SOURCE: TICC Capital Corp.

August 06, 2009 08:00 ET

TICC Announces Results of Operations for the Three and Six Months Ended June 30, 2009, Authorization of Share Repurchase Program and Announces Distribution

GREENWICH, CT--(Marketwire - August 6, 2009) - TICC Capital Corp. (NASDAQ: TICC) announced today its financial results for the quarter ended June 30, 2009, authorization of a share repurchase program and a distribution of $0.15 per share for the third quarter of 2009.

HIGHLIGHTS

-- For the quarter ended June 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 $9.8 million and
   net realized losses on investments of approximately $3.3 million.  In
   total, we had a net increase in net assets resulting from operations of
   approximately $0.36 per share for the second quarter.

   -- Total investment income for the second quarter amounted to
      approximately $4.9 million, down approximately 51% from the second
      quarter of 2008 largely due to fewer portfolio investments as a
      result of de-levering activities throughout 2008, as well as a lower
      return on our debt investment portfolio.

   -- Expenses for the second quarter of 2009 were approximately $1.7
      million, down approximately 61% from the second quarter of 2008 due
      largely to the elimination of interest expense associated with our
      de-levering actions during 2008 to repay all debt under our previous
      credit facility and lower investment advisory fees. The primary
      components of our expenses were approximately $1.0 million in
      investment advisory fees and approximately $300,000 in professional
      fees for valuation, legal and auditing services.

   -- During the quarter ended June 30, 2009, we incurred net unrealized
      appreciation of approximately $9.8 million comprised of $14.6 million
      in unrealized appreciation, $7.7 million in unrealized depreciation
      and approximately $2.9 million relating to the reversal of prior
      period net unrealized depreciation.

   -- For the quarter ended June 30, 2009, we had net realized losses on
      investments of approximately $3.3 million.

-- Our Board of Directors has declared a distribution of $0.15 per share
   for the third quarter of 2009.
   -- Payable Date: September 30, 2009
   -- Record Date:  September 10, 2009

-- During the second quarter, the Board considered the possibility of a
   share repurchase program, as it has done historically. The Board
   identified certain benefits to implementing a repurchase program,
   notably the prospects for increasing our per share book value and for
   generating a positive IRR on that invested capital. While we are
   sensitive to other issues which would arise as a result of a repurchase,
   specifically the greater concentration risk of our existing investments
   to our portfolio and the foregone opportunities to purchase other
   attractive risk-adjusted investments, we nonetheless believe there is
   now merit to having a share repurchase program in place and available to
   be implemented as appropriate. With that in mind, our Board has
   authorized a share repurchase program which would provide for the
   purchase of up to $10 million worth of shares to be implemented at the
   discretion of our management team. Under the repurchase program, TICC
   may, but is not obligated to, repurchase its outstanding common stock in
   the open market from time to time. The timing and number of shares to be
   repurchased in the open market will depend on a number of factors,
   including market conditions and alternative investment opportunities.
   In addition, any repurchases will be conducted in accordance with the
   Investment Company Act of 1940, as amended. We have not yet been active
   in the repurchase program and there are no assurances that we will
   engage in repurchases, but if market conditions warrant, we now have the
   ability to take advantage of situations where we believe share
   repurchases would be advantageous to the company and to our
   shareholders.

-- During the second quarter, we completed 4 new investments with a face
   amount of approximately $13.4 million and a total cost value of
   approximately $9.3 million for an aggregate discount of approximately
   30% from par. Each of those investments represents the senior secured
   1st lien notes issued by the respective companies.

-- As of June 30, 2009, we placed our investment in Integra Telecomm, Inc.
   on non-accrual status as the company is not paying cash interest on the
   2nd lien term loan pending completion of a restructuring. However, we
   believe that the associated debt outstanding will be fully recovered.

-- At June 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 7.8%.

-- At June 30, 2009, the weighted average yield of our debt investments,
   excluding our investments on non-accrual status as of June 30, 2009, was
   approximately 10.0%.

