-- For the quarter ended March 31, 2009, we recorded net investment income
of approximately $3.5 million, or approximately $0.13 per share, net
unrealized depreciation on investments of approximately $5.0 million
and net realized gains on investments of approximately $22,000. In
total, we had a net decrease in net assets resulting from operations of
approximately $0.05 per share for the first quarter.
-- Total investment income for the first quarter amounted to
approximately $5.1 million, down approximately 56% from the first
quarter of 2008 largely due to fewer portfolio investments as a
result of de-levering activities throughout 2008.
-- During the quarter ended March 31, 2009, we incurred net unrealized
depreciation of approximately $5.0 million resulting from
write-downs of several of our investments totaling approximately
$8.0 million, which were partially offset by write-ups of
approximately $3.0 million. As previously disclosed in our Form
10-K for the period ended December 31, 2008, our debt investments
in American Integration Technologies, LLC and Punch Software, LLC
were placed on non-accrual status as of January 1, 2009.
-- For the quarter ended March 31, 2009, we had net realized gains on
investments of approximately $22,000.
-- Expenses for the quarter were approximately $1.6 million, down
approximately 69% from the first quarter of 2008 due largely to the
elimination of interest expense associated with our de-levering actions
during 2008 to repay all debt under our previous credit facility. The
primary components of our expenses were $0.9 million in investment
advisory fees and approximately $300,000 in professional services for
valuation, legal and auditing services.
-- Our Board of Directors has declared a distribution of $0.15 per share
for the second quarter of 2009.
-- Payable Date: June 30, 2009
-- Record Date: June 10, 2009
We will host a conference call to discuss our first quarter results today,
Thursday, May 7th at 10:00 AM ET. 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 430187.
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, 2008, and subsequent reports on Form 10-Q
as they are filed.
TICC CAPITAL CORP.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
March 31, 2009 December 31, 2008
----------------- -----------------
(unaudited)
ASSETS
Investments, at fair value
(cost: $279,184,674 @ 3/31/09;
$282,299,228 @ 12/31/08)
Non-affiliated/non-control
investments (cost:
$258,977,832 @ 3/31/09;
$261,923,603 @ 12/31/08) $ 160,346,329 $ 168,094,127
Control investments (cost:
$20,206,842 @ 3/31/09;
$20,375,625 @ 12/31/08) 21,150,000 21,500,000
----------------- -----------------
Total investments at fair
value 181,496,329 189,594,127
----------------- -----------------
Cash and cash equivalents 17,104,029 14,069,251
Interest receivable 809,151 1,151,703
Prepaid expenses and other
assets 94,613 147,806
----------------- -----------------
Total assets $ 199,504,122 $ 204,962,887
================= =================
LIABILITIES
Investment advisory fee payable
to affiliate $ 941,052 $ 1,287,451
Accrued expenses 256,309 308,686
----------------- -----------------
Total liabilities 1,197,361 1,596,137
----------------- -----------------
NET ASSETS
Common stock, $0.01 par value,
100,000,000 shares authorized,
and 26,584,976 and 26,483,546
issued and outstanding,
respectively 265,850 264,835
Capital in excess of par value 319,017,413 318,662,914
Net unrealized depreciation on
investments (97,688,345) (92,705,101)
Accumulated net realized losses
on investments (21,877,286) (21,899,323)
Distributions in excess of
investment income (1,410,871) (956,575)
----------------- -----------------
Total net assets 198,306,761 203,366,750
----------------- -----------------
Total liabilities and
net assets $ 199,504,122 $ 204,962,887
================= =================
Net asset value per common share $ 7.46 $ 7.68
TICC CAPITAL CORP.
STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Three Months
Ended Ended
March 31, 2009 March 31, 2008
-------------- --------------
INVESTMENT INCOME
From non-affiliated/non-control
investments:
Interest income - debt investments $ 4,449,541 $ 10,449,524
Interest income - cash and cash
equivalents 0 55,992
Other income 40,000 207,780
-------------- --------------
Total investment income from
non-affiliated/non-control investments 4,489,541 10,713,296
-------------- --------------
From control investments:
Interest income - debt investments 633,767 766,527
-------------- --------------
Total investment income from control
investments 633,767 766,527
-------------- --------------
Total investment income 5,123,308 11,479,823
-------------- --------------
EXPENSES
Compensation expense 225,952 222,000
Investment advisory fees 941,052 2,179,855
Professional fees 303,405 349,927
Interest expense 0 2,297,434
General and administrative 134,663 159,951
-------------- --------------
Total expenses 1,605,072 5,209,167
-------------- --------------
Net investment income 3,518,236 6,270,656
-------------- --------------
Net change in unrealized appreciation or
depreciation on investments (4,983,244) (22,399,396)
-------------- --------------
Net realized gains (losses) on investments 22,037 (33,819)
-------------- --------------
Net decrease in net assets resulting from
operations $ (1,442,971) $ (16,162,559)
============== ==============
Net increase in net assets resulting from
net investment income per common share:
Basic and diluted(1) $ 0.13 $ 0.28
Net decrease in net assets resulting from
operations per common share:
Basic and diluted(1) $ (0.05) $ (0.73)
Weighted average shares of common stock
outstanding:
Basic and diluted(1) 26,484,673 22,018,041
(1) In accordance with SFAS 128-Earnings per Share, the weighted-average
shares of common stock outstanding used in computing basic and diluted
earnings per share for the three months ended March 31, 2008 was increased
retroactively by a factor of 1.021 to recognize the bonus element
associated with rights to acquire shares of common stock that were issued
to shareholders on May 23, 2008.
TICC CAPITAL CORP.
FINANCIAL HIGHLIGHTS (UNAUDITED)
Three Months Ended Three Months Ended
March 31, 2009 March 31, 2008
(unaudited) (unaudited)
------------------ -------------------
Per Share Data
Net asset value at beginning of
period $ 7.68 $ 11.94
------------------ -------------------
Net investment income(1) 0.13 0.29
Net realized and unrealized
capital losses(2) (0.18) (1.03)
------------------ -------------------
Total from investment operations (0.05) (0.74)
------------------ -------------------
Total distributions(3) (0.15) (0.36)
------------------ -------------------
Effect of shares issued, net of
offering expenses (0.02) (0.03)
------------------ -------------------
Net asset value at end of period $ 7.46 $ 10.81
================== ===================
Per share market value at
beginning of period $ 3.80 $ 9.23
Per share market value at end of
period $ 3.51 $ 7.52
Total return(4) (3.68)% (14.63)%
Shares outstanding at end of
period 26,584,976 21,696,133
Ratios/Supplemental Data
Net assets at end of period
(000’s) $ 198,307 $ 234,440
Average net assets (000’s) $ 203,844 $ 260,134
Ratio of expenses to average net
assets(5) 3.15 % 8.01 %
Ratio of expenses, excluding
interest expense, to average
net assets(5) 3.15 % 4.84 %
Ratio of net investment income
to average net assets(5) 6.90 % 9.64 %
(1) Represents per share net investment income for the period, based
upon average shares outstanding.
(2) Net realized and unrealized capital losses includes 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 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. However, if the character of such distributions were
determined as of March 31, 2009, distributions for 2009 would not have
been characterized as a tax return of capital to the Company's
stockholders; this tax return of capital may differ from the return of
capital calculated with reference to net investment income for
financial reporting purposes.
(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. Effective December 30, 2008, the Company had fully repaid
all amounts under the revolving credit facility and reduced the
commitment amount thereunder to zero, effectively terminating the
facility.
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 or equity of established technology-related businesses. Companies
interested in learning more about financing opportunities should contact
Debdeep Maji at (203) 983-5285 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