GREENWICH, CT — (Marketwire) — 05/04/12 — TICC Capital Corp. (NASDAQ: TICC) announced today its financial results for the quarter ended March 31, 2012 and a distribution of $0.27 per share for the second quarter of 2012.
HIGHLIGHTS
Total investment income for the first quarter of 2012 amounted to approximately $14.7 million, up approximately 11.6% from the fourth quarter of 2011due largely to greater distribution income from our securitization vehicle investments.
For the quarter ended March 31, 2012, we recorded net investment income of approximately $8.2 million, or approximately $0.24 per share. Excluding the impact of a capital gains incentive fee, our core net investment income(1) was approximately $9.2 million, or approximately $0.28 per share. We also recorded net unrealized appreciation of approximately $8.6 million and net realized capital gains of approximately $300,000. In total, we had a net increase in net assets resulting from operations of approximately $0.51 per share for the first quarter, or approximately $0.54 per share of core net increase in net assets resulting from operations(1).
As of the end of the first quarter of 2012 there were no loans on non-accrual status.
Our weighted average credit rating on a fair value basis was 2.1 at the end of the first quarter of 2012 (compared to 2.2 at the end of the fourth quarter of 2011).
Operating expenses before the capital gains incentive fee for the quarter ended March 31, 2012 were approximately $5.5 million, which was up from the fourth quarter of 2011 by approximately $900,000 due largely to increased legal and audit fees as well as higher net investment income incentive fees.
The reported capital gains incentive fee expense increased by approximately $1,066,000 for the quarter ended March 31, 2012. 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 $2.2 million capital gains incentive fee accrual as of March 31, 2012 relates entirely to this 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.
Our Board of Directors has declared a distribution of $0.27 per share for the second quarter of 2012.
Payable Date: June 29, 2012
Record Date: June 15, 2012
During the first quarter of 2012, we deployed approximately $57.5 million in additional investments. For the same period, we received proceeds of approximately $13.4 million from repayments, sales and amortization payments on our debt investments.
At March 31, 2012, the weighted average yield of our debt investments was approximately 11.6%, compared with 11.3% at December 31, 2011.
At March 31, 2012, net asset value per share was $9.50 compared with the net asset value per share at December 31, 2011 of $9.30.
On a supplemental basis, we provide information relating to core net investment income and core net increase in net assets resulting from operations, non-GAAP measures. These measures are provided in addition to, but not a substitute for, net investment income and net increase in net assets resulting from operations. Core net investment income represents net investment income excluding our capital gains incentive fee. Core net increase in net assets resulting from operations represents net increase in net assets resulting from operations excluding the 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 and core net increase in net assets resulting from operations are useful indicators 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 ended March 31, 2012):
We will host a conference call to discuss our first quarter results today, Friday, May 4 at 10:00 AM ET. Please call 1-877-317-6789 to participate. A replay of the conference call will be available for approximately 30 days. The replay number is 1-877-344-7529, and the replay passcode is 10013802.
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.
About TICC Capital Corp.
TICC Capital Corp. is a publicly-traded business development company principally engaged in providing capital to established small and mid-size companies, investing in syndicated bank loans and purchasing debt and equity tranches of collateralized loan obligations. Companies interested in learning more about financing opportunities should contact Debdeep Maji at (203) 983-5285.
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