SOURCE: Technology Investment Capital Corp.

August 04, 2005 08:00 ET

TICC Declares Third Quarter 2005 Dividend of $0.25 per Share and Reports Financial Results for the Quarter Ended June 30, 2005

GREENWICH, CT -- (MARKET WIRE) -- August 4, 2005 -- Technology Investment Capital Corp. (NASDAQ: TICC) announced today that its Board of Directors has declared a dividend of $0.25 per share for the third quarter of 2005.

The dividend is payable as follows:

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

HIGHLIGHTS

-- We recorded net investment income of $3,290,552, or $0.25 per share for
   the second quarter.

-- Investment activity for the second quarter amounted to $37.5 million,
   and consisted of 3 investments in new portfolio companies and 2
   drawdowns on commitments to existing portfolio companies.

    -- $6 million investment in senior unsecured notes and a $2 million
       investment in common stock issued by Falcon Communications, Inc.

    -- $5 million investment in senior secured notes issued by Climax
       Group Inc., and warrants issued by its parent, Climax Group Limited,
       which also serves as a guarantor of the senior secured notes.

    -- $13.5 million investment in senior secured notes with warrants
       issued by Willow CSN Incorporated.

    -- $6 million investment in additional senior secured notes with
       warrants issued by The Endurance International Group.

    -- $5 million investment in additional senior secured notes with
       warrants issued by Exact Advertising, LLC.

-- At June 30, 2005, the weighted average yield of our debt investments
   (excluding cash equivalents) was approximately 10.6%.

-- On May 18, 2005 we entered into an uncommitted $35 million senior
   secured revolving credit facility with HVB Group (Bayerische Hypo-Und
   Vereinsbank, A.G.), as administrative agent and a lender. The facility
   will supplement our equity capital and provide funding for additional
   portfolio investments, as well as general corporate purposes.  As of
   June 30, 2005 we had not borrowed under this facility.
We will host a conference call to discuss our second quarter results today, August 4th 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 161742.

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 March 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 SHEET

                               ASSETS
                                                 June 30,    December 31,
                                                   2005          2004
                                               ------------  ------------
                                               (Unaudited)    (Audited)

ASSETS
  Investments, at fair value (cost:
   $146,930,982 @ 6/30/05; $82,124,730
   @ 12/31/04)                                 $146,930,982  $ 82,124,730
  Cash and cash equivalents                      50,200,654    57,317,398
  Cash and cash equivalents pledged
   to creditors                                  19,991,000             0
  Interest receivable - debt investments          1,047,195       489,431
  Interest receivable - cash and cash
   equivalents                                        7,614         7,538
  Prepaid expenses                                   73,845       102,696
  Other assets                                      298,109       460,666
                                               ------------  ------------
TOTAL ASSETS                                   $218,549,399  $140,502,459
                                               ============  ============

                 LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
  Accrued expenses                             $  1,382,052  $    940,922
  Accrued offering expenses                               0       300,000
  Repurchase agreement                           19,592,453             0
  Securities purchased not settled               13,500,000             0
                                               ------------  ------------
    Total Liabilities                            34,474,505     1,240,922
                                               ------------  ------------
STOCKHOLDERS' EQUITY
  Common stock, $0.01 par value,
   100,000,000 shares authorized, and
   13,392,304 and 10,157,848 issued and
   outstanding, respectively                        133,923       101,578
  Capital in excess of par value                182,618,330   139,410,302
  Accumulated net investment income (loss)        1,322,641      (250,343)
                                               ------------  ------------
    Total Stockholders' Equity                  184,074,894   139,261,537
                                               ------------  ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY     $218,549,399  $140,502,459
                                               ============  ============

Net Asset Value per Share                      $      13.74  $      13.71


TECHNOLOGY INVESTMENT CAPITAL CORP.
STATEMENT OF OPERATIONS (UNAUDITED)

