-- For the quarter ended September 30, 2009, we recorded net investment income of approximately $3.2 million, or approximately $0.12 per share, net unrealized appreciation on investments of approximately $22.3 million and net realized losses on investments of approximately $10.5 million. In total, we had a net increase in net assets resulting from operations of approximately $0.56 per share for the third quarter. -- Total investment income for the third quarter amounted to approximately $4.9 million, down approximately 44% from the third quarter of 2008 largely due to a smaller portfolio as a result of de-levering actions throughout 2008, as well as a lower return on our debt investment portfolio due principally to lower LIBOR rates. -- Expenses for the third quarter of 2009 were approximately $1.8 million, down approximately 42% from the third quarter of 2008 due largely to the elimination of interest expense associated with our de-levering actions throughout 2008 and lower investment advisory fees attributable to our smaller portfolio. The primary components of our expenses were approximately $1.1 million in investment advisory fees and approximately $323,000 in professional fees for valuation, legal and auditing services. -- During the quarter ended September 30, 2009, we recorded net unrealized appreciation of approximately $22.3 million, comprised of $14.3 million in write-ups on investments, $2.8 million in write-downs and approximately $10.8 million relating to the reversal of prior period net unrealized depreciation upon the realization events associated with certain investments. -- For the quarter ended September 30, 2009, we had net realized losses on investments of approximately $10.5 million, which represents primarily the realization of the economic loss previously recorded as unrealized depreciation. -- Our Board of Directors has declared a distribution of $0.15 per share for the fourth quarter of 2009. -- Payable Date: December 31, 2009 -- Record Date: December 10, 2009 -- During the third quarter, we closed eight new investments with a face amount of approximately $30.0 million and a total cost of approximately $25.1 million for an aggregate discount of approximately 16% from par. Each of these investments represents the senior secured notes issued by the respective companies. -- At September 30, 2009, the weighted average yield of our debt investments (excluding cash equivalents and assuming no interest income from any investments on non-accrual status) was approximately 8.4%. -- At September 30, 2009, the weighted average yield of our debt investments, excluding our investments on non-accrual status as of September 30, 2009, was approximately 11.2%. -- At September 30, 2009, our cash position stood at approximately $29.4 million. -- At September 30, 2009, net asset value per share was $8.07 compared with the net asset value at June 30, 2009 of $7.66 and at December 31, 2008 of $7.68.SUBSEQUENT EVENTS
-- On October 29, 2009, the Board of Directors declared a distribution of $0.15 per share for the fourth quarter, payable on December 31, 2009 to shareholders of record as of December 10, 2009.We will host a conference call to discuss our third quarter results today, Thursday, November 5 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 435153. 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) September 30, December 31, 2009 2008 ------------- ------------- ASSETS Investments, at fair value (cost: $252,487,964 @ 9/30/09; $282,299,228 @ 12/31/08) Non-affiliated/non-control investments (cost: $232,520,612 @ 9/30/09; $261,923,603 @ 12/31/08) $ 166,326,417 $ 168,094,127 Control investments (cost: $19,967,352 @ 9/30/09; $20,375,625 @ 12/31/08) 20,575,000 21,500,000 ------------- ------------- Total investments at fair value 186,901,417 189,594,127 ------------- ------------- Cash and cash equivalents 29,373,427 14,069,251 Interest receivable 916,162 1,151,703 Prepaid expenses and other assets 139,914 147,806 ------------- ------------- Total assets $ 217,330,920 $ 204,962,887 ============= ============= LIABILITIES Investment advisory fee payable to affiliate $ 1,077,424 $ 1,287,451 Accrued expenses 448,847 308,686 ------------- ------------- Total liabilities 1,526,271 1,596,137 ------------- ------------- NET ASSETS Common stock, $0.01 par value, 100,000,000 shares authorized, and 26,747,561 and 26,483,546 issued and outstanding, respectively 267,475 264,835 Capital in excess of par value 319,779,312 318,662,914 Net unrealized depreciation on investments (65,586,547) (92,705,101) Accumulated net realized losses on investments (35,676,773) (21,899,323) Distributions in excess of investment income (2,978,818) (956,575) ------------- ------------- Total net assets 215,804,649 203,366,750 ------------- ------------- Total liabilities and net assets $ 217,330,920 $ 204,962,887 ============= ============= Net asset value per common share $ 8.07 $ 7.68 TICC CAPITAL CORP. STATEMENTS OF OPERATIONS (UNAUDITED) Three Months Three Months Nine Months Nine Months Ended Ended Ended Ended September 30, September 30, September 30, September 30, 2009 2008 2009 2008 ------------ ------------ ------------ ------------ INVESTMENT INCOME From non-affiliated/ non-control investments: Interest income - debt investments $ 4,272,498 $ 7,804,799 $ 12,991,256 $ 27,187,747 Interest income - cash and cash equivalents 0 55,281 0 179,964 Other income 72,330 78,875 134,359 610,300 ------------ ------------ ------------ ------------ Total investment income from non-affiliated/ non-control investments 4,344,828 7,938,955 13,125,615 27,978,011 ------------ ------------ ------------ ------------ From control investments: Interest income - debt investments 604,114 733,728 1,866,834 2,248,915 Other income 0 125,000 0 125,000 ------------ ------------ ------------ ------------ Total investment income from control investments 604,114 858,728 1,866,834 2,373,915 ------------ ------------ ------------ ------------ Total investment income 4,948,942 8,797,683 14,992,449 30,351,926 ------------ ------------ ------------ ------------ EXPENSES Compensation expense 225,953 222,000 677,858 666,000 Investment advisory fees 1,077,425 1,608,659 3,002,460 5,692,785 Professional fees 322,966 399,961 893,183 1,125,577 Interest expense 0 700,455 0 4,512,086 General and administrative 144,535 160,987 479,855 607,027 ------------ ------------ ------------ ------------ Total expenses 1,770,879 3,092,062 5,053,356 12,603,475 ------------ ------------ ------------ ------------ Net investment income 3,178,063 5,705,621 9,939,093 17,748,451 ------------ ------------ ------------ ------------ Net change in unrealized appreciation or depreciation on investments 22,308,201 806,271 27,118,554 (22,548,456) ------------ ------------ ------------ ------------ Net realized losses on investments (10,462,294) (10,654,597) (13,777,450) (9,755,472) ------------ ------------ ------------ ------------ Net increase (decrease) in net assets resulting from operations $ 15,023,970 $ (4,142,705) $ 23,280,197 $(14,555,477) ============ ============ ============ ============ Net increase in net assets resulting from net investment income per common share: Basic and diluted(1) $ 0.12 $ 0.22 $ 0.37 $ 0.75 Net increase (decrease) in net assets resulting from operations per common share: Basic and diluted(1) $ 0.56 $ (0.16) $ 0.88 $ (0.62) Weighted average shares of common stock outstanding: Basic and diluted(1) 26,674,521 26,191,008 26,582,410 23,648,413 (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 nine months ended September 30, 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 Three Nine Nine Months Months Months Months Ended Ended Ended Ended September September September September 30, 2009 30, 2008 30, 2009 30, 2008 (unaudited) (unaudited) (unaudited) (unaudited) ---------- ---------- ---------- ---------- Per Share Data Net asset value at beginning of period $ 7.66 $ 9.75 $ 7.68 $ 11.94 ---------- ---------- ---------- ---------- Net investment income(1) 0.12 0.22 0.37 0.75 Net realized and unrealized capital gains (losses) (2) 0.45 (0.37) 0.50 (1.35) ---------- ---------- ---------- ---------- Total from investment operations 0.57 (0.15) 0.87 (0.60) ---------- ---------- ---------- ---------- Total distributions(3) (0.15) (0.20) (0.45) (0.86) ---------- ---------- ---------- ---------- Effect of shares issued, net of offering expenses (0.01) (0.02) (0.03) (1.10) ---------- ---------- ---------- ---------- Net asset value at end of period $ 8.07 $ 9.38 $ 8.07 $ 9.38 ========== ========== ========== ========== Per share market value at beginning of period $ 4.41 $ 5.46 $ 3.80 $ 9.23 Per share market value at end of period $ 5.04 $ 5.14 $ 5.04 $ 5.14 Total return(4) 17.69% (2.2%) 47.26% (36.0%) Shares outstanding at end of period 26,747,561 26,296,293 26,747,561 26,296,293 Ratios/Supplemental Data Net assets at end of period (000's) $ 215,805 $ 246,625 $ 215,805 $ 246,625 Average net assets (000's) $ 205,091 $ 257,905 $ 202,688 $ 252,625 Ratio of expenses to average net assets(5) 3.45% 4.80% 3.32% 6.65% Ratio of expenses, excluding interest expense, to average net assets(5) 3.45% 3.97% 3.32% 4.62% Ratio of net investment income to average net assets(5) 6.20% 8.85% 6.54% 9.37% (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) 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 September 30, 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 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: Contact: Bruce Rubin 203-983-5280 Patrick Conroy 203-983-5282