|
|||||
![]() |
|
New: Introducing “Why Is It Moving?” - lightning-fast, AI-driven explanations of stock moves
Reports 3.6% Increase in NAV and 0.4% Increase in NAV Per Share from Previous Quarter
Quarterly ROE of 13.8% Generates LTM ROE of 9.1% and Beats the BDC Industry Average of 7.3%
Zollege Investment Returned to Accrual Status; Only One Investment Remains on Non-Accrual, Representing 0.2% of Portfolio at Fair Value and 0.3% at Cost
NEW YORK, Oct. 07, 2025 (GLOBE NEWSWIRE) -- Saratoga Investment Corp. (NYSE: SAR) (“Saratoga Investment” or “the Company”), a business development company (“BDC”), today announced financial results for its fiscal second quarter 2026 ended August 31, 2025.
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) | August 31, 2025 | May 31, 2025 | August 31, 2024 | |||
Assets Under Management (AUM) | 995,295 | 968,318 | 1,040,711 | |||
Net Asset Value (NAV) | 410,500 | 396,369 | 372,054 | |||
NAV per share | 25.61 | 25.52 | 27.07 | |||
Total Investment Income | 30,626 | 32,319 | 43,003 | |||
Net Investment Income (NII) per share | 0.58 | 0.66 | 1.33 | |||
Adjusted NII per share | 0.58 | 0.66 | 1.33 | |||
Earnings per share | 0.84 | 0.91 | 0.97 | |||
Dividends per share (declared) | 0.75 | 0.75 | 0.74 | |||
Return on Equity – last twelve months | 9.1 | % | 9.3 | % | 5.8 | % |
– annualized quarter | 13.8 | % | 14.1 | % | 14.4 | % |
Originations | 52,222 | 50,086 | 2,584 | |||
Repayments | 29,824 | 64,330 | 60,140 |
Christian L. Oberbeck, Chairman and Chief Executive Officer of Saratoga Investment, commented, “This quarter’s highlights include continued NAV and NAV per share growth from the previous quarter and year, a strong return on equity beating the industry, net originations of $22.4 million, and importantly, continued solid performance from the core BDC portfolio in a volatile macro environment, including the return of our Zollege investment to accrual status reducing our non-accrual investments to just one, representing only 0.2% of portfolio fair value.”
“Continuing our strong dividend distribution history, we announced a base dividend of $0.25 per share per month, or $0.75 per share in aggregate for the third quarter of fiscal 2026. Our annualized second quarter dividend of $0.75 per share represents a 12.3% yield based on the stock price of $24.41 as of October 6, 2025, offering strong current income from an investment value standpoint. Our Q2 adjusted NII of $0.58 per share continues to reflect the impact of the past twelve-month trend of decreasing levels of short-term interest rates and spreads on Saratoga Investment’s largely floating rate assets, and the continued impact of the recent repayments. This has resulted in $200.8 million of cash, as of August 31, 2025, available to be deployed accretively in investments or repay existing debt.”
“During the quarter, we continued to see very competitive market dynamics. Despite these macro factors, our portfolio again saw multiple debt repayments in Q2, in addition to solid new originations. We originated $52.2 million in three follow-ons, as well as closing on new investments in multiple BB and BBB structured credit securities. 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, which is continuing post quarter-end with three new portfolio company investments either closed or in closing in Q3 so far, which further improves our run rate earnings. We continue to remain prudent and discerning in terms of new commitments in the current volatile environment”
“Saratoga’s overall performance is reflected in our key performance indicators this past quarter, including: (i) Q2 ROE of 13.8% generating LTM ROE of 9.1%, beating the BDC industry average of 7.3%, (ii) deleveraging from 159.6% regulatory leverage last year to 166.6% this year, due in part to the NAV increase of $38.4 million during the last twelve months ($372.1 million to $410.5 million), (iii) an increase in NAV per share of $0.09 per share from $25.52 per share the previous quarter to $25.61 per share, (iv) an increase in AUM of $27.0 million, or 2.8%, to $995.3 million from the previous quarter, (v) adjusted NII of $0.58 per share versus $0.66 per share last quarter, (vi) EPS of $0.84 per share versus $0.91 per share last quarter, and (vii) dividends of $0.75 per share, up $0.01 per share from $0.74 per share last year.