-- At June 30, 2009, our cash position stood at approximately $31.4 million
   and, of that amount, approximately $3.6 million was reserved for trades
   purchased and not yet settled.

-- At June 30, 2009, net asset value per share was $7.66 compared with the
   net asset value at March 31, 2009 of $7.46 and at December 31, 2008 of
   $7.68.

SUBSEQUENT EVENTS

--  On July 30, 2009, the Board of Directors declared a distribution of $0.15
    per share for the third quarter, payable on September 30, 2009 to
    shareholders of record as of September 10, 2009.
    
--  On July 31, 2009, we placed our investment in WAICCS Las Vegas, LLC on
    non-accrual status effective July 31st and revised its maturity date to
    July 31st as the company is now in default.
    

We will host a conference call to discuss our second quarter results today, Thursday, August 6th 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 432862.

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)

                                         June 30, 2009   December 31, 2008
                                      -----------------  -----------------
                                         (unaudited)
ASSETS
  Investments, at fair value (cost:
   $265,141,324 @ 6/30/09; $282,299,228
    @ 12/31/08)
     Non-affiliated/non-control
      investments (cost: $245,080,142
      @ 6/30/09; $261,923,603 @
      12/31/08)                       $     156,421,576  $     168,094,127
     Control investments (cost:
      $20,061,182 @ 6/30/09;
      $20,375,625 @ 12/31/08)                20,825,000         21,500,000
                                      -----------------  -----------------
       Total investments at fair value      177,246,576        189,594,127
                                      -----------------  -----------------
  Cash and cash equivalents                  31,414,446         14,069,251
  Interest receivable                           641,281          1,151,703
  Prepaid expenses and other assets             159,318            147,806
                                      -----------------  -----------------
         Total assets                 $     209,461,621  $     204,962,887
                                      =================  =================

LIABILITIES
  Investment advisory fee payable to
   affiliate                          $         983,984  $       1,287,451
  Securities purchased not settled            3,640,736                  0
  Accrued expenses                              427,333            308,686
                                      -----------------  -----------------
         Total liabilities                    5,052,053          1,596,137
                                      -----------------  -----------------

NET ASSETS
  Common stock, $0.01 par value,
   100,000,000 shares authorized,
   and 26,673,718 and 26,483,546
   issued and outstanding, respectively         266,736            264,835
  Capital in excess of par value            319,407,882        318,662,914
  Net unrealized depreciation on
   investments                              (87,894,748)       (92,705,101)
  Accumulated net realized losses
   on investments                           (25,214,479)       (21,899,323)
  Distributions in excess of
   investment income                         (2,155,823)          (956,575)
                                      -----------------  -----------------
         Total net assets                   204,409,568        203,366,750
                                      -----------------  -----------------
         Total liabilities and net
          assets                      $     209,461,621  $     204,962,887
                                      =================  =================
Net asset value per common
 share                                $            7.66  $            7.68




TICC CAPITAL CORP.

STATEMENTS OF OPERATIONS (UNAUDITED)


                 Three Months   Three Months   Six Months     Six Months
                    Ended          Ended          Ended          Ended
                June 30, 2009  June 30, 2008  June 30, 2009  June 30, 2008
                -------------  -------------  -------------  -------------

