-- Payable Date: September 28, 2007
-- Record Date: September 7, 2007
In addition, TICC announced today its financial results for the quarter
ended June 30, 2007.
HIGHLIGHTS
-- For the three months ended June 30, 2007, we recorded net investment
income of approximately $7.0 million, or approximately $0.35 per share,
net unrealized depreciation on investments of approximately $6.8
million and a net realized gain on investments of approximately
$237,000. In total, we had a net increase in net assets resulting from
operations of approximately $0.02 per share for the second quarter.
-- Total investment income for the second quarter amounted to
approximately $10.7 million, of which approximately $9.7 million was
interest income and approximately $1.0 million was fee income.
-- We recorded unrealized depreciation on our debt investments in
GenuTec Business Solutions, Inc. ($4.4 million) and Falcon
Communications, Inc. ($1.0 million), and our residual equity
investment in TrueYou.com ($1.3 million), based primarily upon the
operating performance and financial condition of these companies.
Assuming no additional return on the remaining equity portion of our
TrueYou.com investment, the internal rate of return on our original
investment was approximately 14.3%. We had no other complete exits
during the three months ended June 30, 2007. The total weighted
average internal rate of return on all TICC exited investments as of
June 30, 2007 was approximately 14.5%.
-- Investment originations for the second quarter amounted to
approximately $50.8 million, and consisted of 3 investments in new
portfolio companies and additional debt investments in existing
portfolio companies. The major investments were as follows:
-- $10.0 million investment in senior secured notes issued by PrePak
Systems, Inc., 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, with a commitment of an additional $1.5 million in senior
notes as PrePak achieves certain milestones.
-- $13.5 million investment in senior secured notes issued by Box
Services, LLC, a provider of digital imaging services, with a
commitment of an additional $1.4 million in senior notes as Box
Services achieves certain milestones.
-- $11.0 million investment in senior secured notes with warrants in
Pulvermedia Inc., which operates and produces technology related
tradeshow and conference events.
-- $15.0 million investment in senior secured notes issued by American
Integration Technologies, LLC, an existing portfolio company.
-- At June 30, 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 11.8%.
-- Expenses for the quarter were approximately $3.7 million, including
interest expense of approximately $1.2 million, reflecting outstanding
borrowings under our credit facility.
-- At June 30, 2007 approximately $72.0 million was outstanding under
our credit facility. As of August 6, 2007 approximately $49.0 was
outstanding under the facility.
-- On June 27, 2007, we amended our existing revolving credit facility,
increasing it from $150 million to $180 million with Royal Bank of
Canada as an agent and lender, and Branch Banking and Trust Company and
Commerzbank A.G. as additional lenders.
SUBSEQUENT EVENTS
-- On July 13, 2007, we closed on a public offering of 1,437,500 shares
of common stock (including the underwriter's over-allotment option),
resulting in approximately $21.6 million in net proceeds which was used to
repay indebtedness owed under our current revolving credit facility.
We will host a conference call to discuss our first quarter results today,
Tuesday, August 7th 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 250872.
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, Form 10-Q for the quarter ended
June 30, 2007 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)
June 30, 2007
December 31,
(unaudited) 2006
--------------- ----------------
ASSETS
Investments, at fair value (cost:
$340,052,715 @ 6/30/07; $325,660,997
@ 12/31/06)
Non-affiliated/non-control
investments ($317,627,576 @
6/30/07; $303,409,875 @ 12/31/06) $ 305,303,515 $ 303,933,738
Control investments (cost:
$22,425,139 @ 6/30/07; $22,251,122
@ 12/31/06) 25,425,139 22,251,122
--------------- ----------------
Total investments at fair value 330,728,654 326,184,860
--------------- ----------------
Cash and cash equivalents 4,564,607 5,181,512
Interest receivable 2,946,059 3,216,305
Prepaid expenses and other assets 411,743 237,069
--------------- ----------------
Total assets $ 338,651,063 $ 334,819,746
=============== ================
LIABILITIES
Investment advisory fee payable to
affiliate $ 1,780,900 $ 1,995,517
Dividends payable 0 2,364,699
Accrued interest payable 380,670 458,507
Accrued expenses 282,232 165,678
Loans payable 72,000,000 58,500,000
--------------- ----------------
Total liabilities 74,443,802 63,484,401
--------------- ----------------
NET ASSETS
Common stock, $0.01 par value,
100,000,000 shares authorized, and
19,907,086 and 19,705,824 issued
and outstanding, respectively 199,071 197,058
Capital in excess of par value 273,185,426 269,909,732
Net unrealized appreciation
(depreciation) on investments (9,324,061) 523,863
Accumulated net realized gains on
investments 413,904 320,139
Distributions (in excess of) less
than investment income (267,079) 384,553
--------------- ----------------
Total net assets 264,207,261 271,335,345
--------------- ----------------
Total liabilities and net
assets $ 338,651,063 $ 334,819,746
=============== ================
Net asset value per common share $ 13.27 $ 13.77
TECHNOLOGY INVESTMENT CAPITAL CORP.
