Third Quarter 2012 Dividend and Additional Dividend Declared
NEW YORK--(BUSINESS WIRE)--
Ares Capital Corporation (“Ares Capital”) (NASDAQ: ARCC) announced that
its Board of Directors has declared a third quarter dividend of $0.38
per share and an additional dividend of $0.05 per share, both payable on
September 28, 2012 to stockholders of record as of
September 14, 2012.
JUNE 30, 2012 FINANCIAL RESULTS
Ares Capital also announced financial results for its second quarter
ended June 30, 2012.
HIGHLIGHTS
Financial
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|
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Q2-12
|
|
|
Q2-11
|
|
|
|
|
Total
|
|
|
Per
|
|
|
Total
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|
|
Per
|
|
|
(in millions, except per share data)
|
|
Amount
|
|
|
Share(1)
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|
|
Amount
|
|
|
Share(1)
|
|
|
Core EPS (2)
|
|
|
|
|
$
|
0.40
|
|
|
|
|
|
$
|
0.33
|
|
|
Net investment income
|
|
$
|
87.9
|
|
|
$
|
0.40
|
|
|
$
|
43.8
|
|
|
$
|
0.21
|
|
|
Net realized losses
|
|
$
|
(41.6
|
)
|
|
$
|
(0.19
|
)
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|
$
|
(16.8
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)
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|
$
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(0.08
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)
|
|
Net unrealized gains
|
|
$
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44.6
|
|
|
$
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0.20
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|
|
$
|
10.0
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|
|
$
|
0.05
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|
|
GAAP net income
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|
$
|
90.9
|
|
|
$
|
0.41
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|
|
$
|
36.9
|
|
|
$
|
0.18
|
|
|
Dividends declared
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|
|
|
|
0.37
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|
|
|
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|
0.35
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|
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As of June 30,
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|
(in millions, except per share data)
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|
2012
|
|
2011
|
|
Portfolio investments at fair value
|
|
$
|
5,504.8
|
|
$
|
4,643.2
|
|
Total assets
|
|
$
|
5,807.5
|
|
$
|
4,911.5
|
|
Stockholders’ equity
|
|
$
|
3,446.5
|
|
$
|
3,134.3
|
|
Net assets per share
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|
$
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15.51
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|
$
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15.28
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|
|
|
|
|
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|
(1) All per share amounts are basic and diluted.
(2) 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 realized and unrealized gains and losses,
any incentive fees attributable to such net realized and unrealized
gains and losses and any income taxes related to such realized gains.
Basic and diluted GAAP EPS 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.
Portfolio Activity
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(dollar amounts in millions)
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|
Q2-12
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Q2-11
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|
|
Portfolio Activity During the Period:
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|
|
|
|
|
|
|
Gross commitments
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|
$
|
727.6
|
|
|
$
|
889.5
|
|
|
Exits of commitments
|
|
$
|
473.3
|
|
|
$
|
375.8
|
|
|
|
|
|
|
|
|
|
|
Portfolio as of the End of the Period:
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|
|
|
|
|
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Number of portfolio company investments
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144
|
|
|
148
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|
|
Weighted average yield of debt and other income producing securities:
|
|
|
|
|
|
|
|
At fair value(3)
|
|
11.6
|
%
|
|
12.4
|
%
|
|
At amortized cost(4)
|
|
11.7
|
%
|
|
12.5
|
%
|
OPERATING RESULTS
For the quarter ended June 30, 2012, Ares Capital reported GAAP net
income of $90.9 million or $0.41 per share (basic and diluted), Core
EPS(2) of $0.40 per share (basic and diluted), net investment income of
$87.9 million, or $0.40 per share (basic and diluted), and net realized
and unrealized gains of $3.0 million or $0.01 per share (basic and
diluted).
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.
As of June 30, 2012, total assets were $5.8 billion, stockholders’
equity was $3.4 billion and net asset value per share was $15.51.
In the second quarter of 2012, Ares Capital made $727.6 million in new
commitments, including commitments to five new portfolio companies, 12
existing portfolio companies and, through the Senior Secured Loan Fund
LLC (the “Senior Secured Loan Program”), three portfolio companies.
