SOURCE: Technology Investment Capital Corp.

August 03, 2006 08:00 ET

TICC Declares Third Quarter 2006 Dividend of $0.32 per Share and Reports Earnings of $0.35 per Share for the Quarter Ended June 30, 2006

GREENWICH, CT -- (MARKET WIRE) -- August 3, 2006 -- Technology Investment Capital Corp. (NASDAQ: TICC) announced today that its Board of Directors has declared a dividend of $0.32 per share for the third quarter of 2006.

The dividend is payable as follows:

--  Payable Date: September 29, 2006
--  Record Date: September 8, 2006
    
In addition, TICC announced today its financial results for the quarter ended June 30, 2006.

HIGHLIGHTS

--  For the three months ended June 30, 2006, we recorded net investment
    income of $6,280,439, or approximately $0.32 per share, net unrealized
    appreciation on investments of $811,000 and a net realized loss on
    investments of $221,952.  In total, we had a net increase in
    stockholders' equity resulting from operations of $6,869,487, or
    approximately $0.35, per share for the second quarter.

--  Investment activity for the second quarter amounted to $36.8 million,
    and consisted of 3 investments in new portfolio companies and 3
    additional investments in existing portfolio companies.
    -- $12 million investment in senior secured notes issued by American
       Integration Technologies, Inc.
    -- $12 million investment in senior secured notes with warrants issued
       by Power Tools, Inc.
    -- $3.5 million investment in senior secured notes issued by a leading
       independent provider of software that allows corporations to access
       and integrate data stored on mainframe computers.
    -- $8 million investment in senior secured notes with warrants issued
       by an existing portfolio company that operates a leading web hosting
       business.
    -- $1 million investment in senior secured notes issued by Questia
       Media, Inc., an existing portfolio company.
    -- $250,000 investment in senior secured notes with warrants issued by
       Climax Group, Inc., an existing portfolio company.

--  At June 30, 2006, the weighted average yield of our debt investments
    (excluding cash equivalents) was approximately 11.2%.

--  During the quarter ended June 30, 2006, Direct Revenue, LLC repaid the
    remaining balance of our outstanding debt investment, which generated a
    realized gain of approximately $18,000; at the same time, we
    surrendered warrants in the company which were previously valued at
    zero, resulting in a realized loss of $240,000.  Previously recorded
    unrealized depreciation of the same amount was reversed upon
    consummation of this transaction.
SUBSEQUENT EVENTS
--  On July 11, 2006, the $10 million of senior secured notes of Klinger
    Advanced Aesthetics, Inc. was fully repaid.  At the same time, we funded an
    investment of $1.75 million in a new subordinated debt facility with
    warrants.  Subsequently, on August 1, 2006, we completed the sale of these
    warrants for $750,000.
    
--  On July 17, 2006, we remitted $8 million to the Royal Bank of Canada
    to partially pay down our credit facility borrowings; we had $19.5 million
    outstanding under our credit facility as of August 1, 2006.  RBC serves as
    administrative agent and a lender under our credit facility.
    
--  On July 28, 2006, we completed a $750,000 investment in senior secured
    notes issued by Climax Group, an existing portfolio company, pursuant to a
    previously established commitment facility.
    
--  On July 31, 2006, we invested $3 million in senior secured notes
    issued by a developer of supply chain execution software, providing
    warehousing, transportation and labor management logistics to the retail
    and manufacturing industry.
    
We will host a conference call to discuss our second quarter results today, Thursday, August 3rd at 10:00 AM EDT. 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 209105.

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, 2005 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.
                              BALANCE SHEETS
                AS OF JUNE 30, 2006 AND DECEMBER 31, 2005

                                  ASSETS
                                                              December 31,
                                              June 30, 2006      2005
                                               (Unaudited)     (Audited)
                                              -------------  -------------
ASSETS
  Investments, at fair value (cost:
   $288,712,180 @ 6/30/06; $211,218,202 @
   12/31/05)                                  $ 289,492,592  $ 211,398,202
  Cash and cash equivalents                       6,499,110     55,811,584
  Cash and cash equivalents pledged to
   creditors                                      9,967,862              0
  Interest receivable                             2,733,335      2,025,931
  Securities sold not settled                             0        773,486
  Prepaid expense and other assets                  254,260         98,615
                                              -------------  -------------
TOTAL ASSETS                                  $ 308,947,159  $ 270,107,818
                                              =============  =============

               LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITES
  Investment advisory fee payable to
   affiliate                                      1,414,966      1,498,813
  Dividends payable                                       0      2,316,528
  Accrued expenses                                  262,228        387,001
  Loans payable                                  27,500,000              0
  Repurchase agreement                            9,966,625              0
                                              -------------  -------------
    Total Liabilities                            39,143,819      4,202,342
                                              -------------  -------------
STOCKHOLDERS' EQUITY
  Common stock, $0.01 par value, $100,000,000
   shares authorized, and 19,536,070 and
   19,304,401 issued and outstanding,
   respectively                                     195,361        193,044
  Capital in excess of par value                267,292,539    263,885,376
  Unrealized appreciation on investments            780,412        180,000
  Accumulated realized gains on investments       1,675,403      1,739,015
  Distributions in excess of investment
   income                                          (140,375)       (91,959)
                                              -------------  -------------

