GREENWICH, CT--(Marketwired - Mar 2, 2017) - TICC Capital Corp. (
HIGHLIGHTS
Quarter Ending | Record Date | Payment Date | Amount Per Share | |||
March 31, 2017 | March 16, 2017 | March 31, 2017 | $0.20 | |||
June 30, 2017 | June 16, 2017 | June 30, 2017 | $0.20 | |||
September 30, 2017 | September 15, 2017 | September 29, 2017 | $0.20 |
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 determined in accordance with GAAP. Our non-GAAP measures may differ from similar measures by other companies, even if similar terms are used to identify such measures. Core net investment income represents net investment income adjusted for additional cash distributions received, or entitled to be received (if any, in either case), on our CLO equity investments and also excludes any capital gains incentive fees we recognize but have no obligation to pay in any period. The Company did not recognize any capital gains incentive fees for the quarter ended December 31, 2016.
Income from investments in the "equity" class securities of CLO vehicles, for GAAP purposes, is recorded using the effective interest method based upon an effective yield to the expected redemption utilizing estimated cash flows, compared to the cost resulting in an effective yield for the investment; the difference between the actual cash received or distributions entitled to be received and the effective yield calculation is an adjustment to cost. Accordingly, investment income recognized on CLO equity securities in the GAAP statement of operations differs from the cash distributions actually received by us during the period, (referred to below as "CLO equity additional distributions").
Further, in order to continue to qualify to be taxed as a regulated investment company ("RIC"), we are required, among other things, to distribute at least 90% of our investment company taxable income annually. Therefore, core net investment income may provide a better indication of estimated taxable income for a reporting period than does GAAP net investment income. Although we can offer no assurance that will be the case as the ultimate tax character of our earnings cannot be determined until tax returns are prepared after the end of a fiscal year. We note that these non-GAAP measures may not be useful indicators of taxable earnings, particularly during periods of market disruption and volatility.
The following table provides a reconciliation of net investment income to core net investment income for the three months and year ended December 31, 2016:
Three Months Ended December 31, 2016 |
Year Ended December 31, 2016 |
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Amount | Per Share Amounts (basic) |
Per Share Amounts (diluted) |
Amount | Per Share Amounts (basic) |
Per Share Amounts (diluted) |
|||||||||||||
Net investment income | $ | 7,284,568 | $ | 0.142 | $ | 0.142 | $ | 24,019,066 | $ | 0.460 | $ | 0.460 | ||||||
CLO equity additional distributions | 3,876,444 | 0.075 | 0.075 | 34,165,951 | 0.659 | 0.659 | ||||||||||||
Core net investment income | $ | 11,161,012 | $ | 0.217 | $ | 0.217 | $ | 58,185,017 | $ | 1.119 | $ | 1.119 | ||||||
We will host a conference call to discuss our fourth quarter results today, Thursday, March 2, 2017 at 10:00 AM ET. Please call 1-888-339-0740 to participate. A replay of the conference call will be available for approximately 30 days. The replay number is 1-877-344-7529, and the replay passcode is 10102454.
A presentation containing further detail regarding our 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, 2016, and subsequent reports on Form 10-Q as they are filed.
