Saratoga Investment Corp. Announces Fiscal Third Quarter 2025 Financial Results
Saratoga Investment Corp (NYSE: SAR) reported financial results for Q3 FY2025 ended November 30, 2024. Key highlights include a 1.1% sequential quarter increase in Adjusted NII per share and growth in LTM ROE to 9.2%. The company reported $84.5 million in deployments across two new platforms and eight existing portfolio companies.
Assets Under Management (AUM) stood at $960.1 million, with Net Asset Value (NAV) at $374.9 million. Total investment income was $35.9 million, with Net Investment Income per share at $0.90. The company declared a dividend of $0.74 per share plus a special dividend of $0.35 per share.
The portfolio composition includes 86.8% first lien term loans, with a weighted average current yield of 10.8%. The company maintains strong liquidity with $250.2 million in cash and cash equivalents, and $473.7 million in total undrawn borrowing capacity.
Saratoga Investment Corp (NYSE: SAR) ha riportato i risultati finanziari per il terzo trimestre dell'anno fiscale 2025, terminato il 30 novembre 2024. I principali punti salienti includono un aumento sequenziale dell'1,1% nell'Adjusted NII per azione e una crescita del ROE LTM al 9,2%. L'azienda ha riportato 84,5 milioni di dollari in investimenti su due nuove piattaforme e otto aziende del portafoglio esistente.
Le attività in gestione (AUM) si attestavano a 960,1 milioni di dollari, con un valore patrimoniale netto (NAV) di 374,9 milioni di dollari. Il reddito totale da investimenti è stato di 35,9 milioni di dollari, con un reddito netto da investimenti per azione di 0,90 dollari. L'azienda ha dichiarato un dividendo di 0,74 dollari per azione più un dividendo straordinario di 0,35 dollari per azione.
La composizione del portafoglio include l'86,8% di prestiti garantiti di primo grado, con un rendimento medio ponderato attuale del 10,8%. L'azienda mantiene una forte liquidità con 250,2 milioni di dollari in contante e equivalenti di contante, e 473,7 milioni di dollari in capacità di prestito non utilizzato totale.
Saratoga Investment Corp (NYSE: SAR) informó sobre los resultados financieros del tercer trimestre del año fiscal 2025, que finalizó el 30 de noviembre de 2024. Los aspectos más destacados incluyen un aumento secuencial del 1.1% en el NII ajustado por acción y un crecimiento en el ROE LTM al 9.2%. La compañía reportó 84.5 millones de dólares en inversiones a través de dos nuevas plataformas y ocho empresas de la cartera existente.
Los activos bajo gestión (AUM) se situaron en 960.1 millones de dólares, con un valor neto de activos (NAV) de 374.9 millones de dólares. El ingreso total por inversiones fue de 35.9 millones de dólares, con un ingreso neto por inversión por acción de 0.90 dólares. La compañía declaró un dividendo de 0.74 dólares por acción más un dividendo especial de 0.35 dólares por acción.
La composición de la cartera incluye el 86.8% de préstamos a primer gravamen, con un rendimiento promedio ponderado actual del 10.8%. La compañía mantiene una fuerte liquidez con 250.2 millones de dólares en efectivo y equivalentes de efectivo, y 473.7 millones de dólares en capacidad total de endeudamiento no utilizado.
사라토가 투자 주식회사 (NYSE: SAR)는 2024년 11월 30일 종료된 2025 회계연도 3분기 재무 결과를 발표했습니다. 주요 하이라이트로는 조정된 NII 주당 1.1%의 순증과 LTM ROE가 9.2%로 증가한 것을 포함합니다. 회사는 8450만 달러의 배치액을 두 개의 새로운 플랫폼과 여덟 개의 기존 포트폴리오 기업에 보고했습니다.
운용 자산(AUM)은 9억 601만 달러로 나타났으며, 순 자산 가치(NAV)는 3억 7490만 달러로 집계되었습니다. 총 투자 수익은 3590만 달러이며, 주당 순 투자 수익은 0.90 달러입니다. 회사는 주당 0.74 달러의 배당금과 특별 배당금 0.35 달러를 선언했습니다.
포트폴리오 구성은 86.8%의 초기 담보 대출로 구성되어 있으며, 가중 평균 현재 수익률은 10.8%입니다. 회사는 2억 5020만 달러의 현금 및 현금 동등물과 함께 강력한 유동성을 유지하며, 총 미사용 차입 한도는 4억 7370만 달러입니다.
Saratoga Investment Corp (NYSE: SAR) a publié ses résultats financiers pour le troisième trimestre de l'exercice 2025, qui s'est terminé le 30 novembre 2024. Les faits saillants incluent une augmentation séquentielle de 1,1% du NII ajusté par action et une croissance du ROE LTM à 9,2%. L'entreprise a déclaré 84,5 millions de dollars en déploiements sur deux nouvelles plateformes et huit entreprises du portefeuille existant.