INVESTMENT INCOME
From
 non-affiliated/
 non-control
 investments:
  Interest
   income - debt
   investments  $   4,269,217  $   8,933,424  $   8,718,758  $  19,382,948
  Interest
   income - cash
   and cash
   equivalents              0         68,691              0        124,683
  Other income         22,029        323,645         62,029        531,425
                -------------  -------------  -------------  -------------
  Total
   investment
   income from
   non-affiliated/
   non-control
   investments      4,291,246      9,325,760      8,780,787     20,039,056
                -------------  -------------  -------------  -------------
From control
 investments:
  Interest
   income - debt
   investments        628,953        748,660      1,262,720      1,515,187
                -------------  -------------  -------------  -------------
  Total
   investment
   income from
   control
   investments        628,953        748,660      1,262,720      1,515,187
                -------------  -------------  -------------  -------------
  Total
   investment
   income           4,920,199     10,074,420     10,043,507     21,554,243
                -------------  -------------  -------------  -------------
EXPENSES
  Compensation
   expense            225,953        222,000        451,905        444,000
  Investment
   advisory fees      983,984      1,904,271      1,925,035      4,084,126
  Professional
   fees               266,812        375,689        570,217        725,616
  Interest
   expense                  0      1,514,197              0      3,811,630
  General and
   admin-
   istrative          200,656        286,089        335,320        446,041
                -------------  -------------  -------------  -------------
  Total expenses    1,677,405      4,302,246      3,282,477      9,511,413
                -------------  -------------  -------------  -------------
Net investment
 income             3,242,794      5,772,174      6,761,030     12,042,830
                -------------  -------------  -------------  -------------
Net change in
 unrealized
 appreciation
 or
 depreciation
 on investments     9,793,597       (955,331)     4,810,353    (23,354,727)
                -------------  -------------  -------------  -------------
Net realized
 (losses) gains
 on investments    (3,337,193)       932,944     (3,315,156)       899,125
                -------------  -------------  -------------  -------------
Net increase
 (decrease) in
 net assets
 resulting from
 operations     $   9,699,198  $   5,749,787  $   8,256,227  $ (10,412,772)
                =============  =============  =============  =============

Net increase in
 net assets
 resulting from
 net investment
 income per
 common share:
  Basic and
   diluted
   (1)          $        0.12  $        0.25  $        0.25  $        0.54
Net increase
 (decrease) in
 net assets
 resulting from
 operations per
 common share:
   Basic and
    diluted
    (1)         $        0.36  $        0.25  $        0.31  $       (0.47)
Weighted
 average shares
 of common
 stock
 outstanding:
  Basic and
   diluted
   (1)             26,585,951     22,708,251     26,535,592     22,363,146

(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 six months ended June 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 Months Three Months Six Months   Six Months
                           Ended        Ended        Ended        Ended
                          June 30,     June 30,     June 30,     June 30,
                           2009         2008         2009         2008
                        (unaudited)  (unaudited)  (unaudited)  (unaudited)
                        -----------  -----------  -----------  -----------

Per Share Data
Net asset value at
 beginning of period    $      7.46  $     10.81  $      7.68  $     11.94
                        -----------  -----------  -----------  -----------
Net investment
 income(1)                     0.12         0.25         0.25         0.54
Net realized and
 unrealized capital
 gains (losses) (2)            0.24         0.01         0.06        (1.01)
                        -----------  -----------  -----------  -----------

Total from investment
 operations                    0.36         0.26         0.31        (0.47)
                        -----------  -----------  -----------  -----------
Total distributions(3)        (0.15)       (0.30)       (0.30)       (0.66)
                        -----------  -----------  -----------  -----------
Effect of shares
 issued, net of
 offering expenses            (0.01)       (1.02)       (0.03)       (1.06)
                        -----------  -----------  -----------  -----------
Net asset value at end
 of period              $      7.66  $      9.75  $      7.66  $      9.75
                        ===========  ===========  ===========  ===========
Per share market value
 at beginning of period $      3.51  $      7.52  $      3.80  $      9.23
Per share market value
 at end of period       $      4.41  $      5.46  $      4.41  $      5.46
Total return(4)               29.91%    (23.40%)        25.13%    (34.61%)
Shares outstanding at
 end of period           26,673,718   26,189,851   26,673,718   26,189,851

Ratios/Supplemental
 Data
Net assets at end of
 period (000's)         $   204,410  $   255,459  $   204,410  $   255,459
Average net assets
 (000's)                $   199,114  $   239,778  $   201,479  $   249,956
Ratio of expenses to
 average net assets(5)         3.37%        7.18%        3.26%        7.61%
Ratio of expenses,
 excluding interest
 expense, to average
 net assets(5)                 3.37%        5.07%        3.26%        4.95%
Ratio of net investment
 income to average net
 assets(5)                     6.51%        9.63%        6.71%        9.64%


(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 June 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