SOURCE: TICC Capital Corp.

August 11, 2008 08:00 ET

TICC Announces Results of Operations for the Three and Six Months Ended June 30, 2008

GREENWICH, CT--(Marketwire - August 11, 2008) - TICC Capital Corp. (NASDAQ: TICC) announced today that its Board of Directors has declared a distribution of $0.20 per share for the third quarter of 2008.

HIGHLIGHTS

-- For the quarter ended June 30, 2008, we recorded net investment income
   of approximately $5.8 million, or approximately $0.25 per share, net
   realized capital gains on investments of approximately $933,000 and net
   unrealized depreciation on investments of approximately $955,000. In
   total, we had a net increase in net assets resulting from operations of
   approximately $0.25 per share for the second quarter.

   -- Total investment income for the second quarter amounted to
      approximately $10.1 million, of which approximately $9.8 million was
      interest income and approximately $300,000 was fee income.

   -- During the quarter ended June 30, 2008, we had realized capital gains
      of approximately $1.6 million due to the repayment on our debt and
      sale of our equity investment in Aviel Services, Inc. This gain was
      partially offset by realized losses associated with the sale of
      several of our other debt investments of approximately $700,000.

   -- We recorded unrealized depreciation on our investments largely due to
      the reversal of previously recorded unrealized appreciation on our
      debt and equity investment in Aviel Services, Inc. upon the repayment
      and sale, respectively, of those investments; this was partially
      offset by the reversal of previously recorded unrealized depreciation
      on several of our other debt investments upon the sale of those
      investments.

-- Our Board of Directors has declared a distribution of $0.20 per share
   for the third quarter of 2008
   -- Payable Date: September 30, 2008
   -- Record Date: September 10, 2008

-- Over the past year, the credit markets have gone through dramatic
   changes. Since the end of the first quarter, and in the absence of
   having received a written offer for extension of our credit facility
   from our existing lenders, we have taken steps to reduce our borrowings
   under our credit facility, and effective August 6, 2008 we have reduced
   the size of the facility from $150 million to $55 million. On a
   risk-adjusted basis, we believe that until leverage can be obtained at
   appropriate pricing and terms with a longer maturity that more closely
   matches the maturity of our investments, we are better served by
   de-levering the portfolio. As a result of de-levering our portfolio, our
   net investment income is now and will likely continue to be less than it
   might otherwise be on a more fully levered portfolio. However, we
   believe it is more prudent to remove the uncertainty of continued credit
   availability on commercially reasonable terms, or at all. Until such
   time as we can obtain financing on terms which are cost-effective and
   which more closely approximates the maturity of our borrowings with the
   average maturity of our investments, we believe that de-levering the
   portfolio is the appropriate course of action. We also note that,
   largely as a result of this de-levering, our Board has determined to
   adjust the third quarter dividend to a level more consistent with that
   idea.

-- For the quarter ended June 30, 2008 we had repayments of $18.9 million
   largely consisting of repayments by Aviel Services, Inc. of $14.5
   million. Also during the quarter ended June 30, 2008, we received
   approximately $32.0 million from the sale of portfolio securities,
   largely resulting from the sale of our investments in Intergraph
   Corporation ($14.2 million), Integra Telecomm, Inc. ($7.7 million) and
   Iridium Satellite LLC ($7.4 million).

-- At June 30, 2008, 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 10.3%.

-- Expenses for the quarter were approximately $5.8 million, including
   approximately $1.3 million in interest expense, reflecting outstanding
   borrowings under our credit facility, and approximately $1.9 million in
   investment advisory fees.
   -- At June 30, 2008, approximately $70.0 million was outstanding under
      our credit facility. As of August 8, 2008, approximately $55.0
      million was outstanding under the facility.

-- On May 23, 2008 we issued to our stockholders of record as of May 23,
   2008 transferable rights to subscribe for up to 4,339,226 shares of our
   common stock. Record date stockholders received one right for each
   outstanding share of common stock owned on the record date. The rights
   offering, which was oversubscribed, resulted in the issuance of
   approximately 4.3 million shares of TICC common stock on June 18, 2008.
   The net proceeds after payment of dealer-manager fees and after other
   offering-related expenses were approximately $20.9 million.
   Subsequently, we used the net proceeds received in this offering to
   repay indebtedness owed under our credit facility.

