SARHIGH SIGNALFINANCIAL10-K

Saratoga Investment Corp experienced a dramatic cash depletion, with cash and equivalents falling from $148.2M to just $1.7M while nearly eliminating share buyback activity.

The severe cash reduction of nearly 99% represents a fundamental shift in the company's liquidity position and financial flexibility. This dramatic change in cash holdings, combined with the virtual elimination of share repurchases, suggests either a major strategic deployment of capital or potential liquidity constraints that warrant close investor scrutiny.

Comparing 2025-05-07 vs 2024-05-06View on EDGAR →
FINANCIAL ANALYSIS

The company's financial profile shows a mixed picture with net income growing modestly to $36.6M and dividend payments increasing to $52.4M, demonstrating continued profitability and shareholder returns. However, the most striking change is the dramatic depletion of cash reserves to just $1.7M from $148.2M, while share buyback activity was virtually eliminated. This severe reduction in liquid assets represents a fundamental shift in the company's balance sheet that overshadows the positive earnings performance.

FINANCIAL STATEMENT CHANGES
Cash & Equivalents
Balance Sheet
-98.9%
$148.2M$1.7M

Cash declined 98.9% — significant cash burn or deployment; verify adequacy of remaining liquidity runway.

Share Buybacks
Cash Flow
-97.5%
$2.2M$54K

Buyback activity reduced 97.5% — capital being redeployed elsewhere or cash conservation underway.

Net Income
P&L
+30.3%
$28.1M$36.6M

Net income grew 30.3% — bottom-line growth signals improving overall business health.

Dividends Paid
Cash Flow
+28.5%
$40.7M$52.4M

Dividend payments increased 28.5% — management confidence in sustained cash generation.

LANGUAGE CHANGES
NEW — 2025-05-07
PRIOR — 2024-05-06
ADDED
The number of outstanding common shares of the registrant as of May 6, 2025 was 15,364,864 .
As of February 28, 2025, we had total assets of $1,191.5 million and investments in 48 portfolio companies, excluding an investment in the subordinated notes of one collateralized loan obligation fund, Saratoga Investment Corp.
( Saratoga CLO ), which had a fair value of $0.2 million as of February 28, 2025, investment in the Class F-2-R-3 Note of Saratoga CLO which as of February 28, 2025 had a fair value of $2.3 million, investment in the Class E Note of Saratoga Investment Corp.
Senior Loan Fund 2022-1, Ltd which as of February 28, 2025 has affair value of $12.3 million and investments in the Saratoga Senior Loan Fund I JV LLC ( SLF JV ) and its subsidiaries, a joint venture which as of February 28, 2025 had a fair value of $19.6 million.
The overall portfolio composition as of February 28, 2025 consisted of 88.7% of first lien term loans, 0.7% of second lien term loans, 1.7% of unsecured loans, 1.5% of structured finance securities and 7.4% of equity interests.
As of February 28, 2025, the weighted average yield on all of our investments, including our investment in the subordinated notes of Saratoga CLO and Class F-2-R-3 Note was approximately 10.8%.
As of February 28, 2025, our total return based on market value was 27.17% and our total return based on net asset value ( NAV ) per share was 10.11%.
As of February 29, 2024, our total return based on market value was 3.92% and our total return based on net asset value per share was 4.20%.
Our investment in the subordinated notes of Saratoga CLO represents a first loss position in a portfolio that, at February 28, 2025, was composed of $527.1 million in aggregate principal amount of predominantly senior secured first lien term loans.
These entities are consolidated for accounting purposes, but are not consolidated for U.S.
REMOVED
The number of outstanding com mon shares of the registrant as of May 3, 2024 was 13,698,966 .
As of February 29, 2024, we had total assets of $1,191.2 million and investments in 55 portfolio companies, excluding an investment in the subordinated notes of one collateralized loan obligation fund, Saratoga Investment Corp.
( Saratoga CLO ), which had a fair value of $9.5 million as of February 29, 2024, investments in the Class F-2-R-3 Note of the Saratoga CLO which as of February 29, 2024 had a fair value of $8.9 million, and investments in the Saratoga Senior Loan Fund I JV LLC ( SLF JV ) and its subsidiaries, a joint venture which as of February 29, 2024 had a fair value of $25.2 million.
The overall portfolio composition as of February 29, 2024 consisted of 85.7% of first lien term loans, 1.6% of second lien term loans, 1.4% of unsecured loans, 2.7% of structured finance securities and 8.6% of equity interests.
As of February 29, 2024, the weighted average yield on all of our investments, including our investment in the subordinated notes of Saratoga CLO and Class F-2-R-3 Note was approximately 11.4%.
As of February 29, 2024, our total return based on market value was -3.92% and our total return based on net asset value ( NAV ) per share was 4.20%.
As of February 28, 2023, our total return based on market value was 10.35% and our total return based on NAV was 9.46%.
Our investment in the subordinated notes of Saratoga CLO represents a first loss position in a portfolio that, at February 29, 2024, was composed of $640.8 million in aggregate principal amount of predominantly senior secured first lien term loans.
These entities are consolidated for accounting purposes but are not consolidated for U.S.
was liquidated following the sale of equity held by each of the portfolio companies and will be dissolved following the end of the entity s indemnification period.
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