Rand Capital Corp (RAND) 2024 Q4 法說會逐字稿

Greetings, and welcome to Rand Capital Corporation fourth-quarter fiscal year 2024 financial results. (Operator Instructions) As a reminder, this conference is being recorded.

您好，歡迎閱讀蘭德資本公司 2024 財年第四季財務表現。（操作員指示）提醒一下，本次會議正在錄音。

It is now my pleasure to introduce Craig Mychajluk, Investor Relations for Rand Capital. Thank you. You may begin.

現在我很高興介紹蘭德資本投資者關係部的 Craig Mychajluk。謝謝。你可以開始了。

Thank you, and good afternoon, everyone. We appreciate your interest in Rand Capital and for joining us today for our fourth quarter and full year 2021 financial results conference call, on the line with me are Dan Penberthy, our President and Chief Executive Officer; and Margaret Brechtel, our Executive Vice President and Chief Financial Officer. A copy of the release and slides that accompany our conversation is available at randcapital.com.

謝謝大家，下午好。感謝您對蘭德資本的關注，並感謝您今天參加我們的 2021 年第四季度和全年財務業績電話會議，與我一起在線的是我們的總裁兼首席執行官 Dan Penberthy；以及我們的執行副總裁兼首席財務官 Margaret Brechtel。我們的談話附帶的新聞稿和幻燈片的副本可在 randcapital.com 上找到。

If you're following along with the slide deck, please turn to Slide two, where I'd like to point out some important information.

如果您正在觀看投影片，請翻到第二張投影片，我想在這裡指出一些重要資訊。

As you are likely aware, we may make forward-looking statements during this presentation. These statements apply to future events that are subject to risks and uncertainties as well as other factors that could cause actual results to differ from where we are today. You can find a summary of these risks and uncertainties and other factors in the earnings release and other documents filed by the company with the Securities and Exchange Commission. These documents can be found on our website or at sec.gov.

您可能已經知道，我們可能會在本次演示中做出前瞻性陳述。這些聲明適用於受風險和不確定性以及可能導致實際結果與當前情況不同的其他因素影響的未來事件。您可以在公司向美國證券交易委員會提交的收益報告和其他文件中找到這些風險、不確定性和其他因素的摘要。這些文件可以在我們的網站或 sec.gov 上找到。

During today's call, we'll also discuss some non-GAAP financial measures, we believe these will be useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results in accordance with Generally Accepted Accounting Principles. We have provided reconciliations of non-GAAP measures with comparable GAAP measures in the tables that accompany today's earnings release.

在今天的電話會議中，我們還將討論一些非公認會計準則財務指標，我們相信這些指標將有助於評估我們的表現。您不應孤立地考慮呈現這些附加信息，也不應將其視為符合公認會計原則的結果的替代。我們在今天的收益報告隨附的表格中提供了非 GAAP 指標與可比較 GAAP 指標的對帳表。

With that, please turn to Slide three, and I'll hand the discussion over to Dan. Dan?

請翻到第三張投影片，我將討論交給丹。擔？

Thank you, Craig, and good afternoon, everyone. This past year was marked by significant progress in our strategy. We delivered strong results, enhanced our portfolio composition strengthened our balance sheet and increased returns to shareholders. I believe that our disciplined execution and strategic capital deployment have both positioned Rand for sustained long-term growth. I want to take a moment to recognize and thank our team for their hard work and dedication in executing our strategy and helping to deliver these strong results.

謝謝你，克雷格，大家下午好。過去的一年，我們的策略取得了重大進展。我們取得了強勁的業績，增強了投資組合結構，增強了資產負債表，並增加了股東回報。我相信，我們嚴謹的執行力和策略性的資本部署都為蘭德的長期持續成長奠定了基礎。我想花點時間表彰並感謝我們的團隊在執行我們的策略和幫助實現這些強勁成果方面所付出的辛勤工作和奉獻精神。

In the fourth quarter, total investment income rose 11% to $2.1 million, bringing full year investment income to $8.6 million, an increase of 17% from the prior year. This growth was driven by our focus on expanding our debt investment portfolio, which not only enhanced income, but also improved earnings stability and predictability, although we will always have some portfolio risk of churn or rather that is unexpected or early repayments.

