-- Payable Date: December 31, 2007
-- Record Date: December 10, 2007
In addition, TICC announced today its financial results for the quarter
ended September 30, 2007.
HIGHLIGHTS
-- For the three months ended September 30, 2007, we recorded total
investment income of approximately $11.0 million, compared to
approximately $8.8 million for the third quarter of 2006.
-- For the nine months ended September 30, 2007, we recorded approximately
$31.6 million of total investment income and $20.3 million of net
investment income compared to $24.5 million of total investment income
and $17.7 million of net investment income for the same period in 2006,
an increase of approximately 29.0% and 14.5%, respectively.
-- Net investment income for the third quarter of 2007 was approximately
$6.7 million or $0.32 per share, up 9.4% from the same quarter in 2006.
However, as a result of unrealized depreciation on investments of
approximately $11.9 million, we had a net decrease in net assets
resulting from operations of approximately $0.24 per share for the
third quarter of 2007.
-- We recorded unrealized depreciation on our debt investments in
Falcon Communications, Inc. ($7.0 million) and GenuTec Business
Solutions, Inc. ($4.0 million), based primarily upon the operating
performance and financial condition of these companies. Our debt
investment in Falcon was placed on non-accrual status as of
September 30, 2007. GenuTec has been on non-accrual since March 31,
2007.
-- Investment originations for the third quarter amounted to approximately
$66.8 million, and consisted of 6 investments in new portfolio
companies and additional debt investments in 2 existing portfolio
companies. The significant investments were as follows:
-- $8.0 million investment in senior secured notes issued by Hyland
Software, Inc.
-- $15.0 million investment in senior secured notes issued by WAICCS
Las Vegas, LLC
-- $10.0 million investment in senior secured notes issued by Empire
Scaffold, LLC. In connection with this investment, we also
committed to invest in an additional $3.0 million in senior notes
as Empire Scaffold achieves certain milestones.
-- $11.3 million investment in senior secured notes issued by
Intergraph Corporation
-- $10.0 million investment in senior secured notes issued by Integra
Telecomm, Inc.
-- $8.5 million additional investment in senior secured notes issued
by Segovia, Inc., an existing portfolio company
-- At September 30, 2007, the weighted average yield of our debt
investments (excluding cash equivalents and assuming no interest
income on the investments placed on non-accrual status) was
approximately 11.6%.
-- Expenses for the quarter were approximately $4.3 million, including
approximately $1.9 million in investment advisory fees and
approximately $1.7 million in interest expense, reflecting outstanding
borrowings under our credit facility.
-- At September 30, 2007, approximately $138.5 million was outstanding
under our credit facility.
-- As of November 6, 2007, we had approximately $146.5 million
outstanding under our credit facility.
-- On July 13, 2007, we closed on a public offering of 1,437,500 shares of
common stock (including the underwriter's over-allotment option),
resulting in approximately $21.6 million in net proceeds which was used
to repay indebtedness owed under our current revolving credit facility.
SUBSEQUENT EVENTS
-- On October 1, 2007, we announced that we intend to change our name to
TICC Capital Corp. Once the name change becomes effective, we will no
longer maintain a policy to invest, under normal circumstances, at least
80% of the value of our net assets (including the amount of any borrowings
for investment purposes) in technology-related companies. The name change
is expected to become effective on or about December 3, 2007.
-- On October 15, 2007, we completed a $15.0 million investment in senior
secured notes issued by GXS Worldwide, Inc.
-- On October 25, 2007, we completed a $7.2 million investment in senior
unsecured notes issued by an existing portfolio company. At the same time,
our $3 million equity investment in this company was repurchased, resulting
in a realized capital gain of approximately $627,000.
-- On October 25, 2007, the Board of Directors declared a dividend of
$0.36 per share for the fourth quarter, payable on December 31, 2007 to
shareholders of record as of December 10, 2007.
We will host a conference call to discuss our third quarter results today,
Wednesday, November 7th 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 260374.
