RAND CAPITAL CORP Q3 FY2024 earnings call

• Rand delivered strong Q3 performance with 27% increase in total investment income to $2.2 million, driven by diversified income-generating portfolio and enhanced fee income.
• Net asset value per share rose 3% QoQ and 16% YTD to $27.29. Portfolio is 74% debt, 26% equity.
• Successfully exited several key investments: $13.1 million proceeds from SciAps sale, $1.3 million from sale of remaining BVCs shares, realized gains from these exits.
• Lowered bank debt by $13.3 million, leaving $3.9 million outstanding at quarter-end, benefiting from Fed rate reductions and lower interest expenses.
• Dividends have risen from $0.44 per share in 2021 to $1.33 in 2023, with $0.83 per share paid in Q3 2024, and fourth quarter dividend expected in early December.

Rand Capital achieved robust growth in total investment income, increasing 27% over the prior year period to $2.2 million. The portfolio is concentrated 74% in debt investments with an overall yield of 13.8%, and 26% in equity investments in private companies. Net asset value per share rose 3% from the prior quarter, and 16% year-to-date, reaching $27.29 at the end of the third quarter. Total assets decreased by 12% to $79.8 million primarily due to the sale of SciAps. The portfolio distribution shifted with professional services allocation increasing from 43% to 50% and manufacturing decreasing from 25% to 16%.

• Continue to expand debt portfolio while maintaining equity exposure for long-term gain potential.
• Deploy available capital efficiently to fuel growth, leveraging revolving credit facility and lower borrowing costs from Fed rate reductions.
• Optimize portfolio holdings based on current market conditions to maximize future returns.
• Fourth quarter dividend announcement expected in December, and quarter and full year 2024 results to be reported in March.

• Forward-looking statements are subject to risks and uncertainties, including factors that could cause actual results to differ from projections, as detailed in the earnings release and SEC filings.

Q: No questions asked during the call A: No Q&A exchanges