GREENWICH, CT--(Marketwire - May 5, 2011) - TICC Capital Corp. (NASDAQ: TICC) announced today its financial results for the quarter ended March 31, 2011 and a distribution of $0.25 per share for the second quarter of 2011.
HIGHLIGHTS
-- Total investment income for the first quarter of 2011 amounted to
approximately $9.8 million, up approximately 6.8% from the fourth
quarter of 2010 due largely to greater distribution income from our
securitization vehicle investments.
-- For the quarter ended March 31, 2011, we recorded net investment income
of approximately $0.5 million, or approximately $0.02 per share.
Excluding the impact of a capital gains incentive fee expense of
approximately $6.5 million, our core net investment income(1) was
approximately $7.0 million, or approximately $0.22 per share. We also
recorded net unrealized appreciation of approximately $9.1 million and
net realized capital gains of approximately $1.9 million. In total, we
had a net increase in net assets resulting from operations of
approximately $0.36 per share for the first quarter, or approximately
$0.56 per share of core net increase in net assets resulting from
operations(1).
-- Operating expenses for the quarter ended March 31, 2011 were
approximately $2.7 million, which were up slightly from the fourth
quarter of 2010.
-- During the quarter ended March 31, 2011, we recorded net unrealized
appreciation of approximately $9.1 million, comprised of $13.3 million
in gross unrealized appreciation, $2.7 million in gross unrealized
depreciation and $1.5 million relating to the reversal of prior period
net unrealized appreciation upon the realization events associated with
certain investments.
-- Our weighted average credit rating on a fair value basis was 2.2 at
the end of the first quarter of 2011.
-- For the quarter ended March 31, 2011, we had net realized gains on
investments of approximately $1.9 million due to sales and repayments
of several investments.
-- The capital gains portion of our incentive fee expense was
approximately $6.5 million for the quarter ended March 31, 2011
compared to zero for the prior quarter. The capital gains incentive
fee expense, as reported under generally accepted accounting
principles, is calculated on the basis of net realized gains and net
unrealized appreciation at the end of each period. The amount of
capital gains incentive fee expense related to the hypothetical
liquidation of the portfolio (and assuming no other changes in realized
or unrealized gains and losses) would only become payable to the
Investment Advisor in the event of a complete liquidation of our
portfolio as of period end and the termination of the Investment
Advisory Agreement (the "Agreement") on such date. The $6.5 million
capital gains incentive fee expense, and associated accrual, for the
first quarter of 2011 relates entirely to the hypothetical liquidation
calculation. Also, it should be noted that the capital gains incentive
fee expense fluctuates with our overall investment results.
The amount of the capital gains incentive fee which will actually be
payable is determined in accordance with the terms of the Agreement and
is calculated as of the end of each calendar year (or upon termination
of the Agreement). The terms of the Agreement state that the capital
gains incentive fee calculation is based on net realized gains, if any,
offset by gross unrealized depreciation for the calendar year. No
effect is given to gross unrealized appreciation.
-- Our Board of Directors has declared a distribution of $0.25 per share
for the second quarter of 2011.
-- Payable Date: June 30, 2011
-- Record Date: June 16, 2011
-- During the first quarter of 2011, we deployed approximately
$100.6 million in 23 investments. For the same period, we received
proceeds of approximately $66.2 million from repayments, sales and
amortization payments on our debt investments.
-- With respect to our CLO investments for the quarter ending March 31,
2011, we recorded approximately $980,000 in interest payments, $427,000
in principal payments at par and approximately $2.3 million in CLO
equity distributions. In total, since we began investing in this asset
class through March 31, 2011, we have recorded approximately
$4.0 million in interest payments, $2.5 million in principal payments
at par and $6.1 million in CLO equity distributions.
-- At the end of the first quarter, this asset class represented
approximately 29.8% of our total assets on a fair value basis,
partially due to significant appreciation in the values of these
assets since we purchased them.
-- At March 31, 2011, the weighted average yield of our debt investments
was approximately 13.3%, down from 14.1% at December 31, 2010.
-- As of the end of the first quarter of 2011 there were no loans on
non-accrual status.
-- At March 31, 2011, net asset value per share was $9.97 compared with
the net asset value per share at December 31, 2010 of $9.85.
The March 31, 2011 net asset value incorporates the impact of the
capital gains incentive fee accrual.
(1) Supplemental Information Regarding Core Net Investment Income and Core Net Increase in Net Assets Resulting from Operations
On a supplemental basis, we provide information relating to core net investment income and core net increase in net assets resulting from operations, non-GAAP measures. These measures are provided in addition to, but not a substitute for, net investment income and net increase in net assets resulting from operations. Core net investment income represents net investment income excluding our capital gains incentive fee. Core net increase in net assets resulting from operations represents net increase in net assets resulting from operations excluding the capital gains incentive fee. As the capital gains incentive fee is based on a hypothetical event that did not occur, we believe that core net investment income and core net increase in net assets resulting from operations are useful indicators of non-hypothetical transactions during this period.
The following table provides a reconciliation of net investment income to core net investment income (for the three months ended March 31, 2011):
Per Share
Amount Amounts
------------ ------------
Net investment income $ 548,023 $ 0.02
Capital gains incentive fee 6,469,329 0.20
------------ ------------
Core net investment income $ 7,017,352 $ 0.22
============ ============
The following table provides a reconciliation of net increase in net assets resulting from operations to core net increase in net assets resulting from operations (for the three months ended March 31, 2011):
Per Share
Amount Amounts
------------ ------------
Net increase in net assets resulting from
operations $ 11,559,642 $ 0.36
Capital gains incentive fee 6,469,329 0.20
------------ ------------
Core net increase in net assets resulting
from operations $ 18,028,971 $ 0.56
============ ============
We will host a conference call to discuss our first quarter results today, Thursday, May 5 at 10:00 AM ET. Please call 877-317-6789 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 450716.
