A n n u A l R e p o R t M A R c h 31, 2 011
Capital Southwest is a publicly-owned business development company
with net assets at March 31, 2011 of $539,233,139. Our investment
approach allows us to achieve capital appreciation through long-term
investments in exceptional businesses. Since our formation in 1961, we
have sought to invest in companies with strong management teams and
sound financial performance. As a public company we are never between
funds—we have no exit deadlines. We have a history of holding our
position for decades, enabling companies to achieve their full potential.
In addition to capital, we provide our portfolio companies services to
ensure success including best practices resources and guidance, active
board representation, corporate finance strategy and experienced advice
when needed.
50 Y e A R s o f A p p l Y i n g s t R o n g VA l u e c R e A t i o n p R i n c i p l e s
B oa r d of D i r e c t or s
B oa r d of D i r e c t or s
Henry D. Akin, Jr.
I. Frank Betts
Donald W. Burton
O. E. Clift
Charles B. Cooney
Wilton J. Daniel
Melvin L. Decker
Cam F. Dowell, Jr.
M. H. Earp
Murray Fasken
J. D. Francis
Joe Kirk Fulton
James B. Gardner
1963–1966
1961–1972
2007–present
1964–1966
1961–1966
1961–1972
1961–1988
1961
1966
1961–1964
1966–1975
1963–1965
1973–1975
1961–1963
Lewis Grinnan, Jr.
Graeme W. Henderson 1963–1964, 1976–present
Derrell Henry
Joseph F. Irvin
Weldon M. Jones
Lewis Kayton
R. Crosby Kemper
Alfred J. Knapp
Theo Lamb
Samuel B. Ligon
Gary L. Martin
H. Albert McEvoy
Charles P. McGaha
1961–1965
1961–1966
1961–1965
1961–1966
1970
1961–1966
1961–1964
2004–present
1989–present
1961–1964
1961–1972
1961
Founded on
Strong Principles
Company started by 21
banks and 8 individual
investors; licensed as a
Small Business Investment
Company. First and only
public offering in July
1961 gives Company near
$15 million in assets.
1971
Wider Exposure
Capital Southwest
becomes a NASDAQ
listed company, joining
the first electronic stock
exchange in the world.
1976 and 1977
Building Net
Asset Value
Two Company-sponsored
cash tender offers to all
shareholders at less than
the existing Net Asset
Value contracted total
shareholders’ equity and
notably changed owner-
ship dynamics. Resulting
1968
Structured for
Success
Company qualifies as
a Regulated Investment
Company avoiding double
taxation on distribution
of dividends.
1976
Employees as
Owners
Adoption of Employee Stock
Ownership Plan for Company
and certain affiliates; ESOP
currently holds 4.9% of
outstanding stock.
B oa r d of D i r e c t or s
B oa r d Ch a i r m e n
William B. Munson III 1961–1975
Michaux Nash
1961–1970
1981–2003
James M. Nolan
Clifford J. Osborn
1961–1988
Virgil P. Patterson
1961–1980
Harlan Ray
1961–1967
James P. Simmons
1961–1966
M. E. Singleton, Jr.
1961–1972
Carroll R. Spearman
1961–1962
William R. Thomas
1973–2008
1961–1962
Dr. D. M. Wiggins
1989–present
John H. Wilson
Don Wooten
1961–1966
Cam F. Dowell, Jr.
Harlan Ray
M. E. Singleton, Jr.
Clifford J. Osborn
William R. Thomas
Gary L. Martin
P r e s i de n t s
Harlan Ray
M. E. Singleton, Jr.
Clifford J. Osborn
William R. Thomas
Gary L. Martin
1961
1962–1966
1967–1972
1973–1982
1983–2008
2009–present
1961–1962
1963–1966, 1968–1971
1967, 1972–1980
1981–2007
2008–present
Net Asset Value increased
by 49.5% per share in 1976
and 8.1% in 1977. A two-
for-one stock dividend also
repositioned the total shares
outstanding.
1986
Proof of Concept
Company reaches Net Asset
Value of $50 million. Capital
appreciation achieved
through wise investing in
promising companies.
2006
Helping Businesses
Grow
Company reaches Net Asset
Value of $500 million. Our
long-term perspective has
allowed businesses to steadily
build value over time.
