Saratoga(US:SAR)2025-05-07 20:09Assets and Investment Performance - Assets Under Management (AUM) as of February 28, 2025, was $978.1 million, a decrease of 14.1% from $1.139 billion as of February 29, 2024, but an increase of 1.9% from $960.1 million as of the last quarter[6]. - Total investment income for the fiscal year 2025 was $148.9 million, an increase of $5.2 million or 3.6% from the previous year, while Q4 investment income was $31.3 million, a decrease of 15.9% year-over-year[6]. - The company originated $41.8 million in one new portfolio company and six follow-ons during Q4, with total originations for the fiscal year at $168.1 million[5]. - The fair value of Saratoga Investment's portfolio was $978.1 million, excluding $204.7 million in cash and cash equivalents[8]. - Cost of investments made during the year ended February 28, 2025, was $168.1 million, including 35 follow-ons and three new portfolio company investments[8]. - Principal repayments during the year ended February 28, 2025, were $312.1 million, including four equity realizations and nine full repayments[8]. - The overall portfolio composition consisted of 88.7% first lien term loans and 7.4% common equity[8]. - The weighted average current yield on the portfolio was 10.8%, with 11.3% on first lien term loans[8]. - Interest income from non-control/non-affiliate investments increased to $119,478,418 in 2025 from $113,521,652 in 2024, an increase of approximately 5.2%[30]. Net Asset Value and Dividends - Net Asset Value (NAV) increased to $392.7 million, up $22.5 million or 6.1% from the previous year, with NAV per share at $25.86[3][5]. - As of February 28, 2025, NAV was $392.7 million, an increase of $22.5 million from $370.2 million as of February 29, 2024[8]. - NAV per share decreased to $25.86 as of February 28, 2025, from $27.12 as of February 29, 2024[8]. - The company declared dividends of $3.31 per share for the fiscal year, a 15.7% increase from $2.86 per share in fiscal 2024, including a special dividend of $0.35 per share[3][5]. - The Board of Directors declared a base quarterly dividend of $0.74 per share for the fiscal quarter ended February 28, 2025[14]. - The company plans to transition to a monthly dividend structure, increasing the quarterly base dividend to $0.75 per share for the first quarter of fiscal 2026, implying a 12.1% dividend yield based on the stock price of $24.86[5]. Financial Performance and Ratios - Net Investment Income (NII) per share for the fiscal year was $3.81, down from $4.10 the previous year, with adjusted NII for Q4 at $0.56 per share, reflecting a decrease of 37.2% year-over-year[3][6]. - The company reported a return on equity (ROE) of 7.5% for the fiscal year, up from 2.5% the previous year[3][5]. - Return on equity (ROE) for the last twelve months was 7.5%, up from 2.5% for the comparable period last year[8]. - The asset coverage ratio improved slightly from 161.1% in February 2024 to 162.9% in February 2025[28]. - Weighted average basic and diluted earnings per common share for the year ended February 28, 2025, was $2.02, compared to $0.71 in the previous year[31]. Cash and Liabilities - The company has $204.7 million in cash available for investments or debt repayment, down from $250.2 million in the previous quarter[5]. - The company’s cash and cash equivalents increased significantly from $8,692,846 in February 2024 to $148,218,491 in February 2025, an increase of approximately 1,603.0%[26]. - Total liabilities decreased from $820,981,727 in February 2024 to $798,878,389 in February 2025, a reduction of about 2.7%[26]. - As of February 28, 2025, the company had a total of $292.2 million of undrawn credit facility borrowing capacity and cash[13]. Investment Income and Realized Gains - Net investment income for the year ended February 28, 2025, was $53,002,603, compared to $56,874,308 for the previous year, representing a decrease of about 5.0%[30]. - Total investment income increased to $148,855,238 for the year ended February 28, 2025, up from $143,719,906 in the prior year, an increase of approximately 3.0%[30]. - The net investment income yield for the three months ended February 28, 2025, was 8.4%, compared to 14.0% for the same period in 2024[39]. - The company reported a net realized loss from investments of $42,029,324 for the year ended February 28, 2025, compared to a gain of $153,583 in the previous year[30]. - The net realized gain from investments for the three months ended February 28, 2025, was $7,169,655, compared to a minimal gain of $2,327 in the same period of 2024[33]. - The net change in unrealized appreciation (depreciation) on investments for the three months ended February 28, 2025, was a loss of $14,766,637, compared to a loss of $7,164,613 in the prior year[33].