GlobeNewswire Inc | Aug 11, 2021 04:48PM EDT

August 11, 2021

NEW YORK, Aug. 11, 2021 (GLOBE NEWSWIRE) -- PhenixFIN Corporation (NASDAQ: PFX) (the "Company"), a publicly traded business development company, today announced its financial results for the fiscal third quarter of 2021.

Third Quarter 2021 Highlights

-- Total investment income of $8.7 million; net investment income of $5.4 million -- $52.9 million in cash on June 30, 2021 -- Net asset value of $156.7 million, or $58.49 per share as of June 30, 2021 vs. $55.30 per share as of September 30, 2020

David Lorber, Chief Executive Officer of the Company, stated: We are pleased with our performance during the first two quarters of being an internally-managed company. We are encouraged by the improvement in NAV and potential opportunities to deploy capital.

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, 44,788 shares were repurchased through June 30, 2021. In aggregate through August 10, 2021 64,788 shares have been repurchased at an average price of $32.74/share.

Third Quarter 2021 Financial Results

For the quarter ended June 30, 2021, investment income totaled $8.7 million, of which $8.6 million was attributable to portfolio interest and dividend income and $0.1 million was attributable to fee income.

For the quarter ended June 30, 2020, investment income totaled $4.3 million, of which $4.1 million was attributable to portfolio interest and dividend income, and $0.2 million to fee income.

For the quarter ended June 30, 2021, total net expenses were $3.3 million and for the quarter ended June 30, 2020, total net expenses were $5.4 million.

For the quarter ended June 30, 2021, the Company recorded a net realized gain of $0.1 million and net unrealized appreciation of $1.5 million. For the quarter ended June 30, 2020, the Company recorded a net realized loss of $(37.9) million and net unrealized appreciation of $46.9 million.

Portfolio and Investment Activities

As of June 30, 2021, the fair value of the Company's investment portfolio totaled $181.6 million and consisted of 42 portfolio companies.

As of June 30, 2021, the Company had 10 portfolio company investments on non-accrual status with a fair market value of $13.6 million.

Liquidity and Capital Resources

At June 30, 2021, the Company had $52.9 million in cash and $77.8 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, PhenixFINs ability to deliver value to shareholders, implement its investment objective, capitalize on investment opportunities and perform well and operate effectively under an internalized management structure, and other factors that are enumerated in the Companys 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 Corporations common stock. There can be no assurance that PhenixFIN Corporation will achieve its investment objective.

ForPhenixFINinvestor relations, please call 212-859-0390. For media inquiries, please contactinfo@phenixfc.com.

PHENIXFIN CORPORATION Consolidated Statements of Assets and Liabilities

June30, September30, 2021 2020 (Unaudited)Assets: Investments at fair value Non-controlled, non-affiliatedinvestments (amortized cost of $ 105,407,064 $ 114,321,948 $109,219,571 and $117,360,954,respectively)Affiliated investments (amortizedcost of $78,821,547 and 68,722,983 84,873,023 $92,898,755, respectively)Controlled investments (amortizedcost of $37,489,171 and 7,488,473 47,548,578 $117,874,821, respectively)Total Investments at fair value 181,618,520 246,743,549 Cash and cash equivalents 52,864,911 56,522,148 Receivables: Interest receivable 289,832 624,524 Fees receivable 106,528 119,028 Dividends receivable 66,445 - Other assets 1,003,437 2,093,559 Total Assets $ 235,949,673 $ 306,102,808 Liabilities: Notes payable (net of debt issuancecosts of $482,346 and $905,624, $ 77,364,454 $ 150,960,662 respectively)Interest and fees payable - 801,805 Due to affiliate - 53,083 Due to broker 284,067 - Management and incentive fees - 1,392,022 payableAdministrator expenses payable 60,685 156,965 Accounts payable and accrued 1,547,888 2,108,225 expensesDeferred revenue 14,003 10,529 Total Liabilities 79,271,097 155,483,291 Commitments and Contingencies Net Assets: Common Shares, $0.001 par value;5,000,000 shares authorized;2,723,709 shares issued; 2,678,921 2,679 2,724 and 2,723,709 common sharesoutstanding, respectivelyCapital in excess of par value 670,122,430 672,381,617 Total distributable earnings (loss) (513,446,533 ) (521,764,824 )Total Net Assets $ 156,678,576 $ 150,619,517 Total Liabilities and Net Assets $ 235,949,673 $ 306,102,808 Net Asset Value Per Common Share $ 58.49 $ 55.30

