-- Payable Date: March 31, 2008
-- Record Date: March 21, 2008
In addition, TICC announced today its financial results for the year ended
December 31, 2007.
HIGHLIGHTS
-- For the year ended December 31, 2007, we recorded approximately
$43.8 million of total investment income and $27.2 million of net
investment income compared to $35.9 million of total investment income
and $25.4 million of net investment income for the year ended
December 31, 2006, an increase of approximately 22.0% and 7.1%,
respectively.
-- Net investment income for the fourth quarter of 2007 was approximately
$6.9 million or $0.32 per share, down 10.4% from the same quarter in
2006; in addition to the net investment income we had a net unrealized
depreciation on investments of approximately $4.5 million and net
realized losses on investments of approximately $12.6 million,
resulting in a net decrease in net assets resulting from operations of
approximately $0.50 per share for the fourth quarter of 2007.
-- We recorded unrealized depreciation on our investments in
Pulvermedia, LLC ($10.6 million), Group 329, LLC tranche A notes
($2.4 million), Power Tools, Inc. ($1.8 million) and GenuTec
Business Solutions, Inc. ($1.5 million), based primarily upon the
operating performance and financial condition of these companies,
and net unrealized depreciation for several of our broadly
syndicated loan investments of approximately $1.7 million. Our debt
investment in Pulvermedia was placed on non-accrual status as of
December 31, 2007.
-- We had net realized losses of approximately $12.6 million due
primarily to the full redemption and restructuring of the GenuTec
note of approximately $13.4 million. (During the fourth quarter, we
had unrealized appreciation of approximately $13.4 million
resulting from the reversal of prior periods' unrealized
depreciation for GenuTec.)
-- Investment originations for the fourth quarter amounted to
approximately $46.2 million, and consisted of 2 investments in new
portfolio companies and additional debt investments in 3 existing
portfolio companies. The significant investments were as follows:
-- $20.0 million investment in senior secured notes issued by Palm,
Inc.
-- $15.0 million investment in senior secured notes issued by GXS
Worldwide, Inc.
-- $7.2 million investment in senior secured notes issued by 3001,
Inc., an existing portfolio company
-- At December 31, 2007, 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
11.3%.
-- Expenses for the quarter were approximately $5.4 million, including
approximately $2.4 million in interest expense, reflecting outstanding
borrowings under our credit facility and approximately $2.1 million in
investment advisory fees.
-- At December 31, 2007, approximately $136.5 million was outstanding
under our credit facility.
-- As of March 12, 2008, we had approximately $141.5 million
outstanding under our credit facility.
SUBSEQUENT EVENTS
-- As of January 31, 2008, we amended our existing revolving Credit
Facility, extending the termination date to January 29, 2009. Royal Bank of
Canada ("RBC") remains agent under the Facility and each of RBC and Branch
Banking & Trust Company remain a lender with a commitment of $75,000,000,
for a total commitment of $150,000,000; Commerzbank AG was removed as a
lender. Under the terms of the amended Credit Facility, drawdowns will
continue to bear interest on the same terms as the previous arrangement,
which is generally 1.75% over LIBOR.
-- The Board of Directors declared, on March 11, 2008, a cash
distribution of $0.36 per share payable March 31, 2008 to holders of record
on March 21, 2008.
We will host a conference call to discuss our fourth quarter results today,
Thursday, March 13th 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 416929.
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 when it becomes available, and
subsequent reports on Form 10-Q as they are filed.
TICC CAPITAL CORP.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
December 31, December 31,
2007 2006
------------- -------------
ASSETS
Investments, at fair value (cost:
$411,125,347 @ 12/31/07; $325,660,997
@ 12/31/06)
Non-affiliated/non-control investments
($389,288,207 @ 12/31/07; $303,409,875
@ 12/31/06) $ 360,530,609 $ 303,933,738
Control investments (cost: $21,837,140
@ 12/31/07; $22,251,122 @ 12/31/06) 24,837,140 22,251,122
------------- -------------
Total investments at fair value 385,367,749 326,184,860
------------- -------------
Cash and cash equivalents 7,944,608 5,181,512
Interest receivable 2,876,424 3,216,305
Prepaid expenses and other assets 201,372 237,069
------------- -------------
Total assets $ 396,390,153 $ 334,819,746
============= =============
LIABILITIES
Investment advisory fee payable to
affiliate $ 2,123,168 $ 1,995,517
Dividends payable 0 2,364,699
Accrued interest payable 310,312 458,507
Accrued expenses 87,170 165,678
Loans payable 136,500,000 58,500,000
------------- -------------
Total liabilities 139,020,650 63,484,401
------------- -------------
NET ASSETS
Common stock, $0.01 par value, 100,000,000
shares authorized, and 21,563,717 and
19,705,824 issued and outstanding,
respectively 215,637 197,058
Capital in excess of par value 296,578,543 269,909,732
Net unrealized (depreciation) appreciation
on investments (25,757,598) 523,863
Accumulated net realized (losses) gains on
investments (13,389,509) 320,139
Distributions (in excess of) less than
investment income (277,570) 384,553
------------- -------------
Total net assets 257,369,503 271,335,345
------------- -------------
Total liabilities and net assets $ 396,390,153 $ 334,819,746
============= =============
Net asset value per common share $ 11.94 $ 13.77
TICC CAPITAL CORP.
