ARCC FY 2017 Earnings Report — Ares Capital Corporation Revenue & Financial Results | Market Cap Arena

Ares Capital CorporationARCC

FY 2017 Earnings

Reported February 13, 2018

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2017	Prior Q	FY 2016	QoQ Change	YoY Change
Revenue	$974M	—	$737M	—	32.2%
Op. Income	$686M	—	$495M	—	38.6%
Gross Margin	76.9%	—	77.3%	—	-0.4pp
Net Margin	68.5%	—	64.3%	—	4.2pp
EPS (Diluted)	$1.57	—	$1.51	—	4.0%
Free Cash Flow	-$1.9B	—	$0	—	—

Revenue Flow

Item	Amount
REVENUE	$974M
Cost of Revenue	$225M
GROSS PROFIT	$749M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$89M
SG&A Expenses	$89M
Other Expenses	-$26M
Operating Expenses	$63M
Cost & Expenses	$288M
OPERATING INCOME	$686M
Interest Income	$951M
Interest Expense	$225M
Other Income/Expenses	$0
INCOME BEFORE TAX	$686M
Income Tax Expense	$19M
Net Income from Continuing Ops	$667M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$667M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$667M
D&A	$1M
EBIT	$686M
EBITDA	$687M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$974M
Cost of Revenue	$225M
GROSS PROFIT	$749M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$89M
SG&A Expenses	$89M
Other Expenses	-$26M
Operating Expenses	$63M
Cost & Expenses	$288M
OPERATING INCOME	$686M
Interest Income	$951M
Interest Expense	$225M
Other Income/Expenses	$0
INCOME BEFORE TAX	$686M
Income Tax Expense	$19M
Net Income from Continuing Ops	$667M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$667M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$667M
D&A	$1M
EBIT	$686M
EBITDA	$687M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$667M
Depreciation & Amortization	$1M
Stock-Based Compensation	$0
Deferred Income Tax	$0
Other Non-Cash Items	-$2.5B
Change in Working Capital	$3M
OPERATING CASH FLOW	-$1.9B
Capital Expenditure	$0
Acquisitions (Net)	$0
Purchases of Investments	-$7.2B
Sales/Maturities of Investments	$7.0B
Other Investing Activities	$0
NET CASH FROM INVESTING	-$182M
Net Debt Issuance	$981M
Common Stock Repurchased	$0
Common Dividends Paid	-$642M
Other Financing Activities	-$37M
NET CASH FROM FINANCING	$2.1B
FREE CASH FLOW	-$1.9B
Net Change in Cash	$93M

Balance Sheet

Item	Amount
Cash & Equivalents	$316M
Short-Term Investments	$0
Net Receivables	$94M
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$409M
PP&E (Net)	$0
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$11.8B
Tax Assets	$0
Other Non-Current Assets	-$11.8B
TOTAL NON-CURRENT ASSETS	$11.8B
TOTAL ASSETS	$12.3B
Account Payables	$245M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	-$395M
TOTAL CURRENT LIABILITIES	$395M
Long-Term Debt	$0
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$0
TOTAL NON-CURRENT LIABILITIES	$4.9B
TOTAL LIABILITIES	$5.2B
Common Stock	$0
Additional Paid-In Capital	$7.2B
Retained Earnings	-$94M
Treasury Stock	$0
Accum. Other Comp. Income	$0
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$7.1B
Minority Interest	$0
TOTAL EQUITY	$7.1B
TOTAL LIABILITIES & EQUITY	$12.3B
Total Debt	$4.9B
Net Debt	-$316M