PhenixFIN Corporation Announces Fiscal Second Quarter 2023 Financial Results

NEW YORK, May 11, 2023 (GLOBE NEWSWIRE) -- PhenixFIN Corporation (NASDAQ:PFX) (the "Company"), a publicly traded business development company, today announced its financial results for the fiscal second quarter of 2023.

Highlights

• Total investment income of $9.6 million and net investment income of $3.4 million for the six months ended March 31, 2023
• Net asset value (NAV) of $131.2 million, or $62.70 per share as of March 31, 2023
• Redeemed the $22.5 million 6.125% unsecured notes on January 17, 2023
• On February 8, 2023, the Board approved the expansion of the current repurchase program from $25 million to $35 million
• Weighted average yield of 11.8% on debt and other income producing investments
  
  

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

"During the quarter we grew NII per share and NAV per share in what was a difficult environment for the broader markets. In January, we successfully redeemed the 6.125% notes due in March 2023. We believe our strong capital structure and available liquidity well position us to continue our focus on sourcing attractive investment opportunities to drive shareholder value."

Selected Second Quarter 2023 Financial Results

For the three and six months ended March 31, 2023, total investment income was $4.9 million and $9.6 million, of which $4.2 million and $8.7 million, respectively, was attributable to portfolio interest and dividend income and $0.7 million and $0.9 million, respectively, was attributable to fee and other income.

For the three and six months ended March 31, 2023, total net expenses were $3.1 million and $6.2 million and total net investment income was $1.8 million and $3.4 million.

For the three and six months ended March 31, 2023, the Company recorded a net realized loss of $0.8 million and $0.8 million and net unrealized gain of $5.7 million and $8.0 million, due largely to market volatility in various investments.

Portfolio and Investment Activities

As of March 31, 2023, the fair value of the Company's investment portfolio totaled $200.1 million and consisted of 43 portfolio companies.

As of March 31, 2023, the Company had 6 portfolio company investments on non-accrual status with a fair market value of $9.6 million.

Liquidity and Capital Resources

At March 31, 2023, the Company had $10.7 million in cash and cash equivalents and $57.5 million and $23.2 million outstanding in aggregate principal amount of its 5.25% unsecured notes due 2028 and the Credit Facility, 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, source and 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

		March 31, 2023 (Unaudited)				September 30, 2022
Assets:
Investments at fair value
Non-controlled, non-affiliated investments (amortized cost of $150,946,951 and $147,378,917, respectively)		$	128,510,921			$	122,616,275
Affiliated investments (amortized cost of $27,328,814 and $30,585,884, respectively)			10,046,722				12,314,192
Controlled investments (amortized cost of $84,266,490 and $85,483,093, respectively)			61,531,676				58,026,182
Total Investments at fair value			200,089,319				192,956,649
Cash and cash equivalents			10,763,751				22,768,066
Receivables:
Interest receivable			725,649				727,576
Paydown receivable			-				112,500
Dividends receivable			269,330				269,330
Other receivable			-				36,992
Prepaid share repurchase			124,328				489,156
Deferred financing costs			848,312				50,000
Due from Affiliate			393,589				271,962
Other assets			718,489				1,192,677
Total Assets		$	213,932,767			$	218,874,908
Liabilities:
Credit facility and note payable (net of debt issuance costs of $1,864,836 and $2,059,164, respectively)		$	78,877,105			$	77,962,636
Investments purchased payable			1,026,818				-
Accounts payable and accrued expenses			1,366,493				2,040,277
Interest and fees payable			673,294				503,125
Other liabilities			500,761				572,949
Deferred revenue			335,507				325,602
Administrator expenses payable (see Note 6)			1,900				74,911
Due to broker			-				16,550,000
Total Liabilities			82,781,878				98,029,500
Commitments and Contingencies (see Note 8)
Net Assets:
Common Shares, $0.001 par value; 5,000,000 shares authorized; 2,723,709 shares issued; 2,091,638 and 2,102,129 common shares outstanding, respectively			2,092				2,102
Capital in excess of par value			675,047,159				675,401,802
Total distributable earnings (loss)			(543,898,362	)			(554,558,496	)
Total Net Assets			131,150,889				120,845,408
Total Liabilities and Net Assets		$	213,932,767			$	218,874,908
Net Asset Value Per Common Share		$	62.70			$	57.49

PHENIXFIN CORPORATION

Consolidated Statements of Operations

(Unaudited)

	For the Three Months Ended March 31,								For the Six Months Ended March 31,
	2023				2022				2023				2022
Interest Income:
Interest from investments
Non-controlled, non-affiliated investments:
Cash	$	2,116,741			$	1,264,327			$	4,032,782			$	2,280,019
Payment in-kind		119,593				100,062				225,780				238,573
Affiliated investments:
Cash		261,028				387,918				459,481				510,065
Payment in-kind		-				92,733				-				189,761
Controlled investments:
Cash		57,188				807,022				251,815				1,360,660
Payment in-kind		155,994				-				245,737				-
Total interest income		2,710,544				2,652,062				5,215,595				4,579,078
Dividend income		1,503,375				913,949				3,535,733				1,616,879
Interest from cash and cash equivalents		125,471				6,031				217,697				8,770
Fee income (see Note 9)		171,055				85,143				244,654				355,265
Other income		401,986				-				401,986				230,434
Total Investment Income		4,912,431				3,657,185				9,615,665				6,790,426
Expenses:
Interest and financing expenses		1,381,596				1,221,063				2,614,772				2,708,738
Salaries and benefits		802,090				430,293				1,659,623				936,168
Professional fees, net		377,229				160,594				725,146				467,345
General and administrative expenses		201,181				290,136				421,158				486,695
Directors fees		176,500				167,000				370,500				375,500
Insurance expenses		121,387				155,450				245,471				314,354
Administrator expenses (see Note 6)		77,937				82,415				155,821				151,281
Total expenses		3,137,920				2,506,951				6,192,491				5,440,081
Net Investment Income		1,774,511				1,150,234				3,423,174				1,350,345
Realized and unrealized gains (losses) on investments
Net realized gains (losses):
Non-controlled, non-affiliated investments		(838,070	)			453,916				(824,622	)			938,429
Affiliated investments		-				-				-				14,737,897
Controlled investments		23,273				-				23,273				925
Total net realized gains (losses)		(814,797	)			453,916				(801,349	)			15,677,251
Net change in unrealized gains (losses):
Non-controlled, non-affiliated investments		803,513				(2,139,279	)			2,326,612				(2,007,316	)
Affiliated investments		274,063				1,538,979				989,600				(8,934,864	)
Controlled investments		4,670,928				1,968,804				4,722,097				1,986,445
Total net change in unrealized gains (losses)		5,748,504				1,368,504				8,038,309				(8,955,735	)
Loss on extinguishment of debt (see Note 5)		-				-				-				(296,197	)
Total realized and unrealized gains (losses)		4,933,707				1,822,420				7,236,960				6,425,319
Net Increase (Decrease) in Net Assets Resulting from Operations	$	6,708,218			$	2,972,654			$	10,660,134			$	7,775,664
Weighted average basic and diluted earnings per common share	$	3.20			$	1.24			$	5.08			$	3.16
Weighted average basic and diluted net investment income (loss) per common share	$	0.85			$	0.48			$	1.63			$	0.55
Weighted average common shares outstanding - basic and diluted (see Note 11)		2,095,193				2,397,911				2,098,041				2,458,222