OFS Capital Corporation Announces Third Quarter Financial Results
Declares a
Third Quarter Net Investment Income of
FINANCIAL HIGHLIGHTS
-
Net investment income of
$3.3 million , or$0.34 per share; net investment income again covered the distribution. -
Net investment income was 112% of the distribution for the trailing
12-months ending
September 30, 2016 and exceeded the distribution in each quarter. -
Closed investments totaling $16.7 million in the quarter; as of
November 3, 2016 , closed additional new investments totaling approximately$23.4 million during the fourth quarter of 2016. -
Net asset value per share increased to
$14.67 atSeptember 30, 2016 from$14.46 per share atSeptember 30, 2015 . -
The weighted average yield to fair value of the loan portfolio was
11.88% as of
September 30, 2016 . -
100% of our debt is fixed rate with no maturities until 2022—The
stated weighted average cash interest rate on our
Small Business Administration ("SBA") debentures was 3.18% as ofSeptember 30, 2016 . -
On
October 31, 2016 ,OFS Capital's Board of Directors declared a distribution of$0.34 per share for the fourth quarter of 2016, payable onDecember 30, 2016 to shareholders of record as ofDecember 16, 2016 .
"Our net asset value remains stable and our net investment income
continues to cover our distribution. We believe investments that closed
at the end of the third quarter and the beginning of the fourth quarter
position us for a strong finish to 2016 and start to 2017," said
HIGHLIGHTS
($ in millions, except for per share data)
Portfolio Overview |
At |
|||||
Total assets | $ | 292.2 | ||||
Investment portfolio, at fair value | $ | 259.2 | ||||
Net assets | $ | 142.2 | ||||
Net asset value per share | $ | 14.67 | ||||
Weighted average yield on debt investments (at fair value) |
11.88 |
% |
||||
Quarter ended |
||||||
Operating Results | 2016 | 2015 | ||||
Total investment income | $ | 7.4 | $ | 7.7 | ||
Net investment income | $ | 3.3 | $ | 3.6 | ||
Net investment income per common share, basic and diluted | $ | 0.34 | $ | 0.38 | ||
Net increase in net assets resulting from operations | $ | 2.4 | $ | 1.4 | ||
Quarter ended |
||||||
Portfolio Activity | 2016 | 2015 | ||||
Number of new portfolio companies | 2 | 2 | ||||
Investments in new portfolio companies | $ | 14.5 | $ | 5.0 | ||
Investments in existing portfolio companies | $ | 2.2 | $ | 26.9 | ||
Number of portfolio companies at end of period | 38 | 39 | ||||
PORTFOLIO AND INVESTMENT ACTIVITIES
During the third quarter of 2016,
The total fair value of OFS Capital's investment portfolio was
approximately
As of
RESULTS OF OPERATIONS
Interest Income:
Interest
income decreased by
Dividend Income:
Dividend
income decreased by
Fee Income:
Fee income
decreased by
Expenses
Interest expense increased by
Net gain (loss) on investments
Net gain (loss) on investments consists of the aggregate: (a) realized gains and losses from the sale of debt or equity securities, or the redemption of equity securities; and (b) changes in net unrealized appreciation/depreciation on debt and equity investments. In the period in which a realized gain or loss is recognized, such gain or loss will generally be offset by the reversal of previously recognized unrealized appreciation or depreciation, and the net gain recognized in that period will generally be smaller. The unrealized appreciation or depreciation on debt securities is also reversed when those investments are redeemed or paid off prior to maturity. In such instances, the reversal on unrealized appreciation or depreciation will be reported as a net loss or gain, respectively, and may be partially offset by the acceleration of any premium or discount on the debt security in interest income and any prepayment fees on the debt security in fee income.
