TICC Announces Results of Operations for the Quarter Ended September 30, 2015 and Quarterly Distribution of $0.29 per Share

GREENWICH, CT--(Marketwired - Nov 6, 2015) - TICC Capital Corp. (NASDAQ: TICC) (the "Company," "we," "us," or "our") announced today its financial results for the quarter ended September 30, 2015, and announced a distribution of $0.29 per share for the fourth quarter of 2015.

 HIGHLIGHTS

• For the quarter ended September 30, 2015, we recorded GAAP net investment income of approximately $10.9 million, or approximately $0.18 per share. In the third quarter, we also recorded net realized capital gains of $0.4 million, and unrealized depreciation of $41.0 million. In total we had a net decrease in net assets from operations of approximately $29.7 million, or $0.50 per share.
  
  
• Our core net investment income ("Core NII" also previously referred to as "estimated distributable net investment income") for the quarter ended September 30, 2015 was approximately $0.34 per share.
  
  
  • Core NII represents that portion of our estimated annual taxable net investment income available for distribution to our common shareholders attributable to the quarter. The Company's distribution policy is based, to a significant extent, on our Core NII.
    
    
• Total investment income for the third quarter of 2015 amounted to approximately $23.1 million, which represents a decrease of approximately $0.6 million from the second quarter of 2015.
  
  
  • For the quarter ended September 30, 2015, we recorded GAAP investment income from our portfolio as follows:
    
    
    • approximately $14.1 million from our debt investments,
      
      
    • approximately $8.6 million from our CLO equity investments,
      
      
    • approximately $0.4 million from all other sources.
      
      
  • While reportable GAAP earnings from our CLO equity class investments for the three months ended September 30, 2015 was approximately $8.6 million, we received or were entitled to receive approximately $18.0 million in distributions. Our experience has been that cash flows have historically represented a reasonable estimate of CLO equity investment taxable earnings. In general, we currently expect our annual taxable income to be higher than our GAAP earnings on the basis of the difference between cash distributions actually received (and record date distributions to be received) and the effective yield income. Our distribution policy will be based upon our estimate of that taxable income (as required for a regulated investment company).
    
    
  • Our weighted average credit rating on a fair value basis was 2.2 at the end of the third quarter of 2015 (compared to 2.1 at the end of the second quarter of 2015).
    
    
  • As of the end of the third quarter of 2015 we had no loans held on non-accrual status.
    
    
• Our total expenses for the quarter ended September 30, 2015 were approximately $12.3 million, compared to total expenses of approximately $12.9 million for the quarter ended June 30, 2015.
  
  
• Our Board of Directors has declared a distribution of $0.29 per share for the fourth quarter of 2015.
  
  
  • Payable Date: December 31, 2015
    
    
  • Record Date: December 16, 2015
    
    
• As of September 30, 2015, the weighted average yield of our debt investments at current cost stood at approximately 7.2%, compared with 7.6% as of June 30, 2015. 
  
  
• As of September 30, 2015, the weighted average effective yield (GAAP) of CLO equity investments at current cost was approximately 11.3%, compared with 12.6% as of June 30, 2015
  
  
• As of September 30, 2015, the weighted average cash yield of cash income producing CLO equity investments at current cost was approximately 25.4% which also stood at 25.4% as of June 30, 2015. 
  
  
  • We note that the cash yield calculated on the CLO equity investments is based on the cash distributions we received or were entitled to receive at each respective period end and excludes the CLO equity investments which have not yet made their inaugural payment.
    
    
• As of September 30, 2015, net asset value per share was $7.81 compared with the net asset value per share as of June 30, 2015 of $8.60.
  
  
• Our Board of Directors has authorized a new program for the purpose of repurchasing up to $75 million worth of our common stock. Under the new repurchase program, we may, but are not obligated to, repurchase our outstanding common stock in the open market from time to time through June 30, 2016.
  
  

Supplemental Information Regarding Core Net Investment Income

On a supplemental basis, we provide information relating to core net investment income and its ratio to net assets, which are non-GAAP measures. These measures are provided in addition to, but not as a substitute for, net investment income. Our non-GAAP measures may differ from similar measures by other companies, even if similar terms are used to identify such measures. It should be noted that the current description of core net investment income differs from prior descriptions due to the change in the method of accounting for CLO equity investment income, effective January 1, 2015. Core net investment income represents net investment income adjusted for additional taxable income on our CLO equity investments and also excludes our capital gains incentive fee. 

