PhenixFIN Corporation Announces Fiscal First Quarter 2023 Financial Results
February 09 2023 - 6:00AM
PhenixFIN Corporation (NASDAQ: PFX) (the "Company"), a publicly
traded business development company, today announced its financial
results for the fiscal first quarter of 2023.
Highlights
- First quarter total investment
income was $4.7 million; net investment income of $1.7 million
- Net asset value (NAV) of $124.7
million, or $59.38 per share as of December 31, 2022
- Secured a 3-year $50 million credit
facility with Woodforest National Bank as lead arranger (SOFR +
2.90%)
- Weighted average yield of 11.3% on
debt and other income producing investments
Subsequent Events:
- On January 17, 2023, redeemed the
$22.5 million 6.125% unsecured notes due March 30, 2023
- On February 8, 2023, the Board
approved the expansion of the current repurchase program from $25
million to $35 million. Since announcing the plan on January 11,
2021 through February 7, 2023, the Company has repurchased 627,137
shares at an aggregate price of $24.9 million.
David Lorber, Chief Executive Officer of the
Company, stated:
“While the capital markets remain volatile, they
also present attractive investment opportunities for generating
shareholder value. For the quarter the portfolio performed well
with strong income generation coupled with NAV/share growth. In
addition, we are pleased to announce a $10 million increase in the
share repurchase program. Since the program’s inception we have
repurchased 23% of our shares outstanding.”
Selected First Quarter 2023 Financial
Results
For the quarter ended December 31, 2022, total
investment income was $4.7 million, of which $4.6 million was
attributable to portfolio interest and dividend income and $0.1
million was attributable to fee and other income.
For the quarter ended December 31, 2022, total
net expenses were $3.1 million and total net investment income was
$1.6 million.
For the quarter ended December 31, 2022, the
Company recorded a net realized gain of $13k and net unrealized
gain of $2.3 million, due largely to market volatility in various
investments.
Portfolio and Investment Activities
As of December 31, 2022, the fair value of the
Company's investment portfolio totaled $183.3 million and consisted
of 43 portfolio companies.
As of December 31, 2022, the Company had 5
portfolio company investments on non-accrual status with a fair
market value of $5.4 million.
Liquidity and Capital Resources
At December 31, 2022, the Company had $17.6
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,
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
CORPORATIONConsolidated Statements of Assets and
Liabilities
|
|
December 31,2022(Unaudited) |
|
|
September 30,2022 |
|
Assets: |
|
|
|
|
|
|
Investments at fair value |
|
|
|
|
|
|
Non-controlled, non-affiliated investments (amortized cost of
$146,467,213 and $147,378,917, respectively) |
|
$ |
123,227,670 |
|
|
|
$ |
122,616,275 |
|
Affiliated investments (amortized cost of $29,987,947 and
$30,585,884, respectively) |
|
|
12,431,792 |
|
|
|
|
12,314,192 |
|
Controlled investments (amortized cost of $75,017,459 and
$85,483,093, respectively) |
|
|
47,611,717 |
|
|
|
|
58,026,182 |
|
Total Investments at fair
value |
|
|
183,271,179 |
|
|
|
|
192,956,649 |
|
Cash and cash equivalents |
|
|
17,654,080 |
|
|
|
|
22,768,066 |
|
Receivables: |
|
|
|
|
|
|
|
|
Interest receivable |
|
|
1,712,890 |
|
|
|
|
727,576 |
|
Paydown receivable |
|
|
400,308 |
|
|
|
|
112,500 |
|
Dividends receivable |
|
|
269,330 |
|
|
|
|
269,330 |
|
Other receivable |
|
|
- |
|
|
|
|
36,992 |
|
Prepaid share repurchase |
|
|
384,637 |
|
|
|
|
489,156 |
|
Deferred financing costs |
|
|
332,092 |
|
|
|
|
50,000 |
|
Due from Affiliate |
|
|
301,020 |
|
|
|
|
271,962 |
|
Other assets |
|
|
1,054,413 |
|
|
|
|
1,192,677 |
|
Total Assets |
|
$ |
205,379,949 |
|
|
|
$ |
218,874,908 |
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
Notes payable (net of debt
issuance costs of $1,955,972 and $2,059,164, respectively) |
|
$ |
78,065,828 |
|