Seventeen of these new commitments were sponsored transactions. As of
June 30, 2012, 87 separate private equity sponsors were
represented in Ares Capital’s portfolio. Of the $727.6 million in new
commitments made during the second quarter of 2012, approximately 53%
were in first lien senior secured debt, 40% were in second lien senior
secured debt, 5% were in subordinated debt, and 2% were in subordinated
certificates of the Senior Secured Loan Program (the proceeds of which
were applied to co-investments with GE Global Sponsor Finance LLC and
General Electric Capital Corporation (together, “GE”) to fund first lien
senior secured loans through the Senior Secured Loan Program). Of these
commitments, 81% were in floating rate debt securities of which 97%
contained interest rate floors and 3% were in the subordinated
certificates of the Senior Secured Loan Program, the proceeds of which
were applied to co-investments with GE to fund floating rate first lien
senior secured loans through the Senior Secured Loan Program, all of
which carried interest rate floors. We may seek to syndicate a portion
of these new investment commitments to third parties, although there can
be no assurance that we will be able to do so.
During the second quarter of 2012, significant new commitments included:
-
$108 million in first and second lien senior term loans of a sports
optics manufacturer and marketer;
-
$90 million in first lien senior revolving and term loans of a payroll
services provider;
-
$79 million in first and second lien senior term loans of a precision
components manufacturer for the aerospace industry;
-
$67 million in a first lien senior term loan of an athletic apparel
manufacturer;
-
$50 million in a second lien senior term loan of a food service
distributor;
-
$45 million in a second lien senior term loan of a patient survey and
management reports provider for the healthcare industry;
-
$43 million in second lien senior term loans of a petroleum product
manufacturer;
-
$40 million in a first lien senior term loan of a dental services
provider;
-
$30 million in first lien senior revolving and term loans of a
personalized gifts retailer;
-
$28 million in a subordinated loan of a commercial equipment finance
and leasing company; and
-
$27 million in first lien senior revolving and term loans and equity
of a data services provider for the property insurance industry.
(3) Computed as (a) annual stated interest rate or yield earned plus the
net annual amortization of original issue discount and market discount
earned on accruing debt and other income producing securities, divided
by (b) total debt and other income producing securities at fair value.
(4) Computed as (a) annual stated interest rate or yield earned plus the
net annual amortization of original issue discount and market discount
earned on accruing debt and other income producing securities, divided
by (b) total debt and other income producing securities at amortized
cost.
The fair value of Ares Capital’s portfolio investments at June 30, 2012
was $5.5 billion, including $4.9 billion in debt and other income
producing securities. These portfolio investments at fair value were
comprised of approximately 57% of senior secured debt securities (38% in
first lien assets and 19% in second lien assets), 20% of subordinated
certificates of the Senior Secured Loan Program (the proceeds of which
were applied to co-investments with GE in first lien senior secured
loans through the Senior Secured Loan Program), 8% of senior
subordinated debt securities, 5% of preferred equity securities, 9% of
other equity securities and 1% of collateralized loan obligations. As of
June 30, 2012, the weighted average yield of debt and other income
producing securities in Ares Capital’s portfolio at fair value was
11.6%(3) (11.7% at amortized cost(4)) and 72% of the Company’s
investments at fair value were in floating rate securities.
President Michael Arougheti commented, “We reported strong second
quarter core earnings per share of $0.40 per share well above the same
period a year ago of $0.33 per share and in excess of our second quarter
dividend of $0.37 per share. During the second quarter, our investment
activity rebounded from the first quarter’s levels, and our credit
quality continued to be strong as evidenced by a stable weighted average
portfolio grade and a decline in our non-accrual statistics.”
Mr. Arougheti continued, “Due to our performance coupled with our level
of undistributed taxable income, we declared an increase in our regular
quarterly dividend to $0.38 per share and an additional dividend of
$0.05 per share, both of which will be payable during the third quarter.”