Les actifs sous gestion (AUM) s'élevaient à 960,1 millions de dollars, avec une valeur nette d'actifs (NAV) de 374,9 millions de dollars. Le revenu total des investissements était de 35,9 millions de dollars, avec un revenu net d'investissement par action de 0,90 dollar. L'entreprise a déclaré un dividende de 0,74 dollar par action ainsi qu'un dividende spécial de 0,35 dollar par action.
La composition du portefeuille comprend 86,8% de prêts à premier rang, avec un rendement moyen pondéré actuel de 10,8%. L'entreprise maintient une forte liquidité avec 250,2 millions de dollars en liquidités et équivalents de liquidités, ainsi que 473,7 millions de dollars en capacité totale d'emprunt non utilisée.
Saratoga Investment Corp (NYSE: SAR) hat die finanziellen Ergebnisse für das dritte Quartal des Geschäftsjahres 2025, das am 30. November 2024 endete, veröffentlicht. Zu den wichtigsten Höhepunkten zählen ein sequenzieller Anstieg des bereinigten NII pro Aktie um 1,1% und ein Anstieg des LTM ROE auf 9,2%. Das Unternehmen berichtete von 84,5 Millionen Dollar an Investitionen in zwei neuen Plattformen und acht bestehenden Portfoliounternehmen.
Die verwalteten Vermögenswerte (AUM) beliefen sich auf 960,1 Millionen Dollar, mit einem Nettovermögen (NAV) von 374,9 Millionen Dollar. Das Gesamteinkommen aus Investitionen betrug 35,9 Millionen Dollar, mit einem Nettoinvestitionseinkommen pro Aktie von 0,90 Dollar. Das Unternehmen erklärte eine Dividende von 0,74 Dollar pro Aktie sowie eine Sonderdividende von 0,35 Dollar pro Aktie.
Die Zusammensetzung des Portfolios umfasst 86,8% erste Hypothekendarlehen mit einer gewichteten durchschnittlichen Rendite von 10,8%. Das Unternehmen verfügt über hohe Liquidität mit 250,2 Millionen Dollar in bar und liquiden Mitteln sowie 473,7 Millionen Dollar an insgesamt ungenutzter Kreditaufnahme.
- Increased LTM ROE to 9.2% from 5.8% in previous quarter
- NAV increased by $2.8 million to $374.9 million
- Strong deployment of $84.5 million in new investments
- 99.7% of credits rated in highest category
- Declared special dividend of $0.35 per share in addition to regular $0.74 dividend
- AUM decreased 13.8% YoY to $960.1 million
- Total investment income decreased 16.6% QoQ to $35.9 million
- Portfolio weighted average interest rate declined to 11.8% from 12.6% last quarter
- NAV per share decreased to $26.95 from $27.42 YoY
Insights
This quarterly report showcases Saratoga Investment Corp's resilient performance amid changing market conditions. The adjusted NII per share increased by
Key metrics reveal strong fundamentals: NAV increased to
The substantial cash position of
Portfolio quality metrics remain strong with minimal deterioration. Only two investments remain on non-accrual status, representing just
The leverage profile is conservative at
The BDC sector is navigating a pivotal market environment with early indicators of increased M&A activity in the lower middle market. Saratoga's
The portfolio's mark-to-market adjustments this quarter were modest, with
Reports
Reports Strong Deployments of
__________________________________________
NEW YORK, Jan. 08, 2025 (GLOBE NEWSWIRE) -- Saratoga Investment Corp. (NYSE: SAR) (“Saratoga Investment” or “the Company”), a business development company (“BDC”), today announced financial results for its 2025 fiscal third quarter ended November 30, 2024.
Summary Financial Information
The Company’s summarized financial information is as follows:
For the three months ended and as of | ||||||||
($ in thousands, except per share) | November 30, 2024 | August 31, 2024 | November 30, 2023 | |||||
Assets Under Management (AUM) | 960,093 | 1,040,711 | 1,114,039 | |||||
Net Asset Value (NAV) | 374,866 | 372,054 | 359,559 | |||||
NAV per share | 26.95 | 27.07 | 27.42 | |||||
Total Investment Income | 35,879 | 43,003 | 36,340 | |||||
Net Investment Income (NII) per share | 0.90 | 1.33 | 1.09 | |||||
Adjusted NII per share | 0.90 | 1.33 | 1.01 | |||||
Earnings per share | 0.64 | 0.97 | (0.31) | |||||
Dividends per share (declared) | 0.74* | 0.74 | 0.72 | |||||
Return on Equity – last twelve months | ||||||||
– annualized quarter | ( | |||||||
Originations | 84,490 | 2,584 | 35,612 | |||||
Repayments | 160,404 | 60,140 | 2,144 | |||||
* Actual dividend of
Christian L. Oberbeck, Chairman and Chief Executive Officer of Saratoga Investment, commented, “Highlights this quarter include sequential quarterly increase of adjusted NII excluding the effect of the one-time Knowland interest reserve reversal, improved LTM ROE of
“During the quarter, we began to see the early stages of a potential increase in M&A in the lower middle market, reflected in multiple repayments during the quarter, in addition to significant new originations. As was the case in previous quarters, our strong reputation and differentiated market positioning, combined with our ongoing development of sponsor relationships, continues to create attractive investment opportunities from high quality sponsors.”
