Gladstone Capital Corp (GLAD) 2025 Q2 法說會逐字稿

Greetings. Welcome to Gladstone Capital Corporation. 2nd quarter earnings call.

問候。歡迎來到格拉斯頓資本公司。第二季財報電話會議。

(Operator Instructions)

（操作員指示）

It is now my pleasure to introduce Mr. David Gladstone, Chief Executive Officer.

現在我很高興介紹執行長戴維·格拉德斯通先生。

Thank you, sir. You may begin.

謝謝您，先生。你可以開始了。

Well, thank you, Sherry. This is David Gladstone, Chairman, and this is the earnings conference call for Gladstone Capital with a quarter ending March 31st, 2025.

好吧，謝謝你，雪莉。我是董事長戴維·格拉德斯通 (David Gladstone)，這是格拉德斯通資本 (Gladstone Capital) 截至 2025 年 3 月 31 日的季度收益電話會議。

Thank you for calling in. We're always happy to talk to our shareholders and analysts who follow us and welcome the opportunity to provide an update on our company and maybe give a little information about where we're going.

謝謝您的來電。我們始終樂意與關注我們的股東和分析師進行交流，並歡迎有機會提供有關我們公司的最新動態，甚至提供一些有關我們未來發展方向的資訊。

And now we'll start out with Eric Helmutt. He's standing in for Michael Lakowski on the general counsel side, and he's going to give us some information about forward-looking statements Eric.

現在我們先從 Eric Helmutt 開始。他在總法律顧問方面擔任邁克爾·拉科夫斯基 (Michael Lakowski) 的職務，他將向我們提供一些有關前瞻性聲明的信息，埃里克。

Thank you, David, and good morning. Today's report and forward-looking statements under the Securities Act of 1,933, Securities Exchange Act of 1,934, including those regarding our future performance. These forward-looking statements involve certain risks and uncertainties that are based upon our current plans which we believe to be reasonable.

謝謝你，大衛，早安。今天的報告和根據 1933 年證券法、1934 年證券交易法所做的前瞻性陳述，包括有關我們未來業績的陳述。這些前瞻性陳述涉及某些風險和不確定性，這些風險和不確定性是基於我們認為合理的當前計劃。

Many factors may cause our actual results to be materially different from any future results expressed or implied by these forward-looking statements, including all risk factors in our forms 10Q, 10k, and other documents that we file with the SEC.

許多因素可能導致我們的實際結果與這些前瞻性陳述所表達或暗示的任何未來結果有重大差異，包括我們向美國證券交易委員會提交的 10Q、10k 表格和其他文件中的所有風險因素。

Those can be found on the investor relations page of our website www. Gladstone Capital.com, where you can also sign up for our email notification service or on the SEC's website at www.SEC.gov.

這些可以在我們網站 www. 的投資者關係頁面上找到。您也可以造訪 Gladstone Capital.com 來註冊我們的電子郵件通知服務，或造訪美國證券交易委員會 (SEC) 的網站 www.SEC.gov。

We undertake no obligation to publicly update or revise any of these forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by law. Today's call is an overview of our results, so we ask you to review our press release and Form 10Q issued yesterday for more detailed information. Again, those can be found on the investors page of our website.

除非法律要求，我們不承擔公開更新或修改任何這些前瞻性聲明的義務，無論由於新資訊、未來事件或其他原因。今天的電話會議概述了我們的業績，因此我們請您查看我們昨天發布的新聞稿和 10Q 表，以獲取更多詳細資訊。同樣，您可以在我們網站的投資者頁面上找到這些資訊。

Now I'll turn the call over to Gladstone Capital's President, Bob Marcotte.

現在我將把電話轉給 Gladstone Capital 總裁 Bob Marcotte。

Thank you, Eric. Good morning and thank you all for dealing in this morning.

謝謝你，埃里克。早安，感謝大家今天早上的參與。

I'll cover the highlights of the quarter ended March 30th first and a few subsequent events before concluding with some comments on our near-term outlook for the company.

我將首先介紹截至 3 月 30 日的季度亮點和一些後續事件，最後對該公司近期前景發表一些評論。

Beginning with last quarter's results, fundings totalled $46 million including two new private equity sponsored investments in the semiconductor infrastructure and food products sectors. Exits and repayments remained elevated at $81 million as we exited two investments as anticipated, so net originations were negative $35 million. However, excluding the equity investment proceeds in the period, our yielding debt investments declined by 20 million compared to the prior quarter end.

從上個季度的結果來看，融資總額已達 4,600 萬美元，其中包括對半導體基礎設施和食品產品領域的兩項新的私募股權投資。由於我們按預期退出了兩項投資，退出和償還金額仍保持在 8,100 萬美元的高位，因此淨發起金額為負 3,500 萬美元。然而，若不計入本期股權投資收益，我們的收益性債務投資較上一季末減少了 2,000 萬美元。

Interest income for the period was unchanged at 21.3 million as the 6.3% increase in the average earning assets was offset by the decline in the weighted average portfolio yield, which fell to 12.6% for the quarter due primarily to the 36 basis point decline in the average SOFA rates for the period.

本期間利息收入保持不變，為 2,130 萬美元，因為平均生息資產 6.3% 的增長被加權平均投資組合收益率的下降所抵消，本季度加權平均投資組合收益率降至 12.6%，主要原因是本期間平均 SOFA 利率下降了 36 個基點。

Interest and financing costs rose 5.4% with higher average line borrowings. Net management fees declined slightly and included a $1.4 million dollar incentive fee credit, and lower professional fees and other expenses declined by $500 leading to net investment income of $11.2 million for the period.

