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Capital Southwest Corporation - CSWC | ValueForum Member Stock Ratings

Last rating update for CSWC was made by a ValueForum member on Jul. 29 2020, 3:58 PM ET. Factoring this and past ratings, on average CSWC is rated 1.67 on a scale of Strong Buy (1.00) to Strong Sell (5.00) by 3 different member(s) of ValueForum.com. Full rating pages available to members only (click here) contain additional rating information including commentary by the 3 member(s) who entered the ratings. These ratings are posted by site users; this content is not intended to be investment advice, nor does it represent the opinion of, counsel from, or recommendations by ValueForum.com

CAPITAL SOUTHWEST CORPORATION (NASD: CSWC)
Last Trade
4:00 p.m. - 18.29
Change
 0.21 ( 1.14%)
Shares Traded
1,878
Day's Volume
107,806
Book Value
NA
Price/Book
NA
Beta
0.6997
Day's Range
18.20 - 18.55
Prev Close
18.50
Open
18.45
52 Wk Range
7.39 - 21.71
EPS
-1.24
PE
NA
Quarterly Div/Shr
0.41
Ex-Div
12/14/20
Yield
8.97%
Shares Out.
18.62M
Market Cap.
340.62M
  • 1 Year Stock Performance:

CAGR - Chart the growth of a $10K investment in CSWC

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Related news from
Tue, 29 Dec 2020
21:01:00 +0000
Amware, a Capital Southwest Corporation Portfolio Company, Announces Acquisition of Moulton Logistics Management
DALLAS, Dec. 29, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest”) (Nasdaq:CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, announced today that it supported Amware Fulfillment, LLC’s (“Amware”) acquisition of Moulton Logistics (“Moulton” or the “Target”) with an incremental senior secured first lien term loan. Amware has been a portfolio company of Capital Southwest since 2016. “With the acquisition of Moulton, Amware continues to build upon its track record of identifying and executing strategic acquisitions that profitably expand its footprint and customer base,” said Josh Weinstein, Managing Director of Capital Southwest. “We have been impressed with the progress the management team and Rotunda Capital Partners have made with the Company since our original funding in July 2016. Amware has developed a strong reputation as a premier fulfillment services provider.”Founded in 1968 and headquartered in California, Moulton is a provider of direct-to-consumer fulfillment, retail distribution and customer care services for e-commerce and direct response companies. The Company has two neighboring facilities located in Los Angeles, California and one facility in South Brunswick, NJ.About AmwareAmware Fulfillment provides order fulfillment services to help fast-growing eCommerce and direct selling companies scale fulfillment operations to support any growth trajectory. With 13 fulfillment centers located across America, Amware enables 1–2 day delivery via ground service to 95% of the U.S. population.About Capital SouthwestCapital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company, with approximately $286 million in net assets as of September 30, 2020. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 to $25 million investments across the capital structure, including first lien, unitranche, second lien, subordinated debt and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.Forward-Looking StatementsThis press release contains historical information and forward-looking statements with respect to the business and investments of Capital Southwest. Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks related to: 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; and uncertainties associated with the impact from the COVID-19 pandemic, including its impact on the global and U.S. capital markets and the global and U.S. economy, the length and duration of the COVID-19 outbreak in the United States as well as worldwide and the magnitude of the economic impact of that outbreak; the effect of the COVID-19 pandemic on our business prospects and the operational and financial performance of our portfolio companies, including our ability and their ability to achieve their respective objectives, and the effects of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business.Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2020 and subsequent filings, including the "Risk Factors" sections therein, with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.Investor Relations Contact: Michael S. Sarner, Chief Financial Officer 214-884-3829
Tue, 22 Dec 2020
21:01:00 +0000
Capital Southwest Corporation Prices Public Offering of $75 million 4.50% Notes due 2026
DALLAS, Dec. 22, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (NASDAQ: CSWC) (“Capital Southwest”) is pleased to announce that it has priced an underwritten public offering of $75 million in aggregate principal amount of 4.50% notes due 2026 (the “Notes”). The Notes will bear interest at a rate of 4.50% per year, payable semi-annually, will mature on January 31, 2026 and may be redeemed in whole or in part at Capital Southwest’s option at any time prior to October 31, 2025, at par plus a “make-whole” premium, and thereafter at par. The offering is subject to customary closing conditions and is expected to close on December 29, 2020. Capital Southwest intends to use the net proceeds from this offering to redeem all of its outstanding 5.95% notes due 2022 and repay a portion of the outstanding indebtedness under its credit facility. However, through re-borrowings under its credit facility, Capital Southwest intends to make investments in lower middle market and upper middle market portfolio companies in accordance with its investment objective and strategies, and for other general corporate purposes, including payment of operating expenses. As of December 21, 2020, Capital Southwest had $215.0 million of indebtedness outstanding under its credit facility. The credit facility matures on December 21, 2023, and borrowings under the credit facility currently bear interest on a per annum basis equal to LIBOR plus 2.50%.Raymond James & Associates, Inc. is acting as sole book-running manager for this offering. Janney Montgomery Scott LLC, Ladenburg Thalmann & Co. Inc. and National Securities Corporation, a wholly owned subsidiary of National Holdings Corporation (NASDAQ: NHLD), are acting as co-managers for the offering.Investors should carefully consider, among other things, Capital Southwest’s investment objective and strategies and the risks related to Capital Southwest and the offering before investing. The pricing term sheet dated December 22, 2020, the preliminary prospectus supplement dated December 22, 2020, and the accompanying prospectus dated August 15, 2019, each of which has been filed with the Securities and Exchange Commission (the “SEC”), contain this and other information about Capital Southwest and should be read carefully before investing.A shelf registration statement relating to these securities is on file with and has been declared effective by the SEC. The offering may be made only by means of a preliminary prospectus supplement and an accompanying prospectus, copies of which may be obtained, when available, for free by visiting the SEC’s website at www.sec.gov or from Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716, by email: prospectus@raymondjames.com or by calling: 1-800-248-8863.The information in the pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. The pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release do not constitute offers to sell or the solicitation of offers to buy, nor will there be any sale of the Notes referred to in this press release, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.ABOUT CAPITAL SOUTHWEST Capital Southwest Corporation is a Dallas, Texas-based, internally managed Business Development Company, with approximately $286 million in net assets as of September 30, 2020. Capital Southwest is a middle-market lending firm focused on supporting the acquisition and growth of middle market businesses and makes investments ranging from $5 to $20 million in securities across the capital structure, including first lien, unitranche, second lien, subordinated debt, and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time. FORWARD-LOOKING STATEMENTS This press release may contain certain forward-looking statements within the meaning of the federal securities laws, including statements with regard to Capital Southwest’s notes offering, the expected net proceeds from the offering and the anticipated use of the net proceeds of the offering. These statements are often, but not always, made through the use of word or phrases such as “will,” “may,” “could,” “expect,” and similar expressions and variations or negatives of these words. These statements are based on management’s current expectations, assumptions, and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties, and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks identified in Capital Southwest’s filings with the SEC and risks related to, among other things: 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; uncertainties associated with the impact from the COVID-19 pandemic, including its impact on the global and U.S. capital markets and the global and U.S. economy, the length and duration of the COVID-19 outbreak in the United States as well as worldwide and the magnitude of the economic impact of that outbreak; and the effect of the COVID-19 pandemic on our business prospects and the operational and financial performance of our portfolio companies, including our ability and their ability to achieve our respective objectives, and the effects of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business. Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest’s registration statement and other SEC filings for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.CONTACT: Michael S. Sarner, Chief Financial Officer msarner@capitalsouthwest.com 214-884-3829
