Press Release: Saratoga Investment Corp. Announces Fiscal Third Quarter 2025 Financial Results

Dow Jones01-09 05:05
 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.

(END) Dow Jones Newswires

January 08, 2025 16:05 ET (21:05 GMT)

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