SOURCE: Technology Investment Capital Corp.

March 07, 2007 09:00 ET

TICC Declares First Quarter 2007 Dividend of $0.36 per Share and Reports Earnings of Approximately $0.38 and $1.35 per Share for the Quarter and the Year Ended December 31, 2006, Respectively

Record Quarterly Net Increase in Net Assets Resulting From Operations

GREENWICH, CT -- (MARKET WIRE) -- March 7, 2007 -- Technology Investment Capital Corp. (NASDAQ: TICC) announced today that its Board of Directors has declared a dividend of $0.36 per share for the first quarter of 2007.

The dividend is payable as follows:

--  Payable Date: March 30, 2007
--  Record Date: March 9, 2007
    
In addition, TICC announced its unaudited financial results for the quarter and year ended December 31, 2006.

HIGHLIGHTS

--  We had a net increase in net assets resulting from operations of
    approximately $7.4 million, or approximately $0.38 per share, for the
    fourth quarter of 2006.  The net increase in net assets resulting from
    operations consisted of net investment income of approximately $7.6
    million, or approximately $0.39 per share, and net realized losses and
    unrealized capital depreciation of approximately $0.2 million, or
    approximately $0.01 per share.
--  For the year ended December 31, 2006 we had a net increase in net
    assets resulting from operations of approximately $26.3 million, or
    approximately $1.35 per share.  The net increase in net assets
    resulting from operations consisted of net investment income of
    approximately $25.4 million, or approximately $1.30 per share, and net
    realized gains and unrealized capital appreciation of approximately
    $0.9 million, or approximately $0.05 per share.
--  Investment activity for the fourth quarter amounted to approximately
    $55.0 million, and consisted of three investments in new portfolio
    companies and four additional investments in existing portfolio
    companies as follows:
    --   Fusionstorm: $15 million investment in senior subordinated
         unsecured notes with warrants
    --   SCS Holdings II, Inc: $14.5 million investment in second lien
         senior secured notes
    --   Punch Software LLC: $9.0 million investment in senior secured
         notes with warrants
    --   The CAPS Group: $5.0 million investment in senior secured notes
    --   Falcon Communications, Inc: $4.5 million investment in senior
         unsecured notes with a simultaneous sale of $2 million of equity
         held by TICC.
    --   $3.0 million investment in senior secured notes with warrants
         issued by an existing portfolio company that operates a web
         hosting business.
    --   WHITTMANHART, Inc: $6.0 million investment in senior secured notes
--  We declared a special dividend of $0.12 per share during the fourth
    quarter of 2006 payable on January 17, 2007 to holders of record as of
    December 29, 2006.
--  At December 31, 2006, the weighted average yield on our debt
    investments, excluding cash and cash equivalents, was approximately
    12.7%.
--  At December 31, 2006, our net asset value per share was approximately
    $13.77.
--  During the fourth quarter we received a $400,000 dividend payment
    resulting from the equity position we hold in conjunction with our
    investment in senior secured notes issued by Ai Squared.
--  The total weighted internal rate of return on TICC exited investments
    as of December 31, 2006 was approximately 14.4%.  Excluding the exit
    related to MortgageIT, Inc. during 2006, the IRR was approximately
    20.7%.
--  We invested approximately $191.0 million in 17 transactions during
    2006 and received debt repayments of approximately $76.6 million.
--  Our investment portfolio grew from approximately $211.4 million as of
    December 31, 2005 to approximately $326.2 million as of December 31,
    2006.
We will host a conference call to discuss our annual and fourth quarter results today, Wednesday, March 7th at 10:00 AM EST. Please call 877-407-8031 to participate. A replay of the conference call will be available for approximately 30 days. The replay number is 877-660-6853, the account number is 286 and the access code is 230664.

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, 2006 when it becomes available, and subsequent reports on Form 10-Q as they are filed.

TECHNOLOGY INVESTMENT CAPITAL CORP.

