PhenixFIN Corporation Announces Fiscal Second Quarter 2024 Financial Results
NAV Per Share Grew 22% In Last 12 MonthsExpanded Credit Facility To $62.5 Million NEW YORK, May 10, 2024 (GLOBE NEWSWIRE) -- PhenixFIN Corporation (NASDAQ: PFX, PFXNZ) (the "Company"), a publicly traded business development company, today announced its financial results for the fiscal second quarter of 2024. Highlights Second quarter total investment income of $4.7 million; net investment income of $0.6 millionNet asset value (NAV) of $154.3 million, or $76.35 per share as of March 31, 2024Weighted average yield was 13.6% on debt and other income producing investmentsRepurchased 40,000 shares during the second fiscal quarterOn February 21, 2024, the Credit Facility was amended to increase the principal amount available to $62.5 million.On May 9, 2024 the Board of Directors declared a special dividend of $1.31 per share. This dividend is payable on June 10, 2024 to stockholders of record as of May 27, 2024. David Lorber, Chief Executive Officer of the Company, stated: “We continue to be pleased with our progress in growing our NAV per share as various investments have generated favorable investment income and/or capital appreciation. We continue to pursue NAV per share growth over time. We are also excited for potential future investments that should provide additional growth opportunities. In addition, we are pleased to announce a special dividend of $1.31 per share for 2023 spillover income.” Selected Second Quarter 2024 Financial Results for the Quarter Ended March 31, 2024: Total investment income was $4.7 million which was attributable to portfolio interest and dividend income. Total expenses were $4.1 million and total net investment income was $0.6 million. The Company recorded total realized and unrealized gains of $4.8 million due to appreciation in various investments. Portfolio and Investment Activities for the Quarter Ended March 31, 2024: The fair value of the Company's investment portfolio totaled $220.0 million and consisted of 41 portfolio companies. Liquidity and Capital Resources At March 31, 2024, the Company had $19.1 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, 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 [email protected]. PHENIXFIN CORPORATIONConsolidated Statements of Assets and Liabilities March 31,2024(Unaudited) September 30,2023 Assets: Investments at fair value Non-controlled, non-affiliated investments (amortized cost of $138,055,022 and $134,339,121 respectively) $132,407,942 $125,531,031 Affiliated investments (amortized cost of $20,564,242 and $48,233,910, respectively) 14,333,867 37,289,617 Controlled investments (amortized cost of $90,793,284 and $82,437,692, respectively) 73,307,525 63,640,043 Total Investments at fair value 220,049,334 226,460,691 Cash and cash equivalents 19,123,796 5,988,223 Receivables: Interest receivable 920,769 971,115 Dividends receivable 243,302 161,479 Other receivable - 31,425 Due from Affiliate 5,326,933 409,214 Other assets 1,173,608 833,000 Deferred financing costs 724,568 699,124 Prepaid share repurchase 132,295 199,019 Receivable for investments sold - 3,940,175 Total Assets $247,694,605 $239,693,465 Liabilities: Credit facility and note payable (net of debt issuance costs of $1,522,586 and $1,688,835, respectively) $84,419,355 $84,253,106 Payable for investments purchased 5,036,284 4,123,059 Accounts payable and accrued expenses 2,707,303 3,066,984 Interest and fees payable 724,564 690,398 Other liabilities 360,477 432,698 Due to Affiliate 99,725 - Administrator expenses payable (see Note 6) 75,000 - Deferred revenue - 421,685 Total Liabilities 93,422,708 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; 2,020,490 and 2,073,713 common shares outstanding, respectively 2,021 2,074 Capital in excess of par value 692,472,513 694,812,239 Total distributable earnings (loss) (538,202,637) (548,108,778)Total Net Assets 154,271,897 146,705,535 Total Liabilities and Net Assets $247,694,605 $239,693,465 Net Asset Value Per Common Share $76.35 $70.75 PHENIXFIN CORPORATIONConsolidated Statements of Operations(Unaudited) For the Three Months EndedMarch 31, For the Six Months EndedMarch 31, 2024 2023 2024 2023 Interest Income: Interest from investments Non-controlled, non-affiliated investments: Cash $1,950,898 $2,116,741 $4,633,041 $4,032,782 Payment in-kind 90,530 119,593 181,204 225,780 Affiliated investments: Cash 276,484 261,028 732,176 459,481 Payment in-kind - - - - Controlled investments: Cash 294,028 57,188 580,266 251,815 Payment in-kind 118,864 155,994 268,831 245,737 Total interest income 2,730,804 2,710,544 6,395,518 5,215,595 Dividend income 1,652,262 1,503,375 3,665,988 3,535,733 Interest from cash and cash equivalents 199,266 125,471 240,374 217,697 Fee income (see Note 9) 76,517 171,055 78,625 244,654 Other income - 401,986 22 401,986 Total Investment Income 4,658,849 4,912,431 10,380,527 9,615,665 Expenses: Interest and financing expenses 1,567,352 1,381,596 3,109,413 2,614,772 Salaries and benefits 1,524,508 802,090 2,949,500 1,659,623 General and administrative expenses 310,776 201,181 635,837 421,158 Professional fees, net 343,150 377,229 700,704 725,146 Directors fees 187,500 176,500 375,000 370,500 Insurance expenses 96,694 121,387 194,450 245,471 Administrator expenses (see Note 6) 57,550 77,937 135,402 155,821 Total expenses 4,087,530 3,137,920 8,100,306 6,192,491 Net Investment Income 571,319 1,774,511 2,280,221 3,423,174 Realized and unrealized gains (losses) on investments Non-controlled, non-affiliated investments 200,754 (838,070) 430,558 (824,622)Affiliated investments (1,991,456) - (1,991,456) - Controlled investments - 23,273 - 23,273 Total net realized gains (losses) (1,790,702) (814,797) (1,560,898) (801,349)Net change in unrealized gains (losses): Non-controlled, non-affiliated investments 1,796,767 803,513 3,161,010 2,326,612 Affiliated investments 2,282,655 274,063 4,713,918 989,600 Controlled investments 2,512,263 4,670,928 1,311,890 4,722,097 Total net change in unrealized gains (losses) 6,591,685 5,748,504 9,186,818 8,038,309 Total realized and unrealized gains (losses) 4,800,983 4,933,707 7,625,920 7,236,960 Net Increase (Decrease) in Net Assets Resulting from Operations $5,372,302 $6,708,218 $9,906,141 $10,660,134 Weighted average basic and diluted earnings per common share $2.62 $3.20 $4.81 $5.08 Weighted average common shares outstanding - basic and diluted (see Note 11) 2,048,622 2,095,193 2,060,723 2,098,041
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