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
