Saratoga Investment Corp. Announces Fiscal Year End and Fourth Quarter 2017 Financial Results
Summary Financial Information
The Company's summarized financial information is as follows:
For the year ended and as of |
For the year ended and as of |
||||
($ in thousands except per share) |
|||||
AUM |
292,661 |
283,996 |
|||
NAV |
127,295 |
125,150 |
|||
Investment Income |
33,157 |
30,051 |
|||
Net Investment Income per share |
1.68 |
1.91 |
|||
Adjusted Net Investment Income per share |
2.01 |
1.90 |
|||
Earnings per share |
1.98 |
2.09 |
|||
Return on Equity - last twelve months |
9.0% |
9.4% |
|||
For the quarter ended February 28, 2017 |
For the quarter ended November 30, 2016 |
For the quarter ended February 29, 2016 | |||
($ in thousands except per share) | |||||
AUM |
292,661 |
277,570 |
283,996 | ||
NAV |
127,295 |
127,680 |
125,150 | ||
Investment Income |
8,358 |
8,442 |
7,795 | ||
Net Investment Income per share |
0.19 |
0.60 |
0.54 | ||
Adjusted Net Investment Income per share |
0.49 |
0.53 |
0.45 | ||
Earnings per share |
0.22 |
0.27 |
(0.07) | ||
Return on Equity - last twelve months |
9.0% |
7.7% |
9.4% | ||
"In fiscal year 2017 we maintained our focus on expanding assets under management, maintaining our strong investment quality, broadening our investor base, diversifying sources of low-cost liquidity and increasing our pipeline of available deal sources," said
As of
As a result, both the year and quarter ended
Net investment income on a weighted average per share basis was
Net investment income yield as percentage of average net asset value ("Net Investment Income Yield") was 7.6% and 3.5% for the year and quarter ended
Net Asset Value ("NAV") increased
- For the twelve months ended
February 28, 2017 ,$11.1 million of dividends were declared, while$11.4 million was earned ($9.7 million of net investment income and$1.7 million of net realized and unrealized gains). There were also$5.1 million of stock dividend distributions made through the Company's dividend reinvestment plan ("DRIP"), representing four quarters' dividend payments and one special dividend; these issuances were partially offset by$3.3 million in share repurchases.
NAV per share was
- The decrease in NAV per share includes the
$1.5 million , or$0.25 per share loss associated with the extinguishment of our 2020 notes. - During these twelve months, NAV per share decreased by
$0.09 per share, primarily reflecting the$0.3 million , or$0.06 per share increase in net assets (net of the$1.93 dividend paid during fiscal year 2017), offset by the dilutive impact of the 122,373 shares issued during the year. These shares consisted of 315,447 shares issued pursuant to the DRIP, representing four quarters' dividend payments and a special dividend, offset by 193,074 shares that were shares repurchased during the year.
Return on equity for the year and quarter ended
- Excluding the
$1.6 million realized and unrealized losses on our legacy investments inTargus Group International ("Targus ") andElyria Foundry Company, LLC ("Elyria") over the past twelve months, as well as the loss associated with the extinguishment of our 2020 notes and the interest on the 2020 notes during the call notice period, the return on equity for the last twelve months endedFebruary 28, 2017 was 11.3%. BothTargus and Elyria are legacy investments that pre-date Saratoga's management of the Company.
Earnings per share for the year and quarter ended
Investment portfolio activity for the year ended
- Cost of investments made during the period:
$126.9 million - Principal repayments during the period:
$121.2 million
Investment portfolio activity for the quarter ended
- Cost of investments made during the period:
$41.1 million - Principal repayments during the period:
$26.5 million
Additional Financial Information
For the fiscal year ended
Adjusted for (i) the incentive fee accrual related to net unrealized capital gains, (ii) the loss on extinguishment of our 2020 notes, and (iii) the interest on the 2020 notes during the call notice period while the 2023 notes were already issued and outstanding, the net investment income was
For the quarter ended
Adjusted for (i) the incentive fee accrual related to net unrealized capital gains, (ii) the loss on extinguishment of our 2020 notes, and (iii) the interest on the 2020 notes during the call notice period while the 2023 notes were already issued and outstanding, the net investment income was
Total expenses, excluding interest and debt financing expenses, base management fees and incentive management fees, increased from
Portfolio and Investment Activity
As of
For the fiscal year ended
As of
As of
Portfolio Update:
During the quarter ended
Liquidity and Capital Resources
As of
With the
On
On
Share Repurchase Plan
In fiscal year 2015, the Company announced the approval of an open market share repurchase plan that allows it to repurchase up to 200,000 shares of its common stock at prices below its NAV as reported in its then most recently published financial statements. During fiscal year 2017, this share repurchase plan was extended for another year, through
As of
Dividend
During fiscal year 2017,
2017 Fiscal Year End and Fourth Quarter Conference Call/Webcast Information
When:
Call: Interested parties may participate by dialing (877) 312-9208 (
A replay of the call will be available from
Webcast: Interested parties may access a simultaneous webcast of the call and find the FY2017 presentation by going to the "Events & Presentations" section of
About
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.
