Oxford Square Capital Corp. Reports Mixed Q3 Results and Announces Upcoming Distributions
Oxford Square Capital Corp. (NASDAQ:OXSQ) announces Q3 earnings with a net increase in assets and distributions for early 2024.
Net asset value per share remained stable at $2.78, despite a decrease in total assets.
Investment income shows growth, but the company faces unrealized depreciation on investments.
OXSQ schedules a conference call to discuss the quarterly results and has posted a detailed presentation on their website.
On November 7, 2023, Oxford Square Capital Corp. (NASDAQ:OXSQ) disclosed its financial results for the quarter ending September 30, 2023, alongside the declaration of monthly distributions for the first quarter of 2024. The company's net asset value (NAV) per common share held steady at $2.78, consistent with the end of the previous year. Despite this stability in NAV, total assets decreased from approximately $328 million to $303 million over the nine-month period.
Financial Highlights and Income Statement Analysis
OXSQ reported a net investment income of $6.4 million for the quarter, translating to $0.11 per share, which is consistent with the same quarter in the previous year. The company experienced a net increase in net assets resulting from operations of approximately $6.7 million, or $0.12 per share. This is a notable improvement compared to the net decrease of about $11.1 million, or $(0.22) per share, in the same period of 2022. Investment income from non-affiliated/non-control investments rose to over $13 million, up from $11.4 million in Q3 of the previous year.
Balance Sheet and Shareholder Distributions
OXSQ's balance sheet reflects a reduction in non-affiliated/non-control investments and affiliated investments, with the former decreasing from $310 million to $277 million. Cash and cash equivalents, however, increased from $9 million to $12.4 million. The company has also announced monthly distributions of $0.035 per share for the end of January, February, and March 2024.
Operational and Market Performance
The company's operational performance showed a mixed picture with a total net change in unrealized appreciation on investments of approximately $13.9 million, a significant shift from the unrealized depreciation of nearly $16.8 million in the same quarter of the previous year. However, OXSQ faced net realized losses on non-affiliated/non-control investments of over $13.4 million.
Conference Call and Investor Relations
OXSQ has scheduled a conference call to discuss these results and has made a detailed presentation available under the Investor Relations section of their website. The toll-free dial-in number for the conference call is 1-833-470-1428, with a recording available for 30 days following the call.
In summary, Oxford Square Capital Corp. (NASDAQ:OXSQ) has reported a quarter of mixed financial results, with stable net asset value per share and an increase in investment income, but also with significant unrealized depreciation on investments. The company remains committed to providing shareholder value through upcoming distributions and transparent communication of its financial performance.
Explore the complete 8-K earnings release (here) from Oxford Square Capital Corp for further details.
This article first appeared on GuruFocus.