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, 2006, Form 10-Q for the quarter ended
September 30, 2007 and subsequent reports on Form 10-Q as they are filed,
each of which are available on the SEC's website at www.sec.gov.
TECHNOLOGY INVESTMENT CAPITAL CORP.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
September 30,
2007 December 31,
(unaudited) 2006
------------- --------------
ASSETS
Investments, at fair value (cost:
$400,871,602 @ 9/30/07; $325,660,997
@ 12/31/06)
Non-affiliated/non-control investments
($378,734,843 @ 9/30/07; $303,409,875
@ 12/31/06) $ 354,522,038 $ 303,933,738
Control investments (cost: $22,136,759
@ 9/30/07; $22,251,122 @ 12/31/06) 25,136,759 22,251,122
------------- --------------
Total investments at fair value 379,658,797 326,184,860
------------- --------------
Cash and cash equivalents 34,144,527 5,181,512
Interest receivable 3,162,271 3,216,305
Prepaid expenses and other assets 241,789 237,069
------------- --------------
Total assets $ 417,207,384 $ 334,819,746
============= ==============
LIABILITIES
Investment advisory fee payable to
affiliate $ 1,917,260 $ 1,995,517
Dividends payable - 2,364,699
Securities purchased not settled 1,500,000 0
Accrued interest payable 338,467 458,507
Accrued expenses 571,474 165,678
Loans payable 138,500,000 58,500,000
------------- --------------
Total liabilities 142,827,201 63,484,401
------------- --------------
NET ASSETS
Common stock, $0.01 par value,
100,000,000 shares authorized, and
21,452,740 and 19,705,824 issued and
outstanding, respectively 214,527 197,058
Capital in excess of par value 296,194,754 269,909,732
Net unrealized appreciation
(depreciation) on investments (21,212,805) 523,863
Accumulated net realized gains on
investments 413,904 320,139
Distributions (in excess of) less than
investment income (1,230,197) 384,553
------------- --------------
Total net assets 274,380,183 271,335,345
------------- --------------
Total liabilities and net
assets $ 417,207,384 $ 334,819,746
============= ==============
Net asset value per common share $ 12.79 $ 13.77
TECHNOLOGY INVESTMENT CAPITAL CORP.
STATEMENTS OF OPERATIONS (unaudited)
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
September September September September
30, 2007 30, 2006 30, 2007 30, 2006
----------- ----------- ----------- -----------
INVESTMENT INCOME
From non-affiliated/
non-control
investments:
Interest income -
debt investments $ 9,551,803 $ 8,100,962 $ 26,904,246 $ 21,432,020
Interest income -
cash and cash
equivalents 278,002 108,659 502,551 555,433
Other income 348,114 399,359 1,653,826 2,294,118
------------ ------------- ------------ -------------
Total investment
income from non-
affiliated/
non-control
investments 10,177,919 8,608,980 29,060,623 24,281,571
------------ ------------- ------------ -------------
From control
investments:
Interest income -
debt investments 844,795 183,024 2,529,620 183,024
------------ ------------- ------------ -------------
Total investment
income from
control
investments 844,795 183,024 2,529,620 183,024
------------ ------------- ------------ -------------
Total investment
income 11,022,714 8,792,004 31,590,243 24,464,595
------------ ------------- ------------ -------------
EXPENSES
Compensation
expense 200,000 222,711 600,000 483,057
Investment
advisory fees 1,916,011 1,494,463 5,338,567 4,244,537
Professional fees 280,514 217,160 723,211 746,805
Interest expense 1,670,543 556,664 3,908,331 789,034
General and
administrative 234,713 159,523 714,060 468,946
------------ ------------- ------------ -------------
Total expenses 4,301,781 2,650,521 11,284,169 6,732,379
------------ ------------- ------------ -------------
Net investment
income 6,720,933 6,141,483 20,306,074 17,732,216
------------ ------------- ------------ -------------
Net change in
unrealized
appreciation or
depreciation on
investments (11,888,743) 308,896 (21,736,667) 909,308
------------ ------------- ------------ -------------
Net realized gains
on investments 0 309,210 93,765 245,598
------------ ------------- ------------ -------------
Net (decrease)
increase in net
assets resulting
from operations $ (5,167,810) $ 6,759,589 $ (1,336,828) $ 18,887,122
============ ============= ============ =============
Net increase in net
assets resulting
from net
investment income
per common share:
Basic and Diluted $ 0.32 $ 0.31 $ 1.00 $ 0.91
Net (decrease)
increase in net
assets resulting
from operations
per common share:
Basic and Diluted $ (0.24) $ 0.35 $ (0.07) $ 0.97
Weighted average
shares of common
stock outstanding:
Basic and Diluted 21,160,613 19,537,811 20,240,436 19,448,624
TECHNOLOGY INVESTMENT CAPITAL CORP.