STATEMENTS OF OPERATIONS (UNAUDITED)
Year Ended Year Ended Year Ended
December 31, December 31, December 31,
2007 2006 2005
------------ ------------ ------------
INVESTMENT INCOME
From non-affiliated/non-control
investments:
Interest income - debt
investments $ 37,913,611 $ 30,490,365 $ 17,162,052
Interest income - cash and cash
equivalents 655,859 682,760 1,022,852
Other income 1,956,141 3,342,713 3,615,633
------------ ------------ ------------
Total investment income from
non-affiliated/non-control
investments 40,525,611 34,515,838 21,800,537
------------ ------------ ------------
From control investments:
Interest income - debt
investments 3,316,202 1,031,389 0
Other income 0 400,000 0
------------ ------------ ------------
Total investment income from
control investments 3,316,202 1,431,389 0
------------ ------------ ------------
Total investment income 43,841,813 35,947,227 21,800,537
------------ ------------ ------------
EXPENSES
Compensation expense 897,740 712,301 724,784
Investment advisory fees 7,461,735 6,240,055 4,345,637
Professional fees 1,010,140 1,059,918 1,102,255
Interest expense 6,313,859 1,896,903 546,516
General and administrative 964,720 637,232 696,223
------------ ------------ ------------
Total expenses 16,648,194 10,546,409 7,415,415
------------ ------------ ------------
Net investment income 27,193,619 25,400,818 14,385,122
------------ ------------ ------------
Net change in unrealized
appreciation or depreciation on
investments (26,281,461) 343,863 180,000
------------ ------------ ------------
Net realized (losses) gains on
investments (12,560,990) 586,491 1,739,015
------------ ------------ ------------
Net (decrease) increase in net
assets resulting from operations $(11,648,832) $ 26,331,172 $ 16,304,137
============ ============ ============
Net increase in net assets
resulting from net investment
income per common share:
Basic and diluted $ 1.32 $ 1.30 $ 1.07
Net (decrease) increase in net
assets resulting from operations
per common share:
Basic and diluted $ (0.57) $ 1.35 $ 1.21
Weighted average shares of common
stock outstanding:
Basic and diluted 20,546,307 19,491,588 13,459,343
TICC CAPITAL CORP.
FINANCIAL HIGHLIGHTS (UNAUDITED)
Period
from July
21, 2003
(Inception)
Year ended Year ended Year ended Year ended through
December December December December December
31, 2007 31, 2006 31, 2005 31, 2004 31, 2003
---------- ---------- ---------- ---------- ----------
Per Share Data
--------------
Net asset value
at beginning
of period $ 13.77 $ 13.77 $ 13.71 $ 13.80 $ 15.00
---------- ---------- ---------- ---------- ----------
Net investment
income (loss)(1) 1.32 1.30 1.07 0.33 (0.06)
Net realized
and unrealized
capital gains
(losses)(2) (1.76) 0.05 0.14 0.01 0.00
Effect of shares
issued, net of
offering expenses 0.05 0.03 (0.14) 0.00 (1.14)
---------- ---------- ---------- ---------- ----------
Total from
investment
operations (0.39) 1.38 1.07 0.34 (1.20)
---------- ---------- ---------- ---------- ----------
Dividends from
net investment
income (1.37) (1.28) (1.01) (0.33) (0.00)
Distributions
from net realized
capital gains (0.05) (0.10) (0.00) (0.00) (0.00)
Tax return of
capital
distributions (0.02) (0.00) (0.00) (0.10) (0.00)
---------- ---------- ---------- ---------- ----------
Total
distributions(3) (1.44) (1.38) (1.01) (0.43) (0.00)
---------- ---------- ---------- ---------- ----------
Net asset value
at end of
period $ 11.94 $ 13.77 $ 13.77 $ 13.71 $ 13.80
========== ========== ========== ========== ==========
Per share
market value
at beginning
of period $ 16.14 $ 15.10 $ 15.01 $ 15.55 $ 15.00
Per share market
value at end of
period $ 9.23 $ 16.14 $ 15.10 $ 15.01 $ 15.55
Total return(4) (36.26%) 17.02% 7.47% (0.71%) 3.67%
Shares outstanding
at end of
period 21,563,717 19,705,824 19,304,401 10,157,848 10,000,100
Ratios/Supplemental Data
------------------------
Net assets at
end of period
(000's) $ 257,370 $ 271,335 $ 265,905 $ 139,262 $ 137,970
Average net
assets (000's) 277,994 270,309 184,715 137,568 28,703
Ratio of
expenses to
average net
assets 5.99% 3.90% 4.00% 2.90% 2.40%
Ratio of
expenses,
excluding
interest
expense,
to average
net assets 3.72% 3.20% 3.72% 2.90% 2.40%
Ratio of net
investment
income to
average net
assets 9.78% 9.40% 7.80% 2.40% (2.00%)
(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) For tax purposes, distributions for 2007 were funded from
undistributed net investment income and realized capital gains from
2006, as well as current net investment income and realized capital
gains, and included a tax return of capital. 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. For the year ending December 31, 2007 approximately
$0.02 per share of the Company's distributions were 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.
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