- On
November 2, 2023 , our Board of Directors declared the following distributions on our common stock:
Month Ending | Record Date | Payment Date | Amount Per Share | |
- Net asset value (“NAV”) per share as of
September 30, 2023 stood at$2.78 , compared with a NAV per share onJune 30, 2023 of$2.88 .
- Net investment income (“NII”) was approximately
$6.4 million , or$0.11 per share, for the quarter endedSeptember 30, 2023 , compared with approximately$6.7 million , or$0.13 per share, for the quarter endedJune 30, 2023 . - Total investment income for the quarter ended
September 30, 2023 amounted to approximately$13.0 million , compared with approximately$13.5 million for the quarter endedJune 30, 2023 .- For the quarter ended
September 30, 2023 we recorded investment income from our portfolio as follows:$8.5 million from our debt investments;$4.1 million from our CLO equity investments; and$0.5 million from other income.
- For the quarter ended
- Our total expenses for the quarter ended
September 30, 2023 were approximately$6.6 million , compared with total expenses of approximately$6.8 million for the quarter endedJune 30, 2023 . - As of
September 30, 2023 , the following metrics applied (note that none of these metrics represented a total return to shareholders):- The weighted average yield of our debt investments was 13.1% at current cost, compared with 12.8% as of
June 30, 2023 ; - The weighted average effective yield of our CLO equity investments at current cost was 9.7%, compared with 9.2% as of
June 30, 2023 ; and - The weighted average cash distribution yield of our cash income producing CLO equity investments at current cost was 20.1%, compared with 18.4% as of
June 30, 2023 .
- The weighted average yield of our debt investments was 13.1% at current cost, compared with 12.8% as of
- For the quarter ended
September 30, 2023 , we recorded a net increase in net assets resulting from operations of approximately$6.7 million , consisting of:- NII of approximately
$6.4 million ; - Net realized losses of approximately
$13.6 million ; and - Net unrealized appreciation of approximately
$13.9 million .
- NII of approximately
- During the third quarter of 2023, we did not make any new investments and received approximately
$16.1 million from sales and repayments of investments. - Our weighted average credit rating was 2.2 based on total fair value and 2.5 based on total principal amount as of
September 30, 2023 , compared with a weighted average credit rating of 2.2 based on total fair value and 2.5 based on total principal amount as ofJune 30, 2023 . - As of
September 30, 2023 , we had three debt investments (in one portfolio company) on non-accrual status, with a combined fair value of approximately$490,000 . Also, as ofSeptember 30, 2023 , our preferred equity investments in one of our portfolio companies were on non-accrual status, which had an aggregate fair value of approximately$7.7 million . - For the quarter ended
September 30, 2023 , we issued a total of approximately 1.4 million shares of common stock pursuant to an “at-the-market” offering. After deducting the sales agent’s commissions and offering expenses, this resulted in net proceeds of approximately$4.4 million . The common stock issuance resulted in net accretion to shareholders of approximately$0.01 per share of NAV for the quarter. As ofSeptember 30, 2023 , we had approximately 58.0 million shares of common stock outstanding.
We will hold a conference call to discuss third quarter results today,
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.
