SOURCE: TICC Capital Corp.

March 11, 2010 08:00 ET

TICC Announces Results of Operations for the Quarter and the Year Ended December 31, 2009 and Announces Distribution

GREENWICH, CT--(Marketwire - March 11, 2010) - TICC Capital Corp. (NASDAQ: TICC) announced today its financial results for the quarter and the year ended December 31, 2009 and a distribution of $0.15 per share for the first quarter of 2010.


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