第四季度，總投資收入成長 11% 至 210 萬美元，全年投資收入達 860 萬美元，比上年增長 17%。這一增長是由我們專注於擴大債務投資組合所推動的，這不僅增加了收入，而且提高了盈利穩定性和可預測性，儘管我們總是會有一些投資組合流失風險，或者更確切地說是意外或提前還款的風險。

Our net asset value per share increased 7% year-over-year reaching $25.31 at year-end. These results reflect our commitment to our investment strategy and careful management of a $71 million portfolio. A key component of this strategy has been the ongoing shift over the past few years towards a more income-generating portfolio. Debt investments now comprise 75% of our portfolio, up from 64% in 2023, contributing to improved yields and a more consistent earnings profile.

我們的每股淨資產價值年增 7%，年底達到 25.31 美元。這些結果反映了我們對投資策略的承諾以及對 7,100 萬美元投資組合的謹慎管理。這項策略的關鍵組成部分是過去幾年來不斷轉向更具創收能力的投資組合。債務投資目前占我們投資組合的 75%，高於 2023 年的 64%，有助於提高收益率並使獲利狀況更加穩定。

We also strategically monetize select equity investments, including the sale of SciAps, we've exited our remaining publicly traded securities and received some loan repayments. These have generated approximately $27 million in cash proceeds. A portion of these funds were redeployed into approximately $14 million of income-generating assets.

我們也策略性地將精選股權投資貨幣化，包括出售 SciAps，我們退出了剩餘的公開交易證券並收到了一些貸款償還。這些已產生約 2700 萬美元的現金收益。其中一部分資金被重新部署到約 1,400 萬美元的創收資產。

We also took deliberate steps to fortify our financial position by reducing outstanding bank debt by $15.7 million during the year. As of year-end, we had over $24 million in available credit facilities, providing us with flexibility for future investment and growth.

我們也採取了慎重措施來鞏固我們的財務狀況，在這一年中減少了 1,570 萬美元的未償銀行債務。截至年底，我們擁有超過 2,400 萬美元的可用信貸額度，為我們未來的投資和成長提供了靈活性。

In line with our commitment to shareholder value, we increased our regular quarterly cash dividend by 16% in the second quarter of 2024, and total dividends declared for the year reached $5.03 per share, driven largely by realized capital gains during the year.

根據我們對股東價值的承諾，我們在 2024 年第二季度將常規季度現金股息提高了 16%，全年宣布的股息總額達到每股 5.03 美元，這主要得益於全年實現的資本收益。

Looking ahead, I believe that Rand's financial strength will have us well positioned to capitalize on new opportunities with strong liquidity and a proven capital deployment strategy, we are prepared to expand our investment income even further. Additionally, we are monitoring macroeconomic trends, including potential interest rate reductions, which if they happen, could enhance portfolio performance with lower interest expenses and improved profitability.

展望未來，我相信蘭德的財務實力將使我們處於有利地位，利用強大的流動性和成熟的資本配置策略來抓住新機遇，我們準備進一步擴大投資收益。此外，我們正在監測宏觀經濟趨勢，包括潛在的降息，如果發生降息，則可以透過降低利息支出和提高獲利能力來提高投資組合的績效。

Our focus remains on creating long-term value for our shareholders by prudently allocating capital and managing our portfolio effectively. As highlighted on Slide four, our success in achieving these strategic objectives over the past few years has translating into meaningful benefits for our shareholders. Since 2021, we have steadily increased dividends with quarterly dividends that once started initially at $0.10 per quarter, and now are pacing at $0.29 per quarter.

我們的重點仍然是透過審慎分配資本和有效管理投資組合為股東創造長期價值。正如第四張投影片所強調的，過去幾年我們成功實現了這些策略目標，為股東帶來了豐厚的利益。自 2021 年以來，我們穩步增加股息，季度股息最初為每季 0.10 美元，現在每季 0.29 美元。

Our recent fourth quarter dividend was outsized and driven in part by the successful sale of SciAps during 2024. In total, we declared $4.20 per share, or approximately $10.8 million dividend in the fourth quarter. This included $0.84 per share in cash dividends and a $3.36 per share stock dividend leading to the issuance of approximately 389,000 new shares.

