ARCC FY 2019 Earnings Report — Ares Capital Corporation Revenue & Financial Results | Market Cap Arena

Ares Capital CorporationARCC

FY 2019 Earnings

Reported February 12, 2020

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2019	Prior Q	FY 2018	QoQ Change	YoY Change
Revenue	$1.1B	—	$1.1B	—	-0.4%
Op. Income	$809M	—	$877M	—	-7.8%
Gross Margin	73.9%	—	78.6%	—	-4.7pp
Net Margin	71.1%	—	76.7%	—	-5.6pp
EPS (Diluted)	$1.86	—	$2.01	—	-7.5%
Free Cash Flow	$681M	—	$666M	—	2.3%

Revenue Flow

Item	Amount
REVENUE	$1.1B
Cost of Revenue	$291M
GROSS PROFIT	$824M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$45M
SG&A Expenses	$45M
Other Expenses	-$30M
Operating Expenses	$15M
Cost & Expenses	$306M
OPERATING INCOME	$809M
Interest Income	$1.2B
Interest Expense	$291M
Other Income/Expenses	$0
INCOME BEFORE TAX	$809M
Income Tax Expense	$16M
Net Income from Continuing Ops	$793M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$793M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$793M
D&A	$0
EBIT	$809M
EBITDA	$809M
EPS	$2
EPS Diluted	$2

Income Statement

Item	Amount
REVENUE	$1.1B
Cost of Revenue	$291M
GROSS PROFIT	$824M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$45M
SG&A Expenses	$45M
Other Expenses	-$30M
Operating Expenses	$15M
Cost & Expenses	$306M
OPERATING INCOME	$809M
Interest Income	$1.2B
Interest Expense	$291M
Other Income/Expenses	$0
INCOME BEFORE TAX	$809M
Income Tax Expense	$16M
Net Income from Continuing Ops	$793M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$793M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$793M
D&A	$0
EBIT	$809M
EBITDA	$809M
EPS	$2
EPS Diluted	$2

Cash Flow Statement

Item	Amount
Net Income	$793M
Depreciation & Amortization	$0
Stock-Based Compensation	$0
Deferred Income Tax	$0
Other Non-Cash Items	-$73M
Change in Working Capital	-$39M
OPERATING CASH FLOW	$681M
Capital Expenditure	$0
Acquisitions (Net)	$0
Purchases of Investments	-$6.8B
Sales/Maturities of Investments	$4.9B
Other Investing Activities	$0
NET CASH FROM INVESTING	-$1.9B
Net Debt Issuance	$1.8B
Common Stock Repurchased	$0
Common Dividends Paid	-$694M
Other Financing Activities	-$59M
NET CASH FROM FINANCING	$1.1B
FREE CASH FLOW	$681M
Net Change in Cash	-$120M

Balance Sheet

Item	Amount
Cash & Equivalents	$176M
Short-Term Investments	$0
Net Receivables	$131M
Inventory	$0
Other Current Assets	$0
TOTAL CURRENT ASSETS	$307M
PP&E (Net)	$94M
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$14.4B
Tax Assets	$0
Other Non-Current Assets	-$14.4B
TOTAL NON-CURRENT ASSETS	$94M
TOTAL ASSETS	$14.9B
Account Payables	$177M
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	-$225M
TOTAL CURRENT LIABILITIES	$121M
Long-Term Debt	$7.0B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	-$5M
TOTAL NON-CURRENT LIABILITIES	$7.1B
TOTAL LIABILITIES	$7.4B
Common Stock	$0
Additional Paid-In Capital	$7.8B
Retained Earnings	-$293M
Treasury Stock	$0
Accum. Other Comp. Income	$0
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$7.5B
Minority Interest	$0
TOTAL EQUITY	$7.5B
TOTAL LIABILITIES & EQUITY	$14.9B
Total Debt	$7.1B
Net Debt	$6.9B