TSLX Q4 2019 Earnings Report — Sixth Street Specialty Lending, Inc. Revenue & Financial Results | Market Cap Arena

Sixth Street Specialty Lending, Inc.TSLX

Q4 2019 Earnings

Reported February 19, 2020

Quarter Comparison

Revenue

Operating Income

Gross Margin

Net Margin

EPS (Diluted)

Free Cash Flow

Metric	Q4 2019	Q3 2019	Q4 2018	QoQ Change	YoY Change
Revenue	$55M	$48M	$28M	14.8%	93.7%
Op. Income	$39M	$32M	$15M	21.0%	153.8%
Gross Margin	79.4%	78.4%	70.1%	1.0pp	9.3pp
Net Margin	68.5%	63.2%	50.0%	5.2pp	18.4pp
EPS (Diluted)	$0.57	$0.46	$0.22	23.9%	159.1%
Free Cash Flow	$28M	$38M	$44M	-27.4%	-38.1%

Revenue Flow

Item	Amount
REVENUE	$55M
Cost of Revenue	$11M
GROSS PROFIT	$44M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$3M
SG&A Expenses	$3M
Other Expenses	$2M
Operating Expenses	$5M
Cost & Expenses	$16M
OPERATING INCOME	$39M
Interest Income	$59M
Interest Expense	$11M
Other Income/Expenses	$0
INCOME BEFORE TAX	$39M
Income Tax Expense	$900.0K
Net Income from Continuing Ops	$38M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$38M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$38M
D&A	$0
EBIT	$39M
EBITDA	$39M
EPS	$1
EPS Diluted	$1

Income Statement

Item	Amount
REVENUE	$55M
Cost of Revenue	$11M
GROSS PROFIT	$44M
R&D Expenses	$0
Selling & Marketing	$0
General & Administrative	$3M
SG&A Expenses	$3M
Other Expenses	$2M
Operating Expenses	$5M
Cost & Expenses	$16M
OPERATING INCOME	$39M
Interest Income	$59M
Interest Expense	$11M
Other Income/Expenses	$0
INCOME BEFORE TAX	$39M
Income Tax Expense	$900.0K
Net Income from Continuing Ops	$38M
Net Income from Discontinued Ops	$0
Other Adjustments	$0
NET INCOME	$38M
Net Income Deductions	$0
BOTTOM LINE NET INCOME	$38M
D&A	$0
EBIT	$39M
EBITDA	$39M
EPS	$1
EPS Diluted	$1

Cash Flow Statement

Item	Amount
Net Income	$38M
Depreciation & Amortization	$0
Stock-Based Compensation	$0
Deferred Income Tax	$0
Other Non-Cash Items	-$8M
Change in Working Capital	-$2M
OPERATING CASH FLOW	$28M
Capital Expenditure	$0
Acquisitions (Net)	$0
Purchases of Investments	-$301M
Sales/Maturities of Investments	$117M
Other Investing Activities	$0
NET CASH FROM INVESTING	-$184M
Net Debt Issuance	$189M
Common Stock Repurchased	$0
Common Dividends Paid	-$39M
Other Financing Activities	$0
NET CASH FROM FINANCING	$162M
FREE CASH FLOW	$28M
Net Change in Cash	$6M

Balance Sheet

Item	Amount
Cash & Equivalents	$5M
Short-Term Investments	$0
Net Receivables	$13M
Inventory	$0
Other Current Assets	$9M
TOTAL CURRENT ASSETS	$35M
PP&E (Net)	$0
Goodwill	$0
Intangible Assets	$0
Long-Term Investments	$2.2B
Tax Assets	$0
Other Non-Current Assets	$24M
TOTAL NON-CURRENT ASSETS	$2.2B
TOTAL ASSETS	$2.3B
Account Payables	$0
Short-Term Debt	$0
Deferred Revenue	$0
Other Current Liabilities	$26M
TOTAL CURRENT LIABILITIES	$43M
Long-Term Debt	$1.1B
Deferred Revenue NC	$0
Deferred Tax Liabilities	$0
Other Non-Current Liabilities	$24M
TOTAL NON-CURRENT LIABILITIES	$1.1B
TOTAL LIABILITIES	$1.2B
Common Stock	$666.0K
Additional Paid-In Capital	$1.0B
Retained Earnings	$111M
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	$2.3B
Total Debt	$1.1B
Net Debt	$1.1B