我們最近第四季的股息非常豐厚，部分原因是 2024 年成功出售了 SciAps。整體而言，我們宣布第四季每股派息 4.20 美元，約 1,080 萬美元。其中包括每股 0.84 美元的現金股利和每股 3.36 美元的股票股利，從而發行了約 389,000 股新股。

Following this distribution at the end of January 2025, Rand has nearly 3 million shares outstanding. We recently announced our Q1 2025 dividend, and Margaret will provide the details shortly. Our commitment to a robust balance sheet and optimized portfolio and a strategic capital deployment gives us confidence in our ability to continue delivering meaningful returns for our shareholders well into the future.

繼 2025 年 1 月底的此次分配之後，蘭德公司已擁有近 300 萬股流通股。我們最近宣布了 2025 年第一季的股息，瑪格麗特很快就會提供詳細資訊。我們致力於穩健的資產負債表、優化的投資組合和策略性的資本配置，這使我們有信心在未來繼續為股東帶來有意義的回報。

Turning to slide five, please. You will see our portfolio's distribution between debt and equity, along with the recent changes. Our portfolio now stands at a fair value of $70.8 million across 22 businesses. This reflects an 8% decline from the year-end 2023, primarily driven due to the successful exits from SciAps, which I had mentioned, along with the stock sales and loan repayments from other portfolio companies.

請翻到第五張投影片。您將看到我們的投資組合在債務和股權之間的分佈，以及最近的變化。目前，我們的投資組合涵蓋 22 家企業，公允價值為 7,080 萬美元。這比 2023 年底下降了 8%，主要是由於我提到的 SciAps 成功退出，以及其他投資組合公司的股票出售和貸款償還。

While we have seen an overall strengthening in many of our portfolio companies, we remain mindful of the challenging economic and political environment and consumer spending habits which has impacted certain business operations. We have addressed some of these challenges in our fourth quarter valuations and are hopeful about future recovery in the years ahead.

雖然我們看到許多投資組合公司的整體實力有所增強，但我們仍然注意到嚴峻的經濟和政治環境以及消費者的消費習慣已經對某些業務運營產生了影響。我們在第四季的估值中已經解決了其中的一些挑戰，並對未來幾年的復甦充滿希望。

In the bar chart on the bottom left, you can see that during the year, our portfolio companies decreased from 30 to 22, which I previously mentioned, and this was largely due to monetizing our publicly traded stock holdings.

在左下角的條形圖中，您可以看到，在這一年中，我們的投資組合公司從 30 家減少到了 22 家，正如我之前提到的，這主要是由於將我們的公開交易股票持有量貨幣化。

With the close of the SciAps transaction, we have made substantial progress towards our goal of a more debt-focused portfolio. Currently, 75% of our investments are in debt, a target ratio, which we have been striving for. The annualized weighted average yield of these debt investments including PIK interest or payment in kind, was 13.8% as of December 31, 2024, an increase of 20 basis points over 2023. The remaining 25% of our portfolio is comprised of equity investments, warrants or direct equity purchase in private companies. Many of these, by the way, are legacy investments.

隨著 SciAps 交易的結束，我們在實現更注重債務的投資組合的目標方面取得了實質的進展。目前，我們的投資75%是債務，這是我們一直努力追求的目標比例。截至 2024 年 12 月 31 日，包括實物支付或實物支付在內的這些債務投資的年化加權平均收益率為 13.8%，比 2023 年增加 20 個基點。我們投資組合的剩餘 25% 由私人公司的股權投資、認股權證或直接股權購買組成。順便說一句，其中許多都是遺留投資。

Moving forward, it will be rare for Rand to make a direct private equity investment without a related subordinated debt component that provides an interest-yielding return. This is a key focus of the company at this time.

展望未來，蘭德公司很少會進行不涉及可產生利息回報的相關次級債務成分的直接私募股權投資。這是公司目前的重點。

Slide six highlights our investment activity during the fourth quarter as well as notable transactions for the full year. During Q4, we made one new investment of $2.9 million into Mobile IV Nurses Management, LLC. This investment included a $2.5 million term loan at a 14% interest rate, plus 1% PIK or payment in kind, alongside a $375,000 equity investment into the company.

第六張投影片重點介紹了我們在第四季的投資活動以及全年的重大交易。在第四季度，我們向 Mobile IV Nurses Management, LLC 進行了 290 萬美元的新投資。這項投資包括一筆 250 萬美元的定期貸款，利率為 14%，加上 1% 的 PIK 或實物支付，以及對該公司的 375,000 美元股權投資。

Mobile IV nurses is a growing provider of mobile IV hydration and vitamin therapy services, and we believe this investment aligns well with our focus on income-generating assets with a strong upside potential from the related equity investment. Additionally, during the period, we successfully exited our investment in Nailbiter, receiving full repayment of a $2.25 million debt instruments.

