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 | 2,202,115 | 2,683,093 | 2,372,849 | 2,707,794 | ||||||||||||
