ORC Announces Second Quarter 2022 Results
Page 10
August 4, 2022
($ in thousands)
Returns for the Quarter Ended June 30, 2022
Structured Security Portfolio
Pass-Through
Interest-Only
Inverse Interest
Portfolio
Securities
Only Securities
Sub-total
Total
Income (net of borrowing cost)
$
23,714
$
3,107
$
267
$
3,374
$
27,088
Realized and unrealized (losses) / gains
(193,657)
8,079
(463)
7,616
(186,041)
Derivative gains
103,758
n/a
n/a
n/a
103,758
Total Return
$
(66,185)
$
11,186
$
(196)
$
10,990
$
(55,195)
Beginning Capital Allocation
$
335,853
$
206,617
$
1,460
$
208,077
$
543,930
Return on Invested Capital for the Quarter
(1)
(19.7)%
5.4%
(13.4)%
5.3%
(10.1)%
Average Capital Allocation
(2)
$
313,198
$
190,186
$
1,208
$
191,394
$
504,592
Return on Average Invested Capital for the Quarter
(3)
(21.1)%
5.9%
(16.2)%
5.7%
(10.9)%
(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 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 June
30, 2022, 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. We did not issue any
shares under the October 2021 Equity Distribution Agreement during the
six months ended June 30, 2022.
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
Company’s then outstanding share count. On December 9, 2021, the Board of Directors
approved an 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 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 June 30, 2022,
the Company repurchased a total of 6,561,810 shares
at an aggregate cost of approximately $42.6 million, including commissions and fees,
for a weighted average price of $6.49 per share.
During the three months ended June 30, 2022, the Company repurchased a total of
876,299 shares at an aggregate cost of
approximately $2.2 million, including commissions and fees, for a weighted average
price of $2.53 per share.