STATEMENTS OF ASSETS AND LIABILITIES | |||||||
2023 | 2022 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Non-affiliated/non-control investments (cost: | $ | 277,807,167 | $ | 310,347,097 | |||
Affiliated investments (cost: | 7,709,623 | 4,349,818 | |||||
Cash and cash equivalents | 12,410,909 | 9,019,164 | |||||
Interest and distributions receivable | 4,036,483 | 3,492,716 | |||||
Other assets | 1,031,723 | 785,640 | |||||
Total assets | $ | 302,995,905 | $ | 327,994,435 | |||
LIABILITIES | |||||||
Notes payable – 6.50% Unsecured Notes, net of deferred issuance costs of | $ | 14,333,882 | $ | 63,964,568 | |||
Notes payable – 6.25% Unsecured Notes, net of deferred issuance costs of | 44,188,373 | 44,013,984 | |||||
Notes payable – 5.50% Unsecured Notes, net of deferred issuance costs of | 78,634,603 | 78,346,238 | |||||
Base Fee and Net Investment Income Incentive Fee payable to affiliate | 2,360,018 | 1,323,573 | |||||
Accrued interest payable | 1,207,082 | 1,216,109 | |||||
Accrued expenses | 1,376,886 | 458,001 | |||||
Total liabilities | 142,100,844 | 189,322,473 | |||||
NET ASSETS | |||||||
Common stock, | 579,584 | 498,447 | |||||
Capital in excess of par value | 455,703,275 | 434,737,950 | |||||
Total distributable earnings/(accumulated losses) | (295,387,798 | ) | (296,564,435 | ) | |||
Total net assets | 160,895,061 | 138,671,962 | |||||
Total liabilities and net assets | $ | 302,995,905 | $ | 327,994,435 | |||
Net asset value per common share | $ | 2.78 | $ | 2.78 |
STATEMENTS OF OPERATIONS (unaudited) | |||||||||||||||
Three Months Ended 2023 | Three Months Ended 2022 | Nine Months Ended 2023 | Nine Months Ended 2022 | ||||||||||||
INVESTMENT INCOME | |||||||||||||||
From non-affiliated/non-control investments: | |||||||||||||||
Interest income – debt investments | $ | 8,453,240 | $ | 6,805,339 | $ | 25,546,580 | $ | 17,730,026 | |||||||
Income from securitization vehicles and investments | 4,106,071 | 4,402,463 | 12,814,866 | 12,906,127 | |||||||||||
Other income | 486,043 | 190,330 | 1,138,686 | 567,400 | |||||||||||
Total investment income from non-affiliated/non-control investments | 13,045,354 | 11,398,132 | 39,500,132 | 31,203,553 | |||||||||||
Total investment income | 13,045,354 | 11,398,132 | 39,500,132 | 31,203,553 | |||||||||||
EXPENSES | |||||||||||||||
Interest expense | 2,530,321 | 3,090,535 | 8,703,638 | 9,263,853 | |||||||||||
Base Fee | 1,183,941 | 1,408,729 | 3,601,275 | 4,580,413 | |||||||||||
Professional fees | 478,833 | 417,390 | 1,096,641 | 1,072,843 | |||||||||||
Compensation expense | 205,348 | 234,517 | 662,472 | 689,350 | |||||||||||
General and administrative | 458,328 | 438,943 | 1,261,650 | 1,195,174 | |||||||||||
Excise tax | 573,686 | 252,172 | 873,686 | 252,172 | |||||||||||
Total expenses before incentive fees | 5,430,457 | 5,842,286 | 16,199,362 | 17,053,805 | |||||||||||
Net Investment Income Incentive Fees | 1,176,079 | — | 3,705,387 | — | |||||||||||
Total expenses | 6,606,536 | 5,842,286 | 19,904,749 | 17,053,805 | |||||||||||
Net investment income | 6,438,818 | 5,555,846 | 19,595,383 | 14,149,748 | |||||||||||
Net change in unrealized appreciation/(depreciation) on investments: | |||||||||||||||
Non-Affiliate/non-control investments | 14,613,632 | (17,373,881 | ) | 18,571,627 | (77,909,718 | ) | |||||||||
Affiliated investments | (712,830 | ) | 615,332 | 3,359,805 | 1,418,432 | ||||||||||
Total net change in unrealized appreciation/(depreciation) on investments | 13,900,802 | (16,758,549 | ) | 21,931,432 | (76,491,286 | ) | |||||||||
Net realized (losses)/gains: | |||||||||||||||
Non-affiliated/non-control investments | (13,480,114 | ) | 55,787 | (16,811,422 | ) | (437,978 | ) | ||||||||
Extinguishment of debt | (166,670 | ) | — | (166,670 | ) | — | |||||||||
Total net realized (losses)/gains | (13,646,784 | ) | 55,787 | (16,978,092 | ) | (437,978 | ) | ||||||||
Net increase/(decrease) in net assets resulting from operations | $ | 6,692,836 | $ | (11,146,916 | ) | $ | 24,548,723 | $ | (62,779,516 | ) | |||||
