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Dec 31, 2024
Capital Southwest Q3 2025 Earnings Report
Announced financial results for the third fiscal quarter ended December 31, 2024 and an increase in total dividends to $0.64 per share for the quarter ending March 31, 2025.
Key Takeaways
Capital Southwest Corporation reported a pre-tax net investment income of $0.64 per share for the quarter ended December 31, 2024. The company's investment portfolio totaled $1.7 billion, with $313.4 million in new committed credit investments and $4.1 million in new equity co-investments during the quarter. The board of directors declared a regular dividend of $0.58 per share and a supplemental dividend of $0.06 per share for the quarter ending March 31, 2025, resulting in total dividends of $0.64 per share.
Total investment portfolio reached $1.7 billion, with a credit portfolio of $1.5 billion primarily in 1st lien senior secured debt.
Pre-tax net investment income was $30.7 million, or $0.64 per weighted average share outstanding.
The board of directors declared a total dividend of $0.64 per share for the quarter ending March 31, 2025.
The company received a 'green light' letter from the U.S. Small Business Administration to file an application to operate a second SBIC subsidiary.
Capital Southwest
Capital Southwest
Capital Southwest Revenue by Segment
Revenue by Segment
Affiliate Investments Revenue
CapyFin.comControl Investments Revenue
CapyFin.com Forward Guidance
The Board of Directors has declared a regular dividend of $0.58 per share and an increased supplemental dividend of $0.06 per share for the quarter ending March 31, 2025, resulting in total dividends of $0.64 per share. The company intends to continue distributing quarterly supplemental dividends for the foreseeable future.
Positive Outlook
- Continued performance of the portfolio.
- Efficient equity capital raise through the Equity ATM Program.
- Successful raising of unsecured convertible notes, diversifying balance sheet liability structure.
- Received 'green light' letter from the U.S. Small Business Administration to file an application to obtain a license to operate a second SBIC subsidiary.
- Board of Directors declared a regular dividend of $0.58 per share for the quarter ending March 31, 2025.
Challenges Ahead
- Future dividend declarations are at the discretion of the Board of Directors.
- Receipt of a green light letter provides no assurance that the SBA will ultimately issue an SBIC license.
- Net Realized and Unrealized Depreciation of $13.7 million.
- Net depreciation related to the credit portfolio of $26.0 million.
- There was a tax provision of $0.4 million, compared to a tax benefit of $1.2 million in the prior quarter.