ARCC FY 2018 Earnings Report — Ares Capital Corporation Revenue & Financial Results | Market Cap Arena

Ares Capital CorporationARCC

FY 2018 Earnings

Reported February 11, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2018	Prior Q	FY 2017	QoQ Change	YoY Change
Revenue	$1.1B	—	$974M	—	14.9%
Op. Income	$877M	—	$686M	—	27.8%
Gross Margin	78.6%	—	76.9%	—	1.7pp
Net Margin	76.7%	—	68.5%	—	8.2pp
EPS (Diluted)	$2.01	—	$1.57	—	28.0%
Free Cash Flow	$666M	—	-$1.9B	—	135.7%

Revenue Flow

Item	Amount
REVENUE	$1.1B
Cost of Revenue	$240M
GROSS PROFIT	$879M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$42M
SG&A Expenses	$42M
Other Expenses	-$40M
Operating Expenses	$2M
Cost & Expenses	$242M
OPERATING INCOME	$877M
Interest Income	$1.0B
Interest Expense	$240M
Other Income/Expenses	$0
INCOME BEFORE TAX	$877M
Income Tax Expense	$19M
Net Income from Continuing Ops	$858M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$858M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$858M
D&A	$0
EBIT	$877M
EBITDA	$877M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$1.1B
Cost of Revenue	$240M
GROSS PROFIT	$879M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$42M
SG&A Expenses	$42M
Other Expenses	-$40M
Operating Expenses	$2M
Cost & Expenses	$242M
OPERATING INCOME	$877M
Interest Income	$1.0B
Interest Expense	$240M
Other Income/Expenses	$0
INCOME BEFORE TAX	$877M
Income Tax Expense	$19M
Net Income from Continuing Ops	$858M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$858M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$858M
D&A	$0
EBIT	$877M
EBITDA	$877M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$858M
Depreciation & Amortization	$0
Stock-Based Compensation	$0
Deferred Income Tax	$0
Other Non-Cash Items	-$208M
Change in Working Capital	$16M
OPERATING CASH FLOW	$666M
Capital Expenditure	$0
Acquisitions (Net)	$0
Purchases of Investments	-$7.1B
Sales/Maturities of Investments	$6.7B
Other Investing Activities	$0
NET CASH FROM INVESTING	-$362M
Net Debt Issuance	$351M
Common Stock Repurchased	$0
Common Dividends Paid	-$656M
Other Financing Activities	-$19M
NET CASH FROM FINANCING	-$324M
FREE CASH FLOW	$666M
Net Change in Cash	-$20M

Balance Sheet

Item	Amount
Cash & Equivalents	$296M
Short-Term Investments	$0
Net Receivables	$103M
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$399M
PP&E (Net)	$0
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$12.4B
Tax Assets	$0
Other Non-Current Assets	-$12.4B
TOTAL NON-CURRENT ASSETS	$12.4B
TOTAL ASSETS	$12.9B
Account Payables	$155M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	-$348M
TOTAL CURRENT LIABILITIES	$348M
Long-Term Debt	$0
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$0
TOTAL NON-CURRENT LIABILITIES	$5.2B
TOTAL LIABILITIES	$5.6B
Common Stock	$0
Additional Paid-In Capital	$7.2B
Retained Earnings	$127M
Treasury Stock	$0
Accum. Other Comp. Income	$0
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$7.3B
Minority Interest	$0
TOTAL EQUITY	$7.3B
TOTAL LIABILITIES & EQUITY	$12.9B
Total Debt	$5.2B
Net Debt	-$296M