Capital Southwest reports Q2 EPS 64c, consensus 65c

For the quarter ended September 30, Capital Southwest (CSWC) reported total investment income of $48.7M , compared to $51.4M in the prior quarter. The decrease in investment income was primarily attributable to a decrease in distributions received from our equity investments, as well as a decrease in amendment and prepayment fees received during the quarter.In commenting on the Company’s results, Bowen Diehl, President and Chief Executive Officer, stated, “The September quarter was another strong quarter for Capital Southwest. Our portfolio continued to perform well, producing $0.64 of pre-tax net investment income per share for the quarter, which earned both our 58c per share regular dividend and our 6c per share supplemental dividend paid for the quarter. Originations for the quarter were $90M , offset by $45M in prepayments. Due to delayed deal closings past the end of the September quarter, as well as an exceptionally strong current backlog of deals in diligence, we expect very robust net portfolio growth for the quarter ending December 31 . In consideration of the strong performance of our portfolio, the Board of Directors has again declared a regular dividend of $0.58 per share for the quarter ending December 31 .. Our Board of Directors has also declared a supplemental dividend of 5c per share for the quarter ending December 31 , resulting in total dividends for the quarter ending December 31, 2024 of $0.63 per share. While future dividend declarations are at the discretion of our Board of Directors, it is our intent to continue to distribute quarterly supplemental dividends for the foreseeable future. Finally, we continued our capital raising track record during the quarter raising over $20M on our Equity ATM Program and adding $25M in new commitments to our Corporate Credit Facility.”