Rand Capital Corp (RAND) 2026 Q1 法說會逐字稿

Ladies and gentlemen, greetings, and welcome to the Rand Capital Corporation first quarter FY 2026 financial results conference call. (Operator Instructions) As a reminder, this conference is being recorded.

各位女士、先生，大家好，歡迎參加 Rand Capital Corporation 2026 財政年度第一季財務業績電話會議。(接線員指示) 提醒各位，本次會議將被錄音。

It is now my pleasure to introduce your host for today. Mr. Craig Mychajluk. Please go ahead.

現在我很榮幸為各位介紹今天的主持人。Craig Mychajluk 先生。請開始。

Thank you, and good afternoon, everyone. We appreciate your interest in Rand Capital for joining us today for our first quarter 2026 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. You're following along on the slide deck, please turn to slide 2, where I'd like to point out some important information.

謝謝，各位下午好。感謝各位對 Rand Capital 的關注，並在今天加入我們的 2026 年第一季財務業績電話會議。與我同線的有我們的總裁兼執行長 Dan Penberthy，以及我們的執行副總裁兼財務長 Margaret Brechtel。本次對談所對應的新聞稿與簡報投影片可於 randcapital.com 取得。若您正跟著投影片進行，請翻到第 2 頁，我想指出一些重要資訊。

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.

如各位可能已知，我們在本次簡報中可能會提出前瞻性陳述。這些陳述涉及未來事件，並受風險與不確定性以及其他因素影響，可能導致實際結果與我們目前所處狀況有所差異。您可在財報新聞稿以及公司向美國證券交易委員會提交的其他文件中，找到這些風險與不確定性及其他因素的摘要。這些文件可在我們的網站或 sec.gov 查閱。

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，我們也將討論一些非 GAAP 財務衡量指標。我們相信這些指標有助於評估我們的表現。您不應將這些補充資訊的呈現視為獨立資訊，或作為依一般公認會計原則所編製結果的替代。我們已在今日財報新聞稿所附表格中，提供非 GAAP 指標與可比 GAAP 指標之調節表。

With that, please turn to slide 3, and I'll hand the discussion over to Dan. Dan?

接下來，請翻到第 3 頁，我將把討論交給 Dan。Dan？

Thank you, Craig, and good afternoon, everyone. We view Q1 as a transition quarter for Rand. Our results reflected the impact of nonaccruals and a smaller income-producing portfolio due to the repayment of several debt investments during 2025. But we've also made progress on several fronts that we believe are important as we move through 2026. Investment income for the quarter was $1.2 million and net investment income was $0.18 per share.

謝謝你，Craig，各位下午好。我們將第一季視為 Rand 的過渡季度。我們的結果反映了停止計息（nonaccrual）以及因 2025 年多筆債務投資償還而導致收益型投資組合規模縮小的影響。但同時，我們也在多個面向取得進展，我們認為這些進展對於我們在 2026 年的推進相當重要。本季投資收入為 120 萬美元，淨投資收入為每股 0.18 美元。

Those figures were below the prior year period primarily due to reduced amount of interest income from our current portfolio companies as compared with 2025.

上述數字較去年同期偏低，主要是因為相較於 2025 年，我們目前投資組合公司所帶來的利息收入減少。

At the same time, we generated a realized gain of approximately $1.1 million from the exit of Cyber or the red group, as it's commonly known, and we also deployed $5.1 million into new and follow-on investments during the quarter. This includes our new investment in AME Holdco. From a capital position standpoint, we ended the quarter with net asset value of $17.16 per share with approximately 80% of the portfolio invested in debt investments and more than $20 million available liquidity with only $500,000 drawn on our line of credit at quarter end.