|
|
$ |
77,962,636 |
|
Accounts payable and accrued
expenses |
|
|
1,042,136 |
|
|
|
|
2,040,277 |
|
Other liabilities |
|
|
535,267 |
|
|
|
|
572,949 |
|
Interest and fees payable |
|
|
503,125 |
|
|
|
|
503,125 |
|
Deferred revenue |
|
|
472,521 |
|
|
|
|
325,602 |
|
Administrator expenses
payable |
|
|
68,267 |
|
|
|
|
74,911 |
|
Due to broker |
|
|
- |
|
|
|
|
16,550,000 |
|
Total Liabilities |
|
|
80,687,144 |
|
|
|
|
98,029,500 |
|
|
|
|
|
|
|
|
|
|
Commitments and
Contingencies |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net
Assets: |
|
|
|
|
|
|
|
|
Common Shares, $0.001 par value; 5,000,000 shares authorized;
2,723,709 shares issued; 2,099,824 and 2,102,129 common shares
outstanding, respectively |
|
|
2,100 |
|
|
|
|
2,102 |
|
Capital in excess of par
value |
|
|
675,297,285 |
|
|
|
|
675,401,802 |
|
Total distributable earnings
(loss) |
|
|
(550,606,580 |
) |
|
|
|
(554,558,496 |
) |
Total Net Assets |
|
|
124,692,805 |
|
|
|
|
120,845,408 |
|
Total Liabilities and Net Assets |
|
$ |
205,379,949 |
|
|
|
$ |
218,874,908 |
|
|
|
|
|
|
|
|
|
|
Net Asset Value Per Common Share |
|
$ |
59.38 |
|
|
|
$ |
57.49 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PHENIXFIN
CORPORATIONConsolidated Statements of
Operations(Unaudited)
|
|
For the Three Months EndedDecember
31, |
|
|
|
2022 |
|
|
2021 |
|
|
|
|
|
|
|
|
Interest
Income: |
|
|
|
|
|
|
Interest from investments |
|
|
|
|
|
|
Non-controlled, non-affiliated
investments: |
|
|
|
|
|
|
Cash |
|
$ |
1,916,041 |
|
|
$ |
1,015,692 |
|
Payment in-kind |
|
|
106,187 |
|
|
|
138,511 |
|
Affiliated investments: |
|
|
|
|
|
|
|
|
Cash |
|
|
198,453 |
|
|
|
122,147 |
|
Payment in-kind |
|
|
89,743 |
|
|
|
97,028 |
|
Controlled investments: |
|
|
|
|
|
|
|
|
Cash |
|
|
194,627 |
|
|
|
553,638 |
|
Total interest income |
|
|
2,505,051 |
|
|
|
1,927,016 |
|
Dividend income |
|
|
2,032,358 |
|
|
|
702,930 |
|
Interest from cash and cash
equivalents |
|
|
92,226 |
|
|
|
2,739 |
|
Fee income |
|
|
73,599 |
|
|
|
270,122 |
|
Other income |
|
|
- |
|
|
|
230,434 |
|
Total Investment
Income |
|
|
4,703,234 |
|
|
|
3,133,241 |
|
|
|
|
|
|
|
|
|
|
Expenses: |
|
|
|
|
|
|
|
|
Interest and financing expenses |
|
|
1,233,176 |
|
|
|
1,487,675 |
|
Salaries and benefits |
|
|
857,533 |
|
|
|
505,875 |
|
Professional fees, net |
|
|
347,917 |
|
|
|
306,751 |
|
General and administrative expenses |
|
|
219,977 |
|
|
|
196,559 |
|
Directors fees |
|
|
194,000 |
|
|
|
208,500 |
|
Insurance expenses |
|
|
124,084 |
|
|
|
158,904 |
|
Administrator expenses |
|
|
77,884 |
|
|
|
68,866 |
|
Total expenses |
|
|
3,054,571 |
|
|
|
2,933,130 |
|
Net Investment
Income |
|
|
1,648,663 |
|
|
|
200,111 |
|
|
|
|
|
|
|
|
|
|
Realized and
unrealized gains (losses) on investments |
|
|
|
|
|
|
|
|
Net realized gains
(losses): |
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
|
13,448 |
|
|
|
484,513 |
|
Affiliated investments |
|
|
- |
|
|
|
14,737,897 |
|
Controlled investments |
|
|
- |
|
|
|
925 |
|
Total net realized
gains (losses) |
|
|
13,448 |
|
|
|
15,223,335 |
|
Net change in unrealized gains
(losses): |
|
|
|
|
|
|
|
|
Non-controlled, non-affiliated investments |
|
|
1,523,099 |
|
|
|
131,963 |
|
Affiliated investments |
|
|
715,537 |
|
|
|
(10,473,843 |
) |
Controlled investments |
|
|
51,169 |
|
|
|
17,641 |
|
Total net change in
unrealized gains (losses) |
|
|
2,289,805 |
|
|
|
(10,324,239 |
) |
Loss on extinguishment of
debt |
|
|
- |
|
|
|
(296,197 |
) |
Total realized and
unrealized gains (losses) |
|
|
2,303,253 |
|
|
|
4,602,899 |
|
|
|
|
|
|
|
|
|
|
Net Increase
(Decrease) in Net Assets Resulting from Operations |
|
$ |
3,951,916 |
|
|
$ |
4,803,010 |
|
|
|
|
|
|
|
|
|
|
Weighted average basic and
diluted earnings per common share |
|
$ |
1.88 |
|
|
$ |
1.91 |
|
Weighted average basic and
diluted net investment income (loss) per common share |
|
$ |
0.78 |
|
|
$ |
0.08 |
|
Weighted average common shares
outstanding - basic and diluted |
|
|
2,100,876 |
|
|
|
2,517,221 |
|
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