Exhibit 99.1 TICC Reports Financial Results for the Year and Quarter Ended December 31, 2004 Greenwich, CT - 2/14/2005 - Technology Investment Capital Corp. (Nasdaq: TICC) announced today results for the year and quarter ended December 31, 2004. HIGHLIGHTS o We recorded net investment income of $1,786,901, or $0.18 per share for the fourth quarter of 2004 and net investment income of $3,363,517, or $0.33 per share for the year ended December 31, 2004. o We closed two new transactions during the fourth quarter of 2004 totaling $28 million, of which $18 million was funded and $10 million was committed: o 3001, Inc. ($13 million - $10 million in senior unsecured notes and $3 million in preferred and common equity) o eXact Advertising, LLC ($15 million - $5 million in senior secured notes with warrants, and a commitment to fund an additional $10 million of senior secured notes with warrants assuming the company achieves certain milestones) o To date, we have closed two additional transactions during 2005, totaling $30 million: o On January 18, 2005, we announced a $15 million transaction with WinZip Computing, Inc. consisting of senior secured notes. o On February 8, 2005, we announced a $15 million transaction with Segovia, Inc. consisting of senior secured notes with warrants. o We have funded and committed approximately $132 million in 11 transactions during 2004 and 2005. o At December 31, 2004, the weighted average yield on our debt investments was 10.8%. o At December 31, 2004, our NAV per share was $13.71. o On February 4, 2005, we raised approximately $42 million in a rights offering. We intend to use the net proceeds from this offering to fund investments in accordance with our investment objective. o We declared and paid a dividend of $0.11 per share during the fourth quarter. o On February 9, 2005, our Board of Directors declared a dividend of $0.14 for the first quarter of 2005, payable on March 31, 2005 to stockholders of record as of March 10, 2005. The ex-dividend date is March 8, 2005. We will host a conference call to discuss our annual and fourth quarter results today, February 14th at 10:00 AM EST. Please call 877-407-8031 to participate. A replay of the conference call will be available for approximately 30 days. The replay number is 877-660-6853, the account number is 1628 and the access code is 134286. 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, 2004 when it becomes available, and subsequent reports on Form 10-Q as they are filed. TECHNOLOGY INVESTMENT CAPITAL CORP. BALANCE SHEETS UNAUDITED DECEMBER 31, DECEMBER 31, 2004 2003 - --------------------------------------------------------------------------------------------------------- ASSETS Investments at fair value (cost: $82,124,730 @ 12/31/04; none @ 12/31/03) $82,124,730 $-- Cash and cash equivalents 57,317,398 138,228,765 Interest receivable - debt investments 489,431 -- Interest receivable - cash and cash equivalents 7,538 23,667 Prepaid assets 102,696 72,446 Other assets 460,666 -- ----------------------------------- Total Assets $140,502,459 $138,324,878 =================================== LIABILITIES Accrued expenses $940,922 $335,810 Accrued offering expenses 300,000 19,441 ----------------------------------- Total Liabilities 1,240,922 355,251 ----------------------------------- STOCKHOLDERS' EQUITY Common stock, $0.01 par value, 100,000,000 shares authorized, and 10,157,848 and 10,000,100 issued and outstanding, respectively 101,578 100,001 Capital in excess of par value 140,445,707 138,189,832 (Overdistributed) net investment income (loss) (1,285,748) (320,206) ----------------------------------- Total Stockholders' Equity 139,261,537 137,969,627 ----------------------------------- TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $140,502,459 $138,324,878 - --------------------------------------------------------------------------------------------------------- TECHNOLOGY INVESTMENT CAPITAL CORP. SCHEDULE OF INVESTMENTS UNAUDITED COMPANY (1) INDUSTRY INVESTMENT COST FAIR VALUE (2) - ----------------------------------------------------------------------------------------------------------------------- Questia Media, Inc. Digital media Senior secured notes (3) (4) $8,926,671 $8,926,671 (12%, due Jan. 28, 2009) MortgageIT, Inc. Financial services Senior secured notes 15,000,000 15,000,000 (7.5%, due March 29, 2007) Advanced Aesthetics Medical services Senior secured notes 10,000,000 10,000,000 Institute (12%, due March 31, 2009) Warrants to purchase common stock -- -- The Endurance Webhosting Senior secured notes (4) 6,863,039 6,863,039 International Group (10.0%, due July 23, 2009) Warrants to purchase convertible preferred 150,000 150,000 stock DirectRevenue, LLC Internet advertising Senior secured notes (5) 5,538,755 5,538,755 (12%, due Aug. 19, 2007) Warrants to purchase common units 240,000 240,000 Avue Technologies Software Senior secured notes (4) (5) 1,993,890 1,993,890 Corporation (15%, due August 24, 2009) Warrants to purchase common stock 13,000 13,000 TrenStar, Inc. Logistics Senior secured notes (3) 15,389,375 15,389,375 (10.5%, due Sept. 1, 2009) Warrants to