Earnings Conference Call. Please note that all participants will be in listen-only mode until the end of the call when we will open the line for questions. Before we begin today's call, I would like to remind our listeners that today's remarks may include forward-looking statements. These s ...

Group 1 - Goldman Sachs BDC reported quarterly earnings of $0.47 per share, missing the Zacks Consensus Estimate of $0.50 per share, and down from $0.55 per share a year ago, representing an earnings surprise of -6% [1] - The company posted revenues of $103.8 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.77%, and down from $115.4 million year-over-year [2] - Over the last four quarters, Goldman Sachs BDC has surpassed consensus EPS estimates two times, but has not beaten consensus revenue estimates [2] Group 2 - The stock has gained about 7.1% since the beginning of the year, outperforming the S&P 500's gain of 1.3% [3] - The current consensus EPS estimate for the coming quarter is $0.47 on revenues of $108.97 million, and for the current fiscal year, it is $1.83 on revenues of $435.57 million [7] - The Zacks Industry Rank for Financial - SBIC & Commercial Industry is currently in the top 22% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Financial Performance - Net investment income per share for Q4 2024 was $0.48, with adjusted net investment income per share at $0.47, reflecting an annualized yield of 14.0%[2] - Total investment income for Q4 2024 was $103.8 million, down from $110.4 million in Q3 2024, primarily due to exits and downsizing of certain investments[3] - The company's distributable earnings showed a loss of $(373,670) as of December 31, 2024, compared to a loss of $(224,579) as of December 31, 2023, indicating a worsening of approximately 66.5%[15] - Investment income for the year ended December 31, 2024, was $434.37 million, compared to $454.91 million in 2023, reflecting a decrease of approximately 4%[16] - Interest income increased to $374.20 million in 2024 from $329.64 million in 2023, representing a growth of about 13.5%[16] - Net investment income before taxes was $257.85 million, compared to $252.08 million in 2023, showing a slight increase of about 2.9%[16] - Net investment income after taxes was $252.5 million, compared to $247.2 million in the previous period, reflecting an increase of approximately 2.6%[1] - The company reported net realized and unrealized gains (losses) on investment transactions of $(155.9) million, compared to $(49.4) million in the prior period, indicating a significant decline[1] Investment and Asset Management - Total investments at fair value and commitments reached $3,968.2 million, with 97.6% in senior secured debt[2] - New investment commitments totaled $173.0 million, with sales and repayments amounting to $187.5 million during the quarter[5] - As of December 31, 2024, investments on non-accrual status represented 2.0% of the total investment portfolio at fair value[6] - The weighted average yield on debt and income-producing investments at fair value was 14.1%[6] - The company aims to generate current income primarily through direct originations of secured debt, including first lien and mezzanine debt, as well as select equity investments[18] - The company focuses on investing primarily in middle-market companies in the United States[18] Debt and Equity - The company's ending net debt-to-equity ratio was 1.17x, slightly up from 1.16x in the previous quarter[2] - The company's total debt outstanding as of December 31, 2024, was $1,926,452, compared to $1,826,794 as of December 31, 2023, indicating an increase of about 5.5%[15] - The weighted average net debt-to-EBITDA ratio is calculated based on the fair value of debt investments, with 20.5% of total debt investments at fair value as of December 31, 2024, being potentially inappropriate measures of credit risk[14] - The ending net debt-to-equity leverage ratio is calculated using total borrowings net of cash and cash equivalents, excluding unfunded commitments as of December 31, 2024[14] Dividends - The company declared a base dividend of $0.32 per share for Q1 2025, with additional special dividends of $0.16 per share for the next two quarters[2] - The company declared a base dividend of $0.32 per share and a special dividend of $0.16 per share, payable on April 28, 2025, to stockholders of record as of March 31, 2025[13] Cash and Assets - Cash and cash equivalents increased to $61,795 as of December 31, 2024, up from $52,363 as of December 31, 2023, marking a growth of approximately 17.5%[15] - The total assets of the company increased to $3,603,383 as of December 31, 2024, from $3,522,819 as of December 31, 2023, reflecting a growth of approximately 2.3%[15] Expenses - Total expenses for the year were $176.52 million, a decrease from $204.81 million in 2023, indicating a reduction of approximately 13.8%[16] - The company reported net expenses of $176.52 million for 2024, down from $202.83 million in 2023, which is a decrease of approximately 13%[16] - The company experienced a significant increase in management fees, which rose to $35.23 million in 2024 from $32.54 million in 2023, reflecting an increase of approximately 8.2%[16] - Interest and other debt expenses totaled $113.71 million, slightly up from $111.30 million in 2023, indicating a marginal increase of about 2.2%[16] Forward-Looking Statements - The forward-looking statements indicate potential risks and uncertainties that could materially affect actual results, including factors identified in the "Risk Factors" section of SEC filings[18] - The company has no obligation to update or revise forward-looking statements unless required by law, emphasizing the uncertainty of future events[18] Management - The company is externally managed by Goldman Sachs Asset Management, L.P., which is a wholly-owned subsidiary of Goldman Sachs[18] Unrealized Gains and Losses - The net change in unrealized appreciation (depreciation) from non-controlled/non-affiliated investments was $(35.11) million, indicating a decrease in value[1] - The company reported a net increase (decrease) in net assets from operations of $62.86 million, compared to $19.58 million in the previous period[1]

