NEW YORK, Aug. 11, 2021 (Globalrelease Wire) — PhenixFIN Corporation (NASDAQ: PFX) (the “Company”), a publicly traded business development company, today announced its financial results for the fiscal third quarter of 2021.
Third Quarter 2021 Highlights
- Total investment income of $8.7 million; net investment income of $5.4 million
- $52.9 million in cash on June 30, 2021
- Net asset value of $156.7 million, or $58.49 per share as of June 30, 2021 vs. $55.30 per share as of September 30, 2020
David Lorber, Chief Executive Officer of the Company, stated: “We are pleased with our performance during the first two quarters of being an internally-managed company. We are encouraged by the improvement in NAV and potential opportunities to deploy capital.”
On January 11, 2021, the Company announced that the Board of Directors approved a share repurchase program authorizing up to $15 million in share repurchases. Under the share repurchase program, the Company is authorized to repurchase from time to time its common stock in open market or other transactions, subject to applicable regulatory requirements. Under this program, 44,788 shares were repurchased through June 30, 2021. In aggregate through August 10, 2021 64,788 shares have been repurchased at an average price of $32.74/share.
Third Quarter 2021 Financial Results
For the quarter ended June 30, 2021, investment income totaled $8.7 million, of which $8.6 million was attributable to portfolio interest and dividend income and $0.1 million was attributable to fee income.
For the quarter ended June 30, 2020, investment income totaled $4.3 million, of which $4.1 million was attributable to portfolio interest and dividend income, and $0.2 million to fee income.
For the quarter ended June 30, 2021, total net expenses were $3.3 million and for the quarter ended June 30, 2020, total net expenses were $5.4 million.
For the quarter ended June 30, 2021, the Company recorded a net realized gain of $0.1 million and net unrealized appreciation of $1.5 million. For the quarter ended June 30, 2020, the Company recorded a net realized loss of $(37.9) million and net unrealized appreciation of $46.9 million.
Portfolio and Investment Activities
As of June 30, 2021, the fair value of the Company’s investment portfolio totaled $181.6 million and consisted of 42 portfolio companies.
As of June 30, 2021, the Company had 10 portfolio company investments on non-accrual status with a fair market value of $13.6 million.
Liquidity and Capital Resources
At June 30, 2021, the Company had $52.9 million in cash and $77.8 million outstanding in aggregate principal amount of 6.125% unsecured notes due 2023.
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, implement its investment objective, capitalize on investment opportunities and perform well and operate effectively under an internalized management structure, 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.
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]
Consolidated Statements of Assets and Liabilities
|Investments at fair value|
|Non-controlled, non-affiliated investments (amortized cost of $109,219,571 and $117,360,954, respectively)||$||105,407,064||$||114,321,948|
|Affiliated investments (amortized cost of $78,821,547 and $92,898,755, respectively)||68,722,983||84,873,023|
|Controlled investments (amortized cost of $37,489,171 and $117,874,821, respectively)||7,488,473||47,548,578|
|Total Investments at fair value||181,618,520||246,743,549|
|Cash and cash equivalents||52,864,911||56,522,148|
|Notes payable (net of debt issuance costs of $482,346 and $905,624, respectively)||$||77,364,454||$||150,960,662|
|Interest and fees payable||–||801,805|
|Due to affiliate||–||53,083|
|Due to broker||284,067||–|
|Management and incentive fees payable||–||1,392,022|
|Administrator expenses payable||60,685||156,965|
|Accounts payable and accrued expenses||1,547,888||2,108,225|
|Commitments and Contingencies|
|Common Shares, $0.001 par value; 5,000,000 shares authorized; 2,723,709 shares issued; 2,678,921 and 2,723,709 common shares outstanding, respectively||2,679||2,724|
|Capital in excess of par value||670,122,430||672,381,617|
|Total distributable earnings (loss)||(513,446,533||)||(521,764,824||)|
|Total Net Assets||$||156,678,576||$||150,619,517|
|Total Liabilities and Net Assets||$||235,949,673||$||306,102,808|
|Net Asset Value Per Common Share||$||58.49||$||55.30|
Consolidated Statements of Operations
|For the Three Months Ended
|For the Nine Months Ended
|Interest from investments|
|Non-controlled, non-affiliated investments:|
|Total interest income||2,300,991||2,877,661||6,226,356||11,382,119|
|Interest from cash and cash equivalents||3,862||4,319||5,308||376,747|
|Total Investment Income||8,683,704||4,309,102||27,939,334||17,101,520|
|Base management fees||–||1,317,223||1,146,403||4,966,728|
|Interest and financing expenses||1,260,825||2,736,136||4,538,520||12,312,183|
|General and administrative expenses||294,022||540,066||856,396||3,140,305|
|Salaries and Benefits||679,229||–||1,011,546||–|
|Professional fees, net||289,200||(511,519||)||113,797||(4,796,964||)|
|Expenses before expense support reimbursement and management and incentive fee waivers||3,253,686||5,377,757||10,492,563||19,313,065|
|Expense support reimbursement||–||(349,427||)||–||(349,427||)|
|Total expenses net of expense support reimbursement and management and incentive fee waivers||3,253,686||5,028,330||10,492,563||18,963,638|
|Net Investment Income||5,430,018||(719,228||)||17,446,771||(1,862,118||)|
|Realized and unrealized gains (losses) on investments|
|Net realized gains (losses):|
|Non-controlled, non-affiliated investments||38,852||(532,253||)||4,093,500||(690,167||)|
|Total net realized gains (losses)||60,513||(37,921,841||)||(46,485,337||)||(39,766,592||)|
|Net change in unrealized gains (losses):|
|Non-controlled, non-affiliated investments||(1,794,173||)||7,379,695||(773,501||)||(8,422,875||)|
|Total net change in unrealized gains (losses)||1,478,205||46,906,068||37,479,212||(22,926,706||)|
|Change in provision for deferred taxes on unrealized (appreciation) depreciation on investments||–||35,970||–||(49,694||)|
|Loss on extinguishment of debt||–||(697,191||)||(122,355||)||(2,481,374||)|
|Total realized and unrealized gains (losses)||1,538,718||8,323,006||(9,128,480||)||(65,224,366||)|
|Net Increase (Decrease) in Net Assets Resulting from Operations||$||6,968,736||$||7,603,778||$||8,318,291||$||(67,086,484||)|
|Weighted Average Basic and diluted earnings per common share||$||2.60||$||2.79||$||3.07||$||(24.63||)|
|Weighted Average Basic and diluted net investment income (loss) per common share||$||2.02||$||(0.26||)||$||6.44||$||(0.68||)|
|Weighted Average Common Shares Outstanding – Basic and Diluted||2,683,093||2,723,711||2,707,794||2,723,711|