-- For the quarter ended March 31, 2010, we recorded net investment income
of approximately $4.6 million, or approximately $0.17 per share, net
unrealized appreciation on investments of approximately $44.5 million
and net realized losses on investments of approximately $31.1 million.
In total, we had a net increase in net assets resulting from operations
of approximately $0.67 per share for the first quarter.
-- Total investment income for the first quarter of 2010 amounted to
approximately $6.6 million, up approximately 28.0% from the first
quarter of 2009 due largely to a higher return on our investment
portfolio and distribution income from our securitization vehicles.
-- Expenses for the first quarter of 2010 were approximately $1.9
million. The primary components of our expenses were approximately
$1.2 million in investment advisory fees and approximately $285,000
in professional fees for valuation, legal and auditing services.
-- During the quarter ended March 31, 2010, we recorded net unrealized
appreciation of approximately $44.5 million, comprised of $15.1
million in gross unrealized appreciation, $1.7 million in gross
unrealized depreciation and approximately $31.1 million relating to
the reversal of prior period net unrealized depreciation upon the
realization events associated with certain investments.
-- For the quarter ended March 31, 2010, we had net realized losses on
investments of approximately $31.1 million, which largely represents
the loss of approximately $22.9 million on our investment in The
CAPS Group as well as the loss of approximately $7.8 million on our
investment in Box Services, LLC. These losses represent the
realization of the economic losses previously recorded as unrealized
depreciation.
-- Our Board of Directors has declared a distribution of $0.20 per share
for the second quarter of 2010.
-- Payable Date: June 30, 2010
-- Record Date: June 10, 2010
-- During the first quarter, we deployed approximately $39.3 million in
twelve new investments of notes and collateralized loan obligation
positions with a face amount of approximately $58.5 million for an
aggregate discount of approximately 32.8% from par.
-- Cash portfolio realizations amounted to $24.2 million during the first
quarter of 2010 (which had previously been carried at an aggregate book
value of $23.9 million).
-- At March 31, 2010, the weighted average yield of our debt investments
(excluding cash equivalents and assuming no interest income from any
investments on non-accrual status) was approximately 10.8% up from
approximately 9.0% at December 31, 2009.
-- During the first quarter, no additional loans were placed on
non-accrual status.
-- At March 31, 2010, the weighted average yield of our debt investments
(excluding cash equivalents and excluding our investments on non-
accrual status as of March 31, 2010) was approximately 12.8% up from
approximately 11.7% at December 31, 2009.
-- At March 31, 2010, net asset value per share was $8.87 compared with
the net asset value per share at March 31, 2009 of $7.46 and at
December 31, 2009 of $8.36.
SUBSEQUENT EVENTS
-- Effective April 1, 2010, our debt investment in American Integration
Technologies, LLC, returned to accrual status as the company's
performance is expected to fully service our debt going forward. The
face value of that note currently stands at approximately $21.0
million (excluding deferred interest). We currently carry that
investment at a fair value of approximately $14.4 million.
-- On April 28, 2010, Hewlett Packard, Inc. announced their intended
acquisition of Palm, Inc.; therefore, we anticipate that the
outstanding debt of Palm, Inc., of which we hold approximately $9.5
million at May 6, 2010, will be repaid at par should we continue to
hold the investment at the closing of the transaction.
-- On April 29, 2010, the Board of Directors declared a distribution of
$0.20 per share for the second quarter, payable on June 30, 2010 to
shareholders of record as of June 10, 2010.
We will host a conference call to discuss our first quarter results today,
Thursday, May 6 at 10:00 AM ET. Please call 800-860-2442 to participate. A
replay of the conference call will be available for approximately 30 days.
The replay number is 877-344-7529, and the replay passcode is 440403.
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, 2009, and subsequent reports on Form 10-Q
as they are filed.