“Saratoga’s solid overall performance is reflected in our continued strong key performance indicators this past quarter, including: (i) quarterly ROE of
“At the foundation of our strong operating performance is the high-quality nature, resilience and balance of our
“We continue to remain prudent and discerning in terms of new commitments in the current volatile environment. Originations of
“Our quarter-end cash position grew to
“Our overall credit quality for this quarter remained steady at
Mr. Oberbeck concluded, “As we navigate through a reshaped yield curve environment with decreasing short-term and increasing long-term rates, and an uncertain economic outlook, we remain confident in our experienced management team, robust pipeline, strong leverage structure, and high underwriting standards to continue to steadily increase our portfolio size, quality and investment performance over the long-term to deliver exceptional risk adjusted returns to shareholders.”
Discussion of Financial Results for the Quarter ended November 30, 2024:
- AUM as of November 30, 2024, was
$960.1 million , a decrease of13.8% from$1.11 4 billion as of November 30, 2023, and a decrease of7.7% from$1.04 1 billion as of last quarter. - Total investment income for the three months ended November 30, 2024, was
$35.9 million , a decrease of$0.4 million , or1.3% , from$36.3 million in the three months ended November 30, 2023, and$7.1 million , or16.6% , as compared to$43.0 million for the quarter ended August 31, 2024. This quarter’s investment income decrease as compared to the previous quarter was primarily due to the impact of the non-recurring Knowland interest reserve reversal of$7.9 million , that was previously on non-accrual status, following the investment’s full repayment, including accrued interest, being recognized last quarter, offset by the final interest of$0.3 million received this quarter. Investment income reflects a weighted average interest rate on the core BDC portfolio of11.8% , as compared to12.5% as of November 30, 2023 and12.6% as of August 31, 2024. Approximately two thirds of the interest rate reduction is due to SOFR base rate decreases, and one third due to the higher yields of the recent repayments. - Total expenses for fiscal third quarter 2025, excluding interest and debt financing expenses, base management fees and incentive fees, and income and excise taxes, increased
$0.5 million to$2.8 million as compared to$2.3 million in the third quarter of fiscal year 2023, and increased$0.6 million as compared to$2.2 million for the quarter ended August 31, 2024. This represented0.9% of average total assets on an annualized basis, up from0.7% last quarter and0.8% last year. - Adjusted NII for the quarter ended November 30, 2024, was
$12.4 million , a decrease of$0.7 million , or5.3% , from$13.1 million in the period ended November 30, 2023, and a decrease of$5.8 million , or31.7% , from$18.2 million in the prior quarter. This quarter’s decrease in investment income as compared to last quarter was primarily due to the impact of the non-recurring Knowland interest reserve reversal last quarter as previously noted, offset by higher prepayment and structuring and advisory fees this quarter reflective of the high level of originations and repayments. - NII Yield as a percentage of average net asset value was
13.3% for the quarter ended November 30, 2024. Adjusted for the incentive fee accrual related to net capital gains, the NII Yield was also13.3% . In comparison, adjusted NII Yield was14.6% for the quarter ended November 30, 2023, and19.7% for the quarter ended August 31, 2024. - NAV was
$374.9 million as of November 30, 2024, an increase of$15.3 million from$359.6 million as of November 30, 2023, and an increase of$2.8 million from$372.1 million as of August 31, 2024. - NAV per share was
$26.95 as of November 30, 2024, compared to$27.42 as of November 30, 2023, and$27.07 as of August 31, 2024. - Return on equity (“ROE”) for the last twelve months ended November 30, 2024, was
9.2% , up from6.6% for the comparable period last year, and up from5.8% for the twelve months ended August 31, 2024. ROE on an annualized basis for the quarter ended November 30, 2024 was9.5% . - The weighted average common shares outstanding for the quarter ended November 30, 2024 was 13.8 million, increasing from 13.7 million and 13.1 million for the quarters ended August 31, 2024 and November 30, 2023, respectively.
