TICC Announces Results of Operations for the Quarter and the Year Ended December 31, 2011 and Announces Quarterly Distribution of $0.27 per Share

Marketwired

GREENWICH, CT--(Marketwire -03/08/12)- TICC Capital Corp. (NASDAQ: TICC - News) announced today its financial results for the quarter and year ended December 31, 2011, and a distribution of $0.27 per share for the first quarter of 2012.

HIGHLIGHTS

  • For the year ended December 31, 2011, we recorded approximately $45.2 million of total investment income and $30.0 million of net investment income, compared to $33.5 million of total investment income and $24.2 million of net investment income for the year ended December 31, 2010.
  • For the quarter ended December 31, 2011, we recorded net investment income of approximately $8.3 million, or approximately $0.25 per share. Excluding the impact of a capital gains incentive fee accrual increase of approximately $235,000, our core net investment income(1) was approximately $8.5 million, or approximately $0.26 per share. We also recorded net unrealized depreciation of approximately $2.3 million and net realized capital gains of approximately $0.9 million. In total, we had a net increase in net assets resulting from operations of approximately $6.9 million or approximately $0.21 per share for the fourth quarter.
    • Total investment income for the fourth quarter of 2011 amounted to approximately $13.2 million which represents an increase of approximately $2.1 million over the third quarter of 2011.
    • As of the end of the fourth quarter of 2011 there were no loans on non-accrual status.
    • Our weighted average credit rating on a fair value basis was 2.2 at the end of the fourth quarter of 2011 (compared to 2.2 at the end of the third quarter of 2011).
  • Our operating expenses before the capital gains incentive fee for the quarter ended December 31, 2011 were approximately $4.7 million, up from the third quarter of 2011 by approximately $1.0 million due largely to increased interest expense and other debt financing expenses as well as higher net investment income incentive fees.
  • The capital gains incentive fee expense increased by approximately $235,000 for the quarter ended December 31, 2011, and for the year ended December 31, 2011 that figure was approximately $1.1 million. The capital gains incentive fee expense, as reported under generally accepted accounting principles, is calculated on the basis of net realized and unrealized gains and losses at the end of each period. The expense related to the hypothetical liquidation of the portfolio (and assuming no other changes in realized or unrealized gains and losses) would only become payable to our investment adviser in the event of a complete liquidation of our portfolio as of period end and the termination of the Investment Advisory Agreement (the "Agreement") on such date. The $1.1 million capital gains incentive fee accrual for the year ending December 31, 2011 relates entirely to the hypothetical liquidation calculation.

    The amount of the capital gains incentive fee which will actually be payable is determined in accordance with the terms of the Agreement and is calculated as of the end of each calendar year (or upon termination of the Agreement). The terms of the Agreement state that the capital gains incentive fee calculation is based on net realized gains, if any, offset by gross unrealized depreciation for the calendar year. No effect is given to gross unrealized appreciation in this calculation. Based on the terms of the Agreement, no capital gains incentive fee is due as of December 31, 2011.
  • Our Board of Directors has declared a distribution of $0.27 per share for the first quarter of 2012.
    • Payable Date: March 30, 2012
    • Record Date: March 21, 2012
  • During the fourth quarter of 2011, we deployed approximately $60.3 million in 18 investments in addition to the prior three quarters' deployment of approximately $212.2 million for a total deployment of approximately $272.5 million for the calendar year 2011.
  • With respect to our CLO investments for the quarter ending December 31, 2011, we recorded approximately $1.0 million in interest payments, $56,000 in principal payments at par and approximately $3.9 million in equity distributions. In total, since we began investing in this asset class through December 31, 2011, we have recorded approximately $7.0 million in interest payments, $2.8 million in principal payments at par and $16.3 million in CLO equity distributions.
    • At the end of the fourth quarter, this asset class represented approximately 21.3% of our total assets on a fair value basis.
  • At December 31, 2011, the weighted average yield of our debt investments was approximately 11.3%, compared with 11.4% at September 30, 2011.
  • At December 31, 2011, net asset value per share was $9.30 compared with the net asset value per share at September 30, 2011 of $9.34.

(1) 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 a substitute for, net investment income. Core net investment income represents net investment income excluding our capital gains incentive fee. As the capital gains incentive fee is based on a hypothetical event that did not occur, we believe that core net investment income is a useful indicator of non-hypothetical transactions during this period.

The following table provides a reconciliation of net investment income to core net investment income for the three months and year ended December 31, 2011:

 

                                Three Months Ended          Year Ended
                                December 31, 2011       December 31, 2011
                             ----------------------- -----------------------
                                          Per Share               Per Share
                                Amount     Amounts      Amount     Amounts
                             ----------- ----------- ----------- -----------
Net investment income        $ 8,312,896 $     0.254 $30,000,141 $     0.925
Capital gains incentive fee      235,461       0.007   1,108,749       0.034
                             ----------- ----------- ----------- -----------

Core net investment income   $ 8,548,357 $     0.261 $31,108,890 $     0.959
                             =========== =========== =========== ===========

We will host a conference call to discuss our fourth quarter and year end results today, Thursday, March 8, 2012 at 10:00 AM ET. Please call 877-317-6789 to participate. A replay of the conference call will be available for approximately 30 days. The replay number is 877-344-7529, and the replay passcode is 10011213.

