HIGHLIGHTS
-- For the year ended December 31, 2009, we recorded approximately $20.5
million of total investment income and $13.5 million of net investment
income, compared to $37.3 million of total investment income and $22.2
million of net investment income for the year ended December 31, 2008.
-- For the quarter ended December 31, 2009, we recorded net investment
income of approximately $3.6 million, or approximately $0.13 per share,
net unrealized appreciation on investments of approximately $5.1
million and net realized gains on investments of approximately $3.3
million. In total, we had a net increase in net assets resulting from
operations of approximately $0.45 per share for the fourth quarter.
-- Total investment income for the fourth quarter of 2009 amounted to
approximately $5.5 million, down approximately 20.7% from the
fourth quarter of 2008 due largely to a lower return on our
investment portfolio due to lower LIBOR rates.
-- Expenses for the fourth quarter of 2009 were approximately $2.0
million, down approximately 21.8% from the fourth quarter of 2008
due in large part to the 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 $413,000 in professional fees for valuation,
legal and auditing services.
-- During the quarter ended December 31, 2009, we recorded net
unrealized appreciation of approximately $5.1 million, comprised of
$12.1 million in write-ups on investments, which was partially
offset by $4.1 million in write-downs and approximately $2.9
million relating to the reversal of prior period net unrealized
appreciation upon the realization events associated with certain
investments.
-- For the quarter ended December 31, 2009, we had net realized gains on
investments of approximately $3.3 million, which largely represents the
gain of approximately $5.4 million on the sale of warrants held in our
former portfolio investment in Segovia, Inc.
-- Our Board of Directors has declared a distribution of $0.15 per share
for the first quarter of 2010.
-- Payable Date: March 31, 2010
-- Record Date: March 24, 2010
-- During the fourth quarter, we deployed approximately $31.3 million in
eleven new investments of senior secured notes and collateralized loan
obligation positions with a face amount of approximately $41.1 million
for an aggregate discount of approximately 24% from par.
-- Cash portfolio realizations amounted to $21.7 million during the fourth
quarter of 2009 (which had previously been carried at an aggregate book
value of $20.9 million), and $73.4 million during the full-year 2009
(which had previously been carried at an aggregate book value of $71.1
million).
-- At December 31, 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 9.0%.
-- At December 31, 2009, the weighted average yield of our debt
investments (excluding cash equivalents and our investments on
non-accrual status as of December 31, 2009) was approximately 11.7%.
-- At December 31, 2009, net asset value per share was $8.36 compared with
the net asset value per share at September 30, 2009 of $8.07 and at
December 31, 2008 of $7.68.
SUBSEQUENT EVENTS
-- On January 28, 2010, our investment in senior secured notes issued by
Questia Media, Inc. was repaid at par.
-- March 4, 2010, the Board of Directors declared a distribution of $0.15
per share for the first quarter, payable on March 31, 2010 to
shareholders of record as of March 24, 2010.
We will host a conference call to discuss our fourth quarter results today,
Thursday, March 11 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 438687.
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, 2009, and subsequent reports on Form 10-Q
as they are filed.
TICC CAPITAL CORP.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
December 31, 2009 December 31, 2008
----------------- -----------------
ASSETS
Investments, at fair value
(cost: $260,752,699 @ 12/31/09;
$282,299,228 @ 12/31/08)
Non-affiliated/non-control
investments (cost: $241,169,345
@ 12/31/09; $261,923,603 @
12/31/08) $ 180,226,123 $ 168,094,127
Control investments (cost:
$19,583,354 @ 12/31/09;
$20,375,625 @ 12/31/08) 20,025,000 21,500,000
----------------- -----------------
Total investments at fair value 200,251,123 189,594,127
----------------- -----------------
Cash and cash equivalents 23,972,885 14,069,251
Interest receivable 860,271 1,151,703
Prepaid expenses and other assets 256,012 147,806
----------------- -----------------
Total assets $ 225,340,291 $ 204,962,887
================= =================
LIABILITIES
Investment advisory fee payable
to affiliate $ 1,119,544 $ 1,287,451
Accrued expenses 128,752 308,686
----------------- -----------------
Total liabilities 1,248,296 1,596,137
----------------- -----------------
NET ASSETS
Common stock, $0.01 par value,
100,000,000 shares authorized,
and 26,813,216 and 26,483,546
issued and outstanding,
respectively 268,132 264,835
Capital in excess of par value 320,175,874 318,662,914
Net unrealized depreciation on
investments (60,501,576) (92,705,101)
Accumulated net realized losses on
investments (32,412,374) (21,899,323)
Distributions in excess of
investment income (3,438,061) (956,575)
----------------- -----------------
Total net assets 224,091,995 203,366,750
----------------- -----------------
Total liabilities and
net assets $ 225,340,291 $ 204,962,887
================= =================
Net asset value per common share $ 8.36 $ 7.68
TICC CAPITAL CORP.
