FOR IMMEDIATE RELEASE
May 06, 2009


Contact
Garland S. Tucker, III, Chairman and CEO (919) 719-4779
E. Ashton Poole, President and COO (919) 747-8618
Steven C. Lilly, Chief Financial Officer (919) 719-4789


3700 Glenwood Avenue, Suite 530
Raleigh, NC 27612
Tel (919) 719-4770
Fax (919) 719-4777

www.TCAP.com

Print Print page   Email Email page   PDF Download PDF    Add to Briefcase
« Previous Release | Next Release »



Triangle Capital Corporation Reports First Quarter 2009 Results

RALEIGH, N.C., May 6, 2009 (GlobeNewswire via COMTEX News Network) -- 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 financial results for the first quarter of 2009.

Commenting on the quarter, Garland S. Tucker, III, President and CEO, stated, "During the first quarter our investment portfolio continued to perform in line with expectations. On April 27 we were also able to raise approximately $12 million of incremental equity capital in a follow-on offering. This new equity capital provides us access to additional SBA financing which we believe will be attractive for Triangle's shareholders as we continue to execute our disciplined strategy of growing our investment portfolio."

First Quarter 2009 Results

Total investment income during the first quarter of 2009 was $6.5 million, compared to total investment income of $3.9 million for the first quarter of 2008, representing an increase of 68.3%. The Company's increase in investment income is primarily attributable to new portfolio investments made during 2008 and 2009 which resulted in an increase in total loan interest, fee, dividend and paid-in-kind income in the amount of $2.7 million.

Net investment income during the first quarter of 2009 was $3.0 million, compared to net investment income of $1.9 million for the first quarter of 2008, representing an increase of 58.7%. Net investment income per share during the first quarter of 2009 was $0.43 compared to $0.28 during the first quarter of 2008.

The Company's net decrease in net assets resulting from operations was $0.6 million during the first quarter of 2009, as compared to a net increase in net assets resulting from operations of $0.8 million during the first quarter of 2008. The Company's net decrease in net assets resulting from operations was $0.08 per share during the first quarter of 2009 as compared to a net increase in net assets resulting from operations of $0.11 per share during the first quarter of 2008.

The Company's net asset value per share at March 31, 2009, was $12.46, as compared to $13.22 at December 31, 2008. As of March 31, 2009, the Company's weighted average yield on all of its outstanding debt investments was approximately 14.3%.

Liquidity and Capital Resources

At March 31, 2009, the Company had cash and cash equivalents totaling $17.4 million. On April 27, 2009, Triangle received net proceeds from the public offering of 1,200,000 shares of its common stock totaling approximately $11.9 million. In addition, the Company has granted the underwriters an option, exercisable until May 22, 2009, to purchase up to 180,000 additional shares to cover over-allotments.

As of March, 31, 2009, the Company had non-callable, 10-year, fixed rate SBA-guaranteed debentures totaling $115.1 million. Under the provisions of the American Recovery and Reinvestment Act of 2009 (the "2009 Stimulus Act"), the Company has the ability to issue additional SBA-guaranteed debentures of $34.9 million under its existing SBIC license. In addition, the Company has initiated the process to apply for a second SBIC license, which would allow the Company to issue up to an additional $75.0 million in SBA-guaranteed debentures.

"Triangle's liquidity position has fortunately remained strong and has been even further strengthened by our recent equity offering. With approximately $31 million in cash on hand, we feel well prepared to continue providing our shareholders with a stable, recurring dividend yield," commented Steven C. Lilly, Chief Financial Officer of Triangle.

Dividend and Distribution Information

On February 17, 2009, Triangle announced that its board of directors had declared a cash distribution of $0.05 per share as a distribution of capital gains. The distribution was payable as follows:


                Record Date:   February 27, 2009
                Payment Date:  March 13, 2009

On March 11, 2009, Triangle announced that its board of directors had declared a cash dividend of $0.40 per share. This was the Company's ninth consecutive quarterly dividend since its initial public offering in February 2007, and reflected a 29.0% increase over the same quarter in 2008. The dividend was payable as follows:



                Record Date:   March 25, 2009
                Payment Date:  April 8, 2009

Triangle has adopted a dividend reinvestment plan ("DRIP") that provides for reinvestment of dividends on behalf of its stockholders, unless a stockholder elects to receive cash. As a result, when the Company declares a cash dividend, stockholders who have not opted out of the DRIP will have their cash dividends automatically reinvested in additional shares of the Company's common stock, rather than receiving cash dividends.

When the Company declares and pays dividends, it determines the allocation of the distribution between current income, accumulated income and return of capital on the basis of accounting principles generally accepted in the United States ("GAAP"). At each year end, the Company is required for tax purposes to determine the dividend allocation based on tax accounting principles. Due to differences between GAAP and tax accounting principles, the portion of each dividend distribution that is ordinary income, capital gain or return of capital may differ for GAAP and tax purposes.

