PhenixFIN Corporation Announces September 30, 2021 Financial Results
PhenixFIN Corporation (NASDAQ: PFX) reported its financial results for Q4 and FY ending September 30, 2021. Total investment income reached $4.4 million, with net investment income of $1.1 million. As of September 30, 2021, the company held $69.4 million in cash and had a net asset value of $143.7 million ($57.08 per share). The company repurchased 141,700 shares for $5.9 million and launched FlexFIN, LLC to provide financing in the jewelry industry. The firm also reported a net capital loss carryforward of $490 million.
- Total investment income of $4.4 million for Q4 2021.
- Net asset value increased to $143.7 million ($57.08 per share).
- 141,700 shares repurchased for $5.9 million.
- Launched FlexFIN, LLC to tap into the jewelry financing market.
- Net change in unrealized depreciation of $12.1 million.
- 9 portfolio investments on non-accrual status valued at $13.9 million.
- Net capital loss carryforward of $490 million.
NEW YORK, Dec. 20, 2021 (GLOBE NEWSWIRE) -- PhenixFIN Corporation (NASDAQ: PFX) (the “Company”), a publicly traded business development company, today announced its financial results for the fiscal fourth quarter and fiscal year ended September 30, 2021.
Fourth Quarter Highlights
- Total investment income of
$4.4 million ; net investment income of$1.1 million $69.4 million in cash and cash equivalents on September 30, 2021- Net asset value of
$143.7 million , or$57.08 per share as of September 30, 2021 vs.$55.30 per share as of September 30, 2020 - 141,700 shares repurchased for an aggregate purchase price of
$5.9 million during the fourth quarter - Launched FlexFIN, LLC, an asset-based lending business engaged in the gem and jewelry industry.
Subsequent Event
- On November 15, 2021, PhenixFIN issued
$57.5 million in aggregate principal amount of5.25% unsecured notes due 2028 (NASDAQ: PFXNZ)
David Lorber, Chief Executive Officer of the Company, stated:
“In our first three quarters as being an internally managed BDC we have made appreciable progress on repositioning the portfolio as we continue to be focused on optimizing the long-term value of PhenixFIN.”
Since January 1, 2021 we have monetized 13 positions and deployed capital into 16 new investments.
During the fourth quarter, we launched FlexFIN, LLC, a partnership with Kwiat & Fred Leighton to provide alternative financing to the gem and jewelry industry. The partnership is intended to leverage Kwiat’s rich 115-year history and network within the gem and jewelry industry. We believe this new business affords us the opportunity to generate higher-yielding, risk adjusted returns within the multi-billion-dollar jewelry industry.
In addition, as of September 30, 2021, the Company had a net capital loss carryforward of
On January 11, 2021, the Company announced that the Board of Directors approved a share repurchase program authorizing up to
Selected Fourth Quarter 2021 Financial Results
For the quarter ended September 30, 2021, investment income totaled
For the quarter ended September 30, 2021, total net expenses were
For the quarter ended September 30, 2021, the Company recorded a net realized gain of
Portfolio and Investment Activities
As of September 30, 2021, the fair value of the Company’s investment portfolio totaled
As of September 30, 2021, the Company had 9 portfolio company investments on non-accrual status with a fair market value of
Liquidity and Capital Resources
At September 30, 2021, the Company had
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, optimize its tax attributes, develop FlexFIN into a successful business 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 info@phenixfc.com.
PHENIXFIN CORPORATION
Consolidated Statements of Assets and Liabilities
| September 30, 2021 | September 30, 2020 | |||||||
| Assets: | ||||||||
| Investments at fair value | ||||||||
| Non-controlled, non-affiliated investments (amortized cost of | $ | 84,152,678 | $ | 114,321,948 | ||||
| Affiliated investments (amortized cost of | 57,595,245 | 84,873,023 | ||||||
| Controlled investments (amortized cost of | 9,891,860 | 47,548,578 | ||||||
| Total Investments at fair value | 151,639,783 | 246,743,549 | ||||||
| Cash and cash equivalents | 69,433,256 | 56,522,148 | ||||||
| Receivables: | ||||||||
| Fees receivable | 1,872,700 | 119,028 | ||||||
| Interest receivable | 371,576 | 624,524 | ||||||
| Paydown receivable | 292,015 | - | ||||||
| Dividends receivable | 81,211 | - | ||||||
| Other assets | 1,401,746 | 2,093,559 | ||||||
| Total Assets | $ | 225,092,287 | $ | 306,102,808 | ||||
| Liabilities: | ||||||||
| Notes payable (net of debt issuance costs of | $ | 77,434,005 | $ | 150,960,662 | ||||
| Due to broker | 1,586,000 | - | ||||||
| Accounts payable and accrued expenses | 1,416,524 | 2,108,225 | ||||||
| Due to affiliates | 280,323 | 53,083 | ||||||