隨著平均借款額度增加，利息和融資成本上漲了 5.4%。淨管理費略有下降，其中包括 140 萬美元的激勵費用抵免，較低的專業費用和其他費用下降了 500 美元，導致該期間的淨投資收入為 1,120 萬美元。

Netized gains came in at 7.7 million for the quarter with the equity investment exits, and net realized and unrealized depreciation on the on the balance of the portfolio was $2.2 million bringing our ROE to 18.6% for the TTM period.

隨著股權投資退出，本季淨收益達到 770 萬美元，投資組合餘額的淨已實現和未實現折舊為 220 萬美元，使我們 TTM 期間的 ROE 達到 18.6%。

With respect to the portfolio turnover for the period did not have a material impact on our investment mix, as our senior debt portfolio represented 71% of the fair value of the portfolio and total debt holdings were just over 90% of the portfolio at fair value.

就本期間的投資組合週轉率而言，對我們的投資組合沒有重大影響，因為我們的優先債務投資組合佔投資組合公允價值的 71%，而總債務持有量以公允價值計算略高於投資組合的 90%。

As of the end of the quarter, our non-earning asset investments were unchanged at four companies totalling $53.7 million at cost, or $29.8 million or 4.3% of assets at fair value.

截至本季末，我們的非營利資產投資保持不變，仍為四家公司，以成本計算總計 5,370 萬美元，以公允價值計算總計 2,980 萬美元，佔資產的 4.3%。

The bulk of the realized appreciation for the quarter was led by a $4.7 million dollar gain on our equity co-investment in Social, which was sold to a strategic buy buyer shortly after the end of the quarter.

本季實現的增值大部分來自於我們對 Social 的股權共同投資所獲得的 470 萬美元收益，該投資在本季結束後不久就出售給了一位策略性買家。

The net unrealized appreciation for the period was concentrated in 3 investments in the lab testing, circuit board manufacturing, and precision metal product sectors which experience softer Q4 results. However, following the situation closely, we expect each to see improving results over the balance of 2025.

本期間淨未實現增值集中在實驗室測試、電路板製造和精密金屬產品領域的 3 項投資，這些領域的第四季業績較為疲軟。然而，密切關注形勢發展，我們預計到 2025 年，每個國家的結果都會有所改善。

Following the end of the quarter, we exited a large senior debt investment of $42 million in Spaceco, otherwise known as Carmen Aerospace, following the company's IPO and debt recapitalization. Also, as expected, we completed the restructuring of our investment in EGs, and most of our exposure has been restored to earning asset status.

本季結束後，我們在 Spaceco（又稱 Carmen Aerospace）進行了 IPO 和債務資本重組後，退出了一筆價值 4,200 萬美元的大型優先債務投資。此外，正如預期的那樣，我們完成了對 EG 投資的重組，並且我們的大部分投資已恢復為盈利資產狀態。

In reflecting on our outlook for the next quarter or two, I'd like to leave you a couple of comments.

在反思我們對未來一兩個季度的展望時，我想給大家提幾點評論。

We've absorbed much of the anticipated surge in portfolio liquidity events which, if you're keeping a tally has totalled 289 million since 930, roughly 36% of the portfolio that's been exited. That said, our current pipeline of expected funding is very healthy and should easily outpace anticipated repayments to put us back on track to grow our portfolio.

我們已經吸收了預期的投資組合流動性事件激增的大部分內容，如果你進行統計的話，自 930 年以來，總額已達到 2.89 億美元，約佔已退出投資組合的 36%。也就是說，我們目前預期的融資管道非常健康，應該很容易超過預期的還款額，讓我們重回成長投資組合的軌道。

Given some of the recent market volatility, we expect the certainty of private credit solution approach to the market to continue to resonate with the private equity community as it did in 202 and 23, and in fact we're in the process of closing several deals with new sponsors.

鑑於近期市場的一些波動，我們預計私人信貸解決方案的確定性將繼續引起私募股權界的共鳴，就像 202 年和 23 年一樣，事實上，我們正​​在與新的贊助商達成幾項交易。

In addition to recycling the wave of investment exits in the last couple of quarters, we expect to continue to benefit from our incumbent position as the originator, lead lender, and in some cases equity co-investor in the newer vintage growth oriented business closed recently as they look to grow through acquisition or expansion and support the appreciation of their equity position.

除了在過去幾個季度中重複投資退出浪潮之外，我們還希望繼續受益於我們作為發起人、牽頭貸款人以及在某些情況下作為最近關閉的較新的複古增長型企業的股權共同投資者的現有地位，因為他們希望通過收購或擴張實現增長並支持其股權地位的升值。

We ended the quarter with a conservative leverage position with debt at 62.5% of NAV and the bulk of our bank credit facility available to support the growth of our earning assets and shareholder distributions in the coming year.

本季度結束時，我們採取了保守的槓桿率，債務佔資產淨值的 62.5%，並且大部分銀行信貸額度可用於支持來年盈利資產的增長和股東分配。

And now I'd like to turn the call over to Nicole Schaltenbrand, Gladstone Capital CFO, to provide some of the details on the results for the quarter.

現在，我想將電話轉給 Gladstone Capital 財務長 Nicole Schaltenbrand，以提供有關本季業績的一些詳細資訊。

Thanks Bob. Good morning. During the March quarter, total interest income was unchanged at 21.3 million as the weighted average yield on our interest bearing portfolio declined from 13.1% to 12.6%, mainly with the 36 basis we decline in the average SOPA rate from last quarter, which was offset by a 6.3% increase in average earning assets for the period.