Recent Portfolio Activity

During the first quarter of 2009, Triangle made one new investment totaling $5.2 million and five additional investments in existing portfolio companies totaling approximately $4.0 million. The Company also received a full repayment from one portfolio company totaling approximately $2.0 million and normal principal repayments totaling approximately $0.3 million in the first quarter of 2009. New investments and repayments since December 31, 2008, are summarized as follows:

On February 6, 2009, the Company closed a $3.8 million subordinated debt and warrant investment in Inland Pipe Rehabilitation Holding Company ("Inland Pipe"). Triangle's investment was made in support of an acquisition and represents the Company's second investment in Inland Pipe. In June, 2008, Triangle invested $8.0 million in subordinated debt and received a warrant to purchase up to 2.5% of Inland Pipe's membership interests. Inland Pipe provides maintenance, inspection, and repair for piping, sewers, drains, and storm lines by utilizing several of the industry's leading technologies including pipe bursting, cured-in-place-pipe, and spiral wound piping.

On February 25, 2009, the Company's investment in APO Newco, LLC ("APO") of approximately $2.0 million was repaid in full. Triangle's original investment in APO in April, 2007, was $4.3 million, of which $2.3 million had previously been repaid. Triangle continues to hold warrants in APO with a fair value of approximately $1.6 million as of March 31, 2009. APO is a niche provider of commercial and consumer marketing products based in Bartlett, Tennessee.

On March 12, 2009, the Company invested $5.2 million in Tulsa Inspection Resources, Inc. ("TIR") consisting of $5.0 million in subordinated debt with warrants and $0.2 million in equity. Triangle served as lead investor in the $17.0 million financing of TIR. TIR is a leading independent provider of pipeline inspection services for the oil and gas industry.

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 $2.0 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.

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. 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.



                     TRIANGLE CAPITAL CORPORATION
                      Consolidated Balance Sheets

                                           March 31,     December 31,
                                             2009            2008
                                        ------------------------------
                                         (Unaudited)

 Assets
 Investments at fair value:
 Non-Control / Non-Affiliate
  investments (cost of
  $145,837,889 and $138,413,589
  at March 31, 2009 and
  December 31, 2008, respectively)      $ 140,399,949    $ 135,712,877
 Affiliate investments (cost of
  $30,683,269 and $30,484,491 at
  March 31, 2009 and December 31,
  2008, respectively)                      33,744,178       33,894,556
 Control investments (cost of
  $11,340,584 and $11,253,458 at
  March 31, 2009 and December 31,
  2008, respectively)                      12,066,784       12,497,858
                                        ------------------------------
 Total investments at fair value          186,210,911      182,105,291
 Cash and cash equivalents                 17,432,238       27,193,287
 Interest and fees receivable                 468,625          679,828
 Prepaid expenses and other
  current assets                              295,045           95,325
 Deferred financing fees                    3,454,749        3,545,410
 Property and equipment, net                   42,449           48,020
                                        ------------------------------
 Total assets                           $ 207,904,017    $ 213,667,161
                                        ==============================

 Liabilities
 Accounts payable and accrued
  liabilities                           $     809,372    $   1,608,909
 Interest payable                             512,333        1,881,761
 Dividends payable                          2,819,065        2,766,945
 Taxes payable                                     --           30,436
 Deferred income taxes                        844,507          843,947
 SBA guaranteed debentures
  payable                                 115,110,000      115,110,000
                                        ------------------------------
 Total liabilities                        120,095,277      122,241,998

 Net Assets
 Common stock, $0.001 par value
  per share (150,000,000 shares
  authorized, 7,047,663 and
  6,917,363 shares issued and
  outstanding as of March 31,
  2009 and December 31, 2008,
  respectively)                                 7,047            6,917
 Additional paid-in capital                87,972,856       87,836,786
 Investment income in excess of
   distributions                            2,320,044        2,115,157
 Accumulated realized gains on
  investments                                   4,129          356,495
 Net unrealized appreciation
  (depreciation) of investments            (2,495,336)       1,109,808
                                        ------------------------------
 Total net assets                          87,808,740       91,425,163
                                        ------------------------------

 Total liabilities and
  net assets                            $ 207,904,017    $ 213,667,161
                                        ==============================

 Net asset value per share              $       12.46    $       13.22
                                        ==============================


                        TRIANGLE CAPITAL CORPORATION
             Unaudited Consolidated Statements of Operations

                                         Three Months     Three Months
                                             Ended           Ended
                                           March 31,        March 31,
                                             2009             2008
                                         -----------------------------