Thu, 17 Dec 2020
14:28:00 +0000
Capital Southwest Supports IntelliSite’s Acquisition of Broad Sky Networks
DALLAS, Dec. 17, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest”) (Nasdaq:CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, announced today that it recently supported the acquisition of Broad Sky Networks, Inc. (“Broad Sky”) by IntelliSite Corporation (“IntelliSite”), a portfolio company of DFW Capital Partners (“DFW”). Concurrent with the acquisition, IntelliSite created a new international, technology-focused, holding company EPIC IO Technology (“EPIC IO”) comprised of Broad Sky and IntelliSite as independent subsidiaries. CSWC supported the transaction with a first lien financing in Broad Sky and an equity co-investment in EPIC IO. Capital Southwest led the financing transaction and serves as the sole administrative agent on the credit facility. “We are pleased to partner with DFW on its acquisition of Broad Sky. Through its existing investment in IntelliSite, DFW and the management team are building a robust technology services platform offering IoT solutions, wireless connectivity and AI services that is well-positioned for growth,” stated Douglas Kelley, Managing Director of Capital Southwest. Rachel Bazan, Vice President of Capital Southwest, said “Broad Sky’s recently launched Wireless Window™ platform positions the Company to continue to be the preeminent partner for customers’ wireless connectivity services.”Founded in 2003, Broad Sky is a leading, single-source wireless provider for primary, temporary, failover, IoT, POTS replacement, satellite, and Future 5G across the U.S. and Canada. The company custom-engineers connectivity solutions for mid-market and enterprise customers designed to scale with their existing and future network infrastructure requirements.IntelliSite® provides the industry's most complete AI-enabled Edge Computing solution. Its applied solutions of Heuristic-Based Monitoring (hBM) and Smart Communities as-a-Service (SCaaS) are utilized by mid-market and enterprise-class customers, partners, and federal, state, and local governments worldwide. IntelliSite’s discovery and assessment methodology, combined with its blue-chip Partner Ecosystem and world-class IntelliCare service and support, delivers the very best outcome-based solutions and sets industry standards for the most reliable edge computing solution for their clients.About Capital SouthwestCapital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company, with approximately $286 million in net assets as of September 30, 2020. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 to $25 million investments across the capital structure, including first lien, unitranche, second lien, subordinated debt and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.About DFW Capital PartnersDFW Capital Partners is a private equity investment firm focused on lower middle-market companies. The firm concentrates on service companies, with an emphasis on healthcare and outsourced business and industrial support services. DFW has established a 20+ year track record of success in building leading companies. DFW is headquartered in Teaneck, New Jersey and maintains an office in Chevy Chase, Maryland. For more information visit www.dfwcapital.com.Forward-Looking StatementsThis press release contains historical information and forward-looking statements with respect to the business and investments of Capital Southwest. Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks related to: 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; and uncertainties associated with the impact from the COVID-19 pandemic, including its impact on the global and U.S. capital markets and the global and U.S. economy, the length and duration of the COVID-19 outbreak in the United States as well as worldwide and the magnitude of the economic impact of that outbreak; the effect of the COVID-19 pandemic on our business prospects and the operational and financial performance of our portfolio companies, including our ability and their ability to achieve their respective objectives, and the effects of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business.Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2020 and subsequent filings, including the "Risk Factors" sections therein, with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.Investor Relations Contact: Michael S. Sarner, Chief Financial Officer 214-884-3829
Wed, 09 Dec 2020
21:01:00 +0000
Capital Southwest Supports Mountaingate Capital’s Investment in Acceleration Partners
DALLAS, Dec. 09, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, announced today that it supported Mountaingate Capital’s (“Mountaingate”) investment in Acceleration Partners LLC (“Acceleration Partners” or the “Company”) with a senior secured first lien term loan and delayed draw facility, as well as a minority equity investment. Capital Southwest led the financing. East West Bank provided a revolver and was a minority co-lender in the term loan and delayed draw facility. "We are thrilled to partner with Mountaingate on another digital marketing services business through its investment in Acceleration Partners,” said Douglas Kelley, Managing Director of Capital Southwest. “Acceleration Partners’ management team has earned a remarkable reputation as the leader in the partner marketing industry.” Ryan Kelly, Principal of Capital Southwest, said, “Acceleration Partners helps brands efficiently grow their online marketing partnerships and we’re pleased to support Mountaingate’s vision of scaling the Company as they’ve done with their other marketing services platforms.”Founded in 2007 and headquartered in Needham, MA, Acceleration Partners is the premier global partner marketing agency. By focusing on Better People, Better Process and Better Performance, the Acceleration Partners team sets the standard for how brands efficiently grow and refine their marketing partnerships anywhere in the world. A trusted agency partner to leading brands, Acceleration Partners’ team of seasoned marketers and industry experts help companies build meaningful, lasting, performance-based relationships with strategic partners. Acceleration Partners has received several prestigious awards and accolades for both client services and culture, including “Best Agency” (International Performance Marketing Awards), “Best Workplaces” (Inc.), “Best Places to Work” (Glassdoor), “Most Committed to Work-Life Balance” (Digiday).About Capital SouthwestCapital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company, with approximately $286 million in net assets as of September 30, 2020. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 to $25 million investments across the capital structure, including first lien, unitranche, second lien, subordinated debt and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.About Mountaingate CapitalMountaingate Capital, based in Denver, CO, is a private equity firm that specializes in building and empowering companies with strong growth potential and engaged leadership teams. The firm was launched by a team of partners with deep investment expertise in four distinct market sectors: marketing services, business/industrial services, specialty distribution and specialty manufacturing. Mountaingate’s focus on organic growth coupled with its proven customer-centric buy-and-build approach for add-on acquisitions and shared equity ownership with management creates more value for the end customer, while forging stronger, more collaborative, and more successful investment partnerships with management teams. In 2017, Mountaingate announced the close of its first fund with $395 million in capital commitments. Mountaingate targets investments in new platform companies typically with $5 million to $25 million of EBITDA. For more information on Mountaingate, please visit www.Mountaingate.com.Forward-Looking StatementsThis press release contains historical information and forward-looking statements with respect to the business and investments of Capital Southwest. Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks related to: 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; and uncertainties associated with the impact from the COVID-19 pandemic, including its impact on the global and U.S. capital markets and the global and U.S. economy, the length and duration of the COVID-19 outbreak in the United States as well as worldwide and the magnitude of the economic impact of that outbreak; the effect of the COVID-19 pandemic on our business prospects and the operational and financial performance of our portfolio companies, including our ability and their ability to achieve their respective objectives, and the effects of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business.Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2020 and subsequent filings, including the "Risk Factors" sections therein, with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.Investor Relations Contact: Michael S. Sarner, Chief Financial Officer 214-884-3829
Fri, 04 Dec 2020
13:33:49 +0000
Where Do Hedge Funds Stand On Capital Southwest Corporation (CSWC)?
With the third-quarter round of 13F filings behind us it is time to take a look at the stocks in which some of the best money managers in the world preferred to invest or sell heading into the fourth quarter. One of these stocks was Capital Southwest Corporation (NASDAQ:CSWC). Is Capital Southwest Corporation (NASDAQ:CSWC) a […]
Mon, 30 Nov 2020
05:47:45 +0000
Capital Southwest's (NASDAQ:CSWC) Stock Price Has Reduced 22% In The Past Year
Capital Southwest Corporation (NASDAQ:CSWC) shareholders will doubtless be very grateful to see the share price up 30...
