Business Context and Reporting Period
This Form 8-K filing by Capital Southwest Corporation (NASDAQ: CSWC) reports a corporate event dated February 18, 2013. The company, incorporated in Texas, announced a special cash dividend declaration by its Board of Directors.
Key Financial Metrics
- Dividend Declaration: $2.75 per share of common stock.
- Total Dividend Payout: Approximately $10,451,000.
- Source of Funds: Capital gains proceeds from the sale of Heelys, Inc. shares.
- Proceeds from Asset Sale: $20,963,948 (from sale on January 24, 2013).
- Payment Date: March 28, 2013.
- Record Date: March 15, 2013.
Material Changes
The filing details a material change in shareholder distributions resulting from a recent liquidity event. The company sold its stake in Heelys, Inc., generating over $20.9 million in cash. Approximately 50% of these proceeds ($10.45 million) are being distributed immediately to shareholders as a special dividend.
Outlook and Management Commentary
Management characterized the dividend as a "partial distribution" of the capital gain proceeds. The filing does not provide forward-looking guidance, risk factors, or commentary on future operational performance beyond the specific event of the dividend payment and the prior asset sale.
Investor Verification Checklist
- Verify the number of outstanding shares to confirm the total payout calculation of $10,451,000.
- Confirm the record date (March 15, 2013) to ensure eligibility for the dividend.
- Review the attached press release (Exhibit 99.1) for details on the Heelys, Inc. transaction.
- Assess the remaining cash balance from the Heelys sale after the dividend distribution.