SOURCE: TICC Capital Corp.

March 13, 2008 08:00 ET

TICC Declares First Quarter 2008 Distribution of $0.36 per Share and Reports Net Investment Income per Share of Approximately $0.32 and $1.32 for the Quarter and the Year Ended December 31, 2007, Respectively

GREENWICH, CT--(Marketwire - March 13, 2008) - TICC Capital Corp. (NASDAQ: TICC) announced today that its Board of Directors has declared a distribution of $0.36 per share for the first quarter of 2008.

The dividend is payable as follows:

--  Payable Date: March 31, 2008
--  Record Date: March 21, 2008
    

In addition, TICC announced today its financial results for the year ended December 31, 2007.

HIGHLIGHTS

--  For the year ended December 31, 2007, we recorded approximately
    $43.8 million of total investment income and $27.2 million of net
    investment income compared to $35.9 million of total investment income
    and $25.4 million of net investment income for the year ended
    December 31, 2006, an increase of approximately 22.0% and 7.1%,
    respectively.

--  Net investment income for the fourth quarter of 2007 was approximately
    $6.9 million or $0.32 per share, down 10.4% from the same quarter in
    2006; in addition to the net investment income we had a net unrealized
    depreciation on investments of approximately $4.5 million and net
    realized losses on investments of approximately $12.6 million,
    resulting in a net decrease in net assets resulting from operations of
    approximately $0.50 per share for the fourth quarter of 2007.
    --  We recorded unrealized depreciation on our investments in
        Pulvermedia, LLC ($10.6 million), Group 329, LLC tranche A notes
        ($2.4 million), Power Tools, Inc. ($1.8 million) and GenuTec
        Business Solutions, Inc. ($1.5 million), based primarily upon the
        operating performance and financial condition of these companies,
        and net unrealized depreciation for several of our broadly
        syndicated loan investments of approximately $1.7 million. Our debt
        investment in Pulvermedia was placed on non-accrual status as of
        December 31, 2007.
    --  We had net realized losses of approximately $12.6 million due
        primarily to the full redemption and restructuring of the GenuTec
        note of approximately $13.4 million. (During the fourth quarter, we
        had unrealized appreciation of approximately $13.4 million
        resulting from the reversal of prior periods' unrealized
        depreciation for GenuTec.)

--  Investment originations for the fourth quarter amounted to
    approximately $46.2 million, and consisted of 2 investments in new
    portfolio companies and additional debt investments in 3 existing
    portfolio companies. The significant investments were as follows:
    --  $20.0 million investment in senior secured notes issued by Palm,
        Inc.
    --  $15.0 million investment in senior secured notes issued by GXS
        Worldwide, Inc.
    --  $7.2 million investment in senior secured notes issued by 3001,
        Inc., an existing portfolio company

--  At December 31, 2007, the weighted average yield of our debt
    investments (excluding cash equivalents and assuming no interest income
    on the investments placed on non-accrual status) was approximately
    11.3%.

--  Expenses for the quarter were approximately $5.4 million, including
    approximately $2.4 million in interest expense, reflecting outstanding
    borrowings under our credit facility and approximately $2.1 million in
    investment advisory fees.
    --  At December 31, 2007, approximately $136.5 million was outstanding
        under our credit facility.
    --  As of March 12, 2008, we had approximately $141.5 million
        outstanding under our credit facility.

SUBSEQUENT EVENTS

--  As of January 31, 2008, we amended our existing revolving Credit
    Facility, extending the termination date to January 29, 2009. Royal Bank of
    Canada ("RBC") remains agent under the Facility and each of RBC and Branch
    Banking & Trust Company remain a lender with a commitment of $75,000,000,
    for a total commitment of $150,000,000; Commerzbank AG was removed as a
    lender. Under the terms of the amended Credit Facility, drawdowns will
    continue to bear interest on the same terms as the previous arrangement,
    which is generally 1.75% over LIBOR.
--  The Board of Directors declared, on March 11, 2008, a cash
    distribution of $0.36 per share payable March 31, 2008 to holders of record
    on March 21, 2008.
    

We will host a conference call to discuss our fourth quarter results today, Thursday, March 13th at 10:00 AM EDT. 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 416929.