Fri, 13 Nov 2020
19:11:32 +0000
3 Big Dividend Stocks Yielding at Least 10%; Analysts Say ‘Buy’
Markets continued their upward trend this week, gaining ground since the November 3 vote. There is an optimistic view that politics will settle into a more normal pattern with a new Administration. Even so, investors have been wary this past autumn – as there is plenty to be wary about. The coronavirus has started a comeback with the advent of cooler weather, and the political uncertainty that surrounded the election has left the status of further economic stimulus packages in limbo.It’s times like these that investors start taking a renewed interest in dividend stocks. These are the classic defensive stocks, and for good reason: a reliable dividend keeps the income flowing, no matter what the markets do. Wall Street analysts have chimed in – and they are recommending high-yield dividend stocks for investors looking to find protection for their portfolio. Here, we’ll take a look at three stocks that fit a profile -- a dividend yield that gives at least 10%, and a Strong Buy rating from the analyst community.Stellus Capital (SCM)Stellus Capital offers capital solutions (read: debt financing) for companies in the lower mid-market range. These are companies that may have difficulty accessing capital through large banks; Stellus shoulders the higher risk as an investment opportunity. The capital company’s portfolio includes 67 companies, $1.6 billion in assets under management, and over $6 billion in total funds invested.Stellus has been raising its dividend payment this year. The next dividend has already been declared for December, and shows an effective increase to 31 cents per common share. This comes from combining the regular 25 cent payment with a special 6-cent dividend, and after the company paid out 25 cents per share in the previous two quarters. Counting the regular dividend, the payment annualizes to $1 per common share, and gives a yield of 10.91%.Writing from Raymond James, analyst Robert Dodd says, “Core earnings covered the base dividend in 3Q20, and a strong spillover position should cushion the dividend in 2021. We continue to view the risk /reward attractively."The analyst added, "The SCM pipeline looks robust, with ~10 portfolio companies going through various stages of due diligence. Repayments in 4Q20 could be as high as $30M - with a modest positive impact to NAV from exits above fair value marks at 3Q20.”To this end, Dodd rates SCM shares an Outperform (i.e. Buy) along with a $11 price target. This figure implies a 17% upside from current levels. (To watch Dodd’s track record, click here)Overall, Stellus’ Strong Buy analyst consensus rating is based on 4 reviews, including 3 Buys and 1 Hold. The stock is selling for $9.43 and its average price target of $10.17 suggests it has a one-year upside potential of ~8%. (See SCM stock analysis on TipRanks)WhiteHorse Finance (WHF)Next up is WhiteHorse Finance, another BDC. WhiteHorse’s focus is on small-cap companies, valued at $50 million to $350 million, and WHF’s investments are typically in the $10 million to $50 million range. WhiteHorse’s portfolio totals more than $595 million.A better outlook for the future, based on earnings recovery, has given a firm foundation to dividend payments, and WhiteHorse has kept up its 35.5 cents regular dividend. Combined with a 12.5 cent special dividend, this makes the most recent payment 48 cents per common share. The yield is a sky-high 12.29%.Oppenheimer analyst Chris Kotowski is upbeat about WhiteHorse, noting “WHF reported 3Q20 core net investment income (NII) of $0.38/share versus our $0.32 estimate and consensus' $0.29E. The bottom line was boosted by an interest recovery, but what encouraged us most was both growth and improvement in asset quality. $58.3M of funding activity was only partially offset by only $26.5M of repayments, driving ~8.8% linked-quarter growth in investments alongside mark appreciation."The 5-star analyst added, "Management seemed optimistic about the outlook for loan growth, saying that it was perhaps the best environment they had seen since 2012–2013, and they clearly have the capacity to put capital to work. The current gross leverage of 0.94x (and net 0.87x) sits below management's 1.00–1.25x target leverage, leaving ample room for growth in coming quarters amidst a strong investment pipeline."As a result, Kotowski gives the stock an Outperform (i.e. Buy) rating, and his $15 price target implies a robust 29% upside for the year ahead. (To watch Kotowski’s track record, click here)Overall, WhiteHorse has a unanimous Strong Buy analyst consensus rating, with 3 buy-side reviews on record. The stock is currently priced at $11.65 and its $13.25 average price target suggests it has a one-year upside of 14%. (See WHF stock analysis on TipRanks)Capital Southwest Corporation (CSWC)Last but not least is Capital Southwest, another Texas-based company in the business development sector. CSWC focuses on lending and credit options for mid-market companies. Capital Southwest boasts a portfolio featuring $664 million invested into 69 companies, and has over $150 million in liquidity available.Revenues have been recovering since going negative in Q1, at the height of the corona crisis. Sequential gains in both Q1 and Q2 have brought quarterly revenues to $21 million, while earnings in Q3 showed a strong spike to 45 cents per share, the highest value in over two years.Rising earnings have allowed Capital Southwest to keep up its history of reliable dividend payments. The company raised its dividend going into 2020, and has maintained the 51-cent payment all year. The 10.5% yield is more than 4x higher than the average found among financial sector peer companies, bringing CSWC to the attention of dividend investors.Among CSWC's fans is JMP analyst Devin Ryan, who rates the stock a Buy and gives it a $17 price target. (To watch Ryan's track record, click here)"Overall, we think results for the quarter were strong and that Capital Southwest is one of the most attractive ways to gain exposure to lower-middle-market direct originations. We highlight improving credit quality, strong portfolio growth, a solid pipeline of deal flow, sustainable core/supplemental dividends and management’s focus on expenses as reasons we think the stock is positioned to outperform," Ryan opined.All in all, CSWC has a Strong Buy rating from the analyst consensus, with 3 recent Buy reviews and 1 Hold. Shares have an average price target of $15.67, which is almost flat compared to the current trading price. The real return here is in the dividend. (See CSWC stock analysis at TipRanks)
Tue, 03 Nov 2020
04:32:22 +0000
Capital Southwest (CSWC) Q2 2021 Earnings Call Transcript
CSWC earnings call for the period ending September 30, 2020.
Fri, 30 Oct 2020
21:15:09 +0000
Capital Southwest (CSWC) Q2 Earnings and Revenues Surpass Estimates
Capital Southwest (CSWC) delivered earnings and revenue surprises of 15.38% and 6.33%, respectively, for the quarter ended September 2020. Do the numbers hold clues to what lies ahead for the stock?