謝謝鮑勃。早安.在 3 月季度，總利息收入保持不變，為 2,130 萬美元，因為我們的計息投資組合的加權平均收益率從 13.1% 下降至 12.6%，這主要是因為平均 SOPA 利率較上一季度下降了 36 個基點，但這一下降被本期間平均生息資產增加 6.3% 所抵消。

Total investment income was 21.6 million, which was down $400,000 or 1.8% from last quarter, with reduced levels of fees and other income for the quarter.

總投資收入為 2,160 萬美元，比上一季下降 40 萬美元，降幅為 1.8%，本季費用和其他收入水準有所下降。

Total expenses declined 400,000 quarter over quarter due to lower professional fees, other expenses, and net management fees. This was slightly offset by a $300,000 increase in interest expenses with higher average bank borrowings.

由於專業費用、其他費用和淨管理費用的降低，總費用較上季下降 400,000。由於平均銀行借款增加，利息支出增加了 30 萬美元，但略微抵消了這一影響。

Net investment income from the quarter was unchanged at 11.2 million or $0.50 per share.

本季淨投資收入保持不變，為 1,120 萬美元，即每股 0.50 美元。

The net increase in net assets resulting from operations was $8.8 million or $0.39 per share for the quarter ended March 31st, as impacted by the realized and unrealized valuation depreciation covered by Bob earlier.

受 Bob 先前所述的已實現和未實現估值折舊的影響，截至 3 月 31 日的季度，經營活動產生的淨資產淨增加額為 880 萬美元，即每股 0.39 美元。

Moving over to the balance sheet, as of March 301, total assets declined to $777 million consisting of $763 million in investments at fair value and $14 million in cash and other assets. My abilities declined $37 million to $299 million as of March 301 and consisted primarily of $255 million of senior notes and as of the end of the quarter advances under our $294 million line of credit of 25.1 million.

轉到資產負債表，截至 3 月 301 日，總資產下降至 7.77 億美元，其中包括 7.63 億美元的公允價值投資和 1,400 萬美元的現金和其他資產。截至 3 月 30 日，我的能力下降了 3,700 萬美元至 2.99 億美元，主要包括 2.55 億美元的優先票據，以及截至本季末的 2.94 億美元信用額度下的 2,510 萬美元預付款。

As of March 30th, net assets declined $2.3 million or $478 million from the prior quarter end.

截至 3 月 30 日，淨資產較上一季末減少 230 萬美元，即 4.78 億美元。

With the unrealized appreciation, and Nav for share fell $0.10 from 2,151 to 2,141 as of March 31st.

由於未實現的升值，截至 3 月 31 日，每股資產淨值從 2,151 美元下跌 0.10 美元至 2,141 美元。

Our leverage as of the end of the quarter declined to 62.5% of net assets with the reduced bank borrowings.

隨著銀行借款減少，截至本季末，我們的槓桿率下降至淨資產的 62.5%。

After the end of the quarter, we received $42 million from the payoff of our debt investment in SpaceGo as covered by Bob.

正如鮑伯所說，本季結束後，我們從對 SpaceGo 的債務投資中獲得了 4,200 萬美元的回報。

With respect to distributions, monthly distributions for May and June will be 16.$0.05 per common share, which is an annual run rate of $1.98 per share. The board will meet in July to determine the monthly distribution to common stockholders for the following quarter.

就分配而言，5 月份和 6 月份的月分配額為每股 16.05 美元，即年分配率為每股 1.98 美元。董事會將於 7 月召開會議，確定下一季向普通股股東的每月分配金額。

At the current distribution rate for our common stock, and with the common stock price at about 25 to 26 per share yesterday, the distribution run rate is now producing a yield of about 7.8%. And now I'll turn it back to David to conclude.

以我們普通股的當前分配率，以及昨日普通股價格約為每股 25 至 26 美元計算，分配率目前的收益率約為 7.8%。現在我將把話題交還給大衛來做總結。

Thank you, Nicole, Bob, and Eric and Nicole, you all did a great job in informing our stockholders and the analysts that follow us.

謝謝你們，妮可、鮑勃、艾瑞克和妮可，你們在向我們的股東和關注我們的分析師通報情況方面做得非常出色。

How are we doing.

我們做得怎麼樣？

In summary, I think it was another solid quarter for Gladstone Capital. This team maintains its Their whole portfolio and as well as putting new deals on the books, also managing leverage as well as pricing disciplines on each thing that we close. A couple of good deals that 46 million that Bob mentioned, I think those are going to be great performers for us and the backlog as well.

總而言之，我認為這對格拉斯頓資本來說又是一個穩健的季度。該團隊負責維護其整個投資組合，並將新交易納入帳簿，同時管理我們完成的每項交易的槓桿和定價原則。鮑勃提到的 4600 萬美元的幾筆好交易，我認為這些交易對於我們和積壓訂單來說都將是巨大的進步。

The company has a very strong balance sheet when compared with others in the industry.

與業內其他公司相比，該公司的資產負債表非常強勁。

Healthy backlog of deals we think we know how to price and we're doing a good job. So, in summary, we're going to keep up the good work and keep going. The company continues to stick with its strategy of investing in growth oriented, lower middle market businesses with good management. It's the key to the future of this company. Any of these investments. Are in support of mid-sized private equity funds that are doing buyouts or just needing to grow an existing portfolio company that they have.

我們認為我們知道如何定價，並且我們做得很好。總而言之，我們將繼續努力，繼續前進。該公司繼續堅持其投資策略，即投資於管理良好的成長型、中低階市場企業。這是該公司未來的關鍵。任何這些投資。支持正在進行收購或僅需要發展現有投資組合公司的中型私募股權基金。

And they're looking for experienced partners to support the acquisitions and growth in the future.