同時，我們因退出 Cyber（或一般所稱的 red group）而實現約 110 萬美元的已實現收益，並且在本季投入 510 萬美元於新投資及後續追加投資。其中包括我們對 AME Holdco 的新投資。就資本狀況而言，本季末每股淨資產價值為 17.16 美元，投資組合約 80% 配置於債務投資；此外，可用流動性超過 2,000 萬美元，而季末在信用額度項下僅動用 50 萬美元。

So while the quarter's earnings reflect delay from 2025 debt repayments and current portfolio nonaccruals, we believe the quarter also showed continued execution through capital recycling, new investment activity and balance sheet flexibility.

因此，雖然本季盈餘反映了 2025 年債務償還所造成的遞延影響以及目前投資組合停止計息的影響，我們認為本季也展現了持續的執行力，包括資本回收再投入（capital recycling）、新投資活動以及資產負債表的彈性。

With that overview, let's turn to slide 4. Delivering consistent cash dividends remains central to Rand's strategy. During the first quarter, we paid our regular quarterly cash dividend of $0.29 per share. And in April, we declared another regular dividend of $0.29 per share for the second quarter of 2026. That consistency is important even in periods where repayments have reduced the size of the earning portfolio and nonaccruals have weighed on our current income.

在上述概述之後，讓我們翻到第 4 頁。提供穩定的現金股利仍是 Rand 策略的核心。第一季期間，我們支付了例行的季度現金股利，每股 0.29 美元。並且在 4 月，我們宣告 2026 年第二季將再發放一次例行股利，每股 0.29 美元。即使在償還款降低收益型投資組合規模、且停止計息對當期收入造成壓力的期間，這樣的一致性仍然很重要。

We have remained focused on supporting the regular dividend while rebuilding the portfolio.

在重建投資組合的同時，我們仍專注於支持例行股利的發放。

The nature of the gap versus tax or RIC based accounting for our dividends has benefited us in 2026 as we work hard to rebuild the portfolio base supporting future dividends. Our dividend strategy remains disciplined and earnings driven. We want to preserve balance sheet flexibility, continue to support the portfolio where appropriate and deploy capital selectively into investments that can contribute to income and create long-term shareholder value.

就我們股利在稅務或 RIC（受監管投資公司）基礎會計與財務會計之間的差異而言，這種落差在 2026 年對我們有所助益，因為我們正努力重建支撐未來股利的投資組合基礎。我們的股利策略仍維持紀律並以盈餘為導向。我們希望維持資產負債表彈性，在適當情況下持續支持投資組合，並有選擇性地部署資本於可貢獻收入並創造長期股東價值的投資。

Please turn to slide 5 for a review of the portfolio. At March 31, our portfolio had a fair value of $51.5 million across 20 portfolio companies. This compares with $48.5 million at year-end 2025. The portfolio remained positioned toward income generation with approximately 80% in debt investments, as I previously highlighted and 20% in equity investments. that debt orientated mix continues to reflect our emphasis on structures designed to generate current income while preserving some potential upside through equity participation.

請翻到第 5 頁以檢視投資組合。截至 3 月 31 日，我們的投資組合在 20 家投資組合公司中的公允價值為 5,150 萬美元。相較之下，2025 年底為 4,850 萬美元。投資組合仍以創造收益為定位，約 80% 為債務投資（如我先前所強調），20% 為股權投資。此一偏向債務的配置，持續反映我們著重於能產生當期收入的結構，同時透過股權參與保留部分上行潛力。

The annualized weighted average yield on debt investments, including PIK interest was 9.43% at quarter end, down from 11.3% at December 31, 2025. That decline primarily reflects the impact of nonaccruals, including such companies as FSS and MRES, both of which were placed on nonaccrual status beginning in the fourth quarter of 2025. These nonaccruals dragged down the total yield on an aggregated basis. However, keep in mind our individual transactions are more typically currently being priced with interest in the 13% to 14% range. More broadly, our strategy remains focused on expanding income-producing investments over time, while preserving credit quality with a disciplined approach to underwriting and valuation.

