PhenixFIN Corporation Announces Fiscal Second Quarter 2025 Financial Results

NAV per share of $78.72 taking into account special dividend of $1.43 per share paid February 19, 2025

NEW YORK, May 06, 2025 (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 for its year ending September 30, 2025.

Highlights:

   -- Second quarter total investment income of $6.0 million; net investment 
      income of $1.0 million 
 
   -- Net asset value $(NAV)$ of $159 million, or $78.72 per share as of March 
      31, 2025 
 
   -- On February 6, 2025, the Board declared a special dividend of $1.43 per 
      share paid on February 19, 2025, to stockholders of record as of February 
      17, 2025 
 
   -- Weighted average yield was 11.82% on debt and other income producing 
      investments 

"In light of the broader market volatility we are pleased with another solid quarter," stated David Lorber, Chief Executive Officer. "Also, on April 17(th) we closed on an extension and successful upsize of our credit facility to April 17, 2030 and $100 million, respectively. In addition, expecting reduced overall interest expense savings with our facility funding costs declining to SOFR+250 from SOFR+290. This comes at a great time given the robust opportunity set we see in the current market environment."

Selected Second Quarter 2025 Financial Results for the Quarter Ended March 31, 2025:

Total investment income was $6.0 million of which $5.9 million was attributable to portfolio interest and dividend income, and $0.1 million was attributable to fee and other income.

Total net expenses were $5.0 million and total net investment income was $1.0 million.

The Company recorded a net realized loss of $1.1 million and a net unrealized loss of $0.5 million.

Portfolio and Investment Activities for the Quarter Ended March 31, 2025:

The fair value of the Company's investment portfolio totaled $286.8 million and consisted of 36 portfolio companies.

The Company had certain investments in 2 portfolio companies on non-accrual status with a fair market value of $1.4 million.

Liquidity and Capital Resources:

As of March 31, 2025, the Company had $8.7 million in cash and cash equivalents, $59.2 million in aggregate principal amount of its 5.25% unsecured notes due 2028 and $79.6 million outstanding under the Credit Facility (prior to its upsizing).

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 execute on its strategic initiatives, deliver value to shareholders, increase investment activity, increase net investment income, reduce interest expenses, implement its investment strategy and achieve its investment objective, source and capitalize on investment opportunities, grow its net asset value per share 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 
 
                                        March 31,     September 30, 
                                           2025            2024 
                                      -------------   ------------- 
                                       (Unaudited) 
Assets: 
Investments at fair value 
    Non-controlled, non-affiliated 
     investments (amortized cost of 
     $149,358,044 and $143,179,354 
     respectively)                    $ 150,403,826   $ 142,233,426 
    Affiliated investments 
     (amortized cost of $20,572,531 
     and $20,564,242, respectively)      13,777,521      14,750,785 
    Controlled investments 
     (amortized cost of $150,553,974 
     and $97,016,429, respectively)     122,661,590      70,931,647 
                                       ------------    ------------ 
Total Investments at fair value         286,842,937     227,915,858 
Cash and cash equivalents                 8,689,461      67,571,559 
Receivables: 
    Interest receivable                   1,060,559       1,313,598 
    Other receivable                         16,640          65,838 
    Dividends receivable                          -          23,468 
Deferred tax asset, net                     557,463         887,099 
Other assets                                435,617       1,066,323 
Deferred financing costs                    419,172         760,680 
Receivable for investments sold           2,328,555       2,955,775 
Due from Affiliate                          257,852          90,500 
Prepaid share repurchase                    101,115         101,115 
                                       ------------    ------------ 
    Total Assets                      $ 300,709,371   $ 302,751,813 
                                       ============    ============ 
 
Liabilities: 
Credit facility and notes payable 
 (net of debt issuance costs of 
 $1,326,546 and $1,510,815, 
 respectively)                        $ 137,434,952   $ 135,723,636 
Accounts payable and accrued 
 expenses                                 2,937,872       5,570,150 
Interest and fees payable                 1,078,676         768,043 
Other liabilities                           223,362         294,063 
Due to Affiliate                             46,995          88,148 
                                       ------------    ------------ 
    Total Liabilities                   141,721,857     142,444,040 
 
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 2,019,778 common 
     shares outstanding, 
     respectively                             2,020           2,020 
Capital in excess of par value          704,909,588     704,909,588 
Total distributable earnings (loss)    (545,924,094)   (544,603,835) 
                                       ------------    ------------ 
    Total Net Assets                    158,987,514     160,307,773 
                                       ------------    ------------ 
    Total Liabilities and Net Assets  $ 300,709,371   $ 302,751,813 
                                       ============    ============ 
 
