2023-05-22 16:39:01 ET
Capital Southwest Corp.'s ( NASDAQ: CSWC ) net investment income, posted on Monday, rose in the last quarter of its fiscal year, allowing its board to increase its quarterly dividend and declare a supplemental dividend for its next quarter.
"In consideration of the performance of our portfolio, improvements in our operating leverage, and rising market interest rates, the board of directors has declared an increase in our regular quarterly dividend," said President and CEO Bowen Diehl. The quarterly dividend as well as a $0.05-per-share supplemental dividend were announced on April 27.
"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 (undistributed taxable income) balance," he added.
Capital Southwest ( CSWC ) stock gained 1.6% in Monday after-hours trading.
The business development company posted net investment income of $0.65 per share for the quarter ended March 31, 2023, up from $0.62 in the prior quarter. In April, Capital Southwest ( CSWC ) said its Q4 NII per share would be in the $0.64-$0.65 range.
Q4 net increase in net assets resulting from operations was $18.2M compared with $2.9M in fiscal Q3.
Total investment income of $37.2M increased from $32.8M in fiscal Q3, primarily reflecting an increase in average debt investments outstanding and an increase in the weighted average yield on investments.
Total operating expenses, excluding interest expense, fell to $5.6M from $6.2M in the prior quarter due to a decrease in accrued bonus compensation.
Net asset value as of March 31 increased to $16.37 per share from $16.25 per share at Dec. 31, 2022.
In the quarter, Capital Southwest ( CSWC ) orginated $67.3M in new commitments, consisting of investments in five new portfolio companies totaling $49.5M and add-on commitments in nine portfolio companies totaling $17.8M.
The company received full prepayment on one debt investment totaling $16.8M during fiscal Q4.
Earlier, Capital Southwest ( CSWC ) FY GAAP NII of $2.29 beats by $1.15, t otal investment income of $119.3M beats by $1.3M
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Capital Southwest Q4 NII rises, as expected, expects more supplemental dividends