SOURCE: Technology Investment Capital Corp.

November 03, 2005 08:00 ET

TICC Declares Fourth Quarter 2005 Dividend of $0.30 per Share and Reports Earnings of $0.35 per Share for the Quarter Ended September 30, 2005

GREENWICH, CT -- (MARKET WIRE) -- November 3, 2005 -- Technology Investment Capital Corp. (NASDAQ: TICC) announced today that its Board of Directors has declared a dividend of $0.30 per share for the fourth quarter of 2005.

The dividend is payable as follows:

--  Payable Date: December 30, 2005
--  Record Date: December 9, 2005
    

In addition, TICC announced today its financial results for the quarter ended September 30, 2005.

HIGHLIGHTS

For the three months ended September 30, 2005, we recorded net investment income of $4,480,506, or approximately $0.33 per share, and net unrealized appreciation of $239,000, or approximately $0.02 per share. In total, we had an increase in stockholders' equity of $0.35 per share for the third quarter.

Investment activity for the third quarter amounted to $70.0 million, and consisted of 5 investments in new portfolio companies and 1 additional investment for an existing portfolio company.

--  $15 million investment in senior secured notes issued by NetQuote,
    Inc.
--  $15 million investment in senior secured notes with preferred stock
    issued by StayOnline, Inc.
--  $20 million investment in preferred stock with warrants issued by
    GenuTec Business Solutions, Inc.
--  $11 million investment in senior secured notes issued by Mortgagebot
    Acquisition, LLC.
--  $7 million investment in senior unsecured notes issued by the OPTIMUS
    Corporation.
--  $2 million investment in additional senior secured notes issued by
    Segovia, Inc.
    

At September 30, 2005, the weighted average yield of our debt investments (excluding cash equivalents) was approximately 10.5%.

SUBSEQUENT EVENTS

On October 13, 2005, we entered into an agreement amending the credit facility to increase the size from $35 million to $100 million, with Royal Bank of Canada as an additional lender under the amended credit facility. Prior to the amendment we had drawn down the full amount under this facility.

We will host a conference call to discuss our third quarter results today, Thursday, November 3rd 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 172475.

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, 2004, our Form 10-Q for the quarter ended June 30, 2005, and subsequent reports on Form 10-Q as they are filed, each of which are available on the SEC's website at www.sec.gov.



   TECHNOLOGY INVESTMENT CAPITAL CORP.
   BALANCE SHEET


                                ASSETS
                                    September 30, 2005   December 31, 2004
                                          (Unaudited)          (Audited)
                                          ------------        ------------
ASSETS
   Investments, at fair value
    (cost: $217,573,562 @ 9/30/05;
    $82,124,730 @ 12/31/04)               $217,812,562         $82,124,730
   Cash and cash equivalents                 3,431,313          57,317,398
   Cash and cash equivalents pledged
    to creditors                            39,939,833                   0
   Interest receivable – debt
    investments                              1,398,518             489,431
   Interest receivable – cash
    and cash equivalents                           331               7,538
   Prepaid expenses                             28,526             102,696
   Other assets                                 45,269             460,666
                                          ------------        ------------
TOTAL ASSETS                              $262,656,352        $140,502,459
                                          ============        ============


                   LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
   Accrued expenses                         $1,913,627            $940,922
   Accrued offering expenses                         0             300,000
   Repurchase agreement                     39,166,667                   0
   Short-term borrowing under
    credit facility                         35,000,000                   0
                                          ------------        ------------
   Total Liabilities                        76,080,294           1,240,922
                                          ------------        ------------

STOCKHOLDERS' EQUITY
   Common stock, $0.01 par value,
    100,000,000 shares authorized, and
    13,463,852 and 10,157,848 issued
    and outstanding, respectively              134,639             101,578
   Capital in excess of par value          183,747,348         139,410,302
   Accumulated net investment
    income (loss)                            2,455,071            (250,343)
   Unrealized appreciation on
     investments                               239,000                   0
                                          ------------        ------------
   Total Stockholders' Equity              186,576,058         139,261,537
                                          ------------        ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
 EQUITY                                   $262,656,352        $140,502,459
                                          ============        ============

Net asset value per common share                $13.86              $13.71
                                          ============        ============


   TECHNOLOGY INVESTMENT CAPITAL CORP.
   STATEMENT OF OPERATIONS (UNAUDITED)


