OFS Capital Corporation Announces Fourth Quarter 2024 Financial Results
OFS Capital (Nasdaq: OFS) reported strong Q4 2024 financial results, with net investment income increasing to $0.30 per share from $0.27 in Q3. The company saw a significant net gain on investments of $1.60 per share, primarily due to net unrealized appreciation of $1.79 per share.
Net asset value per share improved to $12.85 from $11.29 quarter-over-quarter. The investment portfolio, valued at $409.7 million, showed a 13.8% weighted-average performing income yield. The portfolio composition includes 91% floating rate loans, with 100% in first and second lien loans.
The Board declared a Q1 2025 distribution of $0.34 per share, payable March 31, 2025. During Q4, the company purchased $27.4 million of structured finance securities with a weighted-average effective yield of 22.7%.
OFS Capital (Nasdaq: OFS) ha riportato risultati finanziari solidi per il quarto trimestre del 2024, con un reddito netto da investimenti che è aumentato a $0.30 per azione rispetto a $0.27 nel terzo trimestre. L'azienda ha registrato un guadagno netto significativo sugli investimenti di $1.60 per azione, principalmente a causa di un apprezzamento non realizzato netto di $1.79 per azione.
Il valore netto degli attivi per azione è migliorato a $12.85 da $11.29 rispetto al trimestre precedente. Il portafoglio di investimenti, valutato a $409.7 milioni, ha mostrato un rendimento medio ponderato del 13.8% sul reddito. La composizione del portafoglio include il 91% di prestiti a tasso variabile, con il 100% in prestiti di primo e secondo grado.
Il Consiglio ha dichiarato una distribuzione per il primo trimestre del 2025 di $0.34 per azione, pagabile il 31 marzo 2025. Durante il quarto trimestre, l'azienda ha acquistato $27.4 milioni di titoli di finanza strutturata con un rendimento medio ponderato effettivo del 22.7%.
OFS Capital (Nasdaq: OFS) reportó resultados financieros sólidos para el cuarto trimestre de 2024, con un ingreso neto por inversiones que aumentó a $0.30 por acción desde $0.27 en el tercer trimestre. La compañía vio una ganancia neta significativa en inversiones de $1.60 por acción, principalmente debido a una apreciación no realizada neta de $1.79 por acción.
El valor neto de los activos por acción mejoró a $12.85 desde $11.29 trimestre a trimestre. La cartera de inversiones, valorada en $409.7 millones, mostró un rendimiento promedio ponderado del 13.8% en ingresos. La composición de la cartera incluye un 91% de préstamos a tasa variable, con el 100% en préstamos de primer y segundo grado.
La Junta declaró una distribución para el primer trimestre de 2025 de $0.34 por acción, pagadera el 31 de marzo de 2025. Durante el cuarto trimestre, la compañía compró $27.4 millones en valores de finanzas estructuradas con un rendimiento efectivo promedio ponderado del 22.7%.
OFS Capital (Nasdaq: OFS)는 2024년 4분기 재무 결과가 강력하다고 보고했으며, 주당 순투자 수익이 0.27달러에서 0.30달러로 증가했습니다. 회사는 주당 1.60달러의 상당한 순투자 이익을 기록했으며, 이는 주당 1.79달러의 순 미실현 평가 이익 덕분입니다.
주당 순자산 가치는 분기 대비 11.29달러에서 12.85달러로 개선되었습니다. 4억 970만 달러로 평가된 투자 포트폴리오는 13.8%의 가중 평균 수익률을 보였습니다. 포트폴리오 구성은 91%의 변동 금리 대출을 포함하며, 100%는 1순위 및 2순위 대출입니다.
이사회는 2025년 1분기 배당금을 주당 0.34달러로 선언했으며, 2025년 3월 31일에 지급됩니다. 4분기 동안 회사는 2740만 달러의 구조화 금융 증권을 구매했으며, 가중 평균 유효 수익률은 22.7%입니다.
OFS Capital (Nasdaq: OFS) a rapporté de solides résultats financiers pour le quatrième trimestre 2024, avec un revenu net d'investissement augmentant à 0,30 $ par action contre 0,27 $ au troisième trimestre. L'entreprise a enregistré un gain net significatif sur les investissements de 1,60 $ par action, principalement en raison d'une appréciation non réalisée nette de 1,79 $ par action.
La valeur nette des actifs par action a augmenté à 12,85 $ contre 11,29 $ d'un trimestre à l'autre. Le portefeuille d'investissement, évalué à 409,7 millions de dollars, a montré un rendement moyen pondéré de 13,8 % sur les revenus. La composition du portefeuille comprend 91 % de prêts à taux variable, avec 100 % en prêts de premier et deuxième rang.