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, 2011, and subsequent reports on Form 10-Q as they are filed.

 
TICC CAPITAL CORP.

CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (UNAUDITED)


                                                December 31,   December 31,
                                                    2011           2010
                                               -------------  -------------

ASSETS

  Non-affiliated/non-control investments
   (cost: $372,091,255 @ 12/31/11;
   $207,854,154 @ 12/31/10)                    $ 375,793,839  $ 229,385,715
  Control investments (cost: $17,434,371 @
   12/31/11; $18,346,533 @ 12/31/10)              15,675,000     18,150,000
                                               -------------  -------------
    Total investments at fair value              391,468,839    247,535,715
                                               -------------  -------------
  Cash and cash equivalents                        4,494,793     68,780,866
  Restricted cash                                 23,183,698              -
  Deferred debt issuance costs                     2,895,873              -
  Interest receivable                              1,837,882      1,488,984
  Other assets                                       238,485         94,518
                                               -------------  -------------
      Total assets                             $ 424,119,570  $ 317,900,083
                                               =============  =============

LIABILITIES
  Notes payable, net of discount               $  99,710,826  $           -
  Accrued interest payable                         1,076,113              -
  Investment advisory fee payable to affiliate     2,895,799      1,760,896
  Accrued capital gains incentive fee to
   affiliate                                       1,108,749              -
  Securities purchased not settled                13,352,500      1,837,500
  Accrued expenses                                   873,592        184,146
                                               -------------  -------------
      Total liabilities                          119,017,579      3,782,542
                                               -------------  -------------

NET ASSETS
  Common stock, $0.01 par value, 100,000,000
   shares authorized, and 32,818,428 and
   31,886,367 issued and outstanding,
   respectively                                      328,184        318,864
  Capital in excess of par value                 376,997,156    369,163,104
  Net unrealized appreciation on investments       1,943,213     21,335,028
  Accumulated net realized losses on
   investments                                   (70,944,495)   (74,545,034)
  Distributions in excess of investment income    (3,222,067)    (2,154,421)
                                               -------------  -------------
      Total net assets                           305,101,991    314,117,541
                                               -------------  -------------
      Total liabilities and net assets         $ 424,119,570  $ 317,900,083
                                               =============  =============
Net asset value per common share               $        9.30  $        9.85




TICC CAPITAL CORP.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)


                                    Year Ended    Year Ended    Year Ended
                                   December 31,  December 31,  December 31,
                                       2011          2010          2009
                                   ------------  ------------  ------------

INVESTMENT INCOME
From non-affiliated/non-control
 investments:
  Interest income - debt
   investments                     $ 29,604,441  $ 26,959,707  $ 17,907,924
  Distributions from
   securitization vehicles and
   equity investments                13,079,923     3,728,638             -
  Commitment, amendment fee income
   and other income                     920,945       968,317       129,265
                                   ------------  ------------  ------------
    Total investment income from
     non-affiliated/non-control
     investments                     43,605,309    31,656,662    18,037,189
                                   ------------  ------------  ------------
From control investments:
  Interest income - debt
   investments                        1,582,881     1,849,929     2,470,603
                                   ------------  ------------  ------------
    Total investment income          45,188,190    33,506,591    20,507,792
                                   ------------  ------------  ------------
EXPENSES
  Compensation expense                1,090,626     1,020,950       971,356
  Investment advisory fees            7,317,273     5,043,973     4,070,205
  Professional fees                   1,190,999     1,033,650     1,305,894
  Interest expense and other debt
   financing expenses                 1,243,584             -             -
  Insurance                              68,450        75,419        75,974
  Directors' fees                       222,749       178,750       193,000
  Transfer agent and custodian
   fees                                 116,592       105,389        98,012
  General and administrative            587,314       401,366       249,567
                                   ------------  ------------  ------------
    Total expenses before
     incentive fees                  11,837,587     7,859,497     6,964,008
                                   ------------  ------------  ------------
  Net investment income incentive
   fees                               2,241,713     1,403,597        51,800
  Capital gains incentive fees        1,108,749             -             -
                                   ------------  ------------  ------------
    Total incentive fees              3,350,462     1,403,597        51,800
                                   ------------  ------------  ------------
    Total expenses                   15,188,049     9,263,094     7,015,808
                                   ------------  ------------  ------------
Net investment income                30,000,141    24,243,497    13,491,984
                                   ------------  ------------  ------------
Net change in unrealized
 (depreciation) appreciation on
 investments                        (19,391,815)   81,836,604    32,203,525
                                   ------------  ------------  ------------
Net realized gains (losses) on
 investments                          3,600,539   (42,132,660)  (10,513,051)
                                   ------------  ------------  ------------
Net increase in net assets
 resulting from operations         $ 14,208,865  $ 63,947,441  $ 35,182,458
                                   ============  ============  ============

Net increase in net assets
 resulting from net investment
 income per common share:
      Basic and diluted            $       0.92  $       0.89  $       0.51
Net increase in net assets
 resulting from operations per
 common share:
      Basic and diluted            $       0.44  $       2.35  $       1.32
Weighted average shares of common
 stock outstanding:
      Basic and diluted              32,433,101    27,253,552    26,624,217




TICC CAPITAL CORP.