Income from CLO equity investments, for generally accepted accounting purposes, is recorded using the effective yield method. This method requires the calculation of an effective yield to expected redemption based upon an estimation of the amount and timing of future cash flows, including recurring cash flows as well as future principal payments; the difference between the actual cash received (and record date distributions to be received), and the effective yield calculation is an adjustment to cost. Accordingly, investment income recognized on CLO equity investments in the GAAP statement of operations differs from the estimated taxable net investment income (which is generally based upon the cash distributions actually received and record date distributions to be received by us during the period), and the resulting difference is referred to below as "CLO equity additional estimated taxable income." In addition, since the capital gains incentive fee, for generally accepted accounting purposes, is based on the hypothetical liquidation of the entire portfolio (and as any capital gains incentive fee may be non-recurring), such fees are excluded when calculating core net investment income. We believe that core net investment income is a useful indicator of performance during this period. Further, because the RIC requirements are to distribute taxable earnings, and capital gains incentive fees may not be fully currently tax deductible, core net investment income provides a better indication of estimated taxable income for the period.

The following tables provide a reconciliation of net investment income to core net investment income (for the three months ended September 30, 2015 and 2014, respectively):

		Three Months Ended September 30, 2015						Three Months Ended September 30, 2014
		Amount			Per Share Amounts (basic)			Amount				Per Share Amounts (basic)
Net investment income		$	10,874,618		$	0.18		$	17,520,528			$	0.29
CLO equity additional estimated taxable income			9,343,218			0.16			-				-
Capital gains incentive fee			-			-			(837,963	)			(0.01	)
Core net investment income		$	20,217,836		$	0.34		$	16,682,565			$	0.28

We will host a conference call to discuss our third quarter results today, Friday, November 6, 2015 at 10:00 AM ET. Please call 888-339-0740 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 10075944.

A presentation containing further detail regarding our year-end and quarterly results of operations has been posted under the Investor Relations section of our website at www.ticc.com.

The following financial statements are unaudited and without footnotes. Readers who would like additional information should obtain our Form 10-Q for the period ended September 30, 2015, and subsequent reports on Form 10-Q as they are filed.

TICC CAPITAL CORP.
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
				September 30, 2015				December 31, 2014
ASSETS
	Non-affiliated/non-control investments (cost: $970,201,027 @ 9/30/15; $999,433,538 @12/31/14)			$	908,962,186			$	967,612,035
	Affiliated investments (cost: $7,367,738 @ 9/30/15; $4,268,722 @ 12/31/14)				5,314,226				1,585,303
	Control investments (cost: $16,750,000 9/30/15; $16,800,000 @ 12/31/14)				12,904,375				14,960,000
		Total investments at fair value (cost: $994,318,765 @ 9/30/15; $1,020,502,260 @ 12/31/14)			927,180,787				984,157,338
	Cash and cash equivalents				21,216,120				20,505,323
	Restricted cash				18,637,328				20,576,250
	Deferred debt issuance costs				4,601,098				5,669,747
	Interest and distributions receivable				12,597,507				11,442,289
	Securities sold not settled				10,242				-
	Other assets				308,726				290,245
		Total assets			984,551,808			$	1,042,641,192
LIABILITIES
	Accrued interest payable			$	4,964,485			$	2,596,564
	Investment advisory fee and net investment income incentive fee payable to affiliate				5,830,902				6,183,486
	Securities purchased not settled				2,850,000				11,343,179
	Credit facility				150,000,000				150,000,000
	Accrued expenses				940,623				629,127
	Notes payable - TICC CLO 2012-1 LLC, net of discount				236,407,052				236,075,775
	Convertible senior notes payable				115,000,000				115,000,000
		Total liabilities			515,993,062				521,828,131
COMMITMENTS AND CONTINGENCIES (Note 14)
NET ASSETS
	Common stock, $0.01 par value, 100,000,000 share authorized; 59,987,986 and 60,303,769 shares issued
	and outstanding, respectively				599,880				603,038
	Capital in excess of par value				620,635,767				623,018,818
	Net unrealized appreciation on investments				(67,137,978	)			(36,344,922	)
	Accumulated net realized losses on investments				(65,368,395	)			(63,212,472	)
	Distributions in excess of investment income				(20,170,528	)			(3,251,401	)
		Total net assets			468,558,746				520,813,061
		Total liabilities and net assets		$	984,551,808			$	1,042,641,192
Net asset value per common share				$	7.81			$	8.64