Financials
| |||||
Consolidated Statements of Assets and Liabilities | |||||
As of | |||||
|
| ||||
ASSETS |
|||||
Investments at fair value |
|||||
Non-control/Non-affiliate investments (amortized cost of |
$ 242,531,514 |
$ 271,168,186 | |||
Control investments (cost of |
50,129,799 |
12,827,980 | |||
Total investments at fair value (amortized cost of |
292,661,313 |
283,996,166 | |||
Cash and cash equivalents |
9,306,543 |
2,440,277 | |||
Cash and cash equivalents, reserve accounts |
12,781,425 |
4,594,506 | |||
Interest receivable (net of reserve of |
3,294,450 |
3,195,919 | |||
Management fee receivable |
171,106 |
170,016 | |||
Other assets |
183,346 |
350,368 | |||
Receivable from unsettled trades |
253,041 |
300,000 | |||
Total assets |
$ 318,651,224 |
$ 295,047,252 | |||
LIABILITIES |
|||||
Revolving credit facility |
$ - |
$ - | |||
Deferred debt financing costs, revolving credit facility |
(437,183) |
(515,906) | |||
SBA debentures payable |
112,660,000 |
103,660,000 | |||
Deferred debt financing costs, SBA debentures payable |
(2,508,280) |
(2,493,303) | |||
Notes payable |
74,450,500 |
61,793,125 | |||
Deferred debt financing costs, notes payable |
(2,689,511) |
(1,694,586) | |||
Dividend payable |
- |
875,599 | |||
Base management and incentive fees payable |
5,814,692 |
5,593,956 | |||
Accounts payable and accrued expenses |
852,987 |
855,873 | |||
Interest and debt fees payable |
2,764,237 |
1,552,069 | |||
Payable for repurchases of common stock |
- |
20,957 | |||
Directors fees payable |
51,500 |
31,500 | |||
Due to manager |
397,505 |
218,093 | |||
Total liabilities |
$ 191,356,447 |
$ 169,897,377 | |||
NET ASSETS |
|||||
Common stock, par value |
|||||
authorized, 5,794,600 and 5,672,227 common shares issued and outstanding, respectively |
$ 5,795 |
$ 5,672 | |||
Capital in excess of par value |
190,483,931 |
188,714,329 | |||
Distribution in excess of net investment income |
(27,737,348) |
(26,217,902) | |||
Accumulated net realized loss from investments and derivatives |
(27,636,482) |
(40,172,549) | |||
Accumulated net unrealized appreciation (depreciation) on investments and derivatives |
(7,821,119) |
2,820,325 | |||
Total net assets |
127,294,777 |
125,149,875 | |||
Total liabilities and net assets |
$ 318,651,224 |
$ 295,047,252 | |||
NET ASSET VALUE PER SHARE |
$ 21.97 |
$ 22.06 | |||
Asset Coverage Ratio |
271.0% |
302.5% | |||
Consolidated Statements of Operations For the year ended For the year ended For the year ended INVESTMENT INCOME Interest from investments Non-control/Non-affiliate investments $ 26,413,986 $ 23,165,823 $ 20,790,324 Payment-in-kind interest income from Non-control/Non-affiliate investments 652,847 1,039,398 1,186,657 Control investments 2,281,397 2,665,648 2,707,230 Total interest income 29,348,230 26,870,869 24,684,211 Interest from cash and cash equivalents 31,151 5,420 3,801 Management fee income 1,499,001 1,494,779 1,520,205 Other income 2,278,770 1,679,602 1,167,144 Total investment income 33,157,152 30,050,670 27,375,361 OPERATING EXPENSES Interest and debt financing expenses 9,888,127 8,456,467 7,375,022 Base management fees 4,898,657 4,528,589 4,156,955 Professional fees 1,243,400 1,336,214 1,301,713 Administrator expenses 1,366,667 1,175,000 1,000,000 Incentive management fees 2,947,543 2,232,188 2,547,773 Insurance 275,787 330,867 337,335 Directors fees and expenses 235,422 204,000 210,761 General & administrative 1,121,594 995,205 478,299 Excise tax expense 44,770 113,808 293,653 Other expense 19,780 - - Total operating expenses 22,041,747 19,372,338 17,701,511 Loss on extinguishment of debt 1,454,595 - - NET INVESTMENT INCOME 9,660,810 10,678,332 9,673,850 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain from investments 12,368,115 226,252 3,276,450 Net unrealized appreciation (depreciation) on investments (10,641,444) 740,974 (1,942,936) Net gain on investments 1,726,671 967,226 1,333,514 NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 11,387,481 $ 11,645,558 $ 11,007,364 WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE $ 1.98 $ 2.09 $ 2.04 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED 5,740,450 5,582,453 5,385,049
