Saratoga Investment Corp. (SAR), a provider of financing solutio ns to middle-market companies, announced its financial results for the third quarter ended May 31, 2023. The company reported a net decrease in assets and recorded $34.6 million in investment income during the quarter.
Financial Highlights
Saratoga Investment Corp. experienced a net decrease in assets, with total assets amounting to $1.15 billion as of May 31, 2023, compared to $1.08 billion as of February 28, 2023.
Investment income for the third quarter reached $34.6 million, reflecting an increase compared to $18.7 million in the same period last year.
Net investment income for the quarter amounted to $16.0 million, demonstrating a significant improvement compared to $8.0 million in Q3 2022.
Investment Performance
During the third quarter of 2023, Saratoga Investment Corp. maintained a diverse investment portfolio. The company's investments at fair value totaled $1.08 billion, comprising non-control/non-affiliate investments, affiliate investments, and control investments. The increase in investment income was primarily driven by interest from investments, dividend income, and structuring and advisory fee income.
Operating Expenses and Net Asset Value
Saratoga Investment Corp. reported operating expenses of $18.7 million for the quarter, primarily composed of interest and debt financing expenses, base management fees, and professional fees. The company's net increase (decrease) in net assets resulting from operations was $(213,259) for the quarter, reflecting a slight decrease.
The net asset value per share as of May 31, 2023, was $28.48, compared to $29.18 as of February 28, 2023. The asset coverage ratio stood at 155.7%, indicating a healthy level of coverage for the company's liabilities.
Commenting on the results, Christian L. Oberbeck, Chairman and Chief Executive Officer of Saratoga Investment Corp., stated, "We are pleased with our investment performance during the third quarter and the steady income generated from our diversified portfolio. Our focus remains on maintaining a strong balance sheet and delivering attractive risk-adjusted returns to our shareholders."
Saratoga Investment Corp. continues to actively manage its investment portfolio, seeking opportunities to deploy capital in middle-market companies while maintaining a disciplined approach to risk management.
Saratoga Investment Corp. is a provider of financing solutions to middle-market companies. With a focus on senior and unitranche debt, as well as equity investments, Saratoga partners with businesses to support their growth and capital needs. The company's team of professionals brings extensive experience in structuring and underwriting flexible financing solutions tailored to the unique requirements of each investment. Saratoga Investment Corp. aims to create value for its shareholders by generating current income and long-term capital appreciation.