Oxford Square Capital (OXSQ) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For the quarter ended December 2024, the company's net investment income was approximately $6 million or$ 0.09 per share, compared to $6.2 million or$ 0.10 per share for the prior quarter [7] - The net asset value per share decreased to $2.30 from$ 2.35 in the previous quarter [7] - Total investment income for the fourth quarter was approximately $10.2 million, slightly down from$ 10.3 million in the prior quarter [8] - The company recorded combined net unrealized and realized losses on investments of approximately $2.7 million or$ 0.04 per share, a decrease from $7.1 million or$ 0.11 per share in the prior quarter [8] Business Line Data and Key Metrics Changes - During the quarter, the company engaged in investment activities that included purchases of approximately $25.1 million, sales of$ 7 million, and repayments of approximately $15 million [9] - The company issued approximately 1.8 million shares of common stock through an at-the-market offering, resulting in net proceeds of approximately$ 5 million [9] Market Data and Key Metrics Changes - The U.S. loan market performance improved, with U.S. loan prices increasing from 96.71% of par as of September 30 to 97.33% of par as of December 31 [11] - The 12-month trailing default rate for the loan index increased to 0.91% by principal amount at the end of the quarter, up from 0.80% at the end of September [12] - The distressed ratio, defined as the percentage of loans with prices below 80% of par, decreased to 3.02% from 3.43% at the end of the third quarter [12] - U.S. Leveraged Loan primary market issuance was $96.7 billion, representing a 75% increase compared to the same quarter in the previous year [13] Company Strategy and Development Direction - The company continues to focus on portfolio management strategies designed to maximize long-term total return, leveraging its position as a permanent capital vehicle to adopt a longer-term investment strategy [14] Management's Comments on Operating Environment and Future Outlook - Management noted that the U.S. loan market showed improvement, indicating a positive trend in market conditions [11] - The company highlighted the increase in loan prices and issuance, suggesting a favorable environment for investment activities [12][13] Other Important Information - The Board of Directors declared monthly distributions of$ 0.035 per share for each of the months ending April, May, and June of 2025 [10] Q&A Session Summary Question: No questions were raised during the call - The operator indicated that there were no questions from participants [16]