This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

Golub Capital BDC's CEO Discusses F3Q 2012 Results - Earnings Call Transcript

Net income for the quarter was $5.4 million or $0.21 a share and that compared to $11.4 million or $0.48 per share for the quarter ended March 31. So, let’s look at net investment income inclusive of the TRS income of $0.30 versus EPS of $0.21, and let me walk you through bridge of the $0.09 differential between the two. There are three principal pieces.

The first is, we had a net realized and unrealized loss of $0.01 on the termination of the total return swap. The last page of the presentation that summarizes the inception to conclusion performance of the total return swap and you can see it was quite a successful investment for BDC generating about $3.9 million of total profit, but we experienced a small net loss not including spread payments during the period from quarter end to termination as loan prices fell modestly from March 31 to the termination date. So that’s one piece, we’ve lost $0.01 on the TRS.

The second piece is net realized and unrealized losses on investments, that constituted about $800,000 for the quarter or about $0.03 a share and that was primarily the result of a write-down on new non-earning asset. We’ll talk more about that later as well.

And finally, we lost $0.05 of share in net realized and unrealized losses on futures contracts designed to hedge interest rate risk associated with unpriced SBIC debentures. So the three pieces are a penny on the swap, $0.03 on changes in the fair value of investments, and $0.05 on the futures hedge.

I want to spend a minute on the futures head just to make sure everybody understands it. Firstly, I’d say, despite the net loss on the hedge, we still think it was the right thing to do to put this on. Let me remind you why we did it. So the way the SBIC program works, we draw down new SBIC debentures and pay a temporary rate until this June or September or March of each year.

Read the rest of this transcript for free on seekingalpha.com

Stock quotes in this article: GBDC 

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs