TICC Announces Results of Operations for the Quarter Ended September 30, 2015 and Quarterly Distribution of $0.29 per Share
(firmenpresse) - GREENWICH, CT -- (Marketwired) -- 11/06/15 -- TICC Capital Corp. (NASDAQ: TICC) (the "Company," "we," "us," or "our") announced today its financial results for the quarter ended September 30, 2015, and announced a distribution of $0.29 per share for the fourth quarter of 2015.
HIGHLIGHTS
For the quarter ended September 30, 2015, we recorded GAAP net investment income of approximately $10.9 million, or approximately $0.18 per share. In the third quarter, we also recorded net realized capital gains of $0.4 million, and unrealized depreciation of $41.0 million. In total we had a net decrease in net assets from operations of approximately $29.7 million, or $0.50 per share.
Our core net investment income ("Core NII" also previously referred to as "estimated distributable net investment income") for the quarter ended September 30, 2015 was approximately $0.34 per share.
Core NII represents that portion of our estimated annual taxable net investment income available for distribution to our common shareholders attributable to the quarter. The Company''s distribution policy is based, to a significant extent, on our Core NII.
Total investment income for the third quarter of 2015 amounted to approximately $23.1 million, which represents a decrease of approximately $0.6 million from the second quarter of 2015.
For the quarter ended September 30, 2015, we recorded GAAP investment income from our portfolio as follows:
approximately $14.1 million from our debt investments,
approximately $8.6 million from our CLO equity investments,
approximately $0.4 million from all other sources.
While reportable GAAP earnings from our CLO equity class investments for the three months ended September 30, 2015 was approximately $8.6 million, we received or were entitled to receive approximately $18.0 million in distributions. Our experience has been that cash flows have historically represented a reasonable estimate of CLO equity investment taxable earnings. In general, we currently expect our annual taxable income to be higher than our GAAP earnings on the basis of the difference between cash distributions actually received (and record date distributions to be received) and the effective yield income. Our distribution policy will be based upon our estimate of that taxable income (as required for a regulated investment company).
Our weighted average credit rating on a fair value basis was 2.2 at the end of the third quarter of 2015 (compared to 2.1 at the end of the second quarter of 2015).
As of the end of the third quarter of 2015 we had no loans held on non-accrual status.
Our total expenses for the quarter ended September 30, 2015 were approximately $12.3 million, compared to total expenses of approximately $12.9 million for the quarter ended June 30, 2015.
Our Board of Directors has declared a distribution of $0.29 per share for the fourth quarter of 2015.
Payable Date: December 31, 2015
Record Date: December 16, 2015
As of September 30, 2015, the weighted average yield of our debt investments at current cost stood at approximately 7.2%, compared with 7.6% as of June 30, 2015.
As of September 30, 2015, the weighted average effective yield (GAAP) of CLO equity investments at current cost was approximately 11.3%, compared with 12.6% as of June 30, 2015
As of September 30, 2015, the weighted average cash yield of cash income producing CLO equity investments at current cost was approximately 25.4% which also stood at 25.4% as of June 30, 2015.
We note that the cash yield calculated on the CLO equity investments is based on the cash distributions we received or were entitled to receive at each respective period end and excludes the CLO equity investments which have not yet made their inaugural payment.
As of September 30, 2015, net asset value per share was $7.81 compared with the net asset value per share as of June 30, 2015 of $8.60.
Our Board of Directors has authorized a new program for the purpose of repurchasing up to $75 million worth of our common stock. Under the new repurchase program, we may, but are not obligated to, repurchase our outstanding common stock in the open market from time to time through June 30, 2016.
On a supplemental basis, we provide information relating to core net investment income and its ratio to net assets, which are non-GAAP measures. These measures are provided in addition to, but not as a substitute for, net investment income. Our non-GAAP measures may differ from similar measures by other companies, even if similar terms are used to identify such measures. It should be noted that the current description of core net investment income differs from prior descriptions due to the change in the method of accounting for CLO equity investment income, effective January 1, 2015. Core net investment income represents net investment income adjusted for additional taxable income on our CLO equity investments and also excludes our capital gains incentive fee.
Income from CLO equity investments, for generally accepted accounting purposes, is recorded using the effective yield method. This method requires the calculation of an effective yield to expected redemption based upon an estimation of the amount and timing of future cash flows, including recurring cash flows as well as future principal payments; the difference between the actual cash received (and record date distributions to be received), and the effective yield calculation is an adjustment to cost. Accordingly, investment income recognized on CLO equity investments in the GAAP statement of operations differs from the estimated taxable net investment income (which is generally based upon the cash distributions actually received and record date distributions to be received by us during the period), and the resulting difference is referred to below as "CLO equity additional estimated taxable income." In addition, since the capital gains incentive fee, for generally accepted accounting purposes, is based on the hypothetical liquidation of the entire portfolio (and as any capital gains incentive fee may be non-recurring), such fees are excluded when calculating core net investment income. We believe that core net investment income is a useful indicator of performance during this period. Further, because the RIC requirements are to distribute taxable earnings, and capital gains incentive fees may not be fully currently tax deductible, core net investment income provides a better indication of estimated taxable income for the period.
The following tables provide a reconciliation of net investment income to core net investment income (for the three months ended September 30, 2015 and 2014, respectively):
We will host a conference call to discuss our third quarter results today, Friday, November 6, 2015 at 10:00 AM ET. Please call 888-339-0740 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 10075944.
A presentation containing further detail regarding our year-end and quarterly results of operations has been posted under the Investor Relations section of our website at .
The following financial statements are unaudited and without footnotes. Readers who would like additional information should obtain our Form 10-Q for the period ended September 30, 2015, 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 businesses, 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.
Bruce Rubin
203-983-5280
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Datum: 06.11.2015 - 07:00 Uhr
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