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OFS Capital(OFS) - 2024 Q4 - Annual Results
OFSOFS Capital(OFS)2025-03-03 21:33

Financial Performance - Net investment income increased to 0.30percommonshareforQ42024,upfrom0.30 per common share for Q4 2024, up from 0.27 in Q3 2024[5] - Net gain on investments was 1.60percommonshareforQ42024,primarilyduetonetunrealizedappreciationof1.60 per common share for Q4 2024, primarily due to net unrealized appreciation of 1.79 per common share[5] - Total investment income for Q4 2024 was 11.648million,anincreaseof11.648 million, an increase of 0.7 million from Q3 2024[12] - For the three months ended December 31, 2024, total investment income was 11,648,000,adecreaseof6.211,648,000, a decrease of 6.2% from 13,483,000 in the same period of 2023[22] - Net investment income for the year ended December 31, 2024, was 16,712,000,down17.916,712,000, down 17.9% from 20,160,000 in 2023[22] - The net investment income per common share for the year ended December 31, 2024, was 1.25,downfrom1.25, down from 1.50 in 2023[22] - Distributions declared per common share remained stable at 0.34forboththethreemonthsendedDecember31,2024,and2023[22]AssetandInvestmentOverview−Netassetvaluepercommonshareroseto0.34 for both the three months ended December 31, 2024, and 2023[22] Asset and Investment Overview - Net asset value per common share rose to 12.85 at December 31, 2024, compared to 11.29atSeptember30,2024[5]−Totalinvestmentsatfairvaluewere11.29 at September 30, 2024[5] - Total investments at fair value were 409.7 million, approximately 113% of amortized cost[11] - The investment portfolio included 224.2millionindebtinvestments,with85224.2 million in debt investments, with 85% as first lien loans[11] - Cash and cash equivalents totaled 6.1 million as of December 31, 2024[16] Debt and Liabilities - Outstanding debt was 248.4millionasofDecember31,2024,withaweighted−averageeffectiveinterestrateof6.30248.4 million as of December 31, 2024, with a weighted-average effective interest rate of 6.30%[9] Gains and Losses - The net realized loss for the year ended December 31, 2024, was 17,121,000, compared to a loss of 11,405,000in2023,indicatingasignificantincreaseinlosses[22]−NetunrealizedappreciationfortheyearendedDecember31,2024,was11,405,000 in 2023, indicating a significant increase in losses[22] - Net unrealized appreciation for the year ended December 31, 2024, was 28,851,000, a recovery from a depreciation of 9,007,000in2023[22]−ThenetincreaseinnetassetsresultingfromoperationsforthethreemonthsendedDecember31,2024,was9,007,000 in 2023[22] - The net increase in net assets resulting from operations for the three months ended December 31, 2024, was 25,475,000, compared to a decrease of 4,109,000inthesameperiodof2023[22]CompanyStrategyandManagement−OFSCapitalprimarilytargetsinvestmentsof4,109,000 in the same period of 2023[22] Company Strategy and Management - OFS Capital primarily targets investments of 3 million to 20millioninprivatelyheldmiddle−marketcompanieswithannualEBITDAbetween20 million in privately held middle-market companies with annual EBITDA between 5 million and $50 million[23] - The company is externally managed by OFS Capital Management, LLC, which is registered under the Investment Advisers Act of 1940[23] Forward-Looking Statements - Forward-looking statements indicate that actual results may differ materially from expectations due to various risks and uncertainties[24]