CSWC - Earnings call transcript Q1 2020 | Capital Southwest Corporation

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Operator

Thank you for joining today's Capital Southwest First Fiscal Quarter 2020 Earnings Call. Participating on the call today are Bowen Diehl, CEO; Michael Sarner, CFO; and Chris Rehberger, Vice President Finance.

I'll now turn the call over to Chris Rehberger.

Chris Rehberger

Thank you. I would like to remind everyone that in the course of this call, we will be making certain forward-looking statements. on and currently beliefs. based management's information are assumptions expectations, statements current available conditions, and These that results They and statements. numerous assumptions are not subject cause are guarantees to risks, of uncertainties from differ materially to future results could such actual and

information obligation uncertainties, Capital events, to whether revise forward-looking available risks update Southwest's except company does as and SEC. any by other date or as the press statements, of circumstances future with or changing the The these new a not concerning publicly For after see required filings undertake information, law. this result any any reason of release,

I to Diehl. our will Officer, off Bowen call Executive hand now President and the Chief

Bowen Diehl

quarter we www.capitalsouthwest.com. fiscal prepared can XXXX Throughout and our refer presentation, our our call. will website year you at Thanks, for Chris, joining first thank earnings remarks, various everyone found on which earnings to slides to be in us our for

you are our with We to for XXXX. June to results first announce quarterly pleased quarter XX, ended be this morning the

continued quarter, portfolio, X.X shareholders we strategy out laid prudently the the underwriting credit to our During ago, late-cycle principles. conservative a well-performing for of utilizing building credit years advance we

and we building believe committed lien significant equity market where be our to exists. strategy debt about with of secured senior continue We consisting largely investment the across a portfolio, loan core middle lower first predominantly excited portfolio of equity co-investments upside

preservation aligns share managed value cost team closely long-term shareholders internally Executing dividends, generating with fellow shareholder-friendly per our growth efficiency. the of recurring our of in our through NAV operating investment under strategy and capital that structure interests and board management our and sustainable

generated the share representing on same laid XXXX a share XX, per year $X.XX $X.XX we as growth quarter per in XX% for over the investment XX% income, the During in same ago, $X.XX share paid June net over per the our $X.XX regular of generated pretax quarter ago. the share paying dividend out quarter, Slide of out while out X, growth June year the quarter, representing per a

share Additionally, accumulated balance, was to or $X.XX program, dividend our income funded gains date. capital investment undistributed per which we supplemental generated distributed strategy through by by and taxable from sizable our excess income UTI, our

XX, As the $XX.X in continuing UTI, per June XXXX, well we of or future. program the $X.XX into approximately visibility million supplemental had providing dividend share quarterly into

For XX, our yield per June dividend upon share total out generated based of price. $X.XX quarter, the paid XXXX in June dividends total a X.X% share the annualized

in declared $X.XX dividends. shareholder the quarterly We our September up are $X.XX quarter, $X.XX quarter our consecutive Board made dividend per dividend. regular for a will for increasing supplemental per share and as mark a the growth our This also regular further September XXth dividend pleased of of quarter, share announce has to dividends per of share

the for in quarter, million we from grew During portfolio total one as portfolio new company $XXX exiting June million a million commitments XX, on March our $XXX XXXX, and in $XX to net $XX originating proceeds. million basis of

annualized XX.X% for Fund, I-XX, its the value continued Our solid a at providing our yield fund in capital Senior Loan also quarter. fair performance, on the

to from the XX upsized million during and facility our program revolving million we equity our $XXX in $XX ATM by total commitments Additionally, gross in proceeds raised through quarter, million credit total $X.X banks. a of

we sheet continued building balance well-performing, a migrate our record track continue dividends the towards growing through Slide assets. to Turning X. as portfolio income-generating target thoughtfully leverage levels to of of shareholder We illustrate