Le Conseil a déclaré une distribution pour le premier trimestre 2025 de 0,34 $ par action, payable le 31 mars 2025. Au cours du quatrième trimestre, l'entreprise a acheté pour 27,4 millions de dollars de titres de finance structurée avec un rendement effectif moyen pondéré de 22,7 %.
OFS Capital (Nasdaq: OFS) hat starke Finanzresultate für das vierte Quartal 2024 gemeldet, wobei das Nettoinvestitionseinkommen von 0,27 $ im dritten Quartal auf 0,30 $ pro Aktie gestiegen ist. Das Unternehmen verzeichnete einen signifikanten Nettogewinn aus Investitionen von 1,60 $ pro Aktie, hauptsächlich aufgrund einer nicht realisierten Nettowertsteigerung von 1,79 $ pro Aktie.
Der Nettoinventarwert pro Aktie verbesserte sich von 11,29 $ auf 12,85 $ im Quartalsvergleich. Das Investitionsportfolio, das auf 409,7 Millionen $ geschätzt wird, zeigte eine gewichtete durchschnittliche Ertragsrendite von 13,8%. Die Zusammensetzung des Portfolios umfasst 91% variabel verzinste Kredite, wobei 100% in Erstrang- und Zweitrangdarlehen investiert sind.
Der Vorstand erklärte eine Ausschüttung für das erste Quartal 2025 von 0,34 $ pro Aktie, zahlbar am 31. März 2025. Im vierten Quartal erwarb das Unternehmen strukturierte Finanzwertpapiere im Wert von 27,4 Millionen $ mit einer gewichteten durchschnittlichen effektiven Rendite von 22,7%.
- Net investment income increased to $0.30 per share from $0.27
- NAV per share rose to $12.85 from $11.29
- Portfolio yield improved to 13.8% from 13.6%
- Net unrealized appreciation of $1.79 per share
- Structured finance securities yield of 22.7%
- Net realized losses of $0.19 per share
- Net realized loss of $1.9M on sale of second lien debt investment
Insights
OFS Capital's Q4 2024 results demonstrate notable strengthening across key performance metrics. The 14% increase in NAV to
The
The reduction in non-accrual loans and substantial liquidity (
The decisive portfolio management demonstrated by exiting a troubled second lien position, combined with the
OFS Capital's substantial NAV appreciation to
The strategic portfolio positioning deserves attention - 91% floating-rate exposure provides meaningful downside protection against potential rate volatility while maintaining attractive yields. The structured finance securities allocation, while higher-yielding at
The
From a liquidity standpoint, the
Declares First Quarter 2025 Distribution of
FOURTH QUARTER FINANCIAL HIGHLIGHTS
-
Net investment income increased to
per common share for the quarter ended December 31, 2024 from$0.30 per common share for the quarter ended September 30, 2024.$0.27 -
Net gain on investments of
per common share for the quarter ended December 31, 2024, primarily comprised of net unrealized appreciation of$1.60 per common share, offset in part by net realized losses of$1.79 per common share. See additional information under “Results of Operations” below.$0.19 -
Net asset value per common share increased to
at December 31, 2024 from$12.85 at September 30, 2024.$11.29 -
As of December 31, 2024, based on fair value,
91% of our loan portfolio consisted of floating rate loans and100% of our loan portfolio consisted of first and second lien loans. -
For the quarter ended December 31, 2024, our investment portfolio’s weighted-average performing income yield increased to
13.8% from13.6% during the quarter ended September 30, 2024, primarily due to an increase in earned yields on our structured finance securities. - No new loans were placed on non-accrual status during the fourth quarter. The number of issuers with loans on non-accrual status decreased by one from the prior quarter. See additional information under “Portfolio and Investment Activities” below.
