SOURCE: Technology Investment Capital Corp.

March 02, 2006 17:42 ET

/ CORRECTION - TICC Declares First Quarter 2006 Dividend of $0.30 per Share and Reports Earnings of $0.37 and $1.21 per Share for the Quarter and the Year Ended December 31, 2005

GREENWICH, CT -- (MARKET WIRE) -- March 2, 2006 -- In the news release, "TICC Declares First Quarter 2006 Dividend of $0.30 per Share and Reports Earnings of $0.37 and $1.21 per Share for the Quarter and the Year Ended December 31, 2005," issued earlier today by Technology Investment Capital Corp (NASDAQ: TICC), we are advised by the company that readers should disregard the previous version and replace the release with the following corrected version due to revisions. Complete corrected text follows.

TICC Declares First Quarter 2006 Dividend of $0.30 per Share and Reports Earnings of $0.37 and $1.21 per Share for the Quarter and the Year Ended December 31, 2005

Record Quarterly Net Increase in Stockholders' Equity Resulting From Operations

GREENWICH, CT -- 03/02/2006 -- Technology Investment Capital Corp. (NASDAQ: TICC) announced today that its Board of Directors has declared a dividend of $0.30 per share for the first quarter of 2006.

The dividend is payable as follows:

--  Payable Date: March 31, 2006
--  Record Date: March 10, 2006
    

In addition, TICC announced its financial results for the quarter and year ended December 31, 2005.

HIGHLIGHTS

--  We had a net increase in stockholders' equity resulting from
    operations of approximately $5.5 million or $0.37 per share for the fourth
    quarter of 2005.  The net increase in stockholders' equity resulting from
    operations consisted of net investment income of $3.8 million or
    approximately $0.26 per share, and net realized and unrealized gains of
    $1.7 million, or approximately $0.11 per share.
    
--  For the year ended December 31, 2005 we had a net increase in
    stockholders' equity resulting from operations of approximately $16.3
    million or $1.21 per share.  The net increase in stockholders' equity
    resulting from operations consisted of net investment income of $14.4
    million, or approximately $1.07 per share, and net realized and unrealized
    gains of $1.9 million or approximately $0.14 per share.
    
--  We closed one transaction during the fourth quarter of 2005 and
    realized capital gains in two portfolio companies:
    
    -- Optimus Corporation: $7.5 million in senior unsecured notes with
       warrants.
    -- Innovation Interactive: realized a gain on the sale of warrants of
       approximately $966,000.
    -- Advanced Aesthetics: realized a gain on the sale of warrants of
       approximately $773,000.
--  We funded and committed approximately $168.5 million in 17
    transactions during 2005.
--  On December 14, 2005, we announced the closing of a public offering of
    common stock in which a total of 5,750,000 shares of common stock were
    sold.  We raised approximately $78.8 million in net proceeds in the public
    offering, after deducting underwriting discounts and commission and
    offering expenses.
--  We declared a special dividend of $0.12 per share during the fourth
    quarter of 2005 payable on January 18, 2006 to holders of record as of
    December 30, 2005.
--  At December 31, 2005, the weighted average yield on our debt
    investments excluding cash and cash equivalents was approximately 10.9%.
--  At December 31, 2005, our NAV per share was $13.77.
    

SUBSEQUENT EVENTS

-- To date, we have closed 3 additional transactions during 2006, totaling
   $25 million:
    -- On January 23, 2006, we announced a $7 million investment in senior
       secured notes of one of the largest Internet domain registrars and
       on February 16, 2006 we purchased an additional $3 million in senior
       secured notes of this company.
    -- On February 21, 2006, we announced a $15 million transaction with
       MortgageIT, Inc. consisting of senior secured notes.
We will host a conference call to discuss our annual and fourth quarter results on, March 2nd at 10:00 AM EST. Please call 877-407-8031 to participate. A replay of the conference call will be available for approximately 30 days. The replay number is 877-660-6853, the account number is 286 and the access code is 192969.

The following financial statements are unaudited and without footnotes. Readers who would like additional information should obtain our Form 10-K for the period ended December 31, 2005 when it becomes available, and subsequent reports on Form 10-Q as they are filed.

About Technology Investment Capital Corp.

We are a publicly-traded business development company principally engaged in providing capital to small to mid-size technology-related companies. While the structures of our financings vary, we look to invest primarily in the debt and equity of established technology-related businesses. Companies interested in learning more about financing opportunities should contact Barry Osherow at (203) 661-9572 or visit our website at www.ticc.com.

