Capital Southwest Reports Q2 2025 Investment Growth

TL;DR

CSWC's investment portfolio grew slightly, with unaffiliated issuer investments hitting $1.07B by Sept 30, 2024.

AI Summary

Capital Southwest Corp. reported its financial results for the period ending September 30, 2024. The company's investments in unaffiliated issuers increased to $1.07 billion as of September 30, 2024, up from $1.05 billion at the end of the prior fiscal year on March 31, 2024. Investments in affiliated non-controlled issuers also saw a slight increase, while investments in affiliated controlled issuers decreased.

Why It Matters

This filing details changes in Capital Southwest's investment portfolio, indicating shifts in its lending and investment strategies which could impact future revenue and risk.

Risk Assessment

Risk Level: medium — The company's financial performance is tied to the economic health of its borrowers and the broader market conditions affecting its investments.

Key Numbers

• $1.07B — Investment in Unaffiliated Issuers (As of September 30, 2024, showing portfolio growth.)
• $1.05B — Investment in Unaffiliated Issuers (As of March 31, 2024, providing a comparison point.)
• $751,072,796 — IRS Number (Company's tax identification number.)

Key Players & Entities

• Capital Southwest Corp. (company) — Filer of the 10-Q report
• September 30, 2024 (date) — End of the reporting period
• March 31, 2024 (date) — End of the prior fiscal year
• $1.07 billion (dollar_amount) — Investment in unaffiliated issuers as of September 30, 2024
• $1.05 billion (dollar_amount) — Investment in unaffiliated issuers as of March 31, 2024

FAQ

Key Financial Figures

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

Filing Documents

• cswc-20240930.htm (10-Q) — 7134KB
• cswc93024ex311.htm (EX-31.1) — 12KB
• cswc93024ex312.htm (EX-31.2) — 11KB
• cswc93024ex321.htm (EX-32.1) — 6KB
• cswc93024ex322.htm (EX-32.2) — 6KB
• 0000017313-24-000097.txt ( ) — 30187KB
• cswc-20240930.xsd (EX-101.SCH) — 100KB
• cswc-20240930_cal.xml (EX-101.CAL) — 88KB
• cswc-20240930_def.xml (EX-101.DEF) — 692KB
• cswc-20240930_lab.xml (EX-101.LAB) — 985KB
• cswc-20240930_pre.xml (EX-101.PRE) — 752KB
• cswc-20240930_htm.xml (XML) — 7095KB

Notes to Consolidated Financial Statements (Unaudited)

Notes to Consolidated Financial Statements (Unaudited) 59 Consolidated Schedule of Investments in and Advances to Affiliates (Unaudited) for the six months ended September 30, 2024 93 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 97 Item 3.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 112 Item 4.

Controls and Procedures

Controls and Procedures 114 PART II OTHER INFORMATION Item 1.

Legal Proceedings

Legal Proceedings 115 Item1A.

Risk Factors

Risk Factors 115 Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 115 Item 3. Defaults Upon Senior Securities 115 Item 4. Mine Safety Disclosures 115 Item 5. Other Information 115 Item 6. Exhibits 116

Signatures

Signatures 118 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) September 30, March 31, 2024 2024 (Unaudited) Assets Investments at fair value: Non-control/Non-affiliate investments (Cost: $ 1,301,871 and $ 1,276,690 , respectively) $ 1,297,261 $ 1,286,355 Affiliate investments (Cost: $ 212,180 and $ 200,013 , respectively) 201,870 190,206 Control investments (Cost: $ 8,613 and $ 0 , respectively) 9,376 — Total investments (Cost: $ 1,522,664 and $ 1,476,703 , respectively) 1,508,507 1,476,561 Cash and cash equivalents 47,237 32,273 Receivables: Dividends and interest 29,981 22,928 Escrow — 16 Other 1,477 7,276 Income tax receivable 484 336 Debt issuance costs (net of accumulated amortization of $ 9,013 and $ 7,741 , respectively) 10,611 10,928 Other assets 6,201 6,440 Total assets $ 1,604,498 $ 1,556,758 Liabilities SBA Debentures (net of $ 3,936 and $ 4,305 , respectively, of unamortized debt issuance costs) $ 149,064 $ 148,695 January 2026 Notes (net of $ 443 and $ 612 , respectively, of unamortized debt issuance costs) 139,557 139,388 October 2026 Notes (net of $ 1,538 and $ 1,923 , respectively, of unamortized debt issuance costs) 148,462 148,077 August 2028 Notes (net of $ 1,927 and $ 2,182 , respectively, of unamortized debt issuance costs) 69,948 69,693 Credit Facilities 278,000 265,000 Other liabilities 14,259 17,381 Accrued restoration plan liability 561 570 Income tax payable 799 281 Deferred tax liability 12,590 11,997 Total liabilities 813,240 801,082 Commitments and contingencies (Note 10) Net Assets Common stock, $ 0.25 par value: authorized, 75,000,000 shares at September 30, 2024 and March 31, 2024; issued, 47,686,685 shares at September 30, 2024 and 45,050,759 shares at March 31, 2024 11,922 11,263 Additional paid-in capital 855,177 796,945 Total distributable (loss) earnings

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View this 10-Q filing on SEC EDGAR