SAT - Saratoga Investment Corp (SAR) Q1 2025 Earnings Call Transcript

2024-07-10 13:18:05 ET

Saratoga Investment Corp (SAR)

Q1 2025 Earnings Conference Call

July 10, 2024 10:00 AM ET

Company Participants

Christian Oberbeck - Chairman, CEO & President

Henri Steenkamp - CFO and Chief Compliance Officer

Michael Grisius - CIO

Conference Call Participants

Bryce Rowe - B. Riley

Casey Alexander - Compass Point

Robert Dodd - Raymond James

Presentation

Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to Saratoga Investment Corp’s 2025 Fiscal First Quarter Financial Results Conference call. Please note that today's call is being recorded.

During today's presentation, all parties will be in a listen-only mode. Following management's prepared remarks we'll open the line for questions. At this time I'd like to turn the call over to Saratoga Investment Corp's Chief Financial Officer and Chief Compliance Officer, Mr. Henri Steenkamp. Sir, please go ahead.

Henri Steenkamp

Thank you. I would like to welcome everyone to Saratoga Investment Corp's 2025 Fiscal First Quarter Earnings Conference Call. Today's conference call includes forward-looking statements and projections. We ask you to refer to our most recent filings with the SEC for important factors that could cause actual results to differ materially from these forward-looking statements and projections.

We do not undertake to update our forward-looking statements unless required to do so by law. Today, we will be referencing a presentation during our call. You can find our fiscal first quarter 2025 shareholder presentation in the Events and Presentation section of our investor relations website. A link to our IR page is in the earnings press release distributed last night. A replay of this conference call will also be available. Please refer to our earnings press release for details.

I would now like to turn the call over to our Chairman and Chief Executive Officer, Christian Oberbeck, who will be making a few introductory remarks.

Christian Oberbeck

Thank you, Henri, and welcome everyone. Saratoga's adjusted net investment income per share for the quarter increased by 12% as compared to last quarter, as stable interest rates have resulted in elevated recurring net interest margins on our portfolio relative to the past year. This quarter's earnings, reflects elevated earnings power and quality versus a year ago with a 19% increase in recurring net interest margin, generated by the 9% increase in average assets under management and the sustained levels of increased interest rates and spreads on Saratoga's investment’s largely floating rate assets, while costs of long-term balance sheet liabilities are largely fixed....

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