PORTFOLIO QUALITY
Ares Capital Management LLC, our investment adviser, employs an
investment rating system to categorize our investments. In addition to
various risk management and monitoring tools, our investment adviser
grades the credit risk of all investments on a scale of 1 to 4 no less
frequently than quarterly. This system is intended primarily to reflect
the underlying risk of a portfolio investment relative to our initial
cost basis in respect of such portfolio investment (i.e., at the time of
acquisition), although it may also take into account under certain
circumstances the performance of the portfolio company’s business, the
collateral coverage of the investment and other relevant factors. Under
this system, investments with a grade of 4 involve the least amount of
risk to our initial cost basis. The trends and risk factors for this
investment since origination or acquisition are generally favorable,
which may include the performance of the portfolio company or a
potential exit. Investments graded 3 involve a level of risk to our
initial cost basis that is similar to the risk to our initial cost basis
at the time of origination or acquisition. This portfolio company is
generally performing as expected and the risk factors to our ability to
ultimately recoup the cost of our investment are neutral to favorable.
All investments or acquired investments in new portfolio companies are
initially assessed a grade of 3. Investments graded 2 indicate that the
risk to our ability to recoup the initial cost basis of such investment
has increased materially since origination or acquisition, including as
a result of factors such as declining performance and non-compliance
with debt covenants; however, payments are generally not more than
120 days past due. An investment grade of 1 indicates that the risk to
our ability to recoup the initial cost basis of such investment has
substantially increased since origination or acquisition, and the
portfolio company likely has materially declining performance. For debt
investments with an investment grade of 1, most or all of the debt
covenants are out of compliance and payments are substantially
delinquent. For investments graded 1, it is anticipated that we will not
recoup our initial cost basis and may realize a substantial loss of our
initial cost basis upon exit. For investments graded 1 or 2, our
investment adviser enhances its level of scrutiny over the monitoring of
such portfolio company. Our investment adviser grades the investments in
our portfolio at least each quarter and it is possible that the grade of
certain of these portfolio investments may be reduced or increased over
time.
As of June 30, 2012, the weighted average grade of the investments in
our portfolio at fair value was 3.0. Also, as of June 30, 2012, 2.3% of
the investments in our portfolio at amortized cost (or 0.7% at fair
value) were on non accrual status.
LIQUIDITY AND CAPITAL RESOURCES
As of June 30, 2012, Ares Capital had $101 million in cash and cash
equivalents and $2.3 billion in aggregate principal amount of
outstanding debt ($2.2 billion in carrying value). Subject to leverage
and borrowing base restrictions, Ares Capital had approximately $884
million available for additional borrowings under its existing credit
facilities as of June 30, 2012.
In May 2012, Ares Capital amended its revolving credit facility (the
“Revolving Credit Facility”) to, among other things, (i) increase the
commitment size of the facility from $810 million to $900 million,
(ii) extend the maturity date from January 22, 2013 to May 4, 2016,
(iii) extend the expiration of the revolving period from January 22,
2013 to May 4, 2015, (iv) reduce the stated interest rate by replacing
the pricing grid with an applicable spread over LIBOR of 2.25% (with no
floor) and an applicable spread over “base rate” of 1.25% (with no
floor) and (v) reduce the commitment fee to 0.375% for any unused
portion of the Revolving Credit Facility.
In June 2012, Ares Capital, through its consolidated subsidiary, Ares
Capital CP Funding LLC (“Ares Capital CP”), amended its revolving
funding facility (the “Revolving Funding Facility”) to, among other
things, (i) increase the commitment size of the facility from $500
million to $580 million, (ii) add a feature that allows, under certain
circumstances, for an increase in the size of the facility to a maximum
of $865 million, (iii) extend the stated maturity date from January 18,
2017 to April 18, 2017 and (iv) extend the reinvestment period from
January 18, 2015 to April 18, 2015.
In June 2012, Ares Capital repaid in full the $60 million aggregate
principal amount outstanding of asset-backed notes issued under its 2006
debt securitization (the “Debt Securitization”) and terminated or
discharged the agreements governing the Debt Securitization.
SECOND QUARTER 2012 DIVIDEND
For the three months ended June 30, 2012, Ares Capital declared a
dividend on May 8, 2012 of $0.37 per share for a total of approximately
$82 million. The record date was June 15, 2012 and the dividend was paid
on June 29, 2012.
RECENT DEVELOPMENTS
In July 2012, pursuant to the terms of the amended Revolving Funding
Facility, we and Ares Capital CP received an increase in the commitments
under the Revolving Funding Facility of $40 million, bringing the total
commitments to $620 million.