STATEMENTS OF ASSETS  AND LIABILITIES (UNAUDITED)

                                               December 31,   December 31,
                                                   2006           2005
                                              -------------- -------------
ASSETS
     Investments, at fair value (cost:
      $325,660,997 @ 12/31/06; $211,218,202 @
      12/31/05)
        Non-affiliated investments            $  303,933,738 $ 211,398,202
        Affiliated investments                    22,251,122             0
                                              -------------- -------------
             Total investments at fair value     326,184,860   211,398,202
                                              -------------- -------------
     Cash and cash equivalents                     5,181,512    55,811,584
     Interest receivable - debt investments        3,203,947     2,022,660
     Interest receivable - cash and cash
      equivalents                                     12,358         3,271
     Securities sold not settled                           0       773,486
     Prepaid expenses                                230,975        72,740
     Other assets                                      6,094        25,875
                                              -------------- -------------
               Total assets                   $  334,819,746 $ 270,107,818
                                              ============== =============

LIABILITIES
     Investment advisory fee payable to
      affiliate                               $    1,995,517 $   1,498,813
     Dividends payable                             2,364,699     2,316,528
     Accrued expenses                                624,185       187,001
     Accrued offering expenses                             0       200,000
     Loans payable                                58,500,000             0
                                              -------------- -------------
               Total liabilities                  63,484,401     4,202,342
                                              -------------- -------------

NET ASSETS
     Common stock, $0.01 par value,
      100,000,000 shares authorized, and
      19,705,824 and 19,304,401 issued and
      outstanding, respectively                      197,058       193,044
     Capital in excess of par value              269,909,732   263,885,376
     Unrealized net appreciation on
      investments                                    523,863       180,000
     Accumulated net realized gains on
      investments                                    320,139     1,739,015
     Distributions less than (in excess of)
      investment income                              384,553       (91,959)
                                              -------------- -------------
               Total net assets                  271,335,345   265,905,476
                                              -------------- -------------
               Total liabilities and net
                assets                        $  334,819,746 $ 270,107,818
                                              ============== =============
Net asset value per common
 share                                        $        13.77 $       13.77


          TECHNOLOGY INVESTMENT CAPITAL CORP.

          STATEMENTS OF OPERATIONS  (UNAUDITED)

                          THREE        THREE
                          MONTHS       MONTHS
                          ENDED        ENDED       YEAR ENDED   YEAR ENDED
                          DECEMBER     DECEMBER   DECEMBER 31, DECEMBER 31,
                          31, 2006     31, 2005       2006         2005
                        -----------  -----------  ------------ ------------
INVESTMENT INCOME
From non-affiliated
 investments:
 Interest Income - debt
  investments           $ 9,058,345  $ 5,579,417  $ 30,490,365 $ 17,162,052
 Interest Income - cash
  and cash equivalents      127,327      169,985       682,760    1,022,852
 Other Income             1,048,595      603,264     3,342,713    3,615,633
                        -----------  -----------  ------------ ------------
 Total Investment
  Income from
  non-affiliated
  investments            10,234,267    6,352,666    34,515,838   21,800,537
                        -----------  -----------  ------------ ------------
From affiliated
 investments:
 Interest Income - debt
  investments               848,365            0     1,031,389            0
 Other Income               400,000            0       400,000            0
                        -----------  -----------  ------------ ------------
     Total investment
      income from
      affiliated
      investments         1,248,365            0     1,431,389            0
                        -----------  -----------  ------------ ------------
     Total investment
      income             11,482,632    6,352,666    35,947,227   21,800,537
                        -----------  -----------  ------------ ------------
EXPENSES
 Salaries and benefits      229,244      105,471       712,301      724,784
 Investment advisory
  fees                    1,995,518    1,584,408     6,240,055    4,345,637
 Professional fees          313,113      178,347     1,059,918    1,102,255
 Interest expense         1,107,869      454,642     1,896,903      546,516
 Insurance                   20,708       23,542        82,155       98,860
 Directors' fees             45,750       32,250       168,750      135,000
 Transfer agent and
  custodian fees             26,764       22,505       105,776       93,906
 General and
  administrative             75,064      142,847       280,551      368,457
                        -----------  -----------  ------------ ------------
 Total Expenses           3,814,029    2,544,012    10,546,409    7,415,415
                        -----------  -----------  ------------ ------------
NET INVESTMENT INCOME     7,668,603    3,808,654    25,400,818   14,385,122
                        ===========  ===========  ============ ============
NET CHANGE IN
 UNREALIZED APPRECIATION
 ON INVESTMENTS            (565,445)     (59,000)      343,863      180,000
                        ===========  ===========  ============ ============
NET REALIZED GAINS ON
 INVESTMENTS                340,893    1,739,015       586,491    1,739,015
                        ===========  ===========  ============ ============
NET INCREASE IN NET
 ASSETS RESULTING FROM
 OPERATIONS             $ 7,444,050  $ 5,488,669  $ 26,331,172 $ 16,304,137
                        ===========  ===========  ============ ============
Net increase in net
 assets resulting from
 operations per common
 share:
      Basic and Diluted $      0.38  $      0.37  $       1.35 $       1.21
Weighted average shares
 of common stock
 outstanding:
      Basic and Diluted  19,619,077   14,653,320    19,491,588   13,459,343