“At the foundation of our strong operating performance is the high-quality nature, resilience and balance of our $995.3 million portfolio in the current environment. Where we have encountered significant challenges in four of our portfolio companies over the past two years, we have completed decisive actions and resolved all four of these situations through two sales and two restructurings. And one of the restructurings, Zollege, is seeing improved financial performance and has been returned to accrual status this quarter. Our current core non-CLO portfolio was marked up by $3.9 million this quarter, and the CLO and JV markdown of $0.3 million was largely offset by $0.2 million of net appreciation in our new BB investments and further net realized gains of $0.1 million from an escrow payment on our Modern Campus investment. This all resulted in the fair value of the portfolio increasing by $3.8 million during the quarter. As of quarter-end, our total portfolio fair value was 1.7% below cost, while our core non-CLO portfolio was 2.1% above cost. The overall financial performance and solid earnings power of our current portfolio reflects strong underwriting in our growing portfolio companies and sponsors in well-selected industry segments.”
“During the quarter, our net interest margin decreased from $15.1 million last quarter to $13.1 million, driven by a $2.1 million decrease in non-CLO interest income. This decrease was due to (i) average assets decreasing approximately $11.0 million, or 1.1%, to $954.0 million, (ii) the timing of originations and repayments closings during the current and previous quarter, with repayments more fully reflected in earnings and the full impact of new originations still having to flow through, and (iii) the absolute yields on the non-CLO portfolio decreasing from 11.5% to 11.3% as a result of SOFR rates resetting from earlier reductions combined with the impact of lower yielding new originations during the quarter. In addition, the full-period impact of the 0.2 million shares issued through the ATM program in Q1, and the partial impact of the additional 0.4 million shares issued in Q2, resulted in a $0.02 per share dilution to NII per share.”
“Though our quarter-end cash position decreased from $224.3 million last quarter to $200.8 million in the current quarter, we have maintained a strong level of cash availability in a very volatile macro environment. This level of cash improves our current regulatory leverage of 166.6% to 186.5%, netting available cash against outstanding debt.”
“Our overall credit quality for this quarter remained steady at 99.7% of credits rated in our highest category. There is just one investment remaining on non-accrual status, Pepper Palace, which has been successfully restructured, representing only 0.2% and 0.3% of fair value and cost, respectively. With 84.3% of our investments at quarter-end in first lien debt and generally supported by strong enterprise values and balance sheets in industries that have historically performed well in stressed situations, we believe our portfolio and company leverage is well structured for future economic conditions and uncertainty.”
Mr. Oberbeck concluded, “While geopolitical tensions and macroeconomic uncertainty remain ongoing factors, we are encouraged by the resilience of our portfolio and the continued strength of our pipeline. Backed by our experienced management team, disciplined underwriting, and solid balance sheet, we are well positioned to further expand the size and quality of our portfolio, drive consistent investment performance, and deliver attractive risk-adjusted returns for our shareholders over the long term.”
Discussion of Financial Results for the Quarter ended August 31, 2025:
Portfolio and Investment Activity for the Quarter Ended August 31, 2025
Portfolio Update:
Liquidity and Capital Resources
Outstanding Borrowings:
Undrawn Borrowing Capacity:
Additionally:
Dividend
On September 11, 2025, Saratoga Investment announced that its Board of Directors declared a base quarterly dividend of $0.75 per share in aggregate for the third quarter of fiscal 2026, declaring the following three monthly $0.25 per share dividends for the quarter ended November 30, 2025:
Month | Amount Per Share | Record Date | Payment Date | ||||
September 2025 | $0.25 | October 7, 2025 | October 23, 2025 | ||||
October 2025 | $0.25 | November 4, 2025 | November 20, 2025 | ||||
November 2025 | $0.25 | December 2, 2025 | December 18, 2025 |
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 5% discount to the average market price per share at the close of trading on the ten trading days immediately preceding (and including) the payment date.
