SOURCE: TICC Capital Corp.

May 06, 2010 08:00 ET

TICC Announces Results of Operations for the Quarter Ended March 31, 2010 and Announces Distribution of $0.20 per Share

GREENWICH, CT--(Marketwire - May 6, 2010) - TICC Capital Corp. (NASDAQ: TICC) announced today its financial results for the quarter ended March 31, 2010 and a distribution of $0.20 per share for the second quarter of 2010.

HIGHLIGHTS


-- 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