SOURCE: TICC Capital Corp.

November 05, 2009 08:00 ET

TICC Announces Results of Operations for the Three and Nine Months Ended September 30, 2009 and Announces Distribution

GREENWICH, CT--(Marketwire - November 5, 2009) - TICC Capital Corp. (NASDAQ: TICC) announced today its financial results for the quarter ended September 30, 2009 and a distribution of $0.15 per share for the fourth quarter of 2009.

HIGHLIGHTS

--  For the quarter ended September 30, 2009, we recorded net investment
    income of approximately $3.2 million, or approximately $0.12 per
    share, net unrealized appreciation on investments of approximately
    $22.3 million and net realized losses on investments of approximately
    $10.5 million.  In total, we had a net increase in net assets resulting
    from operations of approximately $0.56 per share for the third quarter.

    -- Total investment income for the third quarter amounted to
       approximately $4.9 million, down approximately 44% from the third
       quarter of 2008 largely due to a smaller portfolio as a result of
       de-levering actions throughout 2008, as well as a lower return on
       our debt investment portfolio due principally to lower LIBOR rates.

    -- Expenses for the third quarter of 2009 were approximately $1.8
       million, down approximately 42% from the third quarter of 2008 due
       largely to the elimination of interest expense associated with our
       de-levering actions throughout 2008  and lower investment advisory
       fees attributable to our smaller portfolio. The primary components
       of our expenses were approximately $1.1 million in investment
       advisory fees and approximately $323,000 in professional fees for
       valuation, legal and auditing services.

    -- During the quarter ended September 30, 2009, we recorded net
       unrealized appreciation of approximately $22.3 million, comprised
       of $14.3 million in write-ups on investments, $2.8 million in
       write-downs and approximately $10.8 million relating to the reversal
       of prior period net unrealized depreciation upon the realization
       events associated with certain investments.

    -- For the quarter ended September 30, 2009, we had net realized losses
       on investments of approximately $10.5 million, which represents
       primarily the realization of the economic loss previously recorded
       as unrealized depreciation.

--  Our Board of Directors has declared a distribution of $0.15 per share
    for the fourth quarter of 2009.
    -- Payable Date: December 31, 2009
    -- Record Date: December 10, 2009

--  During the third quarter, we closed eight new investments with a face
    amount of approximately $30.0 million and a total cost of approximately
    $25.1 million for an aggregate discount of approximately 16% from par.
    Each of these investments represents the senior secured notes issued by
    the respective companies.

--  At September 30, 2009, 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 8.4%.

--  At September 30, 2009, the weighted average yield of our debt
    investments, excluding our investments on non-accrual status as of
    September 30, 2009, was approximately 11.2%.

--  At September 30, 2009, our cash position stood at approximately
    $29.4 million.

--  At September 30, 2009, net asset value per share was $8.07 compared
    with the net asset value at June 30, 2009 of $7.66 and at
    December 31, 2008 of $7.68.

SUBSEQUENT EVENTS

--  On October 29, 2009, the Board of Directors declared a distribution of
    $0.15 per share for the fourth quarter, payable on December 31, 2009 to
    shareholders of record as of December 10, 2009.
    

We will host a conference call to discuss our third quarter results today, Thursday, November 5 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, the replay passcode is 435153.

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, 2008, and subsequent reports on Form 10-Q as they are filed.

TICC CAPITAL CORP.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)


                                              September 30,  December 31,
                                                  2009           2008
                                              -------------  -------------

ASSETS
    Investments, at fair value (cost:
     $252,487,964 @ 9/30/09; $282,299,228 @
     12/31/08)
      Non-affiliated/non-control investments
       (cost: $232,520,612 @ 9/30/09;
       $261,923,603 @ 12/31/08)               $ 166,326,417  $ 168,094,127
      Control investments (cost: $19,967,352
       @ 9/30/09; $20,375,625 @ 12/31/08)        20,575,000     21,500,000
                                              -------------  -------------
          Total investments at fair value       186,901,417    189,594,127
                                              -------------  -------------
    Cash and cash equivalents                    29,373,427     14,069,251
    Interest receivable                             916,162      1,151,703
    Prepaid expenses and other assets               139,914        147,806
                                              -------------  -------------
          Total assets                        $ 217,330,920  $ 204,962,887
                                              =============  =============

LIABILITIES
    Investment advisory fee payable to
     affiliate                                $   1,077,424  $   1,287,451
    Accrued expenses                                448,847        308,686
                                              -------------  -------------
          Total liabilities                       1,526,271      1,596,137
                                              -------------  -------------

NET ASSETS
    Common stock, $0.01 par value,
     100,000,000 shares authorized, and
     26,747,561 and 26,483,546 issued and
     outstanding, respectively                      267,475        264,835
    Capital in excess of par value              319,779,312    318,662,914
    Net unrealized depreciation on
     investments                                (65,586,547)   (92,705,101)
    Accumulated net realized losses on
     investments                                (35,676,773)   (21,899,323)
    Distributions in excess of investment
     income                                      (2,978,818)      (956,575)
                                              -------------  -------------
          Total net assets                      215,804,649    203,366,750
                                              -------------  -------------
          Total liabilities and net
           assets                             $ 217,330,920  $ 204,962,887
                                              =============  =============
Net asset value per common share              $        8.07  $        7.68







TICC CAPITAL CORP.
STATEMENTS OF OPERATIONS (UNAUDITED)


                    Three Months  Three Months  Nine Months   Nine Months
                       Ended         Ended         Ended         Ended
                    September 30, September 30, September 30, September 30,
                        2009          2008          2009          2008
                    ------------  ------------  ------------  ------------