          TECHNOLOGY INVESTMENT CAPITAL CORP.

          FINANCIAL HIGHLIGHTS (UNAUDITED)

                                                                Period
                                                                from July
                                                                21, 2003
                                                               (Inception)
                           Year ended  Year ended  Year ended   through
                            December    December    December    December
                            31, 2006    31, 2005    31, 2004    31, 2003
                           ----------  ----------  ----------  ----------

Per Share Data
Net asset value at
 beginning of period       $    13.77  $    13.71  $    13.80  $    15.00
                           ----------  ----------  ----------  ----------

Net investment income
 (loss)(1)                       1.30        1.07        0.33       (0.06)
Net realized and
 unrealized capital
 gains(2)                        0.05        0.14        0.01        0.00
Effect of shares issued,
 net of offering expenses        0.03       (0.14)       0.00       (1.14)
                           ----------  ----------  ----------  ----------

Total from investment
 operations                      1.38        1.07        0.34       (1.20)
                           ----------  ----------  ----------  ----------
Dividends from net
 investment income              (1.28)      (1.01)      (0.33)      (0.00)
Distributions from net
 realized capital gains         (0.10)      (0.00)      (0.00)      (0.00)
Tax return of capital
 distributions                  (0.00)      (0.00)      (0.10)      (0.00)
                           ----------  ----------  ----------  ----------

Total distributions             (1.38)      (1.01)      (0.43)      (0.00)
                           ----------  ----------  ----------  ----------

Net asset value at end
 of period                 $    13.77  $    13.77  $    13.71  $    13.80
                           ==========  ==========  ==========  ==========

Per share market value
 at beginning of period    $    15.10  $    15.01  $    15.55  $    15.00
Per share market value
 at end of period          $    16.14  $    15.10  $    15.01  $    15.55
Total return(3)                 17.02%       7.47%      (0.71%)      3.67%
Shares outstanding at
 end of period             19,705,824  19,304,401  10,157,848  10,000,100

Ratios/Supplemental Data
Net assets at end of
 period (000's)            $  271,335  $  265,905  $  139,262  $  137,970
Average net assets (000's)    270,309     184,715     137,568      28,703
Ratio of expenses to
 average net assets              3.90%       4.00%       2.90%       2.40%
Ratio of expenses,
 excluding interest
 expense, to average net
 assets                          3.20%       3.72%       2.90%       2.40%
Ratio of net investment
 income to average net
 assets                          9.40%       7.80%       2.40%      (2.00%)

---------------------------------------------------------------------------
(1)    Represents per share net investment income (loss) for the period,
       based upon average shares outstanding.
(2)    Includes rounding adjustment to reconcile change in net asset value
       per share.
(3)    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 from inception through December 31, 2003 has not been
       annualized.


About Technology Investment 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 and equity of established technology-related businesses. Companies interested in learning more about financing opportunities should contact Barry Osherow at (203) 661-9572 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

  • For further information contact:
    Bruce Rubin
    (203) 983-5280

    Patrick Conroy
    (203) 983-5282