EX-99.1 2 ea024054101ex99-1_phenixfin.htm PRESS RELEASE DATED MAY 6, 2025

Exhibit 99.1

 

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, NY, May 5, 2025 -- 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 17th 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.

 

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PHENIXFIN CORPORATION

Consolidated Statements of Assets and Liabilities

 

   March 31,
2025
   September 30,
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 

 

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PHENIXFIN CORPORATION

Consolidated Statements of Operations

(Unaudited)

 

   For the Three Months
Ended March 31,
   For the Six Months Ended
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 

 

 

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