Q2 2025 Saratoga Investment Corp Earnings Call Transcript

Oct 09, 2024 / 02:00PM GMT

Release Date Price: $24.84 (+5.34%)

Transcript 8-K10-Q

Key Points

Positve

Saratoga Investment Corp (SAR) successfully resolved all four non-accrual investments, improving portfolio stability.
The company reported a significant increase in adjusted net investment income (NII), up 38.3% from last year.
Saratoga's NAV per share increased by 0.8% from the previous quarter, indicating growth in shareholder value.
The company maintained a strong liquidity position with $385.5 million in investment capacity, supporting future growth.
Saratoga's portfolio is predominantly composed of first lien debt, providing a strong foundation in challenging economic conditions.

Negative

Saratoga's total return over the last 12 months was only 2%, underperforming the BDC index of 15%.
The company faced markdowns in its CLO and JV investments, resulting in a $2.7 million unrealized depreciation.
Lower middle market deal activity remains historically low, impacting new investment opportunities.
The company did not originate any new portfolio company investments during the quarter, reflecting market challenges.
Saratoga's stock is trading at a discount to NAV, raising questions about potential share repurchases.

Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Saratoga Investment Corp.'s 2025 fiscal second-quarter financial results conference call. Please note that today's call is being recorded. (Operator Instructions)

At this time, I'd like to turn the call over to Saratoga Investments Chief Financial and Chief Compliance Officer; Mr. Henry Steenkamp. Please go ahead.

Henri Steenkamp

Saratoga Investment Corp - Chief Financial Officer, Chief Compliance Officer, Treasurer, Secretary, Director

Thank you. I would like to welcome everyone to Saratoga Investment Corp's 2025 fiscal second-quarter earnings conference call.

Today's conference call includes forward-looking statements and projections. We ask you to refer to our most recent filings with the SE for important factors that could cause actual results to differ materially from these forward-looking statements and projections. We do not undertake to update our forward-looking statements unless required to do so by law.

Today, we will be referencing a presentation

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