TICC CAPITAL CORP.CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)
					Three Months Ended September 30, 2015				Three Months Ended September 30, 2014				Nine Months Ended September 30, 2015				Nine Months Ended September 30, 2014
INVESTMENT INCOME
From non-affiliated/non-control investments:
	Interest income - debt investments				$	13,720,125			$	12,727,990			$	39,025,069			$	38,350,310
	Income from securitization vehicles and investments					8,617,121				15,170,869				26,396,541				45,047,290
	Commitment, amendment fee income and other income					372,935				1,877,067				1,985,306				4,267,879
		Total investment income from non-affiliated/non-control investments				22,710,181				29,775,926				67,406,916				87,665,479
From affiliated investments:
	Interest income - debt investments					78,616				50,436				221,097				65,139
	Total investment income from affiliated investments					78,616				50,436				221,097				65,139
From control investments:
	Interest income - debt investments					345,591				349,361				1,026,283				1,036,691
	Total investment income from control investments					345,591				349,361				1,026,283				1,036,691
		Total investment income				23,134,388				30,175,723				68,654,296				88,767,309
EXPENSES
	Compensation expense					89,660				472,903				965,293				1,399,476
	Investment advisory fees					5,255,583				5,366,277				15,574,269				15,764,248
	Professional fees					818,926				603,940				2,330,702				1,601,883
	Interest expense and other debt financing expenses					5,031,343				4,963,796				14,969,915				14,805,182
	General and administrative					488,939				384,543				1,673,389				1,567,799
		Total expenses before incentive fees				11,684,451				11,791,459				35,513,568				35,138,588
	Net investment income incentive fees					575,319				1,701,699				(929,933	)			4,806,278
	Capital gains incentive fees					-				(837,963	)			-				(3,872,853	)
		Total incentive fees				575,319				863,736				(929,933	)			933,425
		Total expenses				12,259,770				12,655,195				34,583,635				36,072,013
Net investment income						10,874,618				17,520,528				34,070,661				52,695,296
Net change in unrealized appreciation/depreciation on investments
	Non-Affiliate/non-control investments					(37,399,544	)			(15,123,443	)			(34,358,991	)			(18,359,672	)
	Affiliated investments					(1,610,530	)			(198,545	)			5,571,560				3,728,836
	Control investments					(2,005,625	)			-				(2,005,625	)			(740,000	)
		Total net change in unrealized appreciation/depreciation on investments				(41,015,699	)			(15,321,988	)			(30,793,056	)			(15,370,836	)
Net realized gains/(losses) on investments
	Non-Affiliated/non-control investments					406,343				(3,460,465	)			4,606,405				(6,925,632	)
	Affiliated investments					-				-				(6,762,328	)			(5,264,838	)
		Total net realized gains/(losses) on investments				406,343				(3,460,465	)			(2,155,923	)			(12,190,470	)
Net (decrease) increase in net assets resulting from operations					$	(29,734,738	)		$	(1,261,925	)		$	1,121,682			$	25,133,990
Net increase in net assets resulting from net investment income per common share:
			Basic		$	0.18			$	0.29			$	0.57			$	0.90
			Diluted		$	0.18			$	0.28			$	0.57			$	0.85
Net (decrease) increase in net assets resulting from operations per common share:
			Basic		$	(0.50	)		$	(0.02	)		$	0.02			$	0.43
			Diluted		$	(0.50	)		$	(0.02	)		$	0.02			$	0.43
Weighted average shares of common stock outstanding:
Basic						59,987,986				60,268,078				59,997,565				58,307,825
			Diluted			70,021,138				70,301,230				70,030,717				68,340,977
			Distributions per share		$	0.29			$	0.29			$	0.85			$	0.87

