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 ...

Core Insights - Saratoga Investment Corp (SAR) is expected to report Q2 2025 earnings on October 8, 2024, with revenue estimates of $37.12 million and earnings of $0.94 per share [1] - For the full year 2025, revenue is projected at $147.75 million, with earnings expected to be $3.17 per share [1] Revenue and Earnings Estimates - Revenue estimates for 2025 have increased from $145.19 million to $147.75 million over the past 90 days, while 2026 estimates rose from $139.37 million to $141.21 million [2] - Earnings estimates for 2025 have decreased from $3.62 per share to $3.17 per share, and for 2026 from $3.45 per share to $3.23 per share [2] Historical Performance - In the previous quarter ending May 31, 2024, actual revenue was $31.42 million, missing expectations of $36.62 million by 14.21% [3] - Actual earnings were $0.48 per share, falling short of the expected $0.93 per share by 48.5% [3] - Following the earnings release, the stock price increased by 2.72% in one day [3] Price Targets and Recommendations - The average one-year price target for SAR is $25.04, with a high estimate of $29 and a low estimate of $23, indicating a potential upside of 7.75% from the current price of $23.24 [4] - GuruFocus estimates a GF Value of $82.73 for SAR in one year, suggesting a significant upside of 255.98% from the current price [4] - The average brokerage recommendation for SAR is 2.0, indicating an "Outperform" status on a scale where 1 is Strong Buy and 5 is Sell [4]

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 ...

Financial Data and Key Metrics Changes - Saratoga's adjusted net investment income (NII) per share increased by 12% compared to the previous quarter, reflecting a 19% increase in recurring net interest margin driven by a 9% rise in average assets under management [21][28] - The company's total expenses increased from $2.3 million to $2.9 million compared to last year, representing 1.0% of average total assets on an annualized basis, up from 0.8% last year [29] - The net asset value (NAV) was $367.9 million, a decrease of $2.3 million from the last quarter but an increase of $30.4 million from the same quarter last year [30] Business Line Data and Key Metrics Changes - Originations this quarter totaled $39 million, while repayments and amortization amounted to $76 million, leading to a quarter-end cash position of $93.3 million [24] - The credit quality remained high, with 98.3% of credits rated in the highest category, and only 1.6% of fair value in non-accrual status [25] Market Data and Key Metrics Changes - The overall M&A activity for private equity-backed deals is at record lows, impacting new investment opportunities [3][4] - The company noted that competition on pricing is increasing due to the capital sitting on the sidelines and low new deal activity [4][47] Company Strategy and Development Direction - The company is focusing on the lower end of the middle market, which is viewed as a favorable position for credit quality and deal activity [6][47] - Management is actively implementing changes to capital structure and business plans to enhance recovery value [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deploy capital effectively despite the current low deal activity, emphasizing the importance of maintaining high underwriting standards [7][60] - The management team is focused on supporting existing portfolio companies and managing a few challenged credits, with a strong emphasis on maintaining balance sheet strength and liquidity [38][62] Other Important Information - The company has a significant amount of dry powder available, totaling $299 million, which includes cash and undrawn credit facilities [31] - The annualized dividend of $0.74 per share reflects a 13.1% dividend yield, with the company over-earning its dividend by $0.31 this quarter [26][72] Q&A Session Summary Question: Can you provide commentary on the investing environment and repayment activity? - Management noted that while M&A activity is low, there are still opportunities to support existing portfolio companies, and repayment activity may pick up due to aggressive pricing from lenders [3][4] Question: How is the cash position and undistributed income being managed? - The company mentioned a growing cash position and is evaluating the undistributed income in light of potential future investments [8][9] Question: What is the nature of the follow-on investments made this quarter? - Most follow-on investments were for tuck-in acquisitions in existing platforms, reflecting a strategy that has historically worked well [96] Question: Can you elaborate on the non-accrual investments and their status? - Management confirmed that three investments remain on non-accrual, with ongoing efforts to recover capital from these investments [62][64] Question: How does the company view the competitive landscape in the current market? - While some larger private credit platforms are moving down market, the company has not seen significant competition affecting its operations [14][16]

Saratoga Investment Corp. Fiscal First Quarter 2025 Shareholder Presentation July 10, 2024 Steady Long-Term Growth and Performance in Q1 2025 Fiscal First Quarter 2025 Highlights: • 98.3% of loan investments with highest internal rating and three non-accruals (1.6% of fair value / 4.8% of cost) • Remaining total Pepper Palace and Zollege fair value as of quarter-end is $4.4m • Fair value of $1.096 billion is 2.4% below total cost of portfolio, with core non-CLO BDC portfolio, excluding Zollege and Pepper Pa ...