TICC Announces Results of Operations for the Quarter Ended March 31, 2014 and Announces Quarterly Distribution of $0.29 per Share

GREENWICH, CT--(Marketwired - May 12, 2014) -  TICC Capital Corp. (NASDAQ: TICC) announced today its financial results for the quarter ended March 31, 2014, and a distribution of $0.29 per share for the second quarter of 2014.

HIGHLIGHTS

• For the quarter ended March 31, 2014, we recorded net investment income of approximately $17.8 million, or approximately $0.33 per share. Excluding the impact of a capital gains incentive fee accrual reversal of approximately $2.2 million, our core net investment income⁽¹⁾ was approximately $15.6 million, or approximately $0.29 per share. In the first quarter, we also recorded net realized capital losses of approximately $0.9 million and net unrealized depreciation of approximately $3.6 million (which includes the reversal of net unrealized appreciation associated with the first quarter realization events). In total, we had a net increase in net assets resulting from operations of approximately $13.3 million or approximately $0.24 per share for the first quarter.
  
  
  • Total investment income for the first quarter of 2014 amounted to approximately $28.7 million, which represents a decrease of approximately $1.8 million from the fourth quarter of 2013.
    
    
    • For the quarter ended March 31, 2014, we recorded investment income from our portfolio as follows:
      • approximately $12.5 million from our syndicated and bilateral investments,
      • approximately $15.1 million from our CLO equity investments,
      • approximately $0.5 million from our CLO debt investments, and
      • approximately $0.6 million from all other sources.
        
        
  • Our weighted average credit rating on a fair value basis was 2.2 at the end of the first quarter of 2014 (compared to 2.1 at the end of the fourth quarter of 2013).
    
    
• Our operating expenses before the capital gains incentive fee for the quarter ended March 31, 2014 were approximately $11.4 million, down from the fourth quarter of 2013 by approximately $1.2 million.
  
  
• The capital gains incentive fee calculation for the quarter ended March 31, 2014, resulted in an accrual reversal of approximately $2.2 million. The capital gains incentive fee accrual, as reported under generally accepted accounting principles, is calculated on the basis of net realized and unrealized gains and losses at the end of each period. The accrued capital gains incentive fee related to the hypothetical liquidation of the portfolio (and assuming no other changes in realized or unrealized gains and losses) would only have become payable on March 31, 2014 to our investment adviser in the event of a complete liquidation of our portfolio as of period end and the termination of our Investment Advisory Agreement ("Advisory Agreement").
  
  The amount of the capital gains incentive fee, if any, which will actually be payable is determined in accordance with the terms of our Advisory Agreement and is calculated as of the end of each calendar year (or upon termination of the Advisory Agreement). The terms of our Advisory Agreement state that the capital gains incentive fee calculation is based on net realized gains, if any, offset by gross unrealized depreciation for the calendar year. No effect is given to gross unrealized appreciation in this calculation.
  
  
• Our Board of Directors has declared a distribution of $0.29 per share for the second quarter of 2014.
  • Payable Date: June 30, 2014
  • Record Date: June 16, 2014
    
    
• During the first quarter of 2014, we made approximately $87.0 million in additional investments. The additional investments consisted of approximately $58.6 million in corporate securities and $28.4 million in collateralized loan obligation, or "CLO," equity.
  
  
  • For the first quarter of 2014, we received proceeds of approximately $55.4 million from repayments, sales and amortization payments on our debt investments. 
    
    
• As of March 31, 2014, the weighted average yield of our income producing investments on a cost basis was approximately 12.9%, compared with 13.2% as of December 31, 2013. At March 31, 2014, we had one investment on non-accrual status with a fair value of approximately $3.5 million.
  
  
• As of March 31, 2014, net asset value per share was $9.78 compared with the net asset value per share as of December 31, 2013 of $9.85. 
  
