PhenixFIN Corporation Announces Fiscal Second Quarter 2024 Financial Results

NAV Per Share Grew 22% In Last 12 Months
Expanded Credit Facility To $62.5 Million

NEW YORK, May 10, 2024 (GLOBE NEWSWIRE) —  PhenixFIN Corporation (NASDAQ: PFX, PFXNZ) (the “Company”), a publicly traded business development company, today announced its financial results for the fiscal second quarter of 2024.

Highlights

  • Second quarter total investment income of $4.7 million; net investment income of $0.6 million
  • Net asset value (NAV) of $154.3 million, or $76.35 per share as of March 31, 2024
  • Weighted average yield was 13.6% on debt and other income producing investments
  • Repurchased 40,000 shares during the second fiscal quarter
  • On February 21, 2024, the Credit Facility was amended to increase the principal amount available to $62.5 million.
  • On May 9, 2024 the Board of Directors declared a special dividend of $1.31 per share. This dividend is payable on June 10, 2024 to stockholders of record as of May 27, 2024.

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

“We continue to be pleased with our progress in growing our NAV per share as various investments have generated favorable investment income and/or capital appreciation. We continue to pursue NAV per share growth over time. We are also excited for potential future investments that should provide additional growth opportunities.

In addition, we are pleased to announce a special dividend of $1.31 per share for 2023 spillover income.”  

Selected Second Quarter 2024 Financial Results for the Quarter Ended March 31, 2024:

Total investment income was $4.7 million which was attributable to portfolio interest and dividend income.

Total expenses were $4.1 million and total net investment income was $0.6 million.

The Company recorded total realized and unrealized gains of $4.8 million due to appreciation in various investments.

Portfolio and Investment Activities for the Quarter Ended March 31, 2024:

The fair value of the Company’s investment portfolio totaled $220.0 million and consisted of 41 portfolio companies.

Liquidity and Capital Resources

At March 31, 2024, the Company had $19.1 million in cash and cash equivalents, $57.5 million in aggregate principal amount of its 5.25% unsecured notes due 2028 and $28.4 million outstanding under the Credit Facility.

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, make additional acquisitions that provide additional growth opportunities, increase investment activity, grow the Company, increase net investment income, reduce operating expenses, implement its investment objective, source and capitalize on investment opportunities, grow its net asset value (NAV) and NAV per share 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 [email protected].


PHENIXFIN CORPORATION
Consolidated Statements of Assets and Liabilities


    March 31,
2024
(Unaudited)
    September 30,
2023
 
Assets:            
Investments at fair value            
Non-controlled, non-affiliated investments (amortized cost of $138,055,022 and $134,339,121 respectively)   $ 132,407,942     $ 125,531,031  
Affiliated investments (amortized cost of $20,564,242 and $48,233,910, respectively)     14,333,867       37,289,617  
Controlled investments (amortized cost of $90,793,284 and $82,437,692, respectively)     73,307,525       63,640,043  
Total Investments at fair value     220,049,334       226,460,691  
Cash and cash equivalents     19,123,796       5,988,223  
Receivables:                
Interest receivable     920,769       971,115  
Dividends receivable     243,302       161,479  
Other receivable           31,425  
Due from Affiliate     5,326,933       409,214  
Other assets     1,173,608       833,000  
Deferred financing costs     724,568       699,124  
Prepaid share repurchase     132,295       199,019  
Receivable for investments sold           3,940,175  
Total Assets   $ 247,694,605     $ 239,693,465  
                 
Liabilities:                
Credit facility and note payable (net of debt issuance costs of $1,522,586 and $1,688,835, respectively)   $ 84,419,355     $ 84,253,106  
Payable for investments purchased     5,036,284       4,123,059  
Accounts payable and accrued expenses     2,707,303       3,066,984  
Interest and fees payable     724,564       690,398  
Other liabilities     360,477       432,698  
Due to Affiliate     99,725        
Administrator expenses payable (see Note 6)     75,000        
Deferred revenue           421,685  
Total Liabilities     93,422,708       92,987,930  
                 