2011
Celebrating the
Past and Looking
to the Future
Company celebrates
50 years as a business
development company.
1992
Making the Right
Investments
Company reaches Net
Asset Value of $100 million,
a reflection of the steady
growth and development
of our portfolio companies.
2007
More Than
Money
Named one of America’s
100 Most Trustworthy
Companies from a field of
more than 8,000 publicly-
traded companies.
to o u R s h A R e h o l d e R s
As Capital Southwest passes the 50-year mark, it causes one to pause and reflect. We
recently reviewed archived reports, reference materials and good memories as we compared
the Capital Southwest of 1961 to the Capital Southwest of 2011. While today’s business
topics such as social networking, hackers, and massive government bailouts are different
than issues addressed in 1961, the fundamentals of a solid business which include strategic
leadership, strong ethics, and astute governance remain unchanged. As we have reviewed
our first 50 years, four key drivers of our success emerge. Our clear sense is that these same
fundamentals will be just as important in the second 50 years.
Shareholders’ Trust
Beginning with the founding 21 banks and 8 individual investors who capitalized the
Company on April 19, 1961, we have learned to appreciate and respect the trust our share-
holders have placed in the directors, officers, managers and staff of Capital Southwest
Corporation. Although the shareholder ranks have grown to over 3,300 individuals and
scores of organized funds, their long-term mutual objectives for superior capital growth
remain unchanged and have guided our 50-year mission.
Professional Staff
Capital Southwest’s first 50 years of growth has been accomplished by a total of 5 presi-
dents, 24 investment staff, 11 financial staff, and 10 administrative staff. We are thankful
for the inspired legacy forged by those before us and are pleased to be part of the ongoing
history that will continue into subsequent periods. Fifty years of success provides a sound
footing for the future.
Portfolio Companies
The catalyst for success in venture capital investing is the creativity and drive of inspired
owners and managers at each of our portfolio companies. We have sought to identify those
remarkable entrepreneurs and fortify their dreams with appropriate measures of capital
and counsel, mirroring the encouraging attitude of our own shareholders. Our portfolio
companies’ success is our success. Their pain is our pain.
Capitalistic Environment
As we survey the thrust of comments intended to sway public opinions toward different
political initiatives, we are reminded that lawmakers who understand the funda mentals
of property rights and reward hard-earned growth are our champions. On the contrary,
lawmakers who knowingly harvest more than they plant or fail to protect those who create
growth are counterproductive over the long haul. We are privileged to operate in a state
and nation that honors competent risk taking and respects both the positive and negative
outcomes of those endeavors.
Gary L. Martin
Chairman of the Board and President
June 10, 2011
c A p i t A l s o u t h w e s t • 2 011 A n n u A l R e p o R t
1
f i n A n c i A l h i g h l i g h t s
Net Asset Value at March 31, 2011 was $539,233,139 equivalent to $143.68 per share.
Comparative annual data is summarized below:
Net assets
Shares outstanding
Net assets per share
March 31, 2011 March 31, 2010
$539,233,139
3,753,038
$143.68
$486,925,586
3,741,638
$130.14
Assuming reinvestment of all dividends and tax credits on retained long-term capital gains,
the March 31, 2011 net asset value was 18.5% greater than the March 31, 2010 net asset
value of $130.14 per share.
During the year ended March 31, 2011, investments classified as Controlled Affiliates
increased $51,033,905 (excluding Lifemark Group) in net unrealized appreciation, represent-
ing a 19.7% increase in this investment category. The Major Publicly Traded Investments
category experienced a net increase in appreciation of $26,629,559, representing a 19.5%
increase over prior year. These two categories combined represent 97.8% of the total increase
in unrealized appreciation of $79,478,132 (excluding Lifemark Group).
March 31, 2011
March 31, 2010
Market
Value
% of Total
Investments
Market
Value
% of Total
Investments
Controlled Affiliates (mainly)
The RectorSeal Corporation
Lifemark Group
The Whitmore Manufacturing Co.
Media Recovery, Inc.
Major Publicly Traded Investments
Encore Wire Corporation
Alamo Group, Inc.
Heelys, Inc.
Palm Harbor Homes, Inc.
