NASDAQ$OCSL

Oaktree Specialty Lending Corporation · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Reported financial results for the fiscal quarter ended June 30, 2024.

Oaktree Specialty Lending Corporation announced its financial results for the third fiscal quarter ended June 30, 2024, with total investment income of $95.0 million and GAAP net investment income of $44.6 million. The company originated $338.7 million of new investment commitments and declared a quarterly distribution of $0.55 per share.

  • Total investment income was $95.0 million ($1.16 per share) for the third fiscal quarter of 2024.
  • GAAP net investment income was $44.6 million ($0.54 per share) for the third fiscal quarter of 2024.
  • Originated $338.7 million of new investment commitments and received $185.5 million of proceeds from prepayments, exits, other paydowns and sales during the quarter ended June 30, 2024.
  • A quarterly cash distribution was declared of $0.55 per share.

Headline financials

Total Revenue

-$3.76M

Previous: -$3.41M-10.4%
EPS

$0.01

Previous: $0.62-98.4%
NAV per share

$18.19

No prior period
Debt to equity

1.16

No prior period
Net debt to equity

1.1

Previous: 1.14-3.5%
New commitments

$339M

No prior period
Free Cash Flow

$1.12M

Previous: $36.7M-96.9%
Net Income

$1.12M

Previous: $36.7M-96.9%
Operating Income

-$16.4M

Previous: -$16.1M-1.4%
Gross Profit

-$3.76M

Previous: -$3.41M-10.4%
Cash & Equivalents

$96.3M

Previous: $59.7M+61.3%
Total Assets

$3.32B

Previous: $3.34B-0.4%

Revenue & EPS history

Oaktree · Revenue · Quarterly

-$3.76M

Q3 2024+10.4%vs Q3 2023
Beat estimate in 4 of 14 quarters(29%)
ActualEstimate

Revenue by segment

Oaktree · $60.3M total across 3 segments · Q1 2022

  • Interest income
    $55.5M
  • Dividend income
    $3.92M
  • Fee income
    $912K

Forward guidance

The company remains focused on shifting investment composition to first lien loans and on improving portfolio quality and performance. Management fee reduction went into effect on July 1, 2024, and an incentive fee waiver was announced as part of the third quarter results.

Tailwinds

  • Focus on shifting investment composition to first lien loans.
  • Commitment to improving portfolio quality and performance.
  • Permanent management fee reduction went into effect on July 1, 2024.
  • Incentive fee waiver announced as part of third quarter results.
  • Confidence in the strategy and the ability of the portfolio to deliver sustainable and attractive returns.

Headwinds

  • Experienced challenges at certain portfolio investments.
  • Decline in NAV due to challenges at certain portfolio investments.
  • Increase in non-accruals due to challenges at certain portfolio investments.
  • Unrealized losses on certain debt and equity investments.
  • Investments in SLF JV I and Glick JV decreased due to leverage and unrealized depreciation.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 18 quarterly earnings reports · overlaid with Q3 2024

Historical avgQ3 2024

-1.4%

Avg return

Earnings day

-2.0%

Avg return

5 days after

-2.6%

Avg return

30 days after

33%

6 / 18 earnings

Positive

+7.3%

Q4 2022

Best reaction

-8.4%

Q3 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026+0.4%-5.8%-5.3%
Q1 2026+3.0%+2.0%-5.6%
Q4 2025+0.0%+1.1%-3.8%
Q2 2025-7.8%-6.7%+1.6%
Q1 2025-2.8%-2.9%+0.2%
Q4 2024-2.9%-1.9%-6.0%
Q3 2024-8.4%-10.6%-5.0%
Q2 2024-1.9%-2.9%-1.9%
Q1 2024-6.9%-7.2%-7.1%
Q4 2023+0.5%+0.4%+1.4%
Q3 2023-1.7%-0.8%-1.4%
Q2 2023-2.4%-0.7%+1.3%
Q1 2023-1.6%-1.7%-4.4%
Q4 2022+7.3%+7.9%+2.4%
Q3 2022-0.8%-1.1%-4.3%
Q2 2022-1.5%-4.5%-5.4%
Q1 2022+1.1%+0.0%-2.4%
Q4 2021+1.3%-0.8%-1.3%

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