-- Payable Date: June 30, 2008 -- Record Date: June 16, 2008In addition, TICC announced today its financial results for the quarter ended March 31, 2008.
HIGHLIGHTS
-- For the quarter ended March 31, 2008, we recorded approximately
$11.5 million of total investment income and $6.3 million of net
investment income compared to $9.9 million of total investment income
and $6.6 million of net investment income for the quarter ended
March 31, 2007, an increase of approximately 16.0% and a decrease of
approximately 5.4%, respectively.
-- We had net unrealized depreciation on investments of approximately
$22.4 million for the quarter ended March 31, 2008, resulting in a net
decrease in net assets resulting from operations of approximately $0.75
per share for the first quarter 2008. Despite this unrealized
depreciation, as of March 31, 2008 all but three of the loans in our
portfolio were currently paying as agreed.
-- The net unrealized depreciation on investments of approximately
$22.4 million, which we recorded for the quarter ended March 31,
2008, reflects fair value adjustments across most of our portfolio.
These adjustments reflect changes in the current interest rate
environment, credit markets generally, as well as the financial
performance of our various portfolio companies. The most
significant of these adjustments included the following items:
-- Unrealized depreciation on our debt investments in CAPS Group
term A and B notes of approximately $7.0 million
-- Unrealized depreciation on WHITTMANHART, Inc. of approximately
$3.6 million;
-- Unrealized depreciation of approximately $3.1 million on our
debt investment in Palm, Inc;
-- Unrealized gain on Pulvermedia, Inc. associated with our
recovery of approximately $1.7 million;
-- Unrealized gain on Algorithmic Implementations, Inc. of
approximately $1.7 million.
-- Investment originations for the first quarter amounted to approximately
$17.5 million, and consisted of additional debt investments in existing
portfolio companies. The significant investments were as follows:
-- $10.5 million investment in senior secured notes issued by
NetQuote, Inc.
-- $3.0 million investment in senior secured notes issued by Hyland
Software, Inc.
-- $3.0 million investment in senior secured notes issued by Integra
Telecomm, Inc.
-- At March 31, 2008, 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 10.5%.
-- Expenses for the quarter were approximately $5.2 million, including
approximately $2.1 million in interest expense, reflecting outstanding
borrowings under our credit facility, and approximately $2.2 million in
investment advisory fees.
-- At March 31, 2008, approximately $141.3 million was outstanding
under our credit facility.
-- As of May 5, 2008, we had approximately $125.0 million outstanding
under our credit facility.
SUBSEQUENT EVENTS
-- On April 10, 2008, $14.5 million of senior unsecured notes and $300,000
of warrants to purchase common stock of Aviel Services, Inc. was fully
repaid. TICC realized a gain of approximately $1.6 million on this
transaction.
-- On May 1, 2008, the Board of Directors declared a dividend of $0.30 per
share for the second quarter, payable on June 30, 2008 to shareholders
of record as of June 16, 2008.
We will host a conference call to discuss our first quarter results today,
Tuesday, May 6th 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 419244.
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, and subsequent reports on Form 10-Q
as they are filed.
TICC CAPITAL CORP.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
March 31, December 31,
2008 2007
------------- -------------
ASSETS (unaudited)
Investments, at fair value (cost:
$409,492,206 @ 3/31/08; $411,125,347 @
12/31/07)
Non-affiliated/non-control
investments ($387,953,220 @ 3/31/08;
$389,288,207 @ 12/31/07) $ 335,085,212 $ 360,530,609
Control investments (cost:
$21,538,986 @ 3/31/08; $21,837,140 @
12/31/07) 26,250,000 24,837,140
------------- -------------
Total investments at fair
value 361,335,212 385,367,749
------------- -------------
Cash and cash
equivalents 14,132,094 7,944,608
Interest receivable 2,530,836 2,876,424
Prepaid expenses and other assets 460,919 201,372
------------- -------------
Total assets $ 378,459,061 $ 396,390,153
============= =============
LIABILITIES
Investment advisory fee payable to
affiliate $ 2,179,856 $ 2,123,168
Accrued interest payable 224,740 310,312
Accrued expenses 281,356 87,170
Loans payable 141,333,334 136,500,000
------------- -------------
Total liabilities 144,019,286 139,020,650
------------- -------------
NET ASSETS
Common stock, $0.01 par value,
100,000,000 shares authorized, and
21,696,133 and 21,563,717 issued and
outstanding, respectively 216,961 215,637
Capital in excess of par value 297,572,989 296,578,543
Net unrealized depreciation on
investments (48,156,994) (25,757,598)
Accumulated net realized losses on
investments (13,423,328) (13,389,509)
Distributions in excess of investment
income (1,769,853) (277,570)
------------- -------------
Total net assets 234,439,775 257,369,503
------------- -------------
Total liabilities and net
assets $ 378,459,061 $ 396,390,153
============= =============
Net asset value per common share $ 10.81 $ 11.94
TICC CAPITAL CORP.
STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Three Months
Ended Ended
March 31, March 31,
2008 2007
------------- -------------
INVESTMENT INCOME
From non-affiliated/non-control investments:
Interest income - debt investments $ 10,449,524 $ 8,658,400
Interest income - cash and cash equivalents 55,992 121,519
Other income 207,780 280,250
------------- -------------
Total investment income from
non-affiliated/non-control investments 10,713,296 9,060,169
------------- -------------
From control investments:
Interest income - debt investments 766,527 836,691
Other income 0 0
------------- -------------
Total investment income from control
investments 766,527 836,691
------------- -------------
Total investment income 11,479,823 9,896,860
------------- -------------
EXPENSES
Compensation expense 222,000 200,000
Investment advisory fees 2,179,855 1,641,555
Professional fees 349,927 251,185
Interest expense 2,061,437 1,004,226
General and administrative 395,948 171,741
------------- -------------
Total expenses 5,209,167 3,268,707
------------- -------------
Net investment income 6,270,656 6,628,153
------------- -------------
Net change in unrealized appreciation or
depreciation on investments (22,399,396) (3,025,461)
------------- -------------
Net realized (losses) gains on investments (33,819) (143,207)
------------- -------------
Net (decrease) increase in net assets
resulting from operations $ (16,162,559) $ 3,459,485
============= =============
Net increase in net assets resulting from net
investment income per common share:
Basic and diluted $ 0.29 $ 0.34
Net (decrease) increase in net assets
resulting from operations per common share:
Basic and diluted $ (0.75) $ 0.18
Weighted average shares of common stock
outstanding:
Basic and diluted 21,565,172 19,732,312
TICC CAPITAL CORP.
FINANCIAL HIGHLIGHTS (UNAUDITED)
Three Months Three Months
Ended Ended
March 31, March 31,
2008 2007
----------- ------------
Per Share Data
Net asset value at beginning of period $ 11.94 $ 13.77
----------- ------------
Net investment income (loss)(1) 0.29 0.34
Net realized and unrealized capital gains
(losses) (2) (1.03) (0.17)
Effect of shares issued, net of offering
expenses (0.03) 0.02
----------- ------------
Total from investment operations (0.77) 0.19
----------- ------------
Total distributions(3) (0.36) (0.36)
----------- ------------
Net asset value at end of period $ 10.81 $ 13.60
=========== ============
Per share market value at beginning of period $ 9.23 $ 16.14
Per share market value at end of period $ 7.52 $ 16.91
Total return(4) (14.63)% 7.00%
Shares outstanding at end of period 21,696,133 19,810,567
Ratios/Supplemental Data
Net assets at end of period (000's) $ 234,440 $ 269,444
Average net assets (000's) 260,134 273,558
Ratio of expenses to average net assets(5) 8.01 % 4.78%
Ratio of expenses, excluding interest expense,
to average net assets(5) 4.84 % 3.31%
Ratio of net investment income to average net
assets(5) 9.64 % 9.69%
(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) Management monitors available taxable earnings, including net
investment income and realized capital gains, to determine if a tax
return of capital may occur for the year. 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.
However, if the character of such distributions were determined as of
March 31, 2008, approximately $0.07 per share of the Company’s
distributions for 2008 would have been 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.
(5) 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