From July 1, 2012 through August 3, 2012, we had made new investment
commitments of $299 million, of which $281 million were funded. Of these
new commitments, 70% were in first lien senior secured debt, 17% were
investments in subordinated certificates of the SSLP which were applied
to co-investments with GE in first lien senior secured loans, 10% were
in second lien senior secured debt and 3% were in other equity
securities. Of the $299 million of new investment commitments, 97% were
floating rate and 3% were non-interest bearing. The weighted average
yield of debt and other income producing securities funded during the
period at amortized cost was 10.4%. We may seek to syndicate a portion
of these new investment commitments to third parties, although there can
be no assurance that we will be able to do so.
From July 1, 2012 through August 3, 2012, we exited $144 million of
investment commitments. Of these investment commitments, 58% were first
lien senior secured debt, 39% were senior subordinated debt and 3% were
other equity securities. Of the $144 million of exited investment
commitments, 56% were floating rate investments, 39% were fixed rate
investments, 3% were non-interest bearing and 2% were investments on
non-accrual status. The weighted average yield of debt and other income
producing securities exited or repaid during the period at amortized
cost was 11.5%. On the $144 million of investment commitments exited
from July 1, 2012 through August 3, 2012, we recognized total net
realized gains of approximately $23 million.
In addition, as of August 3, 2012, we had an investment backlog and
pipeline of approximately $430 million and $570 million, respectively.
Investment backlog includes transactions for which a formal mandate,
letter of intent or a signed commitment have been issued, and therefore
we believe are likely to close. Investment pipeline includes
transactions where due diligence and analysis are in process, but no
formal mandate, letter of intent or signed commitment have been issued.
The consummation of any of the investments in this backlog and pipeline
depends upon, among other things, one or more of the following:
satisfactory completion of our due diligence investigation of the
prospective portfolio company, our acceptance of the terms and structure
of such investment and the execution and delivery of satisfactory
transaction documentation. In addition, we may syndicate a portion of
these investments to third parties. We cannot assure you that we will
make any of these investments or that we will syndicate any portion of
these investments.
WEBCAST / CONFERENCE CALL
Ares Capital will host a webcast/conference call on Tuesday, August 7,
2012, at 11:00 a.m. (ET) to discuss its financial results for the second
quarter ended June 30, 2012. PLEASE VISIT OUR WEBCAST LINK LOCATED ON
THE HOME PAGE OF THE INVESTOR RESOURCES SECTION OF OUR WEBSITE FOR A
SLIDE PRESENTATION THAT COMPLEMENTS THE EARNINGS CONFERENCE CALL.
All interested parties are invited to participate via telephone or the
live webcast, which will be hosted on a webcast link located on the Home
page of the Investor Resources section of our website at http://www.arescapitalcorp.com.
Please visit the website to test your connection before the webcast.
Domestic callers can access the conference call by dialing (877)
883-0383. International callers can access the conference call by
dialing +1 (412) 902-6506. All callers will need to enter the
Participant Elite Entry Number 4793442 followed by the # sign and
reference “Ares Capital Corporation” once connected with the operator.
All callers are asked to dial in 10-15 minutes prior to the call so that
name and company information can be collected. For interested parties,
an archived replay of the call will be available approximately one hour
after the end of the conference through August 22, 2012 to domestic
callers by dialing (877) 344-7529 and to international callers by
dialing +1 (412) 317-0088. For all replays, please reference conference
number 10015145. An archived replay will also be available on a webcast
link located on the Home page of the Investor Resources section of our
website.
ABOUT ARES CAPITAL CORPORATION
Ares Capital is a leading specialty finance company that provides
one-stop financing solutions to U.S. middle market companies and private
equity sponsors. The Company originates and invests in senior secured
loans, mezzanine debt and, to a lesser extent, equity investments
through its national direct origination platform. Ares Capital’s
investment objective is to generate both current income and capital
appreciation through debt and equity investments primarily in private
companies. Ares Capital has elected to be regulated as a business
development company, and is externally managed by a wholly owned
subsidiary of Ares Management LLC. Ares Management is a global
alternative asset manager and a SEC-registered investment adviser with
approximately $54 billion of committed capital under management as of
June 30, 2012. For more information, visit www.arescapitalcorp.com.