FINANCIAL HIGHLIGHTS (UNAUDITED)



                                Year Ended      Year Ended     Year Ended
                               December 31,    December 31,   December 31,
                                   2011            2010           2009
                               ------------   -------------  -------------

Per Share Data
Net asset value at beginning
 of period                     $       9.85   $        8.36  $        7.68
                               ------------   -------------  -------------

Net investment income(1)               0.92            0.89           0.51
Net realized and unrealized
 capital gains (losses)(2)            (0.47)           1.19           0.81
                               ------------   -------------  -------------

Total from net investment
 operations                            0.45            2.08           1.32
                               ------------   -------------  -------------

Distributions from net
 investment income                    (0.99)          (0.81)         (0.60)

Distributions from net
 realized capital gains                   -               -              -

Tax return of capital
 distributions                            -               -              -
                               ------------   -------------  -------------

Total distributions(3)                (0.99)          (0.81)         (0.60)
                               ------------   -------------  -------------

Effect of shares issued, net
 of offering expenses                 (0.01)           0.22          (0.04)
                               ------------   -------------  -------------

Net asset value at end of
 period                        $       9.30   $        9.85  $        8.36
                               ============   =============  =============

Per share market value at
 beginning of period           $      11.21   $        6.05  $        3.80
Per share market value at end
 of period                     $       8.65   $       11.21  $        6.05
Total return(4)                      (14.19%)        102.39%         81.15%
Shares outstanding at end of
 period                          32,818,428      31,886,367     26,813,216
Ratios/Supplemental Data
Net assets at end of period
 (000's)                            305,102         314,118        224,092
Average net assets (000's)          318,305         243,723        206,183
Ratio of expenses to average
 net assets:
  Expenses before incentive
   fees                                3.72%           3.22%          3.38%
  Net investment income
   incentive fees                      0.70%           0.58%          0.02%
  Capital gains incentive fees         0.35%              -              -
                               ------------   -------------  -------------

Total ratio of expenses to
 average net assets                    4.77%           3.80%          3.40%
                               ============   =============  =============

Ratio of expenses, excluding
 interest expense, to average
 net assets                            4.38%           3.80%          3.40%

Ratio of net investment income
 to average net assets                 9.42%           9.95%          6.54%


TICC CAPITAL CORP.

FINANCIAL HIGHLIGHTS (UNAUDITED)



                               Year Ended     Year Ended
                              December 31,   December 31,
                                  2008           2007
                              ------------   ------------

Per Share Data
Net asset value at beginning
 of period                    $      11.94   $      13.77
                              ------------   ------------

Net investment income(1)              0.91           1.32
Net realized and unrealized
 capital gains (losses)(2)           (2.94)         (1.79)
                              ------------   ------------

Total from net investment
 operations                          (2.03)         (0.47)
                              ------------   ------------

Distributions from net
 investment income                   (0.98)         (1.37)

Distributions from net
 realized capital gains                  -          (0.05)

Tax return of capital
 distributions                       (0.08)         (0.02)
                              ------------   ------------

Total distributions(3)               (1.06)         (1.44)
                              ------------   ------------

Effect of shares issued, net
 of offering expenses                (1.17)          0.08
                              ------------   ------------

Net asset value at end of
 period                       $       7.68   $      11.94
                              ============   ============

Per share market value at
 beginning of period          $       9.23   $      16.14
Per share market value at end
 of period                    $       3.80   $       9.23
Total return(4)                     (50.23%)       (36.26%)
Shares outstanding at end of
 period                         26,483,546     21,563,717
Ratios/Supplemental Data
Net assets at end of period
 (000's)                           203,367        257,370
Average net assets (000's)         251,320        277,994
Ratio of expenses to average
 net assets:
  Expenses before incentive
   fees                               5.82%          5.90%
  Net investment income
   incentive fees                     0.19%          0.09%
  Capital gains incentive fees           -              -
                              ------------   ------------

Total ratio of expenses to
 average net assets                   6.01%          5.99%
                              ============   ============

Ratio of expenses, excluding
 interest expense, to average
 net assets                           4.10%          3.72%

Ratio of net investment income
 to average net assets                8.83%          9.78%

(1)  Represents per share net investment income for the period, based upon
     average shares outstanding.
(2)  Net realized and unrealized capital gains include rounding adjustments
     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.
     For the years ending December 31, 2008 and 2007, approximately $0.08
     per share and $0.02 per share of the Company's distributions were
     characterized as a tax return of capital to the Company's stockholders,
     respectively.
(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.

About TICC Capital Corp.

We are a publicly traded business development company principally engaged in providing capital to small to mid-size companies. While the structures of our financings vary, we look to invest primarily in the debt of established 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:

Bruce Rubin
203-983-5280
Patrick Conroy
203-983-5282

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