Fri, 30 Oct 2020
20:01:00 +0000
Capital Southwest Announces Financial Results for Second Fiscal Quarter Ended September 30, 2020 and Announces Total Dividends of $0.51 per share for the Quarter Ended December 31, 2020
CSWC Reports Pre-Tax Net Investment Income of $0.44 Per Share and Estimates Undistributed Taxable Income at Quarter End of $1.19 Per ShareDALLAS, Oct. 30, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest,” “CSWC” or the “Company”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, today announced its financial results for the second fiscal quarter ended September 30, 2020. Second Quarter Fiscal Year 2021 Financial Highlights●Total Investment Portfolio: $631.2 million  ○Credit Portfolio of $520.6 million:   ▪91% 1st Lien Senior Secured Debt   ▪$63.3 million in new committed credit investments   ▪Weighted Average Yield on Debt Investments: 10.3%   ▪No new credit investments placed on non-accrual during the quarter    ●Three Upper Middle Market 1st Lien Senior Secured Debt investments remain on non-accrual with a fair value of $10.9 million, representing 1.7% of the total investment portfolio  ○Equity Portfolio of $49.1 million, excluding investment in I-45 Senior Loan Fund ("I-45 SLF")   ▪$3.0 million in new committed equity co-investments  ○CSWC Investment in I-45 SLF of $61.5 million at fair value   ▪I-45 SLF portfolio of $177.5 million    ●Portfolio consists of 42 issuers: 96% 1st Lien Debt and 4% 2nd Lien Debt   ▪$107.0 million of debt outstanding at I-45 SLF as of September 30, 2020    ●I-45 SLF fund leverage of 1.39x debt to equity at fair value at quarter end   ▪I-45 SLF paid a $1.7 million quarterly dividend to CSWC, an annualized yield of 11.0% ●Pre-Tax Net Investment Income: $8.1 million, or $0.44 per weighted average diluted share ●Dividends: Paid $0.41 per share Regular Dividend, $0.10 per share Supplemental Dividend  ○103% LTM Pre-Tax NII Regular Dividend Coverage  ○Total Dividends for the quarter ended September 30, 2020 of $0.51 per share  ○Undistributed Taxable Income at quarter end estimated at $1.19 per share ●Net Realized and Unrealized Portfolio Appreciation: $8.4 million  ○$7.0 million of net appreciation related to the upper middle market portfolio, including I-45 SLF  ○$1.4 million of net appreciation related to the lower middle market portfolio ●Realized Loss on Extinguishment of Debt: $0.3 million  ○Redeemed $20 million in aggregate principal of the 5.95% Notes due 2022 (the "December 2022 Notes") ●Balance Sheet:  ○Cash and Cash Equivalents: $16.0 million  ○Total Net Assets: $286.1 million  ○Net Asset Value (“NAV”) per Share: $15.36 In commenting on the Company's results, Bowen Diehl, President and Chief Executive Officer, stated, “This quarter, we saw strong performance in both the Upper and Lower Middle Market portfolios. Our portfolio appreciated $8.4 million this quarter, increasing NAV per share from $14.95 to $15.36. From an investment rating perspective, our portfolio experienced two loan upgrades and zero downgrades, as well as no new non-accruing loans recorded during the quarter. On the new origination front, we remained active, committing $66.3 million in originations to both new and existing portfolio companies. We are also pleased to announce Pre-Tax Net Investment Income of $0.44 per share. We recently announced a Regular Dividend of $0.41 per share for the quarter, as well as an additional $0.10 per share funded by our large UTI (undistributed taxable income) balance. Total dividends of $0.51 per share for the quarter were flat from the prior quarter. We continued to be active in the capital markets, issuing $50 million in aggregate principal of 5.375% Notes due 2024 at par. We continue the process toward receiving a license from the U.S. Small Business Administration, submitting our final license application during the quarter. We are hopeful that we will receive formal license approval by the end of this calendar year. This license will allow us to access $175 million in long term, cost effective debt capital to deploy in our lower middle market strategy. This would clearly be a major milestone for Capital Southwest and one that once in place will provide significant earnings power for our shareholders.” Second Quarter Fiscal Year Investment ActivitiesDuring the quarter ended September 30, 2020, the Company originated investments in four new portfolio companies and six follow-on investments in existing portfolio companies, totaling $66.3 million in capital commitments. New portfolio company investment transactions that occurred during the quarter ended September 30, 2020 are summarized as follows:Electronic Transaction Consultants LLC, $10.0 million 1st Lien Senior Secured Debt, $3.7 million Revolving Loan, $1.0 million Common Equity: Electronic Transaction Consultants Corporation designs, implements, supports and maintains software systems used to facilitate electronic toll collections for toll road authorities and operators.Ian, Evan, & Alexander Corporation (d/b/a EverWatch), $10.0 million 1st Lien Senior Secured Debt, $2.0 million Revolving Loan: EverWatch is a technology solutions company providing advanced defense, intelligence, and deployed support to mission critical missions in the national security and intelligence space.RTIC Subsidiary Holdings, LLC, $6.9 million 1st Lien Senior Secured Debt, $1.1 million Revolving Loan: RTIC Holdings, LLC is the largest pure-play direct-to-consumer eCommerce provider of high-quality outdoor products that are priced for value-conscious outdoor enthusiasts.Sonobi, Inc., $8.5 million 1st Lien Senior Secured Debt, $0.5 million Common Equity: Sonobi, Inc. is a digital media technology platform that directly connects advertisers in order to efficiently connect brands with their desired consumers.During the quarter ended September 30, 2020, the Company received full prepayment on two Lower Middle Market investments totaling $20.8 million.Danforth Advisors, LLC: Proceeds of $6.7 million, generating an IRR of 12.4%.Trinity 3, LLC: Proceeds of $14.1 million, generating an IRR of 13.4%.Second Fiscal Quarter 2021 Operating ResultsFor the quarter ended September 30, 2020, Capital Southwest reported total investment income of $16.7 million, compared to $15.2 million in the prior quarter. The increase in investment income was primarily attributable to an increase in average debt investments outstanding and an increase in weighted average yield on debt investments, as well as an increase in non-recurring amendment and prepayment fees received from portfolio companies during the quarter.For the quarter ended September 30, 2020, total operating expenses (excluding interest expense) were $4.2 million, compared to $3.7 million in the prior quarter. The increase in expenses was due mainly to a true-up to our annual bonus accrual based on improvement in our overall portfolio performance, as well as an increase in share-based compensation due to additional restricted stock awards granted in the prior quarter.For the quarter ended September 30, 2020, interest expense was $4.4 million as compared to $4.3 million in the prior quarter. The increase was due to the issuance in August 2020 of the additional 5.375% Notes due 2024.For the quarter ended September 30, 2020, total pre-tax net investment income was $8.1 million, compared to $7.2 million in the prior quarter.For the quarter ended September 30, 2020, Capital Southwest had a tax benefit of $0.2 million as compared to tax expense of $0.4 million in the previous quarter. The decrease was primarily due to losses from partnership investments held in the Taxable Subsidiary.During the quarter ended September 30, 2020, Capital Southwest recorded total net realized and unrealized gains on investments of $8.4 million, compared to $2.1 million in the prior quarter. For the quarter ended September 30, 2020, this included total net realized losses on investments of $1.3 million and net unrealized appreciation on investments of $9.6 million, of which $1.3 million was the reversal of net unrealized depreciation recognized in prior periods due to realized losses noted above. The net increase in net assets resulting from operations was $16.4 million for the quarter, compared to $8.9 million in the prior quarter.The Company’s NAV at September 30, 2020 was $15.36 per share, as compared to $14.95 at June 30, 2020. The increase in NAV per share from the prior quarter is primarily due to net unrealized appreciation on the investment portfolio.Liquidity and Capital ResourcesAt September 30, 2020, Capital Southwest had approximately $16.0 million in unrestricted cash and money market balances, $187.0 million of total debt outstanding on the Credit Facility, $56.3 million, net of unamortized debt issuance costs, of the December 2022 Notes outstanding, and $122.6 million, net of unamortized debt issuance costs, of the October 2024 Notes outstanding. As of September 30, 2020, Capital Southwest had $134.6 million in available borrowings under the Credit Facility. The debt to equity ratio at the end of the quarter was 1.28 to 1.In September 2019, the Company issued $65.0 million in aggregate principal amount of 5.375% Notes due 2024 (the “Existing October 2024 Notes”). On October 8, 2019, the Company issued an additional $10.0 million in aggregate principal amount of the October 2024 Notes (the "Additional October 2024 Notes" together with the Existing October 2024 Notes, the "October 2024 Notes"). In August 2020, the Company issued