The following table highlights Saratoga Investment’s dividend history over the past fifteen quarters:
Period (Fiscal Year ends Feb) | Base Dividend Per Share | Special Dividend Per Share | Total Dividend Per Share | |||||
Fiscal Q3 2026 (November 2025) | $0.25 | - | $0.25 | |||||
Fiscal Q3 2026 (October 2025) | $0.25 | - | $0.25 | |||||
Fiscal Q3 2026 (September 2025) | $0.25 | - | $0.25 | |||||
Fiscal Q2 2026 (August 2025) | $0.25 | - | $0.25 | |||||
Fiscal Q2 2026 (July 2025) | $0.25 | - | $0.25 | |||||
Fiscal Q2 2026 (June 2025) | $0.25 | - | $0.25 | |||||
Fiscal Q1 2026 (May 2025) | $0.25 | - | $0.25 | |||||
Fiscal Q1 2026 (April 2025) | $0.25 | - | $0.25 | |||||
Fiscal Q1 2026 (March 2025) | $0.25 | - | $0.25 | |||||
Full Year Fiscal 2026 | $2.25 | - | $2.25 | |||||
Fiscal Q4 2025 | $0.74 | - | $0.74 | |||||
Fiscal Q3 2025 | $0.74 | $0.35 | $1.09 | |||||
Fiscal Q2 2025 | $0.74 | - | $0.74 | |||||
Fiscal Q1 2025 | $0.74 | - | $0.74 | |||||
Full Year Fiscal 2025 | $2.96 | $0.35 | $3.31 | |||||
Fiscal Q4 2024 | $0.73 | - | $0.73 | |||||
Fiscal Q3 2024 | $0.72 | - | $0.72 | |||||
Fiscal Q2 2024 | $0.71 | - | $0.71 | |||||
Fiscal Q1 2024 | $0.70 | - | $0.70 | |||||
Full Year Fiscal 2024 | $2.86 | - | $2.86 | |||||
Fiscal Q4 2023 | $0.69 | - | $0.69 | |||||
Fiscal Q3 2023 | $0.68 | - | $0.68 | |||||
Fiscal Q2 2023 | $0.54 | - | $0.54 | |||||
Fiscal Q1 2023 | $0.53 | - | $0.53 | |||||
Full Year Fiscal 2023 | $2.44 | - | $2.44 |
Share Repurchase Plan
As of August 31, 2025, the Company purchased 1,035,203 shares of common stock, at the average price of $22.05 for approximately $22.8 million pursuant to its existing Share Repurchase Plan. During the three and six months ended August 31, 2025, the Company did not purchase any shares of common stock pursuant to its Share Repurchase Plan.
Previously, in fiscal year 2015, the Company announced the approval of an open market share repurchase plan (the “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.
Fiscal Second Quarter 2026 Conference Call/Webcast Information
When: | October 8, 2025 10:00 a.m. Eastern Time (ET) |
How: | Webcast: Interested parties may access a live webcast of the call and find the Q2 2026 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, as amended, 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 $650 million collateralized loan obligation (“CLO”) fund that is in wind-down and co-manages a joint venture (“JV”) fund that owns a $400 million collateralized loan obligation (“JV CLO”) fund. It also owns 52% of the Class F and 100% of the subordinated notes of the CLO, 87.5% of both the unsecured loans and membership interests of the JV and 87.5% of the Class E notes of the JV CLO. The Company’s diverse funding sources, combined with a permanent capital base, enable Saratoga Investment to provide a broad range of financing solutions.
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 or a recession 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 uncertainty associated with the imposition of tariffs and trade barriers and changes in trade policy and its impact on our portfolio companies and the global economy; 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-K for the fiscal year ended February 28, 2025 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
August 31, 2025 | February 28, 2025 | ||||||
(unaudited) | |||||||
ASSETS | |||||||
Investments at fair value | |||||||
Non-control/Non-affiliate investments (amortized cost of $886,285,227 and $886,071,934, respectively) | $ | 898,724,347 | $ | 897,660,110 | |||
Affiliate investments (amortized cost of $50,318,387 and $38,203,811, respectively) | 52,755,641 | 40,547,432 | |||||
Control investments (amortized cost of $76,035,288 and $75,817,587, respectively) | 43,815,022 | 39,870,208 | |||||
Total investments at fair value (amortized cost of $1,012,638,902 and $1,000,093,332, respectively) | 995,295,010 | 978,077,750 | |||||
Cash and cash equivalents | 105,660,178 | 148,218,491 | |||||
