PhenixFIN Corporation Announces Fiscal Third Quarter 2022 Financial Results

NEW YORK, Aug. 09, 2022 (GLOBE NEWSWIRE) -- PhenixFIN Corporation PFX (the "Company"), a publicly traded business development company, today announced its financial results for the fiscal third quarter of 2022.

Highlights

  • During the third quarter total investment income of $3.7 million; net investment income of $0.2 million
  • Net asset value (NAV) of $129.1 million, or $58.74 per share as of June 30, 2022, vs. $57.08 per share as of September 30, 2021
  • Weighted average yield to maturity of 9.09% on debt investments
  • FlexFIN continues to grow with over $40 million allocated to the business

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

"During the third quarter the portfolio performed relatively well given the market environment as we continued generating positive Net Investment Income. While during the quarter the portfolio was impacted by increasing broader market volatility, global instability, inflation and rising interest rates, we remain confident in the underlying investments. With a strong balance sheet and low leverage, we believe we continue to position the Company to grow NII through successful capital deployment while remaining prudent and judicious in terms of these new investments. FlexFIN continued to grow with over $40 million allocated to the unique business at quarter end generating a meaningful cash flow stream for the Company."

Since our internalization on January 1, 2021, we generated proceeds from the monetization of positions totaling $142.0 million and deployed $175.9 million across new and add on investments. In addition, we continue to execute on our share repurchase program.

Selected Third Quarter 2022 Financial Results

For the quarter ended June 30, 2022, total investment income totaled $3.7 million, of which $3.5 million was attributable to portfolio interest and dividend income and $0.2 million was attributable to fee and other income.

For the quarter ended June 30, 2022, total net expenses were $3.5 million and total net investment income was $0.2 million.

For the quarter ended June 30, 2022, the Company recorded a net realized loss of $0.2 million and net unrealized depreciation of $9.2 million largely due to market volatility in various investments.

Portfolio and Investment Activities

As of June 30, 2022, the fair value of the Company's investment portfolio totaled $182.8 million and consisted of 45 portfolio companies.

As of June 30, 2022, the Company had 6 portfolio company investments on non-accrual status with a fair market value of $12.4 million.

Liquidity and Capital Resources

At June 30, 2022, the Company had $24.4 million in cash 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 net investment income, reduce operating expenses for a sustainable period of time, implement its investment objective, capitalize on investment opportunities, grow its net asset value and perform well and operate effectively under an internalized management structure, FlexFIN's ability to perform effectively and generate attractive returns 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,
2022
(Unaudited)
  September 30,
2021
 
Assets:      
Investments at fair value      
Non-controlled, non-affiliated investments (amortized cost of $135,629,418 and $92,214,167, respectively) $115,937,311  $84,152,678 
Affiliated investments (amortized cost of $44,288,170 and $75,963,427, respectively)  17,390,505   57,595,245 
Controlled investments (amortized cost of $77,098,614 and $39,490,097, respectively)  49,455,289   9,891,860 
Total Investments at fair value  182,783,105   151,639,783 
Cash and cash equivalents  24,382,766   69,433,256 
Receivables:        
Fees receivable  -   1,872,700 
Interest receivable  1,262,193   371,576 
Paydown receivable  168,866   292,015 
Due from Affiliate  132,763   - 
Dividends receivable  269,330   81,211 
Prepaid share repurchases  96,096   - 
Other assets  866,821   1,401,746 
Total Assets $209,961,940  $225,092,287 
         
Liabilities:        
Notes payable (net of debt issuance costs of $2,162,356 and $412,795, respectively) $77,859,444  $77,434,005 
Interest and fees payable  503,125   - 
Due to affiliates  -   280,323 
Due to broker  -   1,586,000 
Administrator expenses payable  67,028   67,920 
Distributions payable  265,798   - 
Accounts payable and accrued expenses  1,299,858   1,416,524 
Deferred revenue  279,032   - 
Other liabilities  606,675   613,534 
Total Liabilities  80,880,960   81,398,306 
         