OTHER RECENT EVENTS
-
On February 26, 2025, our Board of Directors declared a distribution of
per common share for the first quarter of 2025, payable on March 31, 2025 to stockholders of record as of March 21, 2025.$0.34
SELECTED FINANCIAL HIGHLIGHTS |
Quarter Ended |
||||||
(Per common share) |
December 31, 2024 |
|
September 30, 2024 |
||||
Net Investment Income |
|
|
|
||||
Net investment income |
$ |
0.30 |
|
|
$ |
0.27 |
|
|
|
|
|
||||
Net Realized/Unrealized Gain (Loss) |
|
|
|
||||
Net realized loss on investments, net of taxes |
$ |
(0.19 |
) |
|
$ |
(0.83 |
) |
Net unrealized appreciation on investments, net of taxes |
|
1.79 |
|
|
|
0.68 |
|
Net realized and unrealized gain (loss) |
$ |
1.60 |
|
|
$ |
(0.15 |
) |
|
|
|
|
||||
Earnings (Loss) |
|
|
|
||||
Earnings (loss) |
$ |
1.90 |
|
|
$ |
0.12 |
|
|
|
|
|
||||
Net Asset Value |
|
|
|
||||
Net asset value |
$ |
12.85 |
|
|
$ |
11.29 |
|
Distributions paid |
|
0.34 |
|
|
|
0.34 |
|
|
As of |
||||
(in millions) |
December 31, 2024 |
|
September 30, 2024 |
||
Balance Sheet Highlights |
|
|
|
||
Investment portfolio, at fair value |
$ |
409.7 |
|
$ |
394.7 |
Outstanding debt |
|
248.4 |
|
|
249.1 |
Net assets |
|
172.2 |
|
|
151.3 |
PORTFOLIO AND INVESTMENT ACTIVITIES ($ in millions) |
||||||||
|
|
Quarter Ended |
||||||
Portfolio Yields(1) |
|
December 31, 2024 |
|
September 30, 2024 |
||||
Average performing interest-bearing investments, at cost |
|
$ |
298.0 |
|
|
$ |
309.4 |
|
Weighted-average performing income yield - interest-bearing investments(2) |
|
|
13.8 |
% |
|
|
13.6 |
% |
Weighted-average realized yield - interest-bearing investments(3) |
|
|
11.9 |
% |
|
|
11.8 |
% |
(1) |
The weighted-average yield of our investments is not the same as a return on investment for our stockholders, but rather relates to our investment portfolio and is calculated before the payment of all of our fees and expenses. |
|
(2) |
Performing income yield is calculated as (a) the actual amount earned on performing interest-bearing investments, including interest, prepayment fees and amortization of net loan fees, divided by (b) the weighted-average of total performing interest-bearing investments at amortized cost. |
|
(3) |
Realized yield is calculated as (a) the actual amount earned on interest-bearing investments, including interest, prepayment fees and amortization of net loan fees, divided by (b) the weighted-average of total interest-bearing investments at amortized cost, in each case, including debt investments on non-accrual status and non-performing structured finance securities. |
|
|
Quarter Ended |
||||
Portfolio Purchase Activity |
|
December 31, 2024 |
|
September 30, 2024 |
||
Investments in debt securities |
|
$ |
23.2 |
|
$ |
30.4 |
Investments in structured finance securities |
|
|
9.4 |
|
|
18.0 |
Total investment purchases and originations |
|
$ |
32.6 |
|
$ |
48.4 |
During the quarters ended December 31, 2024 and September 30, 2024, we purchased
As of December 31, 2024, based on fair value, our investment portfolio was comprised of the following:
-
Total investments of
, which was equal to approximately$409.7 million 113% of amortized cost; -
Debt investments of
, of which$224.2 million 85% and15% were first lien loans and second lien loans, respectively; -
Equity investments of
; and$108.6 million -
Structured finance securities of
.$76.9 million
During the quarter ended December 31, 2024, we sold a second lien debt investment, which was previously on non-accrual status, resulting in a net realized loss of
OUTSTANDING DEBT
During the quarter ended December 31, 2024 and September 30, 2024, the average dollar borrowings and weighted-average effective interest rate for our debt were as follows ($ in millions):
Quarter ended |
|
Average Dollar Borrowings |
|
Weighted-Average Effective Interest Rate |
||
December 31, 2024 |
|
$ |
248.1 |
|
6.30 |
% |
September 30, 2024 |
|
|
249.1 |
|
6.46 |
|
RESULTS OF OPERATIONS |
|
|
|
|||
(in thousands) |
Quarter Ended |
|||||
|
December 31, 2024 |
|
September 30, 2024 |
|||
Total investment income |
$ |
11,648 |
|
$ |
10,918 |
|
Expenses: |
|
|
|
|||
Interest expense |
|
3,937 |
|
|
4,022 |
|
Base management and incentive fees |
|
2,539 |
|
|
2,373 |
|
Professional, administration and other expenses |
|
1,096 |
|
|
920 |
|
Total expenses |
|
7,572 |
|
|
7,315 |
|
Net investment income |
|
4,076 |
|
|
3,603 |
|
Net gain (loss) on investments |
|
21,399 |
|
|
(1,915 |
) |
Net increase in net assets resulting from operations |
$ |
25,475 |
|
$ |
1,688 |
|
Investment Income
For the quarter ended December 31, 2024, total investment income increased by
Expenses
For the quarter ended December 31, 2024, total expenses increased by
Net Gain (Loss) on Investments
For the quarter ended December 31, 2024, net gain on investments of
LIQUIDITY AND CAPITAL RESOURCES
As of December 31, 2024, we had
As of December 31, 2024, we had an unused commitment of
As of December 31, 2024, we had a payable for investments purchased of
CONFERENCE CALL
OFS Capital will host a conference call to discuss these results on Tuesday, March 4, 2025, at 10:00 AM Eastern Time. Interested parties may participate in the call via the following:
INTERNET: Go to www.ofscapital.com at least 15 minutes prior to the start time of the call to register, download, and install any necessary audio software. A replay will be available for 90 days on OFS Capital’s website at www.ofscapital.com.
