PhenixFIN Corporation Announces Fiscal Third Quarter 2024 Financial Results

Source: GlobeNewswire
PhenixFIN Corporation Announces Fiscal Third Quarter 2024 Financial Results

NAV Per Share Grew 14% In Last 12 Months (taking into account the distribution of the Special Dividend)
Expanded Credit Facility To $87.5 Million

NEW YORK, Aug. 06, 2024 (GLOBE NEWSWIRE) -- PhenixFIN Corporation (NASDAQ: PFX, PFXNZ) (the "Company"), a publicly traded business development company, today announced its financial results for the fiscal third quarter of 2024.

Highlights

  • Third quarter total investment income of $6.2 million; net investment income of $2.0 million
  • Net asset value (NAV) of $154.2 million, or $76.35 per share as of June 30, 2024, taking into account the distribution of the special dividend
  • Weighted average yield is 13.8% on debt and other income producing investments
  • On August 5, 2024, the Credit Facility was amended to increase the principal amount available to $87.5 million
  • On May 9, 2024 the Board of Directors declared a special dividend of $1.31 per share which was paid on June 10, 2024 to stockholders of record as of May 27, 2024

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

“We had a strong quarter with increased investment activity, continued strong credit fundamentals, and a robust weighted average yield for income producing investments. Our flexible capital solutions continue to provide opportunities for our portfolio companies while we diligently seek to grow our investment portfolio. This approach allows for a unique portfolio of investments which we believe is well-positioned to grow our NAV per share.”

Selected Third Quarter 2024 Financial Results for the Quarter Ended June 30, 2024:

Total investment income was $6.2 million which was attributable to portfolio interest and dividend income.

Total expenses were $4.2 million and total net investment income was $2.0 million.

The Company recorded total realized and unrealized gains of $0.5 million due to the sale of Kemmerer Holdings, LLC.

Portfolio and Investment Activities for the Quarter Ended June 30, 2024:

The fair value of the Company's investment portfolio totaled $233.7 million and consisted of 43 portfolio companies.

Liquidity and Capital Resources

At June 30, 2024, the Company had $8.9 million in cash and cash equivalents, $59.1 million in aggregate principal amount of its 5.25% unsecured notes due 2028 and $27.6 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
 
  
  June 30,
2024
(Unaudited)
  September 30,
2023
 
Assets:      
Investments at fair value      
Non-controlled, non-affiliated investments (amortized cost of $152,515,155 and $134,339,121 respectively) $148,691,260  $125,531,031 
Affiliated investments (amortized cost of $20,564,242 and $48,233,910, respectively)  14,407,827   37,289,617 
Controlled investments (amortized cost of $98,034,975 and $82,437,692, respectively)  70,582,278   63,640,043 
Total Investments at fair value  233,681,365   226,460,691 
Cash and cash equivalents  8,866,519   5,988,223 
Receivables:        
Interest receivable  1,715,284   971,115 
Dividends receivable  215,705   161,479 
Other receivable  205,984   31,425 
Deferred financing costs  649,042   699,124 
Due from Affiliate  451,178   409,214 
Other assets  410,565   833,000 
Prepaid share repurchase  101,115   199,019 
Receivable for investments sold  -   3,940,175 
Total Assets $246,296,757  $239,693,465 
         
Liabilities:        
Credit facility and notes payable (net of debt issuance costs of $1,439,916 and $1,688,835, respectively) $85,294,535  $84,253,106 
Payable for investments purchased  1,834,831   4,123,059 
Accounts payable and accrued expenses  3,789,402   3,066,984 
Interest and fees payable  520,057   690,398 
Other liabilities  327,045   432,698 
Administrator expenses payable (see Note 6)  143,936   - 
Due to Affiliate  183,548   - 
Deferred revenue  -   421,685 
Total Liabilities  92,093,354   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; 2,019,778 and 2,073,713 common shares outstanding, respectively  2,021   2,074 
Capital in excess of par value  692,441,333   694,812,239 
Total distributable earnings (loss)  (538,239,951)  (548,108,778)
Total Net Assets  154,203,403   146,705,535 
Total Liabilities and Net Assets $246,296,757  $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
June 30,
  For the Nine Months Ended
June 30,
 
  2024  2023  2024  2023 
Interest Income:            
Interest from investments            
Non-controlled, non-affiliated investments:            
Cash $2,971,965  $1,794,974  $7,605,006  $5,827,756 
Payment in-kind  231,113   110,477   412,317   336,257 
Affiliated investments:                
Cash  10,682   652,304   742,858   1,111,785 
Payment in-kind  -   -   -   - 
Controlled investments:                
Cash  650,244   30,610   1,230,510   282,425 
Payment in-kind  334,398   134,550   603,229   380,287 
Total interest income  4,198,402   2,722,915   10,593,920   7,938,510 
Dividend income                
Non-controlled, non-affiliated investments  531,151   1,216,137   1,963,744   2,824,666 
Affiliated investments  -   -   -   - 
Controlled investments  982,903   709,912   3,216,298   2,637,116 
Total dividend income  1,514,054   1,926,049   5,180,042   5,461,782 
Interest from cash and cash equivalents  147,127   95,356   387,501   313,053 
Fee income (see Note 9)  375,363   94,482   453,988   339,136 
Other income  -   -   22   401,986 
Total Investment Income  6,234,946   4,838,802   16,615,473   14,454,467 
                 
Expenses:                
Interest and financing expenses  1,721,767   1,415,102   4,831,180   4,029,874 
Salaries and benefits  1,514,872   1,277,797   4,464,372   2,937,420 
Professional fees, net  432,416   310,878   1,133,120   1,036,024 
General and administrative expenses  226,903   253,298   862,740   674,456 
Directors fees  187,500   170,833   562,500   541,333 
Insurance expenses  95,983   115,654   290,433   361,125 
Administrator expenses (see Note 6)  75,351   76,351   210,753   232,172 
Total expenses  4,254,792   3,619,913   12,355,098   9,812,404 
Net Investment Income  1,980,154   1,218,889   4,260,375   4,642,063 
                 
Realized and unrealized gains (losses) on investments                
Non-controlled, non-affiliated investments  155,419   (1,374,437)  585,977   (2,199,059)
Affiliated investments  -   30,211   (1,991,456)  30,211 
Controlled investments  8,542,831   858   8,542,831   24,131 
Total net realized gains (losses)  8,698,250   (1,343,368)  7,137,352   (2,144,717)
Net change in unrealized gains (losses):                
Non-controlled, non-affiliated investments  1,823,185   3,907,130   4,984,195   6,233,742 
Affiliated investments  73,960   2,322,910   4,787,878   3,312,510 
Controlled investments  (9,966,938)  2,811,099   (8,655,048)  7,533,196 
Total net change in unrealized gains (losses)  (8,069,793)  9,041,139   1,117,025   17,079,448 
Total realized and unrealized gains (losses)  628,457   7,697,771   8,254,377   14,934,731 
                 
Net Increase (Decrease) in Net Assets Resulting from Operations $2,608,611  $8,916,660  $12,514,752  $19,576,794 
                 
Weighted average basic and diluted earnings per common share $1.29  $4.26  $6.11  $9.34 
Weighted average common shares outstanding - basic and diluted (see Note 11)  2,019,786   2,090,691   2,047,127   2,095,591