 Investment income:
 Loan interest, fee and dividend
  income:
   Non-Control / Non-Affiliate
    investments                          $  4,191,620     $  1,921,769
   Affiliate investments                      931,836          748,766
   Control investments                        237,957          487,434
                                         -----------------------------
 Total loan interest, fee and
   dividend income                          5,361,413        3,157,969
 Paid-in-kind interest income:
   Non-Control / Non-Affiliate
    investments                               819,942          296,636
   Affiliate investments                      174,261          142,552
   Control investments                         81,123          129,395
                                         -----------------------------
 Total paid-in-kind interest
  income                                    1,075,326          568,583

 Interest income from cash and
  cash equivalent investments                  67,761          137,432
                                         -----------------------------
 Total investment income                    6,504,500        3,863,984
                                         -----------------------------

 Expenses:
   Interest expense                         1,656,991          561,815
   Amortization of deferred
    financing fees                             90,661           40,141
   General and administrative
    expenses                                1,719,266        1,348,333
                                         -----------------------------
 Total expenses                             3,466,918        1,950,289
                                         -----------------------------
 Net investment income                      3,037,582        1,913,695

 Net unrealized depreciation of
  investments                              (3,605,144)      (1,021,883)
                                         -----------------------------

 Total net loss on investments
  before income taxes                      (3,605,144)      (1,021,883)

 Income tax expense                            15,795          126,421
                                         -----------------------------
 Net increase (decrease) in net
  assets resulting from operations       $   (583,357)    $    765,391
                                         =============================

 Net investment income per share
  - basic and diluted                    $       0.43     $       0.28
                                         =============================
 Net increase (decrease) in net
  assets resulting from operations
  per share - basic and diluted          $      (0.08)    $       0.11
                                         =============================
 Dividends declared per common
  share                                  $       0.40     $         --
                                         =============================

 Distributions of capital gains
  declared per common share              $       0.05     $         --
                                         =============================
 Weighted average number of
  shares outstanding - basic and
  diluted                                   6,997,411        6,803,863
                                         =============================


                      TRIANGLE CAPITAL CORPORATION
            Unaudited Consolidated Statements of Cash Flows

                                        Three Months     Three Months
                                            Ended            Ended
                                           March 31,        March 31,
                                             2009             2008
                                          ----------------------------

 Cash flows from operating activities:
  Net increase (decrease) in net
   assets resulting from
   operations                              $ (583,357)      $  765,391
  Adjustments to reconcile net
   increase in net assets
   resulting from operations to
   net cash provided by (used in)
   operating activities:
    Purchases of portfolio
     investments                           (9,193,735)     (14,123,791)
    Repayments received/sales of
     portfolio investments                  2,246,284          475,404
    Loan origination and other
     fees received                            175,000          403,889
    Net unrealized depreciation
     of investments                         3,604,584        1,196,243
    Deferred income taxes                         560         (174,360)
    Paid-in-kind interest accrued,
     net of payments received                (648,221)        (541,434)
    Amortization of deferred
     financing fees                            90,661           40,141
    Recognition of loan
     origination and other fees              (184,906)        (200,670)
    Accretion of loan discounts              (104,626)         (24,420)
    Depreciation expense                        5,571            3,265
    Stock-based compensation                  136,200               --
    Changes in operating assets
      and liabilities:
     Interest and fees receivable             211,203          (98,925)
     Prepaid expenses                        (199,720)        (130,485)
     Accounts payable and accrued
      liabilities                            (799,537)        (500,589)
     Interest payable                      (1,369,428)        (512,736)
     Taxes payable                            (30,436)          42,982
                                          ----------------------------
 Net cash used in operating activities     (6,643,903)     (13,380,095)
                                          ----------------------------

 Cash flows from investing activities:
  Purchases of property and equipment              --           (2,015)
                                          ----------------------------
 Net cash used in investing
  activities                                       --           (2,015)
                                          ----------------------------

 Cash flows from financing
  activities:
  Borrowings under SBA guaranteed
   debentures payable                              --       10,040,000
  Financing fees paid                              --         (793,470)
  Cash dividends paid                      (2,764,780)      (2,041,159)
  Cash distributions paid                    (352,366)              --
                                          ----------------------------
 Net cash provided by (used in)
  financing activities                     (3,117,146)       7,205,371
                                          ----------------------------
 Net decrease in cash and cash
  equivalents                              (9,761,049)     (6,176,739)
 Cash and cash equivalents,
  beginning of period                      27,193,287      21,787,750
                                          ----------------------------
 Cash and cash equivalents, end
  of period                               $17,432,238      $15,611,011
                                          ============================

 Supplemental disclosure of cash
  flow information:
    Cash paid for interest                 $3,026,419       $1,074,552

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Triangle Capital Corporation

Triangle Capital Corporation
          Sheri B. Colquitt, Vice President, Investor Relations
            919-719-4784
            scolquitt@tcap.com
          Steven C. Lilly, Chief Financial Officer
            919-719-4789
            slilly@tcap.com

(C) Copyright 2009 GlobeNewswire, Inc. All rights reserved.

News Provided by COMTEX



Close window | Back to top