SOURCE: Technology Investment Capital Corp.

May 05, 2005 08:00 ET

TICC Declares Second Quarter 2005 Dividend of $0.20 per Share and Reports Financial Results for the Quarter Ended March 31, 2005

GREENWICH, CT -- (MARKET WIRE) -- May 5, 2005 -- Technology Investment Capital Corp. (NASDAQ: TICC) announced today that its Board of Directors has declared a dividend of $0.20 per share for the second quarter of 2005.

The dividend is payable as follows:

--  Payable Date: June 30, 2005
--  Record Date: June 10, 2005
--  Ex Date: June 8, 2005
    
In addition, TICC announced today its financial results for the quarter ended March 31, 2005.

HIGHLIGHTS

-- We recorded net investment income of $2,805,410, or $0.23 per share for
   the first quarter.
-- We completed four transactions during the first quarter totaling $50.5
   million, of which $43.5 million was funded and $7 million was
   committed.
    -- $15 million investment in senior secured notes issued by WinZip
       Computing, Inc.
    -- $15 million investment in senior secured notes with warrants issued
       by Segovia, Inc.
    -- $5 million investment in senior secured notes with warrants and a
       $500,000 investment in convertible preferred stock issued by
       WHITTMANHART, Inc., as well as a commitment to fund an additional
       investment of $7 million in senior secured notes when the company
       achieves certain specified milestones.
    -- $8 million investment in senior secured notes issued by CrystalTech
       Web Hosting, Inc.
-- To date, we have closed two additional transactions during the second
   quarter of 2005, totaling $13 million
    -- On April 13, 2005, we announced the completion of a $6 million
       investment in senior unsecured notes and a $2 million investment in
       common stock issued by Falcon Communications, Inc.
    -- On May 3, 2005, we announced the completion of a $5 million
       investment in senior secured notes issued by Climax Group Inc.,
       and warrants issued by its parent, Climax Group Limited, which will
       also serve as a guarantor of the senior secured notes.
-- We have funded and committed approximately $166 million in 15
   transactions since January 2004.
-- At March 31, 2005, the weighted average yield of our debt investments
   (excluding cash equivalents) was approximately 10.5%.
We will host a conference call to discuss our first quarter results today, May 5th at 10:00 AM EDT. 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 148444.

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 and subsequent reports on Form 10-Q as they are filed.

TECHNOLOGY INVESTMENT CAPITAL CORP.
Balance Sheets

                                                March 31,     December 31,
                                                  2005           2004
                                               Unaudited        Audited
                                             --------------  -------------
ASSETS

  Investments, at fair value (cost:
   $125,471,170 @ 3/31/05; $82,124,730
   @ 12/31/04)                                $ 125,471,170  $  82,124,730
  Cash and cash equivalents                      57,510,041     57,317,398
  Cash and cash equivalents pledged to
   creditors                                      9,990,611              0
  Interest receivable - debt investments            708,244        489,431
  Interest receivable - cash and cash
   equivalents                                        5,174          7,538
  Prepaid expenses                                  137,706        102,696
  Other assets                                            0        460,666
                                              -------------  -------------

TOTAL ASSETS                                  $ 193,822,946  $ 140,502,459
                                              -------------  -------------


LIABILITIES AND STOCKHOLDERS' EQUITY

LIABILITIES
  Accrued expenses                            $   1,357,075  $     940,922
  Accrued offering expenses                          47,158        300,000
  Repurchase agreement                            9,989,000              0
                                              -------------  -------------

    Total Liabilities                            11,393,233      1,240,922
                                              -------------  -------------

STOCKHOLDERS' EQUITY
 Common stock, $0.01 par value,
  100,000,000 shares authorized, and
  13,323,431 and 10,157,848 issued and
  outstanding, respectively                         133,234        101,578
 Capital in excess of par value                 181,599,704    139,410,302
 Accumulated net investment income (loss)           696,775       (250,343)
                                              -------------  -------------

    Total Stockholders' Equity                  182,429,713    139,261,537
                                              -------------  -------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY    $ 193,822,946  $ 140,502,459
                                              -------------  -------------


TECHNOLOGY INVESTMENT CAPITAL CORP.
Statement of Operations (Unaudited)

                                             3 Months Ended  3 Months Ended
                                             March 31, 2005  March 31, 2004
                                              -------------  -------------

INVESTMENT INCOME
  Interest income - debt investments          $   3,194,512        176,997
  Interest income - cash and cash
   equivalents                                      345,112        286,190
  Other income                                      690,205        450,000
                                              -------------  -------------

    Total Investment Income                       4,229,829        913,187
                                              -------------  -------------

EXPENSES
  Salaries and benefits                              89,110         46,338
  Investment advisory fees                          799,644        689,182
  Professional fees                                 408,358         84,306
  Insurance                                          24,768         20,020
  Directors' fees                                    32,250         32,250
  Transfer agent and custodian fees                  32,650         21,706
  General and administrative                         37,639         64,982
                                              -------------  -------------

    Total Expenses                                1,424,419        958,784
                                              -------------  -------------

NET INVESTMENT INCOME (LOSS)                  $   2,805,410        (45,597)
                                              -------------  -------------

NET INCREASE (DECREASE) IN STOCKHOLDERS'
 EQUITY RESULTING FROM OPERATIONS             $   2,805,410        (45,597)
                                              -------------  -------------

Net increase (decrease) in stockholders'
 equity resulting from operations per
 common share:
  Basic and Diluted                           $        0.23  $      (0.005)
Weighted average shares of common
 stock outstanding:
  Basic and Diluted                              12,443,224     10,000,100


TECHNOLOGY INVESTMENT CAPITAL CORP.
Financial Highlights (Unaudited)

                                           3 Months Ended 3 Months Ended
                                              March 31,      March 31,
                                                2005           2004
                                           -------------  -------------
Per Share Data (1)

Net asset value at beginning of period     $       13.71  $       13.80
Net investment income (loss)                        0.23          (0.01)(2)
Distributions from net investment income           (0.14)         (0.10)
Effect of shares issued, net of offering
 expenses                                          (0.11)          0.00
                                           -------------  -------------
Net asset value at end of period           $       13.69  $       13.69
                                           -------------  -------------


Per share market value at beginning of
 period                                    $       15.01  $       15.55
Per share market value at end of period            14.95          14.59
Total return  (3)(4)                                0.01%         (5.53)%
Shares outstanding at end of period           13,323,431     10,000,100


Ratios/Supplemental Data

Net assets at end of period                $ 182,429,713  $ 136,924,020
Average net assets                         $ 167,291,396  $ 137,691,189
Ratio of expenses to average net
  assets-annualized                                 3.41%          2.74%
Ratio of net investment income
  to average net assets-annualized                  6.71%         (0.13)%


(1) Basic per share data.
(2) Represents per share net investment loss for the period ($.005),
    rounded.
(3) Amount not annualized.
(4) Total return equals the increase/decrease of the ending market
    value plus dividends divided by the beginning market value.
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

  • Contact:
    Matthew Bass
    203-983-5360