NASDAQ:OXSQ Oxford Square Capital Q3 2023 Earnings Report $2.46 0.00 (0.00%) Closing price 04:00 PM EasternExtended Trading$2.48 +0.02 (+1.02%) As of 04:42 PM Eastern Extended trading is trading that happens on electronic markets outside of regular trading hours. This is a fair market value extended hours price provided by Polygon.io. Learn more. Earnings History Oxford Square Capital EPS ResultsActual EPS$0.11Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/AOxford Square Capital Revenue ResultsActual Revenue$13.05 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/AOxford Square Capital Announcement DetailsQuarterQ3 2023Date11/7/2023TimeN/AConference Call DateTuesday, November 7, 2023Conference Call Time9:00AM ETConference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Quarterly Report (10-Q)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Oxford Square Capital Q3 2023 Earnings Call TranscriptProvided by QuartrNovember 7, 2023 ShareLink copied to clipboard.There are 4 speakers on the call. Operator00:00:00Good morning, ladies and gentlemen. Welcome to the Oxford Square Capital Corp Third Quarter 2023 Earnings Conference Call. My name is Jig Vida. I will be the moderator for today's call. All lines will be muted on the presentation portion of the call with an opportunity for questions and answers at the end. Operator00:00:23I would now like to pass the conference over to your host, Jonathan Cowen With Jonathan, please go ahead CEO, please go ahead. Speaker 100:00:33Good morning, everyone. Welcome to the Oxford Square Capital Corp. 3rd quarter 2023 earnings conference call. I'm joined today by Saul Rosenthal, our President Bruce Rubin, our Chief Financial Officer and Kevin Yonon, our Managing Director and Portfolio Manager. Bruce, could you open the call with a disclosure regarding forward looking statements? Speaker 100:00:51Sure, Jonathan. Today's conference call Speaker 200:00:53is being recorded. An audio replay of the conference call will be available for 30 days. Replay information is included in our press release that was issued earlier this morning. Please note that this call is the property of Oxford Square Capital Corp. Any unauthorized rebroadcast of this call in any form is strictly prohibited. Speaker 200:01:09At this point, please direct your attention to the customary disclosure in this morning's press release regarding forward looking information. Today's conference call includes forward looking We do not undertake to update our forward looking statements unless required to do so by law. To obtain copies of our latest SEC filings, please visit our website at www Speaker 100:01:49Oxford Square's net investment income was approximately $6,400,000 or $0.11 per share compared to $6,700,000 or $0.13 per share for the prior quarter. Our net asset value per share stood at $2.78 Compared to a net asset value per share of $2.88 for the prior quarter. During the quarter, we distributed $0.225 per share, which included $0.12 per share of special distributions. For the Q3, we recorded Total investment income of approximately $13,000,000 as compared to approximately $13,500,000 in the prior quarter. In the Q3, we recorded net unrealized appreciation on investments of approximately $13,900,000 or $0.28 per share compared to net unrealized appreciation on investments of approximately $8,300,000 or $0.16 per share for the prior quarter. Speaker 100:02:54In the Q3, we recorded realized losses of approximately $13,600,000 or $0.24 per share. We recorded realized losses on investments of approximately $3,300,000 or $0.07 per share in the prior quarter. During the Q3, our investment activity consisted of sales of approximately $1,900,000 and repayments of approximately $14,200,000 No purchases were affected during the quarter. As of September 30, we held cash and cash equivalents of approximately $12,400,000 Subsequent to quarter end, on November 3, we redeemed $7,000,000 of the $14,400,000 An aggregate principal amount of issued and outstanding 20 24 6.5 percent notes. During the quarter ended September, we issued a total of approximately 1,400,000 shares of our common stock pursuant to an at the market offering, resulting in net proceeds of approximately $4,400,000 and net appreciation to shareholders