Capital Southwest(CSWC) - 2024 Q4 - Annual Results

Financial Performance - Pre-tax net investment income for the quarter ended March 31, 2024, was $0.68 per share, exceeding the regular dividend of $0.57 per share and supplemental dividend of $0.06 per share[6] - Total investment income for the quarter ended March 31, 2024, was $178.135 million, a 49.3% increase from $119.300 million in the same quarter of 2023[21] - Net investment income for the quarter was $110.005 million, up 60.0% from $68.711 million year-over-year[21] - Total pre-tax net investment income for the year was $110.9 million, up from $69.0 million in the prior year, representing a 60.3% increase[40] - The net increase in net assets from operations of $83.389 million, significantly higher than $33.093 million in the prior year[21] Investment Portfolio - Total investment portfolio reached $1.5 billion, with $154.6 million in new committed credit investments and $2.9 million in new equity co-investments during the quarter[3] - The total investment portfolio increased by $270.2 million, from $1.2 billion to $1.5 billion, reflecting a growth of 22.4% during the year[51] - The credit portfolio had a weighted average yield on debt investments of 13.3%[1] - Current non-accruals amounted to $33.8 million, representing 2.3% of the total investment portfolio[4] - The company originated $157.5 million in new commitments during the quarter, consisting of investments in six new portfolio companies totaling $126.3 million[52] Dividends - Total dividends declared for the June 30, 2024 quarter are $0.63 per share, consisting of a regular dividend of $0.57 and a supplemental dividend of $0.06[6] - Regular dividend declared for the quarter ended June 30, 2024, is $0.57 per share, with a supplemental dividend of $0.06 per share[24] - The company declared a total dividend of $0.63 per share for the quarter ended June 30, 2024, which includes a Regular Dividend of $0.57 and a Supplemental Dividend of $0.06[45] Assets and Liabilities - The company's net asset value (NAV) per share increased to $16.77 as of March 31, 2024, up from $16.37 a year earlier[9] - Total assets as of March 31, 2024, were $1.556 billion, an increase from $1.258 billion in the previous year[29] - Total liabilities increased to $801.082 million from $667.276 million year-over-year[29] - Cash and cash equivalents stood at $32.3 million, with total net assets of $755.7 million[5] - As of March 31, 2024, Capital Southwest had approximately $32.3 million in unrestricted cash and money market balances and a total debt outstanding of $265.0 million on the Corporate Credit Facility[44] Operating Expenses - Total operating expenses increased to $67.186 million, compared to $50.260 million in the same quarter of the previous year, reflecting a 33.7% rise[21] - Interest expense for the year ended March 31, 2024, was $43.1 million, compared to $28.9 million in the prior year, marking a 49.5% increase[62] Equity and Financing - The company raised $184.2 million through the Equity ATM Program, selling 8,733,315 shares at a weighted-average price of $21.09 per share[13] - The company has $121.1 million available under the Equity ATM Program as of March 31, 2024[13] - The company has an "at-the-market" offering program with an aggregate offering price of up to $650 million[22] - The company sold 2,069,620 shares of its common stock under the Equity ATM Program during the quarter[22] Quarterly Comparisons - For the quarter ended March 31, 2024, total investment income was $46.4 million, down from $48.6 million in the prior quarter[55] - The net increase in net assets resulting from operations for the quarter was $13.5 million, down from $23.5 million in the prior quarter[58] - The company's NAV at March 31, 2024, remained flat at $16.77 per share compared to the prior quarter[59]