purchase Convertible preferred stock -- -- 3001, Inc. Geospatial imaging Senior unsecured notes 10,000,000 10,000,000 (10.0%, due Oct. 1, 2010) Preferred stock (6) 2,000,000 2,000,000 Common stock (6) 1,000,000 1,000,000 eXact Advertising, Internet advertising Senior secured notes (4) 4,671,000 4,671,000 LLC (10.1%, due Nov. 24, 2009) Warrants to purchase common units 339,000 339,000 ----------------------------------- Total $82,124,730 $82,124,730 =================================== (1) We do not "control" and are not an "affiliate" of any of our portfolio companies, each as defined in the Investment Company Act of 1940 (the "1940 Act"). In general, under the 1940 Act, we would "control" a portfolio company if we owned 25% or more of its voting securities and would be an "affiliate" of a portfolio company if we owned 5% or more of its voting securities. (2) Fair value is determined by the Board of Directors of the Company. (3) Investment has some payment-in-kind interest. (4) Transaction also includes a commitment for additional notes. (5) Cost and fair value reflect repayment of principal. (6) Preferred stock and common stock are indirectly held through limited liability company interests. TECHNOLOGY INVESTMENT CAPITAL CORP. STATEMENTS OF OPERATIONS UNAUDITED FOR THE PERIOD JULY 21, 2003 (INCEPTION) YEAR ENDED THROUGH DECEMBER DECEMBER 31, 2004 31, 2003 - ------------------------------------------------------------------------------------------------------------ INVESTMENT INCOME Interest income - debt investments $4,550,566 $-- Interest income - cash and cash equivalents 1,092,274 114,282 Other income 1,744,868 - --------------------------------------- Total Investment Income 7,388,158 114,282 --------------------------------------- EXPENSES Salaries and benefits 207,698 27,119 Investment advisory fees 2,773,849 259,138 Professional fees 587,216 30,110 Insurance 83,450 7,920 Directors' fees 141,000 -- Transfer agent and custodian fees 86,087 9,180 Organizational expenses -- 349,316 General and administrative 145,341 9,324 --------------------------------------- Total Expenses 4,024,641 692,107 --------------------------------------- NET INVESTMENT INCOME (LOSS) $3,363,517 $(577,825) ======================================= NET INCREASE (DECREASE) IN STOCKHOLDERS' EQUITY RESULTING FROM OPERATIONS $3,363,517 $(577,825) Net increase (decrease) in stockholders' equity resulting from Operations per common share: Basic and Diluted $0.33 $(0.25) Weighted average shares of common stock outstanding: Basic and Diluted 10,093,660 2,348,987 - ------------------------------------------------------------------------------------------------------------ TECHNOLOGY INVESTMENT CAPITAL CORP. FINANCIAL HIGHLIGHTS UNAUDITED PERIOD JULY 21, 2003 (INCEPTION) YEAR ENDED THROUGH DECEMBER DECEMBER 31, 2004 31, 2003 - ------------------------------------------------------------------------------------------------------------- PER SHARE DATA Net asset value at beginning of period $13.80 $15.00 Offering costs and underwriters discount 0.00 (1.14) Net investment income (loss) 0.33 (1) (0.06) (2) Net realized and unrealized gains (3) 0.01 0.00 Distributions from net investment income (0.33) 0.00 Tax return of capital distribution (0.10) 0.00 --------------------------------------- Net asset value at end of period $13.71 $13.80 ======================================= Per share market value at beginning of period 15.55 $15.00 (4) Per share market value at end of period 15.01 15.55 Total return (5) (0.71)% 3.67% Shares outstanding at end of period 10,157,848 10,000,100 RATIOS/SUPPLEMENTAL DATA Net assets at end of period ($000s) $139,261 $137,970 Average net assets ($000s) 137,568 28,703 Ratio of expenses to average net assets 2.9% 2.4%* Ratio of net investment income (loss) to average net assets 2.4% (2.0)%* - ------------------------------------------------------------------------------------------------------------- * Not annualized. (1) Represents per share net investment income for the period. (2) Calculated in accordance with Securities and Exchange Commission Form N-2, Part A, item 4.1.9. (3) Represents rounding adjustment to reconcile change in net asset value per share; there were no actual realized or unrealized gains or losses for the periods presented. (4) Represents initial public offering price. (5) Total return equals the increase of the ending market value over the beginning market value, plus distributions, divided by the beginning market value. The return for 2003 has not been annualized. ABOUT TECHNOLOGY INVESTMENT CAPITAL CORP. We are a publicly-traded business development company principally engaged in providing capital to small to mid-size technology-related companies. While the structures of our financings vary, we look to invest primarily in the debt and equity of established technology-related businesses. Companies interested in learning more about financing opportunities should contact Barry Osherow at (203) 661-9572 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.
Oxford Square Capital (OXSQ) 8-KResults of Operations and Financial Condition
Filed: 14 Feb 05, 12:00am