Welcome!

Microsoft Cloud Authors: Pat Romanski, Liz McMillan, John Basso, Elizabeth White, Mihai Corbuleac

News Feed Item

Saratoga Investment Corp. Announces Fiscal Third Quarter 2013 Financial Results

NEW YORK, Jan. 14, 2013 /PRNewswire/ -- Saratoga Investment Corp. (NYSE: SAR) ("Saratoga Investment" or "the Company"), a business development company, today announced financial results for its 2013 fiscal third quarter.

Operating Results

For the fiscal quarter ended November 30, 2012, Saratoga Investment reported net investment income of $2.5 million or $0.63 on a weighted average per share basis, and net loss on investments of $1.7 million, or $0.44 on a weighted average per share basis, resulting in an increase in net assets from operations of $0.8 million, or $0.19 on a weighted average per share basis.  The $1.7 million net loss on investments was comprised of $1.8 million in net unrealized depreciation on investments and $0.1 million in net realized gains from investments.

Net asset value ("NAV") was $102.9 million as of November 30, 2012, compared to $105.4 million as of August 31, 2012 and $100.6 million as of May 31, 2012.  NAV per share was $21.75 ($27.39 before the effect of the dividend described below) as of November 30, 2012 and $27.20 as of August 31, 2012 and $25.94 as of May 31, 2012. 

The decrease in reported NAV per share from August 31, 2012 was primarily the result of the $16.5 million cash/stock dividend (which consisted of $3.3 million in cash and 853,455 shares of common stock) declared by Saratoga Investment's Board of Directors on November 9, 2012 and paid on December 31, 2012. In accordance with generally accepted accounting principles ("GAAP"), the number of shares outstanding used to calculate NAV per share as of November 30, 2012 was retroactively adjusted to reflect the additional shares issued in connection with the cash/stock dividend.

Christian L. Oberbeck, Chairman, Chief Executive Officer and President of Saratoga Investment, said, "Our growing pipeline and financial strength enabled us to make another $6.4 million of investments in new and existing portfolio companies during the quarter, plus an additional $30 million of investments during December in four new and one existing portfolio company. We continue to see attractive opportunities, and the trend of improving credit quality within the overall portfolio continues. During this quarter, we have increased both the amount and proportion of internally rated strong credits."

Portfolio and Investment Activity

As of November 30, 2012, the fair value of the Company's investment portfolio was $119.3 million, principally invested in 23 portfolio companies and one collateralized loan obligation fund (the "CLO"). The overall portfolio composition consisted of 53.7% of first lien term loans, 8.4% of second lien term loans, 8.8% of senior secured notes, 1.9% of unsecured notes, 20.7% of subordinated notes of the CLO and 6.5% of common equity.  

During the 2013 fiscal third quarter, the Company invested $6.4 million in new or existing portfolio companies and had $1.5 million in aggregate amount of exits and repayments on its investments, resulting in net investments of $4.9 million for the period.  The Company invested an additional $29.7 million in December with $0.7 million of exits and repayments resulting in net investments of $29.0 million for the month of December 2012.

As of November 30, 2012, the weighted average current yield on Saratoga Investment's first lien term loans, second lien term loans, senior secured notes, unsecured notes and the CLO subordinated notes were 10.0%, 11.3%, 16.8%, 19.9%, and 22.9%, respectively, which resulted in an aggregate weighted average current yield of 12.9%. 

Liquidity and Capital Resources

As of November 30, 2012, Saratoga Investment had $14.9 million in outstanding borrowings under its $45 million senior secured revolving credit facility with Madison Capital Funding LLC.  In addition, Saratoga Investment had an aggregate of $2.5 million in cash and cash equivalents and $3.8 million in cash and cash equivalents, reserve accounts, at November 30, 2012.  The Company is required to use the amounts held in cash and cash equivalents, reserve accounts to pay interest expense, reduce borrowings or pay other amounts in accordance with the terms of its senior secured revolving credit facility.  As of November 30, 2012, the Company's Small Business Investment Company subsidiary had $25 million in regulatory capital and $4.0 million of debentures guaranteed by the Small Business Administration.

2013 Fiscal Third Quarter Conference Call/Webcast Information

When:  Jan. 15, 2013 at 9:00 a.m. Eastern Time (ET)

Call:  Interested parties may participate by dialing (877) 312-9208 (U.S. and Canada) or (678) 224-7872 (outside U.S. and Canada).

A replay of the call will be available from 11:00 a.m. ET on Jan. 15, 2013 through 11:59 p.m. ET on Jan. 22, 2013 by dialing (800) 585-8367 (U.S. and Canada) or (404) 537-3406 (outside U.S. and Canada). Passcode for both replay numbers is 88743795.

