-- Payable Date: June 29, 2007
-- Record Date: June 8, 2007
In addition, TICC announced today its financial results for the quarter
ended March 31, 2007.
HIGHLIGHTS
-- For the three months ended March 31, 2007, we recorded net investment
income of approximately $6.6 million, or approximately $0.34 per share,
net unrealized depreciation on investments of approximately
$3.0 million and a net realized loss on investments of approximately
$143,000. In total, we had a net increase in net assets resulting from
operations of approximately $0.18 per share for the first quarter.
-- Total investment income for the first quarter amounted to
approximately $9.9 million, of which approximately $9.6 million
was interest income and approximately $280,000 was fee income.
-- We recorded unrealized depreciation on our debt investments in
GenuTec Business Solutions, Inc. ($5.0 million) and Falcon
Communications, Inc. ($1.5 million), based upon a review of the
operating performance of these companies, as well as consideration
of other factors and conditions affecting these investments. These
decreases were partially offset by unrealized appreciation of
approximately $3.0 million associated with the equity investment in
Algorithmic Implementation, Inc. and unrealized appreciation on
other investments of approximately $500,000. Our debt investment in
GenuTec was placed on non-accrual status as of March 31, 2007.
-- Investment activity for the first quarter amounted to approximately
$26.4 million, and consisted of 1 investment in a new portfolio company
and an additional investment in an existing portfolio company, as
follows:
-- $25.0 million investment in senior secured notes issued by AKQA,
Inc. an independent global marketing agency that provides customer
relationship marketing and e-commerce solutions to its clients.
-- $1.4 million was drawn on our previous commitment to GenuTec
Business Solutions, Inc., an existing portfolio company.
-- At March 31, 2007, the weighted average yield of our debt investments
(excluding cash equivalents and assuming no interest income on the
investment placed on non-accrual status) was approximately 12.0%.
-- Expenses for the quarter were approximately $3.3 million, including
interest expense of approximately $1.0 million, reflecting the
borrowings that have been made under our credit facility.
-- At March 31, 2007 approximately $56.5 million was outstanding under
our credit facility; as of May 7, 2007 approximately $76.5 was
outstanding under the facility.
SUBSEQUENT EVENTS
On April 10, 2007, we completed an $11.5 million transaction with PrePak
Systems, Inc., whereby we invested $10 million in senior secured notes with
a commitment of an additional $1.5 million in senior notes, as the company
achieves certain milestones. PrePak Systems, Inc. is a contract packaging
organization that repackages bulk pharmaceuticals into bottles, blister
packs and individually packaged doses for government mail outpatient
pharmacies and hospitals, commercial hospitals, nursing homes, and direct
pharmacy clients.
On April 24, 2007, we completed a $15.0 million investment in senior
secured notes issued by American Integration Technologies, LLC an existing
portfolio company.
On May 7, 2007, we completed a $14.9 million transaction with Box Services,
LLC, whereby we invested $13.5 million in senior secured notes with a
commitment of an additional $1.4 million in senior notes, as the company
achieves certain milestones. Box Services is a provider of digital imaging
services to leading professional photographers, luxury fashion brands,
publishers and advertisers.
On May 7, 2007, we amended our credit facility with the Royal Bank of
Canada and Branch Banking & Trust Company, reducing the interest rate on
the facility by 50 basis points, to 1.75% over LIBOR, and increasing the
size of the facility to $150 million.
We will host a conference call to discuss our first quarter results today,
Tuesday, May 8th at 10:00 AM EDT. Please call 877-407-8031 to participate.
A replay of the conference call will be available for approximately 30
days. The replay number is 877-660-6853, the account number is 286 and the
access code is 239279.
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, 2006 and subsequent reports on Form 10-Q
as they are filed, each of which are available on the SEC's website at
www.sec.gov.
TECHNOLOGY INVESTMENT CAPITAL CORP.
STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)
March 31,
2007 December 31,
(unaudited) 2006
------------- --------------
ASSETS
Investments, at fair value (cost:
$320,038,435 @ 3/31/07; $325,660,997
@ 12/31/06)
Non-affiliated investments $ 292,076,024 $ 303,933,738
Affiliated investments 25,460,813 22,251,122
------------- --------------
Total investments at fair
value 317,536,837 326,184,860
------------- --------------
Cash and cash equivalents 7,916,833 5,181,512
Interest receivable 2,594,904 3,216,305
Prepaid expenses and other assets 246,238 237,069
------------- --------------
Total assets $ 328,294,812 $ 334,819,746
============= ==============
LIABILITIES
Investment advisory fee payable to
affiliate $ 1,641,555 $ 1,995,517
Dividends payable 0 2,364,699
Accrued interest payable 405,001 458,507
Accrued expenses 304,714 165,678
Loans payable 56,500,000 58,500,000
------------- --------------
Total liabilities 58,851,270 63,484,401
------------- --------------
NET ASSETS
Common stock, $0.01 par value,
100,000,000 shares authorized, and
19,810,567 and 19,705,824 issued and
outstanding, respectively 198,106 197,058
Capital in excess of par value 271,662,365 269,909,732
Net unrealized appreciation
(depreciation) on investments (2,501,598) 523,863
Accumulated net realized gains on
investments 176,932 320,139
Distributions less than (in excess of)
investment income (92,263) 384,553
------------- --------------
Total net assets 269,443,542 271,335,345
------------- --------------
Total liabilities and net
assets $ 328,294,812 $ 334,819,746
============= ==============
Net asset value per common share $ 13.60 $ 13.77
TECHNOLOGY INVESTMENT CAPITAL CORP.
STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Three Months
Ended Ended
March 31, March 31,
2007 2006
------------ ------------
INVESTMENT INCOME
From non-affiliated investments:
Interest income - debt investments $ 8,658,400 $ 6,028,432
Interest income - cash and cash
equivalents 121,519 353,981
Other income 280,250 826,077
------------ ------------
Total investment income from non-affiliated
investments 9,060,169 7,208,490
------------ ------------
From affiliated investments:
Interest income - debt investments 836,691 0
Other income 0 0
------------ ------------
Total investment income from affiliated
investments 836,691 0
------------ ------------
Total investment income 9,896,860 7,208,490
------------ ------------
EXPENSES
Compensation expense 200,000 130,182
Investment advisory fees 1,641,555 1,348,793
Professional fees 251,185 294,575
Interest expense 1,004,226 0
General and administrative 171,741 119,855
------------ ------------
Total expenses 3,268,707 1,893,405
------------ ------------
Net investment income 6,628,153 5,315,085
------------ ------------
Net change in unrealized appreciation or
depreciation on investments (3,025,461) (210,588)
------------ ------------
Net realized (losses) gains on
investments (143,207) 158,340
------------ ------------
Net increase in net assets resulting from
operations $ 3,459,485 $ 5,262,837
============ ============
Net increase in net assets resulting from net
investment income per common share:
Basic and Diluted $ 0.34 $ 0.27
Net increase in net assets resulting from
operations per common share:
Basic and Diluted $ 0.18 $ 0.27
Weighted average shares of common stock
outstanding:
Basic and Diluted 19,732,312 19,345,133
TECHNOLOGY INVESTMENT CAPITAL CORP.
FINANCIAL HIGHLIGHTS (UNAUDITED)
Three Months Three Months
Ended March Ended March
31, 2007 31, 2006
------------ ------------
(Unaudited) (Unaudited)
Per Share Data
--------------
Net asset value at beginning of period $ 13.77 $ 13.77
------------ ------------
Net investment income(1) 0.34 0.27
Net realized and unrealized capital gains(2) (0.17) 0.01
Effect of shares issued, net of offering
expenses 0.02 0.00
------------ ------------
Total from investment operations 0.19 0.28
------------ ------------
Dividends from net investment income(3) (0.36) (0.30)
------------ ------------
Net asset value at end of period $ 13.60 $ 13.75
============ ============
Per share market value at beginning of period $ 16.14 $ 15.10
Per share market value at end of period $ 16.91 $ 14.54
Total return(4) 7.00% (1.7%)
Shares outstanding at end of period 19,810,567 19,459,976
Ratios/Supplemental Data
------------------------
Net assets at end of period (000's) $ 269,444 $ 267,657
Average net assets (000's) $ 273,558 $ 267,415
Ratio of expenses to average net assets 4.78% 2.83%
Ratio of expenses, excluding interest expense,
to average net assets 3.31% 2.83%
Ratio of net investment income to average net
assets 9.69% 7.95%
(1) Represents per share net investment income for the period, based
upon average shares outstanding.
(2) Includes rounding adjustment to reconcile change in net asset value
per share.
(3) Dividends for the first quarter of 2007 were funded from undistributed
net investment income from 2006, as well as net investment income for
the three months ended March 31, 2007. Management monitors available
net investment income 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.
(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 Technology Investment 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: For further information contact: Bruce Rubin (203) 983-5280