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 [email protected].

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