https://assets.capyfin.com/instruments/678fdc13234e27009c5d615e.png avatar
Capital Southwest
🇺🇸 NASDAQ:CSWC
View Company
OverviewEarningsDividends
•
Sep 30, 2024

Capital Southwest Q2 2025 Earnings Report

Announced financial results for the second fiscal quarter ended September 30, 2024.

Key Takeaways

Capital Southwest reported a strong quarter with pre-tax net investment income of $0.64 per share. The company originated $89.8 million in new commitments and declared a regular dividend of $0.58 per share and a supplemental dividend of $0.05 per share for the quarter ending December 31, 2024.

Total investment portfolio reached $1.5 billion, with a credit portfolio of $1.4 billion, 98% of which is 1st Lien Senior Secured Debt.

Pre-Tax Net Investment Income was $30.0 million, or $0.64 per weighted average share outstanding.

The company paid a regular dividend of $0.58 per share and a supplemental dividend of $0.06 per share.

Net Asset Value (NAV) per Share was $16.59.

Total Revenue
$48.7M
Previous year: $42.8M
+13.9%
EPS
$0.66
Previous year: $0.69
-4.3%
Yield on Debt Investments
12.9%
Previous year: 13.5%
-4.4%
Cash and Equivalents
$47.2M
Previous year: $23M
+105.2%
Free Cash Flow
$20.8M
Previous year: -$48.8M
-142.7%
Total Assets
$1.6B
Previous year: $1.42B
+13.2%

Capital Southwest

Capital Southwest

Forward Guidance

Capital Southwest anticipates robust net portfolio growth for the quarter ending December 31, 2024, driven by delayed deal closings and a strong backlog of deals in diligence. The Board of Directors has declared a regular dividend of $0.58 per share and a supplemental dividend of $0.05 per share for the quarter ending December 31, 2024.

Positive Outlook

  • Strong performance of the portfolio.
  • Expects very robust net portfolio growth for the quarter ending December 31, 2024.
  • Regular dividend of $0.58 per share declared for the quarter ending December 31, 2024.
  • Supplemental dividend of $0.05 per share declared for the quarter ending December 31, 2024.
  • Intent to continue to distribute quarterly supplemental dividends for the foreseeable future.

Challenges Ahead

  • Future dividend declarations are at the discretion of the Board of Directors.
  • Decrease in investment income was primarily attributable to a decrease in distributions received from our equity investments.
  • Decrease in investment income was primarily attributable to a decrease in amendment and prepayment fees received during the quarter.
  • Net Realized and Unrealized Depreciation: $8.5 million, or 0.6% of total investments at fair value.
  • The decrease in NAV per share from the prior quarter is primarily due to net realized and unrealized losses on investments.

Company Overview

Full financial data and analysis

View Capital Southwest