X. Slide to Turning

strategy launch investment reminder, since remained XXXX. January a consistent As in our has its

assets, the We both as returns us to providing upper we in continue middle to markets. and on built flexibility focus have risk-adjusted seek a of market lower capability market robust blend attractive strategic middle

out Building consisting lower of we equity aiding losses. per equity any At market, time, a highly while portfolio co-investments growth, to middle of when is granular core opportunities returns a NAV provides to originate more directly important share risk-adjusted future investments capability and opportunistically driving our mitigation our performing market In co-investments. debt of the the the invest in liquid the and same in us market ability credit upper exist. attractive and presence middle in

economic us the believe our top consider competitive over that market is underwriting Overall, time strong and we that standards conservative we it origination deals, portfolio in end build maximizing will to of investment a both perform deal through array our of in performance that as generating critical ensures markets to the cycle. allowing employ funnel thoughtfully a a wide credit

I-XX, Our credit as XXXX. of of from X, million $XXX XX, XXXX June on as grew as Slide shown XX, March excluding portfolio, on-balance sheet to $XXX million

emphasize heavily lien investment to debt to our market middle the secured lower continue lending We first strategy. senior in

senior As market end middle in lower while XX% of we had of credit quarter, portfolio companies, our on-balance secured XX% the lien debt. sheet the invested in of the portfolio of credit first having

first We in senior quarter, Turning and consisting million portfolio X existing to lien this companies. XX. Slide portfolio debt $XX to add-ons of originated companies new secured X

portfolio Capital the average is sole deal first a lender. Southwest-led deal secured Both senior the loan lien in on was One was in middle The this in being all weighted to brought yield the other lower middle of a market with quarter the maturity which the companies company was which -- Capital capital upper one originations sole lender. a a middle a of club new and which deal the to lower were the in is in colender Southwest we being the Southwest in market, lower market and XX.X%. add-ons to one middle market, a

as strategy million since we XX.X%. exits XXXX, credit in portfolio XX.X% Slide we $XXX,XXX total of a now in of $XX on have our This generating realized and cumulative IRR continues our in during a of X capital. January XX gain total generating track XX, had strong the million proceeds launching record back company portfolio an also exited $XXX quarter and proceeds IRR shown invested As for on

our the portfolio, I-XX, middle Slide sheet excluding between upper out again we middle on-balance On lower and market break the market. XX,

XX% average of $X.X of measured held portfolio lower EBITDA the of market security yield As million, and cost $XX.X leverage the equity middle the lower debt of middle XX We the our of weighted through EBITDA ratio average weighted middle portfolio hold of XX% as ownership quarter, our basis. Within a and in XX.X% of had a was middle companies. to upper lower our approximately companies to we a portfolio as end on market market the a million, the average weighted with portfolio size to XX% the market end quarter, an total of X.Xx. of

consisted metrics EBITDA to investment to as as ratios skews and the Addiction the in average an upper average show of clearly of average portfolio size market security million, leverage of portfolio not total through upper shown our ratios upper the are market XX the million, should of balance that remainder our of be so X.X% and American sheet $X.X upper EBITDA Our meaningful portfolio. $XX.X with excluding market is companies X.Xx. We yield ratio thus a able weighted middle of the our not a hold weighted a middle middle note market middle of

metrics. cost American all Addiction with effectively management their announce the X capital not company's estate substance the rating large we to addition, our to the resolution. that to and company operating company, savings our portfolio be continues want on prior appropriately American a structure. market prospects public improving to initiatives shareholders. abuse the be a say is development lender to reasons developments to industry, at position internal with Addiction on to provide group With American the system. team respect American we to the solutions in optimistic and its real Since to struggle, is the communicating of recently What rated albeit market company careful remains continues will the on leading The company's business favorable Addiction owned work

upon investments being initially being assigned an are lowest and on a rating. the X all reminder, investment a of X with X X-point rating highest rating As scale, the origination

performance we as investment pleased the whole. are the Overall, a with of portfolio