季末債務投資的年化加權平均殖利率（包含 PIK 利息）為 9.43%，低於 2025 年 12 月 31 日的 11.3%。此一下降主要反映停止計息的影響，包括 FSS 與 MRES 等公司，兩者自 2025 年第四季起均被列為停止計息狀態。這些停止計息在彙總基礎上拉低了整體殖利率。不過請記得，我們的單筆交易在定價上通常仍以 13% 至 14% 的利率區間為主。更廣泛而言，我們的策略仍聚焦於隨時間擴大收益型投資，同時以嚴謹的承作審查與估值方法維持信用品質。

Please turn to slide 6. This slide summarizes our key portfolio actions in the quarter both new deployment and follow-on capital as well as the actions we took in a workout situation and importantly, a strong full cycle realization or exit for Rand. We closed a $4.0 million investment in AME Holdco during the quarter, consisting of a $3 million term loan at 13% and a $1 million equity investment alongside it. AME provides auto center design and installation services, and we believe it fits well within our lower middle market investment strategy.

請翻到第 6 張投影片。本頁總結了我們本季的關鍵投資組合行動，包括新資金投放與後續追加資本，以及我們在重整（workout）情境中採取的措施；更重要的是，Rand 完成了一筆強勁的全週期變現或退出。本季我們完成對 AME Holdco 的 400 萬美元投資，包括一筆 300 萬美元、利率 13% 的定期貸款，以及搭配的 100 萬美元股權投資。AME 提供汽車中心設計與安裝服務，我們認為其非常符合我們對低中型市場的投資策略。

We also remained active with existing portfolio companies. During the quarter, we participated with a co-investor in the buyout of MRES senior credit position with Rand's pro rata investment totaling approximately $678,000. This positioned the investor group as a senior creditor in the situation. MRES is currently being restructured through a technical bankruptcy through the courts. We are optimistic that given our strong position in both the senior and subordinated debt tranches, we will play a key role in partnering with the company to execute a successful workout plan.

我們也持續積極投入既有投資組合公司。本季我們與共同投資人一同參與收購 MRES 的優先債權部位，Rand 按比例投資合計約 67.8 萬美元。此舉使投資人團體在該案中成為優先債權人。MRES 目前正透過法院進行技術性破產重整。我們對前景保持樂觀，因為我們在優先與次級債務分層中都具備強勢部位，將在與公司合作執行成功的重整（workout）計畫上扮演關鍵角色。

We also funded a $400,000 follow-on debt investment in FSS, bringing our total investment there to a fair value of $4.3 million at quarter end.

我們也對 FSS 追加投入 40 萬美元的後續債務投資，使我們在該項投資於季末的總投資公允價值達到 430 萬美元。

And lastly, we completed a smaller follow-on equity investment of $50,000 into Cytec. In addition to those investments, the quarter included the final monetization of Cyber doing business as the RAC group, which we view as a strong investment outcome for Rand. We have previously received full repayment of our original $7.7 million debt investment. And during the first quarter, we sold our remaining equity holdings for approximately $1.3 million in proceeds, generating a realized gain of approximately $1.1 million.

最後，我們也對 Cytec 完成一筆較小的後續股權投資 5 萬美元。除上述投資外，本季亦完成對 Cyber（以 RAC 集團名義營運）的最終變現，我們視其為 Rand 的一項強勁投資成果。我們先前已全數收回原始 770 萬美元的債務投資本金。並且在第一季出售我們剩餘的股權持有部位，取得約 130 萬美元的處分收入，實現約 110 萬美元的已實現收益。

The Rec Group is a good example of the way our model is intended to work. earning income through the life of the investment, providing follow-on capital to support growth and participating in upside through equity components. More broadly, it also reflects the capital recycling dynamic that is core to our strategy and all BDCs, where repayments and realizations create capital for future deployment into new income-producing opportunities.

