TSLX Q2 2019 Earnings Report — Sixth Street Specialty Lending, Inc. Revenue & Financial Results | Market Cap Arena

Sixth Street Specialty Lending, Inc.TSLX

Q2 2019 Earnings

Reported July 31, 2019

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q2 2019	Q1 2019	Q2 2018	QoQ Change	YoY Change
Revenue	$65M	$52M	$49M	24.4%	33.8%
Op. Income	$49M	$39M	$34M	25.0%	41.6%
Gross Margin	84.1%	84.6%	80.2%	-0.5pp	3.9pp
Net Margin	73.4%	74.1%	69.0%	-0.6pp	4.4pp
EPS (Diluted)	$0.72	$0.59	$0.52	22.0%	38.5%
Free Cash Flow	$35M	$17M	$32M	102.7%	9.8%

Revenue Flow

Item	Amount
REVENUE	$65M
Cost of Revenue	$10M
GROSS PROFIT	$55M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$4M
SG&A Expenses	$4M
Other Expenses	$2M
Operating Expenses	$6M
Cost & Expenses	$16M
OPERATING INCOME	$49M
Interest Income	$60M
Interest Expense	$10M
Other Income/Expenses	$0
INCOME BEFORE TAX	$49M
Income Tax Expense	$1M
Net Income from Continuing Ops	$48M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$48M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$48M
D&A	$0
EBIT	$49M
EBITDA	$49M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$65M
Cost of Revenue	$10M
GROSS PROFIT	$55M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$4M
SG&A Expenses	$4M
Other Expenses	$2M
Operating Expenses	$6M
Cost & Expenses	$16M
OPERATING INCOME	$49M
Interest Income	$60M
Interest Expense	$10M
Other Income/Expenses	$0
INCOME BEFORE TAX	$49M
Income Tax Expense	$1M
Net Income from Continuing Ops	$48M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$48M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$48M
D&A	$0
EBIT	$49M
EBITDA	$49M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$48M
Depreciation & Amortization	$0
Stock-Based Compensation	$0
Deferred Income Tax	$0
Other Non-Cash Items	-$22M
Change in Working Capital	$9M
OPERATING CASH FLOW	$35M
Capital Expenditure	$0
Acquisitions (Net)	$0
Purchases of Investments	-$356M
Sales/Maturities of Investments	$138M
Other Investing Activities	$0
NET CASH FROM INVESTING	-$218M
Net Debt Issuance	$203M
Common Stock Repurchased	$0
Common Dividends Paid	-$20M
Other Financing Activities	$0
NET CASH FROM FINANCING	$183M
FREE CASH FLOW	$35M
Net Change in Cash	$312.0K

Balance Sheet

Item	Amount
Cash & Equivalents	$5M
Short-Term Investments	$0
Net Receivables	$11M
Inventory	$0
Other Current Assets	$5M
TOTAL CURRENT ASSETS	$29M
PP&E (Net)	$0
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$2.0B
Tax Assets	$0
Other Non-Current Assets	$11M
TOTAL NON-CURRENT ASSETS	$2.1B
TOTAL ASSETS	$2.1B
Account Payables	$0
Short-Term Debt	$114M
Deferred Revenue	$0
Other Current Liabilities	$26M
TOTAL CURRENT LIABILITIES	$157M
Long-Term Debt	$816M
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$16M
TOTAL NON-CURRENT LIABILITIES	$832M
TOTAL LIABILITIES	$988M
Common Stock	$661.0K
Additional Paid-In Capital	$1.0B
Retained Earnings	$99M
Treasury Stock	-$1M
Accum. Other Comp. Income	$0
Other Equity	$0
TOTAL STOCKHOLDERS' EQUITY	$1.1B
Minority Interest	$0
TOTAL EQUITY	$1.1B
TOTAL LIABILITIES & EQUITY	$2.1B
Total Debt	$930M
Net Debt	$925M