We recognized net losses of
We recognized net losses of
We recognized net losses of
LIQUIDITY AND CAPITAL RESOURCES
At
CONFERENCE CALL
TELEPHONE: Dial (877) 510-7674 (Domestic) or (412) 902-4139
(International) approximately 15 minutes prior to the call. A telephone
replay of the conference call will be available through
For more detailed discussion of the financial and other information
included in this press release, please refer to OFS Capital's Form 10-Q
for the quarter ended
|
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Consolidated Balance Sheets | |||||||
(Dollar amounts in thousands, except per share data) | |||||||
|
|
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(unaudited) | |||||||
Assets | |||||||
Investments, at fair value | |||||||
Non-control/non-affiliate investments (amortized cost of |
$ | 164,606 | $ | 177,290 | |||
Affiliate investments (amortized cost of |
68,826 | 66,393 | |||||
Control investments (amortized cost of |
25,737 | 13,613 | |||||
Total investments at fair value (amortized cost of |
259,169 | 257,296 | |||||
Cash and cash equivalents | 27,989 | 32,714 | |||||
Interest receivable | 1,056 | 789 | |||||
Prepaid expenses and other assets | 4,008 | 3,877 | |||||
Total assets | $ | 292,222 | $ | 294,676 | |||
Liabilities | |||||||
SBA debentures (net of deferred debt issuance costs of |
$ | 146,747 | $ | 146,460 | |||
Interest payable | 391 | 1,548 | |||||
Management and incentive fees payable | 1,937 | 2,238 | |||||
Administration fee payable | 366 | 488 | |||||
Accrued professional fees | 423 | 433 | |||||
Other liabilities | 148 | 497 | |||||
Total liabilities | 150,012 | 151,664 | |||||
Commitments and Contingencies | |||||||
Net Assets | |||||||
Preferred stock, par value of |
$ | — | $ | — | |||
Common stock, par value of |
97 | 97 | |||||
Paid-in capital in excess of par | 134,522 | 134,446 | |||||
Accumulated undistributed net investment income | 5,230 | 4,612 | |||||
Accumulated undistributed net realized gain (loss) | 1,346 | (1,184 | ) | ||||
Net unrealized appreciation on investments | 1,015 | 5,041 | |||||
Total net assets | 142,210 | 143,012 | |||||
Total liabilities and net assets | $ | 292,222 | $ | 294,676 | |||
Number of shares outstanding | 9,697,210 | 9,691,170 | |||||
Net asset value per share | $ | 14.67 | $ | 14.76 | |||
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Consolidated Statements of Operations (unaudited) | |||||||||||||||
(Dollar amounts in thousands, except per share data) | |||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||
2016 | 2015 | 2016 |
2015 |
||||||||||||
Investment income | |||||||||||||||
Interest income | |||||||||||||||
Non-control/non-affiliate investments | $ | 4,355 | $ | 5,387 | $ | 13,522 | $ | 17,319 | |||||||
Affiliate investments | 1,643 | 1,308 | 5,000 | 4,062 | |||||||||||
Control investment | 582 | — | 1,413 | — | |||||||||||
Total interest income | 6,580 | 6,695 | 19,935 | 21,381 | |||||||||||
Dividend income | |||||||||||||||
Non-control/non-affiliate investments | 102 | 185 | 264 | 333 | |||||||||||
Affiliate investments | 343 | 406 | 1,166 | 1,016 | |||||||||||
Control investments | 83 | — | 194 | — | |||||||||||
Total dividend income | 528 | 591 | 1,624 | 1,349 | |||||||||||
Fee income | |||||||||||||||
Non-control/non-affiliate investments | 169 | 310 | 1,164 | 448 | |||||||||||
Affiliate investments | 48 | 92 | 87 | 213 | |||||||||||
Control investments | 34 | — | 75 | — | |||||||||||
Total fee income | 251 | 402 | 1,326 | 661 | |||||||||||
Total investment income | 7,359 | 7,688 | 22,885 | 23,391 | |||||||||||
Expenses | |||||||||||||||
Interest expense | 1,320 | 1,185 | 3,936 | 4,000 | |||||||||||
Write-off of deferred debt issuance costs | — | — | — | 1,646 | |||||||||||
Management fees | 1,120 | 1,120 | 3,324 | 4,101 | |||||||||||
Incentive fee | 817 | 908 | 2,407 | 1,514 | |||||||||||
Professional fees | 260 | 262 | 877 | 857 | |||||||||||
Administration fee | 255 | 281 | 1,009 | 1,148 | |||||||||||
General and administrative expenses | 290 | 302 | 923 | 994 | |||||||||||
Total expenses | 4,062 | 4,058 | 12,476 | 14,260 | |||||||||||
Net investment income | 3,297 | 3,630 | 10,409 | 9,131 | |||||||||||
Net gain (loss) on investments | (909 | ) | (2,209 | ) | (1,404 | ) | 2,924 | ||||||||
Net increase in net assets resulting from operations | $ | 2,388 | $ | 1,421 | $ | 9,005 | $ | 12,055 | |||||||
Net investment income per common share - basic and diluted | $ | 0.34 | $ | 0.38 | $ | 1.07 | $ | 0.94 | |||||||
Net increase in net assets resulting from operations per common share - basic and diluted | $ | 0.25 | $ | 0.15 | $ | 0.93 | $ | 1.25 | |||||||
Distributions declared per common share | $ | 0.34 | $ | 0.34 | $ | 1.02 | $ | 1.02 | |||||||
Basic and diluted weighted average shares outstanding | 9,694,353 | 9,675,930 | 9,692,634 | 9,663,418 | |||||||||||
ABOUT
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; OFS Capital's expectations regarding performance during the
remainder of 2016 and into 2017; management's belief regarding the
sufficiency of capital to continue with OFS Capital's investment
strategy 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
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INVESTOR RELATIONS:
saltebrando@ofsmanagement.com
Source:
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