Oxford Square Capital Corp. (NASDAQ:OXSQ) Q1 2020 Earnings Conference Call - Final Transcript

Apr 28, 2020 • 09:00 am ET

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Oxford Square Capital Corp. (NASDAQ:OXSQ) Q1 2020 Earnings Conference Call - Final Transcript

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Presentation
Operator
Jonathan H. Cohen

[Starts Abruptly] Kevin Yonon, our Managing Director and Portfolio Manager.

And Bruce, could you please open our call with a discussion regarding forward-looking statements?

Executive
Bruce L. Rubin

Sure, Jonathan. Today's call is being recorded. An audio replay of this 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 call back to Jonathan.

Operator
Jonathan H. Cohen

Thank you, Bruce. For the quarter ended March 31st, Oxford Square's net investment income was $0.13 per share, and our net asset value per share stood at $3.32. Those compare to net investment income per share -- a net investment income per share of $0.18 and a net asset value per share of $5.12 in the prior quarter. For the first quarter of 2020, we recorded total investment income of approximately $10.8 million compared to $13.4 million for the prior quarter. In the first quarter of 2020, we recorded unrealized depreciation on investments of approximately $85.4 million or $1.74 per share compared to $13.3 million or $0.28 per share for the prior quarter.

In the first quarter of 2020, we recognized realized losses on investments of approximately $300,000 or $0.01 per share. We did not recognize any realized gains or losses on investments in the prior quarter. In total, for the first quarter, we had a net decrease in net assets from operations of approximately $79.4 million or $1.62 per share compared to a net decrease of $4.9 million or $0.10 per share for the prior quarter. We note that as of March 31st, we held two debt investments on non-accrual status with a combined fair value of $5.2 million.

Also as of March 31st, our preferred equity investments in one of our portfolio companies were on nonaccrual status with an aggregate fair value of $400,000. For the first quarter of 2020, we made a new investment of $7.4 million, and we had principal repayments in sales of $23 million.

And with that, I will turn the call over to our Portfolio Manager, Kevin Yonon.

Executive
Kevin P. Yonon

Thank you, Jonathan. During the quarter ended March 31st, the US loan market exhibited a heightened level of volatility. At the beginning of the quarter, US loan prices as defined