Venture Capital Assets
Marketable Securities
Total
$144,700,000
—
55,600,000
18,100,000
81,735,000
62,266,600
19,193,659
—
80,923,650
26,753,746
$489,272,655
29.5
0.0
11.4
3.7
16.7
12.7
3.9
0.0
16.5
5.5
100.0
$120,200,000
71,000,000
47,500,000
13,400,000
67,431,375
42,454,500
19,845,870
6,833,955
68,262,428
21,014,929
$477,943,057
25.1
14.9
9.9
2.8
14.1
8.9
4.2
1.4
14.3
4.4
100.0
In addition to a complete list of our investments, this report includes a description of our
twelve largest holdings (see pages 6 through 8). These twelve investments had a combined
cost of $39,531,622 and a combined value of $449,334,689, representing 91.8% of the
value of our investment portfolio at March 31, 2011.
Regardless of its classification or current form, every security we currently hold originated as
a venture capital investment in a private company. Investments in growing, private compa-
nies have always been, and continue to be, the essential source of our present holdings.
Measure of Performance and Value
The following table reflects our Company’s performance compared to the S&P 500 Index
for the past 5 and 10 years:
Period Ended March 31, 2011
Capital Southwest*
S&P 500 Stock Index**
5 years
10 years
3.1%
8.4%
2.3%
1.4%
* Compounded annual return for Capital Southwest based on net asset value per share assuming reinvestment of all
dividends and tax credits.
** Compounded annual return for the S&P 500 Stock Index assuming reinvestment of all dividends.
2
c e l e b R A t i n g o u R 5 0 t h A n n i V e R s A R Y
200
200
180
180
160
160
140
140
120
120
100
100
80
80
60
60
40
40
20
20
0
0
200
180
160
140
120
100
80
60
40
20
0
p e R f o R M A n c e h i s t o R Y p e R s h A R e
M a r c h 31, 2 0 01 – M a r c h 31, 2 011
$200
180
160
140
120
100
80
60
40
20
0
Net Asset Value
Market Price
2001
79.54
65.00
2002
88.77
68.75
2003
71.09
48.15
2004
103.75
2005
108.36
2006
144.56
2007
186.75
2008
150.09
2009
110.98
2010
130.14
2011
143.68
75.74
79.10
95.50
153.67
123.72
76.39
90.88
91.53
A total of $17,136,824 was invested during the twelve months ended March 31, 2011
including $9,455,958 in new holdings and $7,680,866 in existing holdings. New venture
investments include:
» CapStar Holdings Corporation—$3,703,619. CapStar was incor porated in May 2010
to acquire, hold and manage certain real estate and other assets effectively retained
by Capital Southwest Corporation upon the sale of our stock in Lifemark Group to
NorthStar Memorial Group, LLC in June 2010. Our investment is in the form of
common stock representing ownership of 100% of CapStar.
» Phi Health, Inc.—$5,752,339. Phi was formed in January 2011 as a new corporate
entity to hold and manage the assets of CMI Holding Company, Inc., which was
reorganized through a friendly foreclosure. In addition to the $2,839,088 of cash
invested, Capital Southwest converted $2,913,251 of notes formerly held by CMI
Holding Company, Inc. into convertible preferred stock in Phi Health, Inc. The
investment is in the form of convertible preferred stock representing a fully diluted
potential ownership of 67% of Phi.
Additions to existing investments include contracted capital calls from Ballast Point
Ventures II, LP in the amount of $525,000; BankCap Partners Fund I, LP for $248,433;
Cinatra Clean Technologies, Inc. for $3,408,415; CMI Holding Company, Inc. for
$2,263,251; Discovery Alliance, LLC for $150,000; iMemories, Inc. for $1,000,000 and
Via Holdings, Inc. for $85,767.
Future commitments in existing holdings, subject to specific conditions are $1,800,000
for Ballast Point Ventures II, LP; $237,730 for BankCap Partners Fund I, LP; $1,270,000
for CapitalSouth Partners Fund III, LP; $3,500,000 for CapStar Holdings Corporation;
$95,239 for Cinatra Clean Technologies, Inc.; $486,900 for Sterling Group Partners, LP;
and $3,200,000 for Trax Holdings, Inc.
