Attached files
| file | filename |
|---|---|
| 8-K - FORM 8-K - Barings BDC, Inc. | g22439e8vk.htm |
Exhibit 99.1
|
3700 Glenwood Ave., Ste. 530 Raleigh, NC 27612 |
TRIANGLE CAPITAL CORPORATION REPORTS FOURTH QUARTER
AND FULL YEAR 2009 RESULTS
AND FULL YEAR 2009 RESULTS
RALEIGH,
NC — March 10, 2010, Triangle Capital Corporation (NASDAQ: TCAP)
(“Triangle” or the “Company”), a leading specialty finance company that provides
customized financing solutions to lower middle market companies located throughout the
United States, today announced its results for the fourth quarter of 2009 and the full
year of 2009.
In commenting on the Company’s results, Garland S. Tucker, III, President and Chief
Executive Officer, stated, “Considering the difficult operating environment many
companies faced during 2009, I could not be more pleased with our team and our
investment portfolio’s performance during the year. We grew our net investment income
by 32% and we increased our distributions to stockholders by 16%. While we don’t yet
believe the broader economy is fully on the road to recovery, we are encouraged by the
positive signs we are seeing as we move into 2010.”
Fourth Quarter 2009 Results
Total investment income during the fourth quarter of 2009 was $7.6 million, compared
to total investment income of $6.6 million for the fourth quarter of 2008,
representing an increase of approximately 14.8%. The Company’s increase in investment
income is primarily attributable a $0.8 million increase in total loan interest, fee,
dividend and paid-in-kind interest income due to a net increase in portfolio
investments.
Net investment income during the fourth quarter of 2009 was $4.0 million, compared to
net investment income of $3.0 million for the fourth quarter of 2008, representing an
increase of approximately 36.9%. Net investment income per share during the fourth
quarter of 2009 was $0.39 based on weighted average shares outstanding during the
quarter of 10.3 million, compared to $0.43 per share during the fourth quarter of
2008.
The Company’s net increase in net assets resulting from operations was $8.3 million
during the fourth quarter of 2009, as compared to $1.5 million during the fourth
quarter of 2008. The Company’s net increase in net assets resulting from operations
was $0.80 per share during the fourth quarter of 2009, based on weighted average
shares outstanding during the quarter of 10.3 million, as compared to $0.22 per share
during the fourth quarter of 2008.
Full Year 2009 Results
For the year ended December 31, 2009, total investment income was $27.8 million,
compared to total investment income of $21.4 million for the year ended December 31,
2008, representing an increase of 30.0%. Total investment income in 2009 consisted of
$27.1 million of loan interest, fee, dividend income and PIK interest income and $0.6
million of interest income from cash on hand. Total investment income in 2008
consisted of $21.1 million of loan interest, fee, dividend income and PIK interest
income and $0.3 million of interest income from cash on hand. During 2009, the
Company’s total investment income was primarily impacted by new investments funded
during the year which totaled approximately $48.5 million.
Net investment income for 2009 was $14.0 million, compared to net investment income of
$10.6 million during 2008, representing an increase of 32.3%. Net investment income
per share during 2009 was $1.63, based on the Company’s weighted average shares
outstanding during the year of 8.6 million, compared to $1.54 per share during 2008.
For the year ended December 31, 2009, Triangle recorded a net realized gain on
investments of $0.4 million and net unrealized depreciation of investments, net of
income taxes, in the amount of $10.3 million. As a result of these events, the
Company’s net increase in net assets resulting from operations during the year ended
December 31, 2009 was $4.0 million as compared to $7.6 million for the year ended
December 31, 2008. The Company’s net increase in net assets resulting from operations
was $0.47 per share during 2009, based on the Company’s weighted average shares
outstanding during the year of 8.6 million, compared to $1.11 per share in 2008.
The Company’s net asset value per share at December 31, 2009, was $11.03, based on
total shares outstanding at December 31, 2009 of 11.7 million, as compared to the
Company’s net asset value per share at December 31, 2008 of $13.22. As of December
31, 2009, the Company’s weighted average yield on all of its outstanding debt
investments was approximately 14.7%, compared to 14.4% at December 31, 2008.
Dividends
and distributions per share for the year ending December 31, 2009, totaled $1.67
compared to dividends and distributions of $1.44 during 2008, representing an increase
of 16%.
Liquidity and Capital Resources
At December 31, 2009, the Company had cash and cash equivalents totaling $55.2 million
and available SBA debentures of $28.1 million equating to approximately $83.3 million
of liquidity. Commenting on the Company’s liquidity position, Steven C. Lilly, Chief
Financial Officer, stated, “Due to our investment portfolio’s positive performance and
our ability to raise approximately $20 million of additional equity capital during the
fourth quarter of 2009, Triangle enters 2010 with significant flexibility from an
operational standpoint.”
As of December 31, 2009, the Company had issued non-callable, 10-year, fixed rate
Small Business Administration (“SBA”) guaranteed debentures totaling $121.9 million.
In addition, the Company has applied for a second SBIC license, which, if approved by
the SBA, would allow the Company to issue up to an additional $75.0 million in
SBA-guaranteed debentures.
During the fourth quarter of 2009, the Company closed an underwritten public offering
of 1.8 million shares of common stock with net proceeds of approximately $20.2
million.
Dividend and Distribution Information
As previously announced on December 1, 2009, Triangle’s Board of Directors declared a
cash dividend of $0.41 per share with a record date of December 22, 2009, and a
payable date of January 5, 2010. This was the Company’s twelfth consecutive quarterly
dividend since its initial public offering in February, 2007.
Portfolio Investments
During the year ended December 31, 2009, the Company made seven new investments
totaling $43.0 million, additional debt investments in three existing portfolio
companies totaling $4.1 million, and five additional equity investments in existing
portfolio companies of approximately $1.4 million. The Company also sold two
investments in portfolio companies for approximately $1.9 million, resulting in
realized gains totaling $1.8 million and recognized realized losses related to
restructurings of two portfolio companies totaling $1.3 million. The Company had four
portfolio company loans repaid at par in the amount of $13.2 million. In addition,
normal principal repayments, partial loan prepayments and payment in kind interest
repayments totaled approximately $9.2 million for the year ended December 31, 2009.
Previously announced investment transactions during the fourth quarter of 2009 are summarized as follows:
On November 10, 2009, Triangle made an $8.0 million debt investment with warrants in a
leading physician management company that provides contracted outsourced
anesthesiology services to hospitals and medical centers in the Midwest.
On
November 25, 2009, the Company made a $7.0 million subordinated debt investment in CRS
Reprocessing Services, LLC (“CRS”) as part of a $12.0 million committed debt facility
which, under certain circumstances, may be expanded to $16.0 million. Triangle funded
$3.0 million at closing. An additional $4.0 million from Triangle is expected to be
funded in tranches over the next several months. CRS, headquartered in Louisville,
Kentucky, is a global provider of on-site fluid reprocessing services for the solar
power and semiconductor industries as well as aluminum cold rolling operations.
On December 24, 2009, Triangle made an $8.0 million subordinated debt investment in
ZoomSystems, Inc. (“ZoomSystems”). ZoomSystems partners with leading brands to
implement networks of fully automated retail kiosks in high-traffic locations such as
airports, shopping centers, supermarkets and retail stores.
Annual Meeting of Stockholders
The 2010 Annual Meeting of Stockholders of Triangle Capital Corporation will be held
at The Woman’s Club of Raleigh, 3300 Woman’s Club Drive, Raleigh, NC 27612 on
Wednesday, May 5, 2010, at 8:30 a.m. (Eastern Time) for stockholders of record as of
the close of business on March 1, 2010.
About Triangle Capital Corporation
Triangle Capital Corporation (www.TCAP.com) is a specialty finance company organized
to provide customized financing solutions to lower middle market companies located
throughout the United States. Triangle’s investment objective is to seek attractive
returns by generating current income from debt investments and capital appreciation
from equity related investments. Triangle’s investment philosophy is to partner with
business owners, management teams and financial sponsors to provide flexible financing
solutions to fund growth, changes of control, or other corporate events. Triangle
typically invests $5.0 — $15.0 million per transaction in companies with annual
revenues between $20.0 and $75.0 million and EBITDA between $3.0 and $20.0 million.
Triangle has elected to be treated as a business development company under the
Investment Company Act of 1940 (“1940 Act”). Triangle is required to comply with a
series of regulatory requirements under the 1940 Act as well as applicable NASDAQ,
federal and state laws and regulations. Triangle has elected to be treated as a
regulated investment company under the Internal Revenue Code of 1986. Failure to
comply with any of the laws and regulations that apply to Triangle could have a
material adverse effect on Triangle and its shareholders.
Forward
Looking Statements
This press release may contain forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. Any such statements, other than
statements of historical fact, are likely to be affected by other unknowable future
events and conditions, including elements of the future that are or are not under the
Company’s control, and that the Company may or may not have considered; accordingly,
such statements cannot be guarantees or assurances of any aspect of future
performance. Actual developments and results are highly likely to vary materially
from these estimates and projections of the future and some of these
are uncertainties enumerated in Triangle’s
filings with the Securities and Exchange Commission. Such statements speak only as of
the time when made, and the Company undertakes no obligation to update any such
statement now or in the future.
Contacts
Sheri B. Colquitt
Vice President, Investor Relations
919-719-4784
scolquitt@tcap.com
Vice President, Investor Relations
919-719-4784
scolquitt@tcap.com
Steven C. Lilly
Chief Financial Officer
919-719-4789
slilly@tcap.com
Chief Financial Officer
919-719-4789
slilly@tcap.com
# # #
Triangle Capital Corporation
Consolidated Balance Sheets
Consolidated Balance Sheets
| December 31, | ||||||||
| 2009 | 2008 | |||||||
Assets |
||||||||
Investments at fair value: |
||||||||
Non–Control / Non–Affiliate investments (cost
of $143,239,223 and $138,413,589 at
December 31, 2009 and 2008, respectively) |
$ | 138,281,894 | $ | 135,712,877 | ||||
Affiliate investments (cost of $47,934,280
and $30,484,491 at December 31, 2009 and
2008, respectively) |
45,735,905 | 33,894,556 | ||||||
Control investments (cost of $18,767,587 and
$11,253,458 at December 31, 2009 and 2008,
respectively) |
17,300,171 | 12,497,858 | ||||||
Total investments at fair value |
201,317,970 | 182,105,291 | ||||||
Cash and cash equivalents |
55,200,421 | 27,193,287 | ||||||
Interest and fees receivable |
676,961 | 679,828 | ||||||
Prepaid expenses and other current assets |
286,790 | 95,325 | ||||||
Deferred financing fees |
3,540,492 | 3,545,410 | ||||||
Property and equipment, net |
28,666 | 48,020 | ||||||
Total assets |
$ | 261,051,300 | $ | 213,667,161 | ||||
Liabilities and Net Assets |
||||||||
Accounts payable and accrued liabilities |
$ | 2,222,177 | $ | 1,608,909 | ||||
Interest payable |
2,333,952 | 1,881,761 | ||||||
Dividends payable |
4,774,534 | 2,766,945 | ||||||
Taxes payable |
59,178 | 30,436 | ||||||
Deferred revenue |
75,000 | — | ||||||
Deferred income taxes |
577,267 | 843,947 | ||||||
SBA guaranteed debentures payable |
121,910,000 | 115,110,000 | ||||||
Total liabilities |
131,952,108 | 122,241,998 | ||||||
Net assets: |
||||||||
Common stock, $0.001 par value per share
(150,000,000 shares authorized, 11,702,511
and 6,917,363 shares issued and outstanding
as of December 31, 2009 and 2008,
respectively) |
