Saratoga(US:SAR)2025-01-08 21:05Financial Performance - Adjusted Net Investment Income (NII) per share for Q3 2025 was $0.90, a 1.1% sequential increase, with a Last Twelve Months (LTM) Return on Equity (ROE) of 9.2%[2] - Total Investment Income for the quarter was $35.9 million, down 1.3% year-over-year and down 16.6% from the previous quarter[8] - Net investment income for the three months ended November 30, 2024, was $12,435,655, compared to $14,166,063 for the same period in 2023, reflecting a decrease of approximately 12.2%[30] - For the nine months ended November 30, 2024, total investment income was $117,560,160, an increase from $106,486,533 in the same period of 2023[32] - Net investment income for the nine months ended November 30, 2024, was $44,968,058, slightly higher than $44,089,797 for the same period in 2023[32] - Adjusted net investment income for the three months ended November 30, 2024, was $12,435,655, compared to $13,127,030 in the same period of 2023[35] Asset Management - Assets Under Management (AUM) decreased to $960.1 million, a 13.8% decline from $1.114 billion year-over-year and a 7.7% decline from the previous quarter[8] - Net Asset Value (NAV) increased to $374.9 million, up $15.3 million from $359.6 million year-over-year and up $2.8 million from the previous quarter[8] - The net asset value per share decreased to $26.95 from $27.12 year-over-year[28] - Total assets as of November 30, 2024, amount to $1,219.9 million, compared to $1,191.2 million as of February 29, 2024[26] - Total liabilities as of November 30, 2024, are $845.1 million, an increase from $821.0 million as of February 29, 2024[26] Dividends - The company declared a quarterly dividend of $0.74 per share, a 2.8% increase from $0.72 per share in Q3 2024, along with a special dividend of $0.35 per share[14] - For fiscal Q3 2025, the total dividend per share is $1.09, comprising a base dividend of $0.74 and a special dividend of $0.35[17] - Year-to-date fiscal 2025, the total dividend per share is $2.57, which includes $2.22 in base dividends and $0.35 in special dividends[17] Credit Quality - The overall credit quality remained strong, with 99.7% of credits rated in the highest category, and only 0.3% of fair value and cost in non-accrual status[6] - The portfolio's fair value decreased by $3.5 million due to net realized gains and unrealized depreciation, with 86.8% of investments in first lien debt[12] - The weighted average current yield on the portfolio was 10.8%, with first lien term loans yielding 11.6%[12] Cash and Borrowing Capacity - As of November 30, 2024, Saratoga Investment has a total of $337.7 million in undrawn credit facility borrowing capacity and cash and cash equivalents, including $250.2 million in cash[5] - The company has $136.0 million in undrawn SBA debentures available from its existing SBIC III license, leading to a total undrawn borrowing capacity of $473.7 million[5] - The company has committed undrawn lending commitments of $52.3 million and discretionary funding commitments of $75.7 million as of fiscal 2025 third quarter-end[5] Share Repurchase - As of November 30, 2024, the company has purchased 1,035,203 shares of common stock at an average price of $22.05, totaling approximately $22.8 million under its Share Repurchase Plan[18] - The board of directors has extended the Share Repurchase Plan to January 15, 2026, allowing for the repurchase of up to 1.7 million shares of common stock[19] Originations and Cash Position - Originations for the quarter totaled $84.5 million, with significant repayments of $160.4 million, leading to a net cash position of $250.2 million[6] - The company is evaluating the use of callable long-term liabilities to reduce current debt in light of available cash creating negative arbitrage[4]