Capital Southwest Corp. Files 10-Q for Period Ending December 31, 2023

TL;DR

<b>Capital Southwest Corp. filed its Q3 2023 10-Q report on January 30, 2024.</b>

AI Summary

CAPITAL SOUTHWEST CORP (CSWC) filed a Quarterly Report (10-Q) with the SEC on January 30, 2024. Capital Southwest Corp. filed its 10-Q report for the period ending December 31, 2023. The filing covers the period from April 1, 2023, to December 31, 2023. The company's fiscal year ends on March 31. The filing was made on January 30, 2024. The company is incorporated in Texas.

Why It Matters

For investors and stakeholders tracking CAPITAL SOUTHWEST CORP, this filing contains several important signals. This 10-Q filing provides investors with the latest financial performance and operational details for Capital Southwest Corp. for the third quarter of their fiscal year. Understanding the company's financial health and investment portfolio as detailed in this report is crucial for assessing its current valuation and future prospects.

Risk Assessment

Risk Level: medium — CAPITAL SOUTHWEST CORP shows moderate risk based on this filing. The filing is a standard quarterly report (10-Q), which typically contains routine financial information. However, the specific details within the report regarding investment performance, debt levels, and operational results will determine the ultimate risk assessment.

Analyst Insight

Review the detailed investment portfolio and debt structure within the 10-Q to understand Capital Southwest Corp.'s financial strategy and risk exposure.

Key Numbers

• 2023-12-31 — Period End Date (Conformed period of report)
• 2024-01-30 — Filing Date (Filed as of date)
• 0331 — Fiscal Year End (Company fiscal year end)
• 85 — Public Document Count (Number of documents in the filing)

Key Players & Entities

• CAPITAL SOUTHWEST CORP (company) — Filer name
• 0000017313-24-000006 (filing_id) — Accession number
• 20231231 (date) — Conformed period of report
• 20240130 (date) — Filed as of date
• TX (location) — State of incorporation
• 814-00061 (filing_id) — SEC file number
• 2142385700 (phone) — Business phone
• USD (currency) — Currency used in financial statements

Forward-Looking Statements

• Capital Southwest Corp's interest expenses will increase in future quarters due to the issuance of new August 2028 Notes. (Capital Southwest Corp) — high confidence, target: 2024-06-30
• The company will continue to expand its investment portfolio, potentially leading to higher net investment income. (Capital Southwest Corp) — medium confidence, target: 2024-09-30

FAQ

Industry Context

Capital Southwest Corp. operates as a business development company (BDC), investing in debt and equity of small to medium-sized businesses.

Regulatory Implications

As a BDC, Capital Southwest Corp. is subject to regulations under the Investment Company Act of 1940, which governs its investment activities and capital structure.

What Investors Should Do

1. Analyze the company's investment portfolio for diversification and risk.
2. Examine the debt structure and maturity dates of outstanding notes.
3. Review any disclosed operational or financial risks in the full filing.

Key Dates

• 2024-01-30: 10-Q Filing — Report for the period ending December 31, 2023
• 2023-12-31: Reporting Period End — End date of the financial reporting period
• 2023-04-01: Reporting Period Start — Start date of the financial reporting period

Year-Over-Year Comparison

This is the 10-Q filing for the period ending December 31, 2023. Previous filings would include reports for earlier periods within the current fiscal year or prior fiscal years.

Key Financial Figures

• $0.25 — ange on Which Registered Common Stock, $0.25 par value per share CSWC The Nasdaq Glo

Filing Documents

• cswc-20231231.htm (10-Q) — 6933KB
• cswc123123ex311.htm (EX-31.1) — 12KB
• cswc123123ex312.htm (EX-31.2) — 11KB
• cswc123123ex321.htm (EX-32.1) — 6KB
• cswc123123ex322.htm (EX-32.2) — 6KB
• 0000017313-24-000006.txt (&nbsp;) — 28195KB
• cswc-20231231.xsd (EX-101.SCH) — 102KB
• cswc-20231231_cal.xml (EX-101.CAL) — 87KB
• cswc-20231231_def.xml (EX-101.DEF) — 627KB
• cswc-20231231_lab.xml (EX-101.LAB) — 1063KB
• cswc-20231231_pre.xml (EX-101.PRE) — 711KB
• cswc-20231231_htm.xml (XML) — 5845KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 47 Consolidated Schedule of Investments in and Advances to Affiliates (Unaudited) for the nine months ended December 31, 2023 82 Item 2.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 86 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 105 Item 4.

Controls and Procedures

Controls and Procedures 107 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 108 Item1A.

Risk Factors

Risk Factors 108 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 108 Item 3. Defaults Upon Senior Securities 109 Item 4. Mine Safety Disclosures 109 Item 5. Other Information 109 Item 6. Exhibits 110

Signatures

Signatures 112 2 Table of Contents

– FINANCIAL INFORMATION

PART I – FINANCIAL INFORMATION

Consolidated Financial Statements

Item 1. Consolidated Financial Statements CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (In thousands, except shares and per share data) December 31, March 31, 2023 2023 Assets Investments at fair value: Non-control/Non-affiliate investments (Cost: $ 1,101,342 and $ 947,829 , respectively) $ 1,124,887 $ 966,627 Affiliate investments (Cost: $ 187,764 and $ 191,523 , respectively) 185,950 188,505 Control investments (Cost: $ 80,800 and $ 80,800 , respectively) 54,200 51,256 Total investments (Cost: $ 1,369,906 and $ 1,220,152 , respectively) 1,365,037 1,206,388 Cash and cash equivalents 23,605 21,585 Receivables: Dividends and interest 23,609 18,430 Escrow 16 363 Other 1,264 647 Income tax receivable 349 368 Debt issuance costs (net of accumulated amortization of $ 7,213 and $ 5,642 , respectively) 9,655 3,717 Other assets 5,952 6,186 Total assets $ 1,429,487 $ 1,257,684 Liabilities SBA Debentures (net of $ 3,919 and $ 3,670 , respectively, of unamortized debt issuance costs) $ 126,081 $ 116,330 January 2026 Notes (net of $ 696 and $ 949 , respectively, of unamortized debt issuance costs) 139,304 139,051 October 2026 Notes (net of $ 2,116 and $ 2,737 , respectively, of unamortized debt issuance costs) 147,884 147,263 August 2028 Notes (net of $ 2,309 and $ 0 , respectively, of unamortized debt issuance costs) 69,566 — Credit facility 195,000 235,000 Other liabilities 18,376 16,761 Accrued restoration plan liability 584 598 Income tax payable 802 156 Deferred tax liability 10,925 12,117 Total liabilities 708,522 667,276 Commitments and contingencies (Note 10) Net Assets Common stock, $ 0.25 par value: authorized, 75,000,000 shares at December 31, 2023 and 40,000,000 shares at March 31, 2023; issued, 42,981,139 shares at December 31, 2023 and 38,415,937 shares at March 31, 2023 10,745 9,604 Additional paid-in capital 751,411 646,586 Total distributable (loss) earnings

View Full Filing

View this 10-Q filing on SEC EDGAR