11,703 | 6,917 | ||||||
Additional paid-in-capital |
136,769,259 | 87,836,786 | ||||||
Investment income in excess of distributions |
1,070,452 | 2,115,157 | ||||||
Accumulated realized gains on investments |
448,164 | 356,495 | ||||||
Net unrealized appreciation (depreciation)
of investments |
(9,200,386 | ) | 1,109,808 | |||||
Total net assets |
129,099,192 | 91,425,163 | ||||||
Total liabilities and net assets |
$ | 261,051,300 | $ | 213,667,161 | ||||
Net asset value per share |
$ | 11.03 | $ | 13.22 | ||||
Triangle Capital Corporation
Consolidated Statements of Operations
Consolidated Statements of Operations
| Years Ended December 31, | ||||||||||||
| 2009 | 2008 | 2007 | ||||||||||
Investment income: |
||||||||||||
Loan interest, fee and dividend income: |
||||||||||||
Non-Control / Non-Affiliate investments |
$ | 16,489,943 | $ | 12,381,411 | $ | 6,258,670 | ||||||
Affiliate investments |
4,441,399 | 3,478,644 | 1,808,664 | |||||||||
Control investments |
1,142,764 | 1,434,687 | 1,323,876 | |||||||||
Total loan interest, fee and dividend income |
22,074,106 | 17,294,742 | 9,391,210 | |||||||||
Paid-in-kind interest income: |
||||||||||||
Non-Control / Non-Affiliate investments |
3,114,325 | 2,657,281 | 871,184 | |||||||||
Affiliate investments |
1,539,776 | 665,817 | 225,622 | |||||||||
Control investments |
420,718 | 438,688 | 424,308 | |||||||||
Total paid-in-kind interest income |
5,074,819 | 3,761,786 | 1,521,114 | |||||||||
Interest income from cash and cash
equivalent investments |
613,057 | 302,970 | 1,823,519 | |||||||||
Total investment income |
27,761,982 | 21,359,498 | 12,735,843 | |||||||||
Expenses: |
||||||||||||
Interest expense |
6,900,591 | 4,227,851 | 2,073,311 | |||||||||
Amortization of deferred financing fees |
363,818 | 255,273 | 112,660 | |||||||||
Management fees |
— | — | 232,423 | |||||||||
General and administrative expenses |
6,448,999 | 6,254,096 | 3,894,240 | |||||||||
Total expenses |
13,713,408 | 10,737,220 | 6,312,634 | |||||||||
Net investment income |
14,048,574 | 10,622,278 | 6,423,209 | |||||||||
Net realized gain (loss) on investments —
Non Control / Non-Affiliate |
448,164 | (1,393,139 | ) | (759,634 | ) | |||||||
Net realized gain on investment — Affiliate |
— | — | 141,014 | |||||||||
Net realized gain on investment — Control |
— | 2,828,747 | — | |||||||||
Net unrealized appreciation (depreciation)
of investments |
(10,310,194 | ) | (4,286,375 | ) | 3,061,107 | |||||||
Total net gain (loss) on investments before
income taxes |
(9,862,030 | ) | (2,850,767 | ) | 2,442,487 | |||||||
Provision for taxes |
149,841 | 133,010 | 52,598 | |||||||||
Net increase in net assets resulting from
operations |
$ | 4,036,703 | $ | 7,638,501 | $ | 8,813,098 | ||||||
Net investment income per share — basic and
diluted |
$ | 1.63 | $ | 1.54 | $ | 0.95 | ||||||
Net increase in net assets resulting from
operations per share — basic and diluted |
$ | 0.47 | $ | 1.11 | $ | 1.31 | ||||||
Dividends declared per common share |
$ | 1.62 | $ | 1.44 | $ | 0.98 | ||||||
Capital gains distributions declared per
common share |
$ | 0.05 | — | — | ||||||||
Weighted average number of shares
outstanding — basic and diluted |
8,593,143 | 6,877,669 | 6,728,733 | |||||||||
Triangle Capital Corporation
Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows
| Years Ended December 31, | ||||||||||||
| 2009 | 2008 | 2007 | ||||||||||
Cash flows from operating activities: |
||||||||||||
