Oxford Square Capital Corp. Announces Net Asset Value and Selected Financial Results for the Quarter Ended September 30, 2019...
October 30 2019 - 7:00AM
Oxford Square Capital Corp. (NasdaqGS: OXSQ) (NasdaqGS: OXSQL)
(NasdaqGS: OXSQZ) (“OXSQ,” the “Company,” “we,” “us” or “our”)
announced today its financial results and related information for
the quarter ended September 30, 2019.
- As of September 30, 2019, net asset value (“NAV”) per share was
$5.42, compared with the NAV per share of $6.31 at the prior
quarter end.
◊ For the quarter ended September 30,
2019 we recorded GAAP net investment income of approximately $8.9
million, or $0.19 per share, compared to $12.8 million, or $0.27
per share for the quarter ended June 30, 2019.◊ We recorded
net realized losses of approximately $0.4 million and net
unrealized depreciation of approximately $41.6 million for the
quarter ended September 30, 2019.◊ In total, we had a net decrease
in net assets resulting from operations of approximately $33.1
million, or $0.69 per share, for the quarter ended September 30,
2019, compared with a net decrease in net assets resulting from
operations of $7.5 million, or $0.16 per share, for the quarter
ended June 30, 2019.
- Total investment income for the third quarter of 2019 amounted
to approximately $14.1 million, which represents a decrease of
approximately $6.8 million from the second quarter of 2019. This
decrease primarily reflects the one-time recognition of
payment-in-kind cumulative dividends associated with a preferred
equity position of $5.7 million in the second quarter of 2019.
- For the quarter ended September 30, 2019, we recorded
investment income from our portfolio as follows:
◊ $7.1 million from our debt
investments,◊ $6.1 million from our collateralized loan obligation
(“CLO”) equity investments,◊ $0.7 million of dividend income – PIK
from affiliated investments, and◊ $0.2 million from all other
sources.
- Our total expenses for the quarter ended September 30, 2019
were approximately $5.1 million, which represents a decrease of
approximately $3.0 million from the second quarter of 2019 due
primarily to a decrease in net investment income incentive
fees.
- During the third quarter of 2019, we received, or were entitled
to receive, proceeds of approximately $4.9 million from sales of
senior secured loans, and $0.2 million from repayments and
amortization payments on our debt investments.
- As of September 30, 2019, the following metrics applied (note
that none of these values represent a total return to
shareholders):
◊ The weighted average yield of our
debt investments was 9.7% at current cost, compared with 10.0% as
of June 30, 2019.◊ The weighted average effective yield of our
CLO equity investments at current cost was 11.9%, compared with
13.1% as of June 30, 2019.◊ The weighted
average cash distribution yield of our CLO equity investments at
current cost was 19.9% which was approximately equal to the yield
as of June 30, 2019.
- Our weighted average credit rating on a fair value basis was
2.2 at the end of the third quarter of 2019, unchanged from June
30, 2019.
- As of September 30, 2019, we had one debt investment on
non-accrual status with a fair value of $2.4 million.
- On October 18, 2019, we entered into a $10 million repurchase
transaction facility with Nomura Securities International, Inc.,
which the Company may use for working capital purposes.
- On October 25, 2019 our Board of Directors declared the
following distributions on our common stock:
Month Ending |
Record Date |
Payment Date |
Amount Per Share |
January 31, 2020 |
January 17, 2020 |
January 31, 2020 |
$0.067 |
February 29, 2020 |
February 14, 2020 |
February 28, 2020 |
$0.067 |
March 31, 2020 |
March 17, 2020 |
March 31, 2020 |
$0.067 |
We will host a conference call to discuss our third quarter
results today, Wednesday, October 30, 2019 at 9:00 AM ET. Please
call 1-888-339-0740 to participate. A recording of the conference
call will be available for replay for approximately 30 days
following the call. The replay number is 1-877-344-7529, and the
replay passcode is 10136497.
A presentation containing further detail regarding our quarterly
results of operations has been posted under the Investor Relations
section of our website at www.oxfordsquarecapital.com.
OXFORD SQUARE CAPITAL
CORP.
