-- For the quarter ended June 30, 2008, we recorded net investment income of approximately $5.8 million, or approximately $0.25 per share, net realized capital gains on investments of approximately $933,000 and net unrealized depreciation on investments of approximately $955,000. In total, we had a net increase in net assets resulting from operations of approximately $0.25 per share for the second quarter. -- Total investment income for the second quarter amounted to approximately $10.1 million, of which approximately $9.8 million was interest income and approximately $300,000 was fee income. -- During the quarter ended June 30, 2008, we had realized capital gains of approximately $1.6 million due to the repayment on our debt and sale of our equity investment in Aviel Services, Inc. This gain was partially offset by realized losses associated with the sale of several of our other debt investments of approximately $700,000. -- We recorded unrealized depreciation on our investments largely due to the reversal of previously recorded unrealized appreciation on our debt and equity investment in Aviel Services, Inc. upon the repayment and sale, respectively, of those investments; this was partially offset by the reversal of previously recorded unrealized depreciation on several of our other debt investments upon the sale of those investments. -- Our Board of Directors has declared a distribution of $0.20 per share for the third quarter of 2008 -- Payable Date: September 30, 2008 -- Record Date: September 10, 2008 -- Over the past year, the credit markets have gone through dramatic changes. Since the end of the first quarter, and in the absence of having received a written offer for extension of our credit facility from our existing lenders, we have taken steps to reduce our borrowings under our credit facility, and effective August 6, 2008 we have reduced the size of the facility from $150 million to $55 million. On a risk-adjusted basis, we believe that until leverage can be obtained at appropriate pricing and terms with a longer maturity that more closely matches the maturity of our investments, we are better served by de-levering the portfolio. As a result of de-levering our portfolio, our net investment income is now and will likely continue to be less than it might otherwise be on a more fully levered portfolio. However, we believe it is more prudent to remove the uncertainty of continued credit availability on commercially reasonable terms, or at all. Until such time as we can obtain financing on terms which are cost-effective and which more closely approximates the maturity of our borrowings with the average maturity of our investments, we believe that de-levering the portfolio is the appropriate course of action. We also note that, largely as a result of this de-levering, our Board has determined to adjust the third quarter dividend to a level more consistent with that idea. -- For the quarter ended June 30, 2008 we had repayments of $18.9 million largely consisting of repayments by Aviel Services, Inc. of $14.5 million. Also during the quarter ended June 30, 2008, we received approximately $32.0 million from the sale of portfolio securities, largely resulting from the sale of our investments in Intergraph Corporation ($14.2 million), Integra Telecomm, Inc. ($7.7 million) and Iridium Satellite LLC ($7.4 million). -- At June 30, 2008, 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 10.3%. -- Expenses for the quarter were approximately $5.8 million, including approximately $1.3 million in interest expense, reflecting outstanding borrowings under our credit facility, and approximately $1.9 million in investment advisory fees. -- At June 30, 2008, approximately $70.0 million was outstanding under our credit facility. As of August 8, 2008, approximately $55.0 million was outstanding under the facility. -- On May 23, 2008 we issued to our stockholders of record as of May 23, 2008 transferable rights to subscribe for up to 4,339,226 shares of our common stock. Record date stockholders received one right for each outstanding share of common stock owned on the record date. The rights offering, which was oversubscribed, resulted in the issuance of approximately 4.3 million shares of TICC common stock on June 18, 2008. The net proceeds after payment of dealer-manager fees and after other offering-related expenses were approximately $20.9 million. Subsequently, we used the net proceeds received in this offering to repay indebtedness owed under our credit facility.SUBSEQUENT EVENTS
-- On July 31, 2008, the Board of Directors declared a distribution of $0.20 per share for the third quarter, payable on September 30, 2008 to shareholders of record as of September 10, 2008. -- Pursuant to our request and in accordance with the terms of our credit facility, the amount under our credit facility was reduced from $150 million to $55 million, effective August 6, 2008.We will host a conference call to discuss our second quarter results and our leverage strategy today, Monday, August 11, 2008 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 421640. 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, and subsequent reports on Form 10-Q as they are filed.