Net Asset Value Per Common Share      $       78.72   $       79.37 
 
 
                            PHENIXFIN CORPORATION 
                     Consolidated Statements of Operations 
                                  (Unaudited) 
 
                        For the Three Months      For the Six Months Ended 
                           Ended March 31,                March 31, 
                      -------------------------   ------------------------- 
                         2025          2024          2025          2024 
                      -----------   -----------   -----------   ----------- 
Interest Income: 
Interest from 
investments 
Non-controlled, 
non-affiliated 
investments: 
      Cash            $ 2,957,380   $ 1,950,898   $ 5,950,065   $ 4,633,041 
      Payment 
       in-kind            263,784        90,530       618,465       181,204 
    Affiliated 
    investments: 
      Cash                      -       276,484             -       732,176 
    Controlled 
    investments: 
      Cash                626,790       294,028     1,214,985       580,266 
      Payment 
       in-kind                  -       118,864             -       268,831 
                       ----------    ----------    ----------    ---------- 
Total interest 
 income                 3,847,954     2,730,804     7,783,515     6,395,518 
Dividend income 
    Non-controlled, 
     non-affiliated 
     investments          378,232       669,359       974,530     1,797,891 
    Affiliated 
     investments          111,736             -       254,231             - 
    Controlled 

     investments        1,580,616       982,903     2,979,966     1,868,097 
                       ----------    ----------    ----------    ---------- 
Total dividend 
 income                 2,070,584     1,652,262     4,208,727     3,665,988 
Interest from cash 
 and cash 
 equivalents               45,812       199,266       104,753       240,374 
Fee income (see Note 
 9)                        29,673        76,517        40,737        78,625 
Other income               25,000             -        97,774            22 
                       ----------    ----------    ----------    ---------- 
Total Investment 
 Income                 6,019,023     4,658,849    12,235,506    10,380,527 
 
  Expenses: 
    Interest and 
     financing 
     expenses           2,578,963     1,567,352     5,124,774     3,109,413 
    Salaries and 
     benefits           1,185,054     1,524,508     2,213,671     2,949,500 
    Professional 
     fees, net            577,965       343,150       995,978       700,704 
    Directors fees        204,000       187,500       408,000       375,000 
    Administrator 
     expenses (see 
     Note 6)              112,829        57,550       197,184       135,402 
    Insurance 
     expenses              86,498        96,694       174,919       194,450 
    General and 
     administrative 
     expenses             307,739       310,776       529,532       635,837 
                       ----------    ----------    ----------    ---------- 
Total expenses          5,053,048     4,087,530     9,644,058     8,100,306 
                       ----------    ----------    ----------    ---------- 
Net Investment 
 Income                   965,975       571,319     2,591,448     2,280,221 
 
Realized and 
unrealized gains 
(losses) on 
investments 
Net realized gains 
(losses): 
    Non-controlled, 
     non-affiliated 
     investments       (1,065,013)      200,754       103,657       430,558 
    Affiliated 
     investments                -    (1,991,456)            -    (1,991,456) 
                       ----------    ----------    ----------    ---------- 
Total net realized 
 gains (losses)        (1,065,013)   (1,790,702)      103,657    (1,560,898) 
Net change in 
unrealized gains 
(losses): 
    Non-controlled, 
     non-affiliated 
     investments        1,183,172     1,796,767     1,991,710     3,161,010 
    Affiliated 
     investments          (92,367)    2,282,655      (981,553)    4,713,918 
    Controlled 
     investments       (1,558,264)    2,512,263    (1,807,602)    1,311,890 
                       ----------    ----------    ----------    ---------- 
Total net change in 
 unrealized gains 
 (losses)                (467,459)    6,591,685      (797,445)    9,186,818 
Deferred tax benefit 
 (expense), net          (329,636)            -      (329,636)            - 
                       ----------    ----------    ----------    ---------- 
Total realized and 
 unrealized gains 
 (losses)              (1,862,108)    4,800,983    (1,023,424)    7,625,920 
                       ----------    ----------    ----------    ---------- 
 
Net Increase 
 (Decrease) in Net 
 Assets Resulting 
 from Operations      $  (896,133)  $ 5,372,302   $ 1,568,024   $ 9,906,141 
                       ==========    ==========    ==========    ========== 
Weighted average 
 basic and diluted 
 earnings per common 
 share                $     (0.44)  $      2.62   $      0.78   $      4.81 
Weighted average 
 common shares 
 outstanding - basic 
 and diluted (see 
 Note 11)               2,019,778     2,048,622     2,019,778     2,060,723 
 

(END) Dow Jones Newswires

May 06, 2025 17:45 ET (21:45 GMT)