Portfolio and Investment Activity as of November 30, 2024
- Fair value of Saratoga Investment’s portfolio was
$960.1 million , excluding$250.2 million in cash and cash equivalents, principally invested in 48 portfolio companies, one collateralized loan obligation fund (the “CLO”) and one joint venture fund (the “JV”). - Cost of investments made during the period:
$84.5 million , including eight follow-ons and two investments in new portfolio companies. - Principal repayments during the period:
$160.4 million , including five full repayments of existing investments, plus amortization.- The fair value of the portfolio also decreased by
$3.5 million of net realized gains and unrealized depreciation, consisting of$4.0 million net depreciation in the CLO and JV and$1.4 million net unrealized depreciation in our core non-CLO portfolio, including Pepper Palace and Zollege, offset by net realized gains of$1.2 million on the various repayments and realizations in the quarter, most notably the Invita investment, and$0.7 million of various escrow realized gains, most notably the former Netreo investment. - Since taking over management of the BDC, the Company has generated
$1.20 billion of repayments and sales of investments originated by Saratoga Investment, generating a gross unlevered IRR of15.0% . Total investments originated by Saratoga are$2.24 billion in 119 portfolio companies.
- The fair value of the portfolio also decreased by
- The overall portfolio composition consisted of
86.8% of first lien term loans,0.6% of second lien term loans,1.7% of unsecured term loans,1.9% of structured finance securities, and9.0% of common equity. - The weighted average current yield on Saratoga Investment’s portfolio based on current fair values was
10.8% , which was comprised of a weighted average current yield of11.6% on first lien term loans,16.8% on second lien term loans,10.9% on unsecured term loans,16.7% on CLO subordinated notes and0.0% on equity interests.
Liquidity and Capital Resources
Outstanding Borrowings:
- As of November 30, 2024, Saratoga Investment had a combined
$52.5 million in outstanding combined borrowings under its$65.0 million senior secured revolving credit facility with Encina and its$75.0 million senior secured revolving credit facility with Live Oak. - At the same time, Saratoga Investment had
$175 million SBA debentures in its SBIC II license outstanding,$39.0 million SBA debentures in its SBIC III license outstanding,$269.4 million of listed baby bonds issued,$250.0 million of unsecured unlisted institutional bond issuances, five unlisted issuances of$52.0 million in total, and an aggregate of$250.2 million in cash and cash equivalents.
Undrawn Borrowing Capacity:
- With
$87.5 million available under the two credit facilities and$250.2 million of cash and cash equivalents as of November 30, 2024, Saratoga Investment has a total of$337.7 million of undrawn credit facility borrowing capacity and cash and cash equivalents to be used for new investments or to support existing portfolio companies in the BDC and the SBIC. - In addition, Saratoga Investment has
$136.0 million in undrawn SBA debentures available from its existing SBIC III license. - Availability under the Encina and Live Oak credit facilities can change depending on portfolio company performance and valuation. In addition, certain follow-on investments in SBIC II and the BDC will not qualify for SBIC III funding. Overall outstanding SBIC debentures are limited to
$350.0 million across all active SBIC licenses. - Total Saratoga Investment undrawn borrowing capacity is therefore
$473.7 million . - As of fiscal 2025 third quarter-end, Saratoga Investment had
$52.3 million of committed undrawn lending commitments and$75.7 million of discretionary funding commitments.
Additionally:
- Saratoga Investment has an active equity distribution agreement with Ladenburg Thalmann & Co. Inc., Raymond James and Associates, Inc, Lucid Capital Markets, LLC and Compass Point Research and Trading, LLC, through which the Company may offer for sale, from time to time, up to
$300.0 million of common stock through an ATM offering.- As of November 30, 2024, Saratoga Investment has sold 6,652,316 shares for gross proceeds of
$175.5 million at an average price of$26.37 for aggregate net proceeds of$173.9 million (net of transaction costs). During both the three and nine months ended November 30, 2024, Saratoga Investment sold a total of 108,438 shares for gross proceeds of$2.9 million at an average price of$27.07 for aggregate net proceeds of$2.9 million (net of transaction costs).
- As of November 30, 2024, Saratoga Investment has sold 6,652,316 shares for gross proceeds of
Dividend
On November 7, 2024, Saratoga Investment announced that its Board of Directors declared a quarterly dividend of
Shareholders have the option to receive payment of dividends in cash or receive shares of common stock, pursuant to the Company’s DRIP. Shares issued under the Company’s DRIP is issued at a
The following table highlights Saratoga Investment’s dividend history over the past eleven quarters:
Period (Fiscal Year ends Feb 28) | Base Dividend Per Share | Special Dividend Per Share | Total Dividend Per Share | ||||||
Fiscal Q3 2025 | |||||||||
Fiscal Q2 2025 | - | ||||||||
Fiscal Q1 2025 | - | ||||||||
Year-to-Date Fiscal 2025 | $2.22 | $0.35 | $2.57 | ||||||
Fiscal Q4 2024 | - | ||||||||
Fiscal Q3 2024 | - | ||||||||
Fiscal Q2 2024 | - | ||||||||
Fiscal Q1 2023 | - | ||||||||
Full Year Fiscal 2024 | $2.86 | - | $2.86 | ||||||
Fiscal Q4 2023 | - | ||||||||
Fiscal Q3 2023 | - | ||||||||
Fiscal Q2 2023 | - | ||||||||
Fiscal Q1 2023 | - | ||||||||
Full Year Fiscal 2023 | $2.44 | - | $2.44 | ||||||
Share Repurchase Plan
As of November 30, 2024, the Company purchased 1,035,203 shares of common stock, at the average price of
Of note, in fiscal year 2015, the Company announced the approval of an open market share repurchase plan that allows it to repurchase up to 200,000 shares of its common stock at prices below its NAV as reported in its then most recently published financial statements. Since then, the Share Repurchase Plan has been extended annually, and the Company has periodically increased the amount of shares of common stock that may be purchased under the Share Repurchase Plan, most recently to 1.7 million shares of common stock. On January 7, 2025, its board of directors extended the Share Repurchase Plan for another year to January 15, 2026.
