TICC Announces Results of Operations for the Quarter Ended March 31, 2016 and Announces Quarterly Distribution of $0.29 per Share
(firmenpresse) - GREENWICH, CT -- (Marketwired) -- 05/03/16 -- TICC Capital Corp. (NASDAQ: TICC) ("TICC," the "Company," "we," "us" or "our") announced today its financial results for the quarter ended March 31, 2016, and announced a distribution of $0.29 per share for the second quarter of 2016.
HIGHLIGHTS
For the quarter ended March 31, 2016, we recorded net investment income of approximately $4.0 million, or approximately $0.08 per share. In the first quarter, we also recorded net realized capital losses of $0.6 million, and net unrealized depreciation of $20.6 million. Our CLO positions experienced significant price declines in the quarter, with $9.5 million of that net unrealized depreciation associated with our CLO investments. In total we had a net decrease in net assets from operations of approximately $17.1 million, or $0.32 per share.
Our core net investment income ("Core NII") for the quarter ended March 31, 2016 was approximately $0.29 per share.
Core NII represents net investment income adjusted for additional cash distributions received, or entitled to be received (if any, in either case), on our CLO equity investments and also excludes any capital gains incentive fees we recognize but have no obligation to pay in any period. (See additional information under "Supplemental Information Regarding Core Net Investment Income" below).
Total investment income for the first quarter of 2016 amounted to approximately $15.3 million, which represents a decrease of approximately $3.5 million from the fourth quarter of 2015.
For the quarter ended March 31, 2016, we recorded investment income from our portfolio as follows:
approximately $8.9 million from our debt investments,
approximately $5.9 million from our collateralized loan obligation ("CLO") equity investments, and
approximately $0.5 million from all other sources.
While reportable GAAP earnings from our CLO equity class investments for the three months ended March 31, 2016 was approximately $5.9 million, we received or were entitled to receive approximately $17.4 million in distributions from these investments. While our experience has been that cash flows have historically represented our view of a reasonable estimate of CLO equity investment taxable earnings, we believe there to be significantly less certainty as to the final determination of taxable income with respect to our CLO equity investments in light of recent volatility in the corporate loan market. 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 weighted average credit rating on a fair value basis was 2.2 at the end of the first quarter of 2016 (compared to 2.2 at the end of the fourth quarter of 2015).
Our total expenses for the quarter ended March 31, 2016 were approximately $11.2 million, down from the fourth quarter of 2015 total expenses by approximately $3.1 million. The decrease is primarily the result of a $1.6 million reduction in interest expense, a $1.3 million reduction in professional fees and a $0.5 million reduction in investment advisory fees. For the quarter ended March 31, 2016, we recognized approximately $1.6 million of expenses related to the engagement of legal and financial advisors to the Company''s Special Committee.
Our Board of Directors has declared a distribution of $0.29 per share for the second quarter of 2016.
Payable Date: June 30, 2016
Record Date: June 16, 2016
During the first quarter of 2016:
We invested approximately $12.8 million, consisting of $9.7 million in corporate securities, $2.7 million in CLO debt and $0.4 million in CLO equity.
We received proceeds of approximately $17.2 million from repayments, sales and amortization payments on our debt investments.
As of March 31, 2016, the weighted average yield of our debt investments at current cost was approximately 7.1%, compared with 7.1% as of December 31, 2015.
As of March 31, 2016, the weighted average effective yield (GAAP) of CLO equity investments at current cost was approximately 8.5%, compared with 11.3% as of December 31, 2015.
As of March 31, 2016, the weighted average cash yield of our CLO equity investments was approximately 24.7%, compared with 27.4% as of December 31, 2015.
As of March 31, 2016, net asset value per share was $5.89 compared with the net asset value per share as of December 31, 2015 of $6.40.
At March 31, 2016, we had one investment on non-accrual status with a cost basis of approximately $15.5 million and a fair value of approximately $10.4 million. This investment was purchased for a total of approximately $10.7 million in separate purchases in 2011 and 2013. This is the same investment that was on non-accrual status in the prior quarter ended December 31, 2015.
During the first quarter of 2016, we repurchased approximately 4.9 million shares of our common stock at a weighted average price of approximately $5.20 per share for a total of approximately $25.6 million
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 as a substitute for, net investment income. Our non-GAAP measure may differ from similar measures by other companies, even if similar terms are used to identify such measures. Core net investment income represents net investment income adjusted for additional cash distributions received, or entitled to be received (if any, in either case), on our CLO equity investments.
Income from investments in the "equity" class securities of CLO equity vehicles, for GAAP purposes, is recorded using the effective interest method based upon an effective yield to the expected redemption utilizing estimated cash flows, compared to the cost resulting in an effective yield for the investment; the difference between the actual cash received or distributions entitled to be received and the effective yield calculation is an adjustment to cost. Accordingly, investment income recognized on CLO equity securities in the GAAP statement of operations differs from the cash distributions actually received by us during the period, (referred to below as "CLO equity additional distributions").
Further, as the RIC requirements are to distribute taxable earnings, core net investment income may provide a better indication of estimated taxable income for a reporting period than does GAAP net investment income, although we can offer no assurance that will be the case as the ultimate tax character of our earnings cannot be determined until tax returns are prepared after the end of a fiscal year. We note that these non-GAAP measures may not be useful indicators of taxable earnings, particularly during periods of market disruption and volatility.
The following table provides a reconciliation of net investment income to core net investment income for the three months ended March 31, 2016:
We will host a conference call to discuss our first quarter results today, Tuesday, May 3, 2016 at 10:00 AM ET. Please call 1-888-339-0740 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 10085617.
A presentation containing further detail regarding our 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 March 31, 2016, 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.
Contact:
Bruce Rubin
203-983-5280
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Datum: 03.05.2016 - 06:00 Uhr
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News-ID 1432180
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