NEW YORK, Dec. 16, 2022 (GLOBE NEWSWIRE) -- PhenixFIN Corporation (NASDAQ: PFX) (the "Company"), a publicly traded business development company, today announced its financial results for the fiscal fourth quarter of 2022.
Highlights
Fourth quarter total investment income was $5.1 million; net investment income of $1.9 million
Net asset value (NAV) of $120.8 million, or $57.49 per share as of September 30, 2022, vs. $57.08 per share as of September 30, 2021
Secured a 3-year $50 million credit facility with Woodforest National Bank as lead lender (SOFR + 2.90%)
Notice of Redemption issued for the $22.5 million 6.125% unsecured notes due March 30, 2023
Repurchased 16.5% of shares outstanding in Fiscal Year 2022
Weighted average yield to maturity of 10.85% on yield-oriented investments
FlexFIN continues to grow with over $40 million allocated to the business
David Lorber, Chief Executive Officer of the Company, stated:
“We are pleased to announce the signing of a $50mm credit facility led by Woodforest National Bank which we believe further strengthens our balance sheet. With this increased liquidity we will be redeeming the $22.5 million 6.125% unsecured notes due March 30, 2023. This facility should also allow us to expand our investment activity to continue to grow. During the fourth quarter, the portfolio continued to perform given the market environment as we continued generating positive Net Investment Income driven by the deployment of cash balances, the rising interest rate environment, and the general stability in our portfolio. In addition, during our FY2022 we successfully took advantage of our trading discount to NAV through buying back 16.5% of our shares outstanding. Given the volatility of 2022, as we look forward, we are excited about opportunities in the markets to generate returns through both attractive yields and capital appreciation.”
The Company expects to hold an investor update call in early 2023. Details will be announced at a later date.
Selected Fourth Quarter 2022 Financial Results
For the quarter ended September 30, 2022, total investment income totaled $5.1 million, of which $5.0 million was attributable to portfolio interest and dividend income and $0.1 million was attributable to other income.
For the quarter ended September 30, 2022, total net expenses were $3.2 million and total net investment income was $1.9 million.
For the quarter ended September 30, 2022, the Company recorded a net realized loss of $10.3 million, due to the sale of Path Medical, a legacy investment, and net unrealized loss of $3.7 million, due largely to market volatility in various investments.
Portfolio and Investment Activities
As of September 30, 2022, the fair value of the Company's investment portfolio totaled $193.0 million and consisted of 44 portfolio companies.
As of September 30, 2022, the Company had 5 portfolio company investments on non-accrual status with a fair market value of $5.2 million.
Liquidity and Capital Resources
At September 30, 2022, the Company had $22.8 million in cash and cash equivalents 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 investment activity, grow the Company, increase net investment income, reduce operating expenses, implement its investment objective, capitalize on investment opportunities, grow its net asset value and perform well in the prevailing market environment, 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
September 30, 2022
September 30, 2021
Assets:
Investments at fair value
Non-controlled, non-affiliated investments (amortized cost of $147,378,917 and $92,214,167, respectively)
$
122,616,275
$
84,152,678
Affiliated investments (amortized cost of $30,585,884 and $75,963,427, respectively)
12,314,192
57,595,245
Controlled investments (amortized cost of $85,483,093 and $39,490,097, respectively)
58,026,182
9,891,860
Total Investments at fair value
192,956,649
151,639,783
Cash and cash equivalents
22,768,066
69,433,256
Receivables:
Fees receivable
-
1,872,700
Interest receivable
727,576
371,576
Prepaid share repurchase
489,156
-
Due from affiliates
271,962
-
Dividends receivable
269,330
81,211
Paydown receivable
112,500
292,015
Other receivable
36,992
-
Other assets
1,242,677
1,401,746
Total Assets
$
218,874,908
$
225,092,287
Liabilities:
Notes payable (net of debt issuance costs of $2,059,164 and $412,795, respectively)
$
77,962,636
$
77,434,005
Due to broker
16,550,000
1,586,000
