Ares Capital Corporation Declares Fourth Quarter 2016 Dividend Of $0.38 Per Share And Announces September 30, 2016 Financial Results

Ares Capital Corporation ("Ares Capital") (NASDAQ:ARCC) announced that its Board of Directors has declared a fourth quarter dividend of $0.38 per share, payable on December 30, 2016 to stockholders of record as of December 15, 2016.

SEPTEMBER 30, 2016 FINANCIAL RESULTS

Ares Capital also announced financial results for its third quarter ended September 30, 2016.

HIGHLIGHTS

Financial
    Q3-16 Q3-15

 
Total Per Total Per

(dollar amounts in millions, except per share data)
Amount Share(1) Amount Share(1)
Core EPS(2) $ 0.43 $ 0.41
Net investment income $ 137.7 $ 0.44 $ 130.5 $ 0.42
Net realized gains $ 20.5 $ 0.06 $ 47.7 $ 0.15
Net unrealized losses $ (48.0 ) $ (0.15 ) $ (61.3 ) $ (0.20 )
GAAP net income $ 110.2 $ 0.35 $ 116.9 $ 0.37
Dividends declared and payable $ 0.38 $ 0.38
 
As of
(dollar amounts in millions, except per share data) September 30, 2016 September 30, 2015 December 31, 2015
Portfolio investments at fair value $ 8,804.7 $ 8,692.5 $ 9,055.5
Total assets $ 9,135.9 $ 9,173.0 $ 9,506.8
Stockholders' equity $ 5,209.0 $ 5,279.8 $ 5,173.3
Net assets per share $ 16.59 $ 16.79 $ 16.46

______________________________
(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 professional fees and other costs related to the proposed acquisition of American Capital, Ltd. (the "American Capital Acquisition"), 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 realized gains and losses. 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
(dollar amounts in millions)     Q3-16 Q3-15 Q4-15
Portfolio Activity During the Period:
Gross commitments $ 1,529.1 $ 1,523.9 $ 972.2
Exits of commitments $ 1,499.2 $ 1,340.5 $ 569.1
 
Portfolio as of the End of the Period:
Number of portfolio company investments 215 216 218

Weighted average yield of debt and other income

producing securities(3):
At amortized cost 9.7 % 10.3 % 10.1 %
At fair value 9.8 % 10.4 % 10.3 %
Weighted average yield on total investments(4):
At amortized cost 8.7 % 9.4 % 9.1 %
At fair value 8.8 % 9.3 % 9.2 %

______________________________
(3)   Weighted average yield of debt and other income producing securities is computed as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities divided by (b) the total accruing debt and other income producing securities at amortized cost or at fair value as applicable.
 
(4) Weighted average yield on total investments is calculated as (a) the annual stated interest rate or yield earned plus the net annual amortization of original issue discount and market discount or premium earned on accruing debt and other income producing securities divided by (b) the total investments at amortized cost or at fair value as applicable.
 

THIRD QUARTER 2016 OPERATING RESULTS

For the third quarter of 2016, Ares Capital reported GAAP net income of $110.2 million or $0.35 per share (basic and diluted), Core EPS(2) of $0.43 per share (basic and diluted), net investment income of $137.7 million, or $0.44 per share (basic and diluted), and net realized and unrealized losses of $27.5 million or $0.09 per share (basic and diluted).

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