  

⁽¹⁾ Supplemental Information Regarding Core Net Investment Income

On a supplemental basis, we provide information relating to core net investment income which is a non-GAAP measure. This measure is provided in addition to, but not as a substitute for, net investment income. Core net investment income represents net investment income excluding our capital gains incentive fee. As the capital gains incentive fee, for generally accepted accounting purposes, is based on the hypothetical liquidation of the entire portfolio (and as any capital gains incentive fee may be non-recurring), we believe that core net investment income is a useful indicator of operations exclusive of any capital gains incentive fee. We note that such amount is excluded from the core net investment income amount presented below.

The following table provides a reconciliation of net investment income to core net investment income for the three months ended March 31, 2014:

		Three Months Ended March 31, 2014
		Amount				Per Share Amounts
Net investment income		$	17,758,187			$	0.33
Capital gains incentive fee			(2,178,731	)			(0.04	)
Core net investment income		$	15,579,456			$	0.29

We will host a conference call to discuss our fourth quarter and year end results today, Monday, May 12, 2014 at 10:00 AM ET. Please call 888-317-6016 to participate. A replay of the conference call will be available for approximately 30 days. The replay number is 877-344-7529, and the replay passcode is 10045654.

A presentation containing further detail regarding our year-end and quarterly results of operations has been posted under the Investor Relations section of our website at www.ticc.com.

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, 2013, and subsequent reports on Form 10-Q as they are filed.

TICC CAPITAL CORP.
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
				March 31, 2014				December 31, 2013
ASSETS
	Non-affiliated/non-control investments (cost: $933,480,317 @ 3/31/14; $901,728,071 @ 12/31/13)			$	944,447,895			$	915,546,744
	Control investments (cost: $16,900,000 @ 3/31/14; $16,900,000 @ 12/31/13)				15,310,000				16,050,000
		Total investments at fair value (cost: $950,380,317 @ 3/31/14; $918,628,071 @ 12/31/13)			959,757,895				931,596,744
	Cash and cash equivalents				74,574,917				14,933,074
	Restricted cash				40,952,607				32,428,248
	Deferred debt issuance costs				7,673,573				7,985,580
	Interest and distributions receivable				10,494,070				11,133,972
	Other assets				115,925				88,122
			Total assets	$	1,093,568,987			$	998,165,740
LIABILITIES
	Accrued interest payable			$	4,687,607			$	2,596,893
	Investment advisory fee payable to affiliate				6,631,426				7,144,480
	Accrued capital gains incentive fee to affiliate				1,694,121				3,872,853
	Securities purchased not settled				39,511,310				6,994,852
	Accrued expenses				1,111,221				637,896
	Notes payable - TICC CLO LLC, net of discount				100,080,371				100,041,226
	Notes payable - TICC CLO 2012-1 LLC, net of discount				235,743,534				235,635,114
	Convertible senior notes payable				115,000,000				115,000,000
			Total liabilities		504,459,590				471,923,314
COMMITMENTS AND CONTINGENCIES (Note 14)
NET ASSETS
	Common stock, $0.01 par value, 100,000,000 shares authorized, and 60,213,623 and 53,400,745 issued and outstanding, respectively				602,136				534,007
	Capital in excess of par value				628,319,194				561,336,766
	Net unrealized appreciation on investments				9,377,578				12,968,673
	Accumulated net realized losses on investments				(46,346,196	)			(45,439,234	)
	Distributions in excess of investment income				(2,843,315	)			(3,157,786	)
			Total net assets		589,109,397				526,242,426
			Total liabilities and net assets	$	1,093,568,987			$	998,165,740
Net asset value per common share				$	9.78			$	9.85