of approximately $0.01 per share of NAV for the quarter. Speaker 100:04:14On November 2nd, our Board of Directors declared monthly distributions of $0.035 per share for each of the months ending January, February March of 2024. Additional information regarding record and payment dates can be found in our press release that was issued this morning. With that, I'll turn the call over to our Portfolio Manager, Kevin Yonon. Speaker 300:04:37Thank you, Jonathan. During the quarter ended September 30, 2023, U. S. Loan market performance improved versus the prior quarter. U. Speaker 300:04:45S. Loan prices As defined by the Morningstar LSTA U. S. Leverage Loan Index increased from 94.24 percent of par as of June 30 to 95.55 percent par as of September 29. According to LCD, during the quarter, there were some pricing dispersion With BB rated loan prices increasing 56 basis points or 0.57 percent, B rated loan prices 142 basis points or 1.49 percent and CCC rate loan prices increasing 145 basis points or 1.84% on average. Speaker 300:05:18The 12 month trailing default rate for the Morningstar LSTA U. S. Leveraged Loan Index decreased to 1.27 percent by principal amount at the end of the quarter from 1.71% at the end of June 2023. Additionally, the distress ratio defined as the percentage of loans with a price below 80% to par ended the quarter at 4.36% compared to approximately 6% at the end of June 2023. During the quarter ended September 30, 2023, U. Speaker 300:05:49S. Leverage loan primary market issuance was $70,700,000,000 representing a 2 37% increase versus This was driven by refinancing and M and A activity, while LBO activity remained relatively slow. Speaker 200:06:06At the Speaker 300:06:06same time, U. S. Loan fund inflows as measured by Lipper were approximately $500,000,000 for the quarter ended September 30, 20 designed to maximize our long term total return. And as a permanent capital vehicle, we historically have been able to take a longer term view towards our investment strategy. With that, I will turn the call back over to Jonathan. Speaker 100:06:33Thanks, Kevin. Additional information about Oxford Square's 3rd quarter performance has been posted to our website at www.oxfordsquarecapital.com. And with that, operator, we're happy to open the call up for any questions. Operator00:06:50Absolutely. There are no questions waiting at this time. So I would now like to pass the conference back over to the management team for closing remarks. Speaker 100:07:36Thanks very much. We'd like to thank everyone for their participation on this call or listening to the replay. Operator00:07:49That concludes today's conference call. Thank you for your participation. You may now disconnect your lines.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallOxford Square Capital Q3 202300:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K)Quarterly report(10-Q) Oxford Square Capital Earnings HeadlinesOxford Square Capital (NASDAQ:OXSQ) Lowered to Sell Rating by StockNews.comMay 6 at 1:17 AM | americanbankingnews.com4 Stocks Paying 14% Ultra-High-Yield Monthly Dividends Deliver Huge Passive Income StreamsMay 4 at 6:43 AM | 247wallst.com3..2..1.. AI 2.0 ignition (don’t sleep on this)I just put together an urgent new presentation that you need to see right away. In short: I believe we are mere days away from a critical announcement from a key tech leader… One that will officially ignite “AI 2.0” – and potentially send a whole new class of stocks soaring. May 6, 2025 | Timothy Sykes (Ad)StockNews.com Upgrades Oxford Square Capital (NASDAQ:OXSQ) to HoldApril 28, 2025 | americanbankingnews.comOxford Square Capital Corp. (NASDAQ:OXSQ) Q1 2025 Earnings Call TranscriptApril 27, 2025 | insidermonkey.comOxford Square Capital reports Q1 NII 9c vs. 9c last quarterApril 26, 2025 | markets.businessinsider.comSee More Oxford Square Capital Headlines Get Earnings Announcements in your inboxWant to stay updated on the latest earnings announcements and upcoming reports for companies like Oxford Square Capital? Sign up for Earnings360's daily newsletter to receive timely earnings updates on Oxford Square Capital and other key companies, straight to your email. Email Address About Oxford Square CapitalOxford Square Capital (NASDAQ:OXSQ) is