Ares Capital Corp (ARCC) 10-Q Quarterly Report April 2022

New York, NY — February 9, 2022 — Ares Capital Corporation (“Ares Capital”) (NASDAQ: ARCC) announced that its Board of Directors has declared a first quarter dividend of $0.42 per share. The first quarter dividend is payable on March 31, 2022 to stockholders of record as of March 15, 2022. The Board of Directors has also declared additional dividends totaling $0.12 per share for 2022, to be distributed in four consecutive quarterly payments of $0.03 per share per quarter. The first additional dividend is also payable on March 31, 2022 to stockholders of record as of March 15, 2022.

DECEMBER 31, 2021 FINANCIAL RESULTS

Ares Capital also announced financial results for its fourth quarter and year ended December 31, 2021.

OPERATING RESULTS


	Q4-21(1)				Q4-20(1)				FY-21				FY-20
(dollar amounts in millions, except per share data)	Total Amount		Per Share(2)		Total Amount		Per Share(2)		Total Amount		Per Share(2)		Total Amount		Per Share(2)
Core EPS(3)			$	0.58			$	0.54			$	2.02			$	1.74
GAAP net income per share			$	0.83			$	0.89			$	3.51			$	1.14
Net investment income	$	242	$	0.52	$	229	$	0.54	$	741	$	1.66	$	794	$	1.87
Net realized gains (losses)	$	16	$	0.04	$	(183)	$	(0.43)	$	240	$	0.54	$	(166)	$	(0.39)
Net unrealized gains (losses)	$	124	$	0.27	$	332	$	0.78	$	586	$	1.31	$	(144)	$	(0.34)
GAAP net income	$	382	$	0.83	$	378	$	0.89	$	1,567	$	3.51	$	484	$	1.14
Dividends declared and payable			$	0.41			$	0.40			$	1.62			$	1.60


	As of
(dollar amounts in millions, except per share data)	December 31, 2021		December 31, 2020
Portfolio investments at fair value	$	20,009	$	15,515
Total assets	$	20,843	$	16,196
Stockholders’ equity	$	8,868	$	7,176
Net assets per share	$	18.96	$	16.97
Debt/equity ratio	1.26x		1.20x

____________________________________________

(1)Net income can vary substantially from period to period due to various factors, including the level of new investment commitments, the recognition of realized gains and losses and unrealized appreciation and depreciation. As a result, quarterly comparisons of net income may not be meaningful.

(2)All per share amounts are basic and diluted.

(3)Basic and diluted Core EPS is a non-GAAP financial measure. Core EPS is the net per share increase (decrease) in stockholders’ equity resulting from operations less net realized and unrealized gains and losses, any capital gains incentive fees attributable to such net realized and unrealized gains and losses and any income taxes related to such net realized gains and losses. Basic and diluted GAAP net income (loss) per share is the most directly comparable GAAP financial measure. Ares Capital believes that Core EPS provides useful information to investors regarding financial performance because it is one method Ares Capital uses to measure its financial condition and results of operations. The presentation of this additional information is not meant to be considered in isolation or as a substitute for financial results prepared in accordance with GAAP. Reconciliations of basic and diluted Core EPS to the most directly comparable GAAP financial measure are set forth in Schedule 1 hereto.

The following information was filed by Ares Capital Corp (ARCC) on Wednesday, February 9, 2022 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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Inside Ares Capital Corp's 10-Q Quarterly Report:

Financial - Shares Highlight
Stock Repurchase Program We are authorized under our stock repurchase program to purchase up to $500 million in the aggregate of our outstanding common stock in the open market at certain thresholds below our net asset value per share, in accordance with the guidelines specified in Rule 10b-18 under the Securities Exchange Act of 1934, as amended.
Revenue - Product Highlight
Net Realized Gains/Losses The net realized gains (losses) from the sales, repayments or exits of investments during the three months ended March 31, 2022 and 2021 were comprised of the following: For the Three Months Ended March 31, (in millions) 2022 2021 Sales, repayments or exits of investments(1) $ 2,521 $ 1,955 Net realized gains (losses) on investments: Gross realized gains $ 81 $ 80 Gross realized losses (12) (13) Total net realized gains on investments $ 69 $ 67 _______________________________________________________________________________ (1)Includes $1.2 billion and $283 million of loans sold to IHAM and certain vehicles managed by IHAM during the three months ended March 31, 2022 and 2021, respectively.
Financial - Shares Highlight
FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES Our liquidity and capital resources are generated primarily from the net proceeds of public offerings of equity and debt securities, advances from the Revolving Credit Facility, the Revolving Funding Facility, the SMBC Funding Facility and the BNP Funding Facility (each as defined below, and together, the "Facilities"), net proceeds from the issuance of other securities, including unsecured notes, as well as cash flows from operations.
Financial - Expense Highlight
Interest and credit facility fees for the three months ended March 31, 2022 and 2021, were comprised of the following: For the Three Months Ended March 31, (in millions) 2022 2021 Stated interest expense $ 84 $ 71 Credit facility fees 3 7 Amortization of debt issuance costs 7 6 Net (amortization) accretion of discount on notes payable (1) 2 Total interest and credit facility fees $ 93 $ 86 Stated interest expense for the three months ended March 31, 2022 increased from the comparable period in 2021 primarily due to the increase in the average principal amount of debt outstanding.
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Financial - Dividend
Dividend income for the three...Read more
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3 Involves a level of...Read more
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(2)"Weighted average yield on total...Read more
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(8)"Weighted average yield of debt...Read more
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Financial - Cash Flow
Internal rate of return is...Read more
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144 Depending on the level...Read more
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Subject to borrowing base and...Read more
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We also may invest up...Read more
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Material Contracts, Statements, Certifications & more

Ares Capital Corp provided additional information to their SEC Filing as exhibits

Exhibit 3.1: Articles Of Incorporation

Exhibit 31.1: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 31.2: Rule 13A-14(A)/15D-14(A) Certification

Exhibit 32.1: Section 1350 Certification

Ticker: ARCC
CIK: 1287750
Form Type: 10-Q Quarterly Report
Accession Number: 0001287750-22-000021
Submitted to the SEC: Mon Apr 25 2022 9:50:01 PM EST
Accepted by the SEC: Tue Apr 26 2022
Period: Thursday, March 31, 2022
Industry: 1287750