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PhenixFIN Corporation Announces Fiscal Year and Fourth Quarter 2024 Financial Results

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PhenixFIN (PFX) reported strong fiscal year 2024 results, highlighting a 12% year-over-year growth in NAV per share from $70.75 to $79.37. The fourth quarter showed total investment income of $5.6 million and net investment income of $0.5 million. The company's investment portfolio reached $227.9 million across 41 companies, with a weighted average yield of 12.3% on debt investments.

A significant milestone was achieved with the acquisition of approximately 80% equity in The National Security Group (NSG), an Alabama-based insurance holding company, completed on October 1, 2024. The company's financial position includes $67.6 million in cash, $59.2 million in unsecured notes due 2028, and $78.1 million outstanding under the Credit Facility.

PhenixFIN (PFX) ha riportato risultati fiscali robusti per l'anno 2024, evidenziando una crescita del 12% rispetto all'anno precedente nel NAV per azione, passando da $70.75 a $79.37. Il quarto trimestre ha mostrato un reddito totale da investimenti di $5.6 milioni e un reddito netto da investimenti di $0.5 milioni. Il portafoglio d'investimenti dell'azienda ha raggiunto $227.9 milioni distribuiti su 41 aziende, con un rendimento medio ponderato del 12.3% sugli investimenti in debito.

Un traguardo significativo è stato raggiunto con l'acquisizione di circa l'80% delle azioni di The National Security Group (NSG), una holding assicurativa con sede in Alabama, completata il 1° ottobre 2024. La posizione finanziaria dell'azienda include $67.6 milioni in liquidità, $59.2 milioni in titoli non garantiti in scadenza nel 2028, e $78.1 milioni di debito residuo sotto la linea di credito.

PhenixFIN (PFX) informó resultados sólidos para el año fiscal 2024, destacando un crecimiento del 12% año tras año en el NAV por acción, que pasó de $70.75 a $79.37. El cuarto trimestre mostró un ingreso total por inversiones de $5.6 millones y un ingreso neto de inversiones de $0.5 millones. La cartera de inversiones de la empresa alcanzó los $227.9 millones distribuidos en 41 empresas, con un rendimiento promedio ponderado del 12.3% en inversiones de deuda.

Se logró un hito significativo con la adquisición de aproximadamente el 80% de las acciones de The National Security Group (NSG), una compañía de seguros con sede en Alabama, completada el 1 de octubre de 2024. La posición financiera de la empresa incluye $67.6 millones en efectivo, $59.2 millones en notas no garantizadas que vencen en 2028, y $78.1 millones pendientes bajo la línea de crédito.

PhenixFIN (PFX)는 2024 회계 연도의 강력한 실적을 보고하며, 주당 NAV의 연간 12% 성장률을 강조했습니다. NAV는 $70.75에서 $79.37로 증가했습니다. 4분기 전체 투자 수익은 $5.6백만 달러, 순 투자 수익은 $0.5백만 달러에 달했습니다. 회사의 투자 포트폴리오는 41개 기업을 통해 $227.9백만 달러에 도달했으며, 채무 투자에 대한 가중 평균 수익률은 12.3%입니다.

알라바마에 본사를 둔 보험 지주회사인 The National Security Group (NSG)의 약 80% 지분을 인수하면서 중요한 이정표를 달성했습니다. 이 인수는 2024년 10월 1일에 완료되었습니다. 회사의 재무 상태는 $67.6백만 달러의 현금, 2028년 만기인 $59.2백만 달러의 무담보 채권, 신용 시설 아래에 있는 $78.1백만 달러의 미결제 잔액을 포함합니다.

PhenixFIN (PFX) a signalé de solides résultats financiers pour l'année fiscale 2024, mettant en évidence une croissance de 12% d'une année sur l'autre du NAV par action, passant de 70,75 $ à 79,37 $. Le quatrième trimestre a montré des revenus totaux d'investissement de 5,6 millions de dollars et des revenus nets d'investissement de 0,5 million de dollars. Le portefeuille d'investissement de l'entreprise a atteint 227,9 millions de dollars répartis sur 41 entreprises, avec un rendement moyen pondéré de 12,3 % sur les investissements en dette.

