NASDAQ$OFS

Ofs Capital Corp · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

OFS Capital's financial performance was announced for the quarter ended September 30, 2021, revealing an increase in net asset value and a rise in the quarterly cash distribution.

OFS Capital Corporation reported a net investment income of $3.2 million, or $0.24 per common share, for the quarter ended September 30, 2021. The net asset value per common share increased by 5.5% to $14.16. The company's board of directors declared a distribution of $0.25 per share for the fourth quarter of 2021.

  • Net investment income was $3.2 million, or $0.24 per common share.
  • Adjusted net investment income was $3.3 million, or $0.25 per common share.
  • Net asset value per common share increased 5.5% to $14.16.
  • A distribution of $0.25 per share was declared for the fourth quarter of 2021.

Headline financials

Total Revenue

$10.6M

No prior period
EPS (adj)

$0.25

No prior period
Wtd Avg Performing Yield

9.6%

No prior period
NAV per Share

$14.16

No prior period
Net Income

$3.24M

No prior period
Operating Income

$13.2M

No prior period
Cash & Equivalents

$7M

No prior period
Total Assets

$537M

No prior period

Revenue & EPS history

OFS Capital · Revenue · Quarterly

$10.6M

Q3 2021
Beat estimate in 3 of 15 quarters(20%)
ActualEstimate

Forward guidance

Management expressed optimism about the company's positioning and the anticipated benefits of recent financial maneuvers. However, they also acknowledged the potential risks associated with the ongoing COVID-19 pandemic and its possible effects on their portfolio companies and the broader economy.

Tailwinds

  • Management believes the company's portfolio is well positioned for the future.
  • The company increased its quarterly distribution for the fifth consecutive quarter.
  • A seven-year unsecured bond was closed in late October.
  • The company expects to redeem outstanding debt with a higher cost.
  • The October offering extended debt maturities and will help reduce borrowing costs.

Headwinds

  • The COVID-19 pandemic could lead to a prolonged period of world-wide economic downturn.
  • Certain portfolio companies have been, or may continue to be, incentivized to draw on most, if not all, of the unfunded portion of any revolving or delayed draw term loans.
  • An extended period of global supply chain and economic disruption could materially affect our business, results of operations, access to sources of liquidity and financial condition.
  • The company expects to recognize a loss on extinguishment of debt of $0.6 million related to the charge-off of deferred borrowing costs on the redemption of the notes.
  • The company expects to recognize a loss on extinguishment of debt of $1.6 million related to the charge-off of deferred borrowing costs on the redemption of the notes.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2021

Historical avgQ3 2021

+1.2%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-0.6%

Avg return

30 days after

53%

10 / 19 earnings

Positive

+14.2%

Q3 2022

Best reaction

-8.1%

Q4 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.2%-2.0%-14.4%
Q4 2025-3.9%-6.7%-17.9%
Q3 2025-0.1%-26.9%-32.0%
Q1 2025-1.2%-3.1%-6.4%
Q4 2024+4.2%+6.9%+8.6%
Q3 2024-1.0%-2.3%-0.5%
Q2 2024-5.0%-5.3%-4.8%
Q1 2024-2.5%-2.4%+0.6%
Q4 2023-8.1%-8.5%-12.5%
Q3 2023+1.7%+5.5%+9.8%
Q2 2023+0.3%-1.7%+5.0%
Q1 2023+1.1%+3.0%-1.4%
Q4 2022+8.2%+7.7%+4.1%
Q3 2022+14.2%+11.3%+13.0%
Q2 2022-0.1%-2.2%-6.8%
Q1 2022-2.5%-0.9%+2.6%
Q4 2021+9.1%+10.9%+33.1%
Q3 2021+3.4%+0.9%+0.2%
Q4 2020+4.3%+7.0%+7.9%

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