Cash and cash equivalents, reserve accounts | 95,144,529 | 56,505,433 | |||||
Interest receivable (net of reserve of $244,970 and $210,319, respectively) | 8,617,063 | 7,477,468 | |||||
Management fee receivable | 278,769 | 314,193 | |||||
Other assets | 1,215,885 | 950,522 | |||||
Total assets | $ | 1,206,211,434 | $ | 1,191,543,857 | |||
LIABILITIES | |||||||
Revolving credit facilities | $ | 70,000,000 | $ | 52,500,000 | |||
Deferred debt financing costs, revolving credit facilities | (833,266 | ) | (1,254,516 | ) | |||
SBA debentures payable | 170,000,000 | 170,000,000 | |||||
Deferred debt financing costs, SBA debentures payable | (3,621,941 | ) | (4,041,026 | ) | |||
8.75% Notes Payable 2025 | - | 20,000,000 | |||||
Discount on 8.75% notes payable 2025 | - | (9,055 | ) | ||||
Deferred debt financing costs, 8.75% notes payable 2025 | - | (374 | ) | ||||
7.00% Notes Payable 2025 | 12,000,000 | 12,000,000 | |||||
Discount on 7.00% notes payable 2025 | (2,622 | ) | (68,589 | ) | |||
Deferred debt financing costs, 7.00% notes payable 2025 | (348 | ) | (8,345 | ) | |||
7.75% Notes Payable 2025 | - | 5,000,000 | |||||
Deferred debt financing costs, 7.75% notes payable 2025 | - | (19,685 | ) | ||||
4.375% Notes Payable 2026 | 175,000,000 | 175,000,000 | |||||
Premium on 4.375% notes payable 2026 | 164,326 | 287,848 | |||||
Deferred debt financing costs, 4.375% notes payable 2026 | (440,876 | ) | (865,593 | ) | |||
4.35% Notes Payable 2027 | 75,000,000 | 75,000,000 | |||||
Discount on 4.35% notes payable 2027 | (147,988 | ) | (213,424 | ) | |||
Deferred debt financing costs, 4.35% notes payable 2027 | (515,174 | ) | (688,786 | ) | |||
6.25% Notes Payable 2027 | 15,000,000 | 15,000,000 | |||||
Deferred debt financing costs, 6.25% notes payable 2027 | (166,199 | ) | (202,144 | ) | |||
6.00% Notes Payable 2027 | 105,500,000 | 105,500,000 | |||||
Discount on 6.00% notes payable 2027 | (68,143 | ) | (87,295 | ) | |||
Deferred debt financing costs, 6.00% notes payable 2027 | (1,171,054 | ) | (1,524,089 | ) | |||
8.00% Notes Payable 2027 | 46,000,000 | 46,000,000 | |||||
Deferred debt financing costs, 8.00% notes payable 2027 | (752,573 | ) | (927,484 | ) | |||
8.125% Notes Payable 2027 | 60,375,000 | 60,375,000 | |||||
Deferred debt financing costs, 8.125% notes payable 2027 | (950,880 | ) | (1,156,234 | ) | |||
8.50% Notes Payable 2028 | 57,500,000 | 57,500,000 | |||||
Deferred debt financing costs, 8.50% notes payable 2028 | (1,068,010 | ) | (1,273,134 | ) | |||
Base management and incentive fees payable | 6,645,499 | 6,230,944 | |||||
Deferred tax liability | 4,559,105 | 4,889,329 | |||||
Payable from open trades | 2,000,000 | - | |||||
Accounts payable and accrued expenses | 1,915,770 | 1,676,335 | |||||
Interest and debt fees payable | 3,160,274 | 3,909,517 | |||||
Due to Manager | 630,966 | 349,189 | |||||
Total liabilities | 795,711,866 | 798,878,389 | |||||
Commitments and contingencies (See Note 9) | |||||||
NET ASSETS | |||||||
Common stock, par value $0.001, 100,000,000 common shares | |||||||
authorized, 16,027,312 and 15,183,078 common shares issued and outstanding, respectively | 16,027 | 15,183 | |||||
Capital in excess of par value | 434,306,847 | 412,913,597 | |||||
Total distributable deficit | (23,823,306 | ) | (20,263,312 | ) | |||
Total net assets | 410,499,568 | 392,665,468 | |||||
Total liabilities and net assets | $ | 1,206,211,434 | $ | 1,191,543,857 | |||
NET ASSET VALUE PER SHARE | $ | 25.61 | $ | 25.86 | |||
Asset Coverage Ratio | 166.6 | % | 162.9 | % |
Saratoga Investment Corp. | |||||||
Consolidated Statements of Operations | |||||||
(unaudited) | |||||||
For the three months ended | |||||||
August 31, 2025 | August 31, 2024 | ||||||
INVESTMENT INCOME | |||||||
Interest from investments | |||||||
Interest income: | |||||||
Non-control/Non-affiliate investments | $ | 23,697,449 | $ | 35,721,214 | |||
Affiliate investments | 684,587 | 491,015 | |||||
Control investments | 1,191,555 | 1,247,256 | |||||