SUBSEQUENT EVENTS

--  On July 31, 2008, the Board of Directors declared a distribution of
    $0.20 per share for the third quarter, payable on September 30, 2008 to
    shareholders of record as of September 10, 2008.
--  Pursuant to our request and in accordance with the terms of our credit
    facility, the amount under our credit facility was reduced from $150
    million to $55 million, effective August 6, 2008.
    

We will host a conference call to discuss our second quarter results and our leverage strategy today, Monday, August 11, 2008 at 10:00 AM EDT. 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 421640.

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, 2007, and subsequent reports on Form 10-Q as they are filed.

TICC CAPITAL CORP.

STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)


                                                 June 30,     December 31,
                                                   2008           2007
                                              -------------  -------------
ASSETS                                         (unaudited)
  Investments, at fair value (cost:
   $361,185,620 @ 6/30/08; $411,125,347 @
   12/31/07)
    Non-affiliated/non-control investments
     ($340,073,159 @ 6/30/08; $389,288,207 @
     12/31/07)                                $ 286,448,295  $ 360,530,609
    Control investments (cost: $21,112,461 @
     6/30/08; $21,837,140 @ 12/31/07)            25,625,000     24,837,140
                                              -------------  -------------
      Total investments at fair value           312,073,295    385,367,749
                                              -------------  -------------
  Cash and cash equivalents                      15,366,663      7,944,608
  Interest receivable                             1,564,860      2,876,424
  Prepaid expenses and other assets                 297,168        201,372
                                              -------------  -------------
        Total assets                          $ 329,301,986  $ 396,390,153
                                              =============  =============

LIABILITIES
  Investment advisory fee payable to
   affiliate                                  $   1,904,270  $   2,123,168
  Accrued interest payable                           56,724        310,312
  Accrued expenses                                1,882,307         87,170
  Loans payable                                  70,000,000    136,500,000
                                              -------------  -------------
        Total liabilities                        73,843,301    139,020,650
                                              -------------  -------------

NET ASSETS
  Common stock, $0.01 par value, 100,000,000
   shares authorized, and 26,189,851 and
   21,563,717 issued and outstanding,
   respectively                                     261,899        215,637
  Capital in excess of par value                319,306,013    296,578,543
  Net unrealized depreciation on
   investments                                  (49,112,325)   (25,757,598)
  Accumulated net realized losses on
   investments                                  (12,490,384)   (13,389,509)
  Distributions in excess of investment
   income                                        (2,506,518)      (277,570)
                                              -------------  -------------
        Total net assets                        255,458,685    257,369,503
                                              -------------  -------------
        Total liabilities and net assets      $ 329,301,986  $ 396,390,153
                                              =============  =============
Net asset value per common share              $        9.75  $       11.94




TICC CAPITAL CORP.

STATEMENTS OF OPERATIONS (UNAUDITED)


                   Three Months  Three Months                  Six Months
                       Ended         Ended       Six Months       Ended
                     June 30,      June 30,        Ended        June 30,
                       2008          2007      June 30, 2008      2007
                   ------------  ------------  -------------  ------------
INVESTMENT INCOME
From
 non-affiliated/
 non-control
 investments:
 Interest income -
  debt investments $  8,933,424  $  8,694,043  $  19,382,948  $ 17,352,443
 Interest income -
  cash and cash
  equivalents            68,691       103,030        124,683       224,549
 Other income           323,645     1,025,462        531,425     1,305,712
                   ------------  ------------  -------------  ------------
 Total investment
  income from
  non-affiliated/
  non-control
  investments         9,325,760     9,822,535     20,039,056    18,882,704
                   ------------  ------------  -------------  ------------
From control
 investments:
 Interest income -
  debt investments      748,660       848,134      1,515,187     1,684,825
 Other income                 0             0              0             0
                   ------------  ------------  -------------  ------------
 Total investment
  income from
  control
  investments           748,660       848,134      1,515,187     1,684,825
                   ------------  ------------  -------------  ------------
 Total investment
  income             10,074,420    10,670,669     21,554,243    20,567,529
                   ------------  ------------  -------------  ------------
EXPENSES
 Compensation
  expense               222,000       200,000        444,000       400,000
 Investment
  advisory fees       1,904,271     1,781,001      4,084,126     3,422,556
 Professional fees      375,689       191,512        725,616       442,697
 Interest expense     1,261,630     1,233,562      3,323,067     2,237,788
 General and
  administrative        538,656       307,606        934,604       479,347
                   ------------  ------------  -------------  ------------
 Total expenses       4,302,246     3,713,681      9,511,413     6,982,388
                   ------------  ------------  -------------  ------------
Net investment
 income               5,772,174     6,956,988     12,042,830    13,585,141
                   ------------  ------------  -------------  ------------
Net change in
 unrealized
 appreciation or
 depreciation on
 investments           (955,331)   (6,822,463)   (23,354,727)   (9,847,924)
                   ------------  ------------  -------------  ------------
Net realized gains
 on investments         932,944       236,972        899,125        93,765
                   ------------  ------------  -------------  ------------
Net increase
 (decrease) in net
 assets resulting
 from operations   $  5,749,787  $    371,497  $ (10,412,772) $  3,830,982
                   ============  ============  =============  ============