他們正在尋找經驗豐富的合作夥伴來支持未來的收購和成長。

So we follow along and have some really good people that we work with.

因此，我們一直關注此事，並和一些非常優秀的人一起工作。

This gives us an opportunity to make attractive interest paying loans and small equity investments along the way and support the ongoing commitment to pay cash distributions to our stockholders.

這使我們有機會在此過程中進行有吸引力的付息貸款和小額股權投資，並支持向股東支付現金分配的持續承諾。

That's first and foremost in our mind of keeping those dividends going out to shareholders.

我們首先想到的是繼續向股東派發股利。

And now operator, if you'll come on and tell our callers how they can ask some questions about the company.

現在接線員，請您告訴我們的來電者如何詢問有關公司的一些問題。

(Operator Instructions)

（操作員指示）

Our first question is from Mickey Schleen with Latinberg Salman. Please proceed.

我們的第一個問題來自 Latinberg Salman 的 Mickey Schleen。請繼續。

Yes, good morning, everyone. Bob, I want to start by asking you how you see the portfolio and NAV performing with both the broadly syndicated loan and private credit spreads widening in April.

是的，大家早安。鮑勃，首先我想問一下，在四月份廣泛的銀團貸款和私人信貸利差擴大的情況下，您如何看待投資組合和資產淨值的表現。

Well, half the question is easy. Maybe we don't really have any syndicated loans anymore, so that's not really relevant for us.

嗯，一半的問題都很簡單。也許我們實際上不再有任何銀團貸款，所以這對我們來說並不重要。

In terms of the portfolio, most of the widening has happened at the more competitive edge of the market.

就投資組合而言，大部分的擴張都發生在市場競爭較激烈的領域。

The upper middle market portfolio spreads had had really compressed.

中上層市場投資組合利差已明顯壓縮。

Frankly, beyond what I think the returns would support as indications of deals clearing in the low fives or high fours spreads over sofur, and given that the Capital markets spreads that backed up, somewhere between 60 and 100 basis points. That just didn't work anymore. So, it's that end of the market that I think is backed up more from our perspective just to give you additional color, the deals we closed last quarter.

坦白說，我認為回報將超出預期，因為有跡象表明交易清算的利差在 5 點以下或 4 點以上，並考慮到資本市場利差回升，大約在 60 到 100 個基點之間。那樣就不再起作用了。因此，我認為從我們的角度來看，這個市場末端得到了更多的支持，只是為了給你更多的信息，我們上個季度完成的交易。

Averaged north of 7 over, so we were a couple 100 basis points wide of the market to begin with, and average leverage continues to be well under 3 turns. So, we're not expecting much of a degradation in value given the spreads that we currently have or the leverage profile of our portfolio. And frankly, more broadly speaking. With the exception of a couple of names that I cited, we're still looking at an average yield that's well north of most of our BDC peers and an average level that's significantly lower. So, I don't think we're going to see quite the same degradation or marks on a value perspective that I think you're expecting from some of the other larger participants in the market.

平均槓桿率超過 7，因此我們一開始就比市場高出幾百個基點，平均槓桿率仍然遠低於 3 倍。因此，考慮到我們目前的利差或投資組合的槓桿狀況，我們預期價值不會有太大的下降。坦白說，更廣泛地說。除了我提到的幾個名字外，我們仍然看到平均收益率遠高於大多數 BDC 同行，平均水平則明顯較低。因此，我認為我們不會看到與市場上其他一些較大參與者預期的完全相同的價值下降或標記。

That that's good to hear, Bob. I appreciate that. A couple of questions on tariffs. How do you see Cin and RPM freight performing as tariffs are starting to impact shipping volumes?

很高興聽到這個消息，鮑伯。我很感激。關於關稅的幾個問題。當關稅開始影響運輸量時，您如何看待 Cin 和 RPM 貨運的表現？

A good question and very insightful targets.

一個很好的問題和非常有見地的目標。

Generally speaking, we've been, obviously concerned about, what this is going to mean.

總的來說，我們顯然一直擔心這意味著什麼。

It's actually turned out to be somewhat different than we expected.

事實與我們預期的有些不同。

With respect to RPM and Cin, what we're seeing is smaller companies that we invest in, domestically focused companies for the most part.

就 RPM 和 Cin 而言，我們看到我們投資的是規模較小的公司，大部分是專注於國內市場的公司。

There are major changes happening in the supply chains for most of the big players in the market. If you're in the auto market, the whole market is now being thrown open. And our domestically focused business which have very customer centric focuses, very responsive and able to change and evolve their operations, frankly, are almost advantaged in this marketplace. So in the case of somebody like an RPM.

大多數市場大企業的供應鏈正在發生重大變化。如果你身處汽車市場，那麼整個市場現在都已經開放。坦白說，我們的國內業務非常注重客戶，反應非常迅速，能夠改變和發展其運營，在這個市場上幾乎佔據優勢。因此，對於像 RPM 這樣的人來說。

Their business is actually up because cars and shipping and asset heavy businesses are not able to change and morph with the change in flows of the business as quickly, and the same thing is happening at Seiling where they are able to morph their operation.

