DALLAS, Oct. 23, 2007 (PRIME NEWSWIRE) -- Capital Southwest Corporation (Nasdaq:CSWC) today reported net assets at September 30, 2007 of $437,546,529, equivalent to $112.50 per share after deducting an allowance of $43.66 per share for deferred taxes on net unrealized appreciation of investments. Comparative annual data is summarized below:
September 30, 2006 September 30, 2007
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Net assets $399,788,343 $437,546,529
Shares outstanding 3,875,751 3,889,151
Net assets per share $103.15 $112.50
Assuming reinvestment of all dividends and tax credits on retained long-term capital gains, the September 30, 2007 net asset value (after deferred taxes) was 12.0% above the September 30, 2006 net asset value of $103.15 per share, but 14.9% below the March 31, 2007 net asset value of $132.36 per share. Before deferred taxes on net unrealized appreciation of investments, the September 30, 2007 net asset value of $156.16 was 8.6% above the $143.85 reported a year ago, but 16.5% below the $186.94 on March 31, 2007.
The entire decline in net asset value during the six months ended September 30, 2007 was attributable to a major decrease in the value placed on our investment in 9,317,310 shares of Heelys, Inc. (Nasdaq:HLYS), which dropped from $21.00 to $6.00 per share -- a total of $139,760,000, equivalent to $23.35 per Capital Southwest share after deduction of deferred taxes.
Capital Southwest Corporation, founded in 1961, is a venture capital business development investment company headquartered in Dallas, Texas.