SOURCE: TICC Capital Corp.

May 06, 2008 08:00 ET

TICC Declares Second Quarter 2008 Distribution of $0.30 per Share and Reports Earnings for the Quarter Ended March 31, 2008

GREENWICH, CT--(Marketwire - May 6, 2008) - TICC Capital Corp. (NASDAQ: TICC) announced today that its Board of Directors has declared a distribution of $0.30 per share for the second quarter of 2008.

The dividend is payable as follows:

--  Payable Date: June 30, 2008
--  Record Date: June 16, 2008

In 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