EX-99.1 2 ea152662ex99-1_phenixfincorp.htm PRESS RELEASE DATED DECEMBER 20, 2021

Exhibit 99.1


PhenixFIN Corporation Announces September 30, 2021 Financial Results


New York, NY, December 20, 2021 -- 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 of 5.25% 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 $490 million. “We are focused on implementing strategies seeking to increase our NAV and optimize the value of our tax attributes,” added Mr. Lorber.


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, 206,488 shares were repurchased through September 30, 2021 at a weighted average share price of $39.73/share.





Selected Fourth Quarter 2021 Financial Results


For the quarter ended September 30, 2021, investment income totaled $4.4 million, of which $2.4 million was attributable to portfolio interest and dividend income and $1.9 million was attributable to fee income.


For the quarter ended September 30, 2021, total net expenses were $3.3 million and total net investment income was $1.1 million


For the quarter ended September 30, 2021, the Company recorded a net realized gain of $4.0 million and net change in unrealized depreciation of $12.1 million.


Portfolio and Investment Activities


As of September 30, 2021, the fair value of the Company’s investment portfolio totaled $151.6 million and consisted of 42 portfolio companies.


As of September 30, 2021, the Company had 9 portfolio company investments on non-accrual status with a fair market value of $13.9 million.


Liquidity and Capital Resources


At September 30, 2021, the Company had $69.4 million in cash and $77.8 million outstanding in aggregate principal amount of 6.125% unsecured notes due 2023.




 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.





Consolidated Statements of Assets and Liabilities


   September 30,
   September 30,
Investments at fair value        
Non-controlled, non-affiliated investments (amortized cost of $92,214,167 and $117,360,954, respectively)  $84,152,678   $114,321,948 
Affiliated investments (amortized cost of $75,963,427 and $92,898,755, respectively)   57,595,245    84,873,023 
Controlled investments (amortized cost of $39,490,097 and $117,874,821, respectively)   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 
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 
Notes payable (net of debt issuance costs of $412,795 and $905,624, respectively)  $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, $0.001 par value; 5,000,000 shares authorized; 2,723,709 shares issued; 2,517,221 and 2,723,709 common shares outstanding, respectively   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 





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 
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