AG had had X, in XX% a the X of rated ago. X of highest only X% rated nonaccrual with representing made investment of We a we credit representing loans as the the investment credit it end portfolio, portfolio, The a the we X.X credit XX X, of is and our the launching years of representing the portfolio. had of portfolio. XX XX% reduce to the X Kings of credit credit this loans did X in only the strategy quarter, the among and quarter, portfolio, we investments loans the rated since X first As our the rating making

placed on nonaccrual during AG December reminder, was a XXXX As Kings quarter. our

strong late for with our X% well portfolio portfolio which shareholders' portfolio debt, debt weighted remains heavily XX, should Further, portfolio well asset The have only debt industries, Slide secured positioned cycle. in is secured we a on we for illustrated capital. security subordinated the As investments, mix provide X% lien and diversified our believe senior first respectively. across senior second and economic established of in the towards the lien

quarter Media which the co-investments of business portfolio represents as represented equity and does banner Our last of other Recovery, the remaining legacy equity the SpotSee end XX% investment, the under X%. of

sell is expectation As process The calls, during be that mentioned continues a going our we have XXXX year. currently well, to Media undergoing will Recovery and company on prior process. is sale the calendar this

I-XX XX, industries portfolio Slide I-XX X% through among XX% the the average of end the on of The portfolio. an the was had and million first average $XX of of lien, hold of a diversity weighted EBITDA and I-XX leverage the quarter, X.Xx. security approximately average weighted a Shown size of with as portfolio

these American also aforementioned the We reasons. for excluded ratios from Addiction

by increase in X.Xx should leveraged was last in I-XX quarter. from We the portfolio the the that during lower quarter X.Xx leverage prepayment also loans the average of driven weighted to primarily note X

XX to since Overall, Capital, solid $XXX the on in our Since harvested in lien fund in weighted million of generating We invested syndicated approximately million been exits, IRR back at we we a I-XX, Street primarily its Main average loans. inception, proceeds and XX.X%. exits the with in have partner of senior inception first I-XX have have the secured $XXX performance XXXX. pleased

I over to the to specifics review will financial the now quarter. hand the Michael call our performance for of

Michael Sarner

Bowen. Thanks,

an all yield the increase our represents for slight income a our quarter. was to the net investment $XX.X on quarter seen investment The attributable weighted of portfolio quarter, on Slide average XX.X%. mostly million of million portfolio produced XX, growth. on the previous this of As portfolio from from a credit average $X.X quarter, previous weighted This XX.X% yield investments with increase

of our with total As a investment quarter, the fair there asset X.X% was of representing value $X.X the one end million, on of of nonaccrual portfolio.

an operating incurred in this from which interest quarter, $XXX,XXX million expenses Excluding the roughly we $X.X quarter. expense, of was prior increase

expected was associated the in we increase noted the quarter with of taxes incur payroll seasonal June as each expenses As Meeting. prior Shareholder year our on quarterly call, the and Annual

restricted the the quarter, Additionally, onetime of a charge upon incurred during employee we accelerated for stock his retirement. long-time for awards June a vesting

For we quarter. to income pretax the quarter, investment during share or of $X.X $X.XX prior million earned $X.XX per share compared the per net

per $X.XX paid dividends out increase quarter, of share paid regular regular $X.XX share share out over in per the the We dividend in the $X.XX per for an quarter. prior

on launch years our to since strategy a of and sustainable focus the dividends X the last of XXX% coverage growing We dividend by manner, cumulative in credit XX our regular demonstrated months over our regular ago. continue XXX%

our dividend quarter earlier, program program. per successful undistributed The as well share of paid as quarter out from continue a funded to excess supplemental our both This dividend UTI net debt investment of gains As supplemental in allows the from our of $X.XX we of to part this each our equity Bowen meaningfully in participate and earned program the exits also income be portfolio. our regular shareholders on dividends. will earned as investment mentioned realized

as the XX, of operating quarter, was of Slide we illustrate X.X%. On which leverage, end our the