行動靜脈注射護理師是一家不斷發展的行動靜脈補液和維生素治療服務提供商，我們相信這項投資與我們對創收資產的關注相一致，相關股權投資具有強大的上行潛力。此外，在此期間，我們成功退出了對 Nailbiter 的投資，並獲得了 225 萬美元債務工具的全部償還。

Looking at the full year activity, our most notable transaction was the successful sale of SciAps which generated $13.1 million in total proceeds, and a realized gain of $7.7 million. SciAps was one of our long-time legacy portfolio holdings and early-stage investment made over a decade ago, which ultimately contributed largely to the $4.20 per share dividend, which we declared in Q4.

縱觀全年活動，我們最引人注目的交易是成功出售 SciAps，總收益為 1,310 萬美元，實現收益 770 萬美元。SciAps 是我們十多年前長期持有的投資組合之一，也是早期投資之一，它最終對我們在第四季度宣布的每股 4.20 美元的股息做出了巨大貢獻。

Additionally, we continue to refine our portfolio throughout the year '24 by selling remaining shares of ACV Auctions and liquidating our holdings in publicly traded BDCs. These generated total proceeds of $8.2 million. These capital recycling efforts allowed us to reinvest strategically deploying $13.9 million across six transactions again, with a strong emphasis on income-generating debt investments. Our ability to execute on these transactions underscores our commitment to targeted capital allocation.

此外，我們將在 24 年全年繼續完善我們的投資組合，出售 ACV Auctions 的剩餘股份並清算我們在公開交易的 BDC 中的持股。這些活動共產生了 820 萬美元的收益。這些資本回收努力使我們能夠再次在六筆交易中策略性地部署 1,390 萬美元進行再投資，重點放在創收債務投資上。我們執行這些交易的能力凸顯了我們對有針對性的資本配置的承諾。

Turning to slide seven. You can see the evolving diversity of our portfolio and the shift in industry allocation since the end of 2023. Notably, our exposure to professional services increased from 42% to 48%, reflecting both new investments and the performance of our existing holdings. Additionally, consumer products grew as a proportion of our portfolio.

翻到第七張幻燈片。您可以看到自 2023 年底以來我們的投資組合的多樣化程度不斷提高以及行業配置的變化。值得注意的是，我們對專業服務的投入從 42% 增加到 48%，這不僅反映了新的投資，也反映了我們現有持股的表現。此外，消費品在我們的產品組合中所佔的比例也在成長。

And now we have representation in the health and wellness sector following our investment in Mobile IV Nurses. Meanwhile, manufacturing and software saw a relative decline in portfolio mix due to the strategic portfolio adjustments and fair value updates. With the sale of our BDC stocks, they are no longer represented in the industry composition.

現在，透過對移動靜脈注射護理師進行投資，我們在健康和保健領域擁有了代表權。同時，由於策略性投資組合調整和公允價值更新，製造業和軟體業的投資組合結構相對下降。隨著我們 BDC 股票的出售，它們不再出現在產業組成中。

We continue to prioritize a balanced sector diversified portfolio. This diversification is a key pillar of our investment strategy, helping to mitigate concentration risks while allowing us to capitalize on growth opportunities across many different sectors. By maintaining a broad risk across industries, we enhanced portfolio resilience, we ensure that we can navigate economic fluctuations and hopefully drive sustainable long-term returns.

我們繼續優先考慮平衡的產業多元化投資組合。這種多樣化是我們投資策略的一個重要支柱，有助於降低集中風險，同時使我們能夠利用許多不同行業的成長機會。透過維持跨行業的廣泛風險，我們增強了投資組合的彈性，確保我們能夠應對經濟波動，並有望實現可持續的長期回報。

As of year-end, slide eight highlights our top five portfolio companies. These collectively represent 52% of our total portfolio. Notably, Tilson remains our largest fair value investment at $11.5 million. This accounts for 16% of our portfolio. This valuation does reflect a slight decline from the prior quarter but underscores Tilson's overall strength and strategic importance within our holdings. We have been invested in Tilson for a decade.