INVESTMENT INCOME
From non-affiliated/
 non-control
 investments:
    Interest
     income - debt
     investments    $  4,272,498  $  7,804,799  $ 12,991,256  $ 27,187,747
    Interest
     income - cash
     and cash
     equivalents               0        55,281             0       179,964
    Other income          72,330        78,875       134,359       610,300
                    ------------  ------------  ------------  ------------
    Total investment
     income from
     non-affiliated/
     non-control
     investments       4,344,828     7,938,955    13,125,615    27,978,011
                    ------------  ------------  ------------  ------------
From control
 investments:
    Interest income -
     debt investments    604,114       733,728     1,866,834     2,248,915
    Other income               0       125,000             0       125,000
                    ------------  ------------  ------------  ------------
    Total investment
     income from
     control
     investments         604,114       858,728     1,866,834     2,373,915
                    ------------  ------------  ------------  ------------
    Total investment
     income            4,948,942     8,797,683    14,992,449    30,351,926
                    ------------  ------------  ------------  ------------
EXPENSES
    Compensation
     expense             225,953       222,000       677,858       666,000
    Investment
     advisory fees     1,077,425     1,608,659     3,002,460     5,692,785
    Professional fees    322,966       399,961       893,183     1,125,577
    Interest expense           0       700,455             0     4,512,086
    General and
     administrative      144,535       160,987       479,855       607,027
                    ------------  ------------  ------------  ------------
    Total expenses     1,770,879     3,092,062     5,053,356    12,603,475
                    ------------  ------------  ------------  ------------
Net investment
 income                3,178,063     5,705,621     9,939,093    17,748,451
                    ------------  ------------  ------------  ------------
Net change in
 unrealized
 appreciation or
 depreciation on
 investments          22,308,201       806,271    27,118,554   (22,548,456)
                    ------------  ------------  ------------  ------------
Net realized losses
 on investments      (10,462,294)  (10,654,597)  (13,777,450)   (9,755,472)
                    ------------  ------------  ------------  ------------
Net increase
 (decrease) in net
 assets resulting
 from operations    $ 15,023,970  $ (4,142,705) $ 23,280,197  $(14,555,477)
                    ============  ============  ============  ============

Net increase in net
 assets resulting
 from net
 investment income
 per common share:
       Basic and
        diluted(1)  $       0.12  $       0.22  $       0.37  $       0.75
Net increase
 (decrease) in net
 assets resulting
 from operations
 per common share:
       Basic and
        diluted(1)  $       0.56  $      (0.16) $       0.88  $      (0.62)
Weighted average
 shares of common
 stock outstanding:
       Basic and
        diluted(1)    26,674,521    26,191,008    26,582,410    23,648,413


(1) In accordance with SFAS 128-Earnings per Share, the weighted-average
    shares of common stock outstanding used in computing basic and diluted
    earnings per share for the nine months ended September 30, 2008 was
    increased retroactively by a factor of 1.021 to recognize the bonus
    element associated with rights to acquire shares of common stock that
    were issued to shareholders on May 23, 2008.







TICC CAPITAL CORP.
FINANCIAL HIGHLIGHTS (UNAUDITED)


                              Three       Three        Nine        Nine
                              Months      Months       Months      Months
                              Ended       Ended        Ended       Ended
                            September   September    September   September
                             30, 2009    30, 2008    30, 2009    30, 2008
                           (unaudited) (unaudited)  (unaudited) (unaudited)
                            ----------  ----------  ----------  ----------

Per Share Data
Net asset value at
 beginning of period        $     7.66  $     9.75  $     7.68  $    11.94
                            ----------  ----------  ----------  ----------
Net investment income(1)          0.12        0.22        0.37        0.75
Net realized and unrealized
 capital gains (losses) (2)       0.45       (0.37)       0.50       (1.35)
                            ----------  ----------  ----------  ----------

Total from investment
 operations                       0.57       (0.15)       0.87       (0.60)
                            ----------  ----------  ----------  ----------
Total distributions(3)           (0.15)      (0.20)      (0.45)      (0.86)
                            ----------  ----------  ----------  ----------
Effect of shares issued,
 net of offering expenses        (0.01)      (0.02)      (0.03)      (1.10)
                            ----------  ----------  ----------  ----------
Net asset value at end of
 period                     $     8.07  $     9.38  $     8.07  $     9.38
                            ==========  ==========  ==========  ==========
Per share market value at
 beginning of period        $     4.41  $     5.46  $     3.80  $     9.23
Per share market value at
 end of period              $     5.04  $     5.14  $     5.04  $     5.14
Total return(4)                  17.69%     (2.2%)       47.26%     (36.0%)
Shares outstanding at end
 of period                  26,747,561  26,296,293  26,747,561  26,296,293

Ratios/Supplemental Data
Net assets at end of period
 (000's)                    $  215,805  $  246,625  $  215,805  $  246,625
Average net assets (000's)  $  205,091  $  257,905  $  202,688  $  252,625
Ratio of expenses to
 average net assets(5)            3.45%       4.80%       3.32%       6.65%
Ratio of expenses,
 excluding interest
 expense, to average net
 assets(5)                        3.45%       3.97%       3.32%       4.62%
Ratio of net investment
 income to average net
 assets(5)                        6.20%       8.85%       6.54%       9.37%



(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 September 30, 2009, distributions for 2009 would not
    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. Effective December 30, 2008, the Company had fully repaid
    all amounts under the revolving credit facility and reduced the
    commitment amount thereunder to zero, effectively terminating the
    facility.

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

  • Contact:

    Bruce Rubin
    203-983-5280

    Patrick Conroy
    203-983-5282