TICC CAPITAL CORP. | |||||||||||
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES | |||||||||||
(unaudited) | |||||||||||
December 31, 2016 | December 31, 2015 | ||||||||||
ASSETS | |||||||||||
Non-affiliated/non-control investments (cost: $616,542,612 @ 12/31/16; $767,295,604 @ 12/31/15) | $ | 578,297,069 | $ | 638,890,282 | |||||||
Affiliated investments (cost: $7,497,229 @ 12/31/16; $7,392,352 @ 12/31/15) | 11,626,007 | 6,825,269 | |||||||||
Control investments (cost: $0 @ 12/31/16; $16,750,000 @ 12/31/15) | - | 11,000,000 | |||||||||
Total investments at fair value (cost: $624,039,841 @ 12/31/16; $791,437,956 @ 12/31/15) | 589,923,076 | 656,715,551 | |||||||||
Cash and cash equivalents | 8,261,698 | 23,181,677 | |||||||||
Restricted cash | 3,451,636 | 17,965,232 | |||||||||
Interest and distributions receivable | 9,682,672 | 12,268,997 | |||||||||
Securities sold not settled | 7,406 | 7,845,706 | |||||||||
Other assets | 1,130,018 | 321,044 | |||||||||
Total assets | $ | 612,456,506 | $ | 718,298,207 | |||||||
LIABILITIES | |||||||||||
Accrued interest payable | $ | 1,731,111 | $ | 2,139,866 | |||||||
Investment advisory fee and net investment income incentive fee payable to affiliate | 3,673,381 | 4,195,901 | |||||||||
Accrued expenses | 1,089,043 | 3,278,587 | |||||||||
Notes payable - TICC CLO 2012-1 LLC, net of discount and deferred issuance costs | 125,853,720 | 233,887,130 | |||||||||
Convertible senior notes payable, net of deferred issuance costs | 94,116,753 | 113,862,012 | |||||||||
Total liabilities | 226,464,008 | 357,363,496 | |||||||||
NET ASSETS | |||||||||||
Common stock, $0.01 par value, 100,000,000 share authorized; 51,479,409 and 56,396,435 shares issued and outstanding, respectively | 514,794 | 563,965 | |||||||||
Capital in excess of par value | 558,822,643 | 594,047,019 | |||||||||
Net unrealized depreciation on investments | (34,116,765 | ) | (134,722,405 | ) | |||||||
Accumulated net realized losses on investments | (95,605,057 | ) | (68,772,889 | ) | |||||||
Distributions in excess of net investment income | (43,623,117 | ) | (30,180,979 | ) | |||||||
Total net assets | 385,992,498 | 360,934,711 | |||||||||
Total liabilities and net assets | $ | 612,456,506 | $ | 718,298,207 | |||||||
Net asset value per common share | $ | 7.50 | $ | 6.40 | |||||||
TICC CAPITAL CORP. | |||||||||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | |||||||||||||||
(unaudited) | |||||||||||||||
Year Ended December 31, 2016 |
Year Ended December 31, 2015 |
Year Ended December 31, 2014 |
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INVESTMENT INCOME | |||||||||||||||
From non-affiliated/non-control investments: | |||||||||||||||
Interest income - debt investments | $ | 33,649,267 | $ | 48,556,075 | $ | 50,855,738 | |||||||||
Income from securitization vehicles and investments | 32,503,279 | $ | 34,901,766 | 59,516,739 | |||||||||||
Commitment, amendment fee income and other income | 2,228,877 | 2,332,680 | 5,451,167 | ||||||||||||
Total investment income from non-affiliated/non-control investments | 68,381,423 | 85,790,521 | 115,823,644 | ||||||||||||
From affiliated investments: | |||||||||||||||
Interest income - debt investments | 331,404 | 300,544 | 116,738 | ||||||||||||
Total investment income from affiliated investments | 331,404 | 300,544 | 116,738 | ||||||||||||
From control investments: | |||||||||||||||
Interest income - debt investments | 567,219 | 1,371,874 | 1,384,358 | ||||||||||||
Total investment income from control investments | 567,219 | 1,371,874 | 1,384,358 | ||||||||||||
Total investment income | 69,280,046 | 87,462,939 | 117,324,740 | ||||||||||||
EXPENSES | |||||||||||||||
Compensation expense | 837,343 | 1,158,622 | 1,860,683 | ||||||||||||
Investment advisory fees | 11,292,395 | 19,770,170 | 21,150,190 | ||||||||||||
Professional fees | 6,393,812 | 5,690,799 | 2,149,699 | ||||||||||||
