PhenixFIN Corporation Announces Fiscal First Quarter 2023 Financial Results

NEW YORK, Feb. 09, 2023 (GLOBE NEWSWIRE) -- PhenixFIN Corporation (NASDAQ: PFX) (the "Company"), a publicly traded business development company, today announced its financial results for the fiscal first quarter of 2023.

Highlights

  • First quarter total investment income was $4.7 million; net investment income of $1.7 million
  • Net asset value (NAV) of $124.7 million, or $59.38 per share as of December 31, 2022
  • Secured a 3-year $50 million credit facility with Woodforest National Bank as lead arranger (SOFR + 2.90%)
  • Weighted average yield of 11.3% on debt and other income producing investments

Subsequent Events:

  • On January 17, 2023, redeemed the $22.5 million 6.125% unsecured notes due March 30, 2023
  • On February 8, 2023, the Board approved the expansion of the current repurchase program from $25 million to $35 million. Since announcing the plan on January 11, 2021 through February 7, 2023, the Company has repurchased 627,137 shares at an aggregate price of $24.9 million.

David Lorber, Chief Executive Officer of the Company, stated:

“While the capital markets remain volatile, they also present attractive investment opportunities for generating shareholder value. For the quarter the portfolio performed well with strong income generation coupled with NAV/share growth. In addition, we are pleased to announce a $10 million increase in the share repurchase program. Since the program’s inception we have repurchased 23% of our shares outstanding.”

Selected First Quarter 2023 Financial Results

For the quarter ended December 31, 2022, total investment income was $4.7 million, of which $4.6 million was attributable to portfolio interest and dividend income and $0.1 million was attributable to fee and other income.

For the quarter ended December 31, 2022, total net expenses were $3.1 million and total net investment income was $1.6 million.

For the quarter ended December 31, 2022, the Company recorded a net realized gain of $13k and net unrealized gain of $2.3 million, due largely to market volatility in various investments.

Portfolio and Investment Activities

As of December 31, 2022, the fair value of the Company's investment portfolio totaled $183.3 million and consisted of 43 portfolio companies.

As of December 31, 2022, the Company had 5 portfolio company investments on non-accrual status with a fair market value of $5.4 million.

Liquidity and Capital Resources

At December 31, 2022, the Company had $17.6 million in cash and cash equivalents and $57.5 million and $22.5 million outstanding in aggregate principal amount of its 5.25% unsecured notes due 2028 and 6.125% unsecured notes due 2023, respectively.

ABOUT PHENIXFIN CORPORATION

PhenixFIN Corporation is a non-diversified, internally managed closed-end management investment company incorporated in Delaware that has elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. We completed our initial public offering and commenced operations on January 20, 2011. The Company has elected, and intends to qualify annually, to be treated, for U.S. federal income tax purposes, as a regulated investment company under Subchapter M of the Internal Revenue Code of 1986, as amended. Effective January 1, 2021, the Company operates under an internalized management structure.

SAFE HARBOR STATEMENT AND OTHER DISCLOSURES

This press release contains “forward-looking” statements. Such forward-looking statements reflect current views with respect to future events and financial performance, and the Company may make related oral forward-looking statements on or following the date hereof. These forward-looking statements are subject to the inherent uncertainties in predicting future results and conditions. Certain factors could cause actual results and conditions to differ materially from those projected in these forward-looking statements, including among other things, PhenixFIN’s ability to deliver value to shareholders, increase investment activity, grow the Company, increase net investment income, reduce operating expenses, implement its investment objective, capitalize on investment opportunities, grow its net asset value and perform well in the prevailing market environment, the ability of our portfolio companies to perform well and generate income and other factors that are enumerated in the Company’s periodic filings with the Securities and Exchange Commission. PhenixFIN Corporation disclaims and does not undertake any obligation to update or revise any forward-looking statement in this press release.

Past performance is not a guarantee of future results. The press release contains unaudited financial results. For ease of review, we have excluded the word "approximately" when rounding the results. This press release is for informational purposes only and is not an offer to purchase or a solicitation of an offer to sell shares of PhenixFIN Corporation’s common stock. There can be no assurance that PhenixFIN Corporation will achieve its investment objective. 

For PhenixFIN investor relations, please call 212-859-0390. For media inquiries, please contact info@phenixfc.com.