an additional $50.0 million in aggregate principal amount of the October 2024 Notes (the "New Notes" together with the Existing October 2024 Notes and the Additional October 2024 Notes, the "October 2024 Notes"). The total net proceeds from the offering of the October 2024 Notes was $122.5 million, before offering expenses payable by us. The October 2024 Notes mature on October 1, 2024 and may be redeemed in whole or in part at any time prior to July 1, 2024, at par plus a “make-whole” premium, and thereafter at par. The October 2024 Notes bear interest at a rate of 5.375% per year, payable semi-annually on April 1 and October 1 of each year, beginning on April 1, 2020.On September 29, 2020 (the "Redemption Date"), the Company redeemed $20 million in aggregate principal of the December 2022 Notes. The December 2022 Notes were redeemed at 100% of their principal amount, plus the accrued and unpaid interest thereon, through, but excluding the Redemption Date. Accordingly, during the three months ended September 30, 2020, the Company recognized realized losses on the extinguishment of debt of $0.3 million, equal to the write-off of the related unamortized debt issuance costs during the quarter ended September 30, 2020.In December 2018, the Company entered into the Amended and Restated Senior Secured Revolving Credit Agreement (the "Amended and Restated Agreement"), and a related Amended and Restated Guarantee, Pledge and Security Agreement, to amend and restate its Senior Secured Revolving Credit Facility (the "Credit Facility"). On May 23, 2019, the Company entered into an Incremental Assumption Agreement, which increased the total commitments under the Credit Facility by $25 million. The increase was executed under the accordion feature of the Credit Facility and increased total commitments from $270 million to $295 million. On March 19, 2020, CSWC entered into an Incremental Assumption Agreement, which increased the total commitments under the accordion feature of the Credit Facility by $30 million, increasing total commitments from $295 million to $325 million.On March 4, 2019, the Company entered into separate equity distribution agreements with certain sales agents through which it may offer and sell, from time to time, shares of its common stock having an aggregate offering price of up to $50,000,000 (the "Equity ATM Program"). On February 4, 2020, the Company (i) increased the maximum amount of shares of its common stock to be sold through the Equity ATM Program to $100,000,000 from $50,000,000 and (ii) added two additional sales agents to the Equity ATM Program.During the quarter ended September 30, 2020, the Company sold 35,112 shares of its common stock under the Equity ATM Program at a weighted-average price of $14.99 per share, raising $0.5 million of gross proceeds. Net proceeds were $0.5 million after commissions to the sales agents on shares sold. Cumulative to date, the Company has sold 1,903,377 shares of its common stock under the Equity ATM Program at a weighted-average price of $20.31, raising $38.7 million of gross proceeds. Net proceeds were $37.9 million after commissions to the sales agents on shares sold. As of September 30, 2020, the Company has $61.3 million available under the Equity ATM Program.Additionally, I-45 SLF has total commitments outstanding of $150 million from a group of four bank lenders in its Deutsche Bank led credit facility, which is scheduled to mature in November 2024. As of September 30, 2020, I-45 SLF had $107 million in borrowings outstanding under its credit facility.Share Repurchase ProgramOn January 25, 2016, Capital Southwest announced that its Board of Directors authorized the repurchase of up to $10.0 million of its common stock at prices below the Company’s net asset value per share as reported in its most recent financial statements. The Board authorized the share repurchase program because it believes that the Company’s common stock may be undervalued from time to time due to market volatility.On March 26, 2020, the aggregate amount of the Company’s common stock purchased (inclusive of commission fees) pursuant to the share repurchase agreement met the threshold set forth in the share repurchase agreement and, as a result, the Company ceased purchasing common stock under the share repurchase program on such date. Cumulative to date, the Company has repurchased a total of 840,543 shares at an average price of $11.85 per share, including commissions paid. Accordingly, during the quarter ended September 30, 2020, the Company did not repurchase any shares of the Company's common stock under the share repurchase program.Declared Dividend of $0.51 Per Share for Quarter Ended December 31, 2020On October 21, 2020, the Board declared total dividends of $0.51 per share for the quarter ended December 31, 2020, comprised of a Regular Dividend of $0.41 per share and a Supplemental Dividend of $0.10 per share.The Company's dividend will be payable as follows:December 31, 2020 DividendAmount Per Share:$0.51 Ex-Dividend Date:December 14, 2020 Record Date:December 15, 2020 Payment Date:December 31, 2020 When declaring dividends, the Board reviews estimates of taxable income available for distribution, which may differ from net investment income under generally accepted accounting principles. The final determination of taxable income for each year, as well as the tax attributes for dividends in such year, will be made after the close of the tax year. Capital Southwest maintains a dividend reinvestment plan ("DRIP") that provides for the reinvestment of dividends on behalf of its registered stockholders who hold their shares with Capital Southwest’s transfer agent and registrar, American Stock Transfer and Trust Company. Under the DRIP, if the Company declares a dividend, registered stockholders who have opted into the DRIP by the dividend record date will have their dividend automatically reinvested into additional shares of Capital Southwest common stock. Second Quarter 2021 Earnings Results Conference Call and WebcastCapital Southwest has scheduled a conference call on Monday, November 2, 2020, at 11:00 a.m. Eastern Time to discuss the second quarter 2021 financial results. You may access the call by dialing (866) 502-8274 and using the Conference ID 2058491 at least 10 minutes before the call. The call can also be accessed using the Investor Relations section of Capital Southwest's website at www.capitalsouthwest.com, or by using http://edge.media-server.com/mmc/p/zcmbebos.A telephonic replay will be available through November 9, 2020 by dialing (855) 859-2056 and using the Conference ID 2058491. An audio archive of the conference call will also be available on the Investor Relations section of Capital Southwest’s website.For a more detailed discussion of the financial and other information included in this press release, please refer to the Capital Southwest Form 10-Q for the period ended September 30, 2020 to be filed with the Securities and Exchange Commission and Capital Southwest’s Second Fiscal Quarter 2021 Earnings Presentation to be posted on the Investor Relations section of Capital Southwest’s website at www.capitalsouthwest.com.About Capital SouthwestCapital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $286 million in net assets as of September 30, 2020. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $25 million investments across the capital structure, including first lien, unitranche, second lien, subordinated debt and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.Forward-Looking StatementsThis press release contains historical information and forward-looking statements with respect to the business and investments of Capital Southwest. Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include 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; and uncertainties associated with the impact from the COVID-19 pandemic, including its impact on the global and U.S. capital markets and the global and U.S. economy, the length and duration of the COVID-19 outbreak in the United States as well as worldwide and the magnitude of the economic impact of that outbreak; the effect of the COVID-19 pandemic on our business prospects and the operational and financial performance of our portfolio companies, including our ability and their ability to achieve their respective objectives, and the effects of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business.Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2020 and subsequent filings, including the "Risk Factors" sections therein, with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.Investor Relations Contact:Michael S. Sarner, Chief Financial Officer 214-884-3829CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (In thousands, except shares and per share data)         September 30, March 31,   2020 2020   (Unaudited)   Assets     Investments at fair value:     Non-control/Non-affiliate investments (Cost: $488,474 and $436,463, respectively) $483,552  $421,280  Affiliate investments (Cost: $89,548 and $94,724, respectively) 86,162  92,032  Control investments (Cost: $80,800 and $68,000, respectively) 61,483  39,760  Total investments (Cost: $658,822 and $599,187, respectively) 631,197  553,072  Cash and cash equivalents 16,011  13,744  Receivables:     Dividends and interest 10,170  10,389  Escrow 1,150  1,643  Other 300  51  Income tax receivable 344  147  Deferred tax asset 1,421  1,402  Debt issuance costs (net of accumulated amortization of $3,144 and $2,720, respectively) 2,556  2,980  Other assets 1,116  1,531  Total assets $664,265  $584,959        Liabilities     December 2022 Notes (Par value: $57,136 and $77,136, respectively) $56,339  $75,812  October 2024 Notes (Par value: $125,000 and $75,000, respectively) 122,623  73,484  Credit facility 187,000  154,000  Other liabilities 6,526  4,883  Accrued restoration plan liability 3,011  3,082  Income tax payable 649  513  Deferred tax liability 1,988  963  Total liabilities 378,136  312,737        Commitments and contingencies (Note 10)           Net Assets     Common stock, $0.25 par value: authorized, 40,000,000 shares; issued, 20,962,764 shares at September 30, 2020 and 20,337,610 shares at March 31, 2020 5,241  5,085  Additional paid-in capital 318,307  310,846  Total distributable earnings (loss) (13,482) (19,772) Treasury stock - at cost, 2,339,512 shares (23,937) (23,937) Total net assets 286,129  272,222  Total liabilities and net assets $664,265  $584,959  Net asset value per share (18,623,252 shares outstanding at September 30, 2020 and 17,998,098 shares outstanding at March 31, 2020) $15.36  $15.13  CAPITAL SOUTHWEST CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (In thousands, except shares and per share data)             Three Months Ended Six Months Ended   September 30, September 30,   2020 2019 2020 2019 Investment income:         Interest income:         Non-control/Non-affiliate investments $11,879  $9,236  $21,948  $18,267  Affiliate investments 2,003  2,001  4,579  4,051  Control investments —  —  —  265  Dividend income:         Non-control/Non-affiliate investments 171  68  354  155  Affiliate investments —  —  —  19  Control investments 1,689  3,519  3,463  7,432  Interest income from cash and cash equivalents 4  12  7  28  Fees and other income 939  382  1,498  800  Total investment income 16,685  15,218  31,849  31,017  Operating expenses:         Compensation 1,961  1,708  3,681  3,729  Share-based compensation 853  685  1,465  1,522  Interest 4,397  3,716  8,725  7,522  Professional fees 583  462  1,153  1,088  Net pension expense 33  35  66  71  General and administrative 754  1,231  1,486  2,020  Total operating expenses 8,581  7,837  16,576  15,952  Income before taxes 8,104  7,381  15,273  15,065  Income tax (benefit) expense (215) 566  135  890  Net investment income $8,319  $6,815  $15,138  $14,175  Realized (loss) gain         Non-control/Non-affiliate investments $349  $267  $(5,198) $1,316  Affiliate investments (1,628) 16  (1,628) 17  Control investments —  —  —  167  Total net realized (loss) gain on investments, net of tax (1,279) 283  (6,826) 1,500  Net unrealized appreciation (depreciation) on investments         Non-control/Non-affiliate investments 3,919  (809) 10,824  (3,781) Affiliate investments 1,710  (181) (1,257) 1,025  Control investments 4,732  (2,904) 8,923  (2,819) Income tax (provision) benefit (725) (475) (1,249) (658) Total net unrealized appreciation (depreciation) on investments, net of tax 9,636  (4,369) 17,241  (6,233) Net realized and unrealized gains (losses) on investments 8,357  (4,086) 10,415  (4,733) Realized losses on extinguishment of debt (286) —  (286) —  Net increase in net assets from operations $16,390  $2,729  $25,267  $9,442            Pre-tax net investment income per share - basic and diluted $0.44  $0.42  $0.83  $0.85  Net investment income per share – basic and diluted $0.45  $0.38  $0.82  $0.80  Net increase in net assets from operations – basic and diluted $0.88  $0.15  $1.37  $0.53  Weighted average shares outstanding – basic 18,600,443  17,770,011  18,375,402  17,653,607  Weighted average shares outstanding – diluted 18,600,443  17,770,011  18,375,402  17,653,607
Thu, 29 Oct 2020
14:14:59 +0000
Earnings Outlook For Capital Southwest
Capital Southwest (NASDAQ: CSWC) unveils its next round of earnings this Friday, October 30. Here is Benzinga's everything-that-matters guide for the earnings announcement.What Are Earnings, Net Income, And Earnings Per Share? Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.Earnings And Revenue Based on Capital Southwest management projections, analysts predict EPS of $0.39 on revenue of $15.75 million. In the same quarter last year, Capital Southwest posted EPS of $0.38 on sales of $15.22 million.What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter? Wall Street analysts who study this company will publish analyst estimates of revenue and EPS. The averages of all analyst EPS and revenue estimates are called the "consensus estimates"; these consensus estimates can have a significant effect on a company's performance during an earnings release. When a company posts earnings or revenue above or below a consensus estimate, it has posted an "earnings surprise", which can really move a stock depending on the difference between actual and estimated values.View more earnings on CSWCThe Wall Street estimate would represent a 2.63% increase in the company's earnings. Sales would be up 3.5% from the same quarter last year. The company's reported EPS has stacked up against analyst estimates in the past like this:Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2019 EPS Estimate 0.38 0.39 0.38 0.42 EPS Actual 0.38 0.37 0.39 0.38 Revenue Estimate 15.49 M 15.63 M 15.71 M 15.33 M Revenue Actual 15.16 M 15.04 M 15.98 M 15.22 M Stock Performance Shares of Capital Southwest were trading at $13.28 as of October 28. Over the last 52-week period, shares are down 41.06%. Given that these returns are generally negative, long-term shareholders are likely unhappy going into this earnings release.Do not be surprised to see the stock move on comments made during its conference call. Capital Southwest is scheduled to hold the call at 11:00:00 ET and can be accessed here.See more from Benzinga * Click here for options trades from Benzinga * CSW Industrials's Earnings Outlook * Earnings Outlook for Magellan Midstream(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Wed, 28 Oct 2020
20:01:00 +0000
Capital Southwest Supports Cohere Capital’s Investment in Sonobi
DALLAS, Oct. 28, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, announced today that it supported Cohere Capital’s (“Cohere”) recent investment in Sonobi, Inc. (“Sonobi” or the “Company”) with a first lien term loan and equity co-investment. Capital Southwest led the financing transaction and will act as the sole administrative agent on the credit facility. "We are excited to partner with Cohere and Sonobi. Cohere brings extensive experience in the advertising technology space, and we look forward to supporting the business in its next phase of growth," said Josh Weinstein, Managing Director of Capital Southwest. Grant Eason, Vice President of Capital Southwest said, “Sonobi plays a critical role in the digital advertising ecosystem and through its Jetstream solution is at the forefront of the industry’s transition to first party data.”Since its inception in 2012, Sonobi has been a pioneer in digital advertising technology and programmatic spend. Sonobi’s people-based identifier (PBID) incorporates multiple identity approaches into a single ID that is cross-compatible and able to match first-party data from both publishers and brands, solving for identity across screens and environments. With access to over 125 million people across premium publications on the Sonobi platform, advertisers are now able to reach large audiences in cookie-less environments with increased transparency.About Capital SouthwestCapital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company, with approximately $278 million in net assets as of June 30, 2020. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 to $25 million investments across the capital structure, including first lien, unitranche, second lien, subordinated debt and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.About Cohere CapitalCohere Capital is a Boston-based private equity firm focused exclusively on middle market growth companies. Cohere Capital has a flexible mandate across growth markets, but primarily targets recapitalizations and growth investments in rapidly growing technology-enabled services companies.Forward-Looking StatementsThis press release contains historical information and forward-looking statements with respect to the business and investments of Capital Southwest. Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks related to: 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; and uncertainties associated with the impact from the COVID-19 pandemic, including its impact on the global and U.S. capital markets and the global and U.S. economy, the length and duration of the COVID-19 outbreak in the United States as well as worldwide and the magnitude of the economic impact of that outbreak; and the effect of the COVID-19 pandemic on our business prospects and the operational and financial performance of our portfolio companies, including our ability and their ability to achieve their respective objectives, and the effects of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business.Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2020 and subsequent filings, including the "Risk Factors" sections therein, with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.Investor Relations Contact: Michael S. Sarner, Chief Financial Officer 214-884-3829
Fri, 23 Oct 2020
16:30:04 +0000
Capital Southwest (CSWC) Earnings Expected to Grow: Should You Buy?
