SOURCE: Technology Investment Capital Corp.

November 07, 2007 08:00 ET

TICC Announces Financial Results for Third Quarter 2007 and Dividend of $0.36 per Share

Net Investment Income Up 9.4% Over Third Quarter 2006

GREENWICH, CT--(Marketwire - November 7, 2007) - Technology Investment Capital Corp. (NASDAQ: TICC) announced today that its Board of Directors has declared a dividend of $0.36 per share for the fourth quarter of 2007.

The dividend is payable as follows:

--  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