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Jun 30, 2024
Capital Southwest Q1 2025 Earnings Report
Announced financial results for the first fiscal quarter ended June 30, 2024, increased regular dividend to $0.58 per share, and declared a supplemental dividend of $0.06 per share for the quarter ending September 30, 2024.
Key Takeaways
Capital Southwest Corporation reported a strong first quarter for fiscal year 2025, with pre-tax net investment income of $0.69 per share. The company saw $108 million in originations and the board increased the regular quarterly dividend to $0.58 per share and declared a supplemental dividend of $0.06 per share for the quarter ending September 30, 2024.
Total investment portfolio of $1.5 billion, with a credit portfolio of $1.3 billion, 98% of which is in 1st Lien Senior Secured Debt.
Pre-Tax Net Investment Income was $31.3 million, or $0.69 per weighted average share outstanding.
The Board of Directors approved an increase of the Regular Dividend to $0.58 per share and a Supplemental Dividend of $0.06 per share for the quarter ending September 30, 2024.
Net Asset Value (NAV) per Share was $16.60.
Capital Southwest
Capital Southwest
Capital Southwest Revenue by Segment
Revenue by Segment
Non-control/Non-affiliate Revenue
CapyFin.comAffiliate Investments Revenue
CapyFin.comControl Investments Revenue
CapyFin.comPIK Non-control/Non-affiliate Revenue
CapyFin.comPIK Affiliate Investments Revenue
CapyFin.comDividend Non-control/Non-affiliate Revenue
CapyFin.comDividend Affiliate Investments Revenue
CapyFin.comFee Non-control/Non-affiliate Revenue
CapyFin.comFee Affiliate Investments Revenue
CapyFin.comFee Control Investments Revenue
CapyFin.comOther Income Revenue
CapyFin.com Forward Guidance
The Board of Directors has increased the regular quarterly dividend to $0.58 per share for the quarter ending September 30, 2024 and declared a supplemental dividend of $0.06 per share for the quarter ending September 30, 2024.
Positive Outlook
- Increased regular quarterly dividend to $0.58 per share.
- Declared a supplemental dividend of $0.06 per share for the quarter ending September 30, 2024.
- Intent to continue to distribute quarterly supplemental dividends for the foreseeable future.
- Balance sheet liquidity at an all time high of $485 million.
- Raised over $38 million on Equity ATM Program and adding $50 million in new commitments to SPV Credit Facility.
Challenges Ahead
- Future dividend declarations are at the discretion of the Board of Directors.
- Dependence on base rates remaining materially above long-term historical averages.
- Dependence on maintaining a meaningful UTI balance.
- Net Realized and Unrealized Depreciation: $14.8 million, or 1.0% of total investments at fair value.
- Current non-accruals with a fair value of $27.8 million, representing 1.9% of the total investment portfolio