Accounts payable and accrued expenses
2,040,277
1,416,524
Due to affiliate
-
280,323
Administrator expenses payable
74,911
67,920
Interest and fees payable
503,125
-
Deferred revenue
325,602
-
Other liabilities
572,949
613,534
Total Liabilities
98,029,500
81,398,306
Commitments and Contingencies
Net Assets:
Common Shares, $0.001 par value; 5,000,000 shares authorized; 2,723,709 shares issued; 2,102,129 and 2,517,221 common shares outstanding, respectively
2,102
2,517
Capital in excess of par value
675,401,802
688,866,642
Total distributable earnings (loss)
(554,558,496
)
(545,175,178
)
Total Net Assets
120,845,408
143,693,981
Total Liabilities and Net Assets
$
218,874,908
$
225,092,287
Net Asset Value Per Common Share
$
57.49
$
57.08
PHENIXFIN CORPORATION Consolidated Statements of Operations
For the Years Ended September 30
2022
2021
2020
Interest Income:
Interest from investments
Non-controlled, non-affiliated investments:
Cash
$
5,207,850
$
5,974,807
$
9,137,394
Payment in-kind
444,741
609,964
863,744
Affiliated investments:
Cash
639,733
1,099,809
1,182,294
Payment in-kind
374,981
327,804
2,425,557
Controlled investments:
Cash
2,489,381
75,000
84,505
Payment in-kind
-
-
500,767
Total interest income
9,156,686
8,087,384
14,194,261
Dividend income
5,503,425
21,564,348
6,256,250
Interest from cash and cash equivalents
139,942
10,402
378,077
Fee income
420,279
2,566,519
692,988
Other income
323,828
78,204
-
Total Investment Income
15,544,160
32,306,857
21,521,576
Expenses:
Base management fees
-
1,146,403
6,358,750
Interest and financing expenses
5,113,105
5,800,100
14,935,017
Salaries and benefits
2,952,106
1,993,277
-
General and administrative expenses
1,103,125
1,012,147
3,285,259
Directors fees
712,000
1,039,717
1,451,077
Insurance expenses
590,178
1,619,536
1,463,391
Administrator expenses
301,281
612,983
2,226,831
Professional fees, net
1,340,828
559,975
(4,768,050
)
Expenses before expense support reimbursement
12,112,623
13,784,138
24,952,275
Expense support reimbursement
-
-
(710,294
)
Total expenses net of expense support reimbursement
12,112,623
13,784,138
24,241,981
Net Investment Income (Loss)
3,431,537
18,522,719
(2,720,405
)
Realized and unrealized gains (losses) on investments
Net realized gains (losses):
Non-controlled, non-affiliated investments
810,240
7,747,672
(9,973,416
)
Affiliated investments
4,408,961
(10,088,405
)
(928,990
)
Controlled investments
1,850
(40,144,795
)
(39,076,425
)
Total net realized gains (losses)
5,221,051
(42,485,528
)
(49,978,831
)
Net change in unrealized gains (losses):
Non-controlled, non-affiliated investments
(16,701,153
)
(5,022,484
)
9,898,237
Affiliated investments
96,490
(10,342,450
)
2,648,353
Controlled investments
2,141,326
40,728,006
(23,178,993
)
Total net change in unrealized gains (losses)
(14,463,337
)
25,363,072
(10,632,403
)
Loss on extinguishment of debt
(296,197
)
(122,355
)
(2,481,374
)
Total realized and unrealized gains (losses)
(9,538,483
)
(17,244,811
)
(63,092,608
)
Net Increase (Decrease) in Net Assets Resulting from Operations
$
(6,106,946
)
$
1,277,908
$
(65,813,013
)
Weighted average basic and diluted earnings per common share
$
(2.63
)
$
0.48
$
(24.16
)
Weighted average basic and diluted net investment income (loss) per common share
$
1.48
$
6.92
$
(1.00
)
Weighted average common shares outstanding - basic and diluted
PhenixFIN Corporation is an internally managed non-diversified closed-end management investment company. The Companyâs investment objective is to generate current income and capital appreciation. It seeks to achieve this objective primarily through making loans, private equity or other investments in privately held companies. It may also make debt, equity or other investments in publicly traded companies. These investments may also include investments in other BDCs, closed-end funds or real estate investment trusts (REITs). It may also pursue other strategic opportunities and invest in other assets or operate other businesses to achieve its investment objective, such as operating and managing an asset-based lending business. The portfolio generally consists of senior secured first lien term loans, senior secured second lien term loans, senior secured bonds, preferred equity and common equity. Its loan and other debt investments are primarily rated below investment grade or are unrated.
PHENIXFIN CORPORATION 
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