Forward-Looking Statements

This press release contains forward-looking statements subject to the inherent uncertainties in predicting future results and conditions. Any statements that are not statements of historical fact (including statements containing the words "believes," "plans," "anticipates," "expects," "estimates" and similar expressions) should also be considered to be forward-looking statements. Certain factors could cause actual results and conditions to differ materially from those projected in these forward- looking statements. These factors are identified from time to time in our filings with the Securities and Exchange Commission. We undertake no obligation to update such statements to reflect subsequent events.

TECHNOLOGY INVESTMENT CAPITAL CORP.
BALANCE SHEET (PRELIMINARY & UNAUDITED)


                                               December 31,    December 31,
                                                  2005             2004
                                              ------------    ------------
ASSETS
  Investments, at fair value (cost:
   $211,218,202 @ 12/31/05; $82,124,730
   @ 12/31/04)                                $211,398,202    $ 82,124,730
  Cash and cash equivalents                     55,811,584      57,317,398
  Interest receivable - debt investments         2,022,660         489,431
  Interest receivable - cash and cash
   equivalents                                       3,271           7,538
  Securities sold not settled                      773,486               0
  Prepaid expenses                                  72,740         102,696
  Other assets                                      25,875         460,666
                                              ------------    ------------
TOTAL ASSETS                                  $270,107,818    $140,502,459
                                              ============    ============

                  LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
  Investment advisory fee payable to
   affiliate                                  $  1,498,813    $    697,022
  Dividends payable                              2,316,528               0
  Accrued expenses                                 187,001         243,900
  Accrued offering expenses                        200,000         300,000
                                              ------------    ------------
    Total Liabilities                            4,202,342       1,240,922
                                              ------------    ------------

STOCKHOLDERS' EQUITY
  Common stock, $0.01 par value, 100,000,000
   shares authorized, and 19,304,401 and
   10,157,848 issued and outstanding,
   respectively                                    193,044         101,578
  Capital in excess of par value               263,885,376     139,410,302
  Unrealized appreciation on investments           180,000               0
  Accumulated realized gains on investments      1,739,015               0
  Accumulated net investment loss                  (91,959)       (250,343)
                                              ------------    ------------
      Total Stockholders' Equity               265,905,476     139,261,537
                                              ------------    ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $270,107,818    $140,502,459
                                              ============    ============
Net asset value per share                     $      13.77    $      13.71


TECHNOLOGY INVESTMENT CAPITAL CORP.
SCHEDULE OF INVESTMENTS (PRELIMINARY & UNAUDITED)

                                        PRINCIPAL                 FAIR
   COMPANY    INDUSTRY     INVESTMENT     AMOUNT        COST       VALUE
------------ ----------  -------------- ----------- ----------- -----------
Questia      digital     senior secured $12,039,331 $12,039,331 $12,039,331
Media, Inc.   media       notes(3)(4)
                          (11%, due Jan.
                          28, 2009)

MortgageIT,  financial   senior secured $15,000,000  15,000,000  15,000,000
 Inc.         services    notes(5.5%,
                          due March 29,
                          2007)

Advanced     medical     senior secured $10,000,000  10,000,000  10,000,000
 Aesthetics   services    notes(5) (12%,
 Institute                due March 31,
                          2009)

Endurance    webhosting  senior secured $13,000,000  12,729,661  12,729,661
 International            notes(4)(5)(6)
 Group, Inc.             (10.04%, due
                          July 23, 2009)

                         convertible                    345,000     345,000
                          preferred
                          stock(9)

Direct       internet    senior secured $ 3,220,000   3,158,305   3,158,305
 Revenue,     advertising secured notes
 LLC                      (6)(7) (12%,
                          due Aug. 19,
                          2007)

                         warrants to                    240,000           0
                          purchase common
                          units(9)

Avue         software    warrants to                     13,000      13,000
 Technologies             purchase common
 Corp.                    stock(9)

TrenStar     logistics   senior secured $17,074,493  17,074,493  17,074,493
 Inc.         technology  notes(3)(5)
                          (10.03%, due
                          Sept. 1, 2009)

                         warrants to                          -           -
                          purchase
                          convertible
                          preferred
                          stock(9)

3001, Inc.   geospatial  senior         $10,000,000  10,000,000  10,000,000
              imaging     unsecured notes
                          (5)(10.0%, due
                          Oct. 1, 2010)

                         preferred                    2,000,000   2,000,000
                          stock(8)(9)

                         common                       1,000,000   1,000,000
                          stock(8)(9)