他們的業務實際上是上升的，因為汽車、航運和資產密集型企業無法隨著業務流程的變化而快速變化和轉型，而同樣的事情也發生在 Seiling，他們能夠改變他們的營運。

Grow their domestic capacity and take on things that they might have been producing in China that they now can produce here and the customers are willing to accept a higher price as a result. So what we're finding is that the large platforms that have a difficulty managing are looking for responsive domestic service providers that can help them deal with the shift. And so, we are seeing even in some of our other auto-related businesses, there's one other of note, we're seeing big guys call us and say, can you help us? Can you take on this business? It's actually an advantage right now for some of these businesses because they have capacity and they're focused, and the big guys have a hard time adjusting to the changes as quickly as the market's shifting.

擴大國內產能，承接原本可能在中國生產、現在可以在國內生產的產品，因此顧客願意接受更高的價格。因此，我們發現，那些難以管理的大型平台正在尋找能夠幫助他們應對轉變的響應式國內服務提供者。因此，我們看到，即使在我們的其他一些汽車相關業務中，還有另一個值得注意的情況，我們看到大公司打電話給我們說，你能幫助我們嗎？你能承接這個生意嗎？對於其中一些企業來說，這實際上是一種優勢，因為它們擁有能力並且專注，而大公司很難隨著市場的變化而快速調整。

Well, that, that's really welcome news, and little surprising. How about within the manufacturing segment of the portfolio, could you give us a sense of how much direct exposure there is there to tariffs?

嗯，這確實是個好消息，而且並不令人驚訝。在投資組合的製造業部分，您能否告訴我們，關稅對製造業的直接影響有多大？

I'll use two examples. One, we closed a dental labs business last year, a very well-run company, a number of manufacturing facilities in the US. It was a business that was building up their domestic manufacturing capacity in the industry that traditionally has outsourced some of that production to China. Because this company had manufacturing capacity, was focused on domestic, was growing their business, and is proportionally greater, more advantage in scale to domestic manufacturing, that business is actually doing very well, and the margins are widening. They are going to add some additional capacity and are going to face some tariff issues on some of their imports. But comparatively are doing pretty well. So, from a manufacturing perspective, given the fact that we predominantly focus on domestic operations and we're very supportive of adding capacity because of the accreted benefits and margin that that generates, that business is doing very well and will likely acquire other operators to continue to scale. In terms of other manufacturing businesses. Again, it's the same kind of situation. There, everyone is trying to find ways to manufacture things domestically. To grow their business, and our plans and our backing of some of these capabilities are going to add additional customers as part of the process.

我將舉兩個例子。首先，我們去年關閉了一家牙科實驗室業務，這是一家經營良好的公司，在美國擁有多家製造工廠。該企業正在該行業中建立國內製造能力，而該行業傳統上將部分生產外包給中國。由於這家公司擁有製造能力，專注於國內市場，不斷增長的業務，並且規模相對更大，在國內製造業中更具優勢，因此業務實際上做得很好，利潤率也在擴大。他們將增加一些產能，並將面臨部分進口產品的關稅問題。但相對而言做得還不錯。因此，從製造業的角度來看，鑑於我們主要專注於國內業務，並且我們非常支持增加產能，因為這可以產生累積的收益和利潤，因此該業務表現非常好，並且可能會收購其他運營商以繼續擴大規模。其他製造業務方面。再次，這是同樣的情況。那裡的每個人都在努力尋找國內生產的方法。為了發展他們的業務，我們的計劃和對其中一些能力的支援將在這過程中增加更多的客戶。

It's just, it's going to be a lift. I think the only challenge we see on the tariff side is if we are importing finished goods. Finished goods are going to get, expensive if they're coming from offshore. And in those cases, we're most focused on areas where we are hopefully equally exposed to that.

這只是一種提升。我認為我們在關稅方面面臨的唯一挑戰是進口成品。如果成品來自海外，價格就會很昂貴。在這些情況下，我們最關注的是那些我們希望同樣受到這種影響的領域。

If all of the industry is importing offshore using example not relative to our portfolio, but if everybody's importing sneakers, everybody's going to have the same issue with respect to pricing, the bigger question is going to be how much the market is going to contract when the pricing of those products has to change. For the most part, that's not really our issue, and it tends to also depend on the overall margin, so a high margin product is a relatively small COGS component.

如果整個產業都從海外進口（例如，與我們的投資組合無關），但如果每個人都進口運動鞋，那麼每個人在定價方面都會遇到同樣的問題，更大的問題是，當這些產品的定價必須改變時，市場將萎縮多少。在大多數情況下，這並不是我們真正的問題，而且它往往也取決於整體利潤率，因此高利潤率產品的 COGS 組成部分相對較小。

The tariff is not going to make as meaningful a difference in the purchase price for that product. So focused on domestic, focused on high margin, it's not going to be as dramatic as it gets to the retail price and the impact for the underlying market. What that means relative to recession, what that means relative to overall, not clear, but we're feeling at the moment in a relatively safe spot on the whole tar tariff question.

關稅不會對該產品的購買價格產生太大影響。因此，專注於國內市場、專注於高利潤率，對零售價格和基礎市場的影響不會那麼大。相對於經濟衰退，這意味著什麼？相對於整體而言，這意味著什麼？目前尚不清楚，但就整個焦油關稅問題而言，我們感覺自己處於相對安全的位置。

Well, that's excellent. One last question for me, just a housekeeping question, is the EG's restructuring going to generate a real realize loss for you?

嗯，那太好了。我最後一個問題，只是一個普通問題，EG 的重組會為您帶來真正的損失嗎？

It may generate a very small loss, as you will note our markdowns on that one last quarter were fairly meaningful, and we anticipated where it was likely going to go. The business is performing pretty well, so it's going to be a very small loss. We will have a significant equity investment on a go forward basis, but very minor on the on the loss.

