Saratoga Investment Corp.(SAR), a leading investment firm, has r eleased its consolidated financial statements for the first quarter of 2023. The company reported a net loss of $213,259 for the quarter. Despite the loss, Saratoga generated a revenue of $34.6 million during this period. Let's dive into the details of the financial report.**
Overview of Assets and Liabilities
Saratoga Investment Corp. reported total assets of $1.15 billion as of May 31, 2023, compared to $1.08 billion as of February 28, 2023. The company's investments at fair value amounted to $1.08 billion, with non-control/non-affiliate investments accounting for $941 million, affiliate investments at $42.8 million, and control investments at $100.3 million. Cash and cash equivalents totaled $21.9 million, while cash and cash equivalents in reserve accounts amounted to $31.2 million. Other assets, including interest receivable and management fee receivable, stood at $667,906. Current tax receivable amounted to $99,676.
On the liabilities side, Saratoga reported total liabilities of $808.8 million. The company had various notes payable, including 8.75% Notes Payable 2024, 7.00% Notes Payable 2025, 4.375% Notes Payable 2026, and others, with a combined value of $562.8 million. Base management and incentive fees payable amounted to $9.6 million, while other liabilities, such as accounts payable and accrued expenses, totaled $1.9 million. The company also reported a deferred tax liability of $2.8 million.
Net Assets and Net Asset Value per Share
Saratoga Investment Corp. reported net assets of $337.5 million as of May 31, 2023, compared to $346.9 million at the end of the previous quarter. The net asset value per share was $28.48, a decrease from the previous quarter's value of $29.18. Common stock, with a par value of $0.001, had 11,847,742 shares issued and outstanding.
During the three months ended May 31, 2023, Saratoga Investment Corp. generated a total investment income of $34.6 million. Interest from investments contributed $29.6 million, while interest from cash and cash equivalents amounted to $804,289. The company earned $1.8 million from management fee income and $1.4 million from structuring and advisory fee income. Dividend income accounted for $1.8 million, and other income stood at $183,028.
Operating expenses for the quarter totaled $18.7 million. The company incurred interest and debt financing expenses of $11.7 million and base management fees of $4.6 million. Incentive management fees amounted to $103,348. Other expenses, including professional fees, administrator expenses, insurance, directors' fees, and general administrative costs, accounted for $2.4 million.
After accounting for operating expenses, Saratoga Investment Corp. reported net investment income of $16 million for the first quarter of 2023.
Despite reporting a net loss of $213,259 for the first quarter of 2023, Saratoga Investment Corp. generated a revenue of $34.6 million. The company's total assets increased to $1.15 billion, reflecting its investment activities. Saratoga's net assets stood at $337.5 million, with a net asset value per share of $28.48. The company continues to navigate the ever-changing financial landscape, focusing on managing its investments and delivering value to its shareholders.