Oxford Square Capital Corp. (NASDAQ:OXSQ) Q2 2019 Earnings Conference Call - Final Transcript

Jul 30, 2019 • 09:00 am ET

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Oxford Square Capital Corp. (NASDAQ:OXSQ) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day, and welcome to the Oxford Square Capital Corp. Second Quarter 2019 Earnings Release and Conference Call for today, July 30, 2019. [Operator Instructions]

I would now like to turn the conference over to Mr. Jonathan Cohen, Chief Executive Officer. Please go ahead.

Executive
Jonathan H. Cohen

Thanks very much. Good morning, everyone, and welcome to the Oxford Square Capital Corp. Second Quarter 2019 Earnings Conference Call. I'm joined today by Saul Rosenthal, our President; Bruce Rubin, our Chief Financial Officer; Kevin Yonon, our Managing Director and Portfolio Manager.

Bruce, could you please open the call with the disclosure regarding forward-looking statements?

Executive
Bruce L. Rubin

Sure, 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 earlier this morning. Please note that this call is the property of Oxford Square Capital Corp. Any 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 these projections. We do not undertake to update our forward-looking statements unless required to do so by law. To obtain copies of our latest SEC filings, please visit our website at www.oxfordsquarecapital.com.

With that, I'll turn the presentation back to Jonathan.

Executive
Jonathan H. Cohen

Thanks, Bruce. On June 30, 2019, our net asset value per share stood at $6.31 compared to a net asset value per share of $6.67 as of March 31. Our total return during the quarter ended June 30 was negative 2.4%. That total return reflected the change in net asset value per share for the period, as well as the impact of the monthly $0.067 distributions.

For the second quarter, we recorded GAAP net investment income of approximately $12.8 million or approximately $0.27 per share compared to $8.4 million, or $0.18 per share for the quarter ended March 31st. That increase was primarily due to the recognition of approximately $6.3 million of payment-in-kind cumulative dividends associated with the preferred equity position held by the company.

In the second quarter of 2019, we recorded net realized and unrealized depreciation on investments of approximately $20.3 million or $0.43 per share. In total, we had a net decrease in net assets from operations of approximately $7.5 million, or $0.16 per share compared to a net increase of $12.7 million or $0.27 per share for the prior quarter. We note that as of end of June 30, we continued to have no investments on non-accrual status.

During the second quarter of 2019, we made new investments of $46.4 million, and we had principal repayments and sales of $30.9 million. On April 3, 2019,