NAV Per Share Grew 14% In Last 12 Months (taking into account the distribution of the Special Dividend)
Expanded Credit Facility To $87.5 Million
NEW YORK, Aug. 06, 2024 (GLOBE NEWSWIRE) -- PhenixFIN Corporation (NASDAQ: PFX, PFXNZ) (the "Company"), a publicly traded business development company, today announced its financial results for the fiscal third quarter of 2024.
Highlights
- Third quarter total investment income of $6.2 million; net investment income of $2.0 million
- Net asset value (NAV) of $154.2 million, or $76.35 per share as of June 30, 2024, taking into account the distribution of the special dividend
- Weighted average yield is 13.8% on debt and other income producing investments
- On August 5, 2024, the Credit Facility was amended to increase the principal amount available to $87.5 million
- On May 9, 2024 the Board of Directors declared a special dividend of $1.31 per share which was paid on June 10, 2024 to stockholders of record as of May 27, 2024
David Lorber, Chief Executive Officer of the Company, stated:
"We had a strong quarter with increased investment activity, continued strong credit fundamentals, and a robust weighted average yield for income producing investments. Our flexible capital solutions continue to provide opportunities for our portfolio companies while we diligently seek to grow our investment portfolio. This approach allows for a unique portfolio of investments which we believe is well-positioned to grow our NAV per share."
Selected Third Quarter 2024 Financial Results for the Quarter Ended June 30, 2024:
Total investment income was $6.2 million which was attributable to portfolio interest and dividend income.
Total expenses were $4.2 million and total net investment income was $2.0 million.
The Company recorded total realized and unrealized gains of $0.5 million due to the sale of Kemmerer Holdings, LLC.
Portfolio and Investment Activities for the Quarter Ended June 30, 2024:
The fair value of the Company's investment portfolio totaled $233.7 million and consisted of 43 portfolio companies.
Liquidity and Capital Resources
At June 30, 2024, the Company had $8.9 million in cash and cash equivalents, $59.1 million in aggregate principal amount of its 5.25% unsecured notes due 2028 and $27.6 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, make additional acquisitions that provide additional growth opportunities, 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 (NAV) and NAV per share 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, 2024 (Unaudited) | September 30, 2023 | |||||||
| Assets: | ||||||||
| Investments at fair value | ||||||||
| Non-controlled, non-affiliated investments (amortized cost of $152,515,155 and $134,339,121 respectively) | $ | 148,691,260 | $ | 125,531,031 | ||||
| Affiliated investments (amortized cost of $20,564,242 and $48,233,910, respectively) | 14,407,827 | 37,289,617 | ||||||
| Controlled investments (amortized cost of $98,034,975 and $82,437,692, respectively) | 70,582,278 | 63,640,043 | ||||||
| Total Investments at fair value | 233,681,365 | 226,460,691 | ||||||
| Cash and cash equivalents | 8,866,519 | 5,988,223 | ||||||
| Receivables: | ||||||||
| Interest receivable | 1,715,284 | 971,115 | ||||||
| Dividends receivable | 215,705 | 161,479 | ||||||
| Other receivable | 205,984 | 31,425 | ||||||
| Deferred financing costs | 649,042 | 699,124 | ||||||
| Due from Affiliate | 451,178 | 409,214 | ||||||
| Other assets | 410,565 | 833,000 | ||||||
| Prepaid share repurchase | 101,115 | 199,019 | ||||||
| Receivable for investments sold | - | 3,940,175 | ||||||
| Total Assets | $ | 246,296,757 | $ | 239,693,465 | ||||
| Liabilities: | ||||||||
| Credit facility and notes payable (net of debt issuance costs of $1,439,916 and $1,688,835, respectively) | $ | 85,294,535 | $ | 84,253,106 | ||||
| Payable for investments purchased | 1,834,831 | 4,123,059 | ||||||
| Accounts payable and accrued expenses | 3,789,402 | 3,066,984 | ||||||
| Interest and fees payable | 520,057 | 690,398 | ||||||
| Other liabilities | 327,045 | 432,698 | ||||||
| Administrator expenses payable (see Note 6) | 143,936 | - | ||||||
| Due to Affiliate | 183,548 | - | ||||||
| Deferred revenue | - | 421,685 | ||||||
| Total Liabilities | 92,093,354 | 92,987,930 | ||||||
| Commitments and Contingencies (see Note 8) | ||||||||
| Net Assets: | ||||||||
