NASDAQ:OXSQ Oxford Square Capital Q4 2023 Earnings Report $2.46 0.00 (0.00%) Closing price 05/6/2025 04:00 PM EasternExtended Trading$2.49 +0.03 (+1.22%) As of 05/6/2025 07:57 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$0.13Consensus EPS N/ABeat/MissN/AOne Year Ago EPSN/AOxford Square Capital Revenue ResultsActual Revenue$12.32 millionExpected RevenueN/ABeat/MissN/AYoY Revenue GrowthN/AOxford Square Capital Announcement DetailsQuarterQ4 2023Date3/15/2024TimeN/AConference Call DateFriday, March 15, 2024Conference Call Time9:00AM ETConference Call ResourcesConference Call AudioConference Call TranscriptSlide DeckPress Release (8-K)Annual Report (10-K)Earnings HistoryCompany ProfileSlide DeckFull Screen Slide DeckPowered by Oxford Square Capital Q4 2023 Earnings Call TranscriptProvided by QuartrMarch 15, 2024 ShareLink copied to clipboard.There are 4 speakers on the call. Operator00:00:00Good morning, all. I would like to welcome you all to the Oxford Square Capital Corp. 4th Quarter 2023 Earnings Call. My name is Brika, and I will be your moderator for today's call. All lines are on mute for the presentation portion of the call with an opportunity for questions and answers at the end. Operator00:00:35I would now like to pass the conference over to your host, Chief Executive Officer of Oxford Square Capital Corp, Jonathan Cohen, to begin. So Jonathan, please go ahead. Speaker 100:00:48Good morning, everyone. Welcome to the Oxford Square Capital Corp. 4th quarter 2023 earnings conference call. I'm joined today by Bruce Rubin, Chief Financial Officer Kevin Yonan, our Managing Director and Portfolio Manager and Jeff Fianza, our Senior Accounting Manager. Jeff, could you open the call with a disclosure regarding forward looking statements? Speaker 200:01:07Thank you, Jonathan. Today's conference call is 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 this morning. Please note that this call is the property of Oxford Square Capital Corp. Speaker 200:01:22Any unauthorized rebroadcast of this call in any form is strictly prohibited. At 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 statements and projections that reflect the company's current views with respect to, among other things, future events and financial performance. We ask that you refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from those indicated in those projections. We do not undertake to update our forward looking statements unless required to do so above all. Speaker 200:01:57To obtain copies of our latest SEC filings, please visit our website at www.oxfordsquarecapital.com. With that, I will turn the presentation back over to Jonathan. Speaker 100:02:07Thank you, Jeff. For the quarter ended December, Oxford Square's net investment income was approximately $7,800,000 or $0.13 per share compared with $6,400,000 or $0.11 per share for the prior quarter. Our net asset value per share stood at $2.55 compared to a net asset value per share of $2.78 for the prior quarter. During the quarter, we distributed $0.105 per share. For the Q4, we recorded total investment income of approximately $12,300,000 as compared to approximately $13,000,000 in the prior quarter. Speaker 100:02:49In the Q4, we recorded net unrealized depreciation on investments of approximately $14,800,000 or $0.25 per share compared to net unrealized appreciation on investments of approximately $13,900,000 or $0.24 per share in the prior quarter. In the Q4, we recorded realized losses of approximately $270,000 For the prior quarter, we recorded realized losses on investments Operator00:03:20of Speaker 100:03:24of approximately $3,700,000 repayments and repayments of approximately $800,000 We made purchases of approximately $3,500,000 during the quarter ended December for that period. During the quarter, we issued a total of approximately 1,300,000 shares of our common stock pursuant to an at the market offering, resulting in net proceeds of approximately $3,700,000 On March 14, 2024, our Board of Directors declared monthly distributions of $0.035 per share for each of the months ending April, May June of 2024. We note that additional details regarding record of payment data information 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. Kevin? Speaker 300:04:19Thank you, Jonathan. During the quarter ended December 31, 2023, U. S. Loan market performance improved versus the prior quarter. U. Speaker 300:04:28S. Loan prices, as defined by the Morningstar LSTA U. S. Leveraged Loan Index, increased from 95.55 percent of par as of September 29 to 96.21 percent of par as of December 29. According to LCD, during the quarter, there was some pricing dispersion