RAC 集團是我們模式預期運作方式的一個良好例子：在投資存續期間賺取收益、提供後續資本以支持成長，並透過股權組件參與上行空間。更廣泛而言，這也反映了資本回收再投入（capital recycling）的動態，這是我們策略以及所有 BDC 的核心：還款與變現為未來投放至新的、可產生收益的機會提供資本。

Please turn to slide 7, which shows our balanced industry exposure across the portfolio. Professional and business services remains the largest area of exposure followed by manufacturing and then distribution and consumer products. While individual weighting shifted during the quarter due to new investments, follow-on funding and repayments and valuation changes, the broader portfolio continues to reflect a balanced mix across multiple industries aligned with our lower middle market focus. We believe maintaining this balanced industry exposure supports the portfolio resilience, while preserving flexibility to pursue attractive sector-specific opportunities as they do emerge.

請翻到第 7 張投影片，該頁顯示我們投資組合在各產業間的均衡曝險。專業與商業服務仍是最大曝險領域，其次為製造業，再其次為流通與消費性產品。雖然本季因新投資、後續撥款、還款與估值變動而使個別權重有所調整，但整體投資組合仍呈現跨多個產業的均衡配置，並與我們聚焦低中型市場的定位一致。我們相信維持此種均衡的產業曝險有助於提升投資組合韌性，同時保留彈性，以在出現具吸引力的特定產業機會時加以把握。

Please turn to slide 8. Our top 5 portfolio investments represented approximately $22.9 million in fair value or 44% of the total portfolio at March 31, 2026. These holdings include international electronic alloys or INEA, KiTek, Highland, all about people, BNP food service supply and AME Holdco. These investments form an important part of the portfolio, and we are focused on working with the companies to preserve creditworthiness and the value in the Rand portfolio as well as to preserve and maintain their income-producing base. Some also include equity participation or PIK interest income features that can contribute to additional return potential over time.

請翻到第 8 張投影片。截至 2026 年 3 月 31 日，我們前五大投資的公允價值合計約 2,290 萬美元，占整體投資組合的 44%。這些持有項目包括 International Electronic Alloys（INEA）、KiTek、Highland、All About People、BNP Food Service Supply，以及 AME Holdco。這些投資構成投資組合的重要部分，我們專注於與各公司合作，以維持其信用狀況與 Rand 投資組合中的價值，並保護與維持其可產生收益的基礎。其中部分亦包含股權參與或 PIK 利息收入等特性，隨時間推移可帶來額外報酬潛力。

Compared with prior periods, the top 5 also reflect the portfolio transition we have discussed. Cyber is no longer in the top 5 following the full monetization of that investment and AME has now entered the group following our new investment in the quarter. With that, I'll turn it over to Margaret to walk through the financial results in more detail.

與先前期間相比，前五大投資也反映了我們所討論的投資組合轉型。由於該投資已完成全面變現，Cyber 不再位列前五大；而 AME 則因本季的新投資而進入該行列。接下來我將把時間交給 Margaret，請她更詳細說明財務結果。

Thanks, Dan, and good afternoon, everyone. I will start on slide 10, which provides an overview of our financial summary and operational highlights for the first quarter of 2026. Total investment income was $1.2 million, down 38% compared with the prior year period. The decrease primarily reflects lower interest income from portfolio companies following the repayment of 5 debt instruments over the past year, along with lower fee income.

謝謝你，Dan，各位下午好。我將從第 10 張投影片開始，該頁提供我們 2026 年第一季的財務摘要與營運重點概覽。總投資收入為 120 萬美元，較去年同期下降 38%。下降主要反映過去一年中 5 項債務工具已償還後，來自投資組合公司的利息收入降低，以及費用收入減少。

Noncash PIK interest totaled $244,000 in this first quarter, representing 20% of total investment income compared with 31% in the prior year period. We continue to monitor PIK exposure closely. Total expenses were $642,000 for the quarter, down 19% compared with $791,000 in the first quarter of 2025. The decrease primarily reflects lower base management fees and no income-based Sanofi accrual in the first quarter of 2026. Net investment income for the quarter was $545,000 or $0.18 per share.