Net increase in net assets resulting from operations |
$ | 4,036,703 | $ | 7,638,501 | $ | 8,813,098 | ||||||
Adjustments to reconcile net increase in net assets
resulting from operations to net cash used in operating
activities: |
||||||||||||
Purchases of portfolio investments |
(48,475,570 | ) | (93,054,022 | ) | (64,159,172 | ) | ||||||
Repayments received/sales of portfolio investments |
21,431,698 | 20,968,397 | 10,470,803 | |||||||||
Loan origination and other fees received |
952,500 | 1,686,996 | 1,272,002 | |||||||||
Net realized (gain) loss on investments |
(448,164 | ) | (1,435,608 | ) | 618,620 | |||||||
Net unrealized (appreciation) depreciation on investments |
10,576,873 | 3,516,855 | (4,821,366 | ) | ||||||||
Deferred income taxes |
(266,680 | ) | 769,519 | 1,760,259 | ||||||||
Paid-in-kind interest accrued, net of payments received |
(2,165,015 | ) | (1,783,288 | ) | (1,280,950 | ) | ||||||
Amortization of deferred financing fees |
363,818 | 255,273 | 112,660 | |||||||||
Recognition of loan origination and other fees |
(663,506 | ) | (515,289 | ) | (677,615 | ) | ||||||
Accretion of loan discounts |
(421,495 | ) | (169,548 | ) | (205,725 | ) | ||||||
Depreciation |
22,548 | 16,681 | 7,814 | |||||||||
Stock-based compensation |
701,601 | 275,311 | — | |||||||||
Changes in operating assets and liabilities: |
||||||||||||
Interest and fees receivable |
2,867 | (374,669 | ) | (170,340 | ) | |||||||
Prepaid expenses and other current assets |
(191,465 | ) | (47,848 | ) | (47,477 | ) | ||||||
Accounts payable and accrued liabilities |
688,268 | 464,687 | 349,239 | |||||||||
Interest payable |
452,191 | 1,183,026 | 92,439 | |||||||||
Taxes payable |
28,742 | (22,162 | ) | 52,598 | ||||||||
Payable to Triangle Capital Partners, LLC |
— | — | (30,000 | ) | ||||||||
Net cash used in operating activities |
(13,374,086 | ) | (60,627,188 | ) | (47,843,113 | ) | ||||||
Cash flows from investing activities: |
||||||||||||
Purchases of property and equipment |
(3,194 | ) | (30,535 | ) | (41,980 | ) | ||||||
Net cash used in investing activities |
(3,194 | ) | (30,535 | ) | (41,980 | ) | ||||||
Cash flows from financing activities: |
||||||||||||
Borrowings under SBA guaranteed debentures payable |
6,800,000 | 78,100,000 | 5,210,000 | |||||||||
Financing fees paid |
(358,900 | ) | (2,801,524 | ) | (126,342 | ) | ||||||
Proceeds from public offerings, net of expenses |
47,332,682 | — | 64,728,037 | |||||||||
Change in deferred offering costs |
— | — | 1,020,646 | |||||||||
Common stock withheld for payroll taxes upon vesting of
restricted stock |
(66,900 | ) | — | — | ||||||||
Cash dividends/distributions paid |
(12,322,468 | ) | (9,235,216 | ) | (2,964,387 | ) | ||||||
Distribution to partners |
— | — | (751,613 | ) | ||||||||
Net cash provided by financing activities |
41,384,414 | 66,063,260 | 67,116,341 | |||||||||
Net increase (decrease) in cash and cash equivalents |
28,007,134 | 5,405,537 | 19,231,248 | |||||||||
Cash and cash equivalents, beginning of year |
27,193,287 | 21,787,750 | 2,556,502 | |||||||||
Cash and cash equivalents, end of year |
$ | 55,200,421 | $ | 27,193,287 | $ | 21,787,750 | ||||||
Supplemental Disclosure of cash flow information: |
||||||||||||
Cash paid for interest |
$ | 6,448,400 | $ | 3,044,825 | $ | 1,980,872 | ||||||
Summary of non-cash financing transactions: |
||||||||||||
Dividends declared but not paid |
$ | 4,774,534 | $ | 2,766,945 | $ | 2,041,159 | ||||||