Webcast: Interested parties may also access a simultaneous webcast of the call by going to http://ir.saratogainvestmentcorp.com/events.cfm.

About Saratoga Investment Corp.

Saratoga Investment Corp. is a specialty finance company that provides customized financing solutions to U.S. middle-market businesses.  The Company invests primarily in mezzanine debt, leveraged loans and, to a lesser extent, equity to provide financing for change of ownership transactions, strategic acquisitions, recapitalizations and growth initiatives in partnership with business owners, management teams and financial sponsors.  Saratoga Investment Corp.'s objective is to create attractive risk-adjusted returns by generating current income and long-term capital appreciation from its debt and equity investments.  Saratoga Investment Corp. has elected to be regulated as a business development company ("BDC") under the Investment Company Act of 1940 and is externally-managed by Saratoga Investment Advisors, LLC, an SEC-registered investment advisor focusing on credit-driven strategies.  Within the BDC, Saratoga Investment manages both an SBIC-licensed subsidiary and a $400 million Collateralized Loan Obligation (CLO) fund.  These diverse funding sources, combined with a permanent capital base, enable Saratoga Investment to offer a broad range of financing solutions.

Forward Looking Statements

This press release contains certain forward-looking statements. These forward-looking statements are subject to risks and uncertainties and other factors enumerated in this press release and the filings Saratoga Investment Corp. makes with the SEC.  Saratoga Investment Corp. undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Financial Statements

Saratoga Investment Corp.








Consolidated Statements of Assets and Liabilities










 As of  




November 30, 2012


February 29, 2012




 (unaudited) 




ASSETS











Investments at fair value






Non-control/non-affiliate investments (amortized cost of $97,083,018 and $73,161,722, respectively)

$            94,649,656


$          69,513,434



Control investments (cost of $20,361,593 and $23,540,517, respectively)

24,641,107


25,846,414



Total investments at fair value (amortized cost of $117,444,611 and $96,702,239, respectively)

119,290,763


95,359,848


Cash and cash equivalents

2,494,552


1,325,698


Cash and cash equivalents, reserve accounts

3,787,183


25,534,195


Outstanding interest rate cap at fair value (cost of $0 and $131,000, respectively)

-


75


Interest receivable, (net of reserve of $228,113 and $273,361, respectively)

1,906,186


1,689,404


Deferred credit facility financing costs, net

1,453,985


1,199,490


Management fee receivable

216,947


227,581


Other assets

18,973


94,823


Receivable from unsettled trades

-


59,511



Total assets

$          129,168,589


$        125,490,625








LIABILITIES





Revolving credit facility

$            14,850,000


$          20,000,000


SBA debentures payable

4,000,000


-


Payable for unsettled trades

-


4,072,500


Dividend payable

3,295,306


-


Management and incentive fees payable

3,364,719


2,885,670


Accounts payable and accrued expenses

508,042


704,949


Interest and credit facility fees payable

140,424


53,262


Due to manager

117,877


394,094



Total liabilities

$            26,276,368


$          28,110,475








NET ASSETS





Common stock, par value $.001, 100,000,000 common shares






authorized, 4,730,116 and 3,876,661 common shares issued and outstanding, respectively

$                     4,730


$                   3,877


Capital in excess of par value

174,824,076


161,644,426


Distribution in excess of net investment income

(25,319,688)


(13,920,068)


Accumulated net realized loss from investments and derivatives

(48,463,047)


(48,874,767)


Net unrealized appreciation (depreciation) on investments and derivatives

1,846,150


(1,473,318)



Total Net Assets

102,892,221


97,380,150








Total liabilities and Net Assets

$          129,168,589


$        125,490,625








NET ASSET VALUE PER SHARE

$                     21.75


$                   25.12









Saratoga Investment Corp.












Consolidated Statements of Operations














For the three months ended  November 30,


For the nine months ended  November 30,



2012


2011


2012


2011



(unaudited)


(unaudited)


(unaudited)


(unaudited)










INVESTMENT INCOME








Interest from investments









Non-control/Non-affiliate investments

$  2,466,595


$  1,877,650


$  6,951,338


$     5,212,182


Control investments

1,046,285


1,155,241


3,186,751


3,095,304


     Total interest income

3,512,880


3,032,891


10,138,089


8,307,486

Interest from cash and cash equivalents

731


1,567


5,368


6,815

Management fee income

500,454


501,920


1,500,519


1,512,091

Other income

19,750


92,671


172,310


238,579


Total investment income

4,033,815


3,629,049


11,816,286


10,064,971










EXPENSES








Interest and credit facility financing expenses

529,858


307,221


1,808,586


987,042

Base management fees

528,735


393,888


1,492,345


1,203,820

Professional fees

347,459


356,144


986,781


1,282,009

Administrator expenses

250,000


250,000


750,000


730,000

Incentive management fees

(412,654)