2025 Fiscal Third Quarter Conference Call/Webcast Information
When: | Thursday, January 9, 2025 |
10:00 a.m. Eastern Time (ET) | |
How: | Webcast: Interested parties may access a live webcast of the call and find the Q3 2025 presentation by going to the “Events & Presentations” section of Saratoga Investment Corp.’s investor relations website (Saratoga events and presentations). A replay of the webcast will also be available for a limited time at Saratoga events and presentations. |
Call: | To access the call by phone, please go to this link (registration link) and you will be provided with dial in details. To avoid delays, we encourage participants to dial into the conference call fifteen minutes ahead of the scheduled start time |
About Saratoga Investment Corp.
Saratoga Investment is a specialty finance company that provides customized financing solutions to U.S. middle-market businesses. The Company invests primarily in senior and unitranche leveraged loans and mezzanine debt, and, to a lesser extent, equity to provide financing for change of ownership transactions, strategic acquisitions, recapitalizations and growth initiatives in partnership with business owners, management teams and financial sponsors. Saratoga Investment’s objective is to create attractive risk-adjusted returns by generating current income and long-term capital appreciation from its debt and equity investments. Saratoga Investment has elected to be regulated as a business development company under the Investment Company Act of 1940 and is externally managed by Saratoga Investment Advisors, LLC, an SEC-registered investment advisor focusing on credit-driven strategies. Saratoga Investment Corp. owns two active SBIC-licensed subsidiaries, having surrendered its first license after repaying all debentures for that fund following the end of its investment period and subsequent wind-down. Furthermore, it manages a
Forward Looking Statements
This press release contains historical information and forward-looking statements with respect to the business and investments of the Company, including, but not limited to, the statements about future events or our future performance or financial condition. Forward-looking statements can be identified by the use of forward looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “approximately,” “predicts,” “intends,” “plans,” “estimates,” “anticipates” or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. These statements are not guarantees of future performance, condition or results and involve a number of risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of a number of factors, including, but not limited to: changes in the markets in which we invest; changes in the financial, capital, and lending markets; an economic downturn and its impact on the ability of our portfolio companies to operate and the investment opportunities available to us; the impact of interest rate volatility on our business and our portfolio companies; the impact of supply chain constraints and labor shortages on our portfolio companies; and the elevated levels of inflation and its impact on our portfolio companies and the industries in which we invests, as well as those described from time to time in our filings with the Securities and Exchange Commission.
Any forward-looking statement speaks only as of the date on which it is made. The Company undertakes no duty to update any forward-looking statements made herein or on the webcast/conference call, whether as a result of new information, future developments or otherwise, except as required by law. Readers should not place undue reliance on any forward-looking statements and are encouraged to review the Company’s Annual Report on Form 10-Q for the fiscal quarter ended November 30, 2024 and subsequent filings, including the “Risk Factors” sections therein, with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements.
Contacts:
Saratoga Investment Corporation
535 Madison Avenue, 4th Floor
New York, NY 10022
Henri Steenkamp
Chief Financial Officer
Saratoga Investment Corp.
212-906-7800
Lena Cati
The Equity Group Inc.
212-836-9611
Val Ferraro
The Equity Group Inc.