STATEMENTS OF OPERATIONS (UNAUDITED)
Three Months Three Months Six Months Six Months
Ended June Ended June Ended June Ended June
30, 2007 30, 2006 30, 2007 30, 2006
------------ ------------ ------------ ------------
INVESTMENT INCOME
From non-affiliated
/non-control
investments:
Interest income
- debt
investments $ 8,694,043 $ 7,302,626 $ 17,352,443 $ 13,331,058
Interest
income - cash
and cash
equivalents 103,030 92,793 224,549 446,774
Other income 1,025,462 1,068,682 1,305,712 1,894,759
------------ ------------ ------------ ------------
Total investment
income from
non-affiliated
/non-control
investments 9,822,535 8,464,101 18,882,704 15,672,591
------------ ------------ ------------ ------------
From control
investments:
Interest income -
debt investments 848,134 0 1,684,825 0
------------ ------------ ------------ ------------
Total investment
income from
control
investments 848,134 0 1,684,825 0
------------ ------------ ------------ ------------
Total investment
income 10,670,669 8,464,101 20,567,529 15,672,591
------------ ------------ ------------ ------------
EXPENSES
Compensation
expense 200,000 130,164 400,000 260,346
Investment
advisory fees 1,781,001 1,401,281 3,422,556 2,750,074
Professional fees 191,512 235,070 442,697 529,645
Interest expense 1,233,562 232,370 2,237,788 232,370
General and
administrative 307,606 189,568 479,347 309,423
------------ ------------ ------------ ------------
Total expenses 3,713,681 2,188,453 6,982,388 4,081,858
------------ ------------ ------------ ------------
Net investment
income 6,956,988 6,275,648 13,585,141 11,590,733
------------ ------------ ------------ ------------
Net change in
unrealized
appreciation or
depreciation on
investments (6,822,463) 811,000 (9,847,924) 600,412
------------ ------------ ------------ ------------
Net realized gains
(losses) on
investments 236,972 (221,952) 93,765 (63,612)
------------ ------------ ------------ ------------
Net increase in net
assets resulting
from operations $ 371,497 $ 6,864,696 $ 3,830,982 $ 12,127,533
============ ============ ============ ============
Net increase in net
assets resulting
from net
investment income
per common share:
Basic and
Diluted $ 0.35 $ 0.32 $ 0.69 $ 0.60
Net increase in net
assets resulting
from operations
per common share:
Basic and
Diluted $ 0.02 $ 0.35 $ 0.19 $ 0.63
Weighted average
shares of common
stock outstanding:
Basic and
Diluted 19,812,688 19,460,812 19,772,722 19,403,292
TECHNOLOGY INVESTMENT 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,
2007 2006 2007 2006
---------- ---------- ---------- ----------
Per Share Data
Net asset value at
beginning of period $ 13.60 $ 13.75 $ 13.77 $ 13.77
---------- ---------- ---------- ----------
Net investment income(1) 0.35 0.32 0.69 0.60
Net realized and unrealized
capital gains (losses)(2) (0.33) 0.04 (0.50) 0.04
Effect of shares issued,
net of offering expenses 0.01 0.00 0.03 0.00
---------- ---------- ---------- ----------
Total from investment
operations 0.03 0.36 0.22 0.64
---------- ---------- ---------- ----------
Dividends from net
investment income(3) (0.36) (0.30) (0.72) (0.60)
---------- ---------- ---------- ----------
Net asset value at end of
period $ 13.27 $ 13.81 $ 13.27 $ 13.81
========== ========== ========== ==========
Per share market value at
beginning of period $ 16.91 $ 14.54 $ 16.14 $ 15.10
Per share market value at
end of period $ 15.79 $ 14.65 $ 15.79 $ 14.65
Total return(4) (4.49%) 2.80% 2.19% 1.00%
Shares outstanding at end
of period 19,907,086 19,536,070 19,907,086 19,536,070
Ratios/Supplemental Data
Net assets at end of period
(000's) $ 264,207 $ 269,798 $ 264,207 $ 269,798
Average net assets (000's) $ 272,266 $ 269,421 $ 272,908 $ 268,424
Ratio of expenses to
average net assets(5) 5.46% 3.25% 5.12% 3.04%
Ratio of expenses,
excluding interest
expense, to average
net assets(5) 3.64% 2.90% 3.48% 2.87%
Ratio of net investment
income to average net
assets(5) 10.22% 9.32% 9.96% 8.64%
(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) For tax purposes, we expect that dividends for the six months of 2007
will be funded from undistributed net investment income and realized
capital gains from 2006, as well as net investment income for the six
months ended June 30, 2007. 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 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 and equity 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 Patrick F. Conroy 203-983-5282