ARCC FY 2020 Earnings Report — Ares Capital Corporation Revenue & Financial Results | Market Cap Arena

Ares Capital CorporationARCC

FY 2020 Earnings

Reported March 5, 2021

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2020	Prior Q	FY 2019	QoQ Change	YoY Change
Revenue	$858M	—	$1.1B	—	-23.0%
Op. Income	$503M	—	$809M	—	-37.8%
Gross Margin	63.1%	—	73.9%	—	-10.8pp
Net Margin	56.4%	—	71.1%	—	-14.7pp
EPS (Diluted)	$1.14	—	$1.86	—	-38.7%
Free Cash Flow	$734M	—	$681M	—	7.8%

Revenue Flow

Item	Amount
REVENUE	$858M
Cost of Revenue	$317M
GROSS PROFIT	$541M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$38M
SG&A Expenses	$38M
Other Expenses	$0
Operating Expenses	$38M
Cost & Expenses	$355M
OPERATING INCOME	$503M
Interest Income	$1.2B
Interest Expense	$317M
Other Income/Expenses	$0
INCOME BEFORE TAX	$503M
Income Tax Expense	$19M
Net Income from Continuing Ops	$484M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$484M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$484M
D&A	$0
EBIT	$503M
EBITDA	$503M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$858M
Cost of Revenue	$317M
GROSS PROFIT	$541M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$38M
SG&A Expenses	$38M
Other Expenses	$0
Operating Expenses	$38M
Cost & Expenses	$355M
OPERATING INCOME	$503M
Interest Income	$1.2B
Interest Expense	$317M
Other Income/Expenses	$0
INCOME BEFORE TAX	$503M
Income Tax Expense	$19M
Net Income from Continuing Ops	$484M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$484M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$484M
D&A	$0
EBIT	$503M
EBITDA	$503M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$484M
Depreciation & Amortization	$0
Stock-Based Compensation	$0
Deferred Income Tax	$0
Other Non-Cash Items	$172M
Change in Working Capital	$78M
OPERATING CASH FLOW	$734M
Capital Expenditure	$0
Acquisitions (Net)	$0
Purchases of Investments	-$6.8B
Sales/Maturities of Investments	$5.5B
Other Investing Activities	$0
NET CASH FROM INVESTING	-$1.3B
Net Debt Issuance	$1.5B
Common Stock Repurchased	-$100M
Common Dividends Paid	-$679M
Other Financing Activities	-$60M
NET CASH FROM FINANCING	$707M
FREE CASH FLOW	$734M
Net Change in Cash	$150M

Balance Sheet

Item	Amount
Cash & Equivalents	$254M
Short-Term Investments	$0
Net Receivables	$223M
Inventory	$0
Other Current Assets	$72M
TOTAL CURRENT ASSETS	$549M
PP&E (Net)	$38M
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$15.5B
Tax Assets	$0
Other Non-Current Assets	$94M
TOTAL NON-CURRENT ASSETS	$15.6B
TOTAL ASSETS	$16.2B
Account Payables	$66M
Short-Term Debt	$27M
Deferred Revenue	$0
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$375M
Long-Term Debt	$8.5B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$72M
TOTAL NON-CURRENT LIABILITIES	$8.6B
TOTAL LIABILITIES	$9.0B
Common Stock	$0
Additional Paid-In Capital	$7.7B
Retained Earnings	-$480M
Treasury Stock	$0
Accum. Other Comp. Income	$0
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$7.2B
Minority Interest	$0
TOTAL EQUITY	$7.2B
TOTAL LIABILITIES & EQUITY	$16.2B
Total Debt	$8.6B
Net Debt	$8.3B