1,178,750


887,020


842,097

Insurance

128,891


145,105


389,506


448,786

Directors fees and expenses

53,705


51,000


155,705


153,000

General & administrative

117,357


121,019


265,720


290,232

Other expense

1,311


2,150


4,434


5,340


Total expenses

1,544,662


2,805,277


6,740,097


5,942,326











NET INVESTMENT INCOME

2,489,153


823,772


5,076,189


4,122,645










REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:








Net realized gain (loss) from investments

95,372


(5,831,905)


542,720


(5,839,864)

Net realized loss from derivatives

-


-


(131,000)


-

Net unrealized appreciation (depreciation) on investments

(1,838,957)


11,221,387


3,188,543


11,927,052

Net unrealized appreciation (depreciation) on derivatives

-


166


130,925


(15,108)


Net gain (loss) on investments

(1,743,585)


5,389,648


3,731,188


6,072,080










NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS

$     745,568


$  6,213,420


$  8,807,377


$   10,194,725










WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE

$           0.19


$           1.88


$           2.25


$              3.10










WEIGHTED AVERAGE COMMON STOCK OUTSTANDING - BASIC AND DILUTED

3,970,447


3,310,021


3,907,696


3,287,979




















Contact: Richard Petrocelli
Saratoga Investment Corp.
212-906-7800

Roland Tomforde
Broadgate Consultants
212-232-2222

SOURCE Saratoga Investment Corp.