212-836-9633
Financials
Saratoga Investment Corp. | |||||||||
Consolidated Statements of Assets and Liabilities | |||||||||
November 30, 2024 | February 29, 2024 | ||||||||
(unaudited) | |||||||||
ASSETS | |||||||||
Investments at fair value | |||||||||
Non-control/Non-affiliate investments (amortized cost of | $ | 875,707,680 | $ | 1,019,774,616 | |||||
Affiliate investments (amortized cost of | 39,803,456 | 27,749,137 | |||||||
Control investments (amortized cost of | 44,582,096 | 91,270,036 | |||||||
Total investments at fair value (amortized cost of | 960,093,232 | 1,138,793,789 | |||||||
Cash and cash equivalents | 147,614,810 | 8,692,846 | |||||||
Cash and cash equivalents, reserve accounts | 102,549,213 | 31,814,278 | |||||||
Interest receivable (net of reserve of | 7,462,134 | 10,298,998 | |||||||
Management fee receivable | 327,368 | 343,023 | |||||||
Other assets | 1,871,192 | 1,163,225 | |||||||
Current income tax receivable | 1,931 | 99,676 | |||||||
Total assets | $ | 1,219,919,880 | $ | 1,191,205,835 | |||||
LIABILITIES | |||||||||
Revolving credit facilities | $ | 52,500,000 | $ | 35,000,000 | |||||
Deferred debt financing costs, revolving credit facilities | (1,467,001 | ) | (882,122 | ) | |||||
SBA debentures payable | 214,000,000 | 214,000,000 | |||||||
Deferred debt financing costs, SBA debentures payable | (5,072,871 | ) | (5,779,892 | ) | |||||
20,000,000 | 20,000,000 | ||||||||
Discount on | (35,045 | ) | (112,894 | ) | |||||
Deferred debt financing costs, | (1,460 | ) | (4,777 | ) | |||||
12,000,000 | 12,000,000 | ||||||||
Discount on | (100,675 | ) | (193,175 | ) | |||||
Deferred debt financing costs, | (12,257 | ) | (24,210 | ) | |||||
5,000,000 | 5,000,000 | ||||||||
Deferred debt financing costs, | (33,209 | ) | (74,531 | ) | |||||
175,000,000 | 175,000,000 | ||||||||
Premium on | 363,367 | 564,260 | |||||||
Deferred debt financing costs, | (1,073,336 | ) | (1,708,104 | ) | |||||
75,000,000 | 75,000,000 | ||||||||
Discount on | (233,940 | ) | (313,010 | ) | |||||
Deferred debt financing costs, | (773,704 | ) | (1,033,178 | ) | |||||
15,000,000 | 15,000,000 | ||||||||
Deferred debt financing costs, | (219,726 | ) | (273,449 | ) | |||||
105,500,000 | 105,500,000 | ||||||||
Discount on | (96,638 | ) | (123,782 | ) | |||||
Deferred debt financing costs, | (1,696,769 | ) | (2,224,403 | ) | |||||
46,000,000 | 46,000,000 | ||||||||
Deferred debt financing costs, | (1,013,039 | ) | (1,274,455 | ) | |||||
60,375,000 | 60,375,000 | ||||||||
Deferred debt financing costs, | (1,256,679 | ) | (1,563,594 | ) | |||||
57,500,000 | 57,500,000 | ||||||||
Deferred debt financing costs, | (1,373,467 | ) | (1,680,039 | ) | |||||
Base management and incentive fees payable | 7,521,835 | 8,147,217 | |||||||
Deferred tax liability | 4,581,381 | 3,791,150 | |||||||
Accounts payable and accrued expenses | 2,500,210 | 1,337,542 | |||||||
Interest and debt fees payable | 5,875,852 | 3,582,173 | |||||||
Due to Manager | 796,396 | 450,000 | |||||||
Total liabilities | 845,054,225 | 820,981,727 | |||||||
Commitments and contingencies | |||||||||
NET ASSETS | |||||||||
Common stock, par value | |||||||||
authorized, 13,909,206 and 13,653,476 common shares issued and outstanding, respectively | 13,909 | 13,654 | |||||||
Capital in excess of par value | 377,235,609 | 371,081,199 | |||||||
Total distributable deficit | (2,383,863 | ) | (870,745 | ) | |||||
Total net assets | 374,865,655 | 370,224,108 | |||||||
Total liabilities and net assets | $ | 1,219,919,880 | $ | 1,191,205,835 | |||||
NET ASSET VALUE PER SHARE | $ | 26.95 | $ | 27.12 | |||||
Asset Coverage Ratio | 160.1 | % | 161.1 | % | |||||
Saratoga Investment Corp. | ||||||||||
Consolidated Statements of Operations | ||||||||||
(unaudited) | ||||||||||
For the three months ended | ||||||||||
November 30, 2024 | November 30, 2023 | |||||||||
INVESTMENT INCOME | ||||||||||
Interest from investments | ||||||||||
Interest income: | ||||||||||
Non-control/Non-affiliate investments | $ | 28,301,622 | $ | 28,741,745 | ||||||
Affiliate investments | 458,765 | 1,165,585 | ||||||||
Control investments | 1,220,769 | 2,183,242 | ||||||||
Payment in kind interest income: | ||||||||||
Non-control/Non-affiliate investments | 355,161 | 88,106 | ||||||||
Affiliate investments | 424,357 | 221,348 | ||||||||
Control investments | - | 258,729 | ||||||||
Total interest from investments | 30,760,674 | 32,658,755 | ||||||||
Interest from cash and cash equivalents | 1,627,718 | 521,574 | ||||||||
Management fee income | 775,398 | 819,929 | ||||||||
Dividend income(*): | ||||||||||
Non-control/Non-affiliate investments | 172,557 | 509,365 | ||||||||
Control investments | 948,102 | 1,319,219 | ||||||||
