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One of my favorite income stocks, Capital Southwest (NASDAQ: CSWC ) reported its second quarter earnings recently and their report was solid in my opinion. Although, they did see some metrics increase from theContributing analyst to the iREIT+Hoya Capital investment group. The Dividend Collectuh is not a registered investment professional nor financial advisor and these articles should not be taken as financial advice. This is for educational purposes only and I encourage everyone to do their own due dilige ...

DALLAS, Nov. 05, 2024 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (Nasdaq: CSWC) (“Capital Southwest”) today announced the pricing of $200,000,000 principal amount of 5.125% Convertible Notes due 2029 (the “notes”) in an underwritten offering (the “offering”). Capital Southwest also granted the underwriters of the notes an option to purchase up to an additional $30,000,000 principal amount of notes, solely to cover over-allotments. The sale of the notes is expected to close on November 8, 2024, subjec ...

DALLAS, Nov. 04, 2024 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (Nasdaq: CSWC) (“Capital Southwest”) today announced the commencement of a registered public offering of unsecured convertible notes due 2029 (the “notes”) in an underwritten offering (the “offering”). The notes will be unsecured obligations of Capital Southwest, will accrue interest payable quarterly in arrears and will mature in 2029, unless earlier converted, redeemed or repurchased. Upon conversion, Capital Southwest will pay or del ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q 1 (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2024 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ……………..to …………….. Commission File Number: 814-00061 | --- | --- | |------------------------------------------------------------------------------------- ...

Capital Southwest (NASDAQ:CSWC) Q2 2025 Earnings Conference Call October 29, 2024 11:00 AM ET Company Participants Chris Rehberger - EVP of Finance Bowen Diehl - CEO Josh Weinstein - Chief Investment Officer Michael Sarner - CFO Conference Call Participants Brian Mckenna - JMP Securities Bryce Rowe - B. Riley Securities FBR Doug Harter - UBS Matthew Hurwit - Jefferies Robert Dodd - Raymond James Operator Thank you for joining today's Capital Southwest Second Quarter Fiscal Year 2025 Earnings Call. Participa ...

Financial Data and Key Metrics Changes - Pre-tax net investment income for the quarter was $30 million or $0.64 per share, a decrease from $31.3 million or $0.69 per share in the prior quarter [34] - Total investment income decreased to $48.7 million from $51.4 million in the prior quarter, primarily due to a reduction in one-time cash dividends and fee revenue [35] - The company's NAV per share decreased slightly by $0.01 to $16.59 per share, driven by net realized and unrealized depreciation on the investment portfolio [41] Business Line Data and Key Metrics Changes - Portfolio activity included $89.8 million in new commitments to four new portfolio companies and 11 existing companies, with $45.2 million in proceeds from debt prepayments generating a weighted average realized IRR of 14.5% [13][28] - The on-balance sheet credit portfolio ended the quarter at $1.4 billion, representing year-over-year growth of 17% from $1.2 billion [23] - The credit portfolio had a weighted average yield of 12.9% and a weighted average leverage of 3.8 times EBITDA [29] Market Data and Key Metrics Changes - Deal flow in the lower middle market remains healthy, but competition for quality deals has resulted in tighter spreads and slower net portfolio growth [9] - The current backlog of deals indicates strong net portfolio growth expected in the December quarter, with loan-to-value levels ranging from 35% to 50% [10] - The company has seen increased competition from banks, affecting pricing dynamics in the market [60] Company Strategy and Development Direction - The company maintains a conservative approach to BDC leverage and balance sheet liquidity, allowing for continued investment in new platform companies and financing for existing portfolio companies [16] - The investment strategy focuses on lending and investing in the lower middle market, with approximately 93% of the credit portfolio backed by private equity firms [19] - The company aims to continue distributing excess quarterly pretax NII as supplemental dividends, supported by a current UTI balance of $0.64 per share [39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to generate attractive returns despite competitive pressures and a challenging market environment [12] - The overall health of the portfolio is strong, with 93.5% of the portfolio rated in the top two categories and cash flow coverage of debt service obligations at 3.4 times [31] - Management noted that while there are idiosyncratic challenges, the overall portfolio remains resilient with significant upgrades outpacing downgrades [30][87] Other Important Information - The company raised approximately $21 million in gross equity proceeds through its equity ATM program at a weighted average share price of $24.49 per share [14] - The company has robust balance sheet liquidity with approximately $475 million in cash and undrawn leverage commitments [42] - The company is actively working towards obtaining a second SBIC license, with optimism about completing the process by the end of the calendar year [44] Q&A Session Summary Question: Can you quantify the deals pushed into calendar Q4 and the expected net portfolio growth? - Management indicated significant net portfolio growth expected in Q4, estimating $150 million to $200 million of net portfolio growth for the quarter [52][53] Question: What is the current state of new deal activity in the lower middle market? - Management noted that while deal flow has been relatively flat, there is increased competition from larger private equity firms moving down market, which could impact pricing [58][59] Question: What is the appetite for raising capital given the premium to book value? - Management confirmed a proactive approach to raising capital, with expectations of increasing secured capacity and engaging in unsecured activity over the next six to nine months [66] Question: Can you provide details on the non-accruals and expectations for those assets? - Management mentioned two new non-accruals, with expectations for restructuring by the end of December, indicating ongoing discussions with management teams [72][74] Question: Are there any emerging signs of weakness in the portfolio? - Management identified lower-end consumer businesses and B2B sectors as areas of caution, but overall, the portfolio remains strong with significant upgrades [85][86]

Capital Southwest (CSWC) came out with quarterly earnings of $0.66 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.69 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this business development company would post earnings of $0.66 per share when it actually produced earnings of $0.63, delivering a surprise of -4.55%. Over the last four quarters, the company has surpassed consensus EPS estimates just once. Capit ...

Exhibit 99.1 Second Quarter Fiscal Year 2025 Financial Highlights 8333 Douglas Avenue, Suite 1100 Dallas, Texas 75225 T 214.238.5700 F 214.238.5701 Capital Southwest Announces Financial Results for Second Fiscal Quarter Ended September 30, 2024, Declares Regular Dividend of $0.58 per share and Supplemental Dividend of $0.05 per share for the Quarter Ending December 31, 2024 CSWC Reports Pre-Tax Net Investment Income of $0.64 Per Share for Quarter Ended September 30, 2024 Dallas, Texas – October 28, 2024 – C ...

Rising interest rates benefited business development companies greatly over the past several quarters due to the fact that the overwhelming majority of their debt investments were at floating rates, while much of their debt was at fixed rates. With Hidden Dividend Stocks Plus he scours the world's markets to find solid income opportunities with dividend yields ranging from 5% to 10% or more, backed by strong earnings. Features include: a portfolio with up to 40 holdings at a time including links to associat ...