| Common Shares, $0.001 par value; 5,000,000 shares authorized; 2,723,709 shares issued; 2,019,778 and 2,073,713 common shares outstanding, respectively | 2,021 | 2,074 | ||||||
| Capital in excess of par value | 692,441,333 | 694,812,239 | ||||||
| Total distributable earnings (loss) | (538,239,951 | ) | (548,108,778 | ) | ||||
| Total Net Assets | 154,203,403 | 146,705,535 | ||||||
| Total Liabilities and Net Assets | $ | 246,296,757 | $ | 239,693,465 | ||||
| Net Asset Value Per Common Share | $ | 76.35 | $ | 70.75 | ||||
| PHENIXFIN CORPORATION Consolidated Statements of Operations (Unaudited) | ||||||||||||||||
| For the Three Months Ended June 30, | For the Nine Months Ended June 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Interest Income: | ||||||||||||||||
| Interest from investments | ||||||||||||||||
| Non-controlled, non-affiliated investments: | ||||||||||||||||
| Cash | $ | 2,971,965 | $ | 1,794,974 | $ | 7,605,006 | $ | 5,827,756 | ||||||||
| Payment in-kind | 231,113 | 110,477 | 412,317 | 336,257 | ||||||||||||
| Affiliated investments: | ||||||||||||||||
| Cash | 10,682 | 652,304 | 742,858 | 1,111,785 | ||||||||||||
| Payment in-kind | - | - | - | - | ||||||||||||
| Controlled investments: | ||||||||||||||||
| Cash | 650,244 | 30,610 | 1,230,510 | 282,425 | ||||||||||||
| Payment in-kind | 334,398 | 134,550 | 603,229 | 380,287 | ||||||||||||
| Total interest income | 4,198,402 | 2,722,915 | 10,593,920 | 7,938,510 | ||||||||||||
| Dividend income | ||||||||||||||||
| Non-controlled, non-affiliated investments | 531,151 | 1,216,137 | 1,963,744 | 2,824,666 | ||||||||||||
| Affiliated investments | - | - | - | - | ||||||||||||
| Controlled investments | 982,903 | 709,912 | 3,216,298 | 2,637,116 | ||||||||||||
| Total dividend income | 1,514,054 | 1,926,049 | 5,180,042 | 5,461,782 | ||||||||||||
| Interest from cash and cash equivalents | 147,127 | 95,356 | 387,501 | 313,053 | ||||||||||||
| Fee income (see Note 9) | 375,363 | 94,482 | 453,988 | 339,136 | ||||||||||||
| Other income | - | - | 22 | 401,986 | ||||||||||||
| Total Investment Income | 6,234,946 | 4,838,802 | 16,615,473 | 14,454,467 | ||||||||||||
| Expenses: | ||||||||||||||||
| Interest and financing expenses | 1,721,767 | 1,415,102 | 4,831,180 | 4,029,874 | ||||||||||||
| Salaries and benefits | 1,514,872 | 1,277,797 | 4,464,372 | 2,937,420 | ||||||||||||
| Professional fees, net | 432,416 | 310,878 | 1,133,120 | 1,036,024 | ||||||||||||
| General and administrative expenses | 226,903 | 253,298 | 862,740 | 674,456 | ||||||||||||
| Directors fees | 187,500 | 170,833 | 562,500 | 541,333 | ||||||||||||
| Insurance expenses | 95,983 | 115,654 | 290,433 | 361,125 | ||||||||||||
| Administrator expenses (see Note 6) | 75,351 | 76,351 | 210,753 | 232,172 | ||||||||||||
| Total expenses | 4,254,792 | 3,619,913 | 12,355,098 | 9,812,404 | ||||||||||||
| Net Investment Income | 1,980,154 | 1,218,889 | 4,260,375 | 4,642,063 | ||||||||||||
| Realized and unrealized gains (losses) on investments | ||||||||||||||||
| Non-controlled, non-affiliated investments | 155,419 | (1,374,437 | ) | 585,977 | (2,199,059 | ) | ||||||||||
| Affiliated investments | - | 30,211 | (1,991,456 | ) | 30,211 | |||||||||||
| Controlled investments | 8,542,831 | 858 | 8,542,831 | 24,131 | ||||||||||||
| Total net realized gains (losses) | 8,698,250 | (1,343,368 | ) | 7,137,352 | (2,144,717 | ) | ||||||||||
| Net change in unrealized gains (losses): | ||||||||||||||||
| Non-controlled, non-affiliated investments | 1,823,185 | 3,907,130 | 4,984,195 | 6,233,742 | ||||||||||||
| Affiliated investments | 73,960 | 2,322,910 | 4,787,878 | 3,312,510 | ||||||||||||
| Controlled investments | (9,966,938 | ) | 2,811,099 | (8,655,048 | ) | 7,533,196 | ||||||||||
| Total net change in unrealized gains (losses) | (8,069,793 | ) | 9,041,139 | 1,117,025 | 17,079,448 | |||||||||||
| Total realized and unrealized gains (losses) | 628,457 | 7,697,771 | 8,254,377 | 14,934,731 | ||||||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 2,608,611 | $ | 8,916,660 | $ | 12,514,752 | $ | 19,576,794 | ||||||||
| Weighted average basic and diluted earnings per common share | $ | 1.29 | $ | 4.26 | $ | 6.11 | $ | 9.34 | ||||||||
| Weighted average common shares outstanding - basic and diluted (see Note 11) | 2,019,786 | 2,090,691 | 2,047,127 | 2,095,591 | ||||||||||||
