Capital Southwest Corporation Reports First Fiscal Quarter 2025 Financial Results
Intellectia.AI Updated: 2024-08-08
Capital Southwest Corporation Reports First Fiscal Quarter 2025 Financial Results
DALLAS, Aug. 05, 2024 (GLOBE NEWSWIRE) — Capital Southwest Corporation ("Capital Southwest," "CSWC" or the "Company") (NASDAQ: CSWC), an internally managed business development company, announced its financial results for the first fiscal quarter ended June 30, 2024.
Key Financial Metrics
| Metrics | Q1 FY2025 | Q4 FY2024 | QoQ Change | Consensus Estimates |
|---|---|---|---|---|
| Total Investment Income | $51.4M | $46.4M | +10.8% | $49.13M |
| EPS | $0.69 | $0.65 | +6.15% | $0.65 |
| Pre-Tax Net Investment Income | $31.3M | $29.8M | +5.03% | N/A |
Capital Southwest reported an increase in total investment income to $51.4 million, reflecting a 10.8% quarter-over-quarter growth. EPS stood at $0.69, surpassing the consensus estimate of $0.65. The company's performance was bolstered by substantial investments and enhanced yield on debt instruments.
Revenue Performance by Segment
| Segment | Q1 FY2025 |
|---|---|
| Credit Portfolio | $1.3B |
| Equity Portfolio | $132.8M |
| New Committed Credit Investments | $105.1M |
| Yield on Debt Investments | 13.3% |
Capital Southwest's credit portfolio stood at $1.3 billion, with a 13.3% weighted average yield on debt investments. The equity portfolio was valued at $132.8 million. The company's continual investment in new committed credits amounted to $105.1 million during the quarter, indicating robust segment performance.
Comments from Company Officers
Bowen Diehl, President and CEO, remarked, "The June quarter was another strong quarter for Capital Southwest, with $108 million of originations. Our portfolio performance was robust, generating $0.69 of pre-tax net investment income per share. Given our excess earnings and solid portfolio performance, we have increased the regular quarterly dividend to $0.58 per share and declared a supplemental dividend of $0.06 per share."
Dividends and Share Repurchase Program
The Board declared a total dividend of $0.64 per share for the quarter ending September 30, 2024, comprising a regular dividend of $0.58 per share and a supplemental dividend of $0.06 per share. During the quarter ended June 30, 2024, no shares were repurchased under the share repurchase program.
Forward Guidance
The company did not specifically provide forward guidance but indicated plans to distribute quarterly supplemental dividends while base rates remain above long-term historical averages and maintain liquidity.
Stock Price Movement
Post earnings release, Capital Southwest's stock experienced a decline of approximately 4.03%.
For further details, please refer to Capital Southwest's Form 10-Q and First Fiscal Quarter 2025 Earnings Presentation available on the Investor Relations section of Capital Southwest's website.