截至年底，第八張投影片重點介紹了我們的五大投資組合公司。這些合計占我們總投資組合的 52%。值得注意的是，Tilson 仍然是我們最大的公允價值投資，價值 1,150 萬美元。這占我們投資組合的16%。這項估值確實較上一季略有下降，但卻凸顯了 Tilson 在我們持股中的整體實力和策略重要性。我們已經在 Tilson 投資了十年。

Tilson operates in the wireless and 5G mobile data sector. They design and build telecommunications networks, utilizing fiber and wireless technologies. The company's growth trajectory has been impressive both operationally and in terms of our investment performance. With an initial investment or cost basis of approximately $3 million, our position now reflects $8.5 million in unrealized depreciation reinforcing the long-term value creation of our investment strategy. This is one of our core holdings of our legacy investments.

Tilson 從事無線和 5G 行動數據領域業務。他們利用光纖和無線技術設計和建構電信網路。無論從營運角度或從投資績效角度來看，該公司的成長軌跡都令人印象深刻。我們的初始投資或成本基礎約為 300 萬美元，目前我們的狀況反映了 850 萬美元的未實現折舊，這強化了我們投資策略的長期價值創造。這是我們遺留投資的核心資產之一。

Alongside Tilson, Seybert's and Food Service Supply have been consistent names in our top five, while Mattison and Caitec move up and ranking this year. These companies again exemplify the diversification and strength of our portfolio, and we remain confident in their continued contributions to our long-term growth.

除了 Tilson 外，Seybert's 和 Food Service Supply 也一直穩居前五名，而 Mattison 和 Caitec 今年的排名也有所上升。這些公司再次體現了我們投資組合的多元化和實力，我們對它們繼續為我們長期成長做出貢獻充滿信心。

With that, I'll turn it over to Margaret to review our financials in greater depth.

說完這些，我會把任務交給瑪格麗特，讓她更深入地檢視我們的財務狀況。

Thanks, Dan, and good afternoon, everyone. I will start on Slide 10 and 11, which provide an overview of our financial summary and operational highlights for the 2024 fourth quarter and full year period.

謝謝，丹，大家下午好。我將從第 10 和 11 張投影片開始，它們概述了我們 2024 年第四季和全年的財務摘要和營運亮點。

Total investment income for the quarter was $2.1 million, up 11% over last year's fourth quarter, driven by an 18% increase in interest income. For the full year, total investment income grew 17% or $8.6 million when compared to 2023, which reflects five new debt investments that we originated over the last year.

本季總投資收入為 210 萬美元，比去年第四季成長 11%，其中利息收入成長 18%。全年總投資收入與 2023 年相比增加了 17% 或 860 萬美元，這反映了我們去年發起的五項新債務投資。

Additionally, we experienced higher fee income, which is due in part to the collection of certain fees from our SciAps exit. Overall, the number of portfolio companies contributing to investment income was $25 million during 2024 compared with 26 companies during 2023.

此外，我們的費用收入有所增加，部分原因是我們從 SciAps 退出中收取了一定的費用。整體而言，2024 年貢獻投資收益的投資組合公司數量為 2,500 萬美元，而 2023 年則為 26 家。

Total expenses were a credit of $376,000 compared with an expense of $1 million in last year's fourth quarter. The change was primarily due to a decrease in capital gains incentive fee expense as the recent period included a credit of $1.1 million in capital gains incentive fees, compared with an expense of $64,000 for the fourth quarter of 2023.

總支出為 376,000 美元，而去年第四季的支出為 100 萬美元。這項變更主要是由於資本利得激勵費用減少，因為最近一期包括 110 萬美元的資本利得激勵費用，而 2023 年第四季的費用為 64,000 美元。

Adjusted expenses, which exclude capital gains incentive fees and is a non-GAAP financial measure, were $678,000 in the fourth quarter of 2024, and compared with $950,000 in the fourth quarter of 2023. The lower quarterly expense level reflected -- reduced interest expense of $276,000 given lower debt levels throughout 2024 compared with 2023. Full year total expenses were $4.8 million compared with $4.2 million in 2023. The change largely reflects an increase in incentive fee expense.