TELEPHONE: Dial 1-833-816-1364 (Domestic) or 1-412-317-5699 (International) approximately 15 minutes prior to the call. A telephone replay of the conference call will be available through March 14, 2025 and may be accessed by calling 1-877-344-7529 (Domestic) or 1-412-317-0088 (International) and utilizing conference ID #8100611.
For more detailed discussion of the financial and other information included in this press release, please refer to OFS Capital’s Form 10-K for the year ended December 31, 2024.
OFS Capital Corporation and Subsidiaries Consolidated Statements of Assets and Liabilities (Dollar amounts in thousands, except per share data) |
|||||||
|
December 31, |
||||||
|
2024 |
|
2023 |
||||
Assets |
|
|
|
||||
Total investments, at fair value (amortized cost of |
$ |
409,665 |
|
|
$ |
420,287 |
|
Cash and cash equivalents |
|
6,068 |
|
|
|
45,349 |
|
Receivable for investments sold |
|
9,247 |
|
|
|
— |
|
Interest and dividend receivable |
|
1,774 |
|
|
|
2,217 |
|
Prepaid expenses and other assets |
|
1,369 |
|
|
|
1,965 |
|
Total assets |
|
428,123 |
|
|
|
469,818 |
|
|
|
|
|
||||
Liabilities |
|
|
|
||||
Revolving lines of credit |
|
68,350 |
|
|
|
90,500 |
|
SBA debentures (net of deferred debt issuance costs of |
|
— |
|
|
|
31,900 |
|
Unsecured Notes (net of discounts and deferred debt issuance costs of |
|
178,312 |
|
|
|
177,333 |
|
Interest payable |
|
3,195 |
|
|
|
3,712 |
|
Payable to investment adviser and affiliates |
|
3,145 |
|
|
|
3,556 |
|
Payable for investments purchased |
|
1,802 |
|
|
|
— |
|
Other liabilities |
|
1,094 |
|
|
|
813 |
|
Total liabilities |
|
255,898 |
|
|
|
307,814 |
|
|
|
|
|
||||
Net Assets |
|
|
|
||||
Preferred stock, par value of |
|
— |
|
|
|
— |
|
Common stock, par value of |
|
134 |
|
|
|
134 |
|
Paid-in capital in excess of par |
|
184,912 |
|
|
|
184,841 |
|
Total distributable earnings (accumulated losses) |
|
(12,821 |
) |
|
|
(22,971 |
) |
Total net assets |
|
172,225 |
|
|
|
162,004 |
|
|
|
|
|
||||
Total liabilities and net assets |
$ |
428,123 |
|
|
$ |
469,818 |
|
|
|
|
|
||||
Number of common shares outstanding |
|
13,398,078 |
|
|
|
13,398,078 |
|
Net asset value per share |
$ |
12.85 |
|
|
$ |
12.09 |
|
OFS Capital Corporation and Subsidiaries Consolidated Statements of Operations (Dollar amounts in thousands, except per share data) |
|||||||||||||||
|
(unaudited) |
|
|
|
|
||||||||||
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Investment income |
|
|
|
|
|
|
|
||||||||
Interest income |
$ |
10,474 |
|
|
$ |
12,884 |
|
|
$ |
43,334 |
|
|
$ |
54,669 |
|
Dividend income |
|
843 |
|
|
|
342 |
|
|
|
4,125 |
|
|
|
1,795 |
|
Fee income |
|
331 |
|
|
|
257 |
|
|
|
505 |
|
|
|
479 |
|
Total investment income |
|
11,648 |
|
|
|
13,483 |
|
|
|
47,964 |
|
|
|
56,943 |
|
|
|
|
|
|
|
|
|
||||||||
Expenses |
|
|
|
|
|
|
|
||||||||
Interest expense |
|
3,937 |
|
|
|
4,684 |
|
|
|
16,648 |
|
|
|
19,482 |
|
Base management fees |
|
1,520 |
|
|
|
1,645 |
|
|
|
5,993 |
|
|
|
7,218 |
|
Income Incentive Fee |
|
1,019 |
|
|
|
1,174 |
|
|
|
4,178 |
|
|
|
5,040 |
|
Professional fees |
|
411 |
|
|
|
419 |
|
|
|
1,630 |
|
|
|
1,681 |
|
Administration fees |
|
337 |
|
|
|
379 |
|
|
|
1,521 |
|
|
|
1,680 |
|
Other expenses |
|
348 |
|
|
|
486 |
|
|
|
1,282 |
|
|
|
1,682 |
|
Total expenses |
|
7,572 |
|
|
|
8,787 |
|
|
|
31,252 |
|
|
|
36,783 |
|
Net investment income |
|
4,076 |
|
|
|
4,696 |
|
|
|
16,712 |
|
|
|
20,160 |
|
|
|
|
|
|
|
|
|
||||||||
Net realized and unrealized gain (loss) on investments |
|
|
|
|
|
|
|
||||||||