| Administrator expenses payable | 67,920 | 156,965 | ||||||
| Management and incentive fees payable | - | 1,392,022 | ||||||
| Interest and fees payable | - | 801,805 | ||||||
| Deferred revenue | - | 10,529 | ||||||
| Other liabilities | 613,534 | - | ||||||
| Total Liabilities | 81,398,306 | 155,483,291 | ||||||
| Commitments and Contingencies | ||||||||
| Net Assets: | ||||||||
| Common Shares, | 2,517 | 2,724 | ||||||
| Capital in excess of par value | 688,866,642 | 672,381,617 | ||||||
| Total distributable earnings (loss) | (545,175,178 | ) | (521,764,824 | ) | ||||
| Total Net Assets | 143,693,981 | 150,619,517 | ||||||
| Total Liabilities and Net Assets | $ | 225,092,287 | $ | 306,102,808 | ||||
| Net Asset Value Per Common Share | $ | 57.08 | $ | 55.30 | ||||
PHENIXFIN CORPORATION
Consolidated Statements of Operations
| For the Years Ended September 30 | ||||||||||||
| 2021 | 2020 | 2019 | ||||||||||
| Interest Income: | ||||||||||||
| Interest from investments | ||||||||||||
| Non-controlled, non-affiliated investments: | ||||||||||||
| Cash | $ | 5,974,807 | $ | 9,137,394 | $ | 25,368,027 | ||||||
| Payment in-kind | 609,964 | 863,744 | 1,755,260 | |||||||||
| Affiliated investments: | ||||||||||||
| Cash | 1,099,809 | 1,182,294 | 2,197,555 | |||||||||
| Payment in-kind | 327,804 | 2,425,557 | 2,604,279 | |||||||||
| Controlled investments: | ||||||||||||
| Cash | 75,000 | 84,505 | 337,956 | |||||||||
| Payment in-kind | - | 500,767 | 2,800,890 | |||||||||
| Total interest income | 8,087,384 | 14,194,261 | 35,063,967 | |||||||||
| Dividend income | 21,564,348 | 6,256,250 | 8,218,480 | |||||||||
| Interest from cash and cash equivalents | 10,402 | 378,077 | 712,017 | |||||||||
| Fee income | 2,566,519 | 692,988 | 2,304,287 | |||||||||
| Other income | 78,204 | - | - | |||||||||
| Total Investment Income | 32,306,857 | 21,521,576 | 46,298,751 | |||||||||
| Expenses: | ||||||||||||
| Base management fees | 1,146,403 | 6,358,750 | 11,189,646 | |||||||||
| Interest and financing expenses | 5,800,100 | 14,935,017 | 24,049,485 | |||||||||
| General and administrative expenses | 1,012,147 | 3,285,259 | 7,398,534 | |||||||||
| Salaries and benefits | 1,993,277 | - | - | |||||||||
| Administrator expenses | 612,983 | 2,226,831 | 3,323,989 | |||||||||
| Insurance expenses | 1,619,536 | 1,463,391 | 623,064 | |||||||||
| Directors fees | 1,039,717 | 1,451,077 | 1,258,378 | |||||||||
| Professional fees, net | 559,975 | (4,768,050 | ) | 19,323,082 | ||||||||
| Expenses before expense support reimbursement and management and incentive fee waivers | 13,784,138 | 24,952,275 | 67,166,178 | |||||||||
| Expense support reimbursement | - | (710,294 | ) | - | ||||||||
| Total expenses net of expense support reimbursement and management and incentive fee waivers | 13,784,138 | 24,241,981 | 67,166,178 | |||||||||
| Net Investment Income | 18,522,719 | (2,720,405 | ) | (20,867,427 | ) | |||||||
| Realized and unrealized gains (losses) on investments | ||||||||||||
| Net realized gains (losses): | ||||||||||||
| Non-controlled, non-affiliated investments | 7,747,672 | (9,973,416 | ) | (24,762,224 | ) | |||||||
| Affiliated investments | (10,088,405 | ) | (928,990 | ) | (7,670,970 | ) | ||||||
| Controlled investments | (40,144,795 | ) | (39,076,425 | ) | (79,739,742 | ) | ||||||
| Total net realized gains (losses) | (42,485,528 | ) | (49,978,831 | ) | (112,172,936 | ) | ||||||
| Net change in unrealized gains (losses): | ||||||||||||
| Non-controlled, non-affiliated investments | (5,022,484 | ) | 9,898,237 | 20,727,499 | ||||||||
| Affiliated investments | (10,342,450 | ) | 2,648,353 | (6,864,255 | ) | |||||||
| Controlled investments | 40,728,006 | (23,178,993 | ) | 24,634,707 | ||||||||
| Total net change in unrealized gains (losses) | 25,363,072 | (10,632,403 | ) | 38,497,951 | ||||||||
| Loss on extinguishment of debt | (122,355 | ) | (2,481,374 | ) | (2,032,655 | ) | ||||||
| Total realized and unrealized gains (losses) | (17,244,811 | ) | (63,092,608 | ) | (75,707,640 | ) | ||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 1,277,908 | $ | (65,813,013 | ) | $ | (96,575,067 | ) | ||||
| Weighted Average Basic and diluted earnings per common share | $ | 0.48 | $ | (24.16 | ) | $ | (35.46 | ) | ||||
| Weighted Average Basic and diluted net investment income (loss) per common share | $ | 6.92 | $ | (1.00 | ) | $ | (7.66 | ) | ||||
| Weighted Average Common Shares Outstanding - Basic and Diluted | 2,677,891 | 2,723,709 | 2,723,709 | |||||||||
| Dividends Declared per Common Share | $ | - | $ | - | $ | 3.00 | ||||||
FAQ
What were PhenixFIN's total investment earnings for Q4 2021?
What is PhenixFIN's net asset value as of September 30, 2021?
What actions did PhenixFIN take regarding stock repurchase in Q4 2021?
What notable event occurred with PhenixFIN's financial results in late 2021?
How did PhenixFIN's portfolio perform as of September 30, 2021?