Segovia,     satellite   senior secured $17,000,000  16,786,198  16,786,198
 Inc.         communi-    notes(5)(6)
              cations     (10.0%, due
                          Feb. 8, 2010)

                         warrants to                    260,000     680,000
                          purchase common
                          stock(9)

WhittmanHart, IT         senior secured $ 5,000,000   4,924,350   4,924,350
 Inc.         consulting  notes(4)(5)
                          (10.25%, due
                          March 23, 2010)

                         warrants to                          -           -
                          purchase common
                          stock(9)

                         preferred stock(9)             476,000     476,000

                         warrants to                     24,000      24,000
                          purchase
                          preferred
                          stock(9)

CrystalTech  webhosting  senior secured $ 8,000,000   8,000,000   8,000,000
 WebHosting,              notes(5)(12.0%,
 Inc                      due March 10,
                          2010)

Falcon       satellite   senior         $ 6,000,000   6,000,000   6,000,000
 Communic-    communic-   unsecured
 ations       ations      notes(5)(10.0%,
                          due March 31,
                          2011)

                         common stock(9)              2,000,000   2,000,000

Climax       software    senior secured $ 5,000,000   4,924,350   4,924,350
 Group, Inc.              notes(5)(6)
                          (14.0%, due
                          April 30,
                          2008)

                         warrants to                    100,000     100,000
                          purchase common
                          stock(9)

Willow CSN   virtual     senior secured $13,500,000  13,320,068  13,320,068
 Inc.         workforce   notes(5)(6)(10.5%,
              services    due June 30,
                          2010)

                         warrants to                    200,000     200,000
                          purchase
                          convertible
                          preferred stock(9)

NetQuote,    web-based   senior secured $15,000,000  15,000,000  15,000,000
 Inc.         services    notes(5)(6)(12.5%,
                          due August 16,
                          2010)

StayOnline,  Internet    senior secured $15,000,000  14,662,937  14,662,937
 Inc.         services    notes(5)(6)(10.5%,
                          due September 2,
                          2010)

                         preferred stock(9)             360,588     360,588

GenuTec      software    senior secured $15,000,000  14,929,271  14,929,271
 Business                 notes(5)(6)(9.0%,
 Solutions                due September
                          16, 2010)

                         warrants to                     75,000      75,000
                          purchase common
                          stock(9)

Mortgagebot  financial   senior secured $11,000,000  11,000,000  11,000,000
 Acquisitions services    notes(5)(10.0%,
 , LLC                   due October 29,
                          2010)

Optimus      IT          senior         $14,500,000  14,200,000  14,200,000
 Corp.        consulting  unsecured
                          notes(5)(14.0%,
                          due September
                          23, 2010)

                         warrants to                    300,000     300,000
                          purchase common
                          stock(9)

Total
 investments                                      $211,218,202 $211,398,202
                                                  ============ ============

(1)  We do not "control" and are not an "affiliate" of any of our portfolio
     companies, each as defined in the Investment Company Act of 1940 (the
     "1940 Act"). In general, under the 1940 Act, we would be presumed to
     "control" a portfolio company if we owned 25% or more of its voting
     securities and would be an "affiliate" of a portfolio company if we
     owned 5% or more of its voting securities.
(2)  Fair value is determined in good faith by the Board of Directors of
     the Company.
(3)  Investment includes payment-in-kind interest.
(4)  Transaction also includes a commitment for additional notes and
     warrants upon satisfaction of certain specified conditions.
(5)  Notes bear interest at variable rates.
(6)  Cost and fair value reflect accretion of original issue discount.
(7)  Cost and fair value reflect repayment of principal.
(8)  Preferred stock and common stock held by limited liability company, in
     which we own membership interests.
(9)  Non-income producing at the relevant period end.
(10) As a percentage of net assets at December 31, 2005, investments at
     fair value are categorized as follows: senior secured notes (65.3%),
     senior unsecured notes (11.4%), preferred stock (1.2%), common stock
    (1.1%) and warrants to purchase equity securities (0.5%).
(11) Aggregate gross unrealized appreciation for federal income tax
     purposes is $420,000; aggregate gross unrealized depreciation for
     federal income tax purposes is $240,000. Net unrealized appreciation
     is $180,000 based upon a tax cost basis of $211,218,202.