Total dividend from investments | 1,120,659 | 1,828,584 | ||||||||
Structuring and advisory fee income | 740,705 | 312,135 | ||||||||
Other income | 853,481 | 199,368 | ||||||||
Total investment income | 35,878,635 | 36,340,345 | ||||||||
OPERATING EXPENSES | ||||||||||
Interest and debt financing expenses | 13,044,000 | 12,522,357 | ||||||||
Base management fees | 4,412,000 | 4,857,059 | ||||||||
Incentive management fees expense (benefit) | 3,109,834 | 2,243,621 | ||||||||
Professional fees | 670,376 | 434,552 | ||||||||
Administrator expenses | 1,250,000 | 1,075,000 | ||||||||
Insurance | 76,743 | 81,002 | ||||||||
Directors fees and expenses | 83,500 | 80,729 | ||||||||
General and administrative | 759,902 | 660,062 | ||||||||
Income tax expense (benefit) | 36,625 | 219,900 | ||||||||
Total operating expenses | 23,442,980 | 22,174,282 | ||||||||
NET INVESTMENT INCOME | 12,435,655 | 14,166,063 | ||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||
Net realized gain (loss) from investments: | ||||||||||
Non-control/Non-affiliate investments | 4,806,390 | 60,565 | ||||||||
Control investments | 638,355 | - | ||||||||
Net realized gain (loss) from investments | 5,444,745 | 60,565 | ||||||||
Net change in unrealized appreciation (depreciation) on investments: | ||||||||||
Non-control/Non-affiliate investments | (7,026,951 | ) | (1,948,502 | ) | ||||||
Affiliate investments | 179,825 | (1,084,259 | ) | |||||||
Control investments | (2,071,457 | ) | (14,833,592 | ) | ||||||
Net change in unrealized appreciation (depreciation) on investments | (8,918,583 | ) | (17,866,353 | ) | ||||||
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments | (126,875 | ) | (415,894 | ) | ||||||
Net realized and unrealized gain (loss) on investments | (3,600,713 | ) | (18,221,682 | ) | ||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 8,834,942 | $ | (4,055,619 | ) | |||||
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE | $ | 0.64 | $ | (0.31 | ) | |||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 13,789,951 | 13,052,896 | ||||||||
* Certain prior period amounts have been reclassified to conform to current period presentation. | ||||||||||
Saratoga Investment Corp. | ||||||||||
Consolidated Statements of Operations | ||||||||||
(unaudited) | ||||||||||
For the nine months ended | ||||||||||
November 30, 2024 | November 30, 2023 | |||||||||
INVESTMENT INCOME | ||||||||||
Interest from investments | ||||||||||
Interest income: | ||||||||||
Non-control/Non-affiliate investments | $ | 95,247,113 | $ | 83,542,257 | ||||||
Affiliate investments | 1,446,620 | 2,799,735 | ||||||||
Control investments | 4,465,137 | 6,314,550 | ||||||||
Payment in kind interest income: | ||||||||||
Non-control/Non-affiliate investments | 2,073,035 | 706,339 | ||||||||
Affiliate investments | 915,807 | 644,484 | ||||||||
Control investments | 284,590 | 542,581 | ||||||||
Total interest from investments | 104,432,302 | 94,549,946 | ||||||||
Interest from cash and cash equivalents | 3,923,380 | 1,864,956 | ||||||||
Management fee income | 2,372,177 | 2,453,967 | ||||||||
Dividend income(*): | ||||||||||
Non-control/Non-affiliate investments | 584,827 | 621,398 | ||||||||
Control investments | 3,160,742 | 4,679,699 | ||||||||
Total dividend from investments | 3,745,569 | 5,301,097 | ||||||||
Structuring and advisory fee income | 1,186,548 | 1,786,357 | ||||||||
Other income | 1,900,184 | 530,210 | ||||||||
Total investment income | 117,560,160 | 106,486,533 | ||||||||
OPERATING EXPENSES | ||||||||||
Interest and debt financing expenses | 39,135,022 | 36,628,641 | ||||||||
Base management fees | 14,161,025 | 14,262,147 | ||||||||
Incentive management fees expense (benefit) | 11,244,838 | 4,828,442 | ||||||||
Professional fees | 1,795,572 | 1,407,275 | ||||||||
Administrator expenses | 3,458,333 | 2,797,917 | ||||||||
Insurance | 231,936 | 244,804 | ||||||||
Directors fees and expenses | 276,500 | 280,797 | ||||||||
General and administrative | 2,190,613 | 1,957,906 | ||||||||
Income tax expense (benefit) | 98,263 | (11,193 | ) | |||||||
Total operating expenses | 72,592,102 | 62,396,736 | ||||||||
NET INVESTMENT INCOME | 44,968,058 | 44,089,797 | ||||||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||||||
Net realized gain (loss) from investments: | ||||||||||
Non-control/Non-affiliate investments | 5,365,091 | 151,256 | ||||||||
Control investments | (54,564,070 | ) | - | |||||||
Net realized gain (loss) from investments | (49,198,979 | ) | 151,256 | |||||||
Net change in unrealized appreciation (depreciation) on investments: | ||||||||||
Non-control/Non-affiliate investments | 39,654,726 | (15,334,087 | ) | |||||||
Affiliate investments | 1,134,493 | (1,289,895 | ) | |||||||