with BB rated loan prices increasing 56 basis points or 0.57 percent, B rated loan prices increasing 98 basis points or 1.01 percent and CCC rated loan prices decreasing 56 basis points or 0.7% on average. Speaker 300:05:02The 12 month trailing default rate for the Morningstar LSTA U. S. Leveraged Loan Index increased to 1.53% by principal amount at the end of the quarter from 1.2% at the end of September 2023. Additionally, the distress ratio, defined as a percentage of loans with a price below 80 percent of par, ended the quarter at 4.54% compared to 4.36% at the end of September 2023. During the quarter ended December 31, 2023, U. Speaker 300:05:30S. Leverage loan primary market issuance was $55,300,000,000 representing a 68% increase versus the quarter ended December 31, 2022. This was driven by refinancing activity, while both M and A and LVO activity remained relatively slow. At the same time, U. S. Speaker 300:05:49Loan fund outflows, as measured by Lipper, were approximately $500,000,000 for the quarter ended December 31, 2023, while outflows were approximately 14 point $3,000,000,000 for the year ended December 31, 2023. We continue to focus on portfolio management strategies designed to maximize our long term total return. 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 Speaker 100:06:15the call back over to Jonathan. Thanks very much, Kevin. Additional information about Oxford Square's 4th quarter performance has been posted to our website atwww.oxfordsquarecapital.com. With that, operator, we're happy to open the call up for any questions. Operator00:06:35Thank you. We will now begin the Q and A session. We have a question on the line from Roy Josephson. Your line is now open. Speaker 100:07:27What can you tell us about the new non accrual status investment? Certainly. Thank you very much for your question. The non accrual is related to an investment in a private company, where we're not unfortunately allowed to disclose any further details beyond what's in the press release. Thank you. Speaker 100:07:59Thank you very much. Operator00:08:17I would like to hand it back to Jonathan Cohen for any final remarks. Speaker 100:08:23Thank you very much. We'd like to thank everyone for their interest and for their participation on this call. We look forward to speaking to you again very soon. Thanks very much. Operator00:08:37Thank you all for joining today's conference call with Oxford Square Capital Corp. Please enjoy the rest of your day and you may now disconnect your lines.Read morePowered by Conference Call Audio Live Call not available Earnings Conference CallOxford Square Capital Q4 202300:00 / 00:00Speed:1x1.25x1.5x2x Earnings DocumentsSlide DeckPress Release(8-K)Annual report(10-K) 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.comTrump’s Bitcoin Reserve is No Accident…Bryce Paul believes this is the #1 coin to buy right now The catalyst behind this surge is a massive new blockchain development…May 7, 2025 | Crypto 101 Media (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, all. I would like to welcome you all to the Oxford Square Capital Corp. 4th Quarter 2023 Earnings Call. My name is Brika, and I will be your moderator for today's call. All lines are on mute for the presentation portion of the call with an opportunity for questions and answers at the end. Operator00:00:35I would now like to pass the conference over to your host, Chief Executive Officer of Oxford Square Capital Corp, Jonathan Cohen, to begin. So Jonathan, please go ahead. Speaker 100:00:48Good morning, everyone. Welcome to the Oxford Square Capital Corp. 4th quarter 2023 earnings conference call. I'm joined today by Bruce Rubin, Chief Financial Officer Kevin Yonan, our Managing Director and Portfolio Manager and Jeff Fianza, our Senior Accounting Manager. Jeff, could you open the call with a disclosure regarding forward looking statements? Speaker 200:01:07Thank you, Jonathan. Today's conference call is 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 this morning. Please note that this call is the property of Oxford Square Capital Corp. Speaker 200:01:22Any unauthorized rebroadcast of this call in any form is strictly prohibited. At 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 statements and projections that reflect the company's current views with respect to, among other things, future events and financial performance. We ask that you refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from those indicated in those projections. We do not undertake to update our forward looking statements unless required to do so above all. Speaker 200:01:57To obtain copies of our latest SEC filings, please