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Sep 30, 2022
Capital Southwest Q2 2023 Earnings Report
Reported pre-tax net investment income of $0.54 per share.
Key Takeaways
Capital Southwest Corporation announced financial results for the second fiscal quarter ended September 30, 2022. The company reported a total investment portfolio of $1.1 billion and pre-tax net investment income of $15.0 million, or $0.54 per weighted average share outstanding. The Board of Directors has declared an increase in the regular quarterly dividend to $0.52 per share and a supplemental dividend of $0.05 per share for the December quarter.
Total Investment Portfolio: $1.1 billion.
Pre-Tax Net Investment Income: $15.0 million, or $0.54 per weighted average share outstanding.
Paid $0.50 per share Regular Dividend with 106% LTM Pre-Tax NII Regular Dividend Coverage.
Net Realized and Unrealized Depreciation on Investments: $5.0 million.
Forward Guidance
The Board of Directors declared an increase in the regular quarterly dividend to $0.52 per share and a supplemental dividend of $0.05 per share for the December quarter. The company feels confident in its ability to continue to grow Pre-Tax Net Investment Income.
Positive Outlook
- Portfolio performing well, producing $0.54 of Pre-Tax Net Investment Income.
- Deal activity remained strong, with new commitments of approximately $86 million during the quarter.
- Programmatically raised equity through equity ATM program, raising $26.9 million in gross proceeds.
- Reduced regulatory leverage from 1.23x to 1.11x as of the current quarter end.
- Board of Directors has declared an increase in our regular quarterly dividend to $0.52 per share.
Challenges Ahead
- Future dividend declarations are at the discretion of the Board of Directors.
- Net Realized and Unrealized Depreciation on Investments: $5.0 million.
- Net depreciation related to the credit portfolio of $8.4 million.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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