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

@ThingsExpo Stories
The IoT has the potential to create a renaissance of manufacturing in the US and elsewhere. In his session at 18th Cloud Expo, Florent Solt, CTO and chief architect of Netvibes, discussed how the expected exponential increase in the amount of data that will be processed, transported, stored, and accessed means there will be a huge demand for smart technologies to deliver it. Florent Solt is the CTO and chief architect of Netvibes. Prior to joining Netvibes in 2007, he co-founded Rift Technologi...
Unless your company can spend a lot of money on new technology, re-engineering your environment and hiring a comprehensive cybersecurity team, you will most likely move to the cloud or seek external service partnerships. In his session at 18th Cloud Expo, Darren Guccione, CEO of Keeper Security, revealed what you need to know when it comes to encryption in the cloud.
We're entering the post-smartphone era, where wearable gadgets from watches and fitness bands to glasses and health aids will power the next technological revolution. With mass adoption of wearable devices comes a new data ecosystem that must be protected. Wearables open new pathways that facilitate the tracking, sharing and storing of consumers’ personal health, location and daily activity data. Consumers have some idea of the data these devices capture, but most don’t realize how revealing and...
What are the successful IoT innovations from emerging markets? What are the unique challenges and opportunities from these markets? How did the constraints in connectivity among others lead to groundbreaking insights? In her session at @ThingsExpo, Carmen Feliciano, a Principal at AMDG, will answer all these questions and share how you can apply IoT best practices and frameworks from the emerging markets to your own business.
Basho Technologies has announced the latest release of Basho Riak TS, version 1.3. Riak TS is an enterprise-grade NoSQL database optimized for Internet of Things (IoT). The open source version enables developers to download the software for free and use it in production as well as make contributions to the code and develop applications around Riak TS. Enhancements to Riak TS make it quick, easy and cost-effective to spin up an instance to test new ideas and build IoT applications. In addition to...
You think you know what’s in your data. But do you? Most organizations are now aware of the business intelligence represented by their data. Data science stands to take this to a level you never thought of – literally. The techniques of data science, when used with the capabilities of Big Data technologies, can make connections you had not yet imagined, helping you discover new insights and ask new questions of your data. In his session at @ThingsExpo, Sarbjit Sarkaria, data science team lead ...
Extracting business value from Internet of Things (IoT) data doesn’t happen overnight. There are several requirements that must be satisfied, including IoT device enablement, data analysis, real-time detection of complex events and automated orchestration of actions. Unfortunately, too many companies fall short in achieving their business goals by implementing incomplete solutions or not focusing on tangible use cases. In his general session at @ThingsExpo, Dave McCarthy, Director of Products...
Ask someone to architect an Internet of Things (IoT) solution and you are guaranteed to see a reference to the cloud. This would lead you to believe that IoT requires the cloud to exist. However, there are many IoT use cases where the cloud is not feasible or desirable. In his session at @ThingsExpo, Dave McCarthy, Director of Products at Bsquare Corporation, will discuss the strategies that exist to extend intelligence directly to IoT devices and sensors, freeing them from the constraints of ...
WebRTC is bringing significant change to the communications landscape that will bridge the worlds of web and telephony, making the Internet the new standard for communications. Cloud9 took the road less traveled and used WebRTC to create a downloadable enterprise-grade communications platform that is changing the communication dynamic in the financial sector. In his session at @ThingsExpo, Leo Papadopoulos, CTO of Cloud9, discussed the importance of WebRTC and how it enables companies to focus...
The best-practices for building IoT applications with Go Code that attendees can use to build their own IoT applications. In his session at @ThingsExpo, Indraneel Mitra, Senior Solutions Architect & Technology Evangelist at Cognizant, provided valuable information and resources for both novice and experienced developers on how to get started with IoT and Golang in a day. He also provided information on how to use Intel Arduino Kit, Go Robotics API and AWS IoT stack to build an application tha...
With an estimated 50 billion devices connected to the Internet by 2020, several industries will begin to expand their capabilities for retaining end point data at the edge to better utilize the range of data types and sheer volume of M2M data generated by the Internet of Things. In his session at @ThingsExpo, Don DeLoach, CEO and President of Infobright, discussed the infrastructures businesses will need to implement to handle this explosion of data by providing specific use cases for filterin...
Is your aging software platform suffering from technical debt while the market changes and demands new solutions at a faster clip? It’s a bold move, but you might consider walking away from your core platform and starting fresh. ReadyTalk did exactly that. In his General Session at 19th Cloud Expo, Michael Chambliss, Head of Engineering at ReadyTalk, will discuss why and how ReadyTalk diverted from healthy revenue and over a decade of audio conferencing product development to start an innovati...
So, you bought into the current machine learning craze and went on to collect millions/billions of records from this promising new data source. Now, what do you do with them? Too often, the abundance of data quickly turns into an abundance of problems. How do you extract that "magic essence" from your data without falling into the common pitfalls? In her session at @ThingsExpo, Natalia Ponomareva, Software Engineer at Google, provided tips on how to be successful in large scale machine learning...
Early adopters of IoT viewed it mainly as a different term for machine-to-machine connectivity or M2M. This is understandable since a prerequisite for any IoT solution is the ability to collect and aggregate device data, which is most often presented in a dashboard. The problem is that viewing data in a dashboard requires a human to interpret the results and take manual action, which doesn’t scale to the needs of IoT.
What does it look like when you have access to cloud infrastructure and platform under the same roof? Let’s talk about the different layers of Technology as a Service: who cares, what runs where, and how does it all fit together. In his session at 18th Cloud Expo, Phil Jackson, Lead Technology Evangelist at SoftLayer, an IBM company, spoke about the picture being painted by IBM Cloud and how the tools being crafted can help fill the gaps in your IT infrastructure.
"C2M is our digital transformation and IoT platform. We've had C2M on the market for almost three years now and it has a comprehensive set of functionalities that it brings to the market," explained Mahesh Ramu, Vice President, IoT Strategy and Operations at Plasma, in this SYS-CON.tv interview at @ThingsExpo, held June 7-9, 2016, at the Javits Center in New York City, NY.
"delaPlex is a software development company. We do team-based outsourcing development," explained Mark Rivers, COO and Co-founder of delaPlex Software, in this SYS-CON.tv interview at 18th Cloud Expo, held June 7-9, 2016, at the Javits Center in New York City, NY.
Whether your IoT service is connecting cars, homes, appliances, wearable, cameras or other devices, one question hangs in the balance – how do you actually make money from this service? The ability to turn your IoT service into profit requires the ability to create a monetization strategy that is flexible, scalable and working for you in real-time. It must be a transparent, smoothly implemented strategy that all stakeholders – from customers to the board – will be able to understand and comprehe...
Traditional IT, great for stable systems of record, is struggling to cope with newer, agile systems of engagement requirements coming straight from the business. In his session at 18th Cloud Expo, William Morrish, General Manager of Product Sales at Interoute, outlined ways of exploiting new architectures to enable both systems and building them to support your existing platforms, with an eye for the future. Technologies such as Docker and the hyper-convergence of computing, networking and sto...
SYS-CON Events announced today that LeaseWeb USA, a cloud Infrastructure-as-a-Service (IaaS) provider, will exhibit at the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. LeaseWeb is one of the world's largest hosting brands. The company helps customers define, develop and deploy IT infrastructure tailored to their exact business needs, by combining various kinds cloud solutions.