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Dec 31, 2023

Capital Southwest Q3 2024 Earnings Report

Announced financial results for the third fiscal quarter ended December 31, 2023 and total dividends of $0.63 per share for the quarter ended March 31, 2024.

Key Takeaways

Capital Southwest Corporation reported a strong quarter with $116 million of originations, pre-tax net investment income of $0.72 per share, and an increase in NAV per share to $16.77. The board declared a regular quarterly dividend of $0.57 per share and a supplemental dividend of $0.06 per share for the quarter ending March 31, 2024.

Total investment portfolio reached $1.4 billion, with a credit portfolio of $1.2 billion primarily in 1st lien senior secured debt.

Pre-tax net investment income was $29.8 million, or $0.72 per weighted average share outstanding.

Total dividends for the quarter ended December 31, 2023, amounted to $0.63 per share.

Net Asset Value (NAV) per share increased to $16.77 from $16.46, a 1.9% increase compared to the prior quarter.

Total Revenue
$48.6M
Previous year: $32.8M
+48.2%
EPS
$0.7
Previous year: $0.62
+12.9%
Yield on Debt Investments
13.5%
Previous year: 12%
+12.5%
Cash and Equivalents
$23.6M
Previous year: $21.7M
+8.8%
Free Cash Flow
$18M
Previous year: -$98.1M
-118.4%
Total Assets
$1.43B
Previous year: $1.2B
+18.9%

Capital Southwest

Capital Southwest

Forward Guidance

The Board of Directors has declared a regular quarterly dividend of $0.57 per share and a supplemental dividend of $0.06 per share for the March 31, 2024 quarter, resulting in total dividends of $0.63 per share. The company intends to continue distributing quarterly supplemental dividends while base rates remain materially above long-term historical averages.

Positive Outlook

  • Continued payment of quarterly supplemental dividends.
  • Strong portfolio performance