它可能會產生非常小的損失，因為你會注意到我們上個季度的降價幅度相當大，而且我們預料到了它可能會走向何方。業務表現相當不錯，所以損失會很小。我們將在未來進行大量的股權投資，但損失將很小。

And I think you said the debts going back on the accrual if I heard correctly.

如果我沒聽錯的話，我想您說的是債務回溯到應計金額。

Yes.

是的。

Okay, I appreciate it. That that that's it for me this morning.

好的，我很感激。對我來說今天早上就是這樣了。

Thank you very much.

非常感謝。

Thanks, Mickey

謝謝，米奇

Okay, next question.

好的，下一個問題。

(Operator instructions)

（操作員指示）

Our next question is from Eric Swick with Lucid Capital Markets. Please proceed.

我們的下一個問題來自 Lucid Capital Markets 的 Eric Swick。請繼續。

Thanks, and good morning, everyone. I wanted to start with a question, I guess maybe if you could provide an update on the pipeline as it stands today and kind of particularly interested in the size today relative to maybe 3 months ago. I'm curious if the volatility and uncertainties in the markets have impacted that and also curious about the mix between new and add-on opportunities.

謝謝，大家早安。我想先問一個問題，我想也許您能提供一下目前管道的最新情況，我特別感興趣的是相對於 3 個月前而言，目前的管道規模是怎樣的。我很好奇市場的波動性和不確定性是否對此產生了影響，同時也好奇新機會和附加機會之間的組合。

Thanks for calling in. In terms of the backlog, we're probably as healthy in the backlog as we've been in quite some time.

謝謝您的來電。就積壓訂單而言，我們的積壓訂單狀況可能與相當長一段時間以來一樣健康。

I would ballpark somewhere between 8 and 10 deals that are advanced stages of discussions.

我估計目前處於討論後期階段的交易大約有 8 到 10 筆。

Probably half of those have been approved on our diligence or documentation.

其中大概有一半已經根據我們的盡職調查或文件獲得了批准。

Order of magnitude that could be $100 million to $150 million of total aggregate volume.

總總量可能達到 1 億美元至 1.5 億美元。

If you look back at what we've been closing on a quarterly basis, the last couple of quarters, I think Q4 is always a big quarter, and that's part of the part of the December surge. Q1 is always a light quarter, which is obviously why the numbers were down a bit. So, when we think about 50 to 75 of originations in a healthy quarter, I think we're in pretty good stead to hit that kind of benchmark this quarter. Most of the traffic today is new.

如果回顧我們過去幾季的季度收盤情況，我認為第四季度始終是一個重要的季度，這也是 12 月激增的一部分。第一季總是比較清淡，這顯然是導致數據略有下降的原因。因此，當我們考慮到一個健康季度中發起 50 到 75 筆交易時，我認為我們很有可能在本季度達到這種基準。今天的大部分流量都是新的。

With the proportional of exits that we've had, the organic growth of the existing portfolio is a little bit more modest. There are a couple of add-ons that we are currently tracking, but I would probably say right now it's probably 80% new and 20% add-ons.

由於我們退出的比例，現有投資組合的有機成長稍微溫和一些。我們目前正在追蹤一些附加元件，但我現在可能會說其中 80% 是新的，20% 是附加元件。

I would expect that add-ons to grow over time, but you know it always takes a little while before they get past the first, burning period of the 1st year and the new management team and the reporting regimen and, start to search out the next stage in their growth opportunities. So, some of the new vintage assets are probably still a little early before they're going to take on some of the expansion opportunities.

我希望附加元件能夠隨著時間的推移而成長，但您知道，它們總是需要一段時間才能度過第一年的第一個燃燒期，以及新的管理團隊和報告製度，然後開始尋找下一階段的成長機會。因此，一些新的復古資產在獲得一些擴張機會之前可能還為時過早。

That help.

那有幫助。

Yeah, that was great.

是的，太棒了。

Thank you.

謝謝。

Next, switching gears a little bit, you've addressed kind of tariffs quite a bit. I'm curious if you have any portfolio companies that have exposure to government contracts, just with regard to, those cuts, reduction in the size and employees of some government agencies. Do you have any exposure there, and so, how, what actions do you take to, mitigate or, kind of work through those.

接下來，稍微轉換主題，您已經談了很多關於關稅的問題。我很好奇，您是否有任何投資組合公司接觸過政府合同，僅涉及一些政府機構的削減、規模和員工減少。您在那裡有任何接觸嗎？那麼，您採取什麼措施來緩解或解決這些問題？

Let me quickly run through it. I don't believe we don't I mean the areas where things are getting hurt most would be services or staffing oriented contract.

讓我快速瀏覽一下。我不相信我們沒有，我的意思是，受損害最嚴重的領域是服務或人員配置導向的合約。

And we really don't play in that sector.

但我們確實不涉足該領域。

It's always been a bit challenged. It's more of a body shop with a finite margin. That's not and it tends to be a relatively low leverage situation. We don't have many of those.

它總是有點挑戰性。它更像是一個利潤有限的汽車修理廠。事實並非如此，而且往往是槓桿率相對較低的情況。我們沒有太多這樣的人。

The government contracts that we would see would probably come through some of the defence-oriented supplier businesses.

我們看到的政府合約可能來自一些以國防為導向的供應商企業。

Defence continues to be a pretty solid marketplace. We have exposure to that in a couple of our precision manufacturing businesses that are still seeing. Good order flows and processing volumes. So, we're really not seeing anything on that side. The last piece that I would say is we do have some exposure in the healthcare world. Medicare and CMS are still a big player in the overall healthcare field, but at this point, no.