CONSOLIDATED STATEMENTS OF ASSETS
AND LIABILITIES
|
|
September 30, 2019 |
|
December 31, 2018 |
|
|
(unaudited) |
|
|
ASSETS |
|
|
|
|
|
|
|
|
Non-affiliated/non-control investments (cost: $488,820,703 and
$486,232,755, respectively) |
|
$ |
390,882,949 |
|
|
$ |
430,496,633 |
|
Affiliated investments (cost: $16,135,609 and $9,126,017,
respectively) |
|
|
7,492,143 |
|
|
|
14,492,197 |
|
Cash equivalents |
|
|
8,940,270 |
|
|
|
13,905,059 |
|
Restricted cash |
|
|
2,533,069 |
|
|
|
3,175,805 |
|
Interest and distributions receivable |
|
|
5,290,095 |
|
|
|
4,682,735 |
|
Other assets |
|
|
633,466 |
|
|
|
392,784 |
|
Total assets |
|
$ |
415,771,992 |
|
|
$ |
467,145,213 |
|
LIABILITIES |
|
|
|
|
|
|
|
|
Notes payable – 6.50% Unsecured Notes, net of deferred issuance
costs |
|
$ |
62,907,724 |
|
|
$ |
62,664,863 |
|
Notes payable – Credit Facility, net of deferred issuance
costs |
|
|
47,807,531 |
|
|
|
85,522,569 |
|
Notes payable – 6.25% Unsecured Notes, net of deferred issuance
costs |
|
|
43,256,614 |
|
|
|
— |
|
Base management fee and net investment income incentive fee payable
to affiliate |
|
|
1,729,152 |
|
|
|
3,227,456 |
|
Accrued interest payable |
|
|
666,353 |
|
|
|
488,608 |
|
Accrued expenses |
|
|
444,820 |
|
|
|
517,470 |
|
Total liabilities |
|
|
156,812,194 |
|
|
|
152,420,966 |
|
NET
ASSETS |
|
|
|
|
|
|
|
|
Common stock, $0.01 par value, 100,000,000 shares authorized;
47,790,071 and 47,650,959 shares issued and outstanding,
respectively |
|
|
477,900 |
|
|
|
476,509 |
|
Capital in excess of par value |
|
|
457,806,441 |
|
|
|
456,970,560 |
|
Total distributable earnings / (accumulated losses) |
|
|
(199,324,543 |
) |
|
|
(142,722,822 |
) |
Total net assets |
|
|
258,959,798 |
|
|
|
314,724,247 |
|
Total liabilities and net assets |
|
$ |
415,771,992 |
|
|
$ |
467,145,213 |
|
Net asset value per common share |
|
$ |
5.42 |
|
|
$ |
6.60 |
|
OXFORD SQUARE CAPITAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited)
|
|
Three Months Ended September 30, 2019 |
|
Three Months Ended September 30, 2018 |
|
Nine Months Ended September 30, 2019 |
|
Nine Months Ended September 30, 2018 |
|
INVESTMENT
INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From non-affiliated investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest income – debt investments |
|
$ |
7,114,678 |
|
|
$ |
6,461,737 |
|
|
$ |
21,695,535 |
|
|
$ |
18,134,829 |
|
Income from securitization vehicles and investments |
|
|
6,131,870 |
|
|
|
7,217,804 |
|
|
|
19,628,276 |
|
|
|
20,121,432 |
|
Other income |
|
|
162,796 |
|
|
|
1,468,611 |
|
|
|
887,662 |
|
|
|
2,555,797 |
|
Total investment income from non-affiliated investments |
|
|
13,409,344 |
|
|
|
15,148,152 |
|
|
|
42,211,473 |
|
|
|
40,812,058 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
From affiliated investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividend Income – PIK |
|
|
673,706 |
|
|
|
— |
|
|
|
7,009,592 |
|
|
|
— |
|
Interest income – debt investments |
|
|
— |
|
|
|
70,300 |
|
|
|
— |
|
|
|
271,916 |
|
Total investment income from affiliated investments |
|
|
673,706 |
|
|
|
70,300 |
|
|
|
7,009,592 |
|
|
|
271,916 |
|
Total investment income |
|
|
14,083,050 |
|
|
|
15,218,452 |
|
|
|
49,221,065 |
|
|
|
41,083,974 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense |
|
|
2,522,451 |
|
|
|
2,258,403 |
|
|
|
7,478,451 |
|
|
|
4,635,177 |
|
Base management fees |
|
|
1,729,152 |
|
|
|
1,834,856 |
|
|
|
5,223,813 |
|
|
|
5,257,061 |
|
Professional fees |
|
|
349,564 |
|
|
|
366,399 |
|
|
|
1,071,633 |
|
|
|
871,476 |
|
Compensation expense |
|
|
195,034 |
|
|
|
210,262 |
|
|
|
622,937 |
|
|
|
686,484 |
|
General and administrative |
|
|
349,662 |
|
|
|
365,902 |
|
|
|
1,232,254 |
|
|
|
1,200,097 |
|
Total expenses before incentive fees |
|
|
5,145,863 |
|
|
|
5,035,822 |
|
|
|
15,629,088 |
|
|
|
12,650,295 |
|
Net investment income incentive fees |
|
|
— |
|
|
|
1,570,126 |
|
|
|
3,511,493 |
|
|
|
3,410,068 |
|
Total expenses |
|
|
5,145,863 |
|
|
|
6,605,948 |
|
|
|
19,140,581 |
|
|
|
16,060,363 |
|