a business development company, operates as a closed-end, non-diversified management investment company. It is a private equity and mezzanine firm. The firm invests in both public and private companies. It invests in secured and unsecured senior debt, subordinated debt, junior subordinated debt, preferred stock, common stock and syndicated bank loans. The firm primarily invests in debt and/or equity securities of technology-related companies that operate in the computer software, Internet, information technology infrastructure and services, media, telecommunications and telecommunications equipment, semiconductors, hardware, technology-enabled services, semiconductor capital equipment, medical device technology, diversified technology, and networking systems sectors. It concentrates its investments in companies having annual revenues of less than $200 million and a market capitalization or enterprise value of less than $300 million. The firm invests between $5 million and $30 million per transaction. It seeks to exit its investments within 7 years. It serves as the investment adviser to TICC. Oxford Square Capital Corp., formerly known as TICC Capital Corp., was founded in 2003 and is headquartered in Greenwich, Connecticut.View Oxford Square Capital ProfileRead more More Earnings Resources from MarketBeat Earnings Tools Today's Earnings Tomorrow's Earnings Next Week's Earnings Upcoming Earnings Calls Earnings Newsletter Earnings Call Transcripts Earnings Beats & Misses Corporate Guidance Earnings Screener Earnings By Country U.S. Earnings Reports Canadian Earnings Reports U.K. Earnings Reports Latest Articles Palantir Stock Drops Despite Stellar Earnings: What's Next?Is Eli Lilly a Buy After Weak Earnings and CVS-Novo Partnership?Is Reddit Stock a Buy, Sell, or Hold After Earnings Release?Warning or Opportunity After Super Micro Computer's EarningsAmazon Earnings: 2 Reasons to Love It, 1 Reason to Be CautiousRocket Lab Braces for Q1 Earnings Amid Soaring ExpectationsMeta Takes A Bow With Q1 Earnings - Watch For Tariff Impact in Q2 Upcoming Earnings ARM (5/7/2025)AppLovin (5/7/2025)Fortinet (5/7/2025)MercadoLibre (5/7/2025)Cencora (5/7/2025)Carvana (5/7/2025)Walt Disney (5/7/2025)Emerson Electric (5/7/2025)Johnson Controls International (5/7/2025)Lloyds Banking Group (5/7/2025) Get 30 Days of MarketBeat All Access for Free Sign up for MarketBeat All Access to gain access to MarketBeat's full suite of research tools. 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There are 4 speakers on the call. Operator00:00:00Good morning, ladies and gentlemen. Welcome to the Oxford Square Capital Corp Third Quarter 2023 Earnings Conference Call. My name is Jig Vida. I will be the moderator for today's call. All lines will be muted on the presentation portion of the call with an opportunity for questions and answers at the end. Operator00:00:23I would now like to pass the conference over to your host, Jonathan Cowen With Jonathan, please go ahead CEO, please go ahead. Speaker 100:00:33Good morning, everyone. Welcome to the Oxford Square Capital Corp. 3rd quarter 2023 earnings conference call. I'm joined today by Saul Rosenthal, our President Bruce Rubin, our Chief Financial Officer and Kevin Yonon, our Managing Director and Portfolio Manager. Bruce, could you open the call with a disclosure regarding forward looking statements? Speaker 100:00:51Sure, Jonathan. Today's conference call Speaker 200:00:53is being recorded. An audio replay of the conference call will be available for 30 days. Replay information is included in our press release that was issued earlier this morning. Please note that this call is the property of Oxford Square Capital Corp. Any unauthorized rebroadcast of this call in any form is strictly prohibited. Speaker 200:01:09At this point, please direct your attention to the customary disclosure in this morning's press release regarding forward looking information. Today's conference call includes forward looking We do not undertake to update our forward looking statements unless required to do so by law. To obtain copies of our latest SEC filings, please visit our website at www Speaker 100:01:49Oxford Square's net investment income was approximately $6,400,000 or $0.11 per share compared to $6,700,000 