Capital Southwest (CSWC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Wed, 14 Oct 2020
20:27:00 +0000
Capital Southwest Announces Second Quarter Fiscal Year 2021 Earnings Release and Conference Call Schedule
Call Scheduled for 11:00 a.m. Eastern Time on Monday, November 2, 2020DALLAS, Oct. 14, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest” or the “Company”; Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, announced today that it will release its second quarter 2021 results on Friday, October 30, 2020 after the market closes. In conjunction with the release, Capital Southwest has scheduled a conference call which will be broadcast live via phone and over the Internet on Monday, November 2, 2020 at 11:00 a.m. Eastern time. Investors may participate either by phone or audio webcast. By Phone: Dial (866)-502-8274 and provide the operator with Conference ID 2058491 at least 10 minutes before the call. A replay of the conference call will be available shortly afterwards, until November 9, 2020, by dialing (855)-859-2056 and entering Conference ID 2058491.By Webcast: Connect to the webcast using the Investor Relations section of Capital Southwest's website at www.capitalsouthwest.com, or by using https://edge.media-server.com/mmc/p/zcmbebos. Please log in at least 10 minutes in advance to register and download any necessary software. A replay of the conference call will be available on Capital Southwest's website shortly after the call.About Capital SouthwestCapital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $278 million in net assets as of June 30, 2020. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $25 million investments across the capital structure, including first lien, unitranche, second lien, subordinated debt and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.Forward-Looking StatementsThis press release contains historical information and forward-looking statements with respect to the business and investments of Capital Southwest. Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks related to 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; and uncertainties associated with the impact from the COVID-19 pandemic, including its impact on the global and U.S. capital markets and the global and U.S. economy, the length and duration of the COVID-19 outbreak in the United States as well as worldwide and the magnitude of the economic impact of that outbreak; the effect of the COVID-19 pandemic on our business prospects and the operational and financial performance of our portfolio companies, including our ability and their ability to achieve their respective objectives, and the effects of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business.Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2020 and subsequent filings, including the "Risk Factors" sections therein, with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.Investor Relations Contact: Michael S. Sarner, Chief Financial Officer 214-884-3829
Tue, 01 Sep 2020
13:52:34 +0000
What Can We Learn About Capital Southwest's (NASDAQ:CSWC) CEO Compensation?
Bowen Diehl became the CEO of Capital Southwest Corporation (NASDAQ:CSWC) in 2015, and we think it's a good time to...
Thu, 13 Aug 2020
20:01:00 +0000
Capital Southwest Supports Align Capital Partners’ Acquisition of Electronic Transaction Consultants
DALLAS, Aug. 13, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest”) (Nasdaq: CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, announced today that it supported Align Capital Partners’ (“ACP”) recent acquisition of Electronic Transaction Consultants Corporation (“ETC” or the “Company”) from Italian parent company Atlantia SpA with a revolver, first lien term loan and equity co-investment. Capital Southwest led the financing transaction and will act as the sole administrative agent on the credit facility. Main Street Capital Corporation (NYSE: MAIN) and Principal Global Investors, LLC (an affiliate of Principal Financial Group, Nasdaq: PFG) were co-lenders on the term loan and the revolving credit facility.   "We are excited to partner with ACP and ETC. ACP brings extensive experience investing in the technology and business services sectors and we look forward to supporting ETC to invest in its technology and team to build out its Mobility-as-a-Service platform," said Douglas Kelley, Managing Director of Capital Southwest. Grant Eason, Vice President of Capital Southwest said, “ETC is a critical technology partner to a number of the largest tolling authorities in the country and is well-positioned to leverage its leading technology suite for new projects and agency relationships.”Headquartered in Richardson, TX, ETC is an industry-leading software and services provider of electronic tolling technology and smart mobility solutions. Founded in 1999, ETC serves electronic tolling agencies by providing back office and roadside services through its next-generation, modular software platform. The Company’s proprietary software utilizes artificial intelligence (“AI”) technology and big data to meet unique tolling and transportation needs at a lower cost to the customer.  About Capital SouthwestCapital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $278 million in net assets as of June 30, 2020. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $25 million investments across the capital structure, including first lien, unitranche, second lien, subordinated debt and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.About Align Capital PartnersAlign Capital Partners is a growth-oriented private equity firm that partners with business owners and management teams to create shared success. ACP manages $775 million in committed capital with investment teams in Cleveland and Dallas. ACP brings experience and resources to help lower-middle market companies accelerate their growth, to the benefit of management, employees, and the firm’s investors. ACP makes control investments in differentiated companies within the technology, business services, specialty manufacturing / distribution, and healthcare sectors.Forward-Looking StatementsThis press release contains historical information and forward-looking statements with respect to the business and investments of Capital Southwest. Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include 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; and uncertainties associated with the impact from the COVID-19 pandemic, including its impact on the global and U.S. capital markets and the global and U.S. economy, the length and duration of the COVID-19 outbreak in the United States as well as worldwide and the magnitude of the economic impact of that outbreak; the effect of the COVID-19 pandemic on our business prospects and the operational and financial performance of our portfolio companies, including our ability and their ability to achieve their respective objectives, and the effects of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business.Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2020 and subsequent filings, including the "Risk Factors" sections therein, with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.Investor Relations Contact: Michael S. Sarner, Chief Financial Officer 214-884-3829
Wed, 12 Aug 2020
20:46:00 +0000
Capital Southwest Corporation Prices Public Offering of $50.0 million of 5.375% Notes due 2024
DALLAS, Aug. 12, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (NASDAQ: CSWC) (“Capital Southwest”) is pleased to announce that it has priced an underwritten public offering of an additional $50.0 million in aggregate principal amount of 5.375% notes due 2024 (the “Notes”). The Notes are being issued at 100% of the principal amount per Note, resulting in a yield-to-maturity of 5.373%. The Notes are a further issuance of the 5.375% notes due 2024 that Capital Southwest issued on September 27, 2019 in an aggregate principal amount of $65.0 million and on October 8, 2019 in an aggregate principal amount of $10.0 million (together, the “Existing Notes”). The Notes will be treated as a single series with the Existing Notes under the indenture and will have the same terms as the Existing Notes. The Notes will have the same CUSIP number and will be fungible and rank equally with the Existing Notes. Upon the issuance of the Notes, the outstanding aggregate principal amount of Capital Southwest’s 5.375% notes due 2024 will be $125.0 million. The offering is subject to customary closing conditions and is expected to close on August 17, 2020.Capital Southwest intends to use the net proceeds from this offering to repay outstanding indebtedness under its credit facility. However, through re-borrowings under its credit facility, Capital Southwest intends to make investments in lower middle market and upper middle market portfolio companies in accordance with its investment objective and strategies, to make investments in marketable securities and other temporary investments, and for other general