Net investment income |
|
|
8,937,187 |
|
|
|
8,612,504 |
|
|
|
30,080,484 |
|
|
|
25,023,611 |
|
Net change in unrealized
appreciation/(depreciation) on investments: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Affiliated investments |
|
|
(34,478,523 |
) |
|
|
(2,693,363 |
) |
|
|
(42,201,632 |
) |
|
|
(1,819,221 |
) |
Affiliated investments |
|
|
(7,131,376 |
) |
|
|
423,621 |
|
|
|
(14,009,646 |
) |
|
|
2,287,150 |
|
Total net change in unrealized appreciation/(depreciation) on
investments |
|
|
(41,609,899 |
) |
|
|
(2,269,742 |
) |
|
|
(56,211,278 |
) |
|
|
467,929 |
|
Net realized
gains/(losses): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-Affiliated/non-control investments |
|
|
(432,246 |
) |
|
|
178,914 |
|
|
|
(1,709,816 |
) |
|
|
(577,890 |
) |
Affiliated investments |
|
|
— |
|
|
|
5,241 |
|
|
|
— |
|
|
|
5,241 |
|
Extinguishment of debt |
|
|
(5,506 |
) |
|
|
(14,608 |
) |
|
|
(56,592 |
) |
|
|
(14,608 |
) |
Total net realized
gains/(losses) |
|
|
(437,752 |
) |
|
|
169,547 |
|
|
|
(1,766,408 |
) |
|
|
(587,257 |
) |
Net increase/(decrease) in net
assets resulting from operations |
|
$ |
(33,110,464 |
) |
|
$ |
6,512,309 |
|
|
$ |
(27,897,202 |
) |
|
$ |
24,904,283 |
|
Net increase in net assets
resulting from net investment income per common share (Basic
and Diluted) |
|
$ |
0.19 |
|
|
$ |
0.18 |
|
|
$ |
0.63 |
|
|
$ |
0.50 |
|
Net increase in net assets
resulting from operations per common share |
|
$ |
(0.69 |
) |
|
$ |
0.13 |
|
|
$ |
(0.59 |
) |
|
$ |
0.50 |
|
Weighted average shares of
common stock outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted |
|
|
47,740,799 |
|
|
|
49,195,368 |
|
|
|
47,681,235 |
|
|
|
50,153,321 |
|
Distributions per share |
|
$ |
0.201 |
|
|
$ |
0.200 |
|
|
$ |
0.602 |
|
|
$ |
0.600 |
|
FINANCIAL HIGHLIGHTS – (unaudited)
Financial highlights for the three and nine months ended
September 30, 2019 and 2018, respectively, are as
follows:
Per Share Data |
|
Three Months Ended September 30, 2019 |
|
Three Months Ended September 30, 2018 |
|
Nine Months Ended September 30, 2019 |
|
Nine Months Ended September 30,
2018 |
Net asset value as of
beginning of period |
|
$ |
6.31 |
|
|
$ |
7.56 |
|
|
$ |
6.60 |
|
|
$ |
7.55 |
|
Net investment income(1) |
|
|
0.19 |
|
|
|
0.18 |
|
|
|
0.63 |
|
|
|
0.50 |
|
Net realized and unrealized
gains/(losses)(2) |
|
|
(0.88 |
) |
|
|
(0.05 |
) |
|
|
(1.21 |
) |
|
|
(0.01 |
) |
Net (decrease)/increase in net
asset value from operations |
|
|
(0.69 |
) |
|
|
0.13 |
|
|
|
(0.58 |
) |
|
|
0.49 |
|
Distributions per share from
net investment income |
|
|
(0.17 |
) |
|
|
(0.12 |
) |
|
|
(0.51 |
) |
|
|
(0.37 |
) |
Tax return of capital
distributions(3) |
|
|
(0.03 |
) |
|
|
(0.08 |
) |
|
|
(0.09 |
) |
|
|
(0.23 |
) |
Total distributions |
|
|
(0.20 |
) |
|
|
(0.20 |
) |
|
|
(0.60 |
) |
|
|
(0.60 |
) |
Effect of shares repurchased,
gross |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
0.05 |
|
Net asset value at end of
period |
|
$ |
5.42 |
|
|
$ |
7.49 |
|
|
$ |
5.42 |
|
|
$ |
7.49 |
|
Per share market value at
beginning of period |
|
$ |
6.40 |
|
|
$ |
6.90 |
|
|
$ |
6.47 |
|
|
$ |
5.74 |
|
Per share market value at end
of period |
|
$ |
6.23 |
|
|
$ |
7.12 |
|
|
$ |
6.23 |
|
|
$ |
7.12 |
|
Total return based on Market
Value(4) |
|
|
0.46 |
% |
|
|
6.09 |
% |
|
|
5.69 |
% |
|
|
35.52 |
% |
Total return based on Net
Asset Value(5) |
|
|
(10.92 |
)% |
|
|
1.76 |
% |
|
|
(8.76 |
)% |
|
|
7.20 |
% |
Shares outstanding at end of
period |
|
|
47,790,071 |
|
|
|
49,146,266 |
|
|
|
47,790,071 |
|
|
|
49,146,266 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ratios/Supplemental
Data(8) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net assets at end of period
(000’s) |
|
$ |
258,960 |
|
|
$ |
368,267 |
|
|
$ |
258,960 |
|
|
$ |
368,267 |
|
Average net assets
(000’s) |
|
|
279,978 |
|
|
|
370,269 |
|
|
|
301,766 |
|
|
|
379,045 |
|
Ratio of operating expenses to
average net assets(6) |
|
|
7.35 |
% |
|
|
7.14 |
% |
|
|
8.46 |
% |
|
|
5.65 |
% |
Ratio of net investment income
to average net assets(6) |