調整後費用（不包括資本利得激勵費用，屬於非公認會計準則財務指標）在 2024 年第四季為 678,000 美元，而 2023 年第四季為 950,000 美元。較低的季度支出水準反映出—由於 2024 年全年債務水準低於 2023 年，因此利息支出減少了 276,000 美元。全年總支出為 480 萬美元，而 2023 年為 420 萬美元。這項變化很大程度上反映了激勵費用支出的增加。

Incentive fees are comprised of two components: an income-based fee; and a capital gain fee, both of which are contingent on meeting specified benchmarks. The income-based fee is calculated quarterly based on a pre-incentive fee net investment income with a hurdle rate of 1.75% per quarter or 7% annualized. For 2024, this fee accrued at $178,000 with no similar expense incurred in the prior year.

激勵費用由兩部分組成：基於收入的費用；以及資本利得費，這兩項費用均取決於是否符合指定的基準。基於收入的費用按季度計算，基於激勵費用前的淨投資收入，最低收益率為每季 1.75% 或年化 7%。2024 年，該費用累計為 178,000 美元，而前一年並未發生類似費用。

The second component of our incentive fee is the capital gains fee, according to GAAP, we are required to accrue capital gains incentive fee based on all realized and unrealized gains and losses. Given the recent performance of our portfolio and the realized gains, we recognized a higher accrual this past year.

我們的激勵費用的第二部分是資本利得費用，根據 GAAP，我們需要根據所有已實現和未實現的收益和損失累積資本利得激勵費用。鑑於我們投資組合的近期表現和已實現的收益，我們去年確認了更高的應計收益。

Excluding the capital gains incentive fee accrual, adjusted expenses, which is a non-GAAP financial measure, increased $451,000 to $3.8 million in 2024. Fourth quarter net investment income increased to $2.2 million or $0.86 per share compared with $962,000 or $0.37 per share in the fourth quarter of 2023. On an adjusted basis, which is a non-GAAP financial measure and excludes the capital gains incentive fee accrual expense, net investment income was $0.45 per share, up 13% and from $0.40 per share in last year's period.

不包括資本利得激勵費用應計，調整後的費用（非 GAAP 財務指標）在 2024 年增加了 451,000 美元，達到 380 萬美元。第四季淨投資收益增至 220 萬美元，即每股 0.86 美元，而 2023 年第四季為 962,000 美元，即每股 0.37 美元。以非公認會計準則財務指標（不含資本利得激勵費用應計費用）調整後，淨投資收益為每股 0.45 美元，較去年同期的每股 0.40 美元成長 13%。

For the full year period, net investment income per share was $1.33, which is an increase of 15% over 2023. Excluding the capital gains incentive fee accrual, which is a non-GAAP financial measure, adjusted net investment income per share increased 18% to $1.72 in 2024.

全年每股淨投資收益為 1.33 美元，比 2023 年增長 15%。不包括非公認會計準則財務指標－資本利得獎勵費用應計，2024 年調整後的每股淨投資收益成長 18% 至 1.72 美元。

On Slide 12, you will see a waterfall graph illustrating the change in net asset value for the year. As of year-end 2024, net assets totaled $65.3 million, representing a 7% increase from the end of 2023. This change was primarily driven by higher net investment income and a net realized gain of $11.1 million from sales and dispositions of investments, which was partially offset by a $5.7 million net decrease in unrealized depreciation on investments.

在第 12 張投影片上，您將看到一個瀑布圖，展示了該年淨資產價值的變化。截至 2024 年底，淨資產總額為 6,530 萬美元，比 2023 年底成長 7%。這項變更主要歸因於淨投資收入增加以及投資出售和處置產生的 1,110 萬美元的淨實現收益，但被投資未實現折舊淨減少 570 萬美元所部分抵銷。

Rand declared $4.3 million in cash dividends to shareholders during 2024, of which $2.1 million was paid in 2024, and $2.2 million was paid to shareholders in January of 2025. Overall, the net asset value per share as of December 31, 2024, rose 7% to $25.31 from $23.56 last year.

蘭德宣布 2024 年向股東發放 430 萬美元現金股息，其中 210 萬美元於 2024 年支付，220 萬美元於 2025 年 1 月支付給股東。總體而言，截至 2024 年 12 月 31 日的每股淨資產價值從去年的 23.56 美元上漲 7% 至 25.31 美元。

As highlighted on Slide 13, we continue to have a strong balance sheet and significant liquidity that positions us well for future investments. Total assets decreased by 11% to $72.5 million primarily due to the sale of SciAps, and included approximately $835,000 in cash at the end of 2024.