Lifemark Group
During the year ended March 31, 2011, we sold all of our shares of common stock of
Lifemark Group to NorthStar Memorial Group, LLC generating cash proceeds of $74,822,145
and $3,703,619 of real estate and assets, which were directly transferred to the aforemen-
tioned CapStar Holdings Corporation. With a cost basis of $4,510,400, Lifemark Group
had been part of our portfolio since 1966.
c A p i t A l s o u t h w e s t • 2 011 A n n u A l R e p o R t
3
2001
2001
2002
2002
2003
2003
2004
2004
2005
2005
2006
2006
2007
2007
2008
2008
2009
2009
2010
2010
2011
2011
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
Capital Southwest staff—committed to growing your investment.
d i f f e R e n t i A t e d A p p R o A c h
We have a history of holding non-control positions for decades. Most
of our initial investments are minority positions; however, we have
attained majority ownership of several businesses as co-investors (and
some managers) desired liquidity.
Capital Southwest
Typical PE Firm
Holding Period (Avg.)
20 Years
5–7 Years
Ownership
20%–45%
51%–100%
Follow-On Financing? Yes
Depends on Fund Stage
As a perpetual concern, we are never between funds and are able to
provide subsequent growth capital to companies.
As a public company, we are open-minded about the timing of exiting
our investments. When significant growth is on the horizon, selling
may not be wise.
M o R e th A n M o n e Y
In addition to capital, we provide our portfolio companies many services
to ensure success:
» Active board representation
» Transitional leadership and executive recruiting
» Attention and experienced advice
» Corporate finance strategy and modeling
» Acquisition sourcing, advisory, due diligence and negotiation
4
c e l e b R A t i n g o u R 5 0 t h A n n i V e R s A R Y
th e s u c c e s s c u R V e ™
The S-curve…Every Company’s Reality
» Over time companies and products
transition from start up, to growth, to
maturity and decline, and eventually
to obsolescence.
» Why do some companies fail to achieve
their potential, resulting in significant
lost value?
» Reasons include: An incomplete man-
agement team; inadequate capitaliza-
tion; innovation from competitors.
» Capital Southwest often makes its initial
investment to empower management
to pursue a company’s initial growth
opportunity.
Reinvent the Business
» “Organizations should assume that
their present strategies will need to be
replaced within 2 or 3 years and that
product life cycles are shorter than they
were” (Age of Paradox, John Handy).
» S-curve management requires that
an organization embrace change and
innovation.
» Great, enduring companies have multiple
S-curves.
» We refer to the process of partnering
with management to generate a series
of innovation opportunities as “The
Success Curve”™.
CSC—Catalyst for The Success Curve™
» Most private investors that fund a com-
pany at point “A” will be planning to
exit at “B” or “C,” not to reinvest in
the next S-curve.
» This exit mindset often causes the
H
T
W
O
R
G
H
T
W
O
R
G
H
T
W
O
R
G
Start Up
Growth
Maturity
Decline
Lost Value
CSC
Investment
T I M E
Start Up
Growth
Maturity
Decline
Innovation
Opportunity
T I M E
Start Up
Growth
Maturity
Decline
Typical Fund
Investment
Time Frame
C
B
interests of management and investors
to diverge.
A
» We provide patient capital that is not
tied to the typical pre-determined 5- to
7-year exit.
» We partner with management to help a
company achieve its potential.
» Our interest is aligned with management
teams that desire to build exceptional
businesses over time.
CSC Investments
T I M E
c A p i t A l s o u t h w e s t • 2 011 A n n u A l R e p o R t
5
tw e l V e l A R g e s t i n V e s t M e n t s March 31, 2011
$144,700,000
The RectorSeal Corporation (Houston, TX)
manufactures specialty chemical products and
control devices for plumbing, HVAC, electrical
and industrial applications. Its subsidiaries include:
Blue Magic, Inc., a producer of branded automo-
tive and household chemical products; Jet-Lube,
Inc., manufacturer of specialty lubricants and other
products used in industrial and oil field applica-
tions; and Smoke Guard, Inc., producer of sys-
tems for containing smoke from building fires.
RectorSeal also owns a 20% equity interest in
The Whitmore Manufacturing Company.
