PhenixFIN Corporation
05/12/2021 | Press release | Distributed by Public on 05/12/2021 19:35
PhenixFIN Corporation Announces Second Quarter 2021 Financial Results
NEW YORK, May 12, 2021 (GLOBE NEWSWIRE) -- PhenixFIN Corporation (NASDAQ: PFX) (the 'Company'), a publicly traded business development company, today announced its financial results for the fiscal second quarter of 2021.
Second Quarter 2021 Highlights
- Total investment income of $6.5 million; net investment income of $3.7 million
- $59.1 million in cash on March 31, 2021
-
Net asset value of $151.2 million, or $55.91 per share as of March 31, 2021 vs. $55.30 per share as of September 30, 2020
The quarter ended March 31, 2021 represented the first quarter of operations under the Company's new internalized management structure.
David Lorber, Chief Executive Officer of the Company, stated: 'We are pleased with the smooth transition to an internally-managed company and with our performance during the quarter. We are generally encouraged by potential opportunities to enhance value within the legacy portfolio and deploy capital, as we look to achieve our investment objective of generating current income and capital appreciation. In addition, we continue to realize efficiencies in operating under our internalized management structure.'
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, 19,773 shares were repurchased through March 31, 2021. In aggregate through May 11, 2021 43,988 shares have been repurchased at an average price of $32.52/share.
Second Quarter 2021 Financial Results
For the quarter ended March 31, 2021, investment income totaled $6.4 million, of which $6.1 million was attributable to portfolio interest and dividend income, $0.2 million was attributable to fee income, and $0.1 million was attributable to other income.
For the quarter ended March 31, 2020, investment income totaled $5.3 million, of which $5.2 million was attributable to portfolio interest and dividend income, and $0.1 million to fee income.
For the quarter ended March 31, 2021, total net expenses were $2.8 million and for the quarter ended March 31, 2020, total net expenses were $9.5 million.
For the quarter ended March 31, 2021, the Company recorded a net realized gain of $0.2 million and net unrealized appreciation of $3.9 million. For the quarter ended March 31, 2020, the Company recorded a net realized loss of $(0.1) million and net unrealized depreciation of $(73.6) million.
Portfolio and Investment Activities
As of March 31, 2021, the fair value of the Company's investment portfolio totaled $168.2 million and consisted of 38 portfolio companies.
As of March 31, 2021, the Company had 10 portfolio company investments on non-accrual status with a fair market value of $16.7 million.
Liquidity and Capital Resources
At March 31, 2021, the Company had $59.1 million in cash and $77.3 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 continue to realize efficiencies, 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].
PHENIXFIN CORPORATION
Consolidated Statements of Assets and Liabilities
|
March 31, 2021 (Unaudited) |
September 30, 2020 |
|||||||
| Assets: | ||||||||
| Investments at fair value | ||||||||
| Non-controlled, non-affiliated investments (amortized cost of $95,301,443 and $117,360,954, respectively) | $ | 93,283,110 | $ | 114,321,948 | ||||
| Affiliated investments (amortized cost of $79,845,752 and $92,898,755, respectively) | 68,233,836 | 84,873,023 | ||||||
| Controlled investments (amortized cost of $38,487,321 and $117,874,821, respectively) | 6,727,597 | 47,548,578 | ||||||
| Total Investments at fair value | 168,244,543 | 246,743,549 | ||||||
| Cash and cash equivalents | 59,092,731 | 56,522,148 | ||||||
| Receivables: | ||||||||
| Interest receivable | 299,655 | 624,524 | ||||||
| Fees receivable | 106,528 | 119,028 | ||||||
| Other receivable | 398,551 | - | ||||||
| Prepaid share repurchases | 164,258 | - | ||||||
| Other assets | 1,210,724 | 2,093,559 | ||||||
| Total Assets | $ | 229,516,990 | $ | 306,102,808 | ||||
| Liabilities: | ||||||||
| Notes payable (net of debt issuance costs of $551,142 and $905,624, respectively) | $ | 77,295,658 | $ | 150,960,662 | ||||
| Interest and fees payable | - | 801,805 | ||||||
| Due to affiliates | - | 53,083 | ||||||
| Management and incentive fees payable | - | 1,392,022 | ||||||
| Administrator expenses payable | 94,958 | 156,965 | ||||||
| Accounts payable and accrued expenses | 918,279 | 2,108,225 | ||||||
| Deferred revenue | 30,970 | 10,529 | ||||||
| Total Liabilities | 78,339,865 | 155,483,291 | ||||||
| Commitments and Contingencies | ||||||||
| Net Assets: | ||||||||
| Common Shares, $0.001 par value; 5,000,000 shares authorized; 2,703,936 and 2,723,709 common shares issued and outstanding, respectively | 2,704 | 2,724 | ||||||
