ARCC FY 2023 Earnings Report — Ares Capital Corporation Revenue & Financial Results | Market Cap Arena

Ares Capital CorporationARCC

FY 2023 Earnings

Reported March 21, 2024

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	FY 2023	Prior Q	FY 2022	QoQ Change	YoY Change
Revenue	$2.2B	—	$1.2B	—	81.1%
Op. Income	$1.5B	—	$655M	—	135.4%
Gross Margin	75.5%	—	62.0%	—	13.6pp
Net Margin	70.3%	—	50.2%	—	20.1pp
EPS (Diluted)	$2.68	—	$1.19	—	125.2%
Free Cash Flow	$1.0B	—	$746M	—	34.0%

Revenue Flow

Item	Amount
REVENUE	$2.2B
Cost of Revenue	$530M
GROSS PROFIT	$1.6B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$42M
SG&A Expenses	$42M
Other Expenses	$52M
Operating Expenses	$94M
Cost & Expenses	$624M
OPERATING INCOME	$1.5B
Interest Income	$2.0B
Interest Expense	$530M
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.5B
Income Tax Expense	$20M
Net Income from Continuing Ops	$1.5B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.5B
Net Income Deductions	-$17M
BOTTOM LINE NET INCOME	$1.5B
D&A	$0
EBIT	$1.5B
EBITDA	$1.5B
EPS	$3
EPS Diluted	$3

Income Statement

Item	Amount
REVENUE	$2.2B
Cost of Revenue	$530M
GROSS PROFIT	$1.6B
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$42M
SG&A Expenses	$42M
Other Expenses	$52M
Operating Expenses	$94M
Cost & Expenses	$624M
OPERATING INCOME	$1.5B
Interest Income	$2.0B
Interest Expense	$530M
Other Income/Expenses	$0
INCOME BEFORE TAX	$1.5B
Income Tax Expense	$20M
Net Income from Continuing Ops	$1.5B
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$1.5B
Net Income Deductions	-$17M
BOTTOM LINE NET INCOME	$1.5B
D&A	$0
EBIT	$1.5B
EBITDA	$1.5B
EPS	$3
EPS Diluted	$3

Cash Flow Statement

Item	Amount
Net Income	$1.5B
Depreciation & Amortization	$0
Stock-Based Compensation	$0
Deferred Income Tax	$0
Other Non-Cash Items	-$553M
Change in Working Capital	$31M
OPERATING CASH FLOW	$1.0B
Capital Expenditure	$0
Acquisitions (Net)	$0
Purchases of Investments	-$5.8B
Sales/Maturities of Investments	$5.3B
Other Investing Activities	$0
NET CASH FROM INVESTING	-$489M
Net Debt Issuance	-$388M
Common Stock Repurchased	$0
Common Dividends Paid	-$1.0B
Other Financing Activities	-$20M
NET CASH FROM FINANCING	-$284M
FREE CASH FLOW	$1.0B
Net Change in Cash	$227M

Balance Sheet

Item	Amount
Cash & Equivalents	$535M
Short-Term Investments	$0
Net Receivables	$261M
Inventory	$0
Other Current Assets	$29M
TOTAL CURRENT ASSETS	$825M
PP&E (Net)	$0
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$22.9B
Tax Assets	$0
Other Non-Current Assets	$86M
TOTAL NON-CURRENT ASSETS	$23.0B
TOTAL ASSETS	$23.8B
Account Payables	$115M
Short-Term Debt	$1.3B
Deferred Revenue	$0
Other Current Liabilities	$24M
TOTAL CURRENT LIABILITIES	$1.9B
Long-Term Debt	$10.6B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$116M
TOTAL NON-CURRENT LIABILITIES	$10.7B
TOTAL LIABILITIES	$12.6B
Common Stock	$1M
Additional Paid-In Capital	$10.7B
Retained Earnings	$462M
Treasury Stock	$0
Accum. Other Comp. Income	$0
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$11.2B
Minority Interest	$0
TOTAL EQUITY	$11.2B
TOTAL LIABILITIES & EQUITY	$23.8B
Total Debt	$11.9B
Net Debt	$11.4B