During the year ended March 31, 2011, RectorSeal
earned $6,405,000 on revenues of $113,300,000,
compared with earnings of $9,571,000 on revenues
of $102,075,000 in the previous year. RectorSeal’s
earnings do not reflect its 20% equity in The
Whitmore Manufacturing Company.
At March 31, 2011, Capital Southwest owned
100% of RectorSeal’s common stock having a
cost of $52,600 and a value of $144,700,000.
Value includes RectorSeal’s 20% equity interest
in The Whitmore Manufacturing Company.
$81,735,000
Encore Wire Corporation (McKinney, TX) man-
ufactures a broad line of copper electrical building
wire and cable including non-metallic sheathed,
underground feeder and THHN wire and cable,
as well as armored cable for residential, commer-
cial and industrial construction. Encore’s products
are sold through distributors and building materi-
als retailers.
For the year ended December 31, 2010, Encore
reported net income of $15,290,000 ($0.66 per
share) on net sales of $910,222,000, compared
with net income of $3,636,000 ($0.16 per share)
on net sales of $649,613,000 in the previous year.
The March 31, 2011 closing Nasdaq bid price of
Encore’s common stock was $24.30 per share.
At March 31, 2011, the $5,800,000 investment
in 4,086,750 restricted shares of Encore’s common
stock by Capital Southwest and its subsidiary was
valued at $81,735,000 ($20.00 per share), repre-
senting a fully-diluted equity interest of 16.9%.
$62,266,600
Alamo Group Inc. (Seguin, TX) is a leading
designer, manufacturer and distributor of heavy-
duty, tractor and truck mounted mowing and
other vegetation maintenance equipment, mobile
excavators, street-sweeping and snow removal
equipment and replacement parts. Founded in
1969, Alamo Group operates 18 manufacturing
facilities and serves governmental, industrial and
agricultural markets in North America, Europe,
and Australia.
For the year ended December 31, 2010, Alamo
reported net income of $21,117,000 ($1.78 per
share) on net sales of $524,540,000, compared
with net income of $17,091,000 ($1.65 per share)
on net sales of $446,487,000 in the previous year.
The March 31, 2011 closing NYSE market price
of Alamo’s common stock was $27.45 per share.
At March 31, 2011, the $2,190,937 investment
in Alamo by Capital Southwest and its subsidiary
was valued at $62,266,600 ($22.00 per share),
consisting of 2,830,300 restricted shares of com-
mon stock, representing a fully-diluted equity
interest of 22.0%.
$55,600,000
The Whitmore Manufacturing Company
(Rockwall, TX) manufactures specialty lubri-
cants for heavy equipment used in surface min-
ing, railroads and other industries, and produces
water-based coatings for the automotive and pri-
mary metals industries. Whitmore’s Air Sentry
division manufactures fluid contamination con-
trol devices. The company’s assets also include
several commercial real estate tracts.
During the year ended March 31, 2011, Whitmore
reported net income of $4,861,000 on net sales
of $36,760,000, compared with net income of
$3,661,000 on net sales of $26,956,000 in the
previous year. The company is owned 80% by
Capital Southwest and 20% by Capital Southwest’s
subsidiary, The RectorSeal Corporation.
At March 31, 2011, Capital Southwest’s 80%
equity interest in Whitmore was valued at
$55,600,000 and had a cost of $1,600,000.
6
c e l e b R A t i n g o u R 5 0 t h A n n i V e R s A R Y
$19,193,659
Heelys, Inc. (Carrollton, TX) designs, markets
and distributes innovative sports-inspired foot-
wear, equipment and accessories. Known for its
Heelys-wheeled footwear, the company distrib-
utes its products through domestic and interna-
tional sporting goods chains, department and
lifestyle stores and specialty footwear retailers.
During the year ended December 31, 2010, Heelys
reported a net loss of $3,991,000 ($0.14 per share)
on net sales of $30,436,000, compared with a net
loss of $5,125,000 ($0.19 per share) on net sales of
$43,777,000 in the previous year. The March 31,
2011 closing Nasdaq bid price of Heelys common
stock was $2.29 per share.
At March 31, 2011, the $102,490 investment in
Heelys by Capital Southwest’s subsidiary was
valued at $19,193,659 ($2.06 per share), consist-
ing of 9,317,310 restricted shares of common
stock, representing a fully-diluted equity interest
of 31.6%.
