NEW YORK, October 13, 2015 – Saratoga Investment Corp. (NYSE:SAR) (“Saratoga Investment” or “the Company”), a business development company, today announced financial results for its 2016 fiscal second quarter.
Summary Financial Information
- Net asset value (“NAV”) was $125.3 million as of August 31, 2015, a $1.8 million increase from an NAV of $123.5 million as of May 31, 2015 and a $2.7 million increase from an NAV of $122.6 million as of February 28, 2015.
- For the six months ended August 31, 2015, $8.7 million of dividends declared was more than offset by $5.4 million of net investment income, $3.8 million of net realized gains and $3.0 million of stock dividend distributions.
- NAV per share was $22.42 as of August 31, 2015, compared to $22.70 as of February 28, 2015.
- Net investment income on a weighted average per share basis of $0.66 for the quarter ended August 31, 2015. Adjusted for the incentive fee accrual related to net unrealized capital gains, the net investment income on a weighted per share basis was $0.52, an increase of $0.09, or 21% from the quarter ended August 31, 2014.
- Earnings per share for the quarter ended August 31, 2015 was $0.22, a decrease of $0.37 from the quarter ended August 31, 2014 – the increase in net investment income from $2.1 million last year to $3.7 million this year was offset by a net loss on investments of $2.4 million this quarter as compared to a net gain of $1.1 million last year. The $2.4 million net loss for the quarter ended August 31, 2015 consists of $3.7 million net realized gains offset by $6.1 million net unrealized depreciation.
- Net investment income of $3.7 million for the quarter ended August 31, 2015. Adjusted for the incentive fee accrual related to net unrealized capital gains, the net investment income was $2.9 million, an increase of $0.6 million, or 26% from the quarter ended August 31, 2014.
- Net investment income yield as percentage of average net asset value (“Net Investment Income Yield”) was 11.8% for the quarter ended August 31, 2015. Adjusted for the incentive fee accrual related to net unrealized capital gains, the Net Investment Income Yield was 9.3%, an increase of 150 bps from the quarter ended August 31, 2014.
- Return on equity for the quarter ended August 31, 2015 was 4.0%.
- Investment portfolio activity for the quarter ended August 31, 2015:
- Cost of investments made during the period: $18.9 million
- Principal repayments during the period: $27.4 million