the and migrate seasonal operating leverage continues leverage for onetime which of charge, was expenses aforementioned towards Excluding the to sub-X.X%. X.X%, our quarter our operating target

over leverage quarters. costs in our to with internally in actively operating grows improve operating corporate achieve largely portfolio next target With leverage growth as to to manage due lockstep and committed fully managing to infrastructure -- managed our structure. our the are our and expect senior should the investment professionals continue place, few operating We portfolio

by end dividend essentially at seen supplemental was mentioned quarter Slide NAV on of per the per As driven share paid for as a $XX.XX the Bowen slight decrease the as The to per earlier, XX. was our flat share, $X.XX quarter primarily share shareholders. of quarterly

Our the NII, total on pretax return X.X%. quarter for equity was

capital. Slide lay On multiple XX, our pockets we out of

available commitments approximately earliest December had XXXX. and As we quarter, I-XX million undrawn of the in the maturity cash our balance the with between end and $XXX of debt at sheet

million additional to we quarter, a facility, commitment from total our increasing the to added credit new $XXX commitments an million. lender $XX During

the liquidity Our balance X.XX:X. We would believe ended and a leverage and allow portfolio. good of that at grow structure sheet thoughtfully capital debt-to-equity us feel ratio quarter flexibility our about our investment

strategic approaches adequate cycle. evaluate for being priority while company to have the economic of liability investable structure derisk to our the throughout the said, a that With we continually that capital is ensuring company,

proceeds. average common ATM the company stock price under its the at ended million gross $XX.XX, the June During shares XXXX, common $X.X proceeds. of gross raising the average sold million share, of of quarter XXX,XXX company XX, date, has equity of raising per Cumulative to a XXX,XXX price ATM under weighted a sold $X.X the its at stock equity program of of program shares $XX.XX weighted

ATM program at just-in-time to a tight prudent while assets. our We continue thoughtfully equity on trade way to be over is the time can spreads it selling and a invested basis, believe issue so cost-effective income-generating equity in equity latest to

I will final now Bowen comments. some for the to call back hand

Bowen Diehl

shareholders Thanks, have has the and ago. consistent our and Southwest thank and strategy we vision grown years business Capital developed portfolio Michael, you, with us today. communicated for joining and everyone, the to X.X

Our for being Southwest at is here by and returns our shareholders' for deliver excellent done our creating to strong Everyone value team generating to continuing shareholders. performance an shareholders. dedicated Capital good totally sustainable our significant of long-term stewards capital has job

open remarks. are Operator, the ready This for lines questions. to we prepared our concludes

Operator

[Operator our FBR. the of Riley first from from comes And Tim B. line Instructions]. question Hayes

Michael Smyth

when implies the a This Mike to on quarter-over-quarter. is like question is mark, is Tim. looks largely added graph, XX, $XX-million-or-so first Slide at actually for it My unchanged you which MRI look which you

you interest wondering bidders? just just less any this broadly reflection was you're could if Or more sale a seeing process? I additional is commentary from or I if So the provide of guess on

Bowen Diehl

Yes.

We spot the the more out well. we would chart, other and has noted right, equity. it we've you're I to decided quarter equity been this the just put been a general say, sale specific going be So our previous equity quarters from co-investments. MRI -- process to generally, yielding on separate yielding as is

As I progressing in prepared in it's obviously my said there's the an asset, interest forward. remarks, and

before buyers of it think I looking the want that's to really given So we the process really business. end on the say, the But sale all at still the year. will exit

valuation our As process changed, we we hasn't we incorporate DCF, so costs. methodology -- incorporate

market. weighting the also We incorporate as And a process sale influence over from weighting the or the valuations in as forward, increases on the -- time. that progresses valuation valuation the

have we million we'll we this have $X.X Q -- this afternoon, see did write-up in a a So did quarter. the

get as trade. the in you So said. of where valuation might as as increases ultimately you the But it's not valuations on again, the flat, weighting it and time the market on as process progresses over and they more visibility exactly influence clarity sale

Michael Smyth

Do something up. versus once guys the is special about a process decision in you of complete? paying that the sales still have Or follow terms any a just thinking then is out you retaining on are And updates dividend?