本季非現金 PIK 利息合計 24.4 萬美元，占總投資收入的 20%，相較去年同期為 31%。我們將持續密切監控 PIK 曝險。本季總費用為 64.2 萬美元，較 2025 年第一季的 79.1 萬美元下降 19%。下降主要反映基本管理費降低，以及 2026 年第一季未計提以收入為基礎的 Sanofi 應計費用。本季淨投資收益為 54.5 萬美元，或每股 0.18 美元。

Adjusted net investment income per share is also $0.18 per share.

調整後每股淨投資收益同樣為每股 0.18 美元。

Please turn to slide 11. The waterfall chart on this slide illustrates the drivers of net asset value change during the first quarter of 2026. We began the period with net assets of $52.2 million. During the quarter, we generated $545,000 of net investment income and $1.1 million of net realized gain on the sale of our remaining equity position in cyber. These positive contributions were offset by $2 million of unrealized depreciation at $861,000 of dividends declared during the quarter, resulting in ending net assets of approximately $51 million and a net asset value per share of $17.16.

請翻到第 11 張投影片。本頁的瀑布圖說明 2026 年第一季淨資產價值變動的驅動因素。期初淨資產為 5,220 萬美元。本季我們產生 54.5 萬美元的淨投資收益，並因出售我們在 Cyber 的剩餘股權部位而取得 110 萬美元的淨已實現收益。上述正面貢獻被 200 萬美元的未實現減值以及本季宣告的 86.1 萬美元股利所抵銷，使期末淨資產約為 5,100 萬美元，每股淨資產價值為 17.16 美元。

Now turning to the balance sheet on slide 12. At March 31, 2026, total assets were $52.5 million and net asset value per share was $17.16 as I just mentioned. Our investment portfolio accounted for $51.5 million of total assets or $17.36 per share, while consolidated cash was $331,000 or $0.11 per share. Other assets and liabilities net reduced net asset value by approximately $919,000 or $0.31 per share. We ended the quarter with $500,000 outstanding on our senior secured revolving credit facility and approximately $20.1 million of remaining availability.

現在轉到第12頁投影片的資產負債表。截至2026年3月31日，總資產為5,250萬美元，如我剛才提到的，每股淨資產價值為17.16美元。我們的投資組合占總資產的5,150萬美元（或每股17.36美元），而合併現金為33.1萬美元（或每股0.11美元）。其他資產及負債淨額使每股淨資產價值減少約91.9萬美元（或每股0.31美元）。本季末，我們在優先擔保循環信用額度項下的未償餘額為50萬美元，剩餘可用額度約為2,010萬美元。

This facility permits up to $25 million in borrowings, subject to borrowing conditions and portfolio eligibility requirements, and it does not mature until 2027. The Board of Directors also renewed our share repurchase program, authorizing the repurchase of up to $1.5 million of additional Rand Capital common stock. The combination of modest leverage, meaningful availability under the facility and the renewed authorization provides flexibility as we evaluate opportunities to deploy and where appropriate, return capital to shareholders.

該融資安排允許最高2,500萬美元的借款，但須符合借款條件及投資組合合格性要求，且到期日為2027年。董事會亦續期我們的股份回購計畫，授權額外回購最多150萬美元的Rand Capital普通股。適度槓桿、該融資安排下可觀的可用額度，以及續期的授權相結合，使我們在評估資金部署機會並在適當時向股東返還資本時更具彈性。

With that, I will turn it back to Dan for closing remarks.

接下來，我把時間交還給Dan作結語。

Thanks, Margaret. If you would please turn to slide 13. As we step back and look at where RAND stands today. We believe the first quarter continued the transition we began in 2025. We are moving from a period where repayments and portfolio events dominated the narrative into a period where we are again deploying capital selectively into new income-producing assets while managing through a handful of challenged portfolio positions.

謝謝你，Margaret。請翻到第13頁投影片。當我們退一步看RAND目前的狀況。我們認為第一季延續了我們在2025年開始的轉型。我們正從「還款與投資組合事件主導敘事」的階段，轉向「在管理少數具挑戰性的投資組合部位的同時，再次有選擇地將資本部署於新的、可產生收益的資產」的階段。

What continues to differentiate Rand is our flexibility. Across the BDC landscape, investors are focused on dividend sustainability, credit quality and balance sheet strength. We believe our actions from a capital recycling and new investment deployment, while maintaining conservative leverage demonstrates that we are managing with that same focus.