正如幻燈片 13 所強調的，我們繼續擁有強勁的資產負債表和充足的流動性，這為我們未來的投資做好了準備。總資產減少 11% 至 7,250 萬美元，主要原因是出售 SciAps，截至 2024 年底包括約 835,000 美元現金。

Actions taken over the past year enabled us to significantly reduce outstanding under our $25 million senior secured revolving credit facility. As of year-end, our remaining borrowings stood at just $600,000 with an interest rate of approximately 8%, we believe our strategic shift towards income-producing investments will support sustained higher dividend levels over time.

過去一年採取的行動使我們能夠大幅減少 2500 萬美元優先擔保循環信貸額度的未償還餘額。截至年底，我們剩餘的借款僅為 60 萬美元，利率約為 8%，我們相信，我們向創收投資的策略轉變將支持持續更高的股息水準。

Reflecting this confidence, we raised the declared its regular quarterly cash dividend of $0.29 per share payable on or about March 28, 2025. to shareholders of record as of March 14, 2025. While the regular per share dividend is unchanged, the total dollar amount of the distribution has increased due to a higher number of shares outstanding following the fourth quarter 2024 stock dividend, which was distributed in January of 2025.

出於這種信心，我們提高了宣布的定期季度現金股息，即每股 0.29 美元，將於 2025 年 3 月 28 日左右支付給截至 2025 年 3 月 14 日登記在冊的股東。雖然常規每股股息保持不變，但由於 2024 年第四季度股票股息（於 2025 年 1 月發放）之後流通股數量增加，因此分配的總金額有所增加。

And in fact, we are delivering a 15% increase in total dividends distributed to shareholders demonstrating both the resilience of our business and our commitment to shareholder value.

事實上，我們向股東派發的總股息增加了 15%，這不僅體現了我們業務的韌性，也反映了我們對股東價值的承諾。

With that, I will turn the discussion back to Dan.

說完這些，我會把討論轉回給丹。

Thanks, Margaret. Moving on to Slide 14, please. As we conclude today's discussion, I want to take a moment to reflect on what has been a year of significant achievement and strategic progress for Rand Capital. Throughout 2024, we strengthened our financial foundation by monetizing select equity investments, reducing outstanding bank debt, and improving overall liquidity. These actions not only reinforce our ability to navigate evolving market conditions but also position us to capitalize on new high-quality investment opportunities that align with our long-term objectives.

謝謝，瑪格麗特。請移至投影片 14。在我們結束今天的討論時，我想花點時間回顧蘭德資本在過去一年的重大成就和戰略進步。在整個 2024 年，我們透過將精選股權投資貨幣化、減少未償還銀行債務以及提高整體流動性來加強我們的財務基礎。這些舉措不僅增強了我們應對不斷變化的市場條件的能力，而且使我們能夠利用符合我們長期目標的新的高品質投資機會。

Looking ahead, we remain focused on executing this strategy to drive long-term shareholder value. Our investment thesis remains grounded and disciplined capital deployment, proactive risk management and a clear commitment to income expansion. The lower middle market continues to offer compelling opportunities, including family-owned businesses undergoing generational transitions.

展望未來，我們將繼續專注於執行此策略，以推動長期股東價值。我們的投資理念仍然是腳踏實地、嚴謹的資本配置、積極主動的風險管理以及對收入擴張的明確承諾。中低端市場持續提供極具吸引力的機遇，包括正在經歷代際轉型的家族企業。

Many of these companies face succession challenges and our ability to provide flexible customized financing solutions alongside with equity sponsors positions us as a strong and reliable investment partner. Rand strategic investment, our sweet spot rather, typically is deploying $3.5 million to $4 million in transactions, which generally are in the $15 million to $20 million total transaction size. This does set us apart in this market.

許多公司都面臨著繼任挑戰，我們與股權發起人一起提供靈活的客製化融資解決方案的能力使我們成為強大而可靠的投資合作夥伴。蘭德策略投資是我們的最佳選擇，通常是部署 350 萬至 400 萬美元的交易，總交易規模一般在 1,500 萬至 2,000 萬美元之間。這確實使我們在這個市場上脫穎而出。

We believe this focus on small leverage buyouts and private debt investments gives us a competitive edge as traditional banks rather pull back from lending in this space. Additionally, by leveraging syndication and co-investment strategies, we can mitigate risk while optimizing Rand's returns.