FINANCIAL HIGHLIGHTS (UNAUDITED)
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
September September September September
30, 2007 30, 2006 30, 2007 30, 2006
----------- ----------- ----------- -----------
(Unaudited) (Unaudited) (Unaudited) (Unaudited)
Per Share Data
Net asset value at
beginning of period $ 13.27 $ 13.81 $ 13.77 $ 13.77
----------- ----------- ----------- -----------
Net investment
income(1) 0.32 0.31 1.00 0.91
Net realized and
unrealized capital
gains (losses)(2) (0.56) 0.04 (1.01) 0.08
Effect of shares
issued, net of
offering expenses 0.12 0.00 0.11 0.00
----------- ----------- ----------- -----------
Total from investment
operations (0.12) 0.35 0.10 0.99
----------- ----------- ----------- -----------
Total distributions (0.36) (0.32) (1.08) (0.92)
----------- ----------- ----------- -----------
Net asset value at end
of period $ 12.79 $ 13.84 $ 12.79 $ 13.84
=========== =========== =========== ===========
Per share market value
at beginning of period $ 15.79 $ 14.65 $ 16.14 $ 15.10
Per share market value
at end of period $ 13.37 $ 14.63 $ 13.37 $ 14.63
Total return(4) (13.0)% 2.05% (11.1)% 3.12%
Shares outstanding at
end of period 21,452,740 19,616,153 21,452,740 19,616,153
Ratios/Supplemental
Data
Net assets at end of
period (000’s) $ 274,380 $ 271,478 $ 274,380 $ 271,478
Average net assets
(000’s) $ 286,264 $ 270,805 $ 277,409 $ 269,226
Ratio of expenses to
average net assets(5) 6.01% 3.92% 5.42% 3.33%
Ratio of expenses,
excluding interest
expense, to average
net assets(5) 3.68% 3.09% 3.55% 2.94%
Ratio of net investment
income to average net
assets(5) 9.39% 9.07% 9.76% 8.78%
(1) Represents per share net investment income for the period, based upon
average shares outstanding.
(2) Includes rounding adjustment to reconcile change in net asset value per
share.
(3) For tax purposes, we expect that dividends for 2007 will be funded from
undistributed net investment income and realized capital gains from
2006, as well as net investment income and realized capital gains.
Management monitors available taxable earnings, including net
investment income and realized capital gains, to determine if a tax
return of capital may occur for the year. To the extent the Company's
taxable earnings fall below the total amount of the Company's
distributions for that fiscal year, a portion of those distributions
may be deemed a tax return of capital to the Company's stockholders.
The tax character of distributions will be determined at the end of the
fiscal year. However, if the character of such distributions were
determined as of September 30, 2007, approximately $0.03 per share of
the Company's distributions would have been characterized as a tax
return of capital to the Company's stockholders.
(4) Total return equals the increase or decrease of ending market value
over beginning market value, plus distributions, divided by the
beginning market value, assuming dividend reinvestment prices obtained
under the Company's dividend reinvestment plan. Total return is not
annualized.
(5) Annualized.
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.
Contact Information: Contact: Bruce Rubin 203-983-5280 Patrick Conroy 203-983-5282