Ares Capital Corp Files 10-Q for Period Ending March 31, 2024

AI Summary

ARES CAPITAL CORP (ARCC) filed a Quarterly Report (10-Q) with the SEC on May 1, 2024. Ares Capital Corporation filed its quarterly report (10-Q) for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's fiscal year ends on December 31st. The filing was made on May 1, 2024. The company's principal executive offices are located at 245 Park Avenue, 44th Floor, New York, NY 10167.

Why It Matters

For investors and stakeholders tracking ARES CAPITAL CORP, this filing contains several important signals. This 10-Q filing provides investors with the latest financial data and operational updates for Ares Capital Corp, crucial for assessing its current performance and future outlook. Understanding the details within this report allows stakeholders to evaluate the company's investment portfolio, debt levels, and overall financial health in the current market environment.

Risk Assessment

Risk Level: medium — ARES CAPITAL CORP shows moderate risk based on this filing. The filing is a standard 10-Q, which provides a snapshot of financial health but lacks forward-looking guidance or significant new disclosures that would drastically alter risk perception.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-Q to understand Ares Capital Corp's performance and potential challenges in the current economic climate.

Key Numbers

• 2024-03-31 — Period End Date (CONFORMED PERIOD OF REPORT)
• 2024-05-01 — Filing Date (FILED AS OF DATE)
• 2024-04-30 — Date as of Change (DATE AS OF CHANGE)
• 1231 — Fiscal Year End (FISCAL YEAR END)

Key Players & Entities

• ARES CAPITAL CORP (company) — FILER
• ARCC (company) — Ticker Symbol
• 2024-03-31 (date) — CONFORMED PERIOD OF REPORT
• 2024-05-01 (date) — FILED AS OF DATE
• 245 PARK AVENUE, 44TH FLOOR (address) — BUSINESS ADDRESS STREET 1
• NEW YORK (location) — BUSINESS ADDRESS CITY
• 10167 (postal_code) — BUSINESS ADDRESS ZIP
• 2127507300 (phone_number) — BUSINESS PHONE

FAQ

Industry Context

Ares Capital Corporation operates as a business development company (BDC), primarily investing in debt and equity of private U.S. middle-market companies.

Regulatory Implications

As a BDC, Ares Capital Corp is subject to specific regulations under the Investment Company Act of 1940, impacting its investment strategies and capital structure.

What Investors Should Do

1. Review the detailed financial statements in the 10-Q for Q1 2024.
2. Analyze the company's investment portfolio composition and performance metrics.
3. Assess any changes in debt levels and their impact on financial leverage.

Key Dates

• 2024-03-31: Quarterly Period End — Marks the end of the reporting period for the 10-Q filing.
• 2024-05-01: Filing Date — Date the 10-Q report was officially submitted to the SEC.

Year-Over-Year Comparison

This filing is the 10-Q for the first quarter of 2024, following the 10-K annual report for the fiscal year ended December 31, 2023.

Key Financial Figures

• $0.001 — ich registered Common stock, par value $0.001 per share ARCC NASDAQ Global Select Mar

Filing Documents

• arcc-20240331.htm (10-Q) — 19575KB
• arccq1-24exhibit311.htm (EX-31.1) — 16KB
• arccq1-24exhibit312.htm (EX-31.2) — 16KB
• arccq1-24exhibit321.htm (EX-32.1) — 9KB
• 0001287750-24-000028.txt ( ) — 65986KB
• arcc-20240331.xsd (EX-101.SCH) — 170KB
• arcc-20240331_cal.xml (EX-101.CAL) — 91KB
• arcc-20240331_def.xml (EX-101.DEF) — 1044KB
• arcc-20240331_lab.xml (EX-101.LAB) — 1318KB
• arcc-20240331_pre.xml (EX-101.PRE) — 1014KB
• arcc-20240331_htm.xml (XML) — 12892KB

Financial Information

Part I. Financial Information

Financial Statements

Item 1. Financial Statements Consolidated Balance Sheet as of Ma rch 3 1 , 202 4 (unaudited) and December 31, 20 23 3 Consolidated Statement of Operations for the three months ended March 31, 2024 and 202 3 (unaudited) 4 Consolidated Schedule of Investments as of March 31, 2024 (unaudited) and December 31, 20 23 5 Consolidated Statement of Stockholders' Equity for the three months ended March 31, 2024 (unaudited) and the year ended December 31, 20 23 136 Consolidated Statement of Cash Flows for the three months ended March 31, 2024 and 202 3 (unaudited) 137

Notes to Consolidated Financial Statements (unaudited)

Notes to Consolidated Financial Statements (unaudited) 138

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 178

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 208

Controls and Procedures

Item 4. Controls and Procedures 210

Other Information

Part II. Other Information

Legal Proceedings

Item 1. Legal Proceedings 210

Risk Factors

Item 1A. Risk Factors 211

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 211

Defaults Upon Senior Securities

Item 3. Defaults Upon Senior Securities 211

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 211

Other Information

Item 5. Other Information 211

Exhibits

Item 6. Exhibits 212

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements ARES CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEET (in millions, except per share data) As of March 31, 2024 December 31, 2023 (unaudited) ASSETS Investments at fair value Non-controlled/non-affiliate company investments $ 18,452 $ 18,283 Non-controlled affiliate company investments 502 424 Controlled affiliate company investments 4,170 4,167 Total investments at fair value (amortized cost of $ 22,805 and $ 22,668 , respectively) 23,124 22,874 Cash and cash equivalents 509 535 Restricted cash 68 29 Interest receivable 251 245 Receivable for open trades 213 16 Other assets 82 91 Operating lease right-of-use asset 9 10 Total assets $ 24,256 $ 23,800 LIABILITIES Debt $ 11,695 $ 11,884 Base management fee payable 87 84 Income based fee payable 88 90 Capital gains incentive fee payable 112 88 Interest and facility fees payable 107 132 Payable to participants 68 29 Payable for open trades 14 7 Accounts payable and other liabilities 164 234 Secured borrowings 34 34 Operating lease liabilities 15 17 Total liabilities 12,384 12,599 Commitments and contingencies (Note 7) STOCKHOLDERS' EQUITY Common stock, par value $ 0.001 per share, 1,000 common shares authorized; 608 and 582 common shares issued and outstanding, respectively 1 1 Capital in excess of par value 11,251 10,738 Accumulated undistributed earnings 620 462 Total stockholders' equity 11,872 11,201 Total liabilities and stockholders' equity $ 24,256 $ 23,800 NET ASSETS PER SHARE $ 19.53 $ 19.24 See accompanying notes to consolidated financial statements. 3 ARES CAPITAL CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENT OF OPERATIONS (in millions, except per share data) (unaudited) For the Three Months Ended March 31, 2024 2023 INVESTMENT INCOME: From non-controlled/non-affiliate company investments: Interest income (excluding payment-in-kind ("PIK") interest income) $ 413 $ 367 PIK interest income 42 37 Capi

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View this 10-Q filing on SEC EDGAR