$18,100,000
Media Recovery, Inc. (Dallas, TX) is the holding
company of DataSpan, ShockWatch and Damage
Prevention Company. DataSpan is in the data
protection business providing datacenter supplies
and services to corporate customers through a
direct sales force. ShockWatch manufactures and
distributes devices used to detect mishandled
shipments, devices for monitoring material han-
dling, and equipment impact detection monitors.
Damage Prevention Company produces dunnage
products used to prevent damage in trucking, rail
and export container shipments.
During the year ended September 30, 2010,
Media Recovery reported net income of $1,864,000
on net sales of $107,915,000, compared with a
net loss of $2,626,000 on net sales of $110,311,000
in the previous year.
At March 31, 2011, the $5,415,000 investment
in Media Recovery by Capital Southwest and its
subsidiary was valued at $18,100,000, consisting
of 800,000 shares of Series A Convertible Pre-
ferred Stock and 4,000,002 shares of common
stock, representing a fully-diluted equity interest
of 97.9%.
$14,042,276
Hologic, Inc. (Bedford, MA) is a leading devel-
oper, manufacturer and supplier of premium
diagnostic products, medical imaging systems
and surgical products dedicated to serving the
healthcare needs of women. Hologic’s core busi-
ness units are focused on breast health, diagnos-
tics, GYN surgical, and skeletal health.
For the year ended September 25, 2010, Hologic
reported net loss of $62,813,000 ($0.24 per share)
on revenue of $1,679,552,000 compared with
net loss of $2,216,642,000 ($8.64 per share) on
revenue of $1,637,134,000 in the previous year.
The March 31, 201 closing Nasdaq bid price of
Hologic’s common stock was $22.19 per share.
At March 31, 2011, Capital Southwest and its
subsidiary owned 632,820 unrestricted shares of
common stock, having a cost of $220,000 and a
market value of $14,042,276 ($22.19 per share).
$13,499,940
All Components, Inc. (Pflugerville, TX)
distributes and produces memory and other elec-
tronic components for personal computer manu-
facturers, retailers, value-added resellers and
other corporate customers. Through its sales and
distribution center near Austin, Texas and its dis-
tribution center in Miami, Florida, the company
serves over 2,000 customers throughout the
United States and Latin America.
During the year ended August 31, 2010, All
Components reported net income of $4,314,000
on net sales of $279,279,000, compared with net
income of $1,863,000 on net sales of $186,188,000
in the previous year.
At March 31, 2011, the $2,150,000 investment
in All Components by Capital Southwest and its
subsidiary was valued at $13,499,940 consisting
of a $2,000,000 8.25% Subordinated Note,
150,000 shares of Series A Convertible Preferred
Stock and Warrants valued at $11,499,940, repre-
senting an 80.4% fully-diluted equity interest.
c A p i t A l s o u t h w e s t • 2 011 A n n u A l R e p o R t
7
$12,711,470
Texas Capital Bancshares, Inc. (Dallas, TX)
formed in 1998, has total assets of approximately
$6.4 billion. With branch banks in Austin, Dallas,
Fort Worth, Houston, Plano and San Antonio,
Texas Capital Bancshares conducts its business
through its subsidiary, Texas Capital Bank, N.A.,
which targets middle market commercial and
wealthy private client customers in Texas.
For the year ended December 31, 2010, Texas
Capital reported net income of $37,187,000
($1.02 per share), compared with net income
of $18,769,000 ($0.55 per share) in the previous
year. The March 31, 2011 closing Nasdaq bid
price of Texas Capital’s common stock was
$25.96 per share.
At March 31, 2011, Capital Southwest owned
489,656 unrestricted shares of common stock,
having a cost of $3,550,006 and a market value
of $12,711,470 ($25.96 per share).
$11,603,000
Extreme International, Inc. (Sugar Land, TX)
owns Bill Young Productions, Texas Video and
Post, and Extreme Communications and Vanilla
Gorilla which produce radio and television com-
mercials and corporate communications videos.
During the year ended September 30, 2010,
Extreme reported net income of $1,615,000 on
net sales of $12,984,000, compared with net
income of $1,205,000 on net sales of $11,272,000
in the previous year.
