SOURCE: Technology Investment Capital Corp.

May 03, 2006 08:00 ET

TICC Declares Second Quarter 2006 Dividend of $0.30 per Share and Reports Earnings of $0.27 per Share for the Quarter Ended March 31, 2006

GREENWICH, CT -- (MARKET WIRE) -- May 3, 2006 -- Technology Investment Capital Corp. (NASDAQ: TICC) announced today that its Board of Directors has declared a dividend of $0.30 per share for the second quarter of 2006.

The dividend is payable as follows:

--  Payable Date: June 30, 2006
--  Record Date: June 9, 2006
    
In addition, TICC announced today its financial results for the quarter ended March 31, 2006.

HIGHLIGHTS

--  For the three months ended March 31, 2006, we recorded net investment
    income of $5,315,085, or approximately $0.27 per share, net unrealized
    depreciation on investments of $210,588 and a net realized gain on
    investments of $158,340.  In total, we had a net increase in
    stockholders' equity resulting from operations of $0.27 per share for
    the first quarter.
--  Investment activity for the first quarter amounted to $50.0 million,
    and consisted of 3 investments in new portfolio companies and 1
    additional investment in an existing portfolio company.
    --  $20 million investment in senior secured notes with warrants issued
        by Group 329, LLC (d/b/a "The CAPS Group").
    --  $10 million investment in senior secured notes issued by one of the
        largest Internet domain registrars.
    --  $5 million investment in senior secured notes issued by a leading
        provider of proprietary business-to-business real time information
        services.
    --  $15 million investment in senior secured notes issued by
        MortgageIT, Inc., an existing portfolio company.
--  At March 31, 2006, the weighted average yield of our debt investments
    (excluding cash equivalents) was approximately 11.0%.
    
SUBSEQUENT EVENTS
--  Effective April 11, 2006, we entered into an amended and restated
    credit facility with the Royal Bank of Canada and Branch Banking & Trust
    Company.  Under this agreement, we lowered the interest rate from our
    previous facility and have increased our revolving credit facility from $40
    million to $100 million, with each lender providing $50 million.
    
We will host a conference call to discuss our first quarter results today, Wednesday, May 3rd 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 200121.

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, 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 SHEETS
AS OF MARCH 31, 2006 AND DECEMBER 31, 2005
(UNAUDITED)

            ASSETS
                                         March 31, 2006  December 31, 2005
                                         --------------  -----------------

ASSETS
  Investments, at fair value
   (cost: $257,490,406 @ 3/31/06;
   $211,218,802 @ 12/31/05)                $257,459,818       $211,398,202
  Cash and cash equivalents                   9,808,343         55,811,584
  Cash and cash equivalents pledged
   to creditors                              24,918,750                  0
  Interest receivable                         2,011,392          2,025,931
  Securities sold not settled                         0            773,486
  Prepaid expense and other assets               52,483             98,615
                                           ------------       ------------
TOTAL ASSETS                               $294,250,786       $270,107,818
                                           ============       ============

     LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
  Investment advisory fee payable to
   affiliate                                  1,259,204          1,498,813
  Dividends payable                                   0          2,316,528
  Accrued expenses                              422,005            387,001
  Repurchase Agreement                       24,912,500                  0
                                           ------------       ------------
    Total Liabilities                        26,593,709          4,202,342
                                           ------------       ------------
STOCKHOLDERS' EQUITY
  Common stock, $0.01 par value,
   100,000,000 shares authorized,
   and 19,459,976 and 19,304,401 issued
   and outstanding, respectively                194,600            193,044
  Capital in excess of par value            266,178,531        263,885,376
  Unrealized (depreciation) appreciation
   on investments                               (30,588)           180,000
  Accumulated realized gains on
   investments                                1,897,355          1,739,015
  Accumulated undistributed
   (overdistributed)investment income          (582,821)           (91,959)
                                           ------------       ------------
    Total Stockholders' Equity              267,657,077        265,905,476
                                           ------------       ------------
TOTAL LIABILITIES AND STOCKHOLDERS'
 EQUITY                                    $294,250,786       $270,107,818
                                           ============       ============