Payment in kind interest income: | |||||||
Non-control/Non-affiliate investments | 121,084 | 1,654,044 | |||||
Affiliate investments | 604,880 | 250,346 | |||||
Control investments | 77,880 | 1,277 | |||||
Total interest from investments | 26,377,435 | 39,365,152 | |||||
Interest from cash and cash equivalents | 2,360,397 | 1,671,031 | |||||
Management fee income | 663,632 | 792,323 | |||||
Dividend income: | |||||||
Non-control/Non-affiliate investments | 127,689 | 162,779 | |||||
Control investments | 903,439 | 915,590 | |||||
Total dividend from investments | 1,031,128 | 1,078,369 | |||||
Structuring and advisory fee income | 221,600 | 35,000 | |||||
Other income | (28,436 | ) | 61,500 | ||||
Total investment income | 30,625,756 | 43,003,375 | |||||
OPERATING EXPENSES | |||||||
Interest and debt financing expenses | 12,372,030 | 13,128,941 | |||||
Base management fees | 4,374,324 | 4,766,445 | |||||
Incentive management fees expense (benefit) | 2,271,173 | 4,550,270 | |||||
Professional fees | 649,899 | 125,886 | |||||
Administrator expenses | 1,283,333 | 1,133,333 | |||||
Insurance | 74,310 | 77,597 | |||||
Directors fees and expenses | 118,500 | 80,000 | |||||
General and administrative | 412,769 | 821,584 | |||||
Income tax expense (benefit) | (11,315 | ) | 121,921 | ||||
Total operating expenses | 21,545,023 | 24,805,977 | |||||
NET INVESTMENT INCOME | 9,080,733 | 18,197,398 | |||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | |||||||
Net realized gain (loss) from investments: | |||||||
Non-control/Non-affiliate investments | 52,691 | 558,701 | |||||
Control investments | - | (34,007,428 | ) | ||||
Net realized gain (loss) from investments | 52,691 | (33,448,727 | ) | ||||
Net change in unrealized appreciation (depreciation) on investments: | |||||||
Non-control/Non-affiliate investments | 478,796 | 32,524,852 | |||||
Affiliate investments | 139,577 | 353,445 | |||||
Control investments | 3,109,340 | (4,150,142 | ) | ||||
Net change in unrealized appreciation (depreciation) on investments | 3,727,713 | 28,728,155 | |||||
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments | 423,998 | (159,187 | ) | ||||
Net realized and unrealized gain (loss) on investments | 4,204,402 | (4,879,759 | ) | ||||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 13,285,135 | $ | 13,317,639 | |||
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE | $ | 0.84 | $ | 0.97 | |||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 15,775,387 | 13,726,142 |
Saratoga Investment Corp. | ||||||
Consolidated Statements of Operations | ||||||
(unaudited) | ||||||
For the six months ended | ||||||
August 31, 2025 | August 31, 2024 | |||||
INVESTMENT INCOME | ||||||
Interest from investments | ||||||
Interest income: | ||||||
Non-control/Non-affiliate investments | $ | 49,162,112 | $ | 66,945,491 | ||
Affiliate investments | 1,280,211 | 987,855 | ||||
Control investments | 2,382,216 | 3,244,368 | ||||
Payment in kind interest income: | ||||||
Non-control/Non-affiliate investments | 289,313 | 1,717,874 | ||||
Affiliate investments | 1,189,629 | 491,450 | ||||
Control investments | 77,880 | 284,590 | ||||
Total interest from investments | 54,381,361 | 73,671,628 | ||||
Interest from cash and cash equivalents | 4,387,608 | 2,295,662 | ||||
Management fee income | 1,368,807 | 1,596,779 | ||||
Dividend income: | ||||||
Non-control/Non-affiliate investments | 689,872 | 412,270 | ||||
Control investments | 1,339,857 | 2,212,640 | ||||
Total dividend from investments | 2,029,729 | 2,624,910 | ||||
Structuring and advisory fee income | 485,975 | 445,843 | ||||
Other income | 290,893 | 1,046,703 | ||||
Total investment income | 62,944,373 | 81,681,525 | ||||
OPERATING EXPENSES | ||||||
Interest and debt financing expenses | 24,823,895 | 26,091,022 | ||||
Base management fees | 8,707,656 | 9,749,025 | ||||
Incentive management fees expense (benefit) | 4,807,686 | 8,135,004 | ||||
Professional fees | 1,349,099 | 1,125,196 | ||||
