SOURCE: TICC Capital Corp.

March 09, 2011 08:00 ET

TICC Announces Results of Operations for the Quarter and the Year Ended December 31, 2010 and Announces Quarterly Distribution of $0.24 per Share

GREENWICH, CT--(Marketwire - March 9, 2011) - TICC Capital Corp. (NASDAQ: TICC) announced today its financial results for the quarter and year ended December 31, 2010 and a distribution of $0.24 per share for the first quarter of 2011.

HIGHLIGHTS

--  For the year ended December 31, 2010, we recorded approximately $33.5
    million of total investment income and $24.2 million of net investment
    income, compared to $20.5 million of total investment income and $13.5
    million of net investment income for the year ended December 31, 2009.

--  For the quarter ended December 31, 2010, we recorded net investment
    income of approximately $6.7 million, or approximately $0.24 per share,
    net unrealized appreciation on investments of approximately $30.3
    million and net realized losses on investments of approximately $13.0
    million. In total, we had a net increase in net assets resulting from
    operations of approximately $0.84 per share for the fourth quarter.
    --  Total investment income for the fourth quarter of 2010 amounted to
        approximately $9.1 million which remained essentially the same as
        the total investment income for the third quarter of 2010.
    --  Expenses for the fourth quarter of 2010 were approximately $2.5
        million which were also essentially the same as the expenses for
        the third quarter of 2010.
    --  During the quarter ended December 31, 2010, we recorded net
        unrealized appreciation of approximately $30.3 million, comprised
        of $19.3 million in gross unrealized appreciation, $3.0 million in
        gross unrealized depreciation and approximately $14.0 million
        relating to the reversal of prior period net unrealized
        depreciation upon the realization events associated with certain
        investments.
        --  Our weighted average credit rating on a fair value basis moved
            from 2.2 at the end of the third quarter of 2010 to 2.1 at the
            end of the fourth quarter of 2010.
    --  For the quarter ended December 31, 2010, we had net realized losses
        on investments of approximately $13.0 million due primarily to the
        loss on our investment in WAICCS Las Vegas, LLC. For accounting
        purposes, the loss was realized as of December 31, 2010, although
        the investment had been fully written-down earlier in the year.
        This loss was partially offset by the gain associated with the
        repayment of our debt investment in Cavtel Holdings, LLC of
        approximately $1.5 million.

--  Our Board of Directors has declared a distribution of $0.24 per share
    for the first quarter of 2011.
    --  Payable Date: March 31, 2011
    --  Record Date: March 21, 2011

--  During the fourth quarter of 2010, we deployed approximately $30.8
    million in 8 investments in addition to the prior three quarters'
    deployment of approximately $99.0 million.

--  With respect to our CLO investments for the quarter ending December 31,
    2010, we received approximately $911,000 in interest payments,
    $343,000 in principal payments at par and approximately $1.1 million
    in CLO equity distributions. In total, since we began investing in this
    asset class through December 31, 2010, we have received approximately
    $3.0 million in interest payments, $2.0 million in principal payments
    at par and $3.7 million in CLO equity distributions.
    --  At the end of the fourth quarter, this asset class represented
        approximately 24.0% of our total assets on a fair value basis.

--  Portfolio realizations amounted to $39.9 million during the fourth
    quarter of 2010 (which had previously been carried at an aggregate book
    value of $38.4 million).

--  At December 31, 2010, the weighted average yield of our debt
    investments was approximately 14.1%, up from 13.8% at September 30,
    2010.
    --  As of the end of 2010 there were no loans on non-accrual status.


--  At December 31, 2010, net asset value per share was $9.85 compared
    with the net asset value per share at September 30, 2010 of $9.27.

We will host a conference call to discuss our fourth quarter results today, Wednesday, March 9 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 448816.

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


                                                December 31,  December 31,
                                                    2010          2009
                                                ------------  ------------

ASSETS
     Investments, at fair value (cost:
      $226,200,687 @ 12/31/10; $260,752,699 @
      12/31/09)
       Non-affiliated/non-control investments
        (cost: $206,750,687 @ 12/31/10;
        $241,169,345 @ 12/31/09)                $229,385,715  $180,226,123
       Control investments (cost: $19,450,000 @
        12/31/10; $19,583,354 @ 12/31/09)         18,150,000    20,025,000
                                                ------------  ------------
         Total investments at fair value         247,535,715   200,251,123
                                                ------------  ------------
     Cash and cash equivalents                    68,780,866    23,972,885
     Interest receivable                           1,488,984       860,271
     Prepaid expenses and other assets                94,518       256,012
                                                ------------  ------------
               Total assets                     $317,900,083  $225,340,291
                                                ============  ============

LIABILITIES
     Investment advisory fee payable to
      affiliate                                 $  1,760,896  $  1,119,544
     Securities purchased not settled              1,837,500             -
     Accrued expenses                                184,146       128,752
                                                ------------  ------------
               Total liabilities                   3,782,542     1,248,296
                                                ------------  ------------

NET ASSETS
     Common stock, $0.01 par value, 100,000,000
      shares authorized, and 31,886,367 and
      26,813,216 issued and outstanding,
      respectively                                   318,864       268,132
     Capital in excess of par value              369,163,104   320,175,874
     Net unrealized appreciation (depreciation)
      on investments                              21,335,028   (60,501,576)
     Accumulated net realized losses on
      investments                                (74,545,034)  (32,412,374)
     Distributions in excess of investment
      income                                      (2,154,421)   (3,438,061)
                                                ------------  ------------
               Total net assets                  314,117,541   224,091,995
                                                ------------  ------------
               Total liabilities and net assets $317,900,083  $225,340,291
                                                ============  ============
Net asset value per common share                $       9.85  $       8.36






TICC CAPITAL CORP.

