-- For the quarter ended September 30, 2009, we recorded net investment
income of approximately $3.2 million, or approximately $0.12 per
share, net unrealized appreciation on investments of approximately
$22.3 million and net realized losses on investments of approximately
$10.5 million. In total, we had a net increase in net assets resulting
from operations of approximately $0.56 per share for the third quarter.
-- Total investment income for the third quarter amounted to
approximately $4.9 million, down approximately 44% from the third
quarter of 2008 largely due to a smaller portfolio as a result of
de-levering actions throughout 2008, as well as a lower return on
our debt investment portfolio due principally to lower LIBOR rates.
-- Expenses for the third quarter of 2009 were approximately $1.8
million, down approximately 42% from the third quarter of 2008 due
largely to the elimination of interest expense associated with our
de-levering actions throughout 2008 and 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 $323,000 in professional fees for
valuation, legal and auditing services.
-- During the quarter ended September 30, 2009, we recorded net
unrealized appreciation of approximately $22.3 million, comprised
of $14.3 million in write-ups on investments, $2.8 million in
write-downs and approximately $10.8 million relating to the reversal
of prior period net unrealized depreciation upon the realization
events associated with certain investments.
-- For the quarter ended September 30, 2009, we had net realized losses
on investments of approximately $10.5 million, which represents
primarily the realization of the economic loss previously recorded
as unrealized depreciation.
-- Our Board of Directors has declared a distribution of $0.15 per share
for the fourth quarter of 2009.
-- Payable Date: December 31, 2009
-- Record Date: December 10, 2009
-- During the third quarter, we closed eight new investments with a face
amount of approximately $30.0 million and a total cost of approximately
$25.1 million for an aggregate discount of approximately 16% from par.
Each of these investments represents the senior secured notes issued by
the respective companies.
-- At September 30, 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 8.4%.
-- At September 30, 2009, the weighted average yield of our debt
investments, excluding our investments on non-accrual status as of
September 30, 2009, was approximately 11.2%.
-- At September 30, 2009, our cash position stood at approximately
$29.4 million.
-- At September 30, 2009, net asset value per share was $8.07 compared
with the net asset value at June 30, 2009 of $7.66 and at
December 31, 2008 of $7.68.
SUBSEQUENT EVENTS
-- On October 29, 2009, the Board of Directors declared a distribution of
$0.15 per share for the fourth quarter, payable on December 31, 2009 to
shareholders of record as of December 10, 2009.
We will host a conference call to discuss our third quarter results today,
Thursday, November 5 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 435153.
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, 2008, and subsequent reports on Form 10-Q
as they are filed.
TICC CAPITAL CORP.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
September 30, December 31,
2009 2008
------------- -------------
ASSETS
Investments, at fair value (cost:
$252,487,964 @ 9/30/09; $282,299,228 @
12/31/08)
Non-affiliated/non-control investments
(cost: $232,520,612 @ 9/30/09;
$261,923,603 @ 12/31/08) $ 166,326,417 $ 168,094,127
Control investments (cost: $19,967,352
@ 9/30/09; $20,375,625 @ 12/31/08) 20,575,000 21,500,000
------------- -------------
Total investments at fair value 186,901,417 189,594,127
------------- -------------
Cash and cash equivalents 29,373,427 14,069,251
Interest receivable 916,162 1,151,703
Prepaid expenses and other assets 139,914 147,806
------------- -------------
Total assets $ 217,330,920 $ 204,962,887
============= =============
LIABILITIES
Investment advisory fee payable to
affiliate $ 1,077,424 $ 1,287,451
Accrued expenses 448,847 308,686
------------- -------------
Total liabilities 1,526,271 1,596,137
------------- -------------
NET ASSETS
Common stock, $0.01 par value,
100,000,000 shares authorized, and
26,747,561 and 26,483,546 issued and
outstanding, respectively 267,475 264,835
Capital in excess of par value 319,779,312 318,662,914
Net unrealized depreciation on
investments (65,586,547) (92,705,101)
Accumulated net realized losses on
investments (35,676,773) (21,899,323)
Distributions in excess of investment
income (2,978,818) (956,575)
------------- -------------
Total net assets 215,804,649 203,366,750
------------- -------------
Total liabilities and net
assets $ 217,330,920 $ 204,962,887
============= =============
Net asset value per common share $ 8.07 $ 7.68
TICC CAPITAL CORP.
STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Three Months Nine Months Nine Months
Ended Ended Ended Ended
September 30, September 30, September 30, September 30,
2009 2008 2009 2008
------------ ------------ ------------ ------------
INVESTMENT INCOME
From non-affiliated/
non-control
investments:
Interest
income - debt
investments $ 4,272,498 $ 7,804,799 $ 12,991,256 $ 27,187,747
Interest
income - cash
and cash
equivalents 0 55,281 0 179,964
Other income 72,330 78,875 134,359 610,300
------------ ------------ ------------ ------------
Total investment
income from
non-affiliated/
non-control
investments 4,344,828 7,938,955 13,125,615 27,978,011
------------ ------------ ------------ ------------
From control
investments:
Interest income -
debt investments 604,114 733,728 1,866,834 2,248,915
Other income 0 125,000 0 125,000
------------ ------------ ------------ ------------
Total investment
income from
control
investments 604,114 858,728 1,866,834 2,373,915
------------ ------------ ------------ ------------
Total investment
income 4,948,942 8,797,683 14,992,449 30,351,926
------------ ------------ ------------ ------------
EXPENSES
Compensation
expense 225,953 222,000 677,858 666,000
Investment
advisory fees 1,077,425 1,608,659 3,002,460 5,692,785
Professional fees 322,966 399,961 893,183 1,125,577
Interest expense 0 700,455 0 4,512,086
General and
administrative 144,535 160,987 479,855 607,027
------------ ------------ ------------ ------------
Total expenses 1,770,879 3,092,062 5,053,356 12,603,475
------------ ------------ ------------ ------------
Net investment
income 3,178,063 5,705,621 9,939,093 17,748,451
------------ ------------ ------------ ------------
Net change in
unrealized
appreciation or
depreciation on
investments 22,308,201 806,271 27,118,554 (22,548,456)
------------ ------------ ------------ ------------
Net realized losses
on investments (10,462,294) (10,654,597) (13,777,450) (9,755,472)
------------ ------------ ------------ ------------
Net increase
(decrease) in net
assets resulting
from operations $ 15,023,970 $ (4,142,705) $ 23,280,197 $(14,555,477)
============ ============ ============ ============
Net increase in net
assets resulting
from net
investment income
per common share:
Basic and
diluted(1) $ 0.12 $ 0.22 $ 0.37 $ 0.75
Net increase
(decrease) in net
assets resulting
from operations
per common share:
Basic and
diluted(1) $ 0.56 $ (0.16) $ 0.88 $ (0.62)
Weighted average
shares of common
stock outstanding:
Basic and
diluted(1) 26,674,521 26,191,008 26,582,410 23,648,413
(1) In accordance with SFAS 128-Earnings per Share, the weighted-average
shares of common stock outstanding used in computing basic and diluted
earnings per share for the nine months ended September 30, 2008 was
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)
Three Three Nine Nine
Months Months Months Months
Ended Ended Ended Ended
September September September September
30, 2009 30, 2008 30, 2009 30, 2008
(unaudited) (unaudited) (unaudited) (unaudited)
---------- ---------- ---------- ----------
Per Share Data
Net asset value at
beginning of period $ 7.66 $ 9.75 $ 7.68 $ 11.94
---------- ---------- ---------- ----------
Net investment income(1) 0.12 0.22 0.37 0.75
Net realized and unrealized
capital gains (losses) (2) 0.45 (0.37) 0.50 (1.35)
---------- ---------- ---------- ----------
Total from investment
operations 0.57 (0.15) 0.87 (0.60)
---------- ---------- ---------- ----------
Total distributions(3) (0.15) (0.20) (0.45) (0.86)
---------- ---------- ---------- ----------
Effect of shares issued,
net of offering expenses (0.01) (0.02) (0.03) (1.10)
---------- ---------- ---------- ----------
Net asset value at end of
period $ 8.07 $ 9.38 $ 8.07 $ 9.38
========== ========== ========== ==========
Per share market value at
beginning of period $ 4.41 $ 5.46 $ 3.80 $ 9.23
Per share market value at
end of period $ 5.04 $ 5.14 $ 5.04 $ 5.14
Total return(4) 17.69% (2.2%) 47.26% (36.0%)
Shares outstanding at end
of period 26,747,561 26,296,293 26,747,561 26,296,293
Ratios/Supplemental Data
Net assets at end of period
(000's) $ 215,805 $ 246,625 $ 215,805 $ 246,625
Average net assets (000's) $ 205,091 $ 257,905 $ 202,688 $ 252,625
Ratio of expenses to
average net assets(5) 3.45% 4.80% 3.32% 6.65%
Ratio of expenses,
excluding interest
expense, to average net
assets(5) 3.45% 3.97% 3.32% 4.62%
Ratio of net investment
income to average net
assets(5) 6.20% 8.85% 6.54% 9.37%
(1) Represents per share net investment income for the period, based upon
average shares outstanding.
(2) Net realized and unrealized capital gains (losses) 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 September 30, 2009, distributions for 2009 would not
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. Effective December 30, 2008, the Company had fully repaid
all amounts under the revolving credit facility and reduced the
commitment amount thereunder to zero, effectively terminating the
facility.
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