Administrator expenses | 2,533,333 | 2,208,333 | ||||
Insurance | 148,620 | 155,193 | ||||
Directors fees and expenses | 250,000 | 193,000 | ||||
General and administrative | 1,058,180 | 1,430,711 | ||||
Income tax expense (benefit) | 43,139 | 61,638 | ||||
Total operating expenses | 43,721,608 | 49,149,122 | ||||
NET INVESTMENT INCOME | 19,222,765 | 32,532,403 | ||||
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS | ||||||
Net realized gain (loss) from investments: | ||||||
Non-control/Non-affiliate investments | 2,315,675 | 558,701 | ||||
Control investments | 638,355 | (55,202,425 | ) | |||
Net realized gain (loss) from investments | 2,954,030 | (54,643,724 | ) | |||
Net change in unrealized appreciation (depreciation) on investments: | ||||||
Non-control/Non-affiliate investments | 850,944 | 46,681,677 | ||||
Affiliate investments | 93,633 | 954,668 | ||||
Control investments | 3,727,113 | (4,976,759 | ) | |||
Net change in unrealized appreciation (depreciation) on investments | 4,671,690 | 42,659,586 | ||||
Net change in provision for deferred taxes on unrealized (appreciation) depreciation on investments | 368,913 | (620,188 | ) | |||
Net realized and unrealized gain (loss) on investments | 7,994,633 | (12,604,326 | ) | |||
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS | $ | 27,217,398 | $ | 19,928,077 | ||
WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE | $ | 1.75 | $ | 1.45 | ||
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED | 15,560,114 | 13,704,759 |
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, respectively. These non-GAAP measures should only be used to evaluate the Company’s results of operations in conjunction with their corresponding GAAP measures. 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, and may be different from non-GAAP measures used by other companies. In addition, these non-GAAP measures are not based on any comprehensive set of accounting rules or principles. Pursuant to the requirements of Item 10(e) of Regulation S-K, 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 six months ended August 31, 2025 and 2024.
For the Three Months Ended | |||||||
August 31, 2025 | August 31, 2024 | ||||||
Net Investment Income | $ | 9,080,733 | $ | 18,197,398 | |||
Changes in accrued capital gains incentive fee expense/ (reversal) | - | - | |||||
Adjusted net investment income | $ | 9,080,733 | $ | 18,197,398 | |||
Net investment income yield | 9.0 | % | 19.7 | % | |||
Changes in accrued capital gains incentive fee expense/ (reversal) | - | - | |||||
Adjusted net investment income yield (1) | 9.0 | % | 19.7 | % | |||
Net investment income per share | $ | 0.58 | $ | 1.33 | |||
Changes in accrued capital gains incentive fee expense/ (reversal) | - | - | |||||
Adjusted net investment income per share (2) | $ | 0.58 | $ | 1.33 |
(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 Six Months Ended | |||||||
August 31, 2025 | August 31, 2024 | ||||||
Net Investment Income | $ | 19,222,765 | $ | 32,532,403 | |||
Changes in accrued capital gains incentive fee expense/ (reversal) | - | - | |||||
Adjusted net investment income | $ | 19,222,765 | $ | 32,532,403 | |||
Net investment income yield | 9.6 | % | 17.6 | % | |||
Changes in accrued capital gains incentive fee expense/ (reversal) | - | - | |||||
Adjusted net investment income yield(3) | 9.6 | % | 17.6 | % | |||
Net investment income per share | $ | 1.24 | $ | 2.37 | |||
Changes in accrued capital gains incentive fee expense/ (reversal) | - | - | |||||
Adjusted net investment income per share(4) | $ | 1.24 | $ | 2.37 |
(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.
Oct-07 | |
Oct-07 | |
Oct-07 | |
Oct-06 | |
Sep-26 | |
Sep-11 | |
Aug-05 | |
Jul-29 | |
Jul-23 | |
Jul-10 | |
Jul-08 | |
Jul-08 | |
Jul-08 | |
Jun-20 | |
Jun-12 |
Join thousands of traders who make more informed decisions with our premium features. Real-time quotes, advanced visualizations, backtesting, and much more.
Learn more about FINVIZ*Elite