Un jalon significatif a été atteint avec l'acquisition d'environ 80 % des actions de The National Security Group (NSG), une société de holding d'assurance basée en Alabama, complétée le 1er octobre 2024. La position financière de l'entreprise comprend 67,6 millions de dollars en espèces, 59,2 millions de dollars en obligations non garanties échéant en 2028, et 78,1 millions de dollars d'excédent sous la facilité de crédit.

PhenixFIN (PFX) meldete für das Geschäftsjahr 2024 starke Ergebnisse und hob ein jährliches Wachstum des NAV pro Aktie von 12% hervor, das von $70.75 auf $79.37 gestiegen ist. Im vierten Quartal gab es ein Gesamteinkommen aus Investitionen von $5.6 Millionen und ein Nettoinvestitionseinkommen von $0.5 Millionen. Das Anlageportfolio des Unternehmens erreichte $227.9 Millionen über 41 Unternehmen, mit einer gewichteten durchschnittlichen Rendite von 12.3% bei Schuldinvestitionen.

Ein bedeutender Meilenstein wurde mit dem Erwerb von etwa 80% der Anteile an der National Security Group (NSG), einer in Alabama ansässigen Versicherungsgesellschaft, erreicht, der am 1. Oktober 2024 abgeschlossen wurde. Die finanzielle Lage des Unternehmens umfasst $67.6 Millionen in Barbestand, $59.2 Millionen in ungesicherten Anleihen mit Fälligkeit 2028 und $78.1 Millionen an ausstehenden Beträgen unter der Kreditfazilität.

Positive
  • 12% growth in NAV per share from $70.75 to $79.37
  • Portfolio fair value of $227.9 million across 41 companies
  • 12.3% weighted average yield on debt investments
  • Strategic acquisition of 80% equity in NSG
  • Strong liquidity position with $67.6 million in cash
Negative
  • Only $0.5 million in net investment income for Q4
  • 3 portfolio companies on non-accrual status worth $2.4 million
  • Significant debt exposure with $137.3 million in combined notes and credit facility

Insights

PhenixFIN delivered a solid fiscal year 2024 with notable financial metrics. The 12% NAV growth from $70.75 to $79.37 per share demonstrates strong portfolio management. The quarter showed $5.6 million in total investment income, though net investment income was modest at $0.5 million. The portfolio yield of 12.3% on debt investments is competitive in the BDC space.

The acquisition of 80% of NSG represents a strategic pivot, potentially diversifying revenue streams. With $67.6 million in cash and a $227.9 million portfolio across 41 companies, the balance sheet appears robust. However, investors should note the $137.3 million in total debt obligations through notes and credit facility. The $2.4 million in non-accrual investments, while relatively small, warrants monitoring.

The strategic acquisition of The National Security Group marks PhenixFIN's expansion into the insurance sector, potentially reducing portfolio concentration risk. The $227.9 million investment portfolio shows meaningful scale for a company with a market cap under $100 million. The high-quality portfolio is evidenced by low non-accrual rates, representing approximately 1% of fair value.

The substantial cash position of $67.6 million provides significant dry powder for future investments and strategic flexibility. The 12% NAV growth outperforms many peers in the BDC sector, indicating strong investment selection and portfolio management. This performance could attract increased institutional interest and potentially lead to multiple expansion.

For the Fiscal Year ended 2024 NAV per share grew 12% year over year

NEW YORK, Dec. 17, 2024 (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 2024.

