PhenixFIN Corporation (NASDAQ: PFX) (the "Company"), a publicly traded business development company, today announced its financial results for the fiscal third quarter of 2023.

Highlights

  • Total investment income of $14.5 million and net investment income of $4.6 million for the nine months ended June 30, 2023
  • Net asset value (NAV) of $140.0 million, or $67.01 per share as of June 30, 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 12.2% on debt and other income producing investments

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

“We reported another strong quarter driven by NII, strong performance from our equity investments, and increased investment activity all of which contributed to our increase in NAV/share. Our relationships and sourcing capabilities have us well positioned to capitalize on the growing demand for flexible capital and our bespoke solutions in the market.”

Selected Third Quarter 2023 Financial Results

For the three and nine months ended June 30, 2023, total investment income was $4.8 million and $14.5 million, of which $4.7 million and $13.8 million, respectively, was attributable to portfolio interest and dividend income and $0.1 million and $0.7 million, respectively, was attributable to fee and other income.

For the three and nine months ended June 30, 2023, total net expenses were $3.6 million and $9.8 million and total net investment income was $1.2 million and $4.6 million.

For the three and nine months ended June 30, 2023, the Company recorded a net realized loss of $1.3 million and $2.1 million and net unrealized gain of $9.0 million and $17.1 million, due largely to market volatility in various investments.

Portfolio and Investment Activities

As of June 30, 2023, the fair value of the Company's investment portfolio totaled $218.7 million and consisted of 46 portfolio companies.

As of June 30, 2023, the Company had 6 portfolio company investments on non-accrual status with a fair market value of $6.8 million.

Liquidity and Capital Resources

At June 30, 2023, the Company had $10.9 million in cash and cash equivalents and $57.5 million and $28.2 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 info@phenixfc.com.

PHENIXFIN CORPORATION
Consolidated Statements of Assets and Liabilities
 
    June 30,2023(Unaudited)     September 30, 2022  
Assets:            
Investments at fair value            
Non-controlled, non-affiliated investments (amortized cost of $142,762,992 and $147,378,917, respectively)   $ 124,234,092     $ 122,616,275  
Affiliated investments (amortized cost of $50,295,960 and $30,585,884, respectively)     35,336,778       12,314,192  
Controlled investments (amortized cost of $79,039,463 and $85,483,093, respectively)     59,115,748       58,026,182  
Total Investments at fair value     218,686,618       192,956,649  
Cash and cash equivalents     10,876,185       22,768,066  
Receivables:                
Interest receivable     865,458       727,576  
Paydown receivable     -       112,500  
Dividends receivable     220,636       269,330  
Other receivable     6,835       36,992  
Prepaid share repurchase     11,443       489,156  
Deferred financing costs     763,744       50,000  
Due from Affiliate     396,419       271,962  
Other assets     615,438       1,192,677  
Total Assets   $ 232,442,776     $ 218,874,908  
                 
Liabilities:                
Credit facility and note payable (net of debt issuance costs of $1,782,166 and $2,059,164, respectively)   $ 83,959,776     $ 77,962,636  
Investments purchased payable     5,118,912       -  
Accounts payable and accrued expenses     2,018,046       2,040,277  
Interest and fees payable     669,577       503,125  
Other liabilities     466,500       572,949  
Deferred revenue     255,301       325,602  
Administrator expenses payable (see Note 6)     -       74,911  
Due to broker     -       16,550,000  
Total Liabilities     92,488,112       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; 2,088,589 and 2,102,129 common shares outstanding, respectively     2,089       2,102  
Capital in excess of par value     674,934,277       675,401,802  
Total distributable earnings (loss)     (534,981,702 )     (554,558,496 )
Total Net Assets     139,954,664       120,845,408  
Total Liabilities and Net Assets   $ 232,442,776     $ 218,874,908  
                 
Net Asset Value Per Common Share   $ 67.01     $ 57.49  

PHENIXFIN CORPORATION
Consolidated Statements of Operations
(Unaudited)
 
    For the Three Months Ended June 30,     For the Nine Months EndedJune 30,  
    2023     2022     2023     2022  
                         
Interest Income:                        
Interest from investments                        
Non-controlled, non-affiliated investments:                        
Cash   $ 1,794,974     $ 1,468,171     $ 5,827,756     $ 3,748,190  
Payment in-kind     110,477       102,063       336,257       340,636  
Affiliated investments:                                
Cash     652,304       (23,496 )     1,111,785       486,569  
Payment in-kind     -       93,275       -       283,036  
Controlled investments:                                
Cash     30,610       4,375       282,425       1,365,035  
Payment in-kind     134,550       -       380,287       -  
Total interest income     2,722,915       1,644,388       7,938,510       6,223,466  
Dividend income     1,926,049       1,846,507       5,461,782       3,463,386  
Interest from cash and cash equivalents     95,356       9,255       313,053       18,025  
Fee income (see Note 9)     94,482       65,014       339,136       420,279  
Other income     -       93,394       401,986       323,828  
Total Investment Income     4,838,802       3,658,558       14,454,467       10,448,984  
                                 
Expenses:                                
Interest and financing expenses     1,415,102       1,201,623       4,029,874       3,910,361  
Salaries and benefits     1,277,797       1,037,602       2,937,420       1,973,770  
Professional fees, net     310,878       469,550       1,036,024       936,895  
General and administrative expenses     253,298       362,989       674,456       849,684  
Directors fees     170,833       164,500       541,333       540,000  
Insurance expenses     115,654       155,449       361,125       469,803  
Administrator expenses (see Note 6)     76,351       58,881       232,172       210,162  
Total expenses     3,619,913       3,450,594       9,812,404       8,890,675  
Net Investment Income     1,218,889       207,964       4,642,063       1,558,309  
                                 
Realized and unrealized gains (losses) on investments                                
Net realized gains (losses):                                
Non-controlled, non-affiliated investments     (1,374,437 )     (188,638 )     (2,199,059 )     749,791  
Affiliated investments     30,211       -       30,211       14,737,897  
Controlled investments     858       925       24,131       1,850  
Total net realized gains (losses)     (1,343,368 )     (187,713 )     (2,144,717 )     15,489,538  
Net change in unrealized gains (losses):                                
Non-controlled, non-affiliated investments     3,907,130       (9,623,302 )     6,233,742       (11,630,618 )
Affiliated investments     2,322,910       405,381       3,312,510       (8,529,483 )
Controlled investments     2,811,099       (31,533 )     7,533,196       1,954,912  
Total net change in unrealized gains (losses)     9,041,139       (9,249,454 )     17,079,448       (18,205,189 )
Loss on extinguishment of debt (see Note 5)     -       -       -       (296,197 )
Total realized and unrealized gains (losses)     7,697,771       (9,437,167 )     14,934,731       (3,011,848 )
                                 
Net Increase (Decrease) in Net Assets Resulting from Operations   $ 8,916,660     $ (9,229,203 )   $ 19,576,794     $ (1,453,539 )
                                 
Weighted average basic and diluted earnings per common share   $ 4.26     $ (4.19 )   $ 9.34     $ (0.61 )
Weighted average common shares outstanding - basic and diluted (see Note 11)     2,090,691       2,202,115       2,095,591       2,372,849  
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