Oxford Square Capital Corp. (NASDAQ:OXSQ) Q3 2019 Earnings Conference Call - Final Transcript

Oct 30, 2019 • 09:00 am ET

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Oxford Square Capital Corp. (NASDAQ:OXSQ) Q3 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the Oxford Square Capital Corp. Third Quarter 2019 Earnings Release and Conference Call. All participants will be in a listen only mode. [Operator Instructions] After today's presentation, there will an opportunity to ask questions. [Operator Instructions] Please note this event is being recorded.

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

Executive
Jonathan Cohen

Thank you, good morning everyone and welcome to the Oxford Square Capital Corp. Third Quarter 2019 Earnings Conference Call. I'm joined today by Saul Rosenthal, our President; Bruce Rubin, our Chief Financial Officer; and Kevin Young, our Managing Director and Portfolio Manager.

Bruce, could you please open the call this morning with a disclosure regarding forward-looking statements.

Executive
Bruce Rubin

Sure Jonathon. 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 we'll 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 view 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 return the call back to Jonathan.

Executive
Jonathan Cohen

Thank you, Bruce. Oxford Square's net investment income or NII was $0.19 per share for the quarter ended September 30 and our net asset value per share stood at $5.42 compared to a net asset value per share of $6.31 as of June 30th.

Our total return during the quarter ended September 30th was negative 10.9%. 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 third quarter, we reported GAAP NII 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. That decrease was primarily due to the one time recognition of approximately $5.7 million of payment in kind cumulative dividends associated with our preferred equity position in the prior quarter.

In the third quarter of 2019, we recorded net realized losses and unrealized depreciation on investors approximately $42 million or $0.88 per share. In total, we had a net decrease in net assets from operations of approximately $33.1 million or $0.69 per share compared to a net decrease of $7.5 million or $0.16 per share for the prior quarter.

We