FORWARD-LOOKING STATEMENTS
Statements included herein or on the webcast/conference call may
constitute “forward-looking statements,” which relate to future events
or our future performance or financial condition. These statements are
not guarantees of future performance, condition or results and involve a
number of risks and uncertainties. Actual results and conditions may
differ materially from those in the forward-looking statements as a
result of a number of factors, including those described from time to
time in our filings with the Securities and Exchange Commission. Ares
Capital Corporation undertakes no duty to update any forward-looking
statements made herein or on the webcast/conference call.
AVAILABLE INFORMATION
Ares Capital Corporation’s filings with the Securities and Exchange
Commission, press releases, earnings releases and other financial
information are available on its website at www.arescapitalcorp.com.
The information on Ares Capital’s website is not deemed incorporated by
reference herein.
|
|
|
|
|
|
ARES CAPITAL CORPORATION AND SUBSIDIARIES
|
|
|
|
|
CONSOLIDATED BALANCE SHEET
|
|
|
|
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
As of
|
|
|
|
|
June 30, 2012
|
|
December 31, 2011
|
|
|
|
|
(unaudited)
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
Investments at fair value (amortized cost of $5,438,184 and
$5,108,663, respectively)
|
|
$
|
5,504,813
|
|
5,094,506
|
|
|
Cash and cash equivalents
|
|
101,265
|
|
120,782
|
|
|
Receivable for open trades
|
|
304
|
|
550
|
|
|
Interest receivable
|
|
101,135
|
|
99,078
|
|
|
Other assets
|
|
99,961
|
|
72,521
|
|
|
Total assets
|
|
$
|
5,807,478
|
|
$
|
5,387,437
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Debt
|
|
$
|
2,194,808
|
|
$
|
2,073,602
|
|
|
Management and incentive fees payable
|
|
98,202
|
|
92,496
|
|
|
Accounts payable and other liabilities
|
|
38,970
|
|
47,691
|
|
|
Interest and facility fees payable
|
|
28,999
|
|
26,383
|
|
|
Total liabilities
|
|
2,360,979
|
|
2,240,172
|
|
|
STOCKHOLDERS’ EQUITY
|
|
|
|
|
|
|
Common stock, par value $.001 per share, 400,000 common shares
authorized, 222,151 and 205,130 common shares issued and
outstanding, respectively
|
|
222
|
|
205
|
|
|
Capital in excess of par value
|
|
3,657,160
|
|
3,390,354
|
|
|
Accumulated overdistributed net investment income
|
|
(9,578
|
)
|
(10,449
|
)
|
|
Accumulated net realized loss on investments, foreign currency
transactions, extinguishment of debt and other assets
|
|
(267,934
|
)
|
(218,688
|
)
|
|
Net unrealized gain (loss) on investments
|
|
66,629
|
|
(14,157
|
)
|
|
Total stockholders’ equity
|
|
3,446,499
|
|
3,147,265
|
|
|
Total liabilities and stockholders’ equity
|
|
$
|
5,807,478
|
|
$
|
5,387,437
|
|
|
NET ASSETS PER SHARE
|
|
$
|
15.51
|
|
$
|
15.34
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ARES CAPITAL CORPORATION AND SUBSIDIARIES
|
|
|
|
|
|
|
|
CONSOLIDATED STATEMENT OF OPERATIONS
|
|
|
|
|
|
|
|
(in thousands, except per share data)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
For the six months ended
|
|
|
|
|
June 30, 2012
|
|
|
June 30, 2011
|
|
|
June 30, 2012
|
|
|
June 30, 2011
|
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
INVESTMENT INCOME:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest from investments
|
|
$
|
138,042
|
|
|
$
|
111,314
|
|
|
$
|
270,927
|
|
|
$
|
221,927
|
|
