Oxford Square Capital Corp. (NASDAQ:OXSQ) Q2 2018 Earnings Conference Call - Final Transcript
Jul 31, 2018 • 09:00 am ET
Good morning and welcome to the Oxford Square Capital Corp. Second Quarter 2018 Earnings Release and Conference Call. All participants will be in listen-only mode. (Operator Instructions) After today's presentation, there will be an opportunity to ask questions. (Operator Instructions) Please note this event is being recorded.
I would now like to turn the conference over to Jonathan Cohen, CEO. Please go ahead.
Thanks very much. Good morning and welcome everyone to the Oxford Square Capital Corp. Second Quarter 2018 Earnings Conference Call. I'm joined today by Saul Rosenthal, our President; and Bruce Rubin, our Chief Financial Officer. Bruce, could you open the call today with the discussion regarding forward-looking statements?
Sure, Jonathan. Today's 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 released earlier this morning.
(Forward-Looking Cautionary Statements)
With that, I will turn the presentation back to Jonathan.
Thanks very much, Bruce. We generated a positive total return of 2.1% for our shareholders during the second quarter of 2018. That return reflected a decrease in net asset value per share from $7.60 at the end of March 2018, $7.56 per share as of June 30, as well as the effect of the $0.20 distribution.
For the quarter ended June 30, 2018, we recorded GAAP net investment income of approximately $7.7 million, or approximately $0.15 per share compared to $8.7 million or $0.17 per share for the quarter ended March 31, 2018.
In the second quarter of 2018, we recorded a net increase in appreciation on investments of $300,000 and net realized losses of approximately $1 million. In total, we had a net increase in net assets from operations of approximately $6.9 million or $0.14 per share.
Our core net investment income for the quarter ended June 30, was approximately $9.1 million or $0.18 per share compared to $7.6 million or $0.15 per share for the prior quarter. Please see the earnings release we issued today for reconciliation of net investment income with core net investment income.
Following the company's results for the second quarter, the company's Board of Directors has declared a $0.20 per share distribution for the quarter ended September 30, 2018, payable to shareholders of record as of September 14, 2018.
On February 5, 2018, the Board of Directors authorized the stock repurchase program of $25 million. Since inception of the program through June 30, we repurchased approximately 2.1 million shares of our common stock at a weighted average share price of $6.41 per share, totaling approximately $13.3 million. Through June 30, our stock repurchase program has produced an accretion of approximately $0.05 per share in our net asset value per share.
On June 21, 2018, we announced that Oxford Square Funding 2018, LLC, a special purpose vehicle that is a wholly-owned subsidiary of the company entered into a credit facility with Citibank. Pricing under the facility is based on three months LIBOR plus 2.25% per year, 225 basis