TICC CAPITAL CORP.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
March 31, 2010 December 31, 2009
------------------ ------------------
ASSETS
Investments, at fair value
(cost: $246,246,520 @
3/31/10; $260,752,699 @
12/31/09)
Non-affiliated/non-control
investments (cost:
$227,152,554 @ 3/31/10;
$241,169,345 @ 12/31/09) $ 209,936,940 $ 180,226,123
Control investments (cost:
$19,093,966 @ 3/31/10;
$19,583,354 @ 12/31/09) 20,275,000 20,025,000
------------------ ------------------
Total investments at fair
value 230,211,940 200,251,123
------------------ ------------------
Cash and cash equivalents 21,231,553 23,972,885
Interest receivable 1,223,606 860,271
Prepaid expenses and other
assets 126,437 256,012
------------------ ------------------
Total assets $ 252,793,536 $ 225,340,291
================== ==================
LIABILITIES
Investment advisory fee
payable to affiliate $ 1,227,050 $ 1,119,544
Securities purchased not
settled 12,862,771 -
Accrued expenses 243,206 128,752
------------------ ------------------
Total liabilities 14,333,027 1,248,296
------------------ ------------------
NET ASSETS
Common stock, $0.01 par value,
100,000,000 shares
authorized, and 26,874,923
and 26,813,216 issued and
outstanding, respectively 268,749 268,132
Capital in excess of par value 320,581,907 320,175,874
Net unrealized depreciation on
investments (16,034,580) (60,501,576)
Accumulated net realized
losses on investments (63,540,700) (32,412,374)
Distributions in excess of
investment income (2,814,867) (3,438,061)
------------------ ------------------
Total net assets 238,460,509 224,091,995
------------------ ------------------
Total liabilities
and net assets $ 252,793,536 $ 225,340,291
------------------ ------------------
Net asset value per common share $ 8.87 $ 8.36
TICC CAPITAL CORP.
STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Three Months
Ended Ended
March 31, 2010 March 31, 2009
-------------- --------------
INVESTMENT INCOME
From non-affiliated/non-control
investments:
Interest income - debt investments $ 5,205,447 $ 4,449,541
Distributions from investees 760,983 -
Other income 16,565 40,000
-------------- --------------
Total investment income from
non-affiliated/non-control investments 5,982,995 4,489,541
-------------- --------------
From control investments:
Interest income - debt investments 573,096 633,767
-------------- --------------
Total investment income from control
investments 573,096 633,767
-------------- --------------
Total investment income 6,556,091 5,123,308
-------------- --------------
EXPENSES
Compensation expense 239,712 225,952
Investment advisory fees 1,227,050 941,052
Professional fees 285,210 303,405
General and administrative 158,943 134,663
-------------- --------------
Total expenses 1,910,915 1,605,072
-------------- --------------
Net investment income 4,645,176 3,518,236
-------------- --------------
Net change in unrealized appreciation or
depreciation on investments 44,466,996 (4,983,244)
-------------- --------------
Net realized (losses) gains on investments (31,128,326) 22,037
-------------- --------------
Net increase (decrease) in net assets
resulting from operations $ 17,983,846 $ (1,442,971)
============== ==============
Net increase in net assets resulting from
net investment income per
common share:
Basic and diluted $ 0.17 $ 0.13
Net increase (decrease) in net assets
resulting from operations per
common share:
Basic and diluted $ 0.67 $ (0.05)
Weighted average shares of common stock
outstanding:
Basic and diluted 26,813,902 26,484,673
TICC CAPITAL CORP.
FINANCIAL HIGHLIGHTS (UNAUDITED)
Three Months Ended Three Months Ended
March 31, 2010 March 31, 2009
(unaudited) (unaudited)
------------------ -----------------
Per Share Data
Net asset value at beginning of
period $ 8.36 $ 7.68
------------------ -----------------
Net investment income(1) 0.17 0.13
Net realized and unrealized capital
losses(2) 0.49 (0.18)
------------------ -----------------
Total from investment operations 0.66 (0.05)
------------------ -----------------
Total distributions(3) (0.15) (0.15)
------------------ -----------------
Effect of shares issued, net of
offering expenses 0.00 (0.02)
------------------ -----------------
Net asset value at end of period $ 8.87 $ 7.46
================== =================
Per share market value at beginning
of period $ 6.05 $ 3.80
Per share market value at end of
period $ 6.59 $ 3.51
Total return(4) 11.41% (3.68)%
Shares outstanding at end of period 26,874,923 26,584,976
Ratios/Supplemental Data
Net assets at end of period (000's) $ 238,461 $ 198,307
Average net assets (000's) $ 225,534 $ 203,844
Ratio of expenses to average net
assets(5) 3.39% 3.15%
Ratio of net investment income to
average net assets (5) 8.24% 6.90%
(1) Represents per share net investment income for the period, based upon
average shares outstanding.
(2) Net realized and unrealized capital gains (losses) include rounding
adjustment to reconcile change in net asset value per share.
(3) 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 March 31, 2010, none of the distributions for 2010
would have been characterized as a tax return of capital to the
Company's stockholders; this tax return of capital may differ from
the return of capital calculated with reference to net investment
income for financial reporting purposes.
(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 TICC 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 of established technology-related businesses. Companies interested
in learning more about financing opportunities should contact Debdeep Maji
at (203) 983-5285 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: Contacts: Bruce Rubin 203-983-5280 Patrick Conroy 203-983-5282