Highlights

  • Fourth quarter total investment income of $5.6 million; net investment income of $0.5 million
  • Net asset value (NAV) of $160.3 million, or $79.37 per share as of September 30, 2024, vs. $70.75 per share as of September 30, 2023
  • Weighted average yield was 12.3% on debt and other income producing investments as of the fiscal year end
  • On October 1, 2024 the Company completed the acquisition of approximately 80% of the equity of The National Security Group, Inc. (“NSG”) an Alabama based insurance holding company.

David Lorber, Chief Executive Officer of the Company, stated:

“We are pleased with our performance in 2024 as we grew NAV per share 12%, from $70.75 to $79.37 per share. We are also excited with the successful transaction with NSG and look forward to new avenues of growth. This acquisition marks a significant milestone for PhenixFIN and aligns with our commitment to execute on our investment strategy.”

Selected Fourth Quarter 2024 Financial Results for the Quarter Ended September 30, 2024:

Total investment income was $5.6 million of which $5.4 million was attributable to portfolio interest and dividend income and $0.2 million was attributable to fee and other income.

Total net expenses were $5.1 million and total net investment income was $0.5 million.

The Company recorded a net realized gain of $0.2 million and net unrealized gain of $4.6 million.  

Portfolio and Investment Activities for the Quarter Ended September 30, 2024:

The fair value of the Company's investment portfolio totaled $227.9 million and consisted of 41 portfolio companies.

The Company had 3 portfolio company investments on non-accrual status with a fair market value of $2.4 million.

Liquidity and Capital Resources

At September 30, 2024, the Company had $67.6 million in cash and cash equivalents, $59.2 million in aggregate principal amount of its 5.25% unsecured notes due 2028 and $78.1 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, increase net investment income, implement its investment strategy and achieve 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, including National Security Group, Inc. 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 CORPORATION
Consolidated Statements of Assets and Liabilities
 
  September 30,
2024
  September 30,
2023
 
Assets:      
Investments at fair value      
Non-controlled, non-affiliated investments (amortized cost of $143,179,354 and $134,339,121 respectively) $142,233,426  $125,531,031 
Affiliated investments (amortized cost of $20,564,242 and $48,233,910, respectively)  14,750,785   37,289,617 
Controlled investments (amortized cost of $97,016,429 and $82,437,692, respectively)  70,931,647   63,640,043 
Total Investments at fair value  227,915,858   226,460,691 
Cash and cash equivalents  67,571,559   5,988,223 
Receivables:        
Other receivable  65,838   31,425 
Interest receivable  1,313,598   971,115 
Dividends receivable  23,468   161,479 
Receivable for investments sold  2,955,775   3,940,175 
Other assets  1,066,323   833,000 
Deferred tax asset  887,099   - 
Deferred financing costs  760,680   699,124 
Prepaid share repurchase  101,115   199,019 
Due from Affiliate  90,500   409,214 
Total Assets $302,751,813  $239,693,465 
         
Liabilities:        
Credit facility and notes payable (net of debt issuance costs of $1,510,815 and $1,688,835, respectively) $135,723,636  $84,253,106 
Accounts payable and accrued expenses  5,570,150   3,066,984 
Interest and fees payable  768,043   690,398 
Other liabilities  294,063   432,698 
Due to Affiliate  88,148   - 
Payable for investments purchased  -   4,123,059 
Deferred revenue  -   421,685 
Total Liabilities  142,444,040   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; 2,019,778 and 2,073,713 common shares outstanding, respectively  2,020   2,074 
Capital in excess of par value  704,909,588   694,812,239 
Total distributable earnings (loss)  (544,603,835)  (548,108,778)
Total Net Assets  160,307,773   146,705,535 
Total Liabilities and Net Assets $302,751,813  $239,693,465 
         
Net Asset Value Per Common Share $79.37  $70.75 

 