Net increase in net assets resulting from net investment income per common share (Basic and Diluted): | $ | 0.11 | $ | 0.11 | $ | 0.37 | $ | 0.28 | |||||||
Net increase/(decrease) in net assets resulting from operations per common share (Basic and Diluted): | $ | 0.12 | $ | (0.22 | ) | $ | 0.47 | $ | (1.26 | ) | |||||
Weighted average shares of common stock outstanding (Basic and Diluted): | 56,764,866 | 49,773,782 | 52,413,834 | 49,737,216 | |||||||||||
Distributions per share | $ | 0.225 | $ | 0.105 | $ | 0.435 | $ | 0.315 |
FINANCIAL HIGHLIGHTS – (unaudited)
Three Months Ended 2023 | Three Months Ended 2022 | Nine Months Ended 2023 | Nine Months Ended 2022 | ||||||||||||
Per Share Data | |||||||||||||||
Net asset value at beginning of period | $ | 2.88 | $ | 3.67 | $ | 2.78 | $ | 4.92 | |||||||
Net investment income(1) | 0.11 | 0.11 | 0.37 | 0.28 | |||||||||||
Net realized and unrealized gains/(losses)(2) | 0.01 | (0.33 | ) | 0.10 | (1.54 | ) | |||||||||
Net increase/(decrease) in net asset value from operations | 0.12 | (0.22 | ) | 0.47 | (1.26 | ) | |||||||||
Distributions per share from net investment income | (0.23 | ) | (0.15 | ) | (0.44 | ) | (0.32 | ) | |||||||
Tax return of capital distributions(3) | — | 0.04 | — | — | |||||||||||
Total distributions | (0.23 | ) | (0.11 | ) | (0.44 | ) | (0.32 | ) | |||||||
Effect of shares issued, gross | 0.01 | — | (0.03 | ) | — | ||||||||||
Net asset value at end of period | $ | 2.78 | $ | 3.34 | $ | 2.78 | $ | 3.34 | |||||||
Per share market value at beginning of period | $ | 2.65 | $ | 3.64 | $ | 3.12 | $ | 4.08 | |||||||
Per share market value at end of period | $ | 3.01 | $ | 3.01 | $ | 3.01 | $ | 3.01 | |||||||
Total return based on Market Value(4) | 22.17 | % | (14.79 | )% | 10.99 | % | (19.90 | )% | |||||||
Total return based on Net Asset Value(5) | 4.34 | % | (6.13 | )% | 15.65 | % | (25.71 | )% | |||||||
Shares outstanding at end of period | 57,958,446 | 49,800,274 | 57,958,446 | 49,800,274 | |||||||||||
Ratios/Supplemental Data(8) | |||||||||||||||
Net assets at end of period (000’s) | $ | 160,895 | $ | 166,548 | $ | 160,895 | $ | 166,548 | |||||||
Average net assets (000’s) | $ | 160,397 | $ | 174,670 | $ | 148,132 | $ | 206,324 | |||||||
Ratio of expenses to average net assets(6) | 15.40 | % | 12.95 | % | 17.72 | % | 10.98 | % | |||||||
Ratio of net investment income to average net assets(6) | 17.13 | % | 13.16 | % | 17.83 | % | 9.18 | % | |||||||
Portfolio turnover rate(7) | — | % | 3.53 | % | 2.64 | % | 16.42 | % |
____________
(1) | Represents per share net investment income for the period, based upon weighted average shares outstanding. |
(2) | Net realized and unrealized gains/(losses) 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. The amounts and sources of distributions reported are only estimates (based on an average of the reported tax character historically) and are not being provided for U.S. tax reporting purposes. |
(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) | Ratios for the three and nine months ended |
(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. |
(8) | The following table provides supplemental performance ratios (annualized) measured for the three and nine months ended |
Three Months Ended 2023 | Three Months Ended 2022 | Nine Months Ended 2023 | Nine Months Ended 2022 | |
Ratio of expenses to average net assets: | ||||
Operating expenses before incentive fees | 12.47% | 12.95% | 14.38% | 10.98% |
Net investment income incentive fees | 2.93% | —% | 3.34% | —% |
Ratio of expenses, excluding interest expense to average net assets | 9.09% | 5.87% | 9.89% | 4.99% |
About
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. These statements are not guarantees of future performance, conditions or results and involve a number of risks and uncertainties. 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
Contact:
203-983-5280
Source:
2023 GlobeNewswire, Inc., source