Incentive Fees - For the years ended December 31, 2024 and 2023, Incentive Fees based on income amounted to $17.21 million and $49.42 million respectively, with the Investment Adviser waiving $1.99 million of Incentive Fees for 2023[105] - As of December 31, 2024, $6.33 million remained payable in Incentive Fees[105] - The Incentive Fee based on capital gains is calculated as 20% of the positive difference between aggregate realized capital gains and losses, excluding unrealized capital appreciation[106] - No Incentive Fees based on capital gains were accrued for the years ended December 31, 2024 and 2023[108] - In Quarter 1, the Incentive Fee based on income payable was $1.2 million, calculated from an Ordinary Income of $6.0 million exceeding the Hurdle Amount of $1.75 million[111] - In Quarter 2, the Incentive Fee based on income payable was $300,000, as the aggregate Ordinary Income for the Trailing Twelve Quarters exceeded the aggregate Hurdle Amount[112] - In Quarter 3, due to an aggregate Net Capital Loss of ($4.0) million, no Incentive Fee based on income was payable[113] - In Quarter 4, the Incentive Fee based on income payable was capped at $900,000 due to an aggregate Net Capital Loss of ($1.0) million[114] - The calculation of the Incentive Fee based on capital gains for Year 1 resulted in a fee of $1.0 million[118] Management Fees and Investment Management Agreement - The Board of Directors approved the continuation of the Investment Management Agreement, focusing on the quality of advisory services and comparative fee structures[120] - For the year ended December 31, 2024, the company paid a total of $59.08 million in fees to its Investment Adviser, a decrease from $70.22 million in 2023, representing a reduction of approximately 15%[122] - Management Fees for 2024 amounted to $35.16 million, while Incentive Fees were $23.92 million, compared to $35.83 million and $34.39 million respectively in 2023[122] - The Investment Management Agreement is set to continue until August 31, 2025, subject to annual approval by a majority of Independent Directors and the Board of Directors[123] Regulatory Compliance and Risk Management - The Investment Adviser is not liable for losses except in cases of willful misfeasance, bad faith, or gross negligence, which may lead to riskier investment behavior[124] - The company is subject to regulatory requirements under the Investment Company Act, including restrictions on transactions with affiliates and the need for majority approval for certain changes[132] - The company is required to adopt and implement written policies and procedures to prevent violations of federal securities laws and designate a chief compliance officer[158] - The Sarbanes-Oxley Act mandates that the principal executive officer and principal financial officer certify the accuracy of financial statements in periodic reports[159] - Compliance with the Bank Holding Company Act may impose restrictions on the company's investments and operations, potentially affecting its investment strategies[161] - The company is subject to supervision and regulation by the Federal Reserve, which may limit its ability to make certain investments[161] - There is a risk that regulatory requirements applicable to the company may change, potentially having a material adverse effect on its operations[161] Investment Strategy and Asset Management - The company may invest up to 100% of its assets in privately negotiated transactions, with specific limitations on investments in registered investment companies[134][135] - The company must maintain at least 70% of its total assets in qualifying assets as defined by the Investment Company Act[137] - The principal categories of qualifying assets include securities purchased in private transactions from eligible portfolio companies[137] - The company may invest in temporary investments such as cash equivalents and U.S. government securities to ensure that 70% of its assets are qualifying assets[142] - The company may borrow amounts up to 5% of the value of its total assets for temporary or emergency purposes without regard to asset coverage[143] - The company is permitted to issue multiple classes of indebtedness and one class of shares senior to common stock if the asset coverage ratio is at least 150% after issuance[143] - The Small Business Credit Availability Act allows the company to borrow amounts such that the asset coverage ratio is at least 150%, reduced from the previous requirement of 200%[143] Interest Rate Sensitivity - As of December 31, 2024, approximately 99.4% of the company's performing debt investments bore interest at a floating rate, while only 0.6% bore interest at a fixed rate[462] - The company expects that changes in interest rates will significantly impact its net investment income, particularly due to its reliance on borrowings for funding investments[461] - A 300 basis point increase in interest rates is projected to result in a net income increase of $60.31 million, while a 300 basis point decrease would lead to a net income decrease of $60.14 million[464] - The company regularly measures its exposure to interest rate risk and manages this exposure by comparing interest rate sensitive assets to liabilities[463] - The company may utilize hedging instruments such as futures, options, and forward contracts to mitigate interest rate fluctuations in the future[464] - The company’s borrowings under its Revolving Credit Facility bear interest at a floating rate, which adds to its interest rate sensitivity[462] Corporate Governance - The company’s common stock is listed on the NYSE under the symbol "GSBD" and is subject to various corporate governance listing standards[160] - The company has adopted a Code of Ethics to establish procedures for personal investments and restrict certain personal securities transactions[144] - The company has delegated the voting of portfolio securities to its Investment Adviser, which has adopted a Proxy Voting Policy to maximize stockholder value[146]