 
PHENIXFIN CORPORATION
Consolidated Statements of Operations
 
  For the Years Ended September 30, 
  2024  2023  2022 
Interest Income:         
Interest from investments         
Non-controlled, non-affiliated investments:         
Cash $10,231,111  $8,031,539  $5,207,850 
Payment in-kind  938,879   506,555   444,741 
Affiliated investments:            
Cash  742,881   1,925,293   639,733 
Payment in-kind  -   460,856   374,981 
Controlled investments:            
Cash  2,121,713   667,312   2,489,381 
Payment in-kind  268,831   557,981   - 
Total interest income  14,303,415   12,149,536   9,156,686 
Dividend income            
Non-controlled, non-affiliated investments  2,691,393   3,139,592   1,996,374 
Affiliated investments  199,388   -   - 
Controlled investments  3,972,352   3,716,676   3,507,051 
Total dividend income  6,863,133   6,856,268   5,503,425 
Interest from cash and cash equivalents  500,079   400,031   139,942 
Fee income (see Note 9)  514,949   324,290   420,279 
Other income  22   402,138   323,828 
Total Investment Income  22,181,598   20,132,263   15,544,160 
             
Expenses:            
Interest and financing expenses  6,609,473   5,531,833   5,113,105 
Salaries and benefits  6,850,792   4,186,852   2,952,106 
Professional fees, net  1,462,766   1,404,676   1,340,828 
General and administrative expenses  1,093,922   983,274   1,103,125 
Directors fees  750,000   728,833   712,000 
Insurance expenses  378,854   466,319   590,178 
Administrator expenses (see Note 6)  301,931   320,310   301,281 
Total expenses  17,447,738   13,622,097   12,112,623 
Net Investment Income  4,733,860   6,510,166   3,431,537 
             
Realized and unrealized gains (losses) on investments            
Net realized gains (losses):            
Non-controlled, non-affiliated investments  740,924   (10,538,228)  810,240 
Affiliated investments  (1,991,456)  (1,018,267)  4,408,961 
Controlled investments  8,542,831   23,456   1,850 
Total net realized gains (losses)  7,292,299   (11,533,039)  5,221,051 
Net change in unrealized gains (losses):            
Non-controlled, non-affiliated investments  7,862,162   15,954,552   (16,701,153)
Affiliated investments  5,130,836   7,327,399   96,490 
Controlled investments  (7,287,134)  8,659,262   2,141,326 
Total net change in unrealized gains (losses)  5,705,864   31,941,213   (14,463,337)
Loss on extinguishment of debt (see Note 5)  -   -   (296,197)
Deferred tax benefit (expense)  887,099   -   - 
Total realized and unrealized gains (losses)  13,885,262   20,408,174   (9,538,483)
             
Net Increase (Decrease) in Net Assets Resulting from Operations $18,619,122  $26,918,340  $(6,106,946)
             
Weighted average basic and diluted earnings per common share $9.13  $12.87  $(2.63)
Weighted average common shares outstanding - basic and diluted (see Note 11)  2,040,253   2,092,326   2,323,601 

FAQ

What was PhenixFIN's (PFX) NAV per share growth in fiscal year 2024?

PhenixFIN's NAV per share grew 12% year-over-year, increasing from $70.75 to $79.37 per share in fiscal year 2024.

How much was PFX's total investment income in Q4 2024?

PhenixFIN reported total investment income of $5.6 million in Q4 2024, with $5.4 million from portfolio interest and dividend income and $0.2 million from fee and other income.

What is the size of PhenixFIN's (PFX) investment portfolio as of Q4 2024?

PhenixFIN's investment portfolio had a fair value of $227.9 million and consisted of 41 portfolio companies as of September 30, 2024.

What major acquisition did PFX complete in October 2024?

PhenixFIN completed the acquisition of approximately 80% of the equity of The National Security Group (NSG), an Alabama-based insurance holding company, on October 1, 2024.

What is PhenixFIN's (PFX) current debt structure as of Q4 2024?

As of September 30, 2024, PhenixFIN had $59.2 million in 5.25% unsecured notes due 2028 and $78.1 million outstanding under the Credit Facility.

PhenixFIN Corporation

NASDAQ:PFX

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Asset Management
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