ARCC FY 2014 Earnings Report — Ares Capital Corporation Revenue & Financial Results | Market Cap Arena

Ares Capital CorporationARCC

FY 2014 Earnings

Reported February 26, 2015

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2014	Prior Q	FY 2013	QoQ Change	YoY Change
Revenue	$866M	—	$713M	—	21.5%
Op. Income	$609M	—	$503M	—	21.2%
Gross Margin	78.1%	—	75.9%	—	2.1pp
Net Margin	68.2%	—	68.5%	—	-0.3pp
EPS (Diluted)	$1.94	—	$1.83	—	6.0%
Free Cash Flow	$0	—	-$1.3B	—	100.0%

Revenue Flow

Item	Amount
REVENUE	$866M
Cost of Revenue	$190M
GROSS PROFIT	$676M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$41M
SG&A Expenses	$41M
Other Expenses	$26M
Operating Expenses	$67M
Cost & Expenses	$257M
OPERATING INCOME	$609M
Interest Income	$741M
Interest Expense	$190M
Other Income/Expenses	$0
INCOME BEFORE TAX	$609M
Income Tax Expense	$18M
Net Income from Continuing Ops	$591M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$591M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$591M
D&A	$1M
EBIT	$609M
EBITDA	$610M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$866M
Cost of Revenue	$190M
GROSS PROFIT	$676M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$41M
SG&A Expenses	$41M
Other Expenses	$26M
Operating Expenses	$67M
Cost & Expenses	$257M
OPERATING INCOME	$609M
Interest Income	$741M
Interest Expense	$190M
Other Income/Expenses	$0
INCOME BEFORE TAX	$609M
Income Tax Expense	$18M
Net Income from Continuing Ops	$591M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$591M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$591M
D&A	$1M
EBIT	$609M
EBITDA	$610M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$591M
Depreciation & Amortization	$805.0K
Stock-Based Compensation	$0
Deferred Income Tax	$0
Other Non-Cash Items	-$1.2B
Change in Working Capital	-$590.0K
OPERATING CASH FLOW	-$659M
Capital Expenditure	$0
Acquisitions (Net)	$0
Purchases of Investments	-$4.5T
Sales/Maturities of Investments	$3.4T
Other Investing Activities	$0
NET CASH FROM INVESTING	-$1.1T
Net Debt Issuance	$923M
Common Stock Repurchased	$0
Common Dividends Paid	-$464M
Other Financing Activities	-$13M
NET CASH FROM FINANCING	$704M
FREE CASH FLOW	$0
Net Change in Cash	$45M

Balance Sheet

Item	Amount
Cash & Equivalents	$195M
Short-Term Investments	$0
Net Receivables	$162M
Inventory	$0
Other Current Assets	$2M
TOTAL CURRENT ASSETS	$358M
PP&E (Net)	$0
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$9.0B
Tax Assets	$0
Other Non-Current Assets	$0
TOTAL NON-CURRENT ASSETS	$9.0B
TOTAL ASSETS	$9.5B
Account Payables	$129M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	-$290M
TOTAL CURRENT LIABILITIES	$290M
Long-Term Debt	$3.9B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$0
TOTAL NON-CURRENT LIABILITIES	$3.9B
TOTAL LIABILITIES	$4.2B
Common Stock	$314.0K
Additional Paid-In Capital	$5.3B
Retained Earnings	-$200M
Treasury Stock	$0
Accum. Other Comp. Income	$155M
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$5.3B
Minority Interest	$0
TOTAL EQUITY	$5.3B
TOTAL LIABILITIES & EQUITY	$9.5B
Total Debt	$3.9B
Net Debt	$3.7B