PHENIXFIN CORPORATIONConsolidated Statements of Operations(Unaudited)

For the Three Months Ended For the Nine Months Ended June30 June30 2021 2020 2021 2020 Interest Income:Interest from investmentsNon-controlled,non-affiliated investments:Cash $ 1,578,657 1,961,009 $ 4,785,374 7,499,171 Payment in-kind 186,733 138,018 356,762 465,339 Affiliated investments:Cash 249,157 291,569 797,776 691,010 Payment in-kind 286,444 487,065 286,444 2,141,327 Controlled investments:Cash - - - 84,505 Payment in-kind - - - 500,767 Total interest 2,300,991 2,877,661 6,226,356 11,382,119 incomeDividend income 6,307,408 1,225,000 20,979,143 4,725,000 Interest fromcash and cash 3,862 4,319 5,308 376,747 equivalentsFee income 71,443 202,122 650,323 617,654 Other income - - 78,204 - TotalInvestment 8,683,704 4,309,102 27,939,334 17,101,520 IncomeExpenses: Base management - 1,317,223 1,146,403 4,966,728 feesInterest andfinancing 1,260,825 2,736,136 4,538,520 12,312,183 expensesGeneral andadministrative 294,022 540,066 856,396 3,140,305 expensesSalaries and 679,229 - 1,011,546 - BenefitsAdministrator 106,578 614,535 546,372 1,742,419 expensesInsurance 444,832 333,816 1,404,312 988,394 expensesDirectors fees 179,000 347,500 875,217 960,000 Professional 289,200 (511,519 ) 113,797 (4,796,964 )fees, netExpenses beforeexpense supportreimbursement 3,253,686 5,377,757 10,492,563 19,313,065 and managementand incentivefee waiversExpense support - (349,427 ) - (349,427 )reimbursementTotal expensesnet of expensesupportreimbursement 3,253,686 5,028,330 10,492,563 18,963,638 and managementand incentivefee waiversNet Investment 5,430,018 (719,228 ) 17,446,771 (1,862,118 )IncomeRealized andunrealized gains (losses)on investmentsNet realized gains (losses):Non-controlled,non-affiliated 38,852 (532,253 ) 4,093,500 (690,167 )investmentsAffiliated 19,811 - (10,433,117 ) - investmentsControlled 1,850 (37,389,588 ) (40,145,720 ) (39,076,425 )investmentsTotal netrealized gains 60,513 (37,921,841 ) (46,485,337 ) (39,766,592 )(losses)Net change inunrealized gains (losses):Non-controlled,non-affiliated (1,794,173 ) 7,379,695 (773,501 ) (8,422,875 )investmentsAffiliated 1,513,353 8,137,213 (2,072,831 ) 2,558,480 investmentsControlled 1,759,025 31,389,160 40,325,544 (17,062,311 )investmentsTotal netchange in 1,478,205 46,906,068 37,479,212 (22,926,706 )unrealizedgains (losses)Change inprovision fordeferred taxeson unrealized - 35,970 - (49,694 )(appreciation)depreciation oninvestmentsLoss onextinguishment - (697,191 ) (122,355 ) (2,481,374 )of debtTotal realizedand unrealized 1,538,718 8,323,006 (9,128,480 ) (65,224,366 )gains (losses)Net Increase(Decrease) inNet Assets $ 6,968,736 $ 7,603,778 $ 8,318,291 $ (67,086,484 )Resulting fromOperationsWeightedAverage Basicand diluted $ 2.60 $ 2.79 $ 3.07 $ (24.63 )earnings percommon shareWeightedAverage Basicand diluted netinvestment $ 2.02 $ (0.26 ) $ 6.44 $ (0.68 )income (loss)per commonshareWeightedAverage CommonShares 2,683,093 2,723,711 2,707,794 2,723,711 Outstanding -Basic andDiluted