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, 2007 when it becomes available, and subsequent reports on Form 10-Q as they are filed.


TICC CAPITAL CORP.

STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)


                                              December 31,    December 31,
                                                  2007            2006
                                              -------------   -------------
ASSETS
  Investments, at fair value (cost:
   $411,125,347 @ 12/31/07; $325,660,997
   @ 12/31/06)
     Non-affiliated/non-control investments
      ($389,288,207 @ 12/31/07; $303,409,875
      @ 12/31/06)                             $ 360,530,609   $ 303,933,738
     Control investments (cost: $21,837,140
      @ 12/31/07; $22,251,122 @ 12/31/06)        24,837,140      22,251,122
                                              -------------   -------------
       Total investments at fair value          385,367,749     326,184,860
                                              -------------   -------------
  Cash and cash equivalents                       7,944,608       5,181,512
  Interest receivable                             2,876,424       3,216,305
  Prepaid expenses and other assets                 201,372         237,069
                                              -------------   -------------
          Total assets                        $ 396,390,153   $ 334,819,746
                                              =============   =============

LIABILITIES
  Investment advisory fee payable to
   affiliate                                  $   2,123,168   $   1,995,517
  Dividends payable                                       0       2,364,699
  Accrued interest payable                          310,312         458,507
  Accrued expenses                                   87,170         165,678
  Loans payable                                 136,500,000      58,500,000
                                              -------------   -------------
          Total liabilities                     139,020,650      63,484,401
                                              -------------   -------------

NET ASSETS
  Common stock, $0.01 par value, 100,000,000
   shares authorized, and 21,563,717 and
   19,705,824 issued and outstanding,
   respectively                                     215,637         197,058
  Capital in excess of par value                296,578,543     269,909,732
  Net unrealized (depreciation) appreciation
   on investments                               (25,757,598)        523,863
  Accumulated net realized (losses) gains on
   investments                                  (13,389,509)        320,139
  Distributions (in excess of) less than
   investment income                               (277,570)        384,553
                                              -------------   -------------
          Total net assets                      257,369,503     271,335,345
                                              -------------   -------------

          Total liabilities and net assets    $ 396,390,153   $ 334,819,746
                                              =============   =============

Net asset value per common share              $       11.94   $       13.77



TICC CAPITAL CORP.

STATEMENTS OF OPERATIONS (UNAUDITED)


                                   Year Ended     Year Ended   Year Ended
                                   December 31,   December 31, December 31,
                                        2007          2006         2005
                                    ------------  ------------ ------------
INVESTMENT INCOME
From non-affiliated/non-control
 investments:
  Interest income - debt
   investments                      $ 37,913,611  $ 30,490,365 $ 17,162,052
  Interest income - cash and cash
   equivalents                           655,859       682,760    1,022,852
  Other income                         1,956,141     3,342,713    3,615,633
                                    ------------  ------------ ------------
  Total investment income from
   non-affiliated/non-control
   investments                        40,525,611    34,515,838   21,800,537
                                    ------------  ------------ ------------
From control investments:
  Interest income - debt
   investments                         3,316,202     1,031,389            0
  Other income                                 0       400,000            0
                                    ------------  ------------ ------------
  Total investment income from
   control investments                 3,316,202     1,431,389            0
                                    ------------  ------------ ------------
  Total investment income             43,841,813    35,947,227   21,800,537
                                    ------------  ------------ ------------
EXPENSES
  Compensation expense                   897,740       712,301      724,784
  Investment advisory fees             7,461,735     6,240,055    4,345,637
  Professional fees                    1,010,140     1,059,918    1,102,255
  Interest expense                     6,313,859     1,896,903      546,516
  General and administrative             964,720       637,232      696,223
                                    ------------  ------------ ------------
  Total expenses                      16,648,194    10,546,409    7,415,415
                                    ------------  ------------ ------------
Net investment income                 27,193,619    25,400,818   14,385,122
                                    ------------  ------------ ------------
Net change in unrealized
 appreciation or depreciation on
 investments                         (26,281,461)      343,863      180,000
                                    ------------  ------------ ------------
Net realized (losses) gains on
 investments                         (12,560,990)      586,491    1,739,015
                                    ------------  ------------ ------------
Net (decrease) increase in net
 assets resulting from operations   $(11,648,832) $ 26,331,172 $ 16,304,137
                                    ============  ============ ============