TICC CAPITAL CORP.
FINANCIAL HIGHLIGHTS (UNAUDITED)
		Three Months Ended September 30, 2015 (unaudited)				Three Months Ended September 30, 2014 (unaudited)				Nine Months Ended September 30, 2015 (unaudited)				Nine Months Ended September 30, 2014 (unaudited)
Per Share Data
Net asset value at beginning of period		$	8.60			$	9.71			$	8.64			$	9.85
Net investment income(1)(3)			0.18				0.29				0.57				0.90
Net realized and unrealized capital losses(2)(3)			(0.68	)			(0.31	)			(0.56	)			(0.47	)
Net change in net asset value from operations			(0.50	)			(0.02	)			0.01				0.43
Distributions per share from net investment income			(0.29	)			(0.29	)			(0.85	)			(0.87	)
Distributions based on weighted average share impact			-				-				-				(0.01	)
Total distributions(4)			(0.29	)			(0.29	)			(0.85	)			(0.88	)
Effect of shares repurchased, gross			-				-				0.01				-
Net asset value at end of period		$	7.81			$	9.40			$	7.81			$	9.40
Per share market value at beginning of period		$	6.72			$	9.90			$	7.53			$	10.34
Per share market value at end of period		$	6.71			$	8.83			$	6.71			$	8.83
Total return(5)			4.17	%			(7.88	)%			0.60	%			(6.52	)%
Shares outstanding at end of period			59,987,986				60,357,746				59,987,986				60,357,746
Ratios/Supplemental Data
Net assets at end of period (000's)		$	468,559				567,252				468,559				567,252
Average net assets (000's)			492,124				576,241				510,712				565,430
Ratio of expenses to average net assets(6)			9.97	%			8.79	%			9.03	%			8.51	%
Ratio of net investment income to average net assets(6)			8.84	%			12.16	%			8.90	%			12.43	%

(1)		Represents per share net investment income for the period, based upon average shares outstanding.
(2)		Net realized and unrealized capital gains include rounding adjustments to reconcile change in net asset value per share.
(3)		During the first quarter of 2015, the Company identified a non-material error in its accounting for income from CLO equity investments -- refer to "Note 3. Change of Accounting for Collateralized Loan Obligation Equity Income." Prospectively as of January 1, 2015, the Company records income from its CLO equity investments using the effective yield method in accordance with the accounting guidance in ASC 325-40, Beneficial Interests in Securitized Financial Assets, based upon an estimation of an effective yield to maturity utilizing assumed cash flows. An out-of-period adjustment to net investment income incentive fees, in the amount of $2.4 million, is reflected in the first quarter of 2015. Prior period amounts are not materially affected.
(4)		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.
(5)		Total return equals the increase or decrease of ending market value over beginning market value, plus distributions, divided by the beginning market value, assuming distribution reinvestment prices obtained under the Company's distribution reinvestment plan, excluding any discounts. Total return is not annualized.
(6)		Annualized.
(7)		The following table provides supplemental performance ratios (annualized) measured for the three and nine months ended September 30, 2015 and 2014:

		Three Months Ended September 30, 2015 (unaudited)			Three Months Ended September 30, 2014 (unaudited)			Nine Months Ended September 30, 2015 (unaudited)			Nine Months Ended September 30, 2014 (unaudited)
Ratio of expenses before incentive fees to average net assets		9.50	%		8.19	%		9.27	%		8.29	%
Ratio of net investment income incentive fees to average net assets		0.47	%		1.18	%		(0.24	)%		1.13	%
Ratio of capital gains incentive fees to average net assets		-			(0.58	)%		-			(0.91	)%
Ratio of expenses, excluding interest expense, to average net assets		5.88	%		5.33	%		5.12	%		5.02	%

About TICC Capital Corp.

TICC Capital Corp. is a publicly-traded business development company principally engaged in providing capital to established businesses, investing in syndicated bank loans and purchasing debt and equity tranches of collateralized loan obligations. Companies interested in learning more about financing opportunities should contact Debdeep Maji at (203) 983-5285.

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.