Bowen Diehl

Yes.

going the that mean is and make sells. determination, I once make we'll So that determination it board to

bucket, likely So first the other a don't the anything replenish and we very the we obviously, -- be that will of We additional will the the gain answer no. much else in to to is, we'll will, option have UTI reminder restuff, market have tell that. excess foremost, most than likely

do combination will and distribute a in deemed retain the gain, a the it a we shareholders, third pay both. a have So option or do tax can a the of distribution options. of dividend We special it we or remainder can we XX% to either

Board, once will complete, and so decide said, we'll I announce is sale ultimately like And the the that it.

Michael Smyth

ago? Got How then the you. maybe And does compared look one year more pipeline question. a to

Bowen Diehl

Yes, we're while. very being XX is ago. our the as competitive couple but -- I that It's been as closings my have deals as But had the the is the that are number or of of shop and definitely we're delayed based a a that for pipeline in competitiveness pretty comment a good. see X pipeline diligence. still business. was competitive. of have of pipeline looks it few findings months We normal reviewing pretty is on type materially X that performance, that months wouldn't our needing it's than far as Hence, even diligence have in that's -- is been today reviewing or Market We're deals say deals very thing, competitive careful in year-over-year. up more to very strong. far more

like, it makes happy looks. business. make lumpy pretty the getting tends certainly -- we're it, it of with always overall, pipeline. a a to We're I've But So said lot

Michael Smyth

Got Have you upper any or you. seen in lower improvements the And versus in middle have market? middle market market seen the any you upper changes the versa? middle vice

Bowen Diehl

in same generally continue right all market. markets, middle No, would say would actually market middle iEnergizer the with market. I I lower upper same this lower upper the environment, a market best frothiness is exceptions, now, the same say, -- middle in middle deal. an opportunities definitely, in know in quarter see in the we It's in environment that few the upper to we the and the market, still largely middle But

that continues today. So

Operator

Mickey Schleien Our next from question comes from the Ladenburg. line of

Mickey Schleien

market. meaningfully middle outlook in the think I to road. slow with recoveries wanted I to defaults last if that different investors question -- market and were economy struggling follow versus and on the up the about X middle down are those lower There's upper analysts for markets,

potential you do markets? judge in when risk-adjusted markets, and And the you X differences how look those at do the X probabilities the how recovery in you default returns? So those gauge

Bowen Diehl

I you're Mickey. well. Thanks, hope Yes.

textbook therefore, and clearly, levels. leverage other structure established, and larger And environment. is a view would thing wrong, companies while goes more the I into in tell are they that's recessionary that, on you is So do better a not while that that that

a we lever so can ultimately what which about with control And volatility the we're dollar our of so potential destiny, better the first And and shareholders one business in ultimately is our our we that our capital. lien can if dialogue much control of business appropriately lender. versus and have risk care

leverage they're in the where are are market, middle lower structures tighter, lower clearly. and So smaller companies, levels

to correct definitely have aren't -- the not very has you -- higher and That's And less largely there to a of upper have middle In lower lot so not a tighter don't of that in the you sustainable the they we've believe got have it's loose company. structures, that's tighter middle but the businesses market full the But companies leverage. leverage, market. deals, lower covenant-light if that say even leverage, because pick to we indeed, that correctly, we structures, all lower case. cycle that's structures, and market have good, middle know follows larger the market, are to

full lot dollar I than you level. into options recessionary risk at the if in the lower more a got cycle if So I'm think environment, going -- into at one going level am if cycle a about one leverage a higher I'm cycle a if even leverage a risk dollar I've I'm

market, then lower going things absent also a as as well, in well. -- recession in general have portfolio equity our middle a upside when are some So we and the

capital what company make survives, the and going side okay, long. see of my times, some which we survives, ride bad or destiny, times, can I so structure the the recession, typically that, months are to I'm In investor, as So XX I an out money. good a other control

play your day, so for appropriate you've live another can to And shareholders. gotten returns for and full-cycle you basically

look but of kind at I markets. X So long-winded those answer, that's how

full but the their disadvantages, being do that's interesting. have find and why more both So lower there's market middle advantages cycle, we

