Capital Southwest reports Q3 EPS 72c, consensus 66c

In commenting on the Company’s results, Bowen Diehl, President and Chief Executive Officer, stated, “The December quarter was another strong quarter for Capital Southwest, with $116M of originations in four new and 12 existing portfolio companies. Our portfolio continued to perform well, producing 72c of pre-tax net investment income for the quarter, which more than earned both our 57c per share regular dividend and our 6c per share supplemental dividend paid for the quarter. In addition, our Net Asset Value per share increased to $16.77 from $16.46, an increase of 1.9% compared to the prior quarter. In consideration of the strong performance of our portfolio, the Board of Directors has again declared a regular quarterly dividend of 57c per share for the March 31 quarter. Given the continued excess earnings being generated by our floating rate debt portfolio, our Board of Directors has also declared a supplemental dividend of 6c per share for the March 31 quarter, resulting in total dividends for the March 31 quarter of 63c 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 while base rates remain materially above long-term historical averages and we have a meaningful UTI balance.”