Net asset value per share                        $13.75             $13.77


TECHNOLOGY INVESTMENT CAPITAL CORP.
STATEMENTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31,
2006 AND 2005
(UNAUDITED)

                                             Three Months    Three Months
                                                Ended           Ended
                                            March 31, 2006  March 31, 2005
                                            --------------  --------------
INVESTMENT INCOME
 Interest Income - debt investments              $6,028,432    $3,194,512
 Interest Income - cash and cash
  equivalents                                       353,981       345,112
 Other Income                                       826,077       690,205
                                               ------------   ------------
    Total Investment Income                       7,208,490     4,229,829
                                               ------------   ------------

EXPENSES
 Salaries and benefits                              130,182        89,110
 Investment advisory fees                         1,348,793       799,644
 Professional fees                                  294,575       408,358
 Insurance                                           20,257        24,768
 Directors' fees                                     32,250        32,250
 Transfer agent and custodian fees                   24,700        32,650
 General and administrative                          42,648        37,639
                                               ------------  ------------
    Total Expenses                                1,893,405     1,424,419
                                               ------------  ------------
NET INVESTMENT INCOME                             5,315,085     2,805,410
                                               ============  ============
NET UNREALIZED DEPRECIATION ON INVESTMENTS         (210,588)            0
                                               ============  ============
NET REALIZED GAINS ON INVESTMENTS                   158,340             0
                                               ============  ============
NET INCREASE IN STOCKHOLDERS' EQUITY
 RESULTING FROM OPERATIONS                       $5,262,837    $2,805,410
                                               ============  ============
Net increase in stockholders' equity resulting
 from operations per common share
   Basic and Diluted                              $     0.27   $     0.23
Weighted average shares of common stock
 outstanding:
    Basic and Diluted                             19,345,133   12,443,224



SEE ACCOMPANYING NOTES.



TECHNOLOGY INVESTMENT CAPITAL CORP.
FINANCIAL HIGHLIGHTS
FOR THE THREE MONTHS ENDED MARCH 31,
2006 AND 2005
(UNAUDITED)
                                             Three Months    Three Months
                                                Ended           Ended
                                            March 31, 2006  March 31, 2005
                                            --------------  --------------
Per Share Data
--------------
Net asset value at beginning of period         $     13.77    $     13.71
                                              ------------   ------------

Net investment income                                 0.27          0.23
Net realized and unrealized gains(1)                  0.01          0.00
Effect of shares issued, net of offering
 expenses                                             0.00         (0.11)
                                              ------------   ------------
Total from investment operations                      0.28          0.12
                                              ------------   ------------

Distributions from net investment income             (0.30)        (0.14)
                                              ------------  ------------

Net asset value at end of period               $     13.75   $     13.69
                                              ============  ============
Per share market value at beginning of
 period                                        $     15.10   $     15.01
Per share market value at end of period        $     14.54   $     14.95
Total return(2)(3)                                    (1.7%)        0.53%
Shares outstanding at end of period             19,459,976    13,323,431

Ratios/Supplemental Data
------------------------

Net assets at end of period                   $267,657,077  $182,429,713
Average net assets                            $267,415,139  $167,291,396
Ratio of expenses to average net assets -
 annualized                                          2.83%         3.41%
Ratio of net investment income to average net
 assets - annualized                                 7.95%         6.71%
  ___________________

  (1) Includes rounding adjustment to reconcile change in net asset value
      per share.
  (2) Amount not annualized.
  (3) Total return equals the increase or decrease of the ending market
      value over beginning market value, plus distributions divided by
      the beginning market value assuming dividend reinvestment at
      prices obtained under the Company's dividend reinvestment plan.
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 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:
    Patrick F. Conroy
    203-983-5282