TICC CAPITAL CORP. STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED) June 30, December 31, 2008 2007 ------------- ------------- ASSETS (unaudited) Investments, at fair value (cost: $361,185,620 @ 6/30/08; $411,125,347 @ 12/31/07) Non-affiliated/non-control investments ($340,073,159 @ 6/30/08; $389,288,207 @ 12/31/07) $ 286,448,295 $ 360,530,609 Control investments (cost: $21,112,461 @ 6/30/08; $21,837,140 @ 12/31/07) 25,625,000 24,837,140 ------------- ------------- Total investments at fair value 312,073,295 385,367,749 ------------- ------------- Cash and cash equivalents 15,366,663 7,944,608 Interest receivable 1,564,860 2,876,424 Prepaid expenses and other assets 297,168 201,372 ------------- ------------- Total assets $ 329,301,986 $ 396,390,153 ============= ============= LIABILITIES Investment advisory fee payable to affiliate $ 1,904,270 $ 2,123,168 Accrued interest payable 56,724 310,312 Accrued expenses 1,882,307 87,170 Loans payable 70,000,000 136,500,000 ------------- ------------- Total liabilities 73,843,301 139,020,650 ------------- ------------- NET ASSETS Common stock, $0.01 par value, 100,000,000 shares authorized, and 26,189,851 and 21,563,717 issued and outstanding, respectively 261,899 215,637 Capital in excess of par value 319,306,013 296,578,543 Net unrealized depreciation on investments (49,112,325) (25,757,598) Accumulated net realized losses on investments (12,490,384) (13,389,509) Distributions in excess of investment income (2,506,518) (277,570) ------------- ------------- Total net assets 255,458,685 257,369,503 ------------- ------------- Total liabilities and net assets $ 329,301,986 $ 396,390,153 ============= ============= Net asset value per common share $ 9.75 $ 11.94 TICC CAPITAL CORP. STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Three Months Six Months Ended Ended Six Months Ended June 30, June 30, Ended June 30, 2008 2007 June 30, 2008 2007 ------------ ------------ ------------- ------------ INVESTMENT INCOME From non-affiliated/ non-control investments: Interest income - debt investments $ 8,933,424 $ 8,694,043 $ 19,382,948 $ 17,352,443 Interest income - cash and cash equivalents 68,691 103,030 124,683 224,549 Other income 323,645 1,025,462 531,425 1,305,712 ------------ ------------ ------------- ------------ Total investment income from non-affiliated/ non-control investments 9,325,760 9,822,535 20,039,056 18,882,704 ------------ ------------ ------------- ------------ From control investments: Interest income - debt investments 748,660 848,134 1,515,187 1,684,825 Other income 0 0 0 0 ------------ ------------ ------------- ------------ Total investment income from control investments 748,660 848,134 1,515,187 1,684,825 ------------ ------------ ------------- ------------ Total investment income 10,074,420 10,670,669 21,554,243 20,567,529 ------------ ------------ ------------- ------------ EXPENSES Compensation expense 222,000 200,000 444,000 400,000 Investment advisory fees 1,904,271 1,781,001 4,084,126 3,422,556 Professional fees 375,689 191,512 725,616 442,697 Interest expense 1,261,630 1,233,562 3,323,067 2,237,788 General and administrative 538,656 307,606 934,604 479,347 ------------ ------------ ------------- ------------ Total expenses 4,302,246 3,713,681 9,511,413 6,982,388 ------------ ------------ ------------- ------------ Net investment income 5,772,174 6,956,988 12,042,830 13,585,141 ------------ ------------ ------------- ------------ Net change in unrealized appreciation or depreciation on investments (955,331) (6,822,463) (23,354,727) (9,847,924) ------------ ------------ ------------- ------------ Net realized gains on investments 932,944 236,972 899,125 93,765 ------------ ------------ ------------- ------------ Net increase (decrease) in net assets resulting from operations $ 5,749,787 $ 371,497 $ (10,412,772) $ 3,830,982 ============ ============ ============= ============ Net increase in net assets resulting from net investment income per common share: Basic and diluted(1) $ 0.25 $ 0.34 $ 0.54 $ 0.67 Net increase (decrease) in net assets resulting from operations per common share: Basic and diluted(1) $ 0.25 $ 0.02 $ (0.47) $ 0.19 Weighted average shares of common stock outstanding: Basic and diluted(1) 22,708,251 20,228,754 22,363,146 20,187,949 (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 were 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 stockholders on May 23, 2008. TICC CAPITAL CORP. FINANCIAL HIGHLIGHTS (UNAUDITED) Three Three Months Months Six Months Six Months Ended Ended Ended Ended June 30, June 30, June 30, June 30, 2008 2007 2008 2007 ---------- ---------- ---------- ---------- Per Share Data Net asset value at beginning of period $ 10.81 $ 13.60 $ 11.94 $ 13.77 ---------- ---------- ---------- ---------- Net investment income(1) 0.25 0.34 0.54 0.67 Net realized and unrealized capital gains (losses) (2) 0.01 (0.32) (1.01) (0.48) Effect of shares issued, net of offering expenses (1.02) 0.01 (1.06) 0.03 ---------- ---------- ---------- ---------- Total from investment operations (0.76) 0.03 (1.53) 0.22 ---------- ---------- ---------- ---------- Total distributions(3) (0.30) (0.36) (0.66) (0.72) ---------- ---------- ---------- ---------- Net asset value at end of period $ 9.75 $ 13.27 $ 9.75 $ 13.27 ========== ========== ========== ========== Per share market value at beginning of period $ 7.52 $ 16.91 $ 9.23 $ 16.14 Per share market value at end of period $ 5.46 $ 15.79 $ 5.46 $ 15.79 Total return(4) (23.40%) (4.49%) (34.61%) 2.19% Shares outstanding at end of period 26,189,851 19,907,086 26,189,851 19,907,086 Ratios/Supplemental Data Net assets at end of period (000's) $ 255,459 $ 264,207 $ 255,459 $ 264,207 Average net assets (000's) $ 239,778 $ 272,266 $ 249,956 $ 272,908 Ratio of expenses to average net assets(5) 7.18% 5.46% 7.61% 5.12% Ratio of expenses, excluding interest expense, to average net assets(5) 5.07% 3.64% 4.95% 3.48% Ratio of net investment income to average net assets(5) 9.63% 10.22% 9.64% 9.96% (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) Dividends for the second quarter of 2008 were funded from net investment income for the three months ended June 30, 2008. 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 a fiscal year, a portion of those distributions may be deemed a tax return of capital to the Company's stockholders. However, if the character of such distributions were determined as of June 30, 2008, approximately $0.12 per share of the Company's distributions for the six-month period, would have been 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. (5) 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: Contact: Patrick Conroy 203-983-5282 Bruce Rubin 203-983-5280