visit our website at www.oxfordsquarecapital.com. With that, I will turn the presentation back over to Jonathan. Speaker 100:02:07Thank you, Jeff. For the quarter ended December, Oxford Square's net investment income was approximately $7,800,000 or $0.13 per share compared with $6,400,000 or $0.11 per share for the prior quarter. Our net asset value per share stood at $2.55 compared to a net asset value per share of $2.78 for the prior quarter. During the quarter, we distributed $0.105 per share. For the Q4, we recorded total investment income of approximately $12,300,000 as compared to approximately $13,000,000 in the prior quarter. Speaker 100:02:49In the Q4, we recorded net unrealized depreciation on investments of approximately $14,800,000 or $0.25 per share compared to net unrealized appreciation on investments of approximately $13,900,000 or $0.24 per share in the prior quarter. In the Q4, we recorded realized losses of approximately $270,000 For the prior quarter, we recorded realized losses on investments Operator00:03:20of Speaker 100:03:24of approximately $3,700,000 repayments and repayments of approximately $800,000 We made purchases of approximately $3,500,000 during the quarter ended December for that period. During the quarter, we issued a total of approximately 1,300,000 shares of our common stock pursuant to an at the market offering, resulting in net proceeds of approximately $3,700,000 On March 14, 2024, our Board of Directors declared monthly distributions of $0.035 per share for each of the months ending April, May June of 2024. We note that additional details regarding record of payment data information 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. Kevin? Speaker 300:04:19Thank you, Jonathan. During the quarter ended December 31, 2023, U. S. Loan market performance improved versus the prior quarter. U. Speaker 300:04:28S. Loan prices, as defined by the Morningstar LSTA U. S. Leveraged Loan Index, increased from 95.55 percent of par as of September 29 to 96.21 percent of par as of December 29. According to LCD, during the quarter, there was some pricing dispersion with BB rated loan prices increasing 56 basis points or 0.57 percent, B rated loan prices increasing 98 basis points or 1.01 percent and CCC rated loan prices decreasing 56 basis points or 0.7% on average. Speaker 300:05:02The 12 month trailing default rate for the Morningstar LSTA U. S. Leveraged Loan Index increased to 1.53% by principal amount at the end of the quarter from 1.2% at the end of September 2023. Additionally, the distress ratio, defined as a percentage of loans with a price below 80 percent of par, ended the quarter at 4.54% compared to 4.36% at the end of September 2023. During the quarter ended December 31, 2023, U. Speaker 300:05:30S. Leverage loan primary market issuance was $55,300,000,000 representing a 68% increase versus the quarter ended December 31, 2022. This was driven by refinancing activity, while both M and A and LVO activity remained relatively slow. At the same time, U. S. Speaker 300:05:49Loan fund outflows, as measured by Lipper, were approximately $500,000,000 for the quarter ended December 31, 2023, while outflows were approximately 14 point $3,000,000,000 for the year ended December 31, 2023. We continue to focus on portfolio management strategies designed to maximize our long term total return. 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 Speaker 100:06:15the call back over to Jonathan. Thanks very much, Kevin. Additional information about Oxford Square's 4th quarter performance has been posted to our website atwww.oxfordsquarecapital.com. With that, operator, we're happy to open the call up for any questions. Operator00:06:35Thank you. We will now begin the Q and A session. We have a question on the line from Roy Josephson. Your line is now open. Speaker 100:07:27What can you tell us about the new non accrual status investment? Certainly. Thank you very much for your question. The non accrual is related to an investment in a private company, where we're not unfortunately allowed to disclose any further details beyond what's in the press release. Thank you. Speaker 100:07:59Thank you very much. Operator00:08:17I would like to hand it back to Jonathan Cohen for any final remarks. Speaker 100:08:23Thank you very much. We'd like to thank everyone for their interest and for their participation on this call. We look forward to speaking to you again very soon. Thanks very much. Operator00:08:37Thank you all for joining today's conference call with Oxford Square Capital Corp. Please enjoy the rest of your day and you may now disconnect your lines.Read morePowered by