Consolidated Statements of Operations For the three months ended February 28, 2017 For the three months ended INVESTMENT INCOME Interest from investments Non-control/Non-affiliate investments $ 6,444,137 $ 6,204,079 Payment-in-kind interest income from Non-control/Non-affiliate investments 170,160 43,933 Control investments 693,472 645,347 Total interest income 7,307,769 6,893,359 Interest from cash and cash equivalents 14,725 2,646 Management fee income 375,442 373,493 Other income 660,532 525,764 Total investment income 8,358,468 7,795,262 OPERATING EXPENSES Interest and debt financing expenses 2,781,258 2,215,521 Base management fees 1,248,790 1,161,850 Professional fees 251,677 305,598 Administrator expenses 375,000 325,000 Incentive management fees 616,302 71,416 Insurance 65,486 70,972 Directors fees and expenses 43,000 51,000 General & administrative 379,851 256,961 Excise tax expense 44,770 237,146 Other expense (1,867) - Total operating expenses 5,804,267 4,695,464 Loss on extinguishment of debt 1,454,595 NET INVESTMENT INCOME 1,099,606 3,099,798 REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS: Net realized gain from investments 68,216 (4,004,754) Net realized loss from derivatives - - Net unrealized appreciation (depreciation) on investments 86,678 501,620 Net unrealized appreciation on derivatives - - Net gain on investments 154,894 (3,503,134) NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS $ 1,254,500 $ (403,336) WEIGHTED AVERAGE - BASIC AND DILUTED EARNINGS PER COMMON SHARE $ 0.22 $ (0.07) WEIGHTED AVERAGE COMMON SHARES OUTSTANDING - BASIC AND DILUTED 5,755,750 5,688,697
Supplemental Information Regarding Adjusted Net Investment Income, Adjusted Net Investment Income Yield and Adjusted Net Investment Income per share
On a supplemental basis, we provide information relating to adjusted net investment income, adjusted net investment income yield and adjusted net investment income per share, which are non-GAAP measures. These measures are provided in addition to, but not as a substitute for, net investment income, net investment income yield and net investment income per share. Adjusted net investment income represents net investment income excluding any capital gains incentive fee expense or reversal attributable to unrealized gains. The management agreement with our advisor provides that a capital gains incentive fee is determined and paid annually with respect to cumulative realized capital gains (but not unrealized capital gains) to the extent such realized capital gains exceed realized and unrealized losses for such year. In addition, we accrue, but do not pay, a capital gains incentive
fee in connection with any unrealized capital appreciation, as appropriate. As such, we believe that adjusted net investment income, adjusted net investment income yield and adjusted net income per share is a useful indicator of operations exclusive of any capital gains incentive fee expense or reversal attributable to unrealized gains. In addition, adjusted net investment income also excludes the loss on extinguishment of our 2020 notes, and the interest expense related to the 2020 notes during the call notice period while the 2023 notes were already issued and outstanding. Both these expenses are directly attributable to the issuance of the 2023 notes and the subsequent repayment of the 2020 notes, and are deemed to be non-recurring in nature and not representative of the operations of
For the three months ended |
For the years ended |
||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||
Net Investment Income |
$ 1,099,606 |
$ 3,099,798 |
|
$ 10,678,332 |
|||||||||||
Changes in accrued capital gains incentive fee expense/reversal |
(18,053) |
(563,081) |
133,937 |
(45,777) |
|||||||||||
Loss on extinguishment of debt |
1,454,595 |
- |
1,454,595 |
- |
|||||||||||
Interest on 2020 notes during call period(3) |
268,895 |
- |
268,895 |
- |
|||||||||||
Adjusted net investment income |
2,805,043 |
2,536,717 |
11,518,237 |
10,632,555 |
|||||||||||
Net investment income yield |
3.5% |
9.8% |
7.6% |
8.6% |
|||||||||||
Changes in accrued capital gains incentive fee expense/reversal |
(0.1%) |
(1.8%) |
0.1% |
0.0% |
|||||||||||
Loss on extinguishment of debt |
4.6% |
- |
1.2% |
- |
|||||||||||
Interest on 2020 notes during call period(3) |
0.8% |
- |
0.2% |
- |
|||||||||||
Adjusted net investment income yield (1) |
8.8% |
8.0% |
9.1% |
8.6% |
|||||||||||
For the three months ended |
For the year ended |
||||||||||||||
2017 |
2016 |
2017 |
2016 |
||||||||||||
Net investment income per share |
|
|
|
|
|||||||||||
Changes in accrued capital gains incentive fee expense/reversal |
(0.0) |
(0.09) |
0.03 |
( 0.01) |
|||||||||||
Loss on extinguishment of debt |
0.25 |
- |
0.25 |
- |
|||||||||||
Interest on 2020 notes during call period(3) |
0.05 |
- |
0.05 |
- |
|||||||||||
Adjusted net investment income per share (2) |
|
|
|
|
|||||||||||
(1) Adjusted net investment income is calculated as adjusted net investment income divided by average net asset value.
(2) Adjusted net investment income per share is calculated as adjusted net investment income divided by weighted average common shares outstanding.
(3) Interest on 2020 notes during call period is presented net of the incentive fee accrual
To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/saratoga-investment-corp-announces-fiscal-year-end-and-fourth-quarter-2017-financial-results-300458795.html
SOURCE
News Provided by Acquire Media