                    Three Months  Three Months   Six Months    Six Months
                       Ended         Ended         Ended         Ended
                      June 30,      June 30,      June 30,      June 30,
                        2005          2004          2005          2004
                    ------------  ------------  ------------  ------------
INVESTMENT INCOME
  Interest income -
   debt investments $  3,662,922  $    926,142  $  6,857,434  $  1,103,139

  Interest income -
   cash and cash
   equivalents           290,003       237,316       635,115       523,506
  Other income           766,064        80,000     1,456,269       530,000
                    ------------  ------------  ------------  ------------
    Total
     Investment
     Income            4,718,989     1,243,458     8,948,818     2,156,645
                    ------------  ------------  ------------  ------------
EXPENSES
  Salaries and
   benefits              102,341        51,800       191,451        98,138
  Investment
   advisory fees         934,839       689,767     1,734,483     1,378,949
  Professional
   fees                  221,500       117,588       629,858       201,894
  Insurance               25,232        20,020        50,000        40,040
  Directors' fees         32,250        38,250        64,500        70,500
  Transfer agent
   and custodian
   fees                   15,686        20,481        48,336        41,787
  General and
   administrative         96,589        30,493       134,228        95,875
                    ------------  ------------  ------------  ------------
    Total Expenses     1,428,437       968,399     2,852,856     1,927,183
                    ------------  ------------  ------------  ------------
NET INVESTMENT
 INCOME             $  3,290,552  $    275,059  $  6,095,962  $    229,462
                    ============  ============  ============  ============
NET INCREASE IN
 STOCKHOLDERS'
 EQUITY RESULTING
 FROM OPERATIONS    $  3,290,552  $    275,059  $  6,095,962  $    229,462
                    ============  ============  ============  ============

Net increase in
 stockholders'
 equity resulting
 from operations
 per common share:
  Basic and Diluted $       0.25  $       0.03  $       0.47  $       0.02
Weighted average
 shares of common
 stock outstanding:
  Basic and Diluted   13,324,188    10,044,459    12,886,140    10,022,279


TECHNOLOGY INVESTMENT CAPITAL CORP.
FINANCIAL HIGHLIGHTS (UNAUDITED)

                    Three Months   Three Months  Six Months    Six Months
                        Ended         Ended        Ended         Ended
                    June 30, 2005 June 30, 2004 June 30, 2005 June 30, 2004
                    ------------  ------------  ------------  ------------
Per Share Data
Net asset value at
 beginning of
 period             $      13.69  $      13.69  $      13.71  $      13.80
Net investment
 income                     0.25          0.03          0.47          0.02
Net realized and
 unrealized
 gains (1)                  0.00          0.00          0.01          0.00
Distributions from
 net investment
 income                    (0.20)        (0.11)        (0.34)        (0.21)
Effect of shares
 issued, net of
 offering expenses          0.00          0.00         (0.11)         0.00
                    ------------  ------------  ------------  ------------
Net asset value at
 end of period      $      13.74  $      13.61  $      13.74  $      13.61
                    ============  ============  ============  ============
Per share market
 value at beginning
 of period          $      14.95  $      14.59  $      15.01  $      15.55
Per share market
 value at end of
 period                    14.80         13.51         14.80         13.51
Total return (2)(3)          0.3%        (6.6%)          0.9%       (11.8%)
Shares outstanding
 at end of period     13,392,304    10,092,712    13,392,304    10,092,712

Ratios/Supplemental
 Data
Net assets at end
 of period          $184,074,894  $137,407,146  $184,074,894  $137,407,146
Average net
 assets             $182,402,405  $137,860,850  $174,888,648  $137,776,019
Ratio of expenses
 to average net
 assets -
 annualized                 3.13%         2.81%         3.26%         2.80%
Ratio of net
 investment
 income to
 average net
 assets -
 annualized                 7.22%         0.80%         6.97%         0.33%

(1) Represents rounding adjustment to reconcile change in net asset value
    per share; there were no actual realized or unrealized gains or losses
    for the periods presented.
(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

  • Contact:
    Matthew Bass
    203-983-5360