我們相信，專注於小額槓桿收購和私人債務投資為我們帶來了競爭優勢，因為傳統銀行不願意在該領域放款。此外，透過利用聯合投資和共同投資策略，我們可以降低風險，同時優化蘭特的回報。

From a financial standpoint, our outlook remains positive and strong. With our existing credit facility and a disciplined approach to capital allocation, we are well positioned to sustain our investment pace while maintaining flexibility to take advantage of new opportunities. Recent reductions in interest rates have already lowered our borrowing costs, which enhances profitability and further strengthens our ability to return capital to shareholders.

從財務角度來看，我們的前景依然積極且強勁。憑藉我們現有的信貸額度和嚴謹的資本配置方法，我們完全有能力維持投資步伐，同時保持靈活性以利用新的機會。最近的利率下降已經降低了我們的借貸成本，從而提高了獲利能力並進一步增強了我們向股東返還資本的能力。

A key advantage in executing our strategy is our partnership with our external manager, Rand Capital Management, or RCM. The investment team as part of RCM continues to build a strong pipeline of potential investments, ensuring that we remain well positioned to deploy capital while maintaining a cost structure that efficiently scales with our portfolio. Through RCM and its affiliation with Boston-based [Callodine Group], we also gain access to deep investment expertise broadening our reach in the lower middle market and reinforcing our ability to identify and execute on attractive opportunities.

我們執行策略的一個關鍵優勢是我們與外部經理人蘭德資本管理公司（Rand Capital Management，RCM）的合作關係。作為 RCM 的一部分，投資團隊繼續建立強大的潛在投資管道，確保我們能夠更好地部署資本，同時保持與我們的投資組合有效擴展的成本結構。透過 RCM 及其與總部位於波士頓的 [Callodine Group] 的合作，我們還獲得了深厚的投資專業知識，擴大了我們在中低端市場的影響力，並增強了我們識別和執行有吸引力的機會的能力。

We navigate 2025 and beyond, we are committed to expanding our income-generating investment portfolio to drive higher net interest income and future dividend growth. At the same time, we will continue optimizing our portfolio holdings to achieve long-term value while actively managing risk in response to overall economic and political uncertainties.

展望2025年及以後，我們致力於擴大創收投資組合，以推動更高的淨利息收入和未來的股息成長。同時，我們將繼續優化投資組合，實現長期價值，並積極管理風險，以應對整體經濟和政治的不確定性。

Our strong governance and oversight to help our portfolio companies navigate these headwinds, enabling them to adapt to changing market conditions and emerge even stronger. We remain proactive in assessing potential macroeconomic shifts, credit risks, interest rate movements and ensure that we are positioned to capitalize on the events and seize attractive investment opportunities when they are presented.

我們強有力的治理和監督幫助我們的投資組合公司克服這些不利因素，使它們能夠適應不斷變化的市場條件並變得更強大。我們始終積極評估潛在的宏觀經濟變化、信貸風險和利率變動，並確保我們能夠利用這些事件，並在出現有吸引力的投資機會時抓住它們。

While challenges do persist, our investment approach and the overall diversified portfolio should help to provide resilience. We remain optimistic about the potential for recovery in the effective portfolio valuations, particularly if consumer spending and overall market conditions stabilize.

儘管挑戰依然存在，但我們的投資方式和整體多元化投資組合應該有助於增強韌性。我們仍然對有效投資組合估值的復甦潛力持樂觀態度，特別是如果消費者支出和整體市場狀況穩定下來。

At the core of everything we do is our unwavering commitment to our shareholders and thank you for that. Our ability to generate sustainable long-term value remains our top priority, and we are confident that our strategy positions, does position us well for continued success.

我們所做的一切的核心是對股東的堅定承諾，對此我們表示感謝。創造可持續長期價值的能力仍然是我們的首要任務，我們相信，我們的策略定位確實為我們持續成功奠定了良好的基礎。

Thank you for your time, your trust and your continued support. We look forward to updating you on our progress with our first quarter 2025 results in May and have a wonderful day.

感謝您的時間、信任和持續的支持。我們期待在 5 月向您報告 2025 年第一季的業績進展，祝您有美好的一天。

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

謝謝。今天的會議到此結束。現在您可以斷開您的線路了，感謝您的參與。