corporate purposes, including payment of operating expenses. As of August 11, 2020, Capital Southwest had $197.0 million of indebtedness outstanding under its credit facility. The credit facility matures on December 21, 2023, and borrowings under the credit facility currently bear interest on a per annum basis equal to LIBOR plus 2.50%.Raymond James & Associates, Inc. is acting as the book-running manager for this offering.Investors should carefully consider, among other things, Capital Southwest’s investment objective and strategies and the risks related to Capital Southwest and the offering before investing. The pricing term sheet dated August 12, 2020, the preliminary prospectus supplement dated August 12, 2020, and the accompanying prospectus dated August 15, 2019, each of which has been filed with the Securities and Exchange Commission, contain this and other information about Capital Southwest and should be read carefully before investing. A shelf registration statement relating to these securities is on file with and has been declared effective by the Securities and Exchange Commission. The offering may be made only by means of a preliminary prospectus supplement and an accompanying prospectus, copies of which may be obtained, when available, from Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716, by email: prospectus@raymondjames.com or by calling: 1-800-248-8863.The information in the pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release is not complete and may be changed. The pricing term sheet, the preliminary prospectus supplement, the accompanying prospectus and this press release do not constitute offers to sell or the solicitation of offers to buy, nor will there be any sale of the Notes referred to in this press release, in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of such state or jurisdiction.ABOUT CAPITAL SOUTHWESTCapital Southwest Corporation is a Dallas, Texas-based, internally managed Business Development Company, with approximately $278 million in net assets as of June 30, 2020. Capital Southwest is a middle-market lending firm focused on supporting the acquisition and growth of middle market businesses and makes investments ranging from $5 to $20 million in securities across the capital structure, including first lien, unitranche, second lien, subordinated debt, and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.FORWARD-LOOKING STATEMENTSThis press release may contain certain forward-looking statements within the meaning of the federal securities laws, including statements with regard to Capital Southwest’s Notes offering, the expected proceeds from the offering and the anticipated use of the net proceeds of the offering. These statements are often, but not always, made through the use of word or phrases such as “will,” “may,” “could,” “expect,” and similar expressions and variations or negatives of these words. These statements are based on management’s current expectations, assumptions, and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties, and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include risks identified from time to time in Capital Southwest’s filings with the Securities and Exchange Commission. Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest’s prospectus and applicable prospectus supplement for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.CONTACT: Michael S. Sarner, Chief Financial Officer msarner@capitalsouthwest.com 214-884-3829
Wed, 05 Aug 2020
20:01:00 +0000
Capital Southwest Supports VertexOne’s Acquisition of WaterSmart
DALLAS, Aug. 05, 2020 (GLOBE NEWSWIRE) -- Capital Southwest Corporation (“Capital Southwest”) (Nasdaq:CSWC), an internally managed business development company focused on providing flexible financing solutions to support the acquisition and growth of middle market businesses, announced today that it recently supported the acquisition of WaterSmart by Vertex Business Services (“VertexOne”) with first lien financing and equity co-investment.  Capital Southwest serves as administrative agent on the credit facility. East West Bank is a first out lender in the term loan and provides a revolving credit facility. VertexOne acquired WaterSmart, a provider of SaaS customer engagement and analytics for city and county water utilities. WaterSmart currently serves approximately 150 North American water utility customers in 33 states. The acquisition of WaterSmart broadens VertexOne’s product offering allowing VertexOne to better serve smaller utility customers with less than 50,000 meters in operation.DFW Capital Partners (“DFW”) acquired VertexOne in July 2019. VertexOne provides software and managed services to electric, water, and gas utilities throughout the United States and Canada. VertexOne’s Customer Information System (“CIS”) manages account information, consumption, and billing data, providing a single point solution for tracking all customer interactions. VertexOne’s offering also includes CRM, customer engagement, meter data management, and workforce management modules designed specifically for utilities.About Capital SouthwestCapital Southwest Corporation (Nasdaq: CSWC) is a Dallas, Texas-based, internally managed business development company with approximately $278 million in net assets as of June 30, 2020. Capital Southwest is a middle market lending firm focused on supporting the acquisition and growth of middle market businesses with $5 million to $25 million investments across the capital structure, including first lien, unitranche, second lien, subordinated debt and non-control equity co-investments. As a public company with a permanent capital base, Capital Southwest has the flexibility to be creative in its financing solutions and to invest to support the growth of its portfolio companies over long periods of time.About DFW Capital PartnersDFW Capital Partners is a private equity investment firm focused on lower middle-market companies. The firm concentrates on service companies, with an emphasis on healthcare and outsourced business and industrial support services. DFW has established a 20+ year track record of success in building leading companies. DFW is headquartered in Teaneck, New Jersey and maintains an office in Chevy Chase, Maryland. For more information visit www.dfwcapital.com.Forward-Looking StatementsThis press release contains historical information and forward-looking statements with respect to the business and investments of Capital Southwest. Forward-looking statements are statements that are not historical statements and can often be identified by words such as "will," "believe," "expect" and similar expressions and variations or negatives of these words. These statements are based on management's current expectations, assumptions and beliefs. They are not guarantees of future results and are subject to numerous risks, uncertainties and assumptions that could cause actual results to differ materially from those expressed in any forward-looking statement. These risks include 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; and uncertainties associated with the impact from the COVID-19 pandemic, including its impact on the global and U.S. capital markets and the global and U.S. economy, the length and duration of the COVID-19 outbreak in the United States as well as worldwide and the magnitude of the economic impact of that outbreak; the effect of the COVID-19 pandemic on our business prospects and the operational and financial performance of our portfolio companies, including our ability and their ability to achieve their respective objectives, and the effects of the disruptions caused by the COVID-19 pandemic on our ability to continue to effectively manage our business.Readers should not place undue reliance on any forward-looking statements and are encouraged to review Capital Southwest's Annual Report on Form 10-K for the year ended March 31, 2020 and subsequent filings, including the "Risk Factors" sections therein, with the Securities and Exchange Commission for a more complete discussion of the risks and other factors that could affect any forward-looking statements. Except as required by the federal securities laws, Capital Southwest does not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events, changing circumstances or any other reason after the date of this press release.Investor Relations Contact:Michael S. Sarner, Chief Financial Officer 214-884-3829
Wed, 05 Aug 2020
02:31:04 +0000
Capital Southwest (CSWC) Q1 2021 Earnings Call Transcript
Thank you for joining today's Capital Southwest first-quarter fiscal-year 2021 earnings call. Participating on today's call are Bowen Diehl, CEO; Michael Sarner, CFO; and Chris Rehberger, vice president.
Mon, 03 Aug 2020
22:25:10 +0000
Capital Southwest (CSWC) Matches Q1 Earnings Estimates
Capital Southwest (CSWC) delivered earnings and revenue surprises of 0.00% and 0.40%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?

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