Net increase in
 net assets
 resulting from
 net investment
 income per
 common share:
   Basic and
    diluted(1)     $       0.25  $       0.34  $        0.54  $       0.67
Net increase
 (decrease) in net
 assets resulting
 from operations
 per common share:
   Basic and
    diluted(1)     $       0.25  $       0.02  $       (0.47) $       0.19
Weighted average
 shares of common
 stock
 outstanding:
   Basic and
    diluted(1)       22,708,251    20,228,754     22,363,146    20,187,949

(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 were 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 stockholders on May 23, 2008.




TICC CAPITAL CORP.

FINANCIAL HIGHLIGHTS (UNAUDITED)


                              Three       Three
                              Months      Months    Six Months  Six Months
                              Ended       Ended       Ended       Ended
                             June 30,    June 30,    June 30,    June 30,
                               2008        2007        2008        2007
                            ----------  ----------  ----------  ----------

Per Share Data
Net asset value at
 beginning of period        $    10.81  $    13.60  $    11.94  $    13.77
                            ----------  ----------  ----------  ----------
Net investment income(1)          0.25        0.34        0.54        0.67
Net realized and unrealized
 capital gains (losses) (2)       0.01       (0.32)      (1.01)      (0.48)
Effect of shares issued,
 net of offering expenses        (1.02)       0.01       (1.06)       0.03
                            ----------  ----------  ----------  ----------
Total from investment
 operations                      (0.76)       0.03       (1.53)       0.22
                            ----------  ----------  ----------  ----------
Total distributions(3)           (0.30)      (0.36)      (0.66)      (0.72)
                            ----------  ----------  ----------  ----------
Net asset value at end of
 period                     $     9.75  $    13.27  $     9.75  $    13.27
                            ==========  ==========  ==========  ==========
Per share market value at
 beginning of period        $     7.52  $    16.91  $     9.23  $    16.14
Per share market value at
 end of period              $     5.46  $    15.79  $     5.46  $    15.79
Total return(4)                 (23.40%)     (4.49%)    (34.61%)      2.19%
Shares outstanding at end
 of period                  26,189,851  19,907,086  26,189,851  19,907,086

Ratios/Supplemental Data
Net assets at end of period
 (000's)                    $  255,459  $  264,207  $  255,459  $  264,207
Average net assets (000's)  $  239,778  $  272,266  $  249,956  $  272,908
Ratio of expenses to
 average net assets(5)            7.18%       5.46%       7.61%       5.12%
Ratio of expenses,
 excluding interest
 expense, to average net
 assets(5)                        5.07%       3.64%       4.95%       3.48%
Ratio of net investment
 income to average net
 assets(5)                        9.63%      10.22%       9.64%       9.96%



(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)  Dividends for the second quarter of 2008 were funded from net
     investment income for the three months ended June 30, 2008.
     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 a fiscal year, a portion of those distributions may
     be deemed a tax return of capital to the Company's stockholders.
     However, if the character of such distributions were determined as of
     June 30, 2008, approximately $0.12 per share of the Company's
     distributions for the six-month period, 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 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 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:

    Patrick Conroy
    203-983-5282

    Bruce Rubin
    203-983-5280