NEW YORK, Aug. 09, 2022 (GLOBE NEWSWIRE) -- PhenixFIN Corporation (NASDAQ: 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