TICC CAPITAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
					Three Months Ended March 31, 2014				Three Months Ended March 31, 2013
INVESTMENT INCOME
From non-affiliated/non-control investments:
	Interest income - debt investments				$	12,658,228			$	11,903,677
	Distributions from securitization vehicles and equity investments					15,051,235				8,753,204
	Commitment, amendment fee income and other income					605,619				714,516
		Total investment income from non-affiliated/non-control investments				28,315,082				21,371,397
From control investments:
	Interest income - debt investments					341,766				360,062
	Distributions from equity investments					-				-
	Total investment income from control investments					341,766				360,062
		Total investment income				28,656,848				21,731,459
EXPENSES
	Compensation expense					415,203				311,065
	Investment advisory fees					4,956,646				4,097,471
	Professional fees					730,438				637,188
	Interest expense and other debt financing expenses					4,907,648				4,278,827
	General and administrative					392,678				288,041
		Total expenses before incentive fees				11,402,613				9,612,592
	Net investment income incentive fees					1,674,779				1,252,310
	Capital gains incentive fees					(2,178,731	)			215,354
		Total incentive fees				(503,952	)			1,467,664
		Total expenses				10,898,661				11,080,256
Net investment income						17,758,187				10,651,203
Net change in unrealized appreciation on investments
	Non-Affiliate/non-control investments					(2,851,095	)			3,614,668
	Control investments					(740,000	)			-
		Total net change in unrealized appreciation on investments				(3,591,095	)			3,614,668
Net realized (losses) gains on investments
	Non-Affiliate/non-control investments					(906,962	)			6,576,175
	Control investments					-				-
		Total realized (losses) gains on investments				(906,962	)			6,576,175
Net increase in net assets resulting from operations					$	13,260,130			$	20,842,046
Net increase in net assets resulting from net investment income per common share:
			Basic		$	0.33			$	0.23
			Diluted		$	0.30			$	0.22
Net increase in net assets resulting from operations per
common share:
			Basic		$	0.24			$	0.46
			Diluted		$	0.23			$	0.41
Weighted average shares of common stock outstanding:
			Basic			54,376,444				45,565,784
			Diluted			64,409,596				55,598,936
Dividends Declared Per Share					$	0.29			$	0.29

TICC CAPITAL CORP.
FINANCIAL HIGHLIGHTS (UNAUDITED)
			Three Months Ended March 31, 2014 (unaudited)				Three Months Ended March 31, 2013 (unaudited)
Per Share Data
Net asset value at beginning of period			$	9.85			$	9.90
Net investment income(1)				0.33				0.23
Net realized and unrealized capital gains (2)				(0.09	)			0.23
Total from net investment operations				0.24				0.46
Distributions per share from net investment income				(0.29	)			(0.29	)
Distributions based on weighted average share impact				(0.02	)			(0.05	)
Total distributions(3)				(0.31	)			(0.34	)
Effect of shares issued, net of offering expenses				-				-
Net asset value at end of period			$	9.78			$	10.02
Per share market value at beginning of period			$	10.34			$	10.12
Per share market value at end of period			$	9.78			$	9.95
Total return(4)				(2.61	)%			1.19	%
Shares outstanding at end of period				60,213,623				52,541,808
Ratios/Supplemental Data
Net assets at end of period (000's)				589,109				526,465
Average net assets (000's)				532,398				453,330
Ratio of expenses to average net assets:
	Expenses before incentive fees(5)			8.57	%			8.48	%
	Net investment income incentive fees(5)			1.26	%			1.11	%
	Capital gains incentive fees(5)			(1.64	)%			0.19	%
Total ratio of expenses to average net assets(5)				8.19	%			9.78	%
Ratio of expenses, excluding interest expense, to average net assets(5)				4.50	%			6.00	%
Ratio of net investment income to average net assets(5)				13.34	%			9.40	%

(1)	Represents per share net investment income for the period, based upon average shares outstanding.
(2)	Net realized and unrealized capital gains include rounding adjustments 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 that fiscal year, a portion of those distributions may be deemed a tax return of capital to the Company's stockholders. The tax character of distributions will be determined at the end of the fiscal year.
(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.

TICC Capital Corp. is a publicly-traded business development company principally engaged in providing capital to established businesses, investing in syndicated bank loans and purchasing debt and equity tranches of collateralized loan obligations. Companies interested in learning more about financing opportunities should contact Debdeep Maji at (203) 983-5285.

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.