Control investments | (7,048,216 | ) | (23,302,249 | ) | ||||||
Net change in unrealized appreciation (depreciation) on investments | 33,741,003 | (39,926,231 | ) | |||||||
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments | (747,063 | ) | (577,693 | ) | ||||||
Net realized and unrealized gain (loss) on investments | (16,205,039 | ) | (40,352,668 | ) | ||||||
Realized losses on extinguishment of debt | - | (110,056 | ) | |||||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 28,763,019 | $ | 3,627,073 | ||||||
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE | $ | 2.09 | $ | 0.29 | ||||||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 13,733,008 | 12,355,815 | ||||||||
* Certain prior period amounts have been reclassified to conform to current period presentation. | ||||||||||
Supplemental Information Regarding Adjusted Net Investment Income, Adjusted Net Investment Income Yield and Adjusted Net Investment Income per Share
On a supplemental basis, Saratoga Investment provides information relating to adjusted net investment income, adjusted net investment income yield and adjusted net investment income per share, which are non-GAAP measures. These measures are provided in addition to, but not as a substitute for, net investment income, net investment income yield and net investment income per share. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or reversal attributable to realized and unrealized gains. The management agreement with the Company’s advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses for such year. In addition, Saratoga Investment accrues, but does not pay, a capital gains incentive fee in connection with any unrealized capital appreciation, as appropriate. All capital gains incentive fees are presented within net investment income within the Consolidated Statements of Operations, but the associated realized and unrealized gains and losses that these incentive fees relate to, are excluded. As such, Saratoga Investment believes that adjusted net investment income, adjusted net investment income yield and adjusted net investment income per share is a useful indicator of operations exclusive of any capital gains incentive fee expense or reversal attributable to gains. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. The following table provides a reconciliation of net investment income to adjusted net investment income, net investment income yield to adjusted net investment income yield and net investment income per share to adjusted net investment income per share for the three and nine months ended November 30, 2024 and November 30, 2023.
For the Three Months Ended | ||||||||
November 30, 2024 | November 30, 2023 | |||||||
Net Investment Income | $ | 12,435,655 | $ | 14,166,063 | ||||
Changes in accrued capital gains incentive fee expense/ (reversal) | - | (1,039,033 | ) | |||||
Adjusted net investment income | $ | 12,435,655 | $ | 13,127,030 | ||||
Net investment income yield | 13.3 | % | 15.7 | % | ||||
Changes in accrued capital gains incentive fee expense/ (reversal) | - | (1.1 | )% | |||||
Adjusted net investment income yield (1) | 13.3 | % | 14.6 | % | ||||
Net investment income per share | $ | 0.90 | $ | 1.09 | ||||
Changes in accrued capital gains incentive fee expense/ (reversal) | - | (0.08 | ) | |||||
Adjusted net investment income per share (2) | $ | 0.90 | $ | 1.01 |
(1) Adjusted net investment income yield is calculated as adjusted net investment income divided by average net asset value.
(2) Adjusted net investment income per share is calculated as adjusted net investment income divided by weighted average common shares outstanding.
For the Nine Months Ended | ||||||||
November 30, 2024 | November 30, 2023 | |||||||
Net Investment Income | $ | 44,968,058 | $ | 44,089,797 | ||||
Changes in accrued capital gains incentive fee expense/ (reversal) | - | (4,957,306 | ) | |||||
Adjusted net investment income | $ | 44,968,058 | $ | 39,132,491 | ||||
Net investment income yield | 16.2 | % | 16.7 | % | ||||
Changes in accrued capital gains incentive fee expense/ (reversal) | - | (1.7 | )% | |||||
Adjusted net investment income yield (3) | 16.2 | % | 15.0 | % | ||||
Net investment income per share | $ | 3.27 | $ | 3.57 | ||||
Changes in accrued capital gains incentive fee expense/ (reversal) | - | (0.40 | ) | |||||
Adjusted net investment income per share (4) | $ | 3.27 | $ | 3.17 |
(3) Adjusted net investment income yield is calculated as adjusted net investment income divided by average net asset value.
(4) Adjusted net investment income per share is calculated as adjusted net investment income divided by weighted average common shares outstanding.
FAQ
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