| Capital in excess of par value | 671,589,690 | 672,381,617 | ||||||
| Total distributable earnings/(loss) | (520,415,269 | ) | (521,764,824 | ) | ||||
| Total Net Assets | $ | 151,177,125 | $ | 150,619,517 | ||||
| Total Liabilities and Net Assets | $ | 229,516,990 | $ | 306,102,808 | ||||
| Net Asset Value Per Common Share | $ | 55.91 | $ | 55.30 |
PHENIXFIN CORPORATION
Consolidated Statements of Operations
(Unaudited)
|
For the Three Months Ended March 31 |
For the Six Months Ended March 31 |
|||||||||||||||
| 2021 | 2020 | 2021 | 2020 | |||||||||||||
| Interest Income: | ||||||||||||||||
| Interest from investments | ||||||||||||||||
| Non-controlled, non-affiliated investments: | ||||||||||||||||
| Cash | $ | 1,534,904 | 2,320,453 | $ | 3,206,717 | 5,538,162 | ||||||||||
| Payment in-kind | - | 128,309 | 170,029 | 327,321 | ||||||||||||
| Affiliated investments: | ||||||||||||||||
| Cash | 196,328 | 190,193 | 548,619 | 399,441 | ||||||||||||
| Payment in-kind | - | 706,789 | - | 1,654,262 | ||||||||||||
| Controlled investments: | ||||||||||||||||
| Cash | (1,190 | ) | 1,297 | - | 84,505 | |||||||||||
| Payment in-kind | - | 5,385 | - | 500,767 | ||||||||||||
| Total interest income | 1,730,042 | 3,352,426 | 3,925,365 | 8,504,458 | ||||||||||||
| Dividend income | 4,408,234 | 1,662,500 | 14,671,735 | 3,500,000 | ||||||||||||
| Interest from cash and cash equivalents | 506 | 154,290 | 1,446 | 372,428 | ||||||||||||
| Fee income | 237,416 | 131,992 | 578,880 | 415,532 | ||||||||||||
| Other income | 78,204 | - | 78,204 | - | ||||||||||||
| Total Investment Income | 6,454,402 | 5,301,208 | 19,255,630 | 12,792,418 | ||||||||||||
| Expenses: | ||||||||||||||||
| Base management fees | - | 1,641,271 | 1,146,403 | 3,649,505 | ||||||||||||
| Interest and financing expenses | 1,260,054 | 4,432,118 | 3,277,695 | 9,576,047 | ||||||||||||
| General and administrative expenses | 104,440 | 2,083,397 | 466,049 | 2,600,239 | ||||||||||||
| Salaries and Benefits | 332,317 | - | 332,317 | - | ||||||||||||
| Administrator expenses | (44,618 | ) | 576,362 | 439,794 | 1,127,884 | |||||||||||
| Insurance expenses | 474,468 | 356,580 | 959,480 | 654,578 | ||||||||||||
| Directors fees | 220,500 | 296,500 | 696,217 | 612,500 | ||||||||||||
| Professional fees, net | 420,220 | 130,630 | (79,077 | ) | (4,285,445 | ) | ||||||||||
| Total expenses net of expense support reimbursement and management and incentive fee waivers | 2,767,381 | 9,516,858 | 7,238,878 | 13,935,308 | ||||||||||||
| Net Investment Income | 3,687,021 | (4,215,650 | ) | 12,016,752 | (1,142,890 | ) | ||||||||||
| Realized and unrealized gains (losses) on investments | ||||||||||||||||
| Net realized gains (losses): | ||||||||||||||||
| Non-controlled, non-affiliated investments | 160,926 | (100,115 | ) | 4,054,648 | (157,914 | ) | ||||||||||
| Affiliated investments | - | - | (10,452,928 | ) | - | |||||||||||
| Controlled investments | - | - | (40,147,570 | ) | (1,686,837 | ) | ||||||||||
| Total net realized gains (losses) | 160,926 | (100,115 | ) | (46,545,850 | ) | (1,844,751 | ) | |||||||||
| Net change in unrealized gains (losses): | ||||||||||||||||
| Non-controlled, non-affiliated investments | 5,077,737 | (19,549,944 | ) | 1,020,673 | (15,802,570 | ) | ||||||||||
| Affiliated investments | (1,467,862 | ) | (15,019,332 | ) | (3,586,184 | ) | (5,578,733 | ) | ||||||||
| Controlled investments | 329,584 | (38,994,357 | ) | 38,566,519 | (48,451,471 | ) | ||||||||||
| Total net change in unrealized gains (losses) | 3,939,459 | (73,563,633 | ) | 36,001,008 | (69,832,774 | ) | ||||||||||
| Change in provision for deferred taxes on unrealized (appreciation)/ depreciation on investments | - | (85,664 | ) | - | (85,664 | ) | ||||||||||
| Loss on extinguishment of debt | - | (895,033 | ) | (122,355 | ) | (1,784,183 | ) | |||||||||
| Total realized and unrealized gains (losses) | 4,100,385 | (74,644,445 | ) | (10,667,197 | ) | (73,547,372 | ) | |||||||||
| Net Increase (Decrease) in Net Assets Resulting from Operations | $ | 7,787,406 | $ | (78,860,095 | ) | $ | 1,349,555 | $ | (74,690,262 | ) | ||||||
| Weighted Average Basic and diluted earnings per common share | $ | 2.87 | $ | (28.95 | ) | $ | 0.50 | $ | (27.42 | ) | ||||||
| Weighted Average Basic and diluted net investment income (loss) per common share | $ | 1.36 | $ | (1.55 | ) | $ | 4.42 | $ | (0.42 | ) | ||||||
| Weighted Average Common Shares Outstanding - Basic and Diluted | 2,716,627 | 2,723,711 | (1) | 2,720,226 | 2,723,711 | (1) |
| (1) | Basic and diluted shares has been adjusted for 2020 to reflect the one-for-twenty reverse stock split effected on July 24, 2020 on a retroactive basis. |
PhenixFIN Corporation