Ares Capital Corporation is a business development company specializing in acquisition, recapitalization, mezzanine debt, restructurings, rescue financing, and leveraged buyout transactions of middle market companies. It also makes growth capital and general refinancing. It prefers to make investments in companies engaged in the basic and growth manufacturing, business services, consumer products, health care products and services, and information technology service sectors. The fund will also consider investments in industries such as restaurants, retail, oil and gas, and technology sectors. It focuses on investments in Northeast, Mid-Atlantic, Southeast and Southwest regions from its New York office, the Midwest region, from the Chicago office, and the Western region from the Los Angeles office. The fund typically invests between $20 million and $200 million and a maximum of $400 million in companies with an EBITDA between $10 million and $250 million. It makes debt investments between $10 million and $100 million The fund invests through revolvers, first lien loans, warrants, unitranche structures, second lien loans, mezzanine debt, private high yield, junior capital, subordinated debt, and non-control preferred and common equity. The fund also selectively considers third-party-led senior and subordinated debt financings and opportunistically considers the purchase of stressed and discounted debt positions. The fund prefers to be an agent and/or lead the transactions in which it invests. The fund also seeks board representation in its portfolio companies.
Ares Capital Corporation (ARCC) is currently priced at $18.62, showing a slight increase of 1.5 cents (0.081%) from the previous close of $18.61. Trading volume stands at $1.52 million, which is 18.86% higher than the average.
In the latest quarterly earnings report released on Monday, April 27th, ARCC exceeded the consensus estimate EPS of 0.48.
ARCC offers a forward dividend yield of 10.31%, with a dividend per share of 48 cents in the most recent quarter and $1.92 on a trailing twelve-month basis.
The company generated a free cash flow of $248 million, while reducing debt repayment by $394 million, resulting in a net change in cash of -$330 million.
ARCC reported revenue of $635 million with a gross profit of $447 million. Operating income stands at $529 million, leading to a net income of $293 million, translating to earnings per share of 41 cents.
Key ratios for ARCC include a gross profit margin of 70.39%, net profit margin of 46.14%, and a price-to-earnings ratio of 12.07.
The balance sheet reflects total assets of $31.23 billion, with cash and cash equivalents amounting to $924 million and total debt at $15.99 billion.
This real-time financial snapshot of ARCC showcases positive performance indicators and a strong financial position.