STATEMENTS OF OPERATIONS

                                Year Ended     Year Ended     Year Ended
                               December 31,   December 31,   December 31,
                                   2010           2009           2008
                               -------------  -------------  -------------
INVESTMENT INCOME
From non-affiliated/
 non-control investments:
  Interest income - debt
   investments                 $  26,959,707  $  17,907,924  $  33,355,098
  Distributions from
   securitization vehicles -
   equity investments              3,728,638              -              -
  Commitment, amendment fee
   income and other income           968,317        129,265        904,363
                               -------------  -------------  -------------
  Total investment income from
   non-affiliated/non-control
   investments                    31,656,662     18,037,189     34,259,461
                               -------------  -------------  -------------
From control investments:
  Interest income - debt
   investments                     1,849,929      2,470,603      2,921,174
  Other income                             -              -        125,000
                               -------------  -------------  -------------
  Total investment income from
   control investments             1,849,929      2,470,603      3,046,174
                               -------------  -------------  -------------
  Total investment income         33,506,591     20,507,792     37,305,635
                               -------------  -------------  -------------
EXPENSES
  Compensation expense             1,020,950        971,356        906,109
  Investment advisory fees         6,447,570      4,122,005      7,001,236
  Professional fees                1,033,650      1,305,894      1,626,028
  Interest expense                         -              -      4,814,408
  Insurance                           75,419         75,974         76,734
  Directors' fees                    178,750        193,000        184,750
  Transfer agent and custodian
   fees                              105,389         98,012        104,572
  General and administrative         401,366        249,567        400,635
                               -------------  -------------  -------------
  Total expenses                   9,263,094      7,015,808     15,114,472
                               -------------  -------------  -------------
Net investment income             24,243,497     13,491,984     22,191,163
                               -------------  -------------  -------------
Net change in unrealized
 appreciation (depreciation)
 on investments                   81,836,604     32,203,525    (66,947,503)
                               -------------  -------------  -------------
Net realized losses on
 investments                     (42,132,660)   (10,513,051)    (8,509,814)
                               -------------  -------------  -------------
Net increase (decrease) in net
 assets resulting from
 operations                    $  63,947,441  $  35,182,458  $ (53,266,154)
                               =============  =============  =============

Net increase in net assets
 resulting from net investment
 income per common share:
            Basic and diluted  $        0.89  $        0.51  $        0.91
Net increase in net assets
 resulting from operations per
 common share:
            Basic and diluted  $        2.35  $        1.32  $       (2.19)
Weighted average shares of
 common stock outstanding:
            Basic and diluted     27,253,552     26,624,217     24,314,512






TICC CAPITAL CORP.

FINANCIAL HIGHLIGHTS (UNAUDITED)


              Year Ended  Year Ended  Year Ended   Year Ended   Year Ended
               December    December    December     December     December
                  31,         31,         31,          31,          31,
                 2010        2009        2008         2007         2006
              ----------  ----------  ----------   ----------   ----------
Per Share
 Data
Net asset
 value at
 beginning of
 period       $     8.36  $     7.68  $    11.94   $    13.77   $    13.77
              ----------  ----------  ----------   ----------   ----------
Net
 investment
 income(1)          0.89        0.51        0.91         1.32         1.30
Net realized
 and
 unrealized
 capital
 gains
 (losses)(2)        1.19        0.81       (2.94)       (1.79)        0.05
              ----------  ----------  ----------   ----------   ----------
Total from
 investment
 operations         2.08        1.32       (2.03)       (0.47)        1.35
              ----------  ----------  ----------   ----------   ----------
Dividends
 from net
 investment
 income            (0.81)      (0.60)      (0.98)       (1.37)       (1.28)
Distributions
 from net
 realized
 capital
 gains             (0.00)      (0.00)      (0.00)       (0.05)       (0.10)
Tax return of
 capital
 distributions     (0.00)      (0.00)      (0.08)       (0.02)       (0.00)
              ----------  ----------  ----------   ----------   ----------
Total
 distributions
 (3)               (0.81)      (0.60)      (1.06)       (1.44)       (1.38)
              ----------  ----------  ----------   ----------   ----------
Effect of
 shares
 issued, net
 of offering
 expenses           0.22       (0.04)      (1.17)        0.08         0.03
              ----------  ----------  ----------   ----------   ----------
Net asset
 value at end
 of period    $     9.85  $     8.36  $     7.68   $    11.94   $    13.77
              ==========  ==========  ==========   ==========   ==========
Per share
 market value
 at beginning
 of period    $     6.05  $     3.80  $     9.23   $    16.14   $    15.10
Per share
 market value
 at end of
 period       $    11.21  $     6.05  $     3.80   $     9.23   $    16.14
Total
 return(4)        102.39%      81.15%     (50.23)%     (36.26)%      17.02%
Shares
 outstanding
 at end of
 period       31,886,367  26,813,216  26,483,546   21,563,717   19,705,824

Ratios/
 Supplemental
 Data
Net assets at
 end of
 period
 (000's)      $  314,118  $  224,092  $  203,367   $  257,370   $  271,335
Average net
 assets
 (000's)      $  243,723  $  206,183  $  251,320   $  277,994   $  270,309
Ratio of
 expenses to
 average net
 assets             3.80%       3.40%       6.01 %       5.99 %       3.90%
Ratio of
 expenses,
 excluding
 interest
 expense, to
 average net
 assets             3.80%       3.40%       4.10 %       3.72 %       3.20%
Ratio of net
 investment
 income to
 average net
 assets             9.95%       6.54%       8.83 %       9.78 %       9.40%


(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 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