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PhenixFIN Corp (PFX)·Q3 2024 Earnings Summary

Executive Summary

  • Fiscal Q3 2024 was solid operationally: Total investment income (TII) increased sequentially and year over year, net investment income (NII) rose, and NAV per share remained at $76.35 with portfolio fair value growth and higher weighted average yield; management characterized the quarter as “strong.”
  • No formal guidance was provided; however, the credit facility was upsized to $87.5M on August 5, 2024, enhancing funding flexibility, and a $1.31 special dividend (declared May 9) was paid June 10.
  • Results vs estimates: S&P Global consensus was unavailable for this quarter; we could not retrieve Street EPS/Revenue figures for comparison.
  • Potential stock-reaction catalysts: facility expansion, sustained high portfolio yield, continued NAV per share strength, and realization activity (e.g., gains tied to the sale of Kemmerer Holdings, LLC).

What Went Well and What Went Wrong

What Went Well

  • Sequential and year-over-year growth in total investment income: TII was $6.23M in Q3 vs $4.66M in Q2 and $4.84M in Q3’23, reflecting stronger earning assets and higher portfolio yield.
  • Management tone positive on credit quality and yield: “strong quarter with increased investment activity, continued strong credit fundamentals, and a robust weighted average yield” (13.8%).
  • Balance sheet flexibility improved: credit facility upsized to $87.5M (from $62.5M in Q2) to support portfolio growth and liquidity.

What Went Wrong

  • Cash declined to $8.9M at quarter-end (from $19.1M in Q2), narrowing immediate on-balance-sheet liquidity even as borrowing capacity expanded.
  • Realized/unrealized gains moderated sharply vs Q2: $0.63M in Q3 vs $4.80M in Q2, reducing total earnings leverage to market marks this quarter.
  • No explicit update on non-accruals this quarter (Q1 cited four investments on non-accrual, FMV $8.9M), leaving limited transparency into current problem credits.

Financial Results

Quarterly comparisons (oldest → newest):

MetricQ1 FY2024 (Dec 31, 2023)Q2 FY2024 (Mar 31, 2024)Q3 FY2024 (Jun 30, 2024)
Total Investment Income ($M)$5.72 $4.66 $6.23
Total Expenses ($M)$4.01 $4.09 $4.25
Net Investment Income ($M)$1.71 $0.57 $1.98
Realized & Unrealized Gains (Losses) ($M)$2.82 $4.80 $0.63
Net Increase in Net Assets from Operations ($M)$4.53 $5.37 $2.61
EPS (basic & diluted) ($)$2.19 $2.62 $1.29
Weighted Avg Shares (MM)2.073 2.049 2.020
NAV per Share at Period End ($)$73.14 $76.35 $76.35
Total Net Assets ($M)$150.70 $154.27 $154.20

Year-over-year snapshot (Q3 FY2023 vs Q3 FY2024):

MetricQ3 FY2023 (Jun 30, 2023)Q3 FY2024 (Jun 30, 2024)
Total Investment Income ($M)$4.84 $6.23
Total Expenses ($M)$3.62 $4.25
Net Investment Income ($M)$1.22 $1.98
EPS (basic & diluted) ($)$4.26 $1.29

KPIs and balance sheet (oldest → newest):

KPIQ1 FY2024Q2 FY2024Q3 FY2024
Weighted Avg Yield on Income-Producing Investments (%)13.0% 13.6% 13.8%
Portfolio Fair Value ($M)$222.2 $220.0 $233.7
Portfolio Companies (Count)39 41 43
Cash & Cash Equivalents ($M)$12.2 $19.1 $8.9
5.25% Notes Outstanding ($M)$57.5 $57.5 $59.1
Credit Facility Outstanding ($M)$28.4 $28.4 $27.6
Credit Facility Size ($M)—$62.5 $87.5
Special Dividend Declared ($/sh)—$1.31 (declared May 9) $1.31 (paid Jun 10)

Notes:

  • Q3 realized/unrealized gains were driven by the sale of Kemmerer Holdings, LLC.
  • Q1 noted 4 non-accrual investments (FMV $8.9M); no update provided in Q2/Q3 releases.

Guidance Changes