Saratoga Investment Corp. Announces Fiscal Third Quarter 2013 Financial Results - InvestingChannel

Saratoga Investment Corp. Announces Fiscal Third Quarter 2013 Financial Results

During the 2013 fiscal third quarter, the Company invested $6.4 million Call:Â Interested parties may participate by dialing (877) 312-9208 (U.S. and Canada

A replay of the call will be available from 11:00Â a.m. ET on Jan. 15, 2013

Webcast: Interested parties may also access a simultaneous webcast of the call by going to http://ir.saratogainvestmentcorp.com/events.cfm. 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 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. Total investments at fair value (amortized cost of $117,444,611 and $96,702,239, respectively) Outstanding interest rate cap at fair value (cost of $0 and $131,000, respectively) $           4,730 $          3,877 $           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 $ Â 2,466,595 $ Â 1,877,650 $ Â 6,951,338 $ Â Â 5,212,182 Control investments

1,046,285

1,155,241

3,186,751

3,095,304 Â Â Â Â 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 $ Â Â 745,568 $ Â 6,213,420 $ Â 8,807,377 $ Â 10,194,725 WEIGHTED AVERAGE – BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE $ Â Â Â Â Â 0.19 $ Â Â Â Â Â 1.88 $ Â Â Â Â Â 2.25 $ Â Â Â Â Â Â Â 3.10 WEIGHTED AVERAGE COMMON STOCK OUTSTANDING – BASIC AND DILUTED 3,970,447

3,310,021

3,907,696

3,287,979 WEIGHTED AVERAGE – BASIC AND DILUTED EARNINGS (LOSS) PER COMMON SHARE