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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.
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.