Capital Southwest Announces Financial Results for Fourth Fiscal Quarter and Fiscal Year Ended March 31, 2025

Core Insights - Capital Southwest Corporation reported strong financial results for the fourth fiscal quarter and the year ended March 31, 2025, with significant new originations and income generation for shareholders [1][4]. Financial Highlights - For the fourth quarter, the company achieved approximately $150 million in new committed originations, with adjusted pre-tax net investment income of $0.61 per share [4][5]. - The total investment portfolio reached $1.8 billion, with a credit portfolio of $1.6 billion, primarily consisting of 99% first lien senior secured debt [5][6]. - The company declared a regular dividend of $0.58 per share and a supplemental dividend of $0.06 per share for the quarter ending June 30, 2025, totaling $0.64 per share [4][29]. Yearly Performance - For the fiscal year 2025, total investment income was $204.4 million, a 15% increase from the previous year, driven by higher average debt investments [14][17]. - Total operating expenses for the year were $29.0 million, up from $24.1 million, primarily due to one-time expenses related to the departure of the former CEO [15][16]. - The net asset value (NAV) per share decreased slightly to $16.70 from $16.77 in the previous year, attributed to net realized and unrealized losses on investments [19][41]. Investment Activities - During the fourth quarter, the company originated $149.9 million in new commitments, including $146.1 million in first lien senior secured debt and $3.8 million in equity [7][8]. - The company recorded total net realized and unrealized losses on investments of $10.3 million for the quarter, compared to $13.7 million in the prior quarter [12][18]. Capital Resources - As of March 31, 2025, Capital Southwest had approximately $43.2 million in cash and cash equivalents, with a regulatory debt to equity ratio of 0.89 to 1 [20][21]. - The company raised over $68 million through its Equity ATM Program during the quarter, selling nearly 3 million shares at a weighted average price of $22.91 [6][25]. Future Outlook - The company received a license from the U.S. Small Business Administration to operate a second SBIC subsidiary, allowing access to an additional $175 million in cost-effective debt capital [6][26].