Interest expense | 19,962,078 | 20,936,057 | 22,907,942 | ||||||||||||
Insurance | 159,573 | 68,679 | 68,638 | ||||||||||||
Director's Fees | 642,000 | 514,501 | 316,500 | ||||||||||||
Transfer agent and custodian fees | 316,577 | 332,796 | 284,212 | ||||||||||||
General and administrative | 2,861,803 | 1,340,326 | 1,398,064 | ||||||||||||
Total expenses before incentive fees | 42,465,581 | 49,811,950 | 50,135,928 | ||||||||||||
Net investment income incentive fees | 2,795,399 | (929,933 | ) | 5,603,821 | |||||||||||
Capital gains incentive fees | - | - | (3,872,853 | ) | |||||||||||
Total incentive fees | 2,795,399 | (929,933 | ) | 1,730,968 | |||||||||||
Total expenses | 45,260,980 | 48,882,017 | 51,866,896 | ||||||||||||
Net investment income | 24,019,066 | 38,580,922 | 65,457,844 | ||||||||||||
Net change in unrealized appreciation/depreciation on investments | |||||||||||||||
Non-Affiliate/non-control investments | 90,159,779 | (101,525,472 | ) | (49,550,856 | ) | ||||||||||
Affiliated investments | 4,695,861 | 7,057,989 | 1,227,261 | ||||||||||||
Control investments | 5,750,000 | (3,910,000 | ) | (990,000 | ) | ||||||||||
Total net change in unrealized appreciation/depreciation on investments | 100,605,640 | (98,377,483 | ) | (49,313,595 | ) | ||||||||||
Net realized (losses) gains on investments | |||||||||||||||
Non-Affiliated/non-control investments | (11,262,943 | ) | 425,240 | (14,788,183 | ) | ||||||||||
Affiliated investments | - | (6,762,328 | ) | (4,704,466 | ) | ||||||||||
Control investments | (3,000,000 | ) | - | - | |||||||||||
Total net realized (losses) on investments | (14,262,943 | ) | (6,337,088 | ) | (19,492,649 | ) | |||||||||
Net increase/(decrease) in net assets resulting from operations | $ | 110,361,763 | $ | (66,133,649 | ) | $ | (3,348,400 | ) | |||||||
Net increase in net assets resulting from net investment income per common share: | |||||||||||||||
Basic | $ | 0.46 | $ | 0.65 | $ | 1.11 | |||||||||
Diluted | $ | 0.46 | $ | 0.65 | $ | 1.06 | |||||||||
Net increase/(decrease) in net assets resulting from operations per common share: | |||||||||||||||
Basic | $ | 2.13 | $ | (1.11 | ) | $ | (0.06 | ) | |||||||
Diluted | $ | 1.92 | $ | (1.11 | ) | $ | (0.06 | ) | |||||||
Weighted average shares of common stock outstanding: | |||||||||||||||
Basic | 51,858,313 | 59,752,896 | 58,822,732 | ||||||||||||
Diluted | 61,773,392 | 69,786,048 | 68,855,884 | ||||||||||||
Distributions per share | $ | 1.16 | $ | 1.14 | $ | 1.16 | |||||||||
TICC CAPITAL CORP.
FINANCIAL HIGHLIGHTS - UNAUDITED
Year Ended | Year Ended | Year Ended | Year Ended | Year Ended | |||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | |||||||||||
2016 | 2015 | 2014 | 2013 | 2012 | |||||||||||
Per Share Data | |||||||||||||||
Net asset value at beginning of period | $ | 6.40 | $ | 8.64 | $ | 9.85 | $ | 9.90 | $ | 9.30 | |||||
Net investment income(1)(3) | 0.46 | 0.65 | 1.11 | 1.09 | 0.98 | ||||||||||
Net realized and unrealized capital (losses) gains(2)(3) | 1.68 | (1.84 | ) | (1.14 | ) | 0.06 | 0.82 | ||||||||
Net change in net asset value from operations | 2.14 | (1.19 | ) | (0.03 | ) | 1.15 | 1.80 | ||||||||
Distributions per share from net investment income | (1.08 | ) | (1.14 | ) | (1.00 | ) | (1.16 | ) | (1.12 | ) | |||||
Distributions based on weighted average share impact | 0.01 | 0.01 | (0.03 | ) | (0.04 | ) | (0.04 | ) | |||||||
Tax return of capital distributions | (0.08 | ) | - | (0.16 | ) | - | - | ||||||||
Total distributions(4) | (1.15 | ) | (1.13 | ) | (1.19 | ) | (1.20 | ) | (1.16 | ) | |||||
Effect of shares issued, net of offering expenses | - | - | - | - | (0.04 | ) | |||||||||
Effect of shares repurchased, gross | 0.11 | 0.08 | 0.01 | - | - | ||||||||||
Net asset value at end of period | $ | 7.50 | $ | 6.40 | $ | 8.64 | $ | 9.85 | $ | 9.90 | |||||
Per share market value at beginning of period | $ | 6.08 | $ | 7.53 | $ | 10.34 | $ | 10.12 | $ | 8.65 | |||||