STATEMENTS OF OPERATIONS (UNAUDITED)
Year Ended Year Ended Year Ended
December 31, 2009 December 31, 2008 December 31, 2007
----------------- ----------------- -----------------
INVESTMENT INCOME
From
non-affiliated/
non-control
investments:
Interest income -
debt
investments $ 17,907,924 $ 33,355,098 $ 37,913,611
Interest income -
cash and cash
equivalents - 198,445 655,859
Other income 129,265 705,918 1,956,141
----------------- ----------------- -----------------
Total investment
income from
non-affiliated/
non-control
investments 18,037,189 34,259,461 40,525,611
----------------- ----------------- -----------------
From control
investments:
Interest income -
debt investments 2,470,603 2,921,174 3,316,202
Other income - 125,000 -
----------------- ----------------- -----------------
Total investment
income from
control
investments 2,470,603 3,046,174 3,316,202
----------------- ----------------- -----------------
Total investment
income 20,507,792 37,305,635 43,841,813
----------------- ----------------- -----------------
EXPENSES
Compensation
expense 971,356 906,109 897,740
Investment
advisory fees 4,122,005 7,001,236 7,461,735
Professional fees 1,305,894 1,626,028 1,010,140
Interest expense - 4,814,408 6,618,176
Insurance 75,974 76,734 79,858
Directors' fees 193,000 184,750 165,250
Transfer agent
and custodian
fees 98,012 104,572 105,785
General and
administrative 249,567 400,635 309,510
----------------- ----------------- -----------------
Total expenses 7,015,808 15,114,472 16,648,194
----------------- ----------------- -----------------
Net investment
income 13,491,984 22,191,163 27,193,619
----------------- ----------------- -----------------
Net change in
unrealized
appreciation or
depreciation on
investments 32,203,525 (66,947,503) (26,281,461)
----------------- ----------------- -----------------
Net realized
losses on
investments (10,513,051) (8,509,814) (12,560,990)
----------------- ----------------- -----------------
Net increase
(decrease) in net
assets resulting
from operations $ 35,182,458 $ (53,266,154) $ (11,648,832)
================= ================= =================
Net increase in
net assets
resulting from
net investment
income per
common share:
Basic and
diluted(1) $ 0.51 $ 0.91 $ 1.30
Net increase
(decrease) in net
assets resulting
from operations
per common share:
Basic and
diluted(1) $ 1.32 $ (2.19) $ (0.56)
Weighted average
shares of common
stock outstanding:
Basic and
diluted(1) 26,624,217 24,314,512 20,977,779
(1) In accordance with ASC 260-10, the weighted-average shares of common
stock outstanding used in computing basic and diluted earnings per share
for the years ended December 31, 2008 and December 31, 2007 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 shareholders on May 23, 2008.
TICC CAPITAL CORP.
FINANCIAL HIGHLIGHTS (UNAUDITED)
Year ended Year ended Year ended Year ended Year ended
December 31, December 31, December 31, December 31, December 31,
2009 2008 2007 2006 2005
---------- ---------- ---------- ---------- ----------
Per Share
Data
Net asset
value at
beginning
of period $ 7.68 $ 11.94 $ 13.77 $ 13.77 $ 13.71
---------- ---------- ---------- ---------- ----------
Net
investment
income(1) 0.51 0.91 1.32 1.30 1.07
Net
realized
and
unrealized
capital
gains
(losses)
(2) 0.81 (2.94) (1.79) 0.05 0.14
---------- ---------- ---------- ---------- ----------
Total from
investment
operations 1.32 (2.03) (0.47) 1.35 1.21
---------- ---------- ---------- ---------- ----------
Dividends
from net
investment
income (0.60) (0.98) (1.37) (1.28) (1.01)
Distributions
from net
realized
capital
gains (0.00) (0.00) (0.05) (0.10) (0.00)
Tax return
of capital
distributions (0.00) (0.08) (0.02) (0.00) (0.00)
---------- ---------- ---------- ---------- ----------
Total
distributions (0.60) (1.06) (1.44) (1.38) (1.01)
---------- ---------- ---------- ---------- ----------
Effect of
shares
issued,
net of
offering
expenses (0.04) (1.17) 0.08 0.03 (0.14)
---------- ---------- ---------- ---------- ----------
Net asset
value at
end of
period $ 8.36 $ 7.68 $ 11.94 $ 13.77 $ 13.77
========== ========== ========== ========== ==========
Per share
market
value at
beginning
of period $ 3.80 $ 9.23 $ 16.14 $ 15.10 $ 15.01
Per share
market
value at
end of
period $ 6.05 $ 3.80 $ 9.23 $ 16.14 $ 15.10
Total
return(4) 81.15% (50.23)% (36.26)% 17.02% 7.47%
Shares
outstanding
at end of
period 26,813,216 26,483,546 21,563,717 19,705,824 19,304,401
Ratios/
Supplemental
Data
Net assets
at end of
period
(000's) $ 224,092 $ 203,367 $ 257,370 $ 271,335 $ 265,905
Average
net
assets
(000's) $ 206,183 $ 251,320 $ 277,994 $ 270,309 $ 184,715
Ratio of
expenses
to
average
net
assets 3.40% 6.01% 5.99% 3.90% 4.00%
Ratio of
expenses,
excluding
interest
expense,
to
average
net
assets 3.40% 4.10% 3.72% 3.20% 3.72%
Ratio of
net
investment
income to
average net
assets 6.54% 8.83% 9.78% 9.40% 7.80%
(1) Represents per share net investment income for the period, based upon
average shares outstanding.
(2) Net realized and unrealized capital gain (losses) includes rounding
adjustment to reconcile change in net asset value per share.
(3) For the years ending December 31, 2008 and 2007, approximately $0.08
per share and $0.02 per share of the Company's distributions were
characterized as a tax return of capital to the Company's stockholders,
respectively.
(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.
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