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

Highlights

  • Fourth quarter total investment income of $5.7 million; net investment income of $1.9 million
  • Net asset value (NAV) of $146.7 million, or $70.75 per share as of September 30, 2023, vs. $57.49 per share as of September 30, 2022
  • Weighted average yield was 13.3% on debt and other income producing investments as of the fiscal year end
  • Repurchased 28,416 shares in Fiscal Year 2023

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

“We are pleased with our performance in 2023 as we grew NAV per share 23%, from $57.29 per share to $70.75 per share, along with NII per share growth of 110%, from $1.48 per share to $3.11 per share. We look to continue to execute on our investment strategy through credit, equity, and other bespoke investment opportunities.”

Selected Fourth Quarter 2023 Financial Results for the Quarter Ended September 30, 2023:

Total investment income was $5.7 million of which $5.6 million was attributable to portfolio interest and dividend income and $0.1 million was attributable to fee and other income.

Total net expenses were $3.8 million and total net investment income was $1.9 million.

The Company recorded a net realized loss of $9.4 million and net unrealized gain of $14.9 million.

Portfolio and Investment Activities for the Quarter Ended September 30, 2023:

The fair value of the Company's investment portfolio totaled $226.5 million and consisted of 42 portfolio companies.

The Company had 4 portfolio company investments on non-accrual status with a fair market value of $6.5 million.

Liquidity and Capital Resources

At September 30, 2023, the Company had $6.0 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, 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 CORPORATIONConsolidated Statements of Assets and Liabilities(Unaudited)
    September 30, 2023     September 30, 2022  
Assets:            
Investments at fair value            
Non-controlled, non-affiliated investments (amortized cost of $134,339,121 and $147,378,917, respectively)   $ 125,531,031     $ 122,616,275  
Affiliated investments (amortized cost of $48,223,910 and $30,585,884, respectively)     37,289,617       12,314,192  
Controlled investments (amortized cost of $82,437,692 and $85,483,093, respectively)     63,640,043       58,026,182  
Total Investments at fair value     226,460,691       192,956,649  
Cash and cash equivalents     5,988,223       22,768,066  
Receivables:                
Interest receivable     971,115       727,576  
Paydown receivable     -       112,500  
Dividends receivable     161,479       269,330  
Other receivable     31,425       36,992  
Other assets     833,000       1,192,677  
Deferred financing costs     699,124       50,000  
Due from affiliate     409,214       271,962  
Prepaid share repurchase     199,019       489,156  
Receivable for investments sold     3,940,175       -  
Total Assets   $ 239,693,465     $ 218,874,908  
                 
Liabilities:                
Credit facility and note payable (net of debt issuance costs of $1,688,835 and $2,059,164, respectively)   $ 84,253,106     $ 77,962,636  
Payable for investments purchased     4,123,059       16,550,000  
Accounts payable and accrued expenses     3,066,984       2,040,277  
Interest and fees payable     690,398       503,125  
Other liabilities     432,698       572,949  
Deferred revenue     421,685       325,602  
Administrator expenses payable (see Note 6)     -       74,911  
Total Liabilities     92,987,930       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; 2,073,713 and 2,102,129 common shares outstanding, respectively     2,074       2,102  
Capital in excess of par value     694,812,239       675,401,802  
Total distributable earnings (loss)     (548,108,778 )     (554,558,496 )
Total Net Assets     146,705,535       120,845,408  
Total Liabilities and Net Assets   $ 239,693,465     $ 218,874,908  
                 
Net Asset Value Per Common Share   $ 70.75     $ 57.49  
                 

PHENIXFIN CORPORATIONConsolidated Statements of Operations(Unaudited)
    For the Years Ended September 30,  
    2023     2022     2021  
                   
Interest Income:                        
Interest from investments                        
Non-controlled, non-affiliated investments:                        
Cash   $ 8,031,539     $ 5,207,850     $ 5,974,807  
Payment in-kind     506,555       444,741       609,964  
Affiliated investments:                        
Cash     1,925,293       639,733       1,099,809  
Payment in-kind     460,856       374,981       327,804  
Controlled investments:                        
Cash     667,312       2,489,381       75,000  
Payment in-kind     557,981       -       -  
Total interest income     12,149,536       9,156,686       8,087,384  
Dividend income     6,856,268       5,503,425       21,564,348  
Interest from cash and cash equivalents     400,031       139,942       10,402  
Fee income (see Note 9)     324,290       420,279       2,566,519  
Other income     402,138       323,828       78,204  
Total Investment Income     20,132,263       15,544,160       32,306,857  
                         
Expenses:                        
Base management fees (see Note 6)     -       -       1,146,403  
Interest and financing expenses     5,531,833       5,113,105       5,800,100  
Salaries and benefits     4,186,852       2,952,106       1,993,277  
Professional fees, net     1,404,676       1,340,828       559,975  
General and administrative expenses     983,274       1,103,125       1,012,147  
Directors fees     728,833       712,000       1,039,717  
Insurance expenses     466,319       590,178       1,619,536  
Administrator expenses (see Note 6)     320,310       301,281       612,983  
Total expenses     13,622,097       12,112,623       13,784,138  
Net Investment Income     6,510,166       3,431,537       18,522,719  
                         
Realized and unrealized gains (losses) on investments                        
Net realized gains (losses):                        
Non-controlled, non-affiliated investments     (10,538,228 )     810,240       7,747,672  
Affiliated investments     (1,018,267 )     4,408,961       (10,088,405 )
Controlled investments     23,456       1,850       (40,144,795 )
Total net realized gains (losses)     (11,533,039 )     5,221,051       (42,485,528 )
Net change in unrealized gains (losses):                        
Non-controlled, non-affiliated investments     15,954,552       (16,701,153 )     (5,022,484 )
Affiliated investments     7,327,399       96,490       (10,342,450 )
Controlled investments     8,659,262       2,141,326       40,728,006  
Total net change in unrealized gains (losses)     31,941,213       (14,463,337 )     25,363,072  
Loss on extinguishment of debt (see Note 5)     -       (296,197 )     (122,355 )
Total realized and unrealized gains (losses)     20,408,174       (9,538,483 )     (17,244,811 )
                         
Net Increase (Decrease) in Net Assets Resulting from Operations   $ 26,918,340     $ (6,106,946 )   $ 1,277,908  
                         
Weighted average basic and diluted earnings per common share   $ 12.87     $ (2.63 )   $ 0.48  
Weighted average common shares outstanding - basic and diluted (see Note 11)     2,092,326       2,323,601       2,677,891  
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