Core Points - Saratoga Investment Corp. declared a base quarterly dividend of $0.74 per share and a special dividend of $0.35 per share for the fiscal third quarter ending November 30, 2024, fulfilling fiscal 2024 distribution requirements [1][2][3] - The total distributions for the fiscal third quarter amount to $1.09 per share, which is the highest in the company's history [1][2] - The annualized dividend rate implies a 12.7% dividend yield based on a recent stock price of $23.31 per share [2] - The special distribution was driven by substantial overearning of dividends during the previous fiscal year, fulfilling fiscal 2024 spillover requirements [3] - The company has declared three dividends in fiscal year 2025, maintaining industry-leading dividend coverage and yield [3] Dividend History - For fiscal Q3 2025, the base dividend per share is $0.74, special dividend per share is $0.35, totaling $1.09 [4] - Year-to-date fiscal 2025 total dividends amount to $2.57 per share, including the pending special dividend [4] - Historical dividends show a consistent increase, with the base dividend per share rising from $0.53 in fiscal Q1 2023 to $0.74 in fiscal Q2 and Q3 2025 [4] Company Overview - Saratoga Investment is a specialty finance company providing customized financing solutions to U.S. middle-market businesses, primarily investing in senior and unitranche leveraged loans and mezzanine debt [6] - The company aims to create attractive risk-adjusted returns through current income and long-term capital appreciation from its investments [6] - Saratoga Investment is regulated as a business development company and is externally managed by Saratoga Investment Advisors, LLC [6]

Financial Data and Key Metrics Changes - The annualized second quarter dividend was $0.74 per share, implying a 12.7% dividend yield based on the stock price of $23.26 per share on October 7, 2024 [4] - Adjusted net investment income (NII) was $18.2 million, up 38.3% from last year and 26.9% from last quarter, with adjusted NII per share at $1.33, up 23.2% from $1.08 last year [11][14] - The net asset value (NAV) per share was $27.07, down 4.8% from $28.44 last year but up 0.8% from $26.85 last quarter [12][16] Business Line Data and Key Metrics Changes - The portfolio's fair value was $1.04 billion, with 85.2% in first lien debt, and the core non-CLO portfolio was 3.3% above cost [10][20] - The company originated no new portfolio company investments this quarter but had five smaller follow-on investments totaling $2.6 million, while repayments and amortization amounted to $60.1 million [9][10] Market Data and Key Metrics Changes - The lower middle market deal volumes were down significantly year-to-date, with factors such as elevated interest rates and a disconnect between buyers and sellers impacting activity [23][24] - The overall credit quality increased to 99.7% rated in the highest category, with only two investments on non-accrual status [10][28] Company Strategy and Development Direction - The company is focused on maintaining balance sheet strength, liquidity, and NAV preservation, with $385.5 million of investment capacity available [11][19] - The management team emphasizes a disciplined approach to investment decisions and proactive portfolio management, particularly in the current economic environment [26][31] Management's Comments on Operating Environment and Future Outlook - Management noted that while short-term interest rates have decreased, earnings continue to benefit from elevated rates on floating rate assets [5] - The company remains optimistic about future economic opportunities despite current challenges, with a strong operating performance foundation [6][26] Other Important Information - The company has resolved uncertainties related to all four portfolio companies on its watchlist, with significant actions taken to improve management and capital structures [8][32] - The company recognized a $34 million realized loss this quarter due to the restructuring of Pepper Palace, while the Noland investment was fully repaid, contributing positively to NII [34][35] Q&A Session Summary Question: Commentary on market and investment characteristics - Management indicated that the investments reviewed did not meet quality standards due to unique issues such as customer concentration [42] Question: Impact of interest rate changes on NII - A 25 basis point reduction in short-term rates would impact NII by approximately $0.03 quarterly, with the effect not being immediate [44] Question: Recovery potential for Zollege and Pepper Palace - Management expressed cautious optimism about recovery, noting that it would take time and effort to restore these investments to profitability [50] Question: Current spillover balance and dividend sustainability - The company has over $3 per share of spillover that could be considered for future dividends, providing a cushion against declining interest rates [51]

Saratoga Investment Corp. Fiscal Second Quarter 2025 Shareholder Presentation October 9, 2024 Steady Long-Term Growth and Performance in Q2 2025 Fiscal Second Quarter 2025 Highlights: • Continued high quality portfolio and solid performance • Investment quality remains solid • 99.7% of loan investments with highest internal rating and two residual non-accruals (0.3% of fair value / 0.4% of cost) • All four non-accrual or watchlist investments resolved during the quarter with decisive action • Return on equi ...

Saratoga Investment (SAR) came out with quarterly earnings of $1.33 per share, beating the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $1.08 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 41.49%. A quarter ago, it was expected that this business development company would post earnings of $0.97 per share when it actually produced earnings of $1.05, delivering a surprise of 8.25%. Over the last fo ...

On October 8, 2024, Saratoga Investment Corp (SAR, Financial) released its 8-K filing for the fiscal second quarter of 2025, showcasing a commendable financial performance that surpassed analyst expectations. Saratoga Investment Corp, a specialty finance company, provides customized financing solutions to U.S. middle-market businesses, primarily investing in senior and unitranche leveraged loans, mezzanine debt, and equity. Oct 08, 2024 Powered by 0 Performance Highlights and Challenges Saratoga Investment ...

Saratoga Investment Corp (SAR, Financial) is set to release its Q2 2025 earnings on Oct 8, 2024. The consensus estimate for Q2 2025 revenue is $37.12 million, and the earnings are expected to come in at $0.94 per share. The full year 2025's revenue is expected to be $147.75 million and the earnings are expected to be $3.17 per share. More detailed estimate data can be found on the Forecast page. Saratoga Investment Corp (SAR, Financial) Estimates Trends Over the past 90 days, revenue estimates for Saratoga ...

The market expects Saratoga Investment (SAR) to deliver a year-over-year decline in earnings on higher revenues when it reports results for the quarter ended August 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates. The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be r ...

With Hidden Dividend Stocks Plus he scours the world's markets to find solid income opportunities with dividend yields ranging from 5% to 10% or more, backed by strong earnings. Features include: a portfolio with up to 40 holdings at a time including links to associated articles, a dividend calendar, weekly research articles, exclusive ideas, and trade alerts. Learn More . Robert Hauver, MBA, aka "Double Dividend Stocks" was VP of Finance for an industry-leading corporation for 18 years and has been investi ...

This Dividend Represents an Increase of Approximately 4.2% as Compared to Same Second Quarter of Fiscal 2024 NEW YORK, Aug. 22, 2024 (GLOBE NEWSWIRE) -- Saratoga Investment Corp. (NYSE:SAR) ("Saratoga Investment" or "the Company"), a business development company, today announced that its Board of Directors has declared a quarterly dividend of $0.74 per share for the fiscal second quarter ending August 31, 2024, which represents a 4.2% increase as compared to the $0.71 per share distributed in the second qua ...

Saratoga Investment Corp (NYSE:SAR) Q1 2025 Earnings Conference Call July 10, 2024 10:00 AM ET Company Participants Christian Oberbeck - Chairman, CEO & President Henri Steenkamp - CFO and Chief Compliance Officer Michael Grisius - CIO Conference Call Participants Bryce Rowe - B. Riley Casey Alexander - Compass Point Robert Dodd - Raymond James Operator Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Saratoga Investment Corp’s 2025 Fiscal First Quarter Financial Results Conference ...