Net increase in net assets
 resulting from net investment
 income per common share:
            Basic and diluted       $       1.32  $       1.30 $       1.07
Net (decrease) increase in net
 assets resulting from operations
 per common share:
            Basic and diluted       $      (0.57) $       1.35 $       1.21
Weighted average shares of common
 stock outstanding:
            Basic and diluted         20,546,307    19,491,588   13,459,343




TICC CAPITAL CORP.

FINANCIAL HIGHLIGHTS (UNAUDITED)

                                                                 Period
                                                                from July
                                                                 21, 2003
                                                               (Inception)
                Year ended  Year ended  Year ended  Year ended   through
                 December    December    December    December    December
                 31, 2007    31, 2006    31, 2005    31, 2004    31, 2003
                ----------  ----------  ----------  ----------  ----------

Per Share Data
--------------
Net asset value
 at beginning
 of period      $    13.77  $    13.77  $    13.71  $    13.80  $    15.00
                ----------  ----------  ----------  ----------  ----------
Net investment
 income (loss)(1)     1.32        1.30        1.07        0.33       (0.06)
Net realized
 and unrealized
 capital gains
 (losses)(2)         (1.76)       0.05        0.14        0.01        0.00
Effect of shares
 issued, net of
 offering expenses    0.05        0.03       (0.14)       0.00       (1.14)
                ----------  ----------  ----------  ----------  ----------
Total from
 investment
 operations          (0.39)       1.38        1.07        0.34       (1.20)
                ----------  ----------  ----------  ----------  ----------
Dividends from
 net investment
 income              (1.37)      (1.28)      (1.01)      (0.33)      (0.00)
Distributions
 from net realized
 capital gains       (0.05)      (0.10)      (0.00)      (0.00)      (0.00)
Tax return of
 capital
 distributions       (0.02)      (0.00)      (0.00)      (0.10)      (0.00)
                ----------  ----------  ----------  ----------  ----------
Total
 distributions(3)    (1.44)      (1.38)      (1.01)      (0.43)      (0.00)
                ----------  ----------  ----------  ----------  ----------
Net asset value
 at end of
 period         $    11.94  $    13.77  $    13.77  $    13.71  $    13.80
                ==========  ==========  ==========  ==========  ==========
Per share
 market value
 at beginning
 of period      $    16.14  $    15.10  $    15.01  $    15.55  $    15.00
Per share market
 value at end of
 period         $     9.23  $    16.14  $    15.10  $    15.01  $    15.55
Total return(4)    (36.26%)     17.02%       7.47%      (0.71%)      3.67%
Shares outstanding
 at end of
 period         21,563,717  19,705,824  19,304,401  10,157,848  10,000,100

Ratios/Supplemental Data
------------------------
Net assets at
 end of period
 (000's)        $  257,370  $  271,335  $  265,905  $  139,262  $  137,970
Average net
 assets (000's)    277,994     270,309     184,715     137,568      28,703
Ratio of
 expenses to
 average net
 assets               5.99%       3.90%       4.00%       2.90%       2.40%
Ratio of
 expenses,
 excluding
 interest
 expense,
 to average
 net assets           3.72%       3.20%       3.72%       2.90%       2.40%
Ratio of net
 investment
 income to
 average net
 assets               9.78%       9.40%       7.80%       2.40%     (2.00%)


(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) For tax purposes, distributions for 2007 were funded from
    undistributed net investment income and realized capital gains from
    2006, as well as current net investment income and realized capital
    gains, and included a tax return of capital. To the extent the
    Company's taxable earnings fall below the total amount of the
    Company's distributions for a fiscal year, a portion of those
    distributions may be deemed a tax return of capital to the Company's
    stockholders. For the year ending December 31, 2007 approximately
    $0.02 per share of the Company's distributions were characterized
    as a tax return of capital to the Company's stockholders.
(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.

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 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

  • Contacts:

    Bruce Rubin
    203-983-5280

    Patrick Conroy
    203-983-5282