國防市場依然相當穩固。我們在一些精密製造業務中已經接觸過這一點，並且仍在觀察中。良好的訂單流和處理量。所以，我們確實沒有看到那邊的任何東西。我想說的最後一點是，我們在醫療保健領域確實有一些經驗。醫療保險和醫療保險與醫療保險管理中心 (CMS) 在整個醫療保健領域仍然扮演著重要角色，但就目前而言，情況並非如此。

No read on what that's likely to mean or whether there's any fundamental changes, and obviously most of our healthcare related businesses are modest in their margins. So, at this point we haven't seen much coming out of those contracts or terminations.

沒有人知道這可能意味著什麼或是否會發生任何根本性的變化，而且顯然我們大多數醫療保健相關業務的利潤率都很低。因此，目前我們還沒有看到這些合約或終止協議產生什麼結果。

That that's helpful.

這很有幫助。

Thank you. And last one for me, you mentioned the unrealized gains in the quarter were primarily driven by 3 investments, but said you expect improvements in their operating results over the rest of the year. Just curious kind of what you're seeing if it's company specific for each of those three, just given, I think there's some concern that the economy is weak, weakening, so curious what drives your confidence in the improving results there.

謝謝。最後一點，您提到本季未實現收益主要由 3 項投資推動，但您表示預計今年剩餘時間內這些投資的經營業績將會改善。我只是好奇，如果這三家公司都是特定的，您怎麼看？有鑑於此，我認為有人擔心經濟疲軟，正在減弱，所以很好奇是什麼促使您對那裡的業績改善充滿信心。

A lot of hard work and focus on what's going on. I would say, oftentimes these smaller businesses, face a couple of key issues. One is they have customer concentrations, so if they lose a customer, it will take some time to replace the customer. They obviously have production capacity. They have efficiencies, they have capabilities, but replacing a customer can be fairly meaningful, and that was probably a big piece of a couple of those deals.

付出很多努力並專注於正在發生的事情。我想說，這些小企業常常面臨幾個關鍵問題。一是他們的客戶比較集中，所以如果他們失去一個客戶，就需要一段時間來尋找新的客戶。他們顯然有生產能力。他們有效率，有能力，但更換客戶可能相當有意義，這可能是其中幾筆交易的重要組成部分。

Secondly, in terms of capacity investments and bottom-line performance, there's also, occasionally management turnovers, so we have to bring in, new blood whether it be on the operating side or whether it be on the sales side. So oftentimes adding sales resources is part of the equation to continue to get past the J curve in the investment in some of these businesses.

其次，在產能投資和底線業績方面，偶爾也會有管理層的變動，所以我們必須引進新血，無論是在營運方面還是在銷售方面。因此，很多時候增加銷售資源是繼續在這些業務上的投資超越 J 曲線的一部分。

There are some management turnover changes and supplements happening in a couple of those portfolio companies and then we look at, investments, us as well as others coming in to continue to invest and grow the business. Most of the business that we focus on have a long-term growth opportunity. They just may not have had a very good quarter relative to that long term growth opportunity, so. Based upon the trend lines of the three businesses, we feel, very good that that they are attacking those three issues. The outlook is positive.

其中一些投資組合公司正在發生一些管理層變動和補充，然後我們會考慮投資，我們以及其他公司會繼續投資並發展業務。我們關注的大多數業務都有長期成長機會。相對於長期成長機會而言，他們可能沒有度過一個非常好的季度。根據這三項業務的趨勢線，我們認為，他們正在攻克這三個問題，這非常好。前景是樂觀的。

They are currently servicing all of their debts and there is a reason for their being and their growth opportunities on the horizon. So

他們目前正在償還所有債務，他們的存在是有原因的，而且他們的成長機會也即將到來。所以

Those are the three factors that I would focus on, and I don't see in any of those three cases tariffs or near-term economic factors fundamentally change them. I mean you think about precision manufacturing, my earlier comments, I think hold. When you think about circuit board manufacturing, it's all coming back from Asia, and they are currently looking at a number of additional. Programs to add and in terms of lab testing, there are still there still stresses that come from the market and the and drug treatment facilities. That's not going away either. So those three facets I think have an underpinning to the long-term growth profile.

這是我重點關注的三個因素，我認為在這三個因素中，關稅或近期經濟因素都不會從根本上改變它們。我的意思是，你考慮精密製造，我之前的評論，我認為是正確的。當您想到電路板製造時，您會發現它全部來自亞洲，而且他們目前正在尋找一些額外的產品。要增加的計劃和實驗室測試方面，仍然存在來自市場和藥物治療設施的壓力。這也不會消失。所以我認為這三個面向對長期成長前景有支撐作用。

I appreciate that the commentary there. That's very helpful. Thanks for taking me.

我很欣賞那裡的評論。這非常有幫助。謝謝你帶我去。

Questions.

問題。

Thank you for calling.

感謝您打電話。

In. Okay, next question.

在。好的，下一個問題。

Our next question is from Hallie. She's with Raymond James. Please proceed.

下一個問題來自 Hallie。她和雷蒙德·詹姆斯在一起。請繼續。

Good morning. Thanks for the question. You talked about some tariff exposure in some industries you've invested in shipping, automotive, healthcare. With that, has there been any shift to your investment strategy going forward as a result of these tariff implications?

早安.謝謝你的提問。您談到了您所投資的航運、汽車、醫療保健等一些行業的關稅風險。那麼，這些關稅影響是否會對您未來的投資策略產生任何改變？

I wish I could say there's been a fundamental shift. I think, we have to look at where the market is evolving and where the opportunities are.

