PhenixFIN Corporation Announces Fiscal Year and Fourth Quarter 2023 Financial Results

For the Fiscal Year ended 2023, NAV per share grew 23% year over year and NII per share more than doubled

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 [e-mail].

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