Commitments and Contingencies (see Note 8)                
                 
Net Assets:                
Common Shares, $0.001 par value; 5,000,000 shares authorized; 2,723,709 shares issued; 2,020,490 and 2,073,713 common shares outstanding, respectively     2,021       2,074  
Capital in excess of par value     692,472,513       694,812,239  
Total distributable earnings (loss)     (538,202,637 )     (548,108,778 )
Total Net Assets     154,271,897       146,705,535  
Total Liabilities and Net Assets   $ 247,694,605     $ 239,693,465  
                 
Net Asset Value Per Common Share   $ 76.35     $ 70.75  

PHENIXFIN CORPORATION
Consolidated Statements of Operations
(Unaudited)


    For the Three Months Ended
March 31,
    For the Six Months Ended
March 31,
 
    2024     2023     2024     2023  
                         
Interest Income:                        
Interest from investments                        
Non-controlled, non-affiliated investments:                        
Cash   $ 1,950,898     $ 2,116,741     $ 4,633,041     $ 4,032,782  
Payment in-kind     90,530       119,593       181,204       225,780  
Affiliated investments:                                
Cash     276,484       261,028       732,176       459,481  
Payment in-kind                        
Controlled investments:                                
Cash     294,028       57,188       580,266       251,815  
Payment in-kind     118,864       155,994       268,831       245,737  
Total interest income     2,730,804       2,710,544       6,395,518       5,215,595  
Dividend income     1,652,262       1,503,375       3,665,988       3,535,733  
Interest from cash and cash equivalents     199,266       125,471       240,374       217,697  
Fee income (see Note 9)     76,517       171,055       78,625       244,654  
Other income           401,986       22       401,986  
Total Investment Income     4,658,849       4,912,431       10,380,527       9,615,665  
                                 
Expenses:                                
Interest and financing expenses     1,567,352       1,381,596       3,109,413       2,614,772  
Salaries and benefits     1,524,508       802,090       2,949,500       1,659,623  
General and administrative expenses     310,776       201,181       635,837       421,158  
Professional fees, net     343,150       377,229       700,704       725,146  
Directors fees     187,500       176,500       375,000       370,500  
Insurance expenses     96,694       121,387       194,450       245,471  
Administrator expenses (see Note 6)     57,550       77,937       135,402       155,821  
Total expenses     4,087,530       3,137,920       8,100,306       6,192,491  
Net Investment Income     571,319       1,774,511       2,280,221       3,423,174  
                                 
Realized and unrealized gains (losses) on investments                                
Non-controlled, non-affiliated investments     200,754       (838,070 )     430,558       (824,622 )
Affiliated investments     (1,991,456 )           (1,991,456 )      
Controlled investments           23,273             23,273  
Total net realized gains (losses)     (1,790,702 )     (814,797 )     (1,560,898 )     (801,349 )
Net change in unrealized gains (losses):                                
Non-controlled, non-affiliated investments     1,796,767       803,513       3,161,010       2,326,612  
Affiliated investments     2,282,655       274,063       4,713,918       989,600  
Controlled investments     2,512,263       4,670,928       1,311,890       4,722,097  
Total net change in unrealized gains (losses)     6,591,685       5,748,504       9,186,818       8,038,309  
Total realized and unrealized gains (losses)     4,800,983       4,933,707       7,625,920       7,236,960  
                                 
Net Increase (Decrease) in Net Assets Resulting from Operations   $ 5,372,302     $ 6,708,218     $ 9,906,141     $ 10,660,134  
                                 
Weighted average basic and diluted earnings per common share   $ 2.62     $ 3.20     $ 4.81     $ 5.08  
Weighted average common shares outstanding – basic and diluted (see Note 11)     2,048,622       2,095,193       2,060,723       2,098,041  


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