Per share market value at end of period | $ | 6.61 | $ | 6.08 | $ | 7.53 | $ | 10.34 | $ | 10.12 | |||||
Total return(5) | 33.29 | % | (4.35 | )% | (17.22 | )% | 14.68 | % | 30.49 | % | |||||
Shares outstanding at end of period | 51,479,409 | 56,396,435 | 60,303,769 | 53,400,745 | 41,371,286 | ||||||||||
Ratios/Supplemental Data(6) | |||||||||||||||
Net assets at end of period (000's) | 385,992 | 360,935 | 520,813 | 526,242 | 409,603 | ||||||||||
Average net assets (000's) | 343,328 | 487,894 | 560,169 | 506,093 | 363,584 | ||||||||||
Ratio of expenses to average net assets | 13.18 | % | 10.02 | % | 9.26 | % | 9.74 | % | 9.35 | % | |||||
Ratio of net investment income to average net assets | 7.00 | % | 7.91 | % | 11.69 | % | 11.02 | % | 10.23 | % | |||||
Portfolio turnover rate | 27.60 | % | 24.96 | % | 45.91 | % | 38.22 | % | 55.42 | % | |||||
(1) | Represents per share net investment income for the period, based upon weighted average shares outstanding. |
(2) | Net realized and unrealized capital gains include rounding adjustments to reconcile change in net asset value per share. |
(3) | During the first quarter of 2015, the Company identified a non-material error in its accounting for income from CLO equity investments. Prospectively as of January 1, 2015, the Company records income from its CLO equity investments using the effective yield method in accordance with the accounting guidance in ASC 325-40, Beneficial Interests in Securitized Financial Assets, based upon an estimation of an effective yield to maturity utilizing assumed cash flows. An out-of-period adjustment to net investment income incentive fees, in the amount of $2.4 million, or $0.04 per share, is reflected in the year ended December 31, 2015. Prior period amounts are not materially affected. |
During the quarter ended September 30, 2015, the Company recorded an out of period adjustment related to a miscalculation of discount accretion which increased interest income and increased investment cost, by approximately $1.4 million. For the year ended December 31, 2015, approximately $1.1 million, or $0.02 per share, of the adjustment related to prior years. The increase in the investment cost has a corresponding effect on the investment's unrealized depreciation of the same amount. Management concluded the adjustment was not material to previously filed financial statements. | |
(4) | 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 ultimate tax character of the Company's earnings cannot be determined until tax returns are prepared after the end of the fiscal year. |
(5) | Total return equals the increase or decrease of ending market value over beginning market value, plus distributions, divided by the beginning market value per share, assuming distribution reinvestment prices obtained under the Company's distribution reinvestment plan, excluding any discounts. |
(6) | The following table provides supplemental performance ratios measured for the years ended December 31, 2016, 2015, 2014, 2013, and 2012: |
Year Ended December 31, 2016 | Year Ended December 31, 2015 | Year Ended December 31, 2014 | Year Ended December 31, 2013 | Year Ended December 31, 2012 | ||||||||||||||||
Ratio of expenses to average net assets: | ||||||||||||||||||||
Expenses before incentive fees | 12.37 | % | 10.21 | % | 8.95 | % | 8.68 | % | 6.33 | % | ||||||||||
Net investment income incentive fees | 0.81 | % | (0.19 | )% | 1.00 | % | 1.30 | % | 1.50 | % | ||||||||||
Capital gains incentive fees | - | % | - | % | (0.69 | )% | (0.24 | )% | 1.52 | % | ||||||||||
Ratio of expenses, excluding interest expense, to average net assets | 7.37 | % | 5.73 | % | 5.17 | % | 6.00 | % | 7.35 | % | ||||||||||
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 obligation vehicles.
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, except as may be required by law.
Contact Information:
Contact:
Bruce Rubin
203-983-5280