我希望能夠說已經發生了根本性的轉變。我認為，我們必須看看市場正在向何處發展以及機會在哪裡。

I mean, I think we've always had some healthcare. I think we've always had precision manufacturing because of the customer relationships and the revenue visibility.

我的意思是，我認為我們一直都享有一些醫療保健。我認為，由於客戶關係和收入可見性，我們一直擁有精密製造。

I don't think that there's really been a fundamental change. I think more recently we've probably done a little bit more in the way of services.

我認為並沒有根本性的改變。我認為最近我們可能在服務方面做得更多。

I think that's a more active marketplace.

我認為這是一個更活躍的市場。

We are also seeing, shifts in the marketplace, not that we're necessarily focused on them, but there's an awful lot of contractor industrial services type of businesses that are, are being sold or invested in that. I think, may reflect kind of the change that you're referring to, but at this point that's not a primary focus for us.

我們也看到了市場的變化，我們不一定關注這些變化，但有許多承包商工業服務類型的企業正在被出售或投資。我認為，這可能反映了您所指的某種變化，但目前這不是我們關注的重點。

We are looking for revenue visibility and long term sustainability, and some of those contracting businesses can be short cycle type businesses where you may not have that long term view and the competitive barriers may be more limited. So, I think we're seeing some of that change, but it's not affecting our portfolio, nor has it affected our strategy at this current time.

我們尋求收入可見性和長期可持續性，其中一些承包業務可能是短週期類型的業務，您可能沒有長期眼光，競爭障礙可能更有限。所以，我認為我們看到了一些變化，但這並沒有影響我們的投資組合，也沒有影響我們目前的策略。

Understood, thanks. And then just one more quick one for me. Where do you see leverage going for the rest of the year? Do you still expect to move the leverage up in the last two quarters of this year despite the levels of repayment activity thus far?

明白了，謝謝。然後我再快速問一下。您認為今年剩餘時間內槓桿率將如何變化？儘管迄今為止還款活動水準較高，您是否仍預期今年最後兩季槓桿率會上升？

We're working as hard as we can to get it back up again.

我們正在盡最大努力讓它恢復正常。

We really feel like we've gotten past the wave of prepayments and really feel like we need to increase the leverage. Ultimately, the company needs to get towards a billion dollars of total assets under management for a variety of reasons. And I think we have the equity base to support it. We just don't at this point have the assets and the leverage profile that are going to get us there.

我們確實感覺我們已經度過了預付款浪潮，並且確實感覺我們需要增加槓桿。最終，由於各種原因，該公司需要將管理的總資產達到 10 億美元。我認為我們有足夠的股權基礎來支持它。我們目前還不具備實現這一目標所需的資產和槓桿能力。

And so we're going to work as hard as we can to get to those without sacrificing our yield and our leverage our leverage disciplines. It's hard to make it up in 11. That's not a big quarter for us, but we think over the balance of the year that we can do that. Obviously the gulf between where we are today and 90 to 110, which was our target, has gotten further and further away.

因此，我們將盡最大努力實現這些目標，同時不犧牲我們的利益和槓桿原則。很難在 11 點內彌補。對我們來說這不是一個重要的季度，但我們認為在今年餘下的時間裡我們可以做到這一點。顯然，我們目前的狀況與我們設定的90到110的目標之間的差距已經越來越大。

If we could find 150 to 200 million of net originations and get our leverage up to 90 to 100%, I'd love to do it, but it's probably going to be 2 or 3 quarters before we get up to that range.

如果我們能夠找到 1.5 億到 2 億的淨發起額，並將我們的槓桿率提高到 90% 到 100%，我很樂意這麼做，但可能還需要 2 到 3 個季度才能達到這個範圍。

Just looking at it from what the government's doing too is that onshoring, which was announced at least 2 years ago.

僅從政府正在做的事情來看，至少在兩年前就宣布了回流計畫。

We started to move away in all of our business from things that were manufactured in China and other places. We had one shoe company I remember was a very nice company, but they were making all their shoes in Vietnam.

我們開始在所有業務中不再銷售在中國和其他地方製造的產品。我記得我們有一家鞋業公司，那是一家非常好的公司，但他們所有的鞋子都是在越南生產的。

And I turned that one down because I didn't want to be against what's going on in the marketplace that is all this onshoring as they're going through now. It's right into what we were thinking then as well. So I think we'll make a meaningful increase over the next 6 months, but it's a big change in that regard because we now don't look at.

我拒絕了這個建議，因為我不想與市場上正在發生的、正在經歷的國內業務轉移相反。這也正是我們當時所想的。所以我認為我們將在未來 6 個月內實現有意義的成長，但在這方面這是一個很大的變化，因為我們現在不考慮。

Asia or other places that are not on shore and that that's a change in our business strategy.

亞洲或其他非陸地地區，這是我們業務策略的改變。

But that's the only big change going on.

但這是唯一正在發生的重大變化。

That makes sense.

這很有道理。

Thank you. I appreciate the call.

謝謝。我很感謝你的來電。

Thank you.

謝謝。

There are no further questions, I would like to hand the conference back over to Mr. Gladstone for closing remarks.

沒有其他問題了，我想將會議交還給格拉斯頓先生，請他作最後發言。

Well, and another good quarter and we appreciate all of you calling in and we'll see you next quarter. That's the end of this.

好吧，這又是一個好的季度，我們感謝大家的來電，我們下個季度再見。事情就這樣結束了。

Thank you. We will conclude today's conference. You may disconnect your lines at this time and thank you for your participation.

謝謝。今天的會議就此結束。現在您可以斷開您的線路了，感謝您的參與。