NEW YORK, Dec. 22, 2023 (GLOBE NEWSWIRE) -- 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 CORPORATION
Consolidated 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 CORPORATION
Consolidated 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 

Source: PhenixFIN Corporation

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