Net realized loss, net of taxes |
|
(2,499 |
) |
|
|
(1,110 |
) |
|
|
(17,121 |
) |
|
|
(11,405 |
) |
Net unrealized appreciation (depreciation), net of deferred taxes |
|
23,898 |
|
|
|
(7,695 |
) |
|
|
28,851 |
|
|
|
(9,007 |
) |
Net gain (loss) on investments |
|
21,399 |
|
|
|
(8,805 |
) |
|
|
11,730 |
|
|
|
(20,412 |
) |
Loss on extinguishment of debt |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(213 |
) |
Net increase (decrease) in net assets resulting from operations |
$ |
25,475 |
|
|
$ |
(4,109 |
) |
|
$ |
28,442 |
|
|
$ |
(465 |
) |
|
|
|
|
|
|
|
|
||||||||
Net investment income per common share - basic and diluted |
$ |
0.30 |
|
|
$ |
0.35 |
|
|
$ |
1.25 |
|
|
$ |
1.50 |
|
Net increase (decrease) in net assets resulting from operations per common share - basic and diluted |
$ |
1.90 |
|
|
$ |
(0.31 |
) |
|
$ |
2.12 |
|
|
$ |
(0.04 |
) |
Distributions declared per common share |
$ |
0.34 |
|
|
$ |
0.34 |
|
|
$ |
1.36 |
|
|
$ |
1.34 |
|
Basic and diluted weighted-average common shares outstanding |
|
13,398,078 |
|
|
|
13,398,078 |
|
|
|
13,398,078 |
|
|
|
13,398,078 |
|
ABOUT OFS CAPITAL
OFS Capital Corporation is an externally managed, closed-end, non-diversified management investment company that has elected to be regulated as a business development company. OFS Capital’s investment objective is to provide stockholders with both current income and capital appreciation primarily through debt investments and, to a lesser extent, equity investments. OFS Capital invests primarily in privately held middle-market companies in
FORWARD-LOOKING STATEMENTS
Statements in this press release regarding management’s future expectations, beliefs, intentions, goals, strategies, plans or prospects, including statements relating to: OFS Capital’s results of operations, including net investment income, net asset value and net investment gains and losses and the factors that may affect such results; and other factors may constitute forward-looking statements for purposes of the safe harbor protection under applicable securities laws. Forward-looking statements can be identified by terminology such as “anticipate,” “believe,” “could,” “could increase the likelihood,” “estimate,” “expect,” “intend,” “is planned,” “may,” “should,” “will,” “will enable,” “would be expected,” “look forward,” “may provide,” “would” or similar terms, variations of such terms or the negative of those terms. Such forward-looking statements involve known and unknown risks, uncertainties and other factors including those risks, uncertainties and factors referred to in OFS Capital’s Annual Report on Form 10-K for the year ended December 31, 2024 filed with the Securities and Exchange Commission under the section “Risk Factors,” as well as other documents that may be filed by OFS Capital from time to time with the Securities and Exchange Commission. As a result of such risks, uncertainties and factors, actual results may differ materially from any future results, performance or achievements discussed in or implied by the forward-looking statements contained herein. OFS Capital is providing the information in this press release as of this date and assumes no obligations to update the information included in this press release or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
(4) Registration does not imply a certain level of skill or training
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INVESTOR RELATIONS CONTACT:
Steve Altebrando
847-734-2084
investorrelations@ofscapital.com
Source: OFS Capital Corporation