PhenixFIN Corporation Announces Fiscal Second Quarter 2024 Financial Results

Source: GlobeNewswire
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 info@phenixfc.com.




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