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Oxford Square Capital (OXSQ) - 2024 Q3 - Earnings Call Transcript
OXSQOxford Square Capital (OXSQ)2024-11-05 19:50
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Financial Data and Key Metrics Changes - For the quarter ended September 30, 2024, the company's net investment income was approximately 6.2millionor6.2 million or 0.10 per share, a decrease from 7.7millionor7.7 million or 0.13 per share in the prior quarter [7] - The net asset value per share decreased to 2.35from2.35 from 2.43 in the prior quarter [7] - Total investment income for the third quarter was approximately 10.3million,downfromapproximately10.3 million, down from approximately 11.4 million in the prior quarter [8] - The company recorded combined net unrealized and realized losses on investments of approximately 7.1millionor7.1 million or 0.11 per share, compared to losses of approximately 2.5millionor2.5 million or 0.04 per share in the prior quarter [8] Business Line Data and Key Metrics Changes - The company purchased approximately 47.7millionininvestmentsandreceivedrepaymentsofapproximately47.7 million in investments and received repayments of approximately 27.9 million during the quarter [8] - The company issued approximately 5.1 million shares of common stock through an at-the-market offering, resulting in net proceeds of approximately 14.5million[9]MarketDataandKeyMetricsChanges−U.S.loanmarketperformancemodestlyimproved,withU.S.loanpricesincreasingfrom96.5414.5 million [9] Market Data and Key Metrics Changes - U.S. loan market performance modestly improved, with U.S. loan prices increasing from 96.54% of par to 96.71% of par [11] - The 12-month trailing default rate for the loan index decreased to 0.8% from 0.9% at the end of June [12] - The distress ratio ended the quarter at 3.43%, down from 4.42% at the end of the second quarter [12] - U.S. Leveraged Loan primary market issuance was 109.8 billion, representing a 45% increase compared to the same quarter in the previous year [13] - U.S. loan fund outflows were approximately 3.5billionforthequarter[14]CompanyStrategyandDevelopmentDirection−Thecompanyfocusesonportfoliomanagementstrategiesdesignedtomaximizelong−termtotalreturn,leveragingitsstatusasapermanentcapitalvehicletotakealonger−termviewtowardsinvestmentstrategy[14]Management′sCommentsonOperatingEnvironmentandFutureOutlook−Managementnotedthatwhiletheloanmarketshowedsomeimprovement,out−of−courtrestructuringsandexchangesremainelevated,indicatingongoingchallengesinthemarket[12]−Thecompanyisoptimisticaboutthelong−terminvestmentstrategydespiteshort−termfluctuationsinthemarket[14]OtherImportantInformation−Thecompanydeclaredmonthlydistributionsof3.5 billion for the quarter [14] Company Strategy and Development Direction - The company focuses on portfolio management strategies designed to maximize long-term total return, leveraging its status as a permanent capital vehicle to take a longer-term view towards investment strategy [14] Management's Comments on Operating Environment and Future Outlook - Management noted that while the loan market showed some improvement, out-of-court restructurings and exchanges remain elevated, indicating ongoing challenges in the market [12] - The company is optimistic about the long-term investment strategy despite short-term fluctuations in the market [14] Other Important Information - The company declared monthly distributions of 0.035 per share for January, February, and March of 2025 [9] - Additional information about the company's third quarter performance is available on its website [15] Q&A Session Summary - No questions were posed during the Q&A session, and the call concluded with closing remarks from management [15][16]