GlobeNewswire Inc | Dec 20, 2021 07:51AM EST

December 20, 2021

NEW YORK, Dec. 20, 2021 (GLOBE NEWSWIRE) -- 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 Kwiats 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 Companys 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.

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, 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 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

September30, September30, 2021 2020Assets: Investments at fair value Non-controlled, non-affiliatedinvestments (amortized cost of $ 84,152,678 $ 114,321,948 $92,214,167 and $117,360,954,respectively)Affiliated investments (amortizedcost of $75,963,427 and 57,595,245 84,873,023 $92,898,755, respectively)Controlled investments (amortizedcost of $39,490,097 and 9,891,860 47,548,578 $117,874,821, respectively)Total Investments at fair value 151,639,783 246,743,549 Cash and cash equivalents 69,433,256 56,522,148 Receivables: 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 Liabilities: Notes payable (net of debt issuancecosts of $412,795 and $905,624, $ 77,434,005 $ 150,960,662 respectively)Due to broker 1,586,000 - Accounts payable and accrued 1,416,524 2,108,225 expensesDue to affiliates 280,323 53,083 Administrator expenses payable 67,920 156,965 Management and incentive fees - 1,392,022 payableInterest 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 2,517 2,724 and 2,723,709 common sharesoutstanding, respectivelyCapital 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





PHENIXFIN CORPORATIONConsolidated Statements of Operations

For the Years Ended September 30 2021 2020 2019 Interest Income:Interest from investmentsNon-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 8,087,384 14,194,261 35,063,967 incomeDividend income 21,564,348 6,256,250 8,218,480 Interest fromcash and cash 10,402 378,077 712,017 equivalentsFee income 2,566,519 692,988 2,304,287 Other income 78,204 - - TotalInvestment 32,306,857 21,521,576 46,298,751 Income Expenses: Base management 1,146,403 6,358,750 11,189,646 feesInterest andfinancing 5,800,100 14,935,017 24,049,485 expensesGeneral andadministrative 1,012,147 3,285,259 7,398,534 expensesSalaries and 1,993,277 - - benefitsAdministrator 612,983 2,226,831 3,323,989 expensesInsurance 1,619,536 1,463,391 623,064 expensesDirectors fees 1,039,717 1,451,077 1,258,378 Professional 559,975 (4,768,050 ) 19,323,082 fees, netExpenses beforeexpense supportreimbursement 13,784,138 24,952,275 67,166,178 and managementand incentivefee waiversExpense support - (710,294 ) - reimbursementTotal expensesnet of expensesupportreimbursement 13,784,138 24,241,981 67,166,178 and managementand incentivefee waiversNet Investment 18,522,719 (2,720,405 ) (20,867,427 )Income Realized andunrealized gains (losses)on investmentsNet realized gains (losses):Non-controlled,non-affiliated 7,747,672 (9,973,416 ) (24,762,224 )investmentsAffiliated (10,088,405 ) (928,990 ) (7,670,970 )investmentsControlled (40,144,795 ) (39,076,425 ) (79,739,742 )investmentsTotal netrealized gains (42,485,528 ) (49,978,831 ) (112,172,936 )(losses)Net change inunrealized gains (losses):Non-controlled,non-affiliated (5,022,484 ) 9,898,237 20,727,499 investmentsAffiliated (10,342,450 ) 2,648,353 (6,864,255 )investmentsControlled 40,728,006 (23,178,993 ) 24,634,707 investmentsTotal netchange in 25,363,072 (10,632,403 ) 38,497,951 unrealizedgains (losses)Loss onextinguishment (122,355 ) (2,481,374 ) (2,032,655 )of debtTotal realizedand unrealized (17,244,811 ) (63,092,608 ) (75,707,640 )gains (losses) Net Increase(Decrease) inNet Assets $ 1,277,908 $ (65,813,013 ) $ (96,575,067 )Resulting fromOperations WeightedAverage Basicand diluted $ 0.48 $ (24.16 ) $ (35.46 )earnings percommon shareWeightedAverage Basicand diluted netinvestment $ 6.92 $ (1.00 ) $ (7.66 )income (loss)per commonshareWeightedAverage CommonShares 2,677,891 2,723,709 2,723,709 Outstanding -Basic andDilutedDividendsDeclared per $ - $ - $ 3.00 Common Share