Commitments and Contingencies        
         
Net Assets:        
Common Shares, $0.001 par value; 5,000,000 shares authorized; 2,723,709 shares issued; 2,197,418 and 2,517,221 common shares outstanding, respectively  2,198   2,517 
Capital in excess of par value  675,707,499   688,866,642 
Total distributable earnings (loss)  (546,628,717)  (545,175,178)
Total Net Assets $129,080,980  $143,693,981 
Total Liabilities and Net Assets $209,961,940  $225,092,287 
         
Net Asset Value Per Common Share $58.74  $57.08 


PHENIXFIN CORPORATION
Consolidated Statements of Operations
(Unaudited)

  For the Three Months
Ended June 30
  For the Nine Months
Ended June 30
 
  2022  2021  2022  2021 
Interest Income:                
Interest from investments                
Non-controlled, non-affiliated investments:                
Cash $1,468,171  $1,578,657  $3,748,190  $4,785,374 
Payment in-kind  102,063   186,733   340,636   356,762 
Affiliated investments:                
Cash  (23,496)  249,157   486,569   797,776 
Payment in-kind  93,275   286,444   283,036   286,444 
Controlled investments:                
Cash  4,375   -   1,365,035   - 
Total interest income  1,644,388   2,300,991   6,223,466   6,226,356 
Dividend income  1,846,507   6,307,408   3,463,386   20,979,143 
Interest from cash and cash equivalents  9,255   3,862   18,025   5,308 
Fee income  65,014   71,443   420,279   650,323 
Other income  93,394   -   323,828   78,204 
Total Investment Income  3,658,558   8,683,704   10,448,984   27,939,334 
                 
Expenses:                
Base management fees  -   -   -   1,146,403 
Interest and financing expenses  1,201,623   1,260,825   3,910,361   4,538,520 
General and administrative expenses  362,989   294,022   849,684   856,396 
Salaries and benefits  1,037,602   679,229   1,973,770   1,011,546 
Administrator expenses  58,881   106,578   210,162   546,372 
Insurance expenses  155,449   444,832   469,803   1,404,312 
Directors fees  164,500   179,000   540,000   875,217 
Professional fees, net  469,550   289,200   936,895   113,797 
Total expenses  3,450,594   3,253,686   8,890,675   10,492,563 
Net Investment Income  207,964   5,430,018   1,558,309   17,446,771 
                 
Realized and unrealized gains (losses) on investments                
Net realized gains (losses):                
Non-controlled, non-affiliated investments  (188,638)  38,852   749,791   4,093,500 
Affiliated investments  -   19,811   14,737,897   (10,433,117)
Controlled investments  925   1,850   1,850   (40,145,720)
Total net realized gains (losses)  (187,713)  60,513   15,489,538   (46,485,337)
Net change in unrealized gains (losses):                
Non-controlled, non-affiliated investments  (9,623,302)  (1,794,173)  (11,630,618)  (773,501)
Affiliated investments  405,381   1,513,353   (8,529,483)  (2,072,831)
Controlled investments  (31,533)  1,759,025   1,954,912   40,325,544 
Total net change in unrealized gains (losses)  (9,249,454)  1,478,205   (18,205,189)  37,479,212 
Loss on extinguishment of debt  -   -   (296,197)  (122,355)
Total realized and unrealized gains (losses)  (9,437,167)  1,538,718   (3,011,848)  (9,128,480)
                 
Net Increase (Decrease) in Net Assets Resulting from Operations $(9,229,203) $6,968,736  $(1,453,539) $8,318,291 
                 
Weighted Average Basic and Diluted Earnings Per Common Share $(4.19) $2.60  $(0.61) $3.07 
Weighted Average Basic and Diluted Net Investment Income (Loss) Per Common Share $0.09  $2.02  $0.66  $6.44 
Weighted Average Common Shares Outstanding - Basic and Diluted  2,202,115   2,683,093   2,372,849   2,707,794 

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