PHENIXFIN CORPORATION
Consolidated Statements of Assets and Liabilities

  December 31,
2022
(Unaudited)
  September 30,
2022
 
Assets:      
Investments at fair value      
Non-controlled, non-affiliated investments (amortized cost of $146,467,213 and $147,378,917, respectively) $123,227,670   $122,616,275 
Affiliated investments (amortized cost of $29,987,947 and $30,585,884, respectively)  12,431,792    12,314,192 
Controlled investments (amortized cost of $75,017,459 and $85,483,093, respectively)  47,611,717    58,026,182 
Total Investments at fair value  183,271,179    192,956,649 
Cash and cash equivalents  17,654,080    22,768,066 
Receivables:        
Interest receivable  1,712,890    727,576 
Paydown receivable  400,308    112,500 
Dividends receivable  269,330    269,330 
Other receivable  -    36,992 
Prepaid share repurchase  384,637    489,156 
Deferred financing costs  332,092    50,000 
Due from Affiliate  301,020    271,962 
Other assets  1,054,413    1,192,677 
Total Assets $205,379,949   $218,874,908 
         
Liabilities:        
Notes payable (net of debt issuance costs of $1,955,972 and $2,059,164, respectively) $78,065,828   $77,962,636 
Accounts payable and accrued expenses  1,042,136    2,040,277 
Other liabilities  535,267    572,949 
Interest and fees payable  503,125    503,125 
Deferred revenue  472,521    325,602 
Administrator expenses payable  68,267    74,911 
Due to broker  -    16,550,000 
Total Liabilities  80,687,144    98,029,500 
         
Commitments and Contingencies        
         
Net Assets:        
Common Shares, $0.001 par value; 5,000,000 shares authorized; 2,723,709 shares issued; 2,099,824 and 2,102,129 common shares outstanding, respectively  2,100    2,102 
Capital in excess of par value  675,297,285    675,401,802 
Total distributable earnings (loss)  (550,606,580)   (554,558,496)
Total Net Assets  124,692,805    120,845,408 
Total Liabilities and Net Assets $205,379,949   $218,874,908 
         
Net Asset Value Per Common Share $59.38   $57.49 
          
          

PHENIXFIN CORPORATION
Consolidated Statements of Operations
(Unaudited)

  For the Three Months Ended
December 31,
 
  2022  2021 
       
Interest Income:      
Interest from investments      
Non-controlled, non-affiliated investments:      
Cash $1,916,041  $1,015,692 
Payment in-kind  106,187   138,511 
Affiliated investments:        
Cash  198,453   122,147 
Payment in-kind  89,743   97,028 
Controlled investments:        
Cash  194,627   553,638 
Total interest income  2,505,051   1,927,016 
Dividend income  2,032,358   702,930 
Interest from cash and cash equivalents  92,226   2,739 
Fee income  73,599   270,122 
Other income  -   230,434 
Total Investment Income  4,703,234   3,133,241 
         
Expenses:        
Interest and financing expenses  1,233,176   1,487,675 
Salaries and benefits  857,533   505,875 
Professional fees, net  347,917   306,751 
General and administrative expenses  219,977   196,559 
Directors fees  194,000   208,500 
Insurance expenses  124,084   158,904 
Administrator expenses  77,884   68,866 
Total expenses  3,054,571   2,933,130 
Net Investment Income  1,648,663   200,111 
         
Realized and unrealized gains (losses) on investments        
Net realized gains (losses):        
Non-controlled, non-affiliated investments  13,448   484,513 
Affiliated investments  -   14,737,897 
Controlled investments  -   925 
Total net realized gains (losses)  13,448   15,223,335 
Net change in unrealized gains (losses):        
Non-controlled, non-affiliated investments  1,523,099   131,963 
Affiliated investments  715,537   (10,473,843)
Controlled investments  51,169   17,641 
Total net change in unrealized gains (losses)  2,289,805   (10,324,239)
Loss on extinguishment of debt  -   (296,197)
Total realized and unrealized gains (losses)  2,303,253   4,602,899 
         
Net Increase (Decrease) in Net Assets Resulting from Operations $3,951,916  $4,803,010 
         
Weighted average basic and diluted earnings per common share $1.88  $1.91 
Weighted average basic and diluted net investment income (loss) per common share $0.78  $0.08 
Weighted average common shares outstanding - basic and diluted  2,100,876   2,517,221 



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