NASDAQ$CSWC

Capital Southwest Corporation · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported pre-tax net investment income of $0.40 per share.

Capital Southwest Corporation reported financial results for the first fiscal quarter ended June 30, 2020. The company saw some stabilization in both the Upper and Lower Middle Market portfolios, with very few draws on revolver commitments, several repayments of previous revolver draws, and limited amendments and waivers in the portfolio. The company recorded net appreciation of $2.1 million this quarter.

  • Total Investment Portfolio: $587.2 million
  • Pre-Tax Net Investment Income: $7.2 million, or $0.40 per weighted average diluted share
  • Dividends: Paid $0.41 per share Regular Dividend, $0.10 per share Supplemental Dividend
  • Net Realized and Unrealized Portfolio Appreciation: $2.1 million

Headline financials

Total Revenue

$15.2M

Previous: $15.8M-4.0%
EPS (adj)

$0.38

Previous: $0.42-9.5%
Weighted avg yield on debt

10.1%

No prior period
NAV per share

$14.95

No prior period
Net Income

$6.82M

No prior period
Operating Income

$7.17M

No prior period
Cash & Equivalents

$15M

No prior period
Total Assets

$619M

No prior period

Revenue & EPS history

Capital Southwest · Revenue · Quarterly

$15.2M

Q1 2021-4%vs Q1 2020
Beat estimate in 8 of 13 quarters(62%)
ActualEstimate

Revenue by segment

Capital Southwest · $18.3M total across 2 segments · Q1 2023

  • Non-control/Non-affiliate Investments
    $15.7M
  • Affiliate Investments
    $2.51M

Forward guidance

The company recently announced a $0.51 per share dividend for the quarter ended September 30, 2020, which was flat from the prior quarter.

Tailwinds

  • Raised $5.7 million in equity capital under our existing at-the-market program in June.
  • Significantly broaden our sources of capital and strengthen our balance sheet over the long term.
  • Received a 'green light' letter from the U.S. Small Business Administration.
  • Hopeful to have our formal license application reviewed and approved by the end of this calendar year.
  • Will allow us to access $175 million in cost effective debt capital to deploy in our lower middle market strategy.

Headwinds

  • Risks related to whether the SBA ultimately issues the SBIC license and the timing thereof.
  • Changes in the markets in which Capital Southwest invests.
  • Changes in the financial, capital, and lending markets.
  • Regulatory changes.
  • Tax treatment and general economic and business conditions.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.7%

Avg return

Earnings day

+2.4%

Avg return

5 days after

+1.6%

Avg return

30 days after

62%

26 / 42 earnings

Positive

+9.7%

Q2 2021

Best reaction

-13.0%

Q1 2012

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q4 2026+2.4%-1.5%+0.3%
Q3 2026+0.5%+0.2%-3.0%
Q2 2026-2.3%+1.7%+7.0%
Q4 2025-0.2%+2.5%-1.4%
Q3 2025+2.2%+3.1%+0.8%
Q2 2025-4.5%-6.4%-8.9%
Q1 2025-0.7%-2.5%+2.5%
Q4 2024-1.3%-2.0%-2.3%
Q3 2024+2.7%-2.0%-4.8%
Q2 2024+4.0%+3.8%+7.2%
Q1 2024+4.3%+2.0%+1.3%
Q4 2023+1.1%+1.6%+6.1%
Q3 2023+3.6%+2.6%-2.4%
Q2 2023+3.5%+3.5%-2.7%
Q1 2023+0.6%+1.4%-2.4%
Q4 2022+3.2%+5.5%-15.0%
Q3 2022+7.6%+6.3%+0.5%
Q2 2022-8.1%-2.6%-6.0%
Q1 2022+6.9%+5.9%+8.9%
Q4 2021+3.0%+5.2%-2.5%
Q3 2021+3.5%+8.5%+22.0%
Q2 2021+9.7%+17.9%+33.8%
Q1 2021+5.7%+9.5%+10.3%
Q4 2020+3.6%+9.2%-3.1%
Q3 2020-1.1%-2.0%-9.8%
Q2 2020-4.2%-5.0%-0.3%
Q1 2020+0.5%+4.0%+1.7%
Q4 2019-0.2%+0.4%-3.1%
Q3 2019+1.6%+0.5%+0.9%
Q1 2019+0.3%+1.8%+5.4%
Q4 2018+0.0%+10.9%+8.1%
Q3 2018+0.1%+0.7%+7.5%
Q1 2017+0.9%-0.3%+0.2%
Q4 2017+1.7%+2.3%+1.4%
Q3 2016-0.7%-2.5%-1.1%
Q3 2013
Q2 2013+2.9%
Q1 2013
Q4 2012+0.6%
Q3 2012-0.2%
Q2 2012-3.0%
Q1 2012-13.0%
Q4 2011-1.0%
Q4 2010-5.5%

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