                              Three       Three       Nine        Nine
                              Months      Months      Months      Months
                              Ended       Ended       Ended       Ended
                             Sept 30,    Sept 30,    Sept 30,    Sept 30,
                               2005        2004        2005        2004
                           ----------- ----------- ----------- -----------
INVESTMENT INCOME
   Interest income - debt
    investments            $ 4,725,201 $ 1,325,457 $11,582,635 $ 2,428,596
   Interest income - cash
    and cash equivalents       217,752     327,159     852,867     850,665
   Other income              1,556,100     691,921   3,012,369   1,221,921
                           ----------- ----------- ----------- -----------
      Total Investment
       Income                6,499,053   2,344,537  15,447,871   4,501,182
                           ----------- ----------- ----------- -----------
EXPENSES
   Salaries and benefits       427,862      54,780     619,313     152,918
   Investment advisory fees  1,026,746     698,337   2,761,229   2,077,286
   Professional fees           294,050     126,500     923,908     353,596
   Insurance                    25,318      20,240      75,318      60,280
   Directors' fees              38,250      32,250     102,750     102,750
   Transfer agent and
    custodian fees              23,065      13,900      71,401      41,139
   Interest expense             91,874           0      91,874           0
   General and
    administrative              91,382      51,374     225,610     136,595
                           ----------- ----------- ----------- -----------
      Total Expenses         2,018,547     997,381   4,871,403   2,924,564
                           ----------- ----------- ----------- -----------
NET INVESTMENT INCOME      $ 4,480,506 $ 1,374,156 $10,576,468 $ 1,576,618
                           =========== =========== =========== ===========
NET UNREALIZED APPRECIATION
 ON INVESTMENTS            $   239,000 $         0 $   239,000 $         0
                           =========== =========== =========== ===========
NET INCREASE IN
 STOCKHOLDERS' EQUITY
 RESULTING FROM OPERATIONS $ 4,719,506 $ 1,374,156 $10,815,468 $ 1,576,618
                           =========== =========== =========== ===========
Net increase in
 stockholders' equity
 resulting from operations
 per common share:
   Basic and Diluted       $      0.35 $      0.13 $      0.83 $      0.16
Weighted average shares of
 common stock outstanding:
   Basic and Diluted        13,393,082  10,093,067  13,056,977  10,046,048


   TECHNOLOGY INVESTMENT CAPITAL CORP.
   FINANCIAL HIGHLIGHTS (UNAUDITED)


                    Three Months   Three Months  Nine Months  Nine Months
                       Ended         Ended        Ended          Ended
                    September 30, September 30, September 30, September 30,
                        2005          2004         2005          2004
                     (Unaudited)   (Unaudited)   (Unaudited)   (Unaudited)
                    ------------  ------------  ------------  ------------
Per Share Data
Net asset value
 at beginning of
 period                   $13.74        $13.61        $13.71        $13.80
Net investment
 income                     0.33          0.13          0.81          0.16
Net realized
 and unrealized
 gains(1)                   0.04          0.01          0.04          0.00
Distributions
 from net investment
 income                    (0.25)        (0.11)        (0.59)        (0.32)
Effect of shares
 issued,net of offering
 expenses                   0.00          0.00         (0.11)         0.00
                    ------------  ------------  ------------  ------------
Net asset value at
 end of period            $13.86        $13.64        $13.86        $13.64
                    ============  ============  ============  ============
Per share market
 value at beginning
 of period                $14.80        $13.51        $15.01        $15.55
Per share market
 value at end of
 period                   $15.79        $13.99        $15.79        $13.99
Total return(2)(3)          8.38%         4.4%          9.13%        (8.0%)
Shares outstanding at
 end of period        13,463,852    10,125,406    13,463,852    10,125,406
Ratios/Supplemental Data
Net assets at end
 of period          $186,576,058  $138,101,491  $186,576,058  $138,101,491
Average net assets  $184,927,207  $137,584,626  $178,271,603  $137,711,756
Ratio of expenses to
 average net assets
 - annualized               4.37%         2.90%         3.64%         2.83%
Ratio of net investment
 income to average net
 assets - annualized        9.69%         3.92%         7.91%         1.53%


(1) Includes rounding adjustment to reconcile change in net asset value per
    share. There were no realized or unrealized gains for the periods ended
    September 30, 2004.
(2) Amount not annualized.
(3) Total return equals the increase/decrease of the ending market value
    per share plus dividends divided by the beginning market value per
    share.


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