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, 2010, and subsequent reports on Form 10-Q as they are filed.
TICC CAPITAL CORP.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
March 31, December 31,
2011 2010
------------- -------------
ASSETS
Investments, at fair value (cost:
$263,710,562 @ 3/31/11; $226,200,687
@ 12/31/10)
Non-affiliated/non-control investments
(cost: $245,640,753 @ 3/31/11;
$206,750,687 @ 12/31/10) $ 276,311,788 $ 229,385,715
Control investments (cost: $18,069,809
@ 3/31/11; $19,450,000 @ 12/31/10) 17,850,000 18,150,000
------------- -------------
Total investments at fair value 294,161,788 247,535,715
------------- -------------
Cash and cash equivalents 33,606,034 68,780,866
Interest receivable 2,120,593 1,488,984
Distributions receivable from
securitization vehicles 537,441 -
Prepaid expenses and other assets 115,570 94,518
------------- -------------
Total assets $ 330,541,426 $ 317,900,083
============= =============
LIABILITIES
Investment advisory fee payable to
affiliate $ 1,992,553 $ 1,760,896
Accrued capital gains incentive fee to
affiliate 6,469,329 -
Securities purchased not settled - 1,837,500
Accrued expenses 320,215 184,146
------------- -------------
Total liabilities 8,782,097 3,782,542
------------- -------------
NET ASSETS
Common stock, $0.01 par value,
100,000,000 shares authorized, and
32,257,600 and 31,886,367 issued and
outstanding, respectively 322,576 318,864
Capital in excess of par value 366,445,157 369,163,103
Net unrealized appreciation on
investments 30,451,226 21,335,028
Accumulated net realized losses on
investments (72,649,613) (74,545,034)
Distributions in excess of investment
income (2,810,017) (2,154,420)
------------- -------------
Total net assets 321,759,329 314,117,541
------------- -------------
Total liabilities and net assets $ 330,541,426 $ 317,900,083
============= =============
Net asset value per common share $ 9.97 $ 9.85
TICC CAPITAL CORP.
STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Three Months
Ended Ended
March 31, 2011 March 31, 2010
-------------- --------------
INVESTMENT INCOME
From non-affiliated/non-control investments:
Interest income - debt investments $ 6,889,920 $ 5,205,447
Distributions from securitization
vehicles - equity investments 2,328,850 760,983
Commitment, amendment fee income
and other income 159,101 16,565
-------------- --------------
Total investment income from
non-affiliated/non-control investments 9,377,871 5,982,995
-------------- --------------
From control investments:
Interest income - debt investments 382,254 573,096
-------------- --------------
Total investment income 9,760,125 6,556,091
-------------- --------------
EXPENSES
Operating expenses
Compensation expense 238,064 239,712
Investment advisory fees 1,992,553 1,227,050
Professional fees 293,272 285,210
General and administrative 218,884 158,943
-------------- --------------
Total operating expenses 2,742,773 1,910,915
Capital gains incentive fees 6,469,329 -
-------------- --------------
Total expenses 9,212,102 1,910,915
-------------- --------------
Net investment income 548,023 4,645,176
-------------- --------------
Net change in unrealized appreciation on
investments 9,116,198 44,466,996
-------------- --------------
Net realized gains (losses) on investments 1,895,421 (31,128,326)
-------------- --------------
Net increase in net assets resulting from
operations $ 11,559,642 $ 17,983,846
============== ==============
Net increase in net assets resulting from
net investment income per common share:
Basic and diluted $ 0.02 $ 0.17
Net increase in net assets resulting from
operations per common share:
Basic and diluted $ 0.36 $ 0.67
Weighted average shares of common stock
outstanding:
Basic and diluted 31,912,859 26,813,902
TICC CAPITAL CORP.
FINANCIAL HIGHLIGHTS (UNAUDITED)
Three Months Three Months
Ended Ended
March 31, 2011 March 31, 2010
(unaudited) (unaudited)
-------------- --------------
Per Share Data
Net asset value at beginning of period $ 9.85 $ 8.36
-------------- --------------
Net investment income(1) 0.02 0.17
Net realized and unrealized capital gains(2) 0.34 0.49
-------------- --------------
Total from investment operations 0.36 0.66
-------------- --------------
Total distributions(3) (0.24) (0.15)
-------------- --------------
Effect of shares issued, net of offering
expenses 0.00 0.00
-------------- --------------
Net asset value at end of period $ 9.97 $ 8.87
============== ==============
Per share market value at beginning
of period $ 11.21 $ 6.05
Per share market value at end of period $ 10.87 $ 6.59
Total return(4) (0.89%) 11.41%
Shares outstanding at end of period 32,257,600 26,874,923
Ratios/Supplemental Data
Net assets at end of period (000's) $ 321,759 $ 238,461
Average net assets (000's) $ 314,591 $ 225,534
Ratio of expenses to average net assets:
Operating expense 3.49% 3.39%
Capital gains incentive fee 8.22% 0.00%
-------------- --------------
Total ratio of expenses to average net
assets(5) 11.71% 3.39%
============== ==============
Ratio of net investment income to
average net assets(5) 0.70% 8.24%
Ratio of core net investment income to
average net assets(5) 8.92% 8.24%
(1) Represents per share net investment income for the period, based upon
average shares outstanding.
(2) Net realized and unrealized capital gains 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, 2011, none of the distributions for 2011
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 companies. While the structures of our financings vary, we look to invest primarily in the debt of established 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