TECHNOLOGY INVESTMENT CAPITAL CORP.
STATEMENT OF OPERATIONS (PRELIMINARY & UNAUDITED)

                              Three       Three
                              Months      Months       Year        Year
                              Ended       Ended       Ended       Ended
                             December    December    December    December
                             31, 2005    31, 2004    31, 2005    31, 2004
                            ----------  ----------  ----------  ----------
INVESTMENT INCOME
 Interest income
  - debt investments        $5,579,417  $2,097,101 $17,162,052  $4,550,566
 Interest income
  - cash and cash
  equivalents                  169,985     266,479   1,022,852   1,092,274
 Other income                  603,264     523,397   3,615,633   1,745,318
                            ----------  ----------  ----------  ----------
  Total Investment Income    6,352,666   2,886,977  21,800,537   7,388,158
                            ----------  ----------  ----------  ----------
EXPENSES
 Salaries and benefits         105,471      54,780     724,784     207,698
 Investment advisory fees    1,584,408     696,563   4,345,637   2,773,849
 Professional fees             178,347     233,620   1,102,255     587,216
 Insurance                      23,542      23,170      98,860      83,450
 Directors' fees                32,250      38,250     135,000     141,000
 Transfer agent and
 custodian fees                 22,505      22,900      93,906      86,087
 Interest expense              454,642           0     546,516           0
 General and administrative    142,847      30,793     368,457     145,341
                            ----------  ----------  ----------  ----------
  Total Expenses             2,544,012   1,100,076   7,415,415   4,024,641
                            ----------  ----------  ----------  ----------
NET INVESTMENT INCOME       $3,808,654  $1,786,901 $14,385,122  $3,363,517
                            ==========  ==========  ==========  ==========
NET UNREALIZED
 APPRECIATION/
(DEPRECIATION)ON
 INVESTMENTS                $  (59,000) $        0  $  180,000  $        0
                            ==========  ==========  ==========  ==========
NET REALIZED
 GAINS ON INVESTMENTS       $1,739,015  $        0  $1,739,015  $        0
                            ==========  ==========  ==========  ==========
NET INCREASE IN
 STOCKHOLDERS' EQUITY
 RESULTING FROM OPERATIONS  $5,488,669  $1,786,901 $16,304,137  $3,363,517
                            ==========  ==========  ==========  ==========
Net increase in
 stockholders' equity
 resulting from operations
 per common share:
Basic and Diluted           $     0.37  $     0.18  $     1.21  $     0.33
Weighted average shares
 of common stock
 outstanding:
Basic and Diluted           14,653,320  10,125,759  13,459,343  10,093,660
TECHNOLOGY INVESTMENT CAPITAL CORP.
FINANCIAL HIGHLIGHTS (PRELIMINARY & UNAUDITED)



                                                                PERIOD
                                                            JULY 21, 2003
                                                             (INCEPTION)
                                YEAR ENDED     YEAR ENDED      THROUGH
                               DECEMBER 31,   DECEMBER 31,   DECEMBER 31,
                                   2005           2004           2003
                               -----------    -----------    -----------
Per Share Data
  Net asset value at
   beginning of period         $     13.71    $     13.80    $     15.00
  Offering costs and
   underwriters discount             (0.14)          0.00          (1.14)
  Net investment income (loss)        1.07           0.33          (0.06)
  Net realized and unrealized gains   0.14           0.01(1)        0.00
  Distributions from net investment
   income                            (1.01)         (0.33)          0.00
  Tax return of capital
   distribution                       0.00          (0.10)          0.00
                               -----------    -----------    -----------
  Net asset value at end of
   period                      $     13.77    $     13.71    $     13.80
                               ===========    ===========    ===========
  Per share market value at
   beginning of period         $     15.01    $     15.55    $     15.00(2)
  Per share market value at end
   of period                         15.10          15.01          15.55
  Total return (3)                    7.33%         (0.71)%         3.67%
  Shares outstanding at end of
   period                       19,304,401     10,157,848     10,000,100

Ratios/Supplemental Data
  Net assets at end of period
   ('000s)                     $   265,905    $   139,262    $   137,970
  Average net assets ('000s)       184,715        137,568         28,703
  Ratio of expenses to average
   net assets                          4.0%           2.9%           2.4%*
  Ratio of net investment income
   (loss) to average net assets        7.8%           2.4%          (2.0)%*


          *  Not annualized.
         (1) Represents rounding adjustment to reconcile change in net
             asset value per share; there were no actual realized or
             unrealized gains or losses for the periods presented.
         (2) Represents initial public offering price.
         (3) Total return equals the increase/decrease of the ending
             market value per share, plus dividends, divided by the
             beginning market value per share. The return for 2003 has not
             been annualized.

Contact Information

  • Patrick Conroy
    203-983-5282