持續使Rand與眾不同的是我們的彈性。在整個BDC產業中，投資人關注股利的可持續性、信用品質與資產負債表的強度。我們認為，我們在資本回收再投入與新投資部署方面的作為，同時維持保守槓桿，顯示我們也以同樣的重點在管理。

Looking ahead, our 2026 objectives are straightforward and aligned with the slide. First, we are executing a long-term strategy, anchored in a resilient income-focused investment model. We are seeing early signs of improved sponsor activity and deal flow in our segment of the market and we believe we are well positioned to scale the portfolio prudently as attractive opportunities emerge.

展望未來，我們2026年的目標明確，並與投影片一致。第一，我們正在執行一項長期策略，以具韌性、以收益為核心的投資模式為基礎。我們在本市場區隔看到贊助方活動與交易流量改善的早期跡象，並相信隨著具吸引力的機會出現，我們已做好準備以審慎方式擴大投資組合規模。

Second, we intend to use our liquidity and available credit capacity to support both new investments and follow-on capital where we see compelling risk-adjusted returns. We are maintaining underwriting standards and active portfolio oversight. including in situations like FSS and MRES, where we are working to protect and where possible, enhance future value.

第二，我們打算運用流動性與可用的信用額度，支持新投資以及在我們看到具吸引力的風險調整後報酬時的後續資本投入。我們將維持承作標準與主動的投資組合監督，包括在如FSS與MRES等情況下，我們正努力保護並在可能時提升未來價值。

Third, our goal is to support a consistent earnings-driven dividend while reinforcing NAV through disciplined capital allocation. We believe our current balance sheet, portfolio mix and pipeline give us this flexibility to pursue growth from a position of strength rather than a need to chase volume. We believe the work completed in 2025 and the actions taken in the first quarter of 2026, have physician ran to rebuild the portfolio thoughtfully from a position of balance sheet strength. We remain focused on the things we can control, prudent underwriting, disciplined capital allocation and long-term shareholder value creation.

第三，我們的目標是在強化每股淨資產價值（NAV）的同時，透過嚴謹的資本配置支持穩定、以獲利驅動的股利。我們相信目前的資產負債表、投資組合結構與案源管道，使我們能以強勢地位追求成長，而非出於追逐規模的需要。我們相信，2025年完成的工作以及2026年第一季採取的行動，已為我們從資產負債表強健的基礎上，有條不紊地重建投資組合奠定基礎。我們仍專注於我們可控的事項：審慎承作、嚴謹資本配置，以及長期股東價值的創造。

As you all know, the broader BDC market is experiencing significant volatility and private credit has become more challenging for many of the newer public and private funds. Brand is not immune to these dynamics. However, we are confident that our decades of experience, the strength of our management team, these will guide us through what we expect to be a relatively short-lived and intermittent period of market disruption.

如各位所知，更廣泛的BDC市場正經歷顯著波動，對許多較新的公募與私募基金而言，私募信貸環境也變得更具挑戰。Rand並非不受這些動態影響。然而，我們有信心，憑藉數十年的經驗以及管理團隊的實力，將引導我們度過我們預期相對短暫且間歇性的市場干擾期。

Thank you for your time today and your continued interest in Rand Capital. We appreciate your support and look forward to updating you on our progress next quarter. Have a great day and go savers.

感謝各位今天撥冗，以及持續關注Rand Capital。我們感謝各位的支持，並期待在下個季度向各位更新我們的進展。祝各位有美好的一天，go savers。

Ladies and gentlemen, the conference call of Rand Capital Corporation has now concluded. Thank you for your participation. You may now disconnect your lines.

各位女士先生，Rand Capital Corporation的電話會議至此結束。感謝各位參與。您現在可以掛斷電話。