ORC Announces Fourth Quarter 2021 Results
Page 11
February 24, 2022
($ in thousands)
Returns for the Quarter Ended December 31, 2021
Structured Security Portfolio
Pass-Through
Interest-Only
Inverse Interest-
Portfolio
Securities
Only Securities
Sub-total
Total
Income (net of borrowing cost)
$
40,651
$
1,634
$
113
$
1,747
$
42,398
Realized and unrealized (losses) / gains
(93,067)
(541)
66
(475)
(93,542)
Derivative gains
10,945
n/a
-
n/a
10,945
Total Return
$
(41,471)
$
1,093
$
179
$
1,272
$
(40,199)
Beginning Capital Allocation
$
539,318
$
140,078
$
2,783
$
142,861
$
682,179
Return on Invested Capital for the Quarter
(1)
(7.7)%
0.8%
0
0.9%
(5.9)%
Average Capital Allocation
(2)
$
521,922
$
175,230
$
2,654
$
177,884
$
699,806
Return on Average Invested Capital for the Quarter
(3)
(7.9)%
0.6%
-
0.7%
(5.7)%
(1)
Calculated by dividing the Total
Return by the Beginning Capital Allocation, expressed as a percentage.
(2)
Calculated using two data points, the Beginning and Ending Capital Allocation balances.
(3)
Calculated by dividing the Total
Return by the Average Capital Allocation, expressed as a percentage
Stock Offerings
On June 22, 2021, we entered into an equity distribution agreement (the “June 2021
Equity Distribution Agreement”) with four
sales agents pursuant to which we could offer and sell, from time to time, up to an aggregate
amount of $250,000,000 of shares of our
common stock in transactions that were deemed to be “at the market” offerings and privately
negotiated transactions. We issued a total
of 49,407,336 shares under the June 2021 Equity Distribution Agreement for aggregate
gross proceeds of approximately $250.0
million, and net proceeds of approximately $246.2 million, after commissions
and fees, prior to its termination in October 2021.
On October 29, 2021, we entered into an equity distribution agreement
(the “October 2021 Equity Distribution Agreement”) with
four sales agents pursuant to which we may offer and sell, from time to time, up to an aggregate
amount of $250,000,000 of shares of
our common stock in transactions that are deemed to be “at the market” offerings and privately
negotiated transactions. Through
December 31, 2021, we issued a total of 15,835,700 shares under the October 2021
Equity Distribution Agreement for aggregate gross
proceeds of approximately $78.3 million, and net proceeds of approximately
$77.0 million, after commissions and fees.
Stock Repurchase Program
On July 29, 2015, the Company’s Board of Directors authorized the repurchase of up to 2,000,000
shares of our common stock.
The timing, manner, price and amount of any repurchases is determined by the Company in its discretion and is
subject to economic
and market conditions, stock price, applicable legal requirements and other factors.
The authorization does not obligate the Company
to acquire any particular amount of common stock and the program may
be suspended or discontinued at the Company’s discretion
without prior notice. On February 8, 2018, the Board of Directors approved
an increase in the stock repurchase program for up to an
additional 4,522,822 shares of the Company’s common stock. Coupled with the
783,757 shares remaining from the original 2,000,000
share authorization, the increased authorization brought the total authorization
to 5,306,579 shares, representing 10% of the then
outstanding share count. On December 9, 2021, the Board of Directors approved an
additional increase in the number of shares of the
Company’s common stock available in the stock repurchase program for up to an additional
16,861,994 shares, bringing the remaining
authorization under the stock repurchase program to up to 17,699,305
shares, representing approximately 10% of the Company’s then
outstanding shares of common stock. This stock repurchase program has no
termination date.
From the inception of the stock repurchase program through December 31, 2021,
the Company repurchased a total of 5,685,511