    Total Stockholders' Equity                  269,803,340    265,905,476
                                              -------------  -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $ 308,947,159  $ 270,107,818
                                              =============  =============
Net asset value per common share              $       13.81  $       13.77



                    TECHNOLOGY INVESTMENT CAPITAL CORP.
                          STATEMENT OF OPERATIONS
        FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2006 AND 2005
                                (UNAUDITED)



                    Three Months  Three Months   Six Months
                        Ended         Ended         Ended      Six Months
                        June          June          June          Ended
                      30, 2006      30, 2005      30, 2006    June 30, 2005
                    ------------  ------------- ------------  -------------
INVESTMENT INCOME
  Interest Income -
   debt investments $  7,302,626  $   3,662,922 $ 13,331,058  $   6,857,434
  Interest Income -
   cash and cash
   equivalents            92,793        290,003      446,774        635,115
  Other Income         1,068,682        766,064    1,894,759      1,456,269
                    ------------  ------------- ------------  -------------
    Total
     Investment
     Income            8,464,101      4,718,989   15,672,591      8,948,818
                    ------------  ------------- ------------  -------------

EXPENSES
  Salaries and
   benefits              130,164        102,341      260,346        191,451
  Investment
   advisory fees       1,396,490        934,839    2,745,283      1,734,483
  Professional fees      235,070        221,500      529,645        629,858
  Interest expense       232,370              0      232,370              0
  Insurance               20,482         25,232       40,739         50,000
  Directors' fees         49,750         32,250       82,000         64,500
  Transfer agent
   and custodian
   fees                   27,412         15,686       52,112         48,336
  General and
   Administrative         91,924         96,589      134,572        134,228
                    ------------  ------------- ------------  -------------
    Total Expenses     2,183,662      1,428,437    4,077,067      2,852,856
                    ------------  ------------- ------------  -------------
NET INVESTMENT
 INCOME             $  6,280,439  $   3,290,552 $ 11,595,524  $   6,095,962
                    ------------  ------------- ------------  -------------
NET UNREALIZED
 APPRECIATION ON
 INVESTMENTS        $    811,000  $           - $    600,412  $           -
                    ------------  ------------- ------------  -------------
NET REALIZED LOSSES
 ON INVESTMENTS     $   (221,952) $           - $    (63,612) $           -
                    ------------  ------------- ------------  -------------
NET INCREASE IN
 STOCKHOLDERS'
 EQUITY RESULTING
 FROM OPERATIONS    $  6,869,487  $   3,290,552 $ 12,132,324  $   6,095,962
                    ============  ============= ============  =============
Net increase in
 stockholders'
 equity resulting
 from operations
 per common share:
    Basic and
     Diluted        $       0.35  $        0.25 $       0.63  $        0.47
Weighted average
 shares of common
 stock outstanding:
    Basic and
     Diluted          19,460,812     13,324,188   19,403,292     12,886,140



                    TECHNOLOGY INVESTMENT CAPITAL CORP.
                           FINANCIAL HIGHLIGHTS
     FOR THE THREE MONTHS AND SIX MONTHS ENDED JUNE 30, 2006 AND 2005
                                (UNAUDITED)

                Three Months   Three Months
                    Ended          Ended        Six Months     Six Months
                  June 30,       June 30,         Ended          Ended
                    2006           2005       June 30, 2006  June 30, 2005
                -------------  -------------  -------------  -------------
                 (Unaudited)    (Unaudited)    (Unaudited)    (Unaudited)

Per Share Data
--------------
Net asset value
 at beginning
 of period      $       13.75  $       13.69  $       13.77  $       13.71
                -------------  -------------  -------------  -------------

Net investment
 income                  0.32           0.25           0.60           0.47
Net realized
 and unrealized
 gains(1)                0.04           0.00           0.04           0.01
Effect of
 shares issued,
 net of offering
 expenses                0.00           0.00           0.00          (0.11)
                -------------  -------------  -------------  -------------

Total from
 investment
 operations              0.36           0.25           0.64           0.37
                -------------  -------------  -------------  -------------

Distributions
 from net
 investment
 income                 (0.30)         (0.20)         (0.60)         (0.34)
                -------------  -------------  -------------  -------------

Net asset value
 at end of
 period         $       13.81  $       13.74  $       13.81  $       13.74
                =============  =============  =============  =============

Per share
 market value
 at beginning
 of period      $       14.54  $       14.95  $       15.10  $       15.01
Per share
 market value
 at end of
 period         $       14.65  $       14.80  $       14.65  $       14.80
Total
 return(2)(3)             2.8%           0.3%           1.0%           0.9%
Shares
 outstanding at
 end of period     19,536,070     13,392,304     19,536,070     13,392,304

Ratios/
Supplemental Data
-----------------
Net assets at
 end of period  $ 269,803,340  $ 184,074,894  $ 269,803,340  $ 184,074,894
Average net
 assets         $ 269,421,624  $ 182,402,405  $ 268,423,924  $ 174,888,648
Ratio of
 expenses to
 average net
 assets -
    annualized           3.24%          3.13%          3.04%          3.26%
Ratio of net
 investment
 income to
 average net
 assets -
    annualized           9.32%          7.22%          8.64%          6.97%

                =============  =============  =============  =============

(1)  Includes rounding adjustment to reconcile change in net asset value
     per share.
(2)  Amount not annualized.
(3)  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.
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 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

  • For further information contact:
    Bruce Rubin
    (203) 983-5280