Fri, Aug 2, 10:01 AM (88 days ago)
OFS Capital Corporation's Form 10-Q for the quarter ended June 30, 2024, reveals a decrease in total assets from $469.8 million as of December 31, 2023, to $407.9 million as of June 30, 2024. The reduction is attributed to lower investment values and cash balances. The company's net asset value (NAV) per share decreased from $12.09 to $11.51 over the same period. Investment income declined to $11.2 million from $14.5 million in the same quarter last year, while total expenses decreased to $7.7 million from $9.4 million. Net investment income stood at $3.4 million, down from $5.1 million. The company reported a net gain on investments of $6.9 million, driven by unrealized appreciation, primarily in equity investments. However, the six-month figures show a net loss on investments of $7.8 million. OFS Capital's total debt decreased to $249.1 million from $299.7 million, with a significant repayment of SBA debentures. The company maintained compliance with all debt covenants and had an asset coverage ratio of 162%, above the 150% requirement. Unused commitments under credit facilities totaled $105.9 million. The company declared a $0.34 per share distribution for Q3 2024. Future operations may be impacted by market volatility, interest rate changes, and geopolitical uncertainties.