-- 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