|
|
12.77 |
% |
|
|
9.30 |
% |
|
|
13.29 |
% |
|
|
8.80 |
% |
Portfolio turnover
rate(7) |
|
|
1.18 |
% |
|
|
7.78 |
% |
|
|
9.07 |
% |
|
|
24.77 |
% |
____________
(1) |
Represents per share net investment income for the period, based
upon average shares outstanding. |
(2) |
Net realized and unrealized gains
include rounding adjustments to reconcile change in net asset value
per share. |
(3) |
Management monitors available
taxable earnings, including net investment income and realized
capital gains, to determine if a tax return of capital may occur
for the year. To the extent the Company’s taxable earnings fall
below the total amount of the Company’s distributions for that
fiscal year, a portion of those distributions may be deemed a tax
return of capital to the Company’s stockholders. The ultimate tax
character of the Company’s earnings cannot be determined until tax
returns are prepared after the end of the fiscal
year. |
(4) |
Total return based on market
value equals the increase or decrease of ending market value over
beginning market value, plus distributions, divided by the
beginning market value, assuming distribution reinvestment prices
obtained under the Company’s distribution reinvestment plan,
excluding any discounts. Total return is not
annualized. |
(5) |
Total return based on net asset
value equals the increase or decrease of ending net asset value
over beginning net asset value, plus distributions, divided by the
beginning net asset value. Total return is not annualized. |
(6) |
Annualized. |
(7) |
Portfolio turnover rate is
calculated using the lesser of the year-to-date cash investment
sales and debt repayments or year-to-date cash investment purchases
over the average of the total investments at fair value. For the
three months ended September 30, 2019 the portfolio turnover rate
is calculated using the quarter-to-date cash investment sales and
debt repayments over the average of the total investments at fair
value since there were no cash investment purchases during the
period. |
(8) |
The following table provides
supplemental performance ratios (annualized) measured for the three
and nine months ended September 30, 2019 and 2018: |
|
Three Months Ended September 30,
2019 |
Three Months Ended September 30,
2018 |
Nine Months Ended September 30, 2019 |
Nine Months Ended September 30,
2018 |
Ratio of operating
expenses to average net assets: |
|
|
|
|
Operating expenses before
incentive fees |
7.35 |
% |
5.44 |
% |
6.91 |
% |
4.45 |
% |
Net investment income
incentive fees |
— |
% |
1.70 |
% |
1.55 |
% |
1.20 |
% |
Ratio of expenses, excluding
interest expense |
3.75 |
% |
4.70 |
% |
5.15 |
% |
4.02 |
% |
About Oxford Square Capital Corp. Oxford Square
Capital Corp. is a publicly-traded business development company
principally investing in syndicated bank loans and debt and equity
tranches of collateralized loan obligation (“CLO”) vehicles. CLO
investments may also include warehouse facilities, which are
financing structures intended to aggregate loans that may be used
to form the basis of a CLO vehicle.
Forward-Looking Statements This press release
contains forward-looking statements subject to the inherent
uncertainties in predicting future results and conditions. Any
statements that are not statements of historical fact (including
statements containing the words “believes,” “plans,” “anticipates,”
“expects,” “estimates” and similar expressions) should also be
considered to be forward-looking statements. Certain factors could
cause actual results and conditions to differ materially from those
projected in these forward-looking statements. These factors are
identified from time to time in our filings with the Securities and
Exchange Commission. We undertake no obligation to update such
statements to reflect subsequent events, except as may be required
by law.
Contact:Bruce Rubin203-983-5280
Oxford Square Capital (NASDAQ:OXSQL)
Historical Stock Chart
From Jun 2024 to Jul 2024
Oxford Square Capital (NASDAQ:OXSQL)
Historical Stock Chart
From Jul 2023 to Jul 2024