Q2 2024 Ares Capital Corp Earnings Call Transcript
Key Points
- Ares Capital Corp (ARCC) reported strong core earnings of $0.61 per share, a 3% increase from the prior quarter and 5% from the prior year.
- The company achieved a record NAV per share of $19.61, up 6% year over year.
- Ares Capital Corp (ARCC) declared a third-quarter 2024 dividend of $0.48 per share, marking the 15th consecutive year of stable or increasing regular quarterly dividends.
- The portfolio companies showed strong performance with a 12% LTM EBITDA growth, the highest in four years.
- The company maintained a strong liquidity position with nearly $5.5 billion of total available liquidity.
- GAAP net income per share decreased to $0.52 for the second quarter of 2024 from $0.76 in the prior quarter.
- There was a notable uptick in tax expense during the quarter, largely driven by capital gains taxes associated with the exit of an investment in Heelstone.
- The weighted average yield on debt and other income-producing securities at amortized cost slightly decreased from 12.4% to 12.2%.
- The company faced a public situation with Pluralsight, which resulted in a markdown and hit to nonaccruals.
- Interest and credit facility fees increased due to higher leverage during the quarter to fund portfolio growth.
Good morning. Welcome to Ares Capital Corporation's second quarter June 30, 2024, earnings conference call. At this time, all participants are in a listen only mode. As a reminder, this conference is being recorded on Tuesday, July 30, 2024.
I will now turn the call over to Mr. John Stilmar, partner of Ares's Public Markets Investor Relations. Please go ahead.
Thank you very much, and let me start with some important reminders. Comments made during the course of this conference call and webcast, as well as the accompanying documents contain forward-looking statements and are subject to risks and uncertainties. Actual results could differ materially from those expressed in such forward-looking statements for any reason, including those listed in its SEC filing. Ares Capital Corporation assumes no obligation to update any such forward-looking statements.
Please also note that past performance or market information is not a guarantee of future
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