Ares Capital Corp (ARCC) 10-Q Quarterly Report October 2023

New York, NY — July 25, 2023 — Ares Capital Corporation (“Ares Capital”) (NASDAQ: ARCC) announced that its Board of Directors has declared a third quarter 2023 dividend of $0.48 per share. The third quarter 2023 dividend is payable on September 29, 2023 to stockholders of record as of September 15, 2023.

JUNE 30, 2023 FINANCIAL RESULTS

Ares Capital also announced financial results for its second quarter ended June 30, 2023.

OPERATING RESULTS


	Q2-23(1)				Q2-22(1)
(dollar amounts in millions, except per share data)	Total Amount		Per Share		Total Amount		Per Share
GAAP net income per share(2)(3)			$	0.61			$	0.22
Core EPS(4)			$	0.58			$	0.46
Dividends declared and payable			$	0.48			$	0.45	(5)
Net investment income(2)	$	314	$	0.57	$	257	$	0.52
Net realized losses(2)	$	(81)	$	(0.15)	$	(3)	$	(0.01)
Net unrealized gains (losses)(2)	$	98	$	0.19	$	(143)	$	(0.29)
GAAP net income(2)(3)	$	331	$	0.61	$	111	$	0.22


	As of
(dollar amounts in millions, except per share data)	June 30, 2023		December 31, 2022
Portfolio investments at fair value	$	21,496	$	21,780
Total assets	$	22,231	$	22,398
Stockholders’ equity	$	10,354	$	9,555
Net assets per share	$	18.58	$	18.40
Debt/equity ratio	1.10x		1.29x
Debt/equity ratio, net of available cash(6)	1.07x		1.26x

____________________________________________

(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 and weighted average shares outstanding are basic. The basic weighted average shares outstanding for the three months ended June 30, 2023 and 2022 were approximately 547 million and 494 million, respectively.

(3)Ares Capital’s diluted GAAP net income per share for the three months ended June 30, 2023 and 2022 was $0.59 and $0.22, respectively. The weighted average shares outstanding for the purpose of calculating the diluted GAAP net income per share for the three months ended June 30, 2023 and 2022 were approximately 567 million and 514 million shares, respectively, which includes approximately 20 million shares for each period related to the assumed conversion of outstanding convertible notes.

(4)Core EPS is a non-GAAP financial measure. Core EPS is the net increase (decrease) in stockholders’ equity resulting from operations, and excludes 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, divided by the basic weighted average shares outstanding for the relevant period. 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

The following information was filed by Ares Capital Corp (ARCC) on Tuesday, July 25, 2023 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 - Dividend Highlight
Dividend income for the three and nine months ended September 30, 2023 and 2022 were as follows: Dividend income received from IHAM for the three and nine months ended September 30, 2023 increased from the comparable periods in 2022 primarily due to the continued increase in IHAM's earnings given the increase in their assets under management, which generally has been supported by our additional investments in IHAM.

Financial - Shares Highlight
194 Stock Repurchase Program We are authorized under our stock repurchase program to purchase up to $1.0 billion 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 (the "Exchange Act").
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.
Other - Other Highlight
The interest rate charged on the SMBC Funding Facility is based on an applicable spread of either 1.75% or 2.00% over one month SOFR plus a credit spread adjustment of 0.10%, or 0.75% or 1.00% over a "base rate" (as defined in the agreements governing the SMBC Funding Facility), in each case, determined monthly based on the amount of the average borrowings outstanding under the SMBC Funding Facility.
Revenue - Geography Highlight
188 The net realized losses on investments during the three months ended September 30, 2023 consisted of the following: (in millions)Portfolio Company Net Realized Gains (Losses) Benefytt Technologies, Inc. $ (17) JDC Healthcare Management, LLC (20) Visual Edge Technology, Inc. (47) Other, net 12 Total $ (72) During the three months ended September 30, 2023, we also recognized net realized losses on foreign currency and other transactions of $4 million.
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This system is intended primarily...Read more
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199 The 2024 Convertible Notes...Read more
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Debt and equity securities that...Read more
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174 The amortized cost and...Read more
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MACROECONOMIC ENVIRONMENT Credit markets continued...Read more
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Net Realized Gains/Losses The net...Read more
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Financial Statements, Disclosures and Schedules

Inside this 10-Q Quarterly Report

Material Contracts, Statements, Certifications & more

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

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: 0001287750-23-000045
Submitted to the SEC: Mon Oct 23 2023 7:57:08 PM EST
Accepted by the SEC: Tue Oct 24 2023
Period: Saturday, September 30, 2023
Industry: 1287750