or $0.13 per share for the prior quarter. Our net asset value per share stood at $2.78 Compared to a net asset value per share of $2.88 for the prior quarter. During the quarter, we distributed $0.225 per share, which included $0.12 per share of special distributions. For the Q3, we recorded Total investment income of approximately $13,000,000 as compared to approximately $13,500,000 in the prior quarter. In the Q3, we recorded net unrealized appreciation on investments of approximately $13,900,000 or $0.28 per share compared to net unrealized appreciation on investments of approximately $8,300,000 or $0.16 per share for the prior quarter. Speaker 100:02:54In the Q3, we recorded realized losses of approximately $13,600,000 or $0.24 per share. We recorded realized losses on investments of approximately $3,300,000 or $0.07 per share in the prior quarter. During the Q3, our investment activity consisted of sales of approximately $1,900,000 and repayments of approximately $14,200,000 No purchases were affected during the quarter. As of September 30, we held cash and cash equivalents of approximately $12,400,000 Subsequent to quarter end, on November 3, we redeemed $7,000,000 of the $14,400,000 An aggregate principal amount of issued and outstanding 20 24 6.5 percent notes. During the quarter ended September, we issued a total of approximately 1,400,000 shares of our common stock pursuant to an at the market offering, resulting in net proceeds of approximately $4,400,000 and net appreciation to shareholders of approximately $0.01 per share of NAV for the quarter. Speaker 100:04:14On November 2nd, our Board of Directors declared monthly distributions of $0.035 per share for each of the months ending January, February March of 2024. Additional information regarding record and payment dates can be found in our press release that was issued this morning. With that, I'll turn the call over to our Portfolio Manager, Kevin Yonon. Speaker 300:04:37Thank you, Jonathan. During the quarter ended September 30, 2023, U. S. Loan market performance improved versus the prior quarter. U. Speaker 300:04:45S. Loan prices As defined by the Morningstar LSTA U. S. Leverage Loan Index increased from 94.24 percent of par as of June 30 to 95.55 percent par as of September 29. According to LCD, during the quarter, there were some pricing dispersion With BB rated loan prices increasing 56 basis points or 0.57 percent, B rated loan prices 142 basis points or 1.49 percent and CCC rate loan prices increasing 145 basis points or 1.84% on average. Speaker 300:05:18The 12 month trailing default rate for the Morningstar LSTA U. S. Leveraged Loan Index decreased to 1.27 percent by principal amount at the end of the quarter from 1.71% at the end of June 2023. Additionally, the distress ratio defined as the percentage of loans with a price below 80% to par ended the quarter at 4.36% compared to approximately 6% at the end of June 2023. During the quarter ended September 30, 2023, U. Speaker 300:05:49S. Leverage loan primary market issuance was $70,700,000,000 representing a 2 37% increase versus This was driven by refinancing and M and A activity, while LBO activity remained relatively slow. Speaker 200:06:06At the Speaker 300:06:06same time, U. S. Loan fund inflows as measured by Lipper were approximately $500,000,000 for the quarter ended September 30, 20 designed to maximize our long term total return. And as a permanent capital vehicle, we historically have been able to take a longer term view towards our investment strategy. With that, I will turn the call back over to Jonathan. Speaker 100:06:33Thanks, Kevin. Additional information about Oxford Square's 3rd quarter performance has been posted to our website at www.oxfordsquarecapital.com. And with that, operator, we're happy to open the call up for any questions. Operator00:06:50Absolutely. There are no questions waiting at this time. So I would now like to pass the conference back over to the management team for closing remarks. Speaker 100:07:36Thanks very much. We'd like to thank everyone for their participation on this call or listening to the replay. Operator00:07:49That concludes today's conference call. Thank you for your participation. You may now disconnect your lines.Read morePowered by