Mickey Schleien

in borrowers and my the is weren't the I obviously, cycles So the base. just that When country, a portfolios of sense around up, the Great low But lot if of a and in can, a you very off weathering storm, in of Recession. follow the Bowen. we're BDC a talk longest about are of -- lot expansion the history

at don't necessarily how forth. and you revenues So XXXX, in and XXXX look margins behaved data have to so

perhaps far in how with to different a model was So wasn't underwrite you a that mind, that exist very the really back or do downside that in borrower it -- time? didn't business

Bowen Diehl

Yes.

good are questions. So those

even in Great situation, So things as of lot results. which beginning, one you're XXXX. a been tell the And the company an mean would ones XXXX XXXX. of the right. the were were, ones -- from we doing the current as smaller, But skewed lot in analog maybe customer, Recession I not that invest I that had even some large them said was look we do special of for were. we've XXXX, every a the the since one at here in we you, and customer

company. time that dynamic we respect to lot loan today, go at that of into -- we the pricing, to that work. there. were players look in simulation and that do And look back with we that a do the a customer can in a we But in we dive same when and So industry exactly behavior, then times, deep happening customers, and of basically and suppliers, at simulation what 'XX, it's and you we other if this you construct we back that do then to happening have company a a 'XX do pretty was and go industry and frame

and so we to And we're wrong. right that going But every get not. pretty to time? going we're than close, Of perfectly going more be are get course, think to right I we're

so doing that. And been we've

goes team or go amount through that downside fair that case. of to economic our And construct teams work deal simulation -- a our

reflects weighted leverage BDCs. middle what than you hence, the said. portfolio do that as lower so positioned And And I many in going done just by is the if storm. better believe by to loan. the from of loan beginning, our to be whole a we've that market our very average weather we're in that, loan of that loan, we that And believe, part we see And portfolio lower I

Mickey Schleien

jog last I'd quite something up just memory because my about follow like to on. you question Bowen, one

of broadly manufacturing I'm dependent ask revenues be when at fair to EBITDA looked a And and know not 'XX lower middle at But somebody to recession? I you've can company it's industry. going that the to 'XX comparison. Given us variety in and the look But going brush a is on industries. do? did that question you software very the widgets, market, in how behave did strokes, you I comparing Again, they tell know during broad how a much

Bowen Diehl

answer mean I it industry I the that on more company the is, paid. you your mean match depends putting continues get as that said, capital so your structure value obviously, that the in within fundamentally, match we're company interest enterprise industry. to stay on dollars in the volatility to trying the particular to and potential we're

far market that class, in will, honestly, if front you macro middle As don't stats, have asset lower of as me. a I

actually I don't always focused know -- to I So a the company-by-company basis. that. on answer We've just

Operator

Joseph from comes question of Kyle next the Jefferies. line from Our

Kyle Joseph

for yields overall seen to bit deals focus sense higher We've a a Is on of mix of that the of yields yields. than a yields off? being rather pressure modest than on wanted new coming portfolio. I upward on portfolio more

Bowen Diehl

and where small a then piece, rate our lower way. controlling portfolio along loan of out/last first position, first a invest pays we'll done out to That's We've couple a we'll rest -- the we'll the scrape probably in much the recently a mix. sell deals out that the

an and have might... to going influence So that's

Michael Sarner

dividend overall free of quarter larger dividend that I-XX, one to that through $XXX,XXX Southwest. having as portfolio dividend, a based the this produced And gain we then flowed the overall, Yes, from based MRI on yield a company additional up that so on flows. went Capital a the had a cash refinancing had [indiscernible] it

for portfolio. entire X yield those So the enhanced the overall

Bowen Diehl

of all spite those things. In

Kyle Joseph

it. heading everything, forward? Got give that and us the of would rate anticipate a outlook where given going you And sort of yields sense then can you