|
Capital structuring service fees
|
|
21,267
|
|
|
20,154
|
|
|
38,927
|
|
|
31,112
|
|
|
Dividend income
|
|
8,938
|
|
|
6,677
|
|
|
18,157
|
|
|
15,468
|
|
|
Management and other fees
|
|
4,512
|
|
|
4,601
|
|
|
9,444
|
|
|
8,050
|
|
|
Other income
|
|
4,796
|
|
|
1,561
|
|
|
7,838
|
|
|
3,441
|
|
|
Total investment income
|
|
177,555
|
|
|
144,307
|
|
|
345,293
|
|
|
279,998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest and credit facility fees
|
|
35,018
|
|
|
28,593
|
|
|
67,794
|
|
|
58,768
|
|
|
Incentive fees
|
|
22,733
|
|
|
41,746
|
|
|
49,119
|
|
|
72,687
|
|
|
Base management fees
|
|
20,811
|
|
|
17,414
|
|
|
40,797
|
|
|
34,144
|
|
|
Professional fees
|
|
3,548
|
|
|
5,514
|
|
|
7,234
|
|
|
8,146
|
|
|
Administrative fees
|
|
2,217
|
|
|
2,459
|
|
|
4,537
|
|
|
4,884
|
|
|
Other general and administrative
|
|
2,474
|
|
|
2,911
|
|
|
5,275
|
|
|
5,829
|
|
|
Total expenses
|
|
86,801
|
|
|
98,637
|
|
|
174,756
|
|
|
184,458
|
|
|
NET INVESTMENT INCOME BEFORE INCOME TAXES
|
|
90,754
|
|
|
45,670
|
|
|
170,537
|
|
|
95,540
|
|
|
Income tax expense, including excise tax
|
|
2,853
|
|
|
1,907
|
|
|
5,598
|
|
|
3,954
|
|
|
NET INVESTMENT INCOME
|
|
87,901
|
|
|
43,763
|
|
|
164,939
|
|
|
91,586
|
|
|
REALIZED AND UNREALIZED GAINS (LOSSES)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FROM INVESTMENTS:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net realized gains (losses)
|
|
(38,897
|
)
|
|
(6,374
|
)
|
|
(46,568
|
)
|
|
56,195
|
|
|
Net unrealized gains
|
|
44,606
|
|
|
9,992
|
|
|
80,786
|
|
|
32,226
|
|
|
Net realized and unrealized gains from investments
|
|
5,709
|
|
|
3,618
|
|
|
34,218
|
|
|
88,421
|
|
|
REALIZED LOSS ON EXTINGUISHMENT OF DEBT
|
|
(2,678
|
)
|
|
(10,458
|
)
|
|
(2,678
|
)
|
|
(19,318
|
)
|
|
NET INCREASE IN STOCKHOLDERS’ EQUITY RESULTING FROM OPERATIONS
|
|
$
|
90,932
|
|
|
$
|
36,923
|
|
|
$
|
196,479
|
|
|
$
|
160,689
|
|
|
BASIC AND DILUTED EARNINGS PER SHARE OF COMMON SHARE
|
|
$
|
0.41
|
|
|
$
|
0.18
|
|
|
$
|
0.90
|
|
|
$
|
0.79
|
|
|
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING - BASIC AND
DILUTED
|
|
221,878
|
|
|
204,752
|
|
|
219,461
|
|
|
204,586
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SCHEDULE 1
Reconciliations of basic and diluted Core EPS to basic and diluted
GAAP EPS
Reconciliations of basic and diluted Core EPS to basic and diluted GAAP
EPS, the most directly comparable GAAP financial measure, for the three
months ended June 30, 2012 and 2011 are provided below.
|
|
|
For the three months ended June 30,
|
|
|
|
|
2012
|
|
|
2011
|
|
|
|
|
(unaudited)
|
|
|
(unaudited)
|
|
|
Basic and diluted Core EPS(1)
|
|
$
|
0.40
|
|
|
$
|
0.33
|
|
|
Net realized and unrealized gains (losses)
|
|
0.01
|
|
|
(0.03
|
)
|
|
Incentive fees attributed to net realized and unrealized gains and
losses
|
|
—
|
|
|
(0.12
|
)
|
|
Income tax expense related to realized gains
|
|
—
|
|
|
—
|
|
|
Basic and diluted GAAP EPS
|
|
$
|
0.41
|
|
|
$
|
0.18
|
|
(1) 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 realized and unrealized gains and losses,
any incentive fees attributable to such net realized and unrealized
gains and losses and any income taxes related to such realized gains.
Basic and diluted GAAP EPS 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.
Ares Capital Corporation
Carl Drake, 888-818-5298
Source: Ares Capital Corporation
