ARCC FY 2021 Earnings Report — Ares Capital Corporation Revenue & Financial Results | Market Cap Arena

Ares Capital CorporationARCC

FY 2021 Earnings

Reported February 9, 2022

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2021	Prior Q	FY 2020	QoQ Change	YoY Change
Revenue	$2.0B	—	$858M	—	138.9%
Op. Income	$1.6B	—	$503M	—	217.3%
Gross Margin	81.9%	—	63.1%	—	18.8pp
Net Margin	76.4%	—	56.4%	—	20.0pp
EPS (Diluted)	$3.51	—	$1.14	—	207.9%
Free Cash Flow	$935M	—	$734M	—	27.4%

Revenue Flow

Item	Amount
REVENUE	$2.0B
Cost of Revenue	$372M
GROSS PROFIT	$1.7B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$39M
SG&A Expenses	$39M
Other Expenses	$43M
Operating Expenses	$82M
Cost & Expenses	$454M
OPERATING INCOME	$1.6B
Interest Income	$1.2B
Interest Expense	$372M
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.6B
Income Tax Expense	$29M
Net Income from Continuing Ops	$1.6B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.6B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.6B
D&A	$0
EBIT	$1.6B
EBITDA	$1.6B
EPS	$4
EPS Diluted	$4

Income Statement

Item	Amount
REVENUE	$2.0B
Cost of Revenue	$372M
GROSS PROFIT	$1.7B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$39M
SG&A Expenses	$39M
Other Expenses	$43M
Operating Expenses	$82M
Cost & Expenses	$454M
OPERATING INCOME	$1.6B
Interest Income	$1.2B
Interest Expense	$372M
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.6B
Income Tax Expense	$29M
Net Income from Continuing Ops	$1.6B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.6B
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$1.6B
D&A	$0
EBIT	$1.6B
EBITDA	$1.6B
EPS	$4
EPS Diluted	$4

Cash Flow Statement

Item	Amount
Net Income	$1.6B
Depreciation & Amortization	$0
Stock-Based Compensation	$0
Deferred Income Tax	$0
Other Non-Cash Items	-$840M
Change in Working Capital	$208M
OPERATING CASH FLOW	$935M
Capital Expenditure	$0
Acquisitions (Net)	$0
Purchases of Investments	-$13.6B
Sales/Maturities of Investments	$10.3B
Other Investing Activities	$0
NET CASH FROM INVESTING	-$3.4B
Net Debt Issuance	$2.6B
Common Stock Repurchased	$0
Common Dividends Paid	-$694M
Other Financing Activities	-$64M
NET CASH FROM FINANCING	$2.6B
FREE CASH FLOW	$935M
Net Change in Cash	$160M

Balance Sheet

Item	Amount
Cash & Equivalents	$372M
Short-Term Investments	$0
Net Receivables	$222M
Inventory	$0
Other Current Assets	$114M
TOTAL CURRENT ASSETS	$708M
PP&E (Net)	$27M
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$20.0B
Tax Assets	$0
Other Non-Current Assets	$99M
TOTAL NON-CURRENT ASSETS	$20.1B
TOTAL ASSETS	$20.8B
Account Payables	$307M
Short-Term Debt	$20M
Deferred Revenue	$0
Other Current Liabilities	$0
TOTAL CURRENT LIABILITIES	$724M
Long-Term Debt	$11.1B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$114M
TOTAL NON-CURRENT LIABILITIES	$11.3B
TOTAL LIABILITIES	$12.0B
Common Stock	$0
Additional Paid-In Capital	$8.6B
Retained Earnings	$315M
Treasury Stock	$0
Accum. Other Comp. Income	$0
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$8.9B
Minority Interest	$0
TOTAL EQUITY	$8.9B
TOTAL LIABILITIES & EQUITY	$20.8B
Total Debt	$11.2B
Net Debt	$10.8B