At March 31, 2011, Capital Southwest and its
subsidiary owned 39,359 shares of Series C
Con vertible Preferred Stock, 3,750 shares of 8%
Series A Convert ible Preferred Stock and 13,035
shares of common stock, having a cost of
$3,325,875 and a market value of $11,603,000,
representing a fully-diluted equity interest of 53.6%.
$10,124,714
Cinatra Clean Technologies, Inc. (Houston, TX)
is a start-up business formed to quickly and safely
clean above ground oil storage tanks with a pat-
ented, automated system never before utilized in
the United States. The non-manned tank clean-
ing and hydrocarbon recovery system exceeds
the most demanding health, safety and environ-
mental standards.
$5,758,030
Trax Holdings, Inc. (Scottsdale, AZ) provides a
comprehensive set of solutions to improve trans-
portation validation, accounting, payment and
information management processes. The Trax
competitive advantage is its capability of auto-
mating business processes that have traditionally
been impossible to automate due to their com-
plexity or uniqueness.
During the year ended June 30, 2010, Cinatra
reported net sales of $4,077,000 and a net loss
of $1,994,000, compared with no sales and a net
loss of $570,000 in the previous year.
During the year ended December 31, 2010, Trax
reported a net loss of $1,952,000 on net sales of
$14,394,000 compared to the previous year net
loss of $2,955,000 on net sales of $11,079,000.
At March 31, 2011, Capital Southwest owned
3,033,410 shares of Convertible Preferred Stock
valued at $3,033,410; a 10% Note valued at
$6,200,700; and a 12% Note valued at $890,604,
for a total cost of $10,124,714 and a value of
$10,124,714, representing a fully-diluted interest
of 68.8%.
At March 31, 2011, Capital Southwest owned
1,061,279 Convertible Preferred Stock having
a cost of $5,000,000 and a market value of
$5,758,030, representing a fully-diluted equity
interest of 30.7%.
8
c e l e b R A t i n g o u R 5 0 t h A n n i V e R s A R Y
c o R p o R A t e i n f o R M A t i o n
b o A R d o f d i R e c t o R s
Gary L. Martin
Chairman of the Board
and President of the Corporation
Donald W. Burton
General Partner,
The Burton Partnership
Graeme W. Henderson
Investments
Samuel B. Ligon
Investments
John H. Wilson
President,
U.S. Equity Corporation
Dallas, Texas
Tampa, Florida
Pasadena, California
Dallas, Texas
Dallas, Texas
o f f i c e R s
Gary L. Martin
Tracy L. Morris
Chairman of the Board
and President of the Corporation
Chief Financial Officer,
Chief Compliance Officer,
Secretary and Treasurer
William M. Ashbaugh
Senior Vice President
Marquez D. Bela
Glenn M. Neblett
Jeffrey G. Peterson
Ray D. Schwertner
William R. Thomas III
Vice President
Vice President
Vice President
Vice President
Vice President
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tR A n s f e R A g e n t
American Stock Transfer
& Trust Company, LLC
New York, New York
T (800) 937-5449
www.amstock.com
e x c h A n g e
Listed on NASDAQ for 40 years
ti c k e R s Y M b o l
CSWC
i n d e p e n d e n t p u b l i c
A c c o u n t A n t s
Grant Thornton LLP
Dallas, Texas
l e g A l c o u n s e l
Locke Lord Bissell & Liddell LLP
Dallas, Texas
A n n u A l M e e t i n g
July 18, 2011, 10:00 a.m.
North Dallas Bank Building
12900 Preston Road, Suite 200
Dallas, Texas 75230
d i V i d e n d R e i n V e s t M e n t
As a service to our shareholders, the
Company offers an Automatic Dividend
Reinvestment and Optional Cash
Contribution Plan for shareholders of
record who own a minimum of 25
shares. The Company pays all adminis-
tration costs of the Plan except broker-
age transaction fees. Contact the
Company for more information.
c o n t A c t i n f o R M A t i o n
Capital Southwest Corporation
12900 Preston Road, Suite 700
Dallas, Texas 75230
T (972) 233-8242
F (972) 233-7362
www.capitalsouthwest.com
12900 Preston Road, Suite 700
Dallas, Texas 75230
972-233-8242
www.capitalsouthwest.com