Bowen Diehl

based of the it's we Well, the assuming upon make date future. quarter. the our would going in think assuming say be What that LIBOR doesn't reset -- I the additional the cuts any occur last next to from doesn't on I -- think yields, the until flat Fed is based first cut,

XX So see a point hit. we're going to basis

quarter so $X.XX yield. about a that's And reduction in

Kyle Joseph

Okay. in from last Obviously, one and term target this dependent me. longer Got near then of ratios the one sort And us can your remind market term? conditions, on it. you leverage term, but intermediate is

Bowen Diehl

leverage target Yes, the BDC? ratios at

Kyle Joseph

Yes.

Bowen Diehl

Yes.

fairway, target define leverage as not and rush kind the the a culture of is which get originations fairway our high on we're ratio, X:X as but So speed completely is we to as going between to and a kind of dependent it X:X X.X:X get at do. here kind -- leverage, to good -- above we that find as we there. X:X, to going get term is step-by-step get there leverage intentionally longer to We're term to But really longer deals to so of slightly and kind intermediate should of up economic I there say.

Michael Sarner

amounts a be bit of have our said not capacity we on of it just we're towards And down. leverage up equity equity up the to the glide always and program large borrowing ATM issuing a to bring of path, calls move quick past little or sort it a in sort bring debt going certain I and steadily of think crashing side in we too, off probably and making raise those levels fashion to

Operator

from line Our next Chris JMP question comes the Securities. from of York

Christopher York

So whether this Michael, the elaborate is from given in increase And Q sustainable? your think you here drivers But my controlled a could out, that the portfolio in the little last the companies you to the is not in bit question the quarter? touched on dividend of on increase question. answer you

Michael Sarner

Yes.

the I So ones noted that two earlier.

the MRI one being other. I-XX controlled So the portfolio company and being then

whereas dividend think MRI the the I by So I-XX was noted $XXX,XXX. $XXX,XXX the increased I dollar amount, and

Christopher York

are so the then And it. Got so sequential those increase... either of sustainable,

Michael Sarner

are Yes, to be forward. sustainable going correct. those going Neither of

So this is a for run rate that a for this $XXX,XXX onetime -- quarter. is

not expenses of by that were that $XXX,XXX it additional run see rate as met sort well. this You'll was of quarter

Bowen Diehl

was Yes, Most of the The refinancing cash [indiscernible] I-XX. increase a increase [indiscernible]. MRI. was is -- a slight it I-XX MRI function of flows on

Michael Sarner

the tell question, run too, around get forward. probably Chris, of $X.XX going on of that, to rate was the will that I'll I really $X.XX you NII, your

Christopher York

Okay.

you out take the.. So

Michael Sarner

Yes, as hits onetime take the the and revenue expense well. out

Christopher York

be to clear, comp, on of the $XXX,XXX just nonrecurring onetime? was And Okay. or share-based $XXX,XXX the

Michael Sarner

Yes.

in So recurring. ongoing $XXX,XXX, the is of $XXX,XXX nature, the and was rest onetime and

Operator

you. And hand session Thank further for remarks. Chief back I'd Officer, this any does the the Bowen program conclude to program. Executive of question-and-answer like Diehl, to today's

Bowen Diehl

all operator, joining as today. us thanks it. keeping Have appreciate and you, a appreciate great We for look forward you the apprised support, week. really Thank on and report. everybody to business we we I your

Operator

the for does gentlemen, and your in ladies you, Thank conclude program. participation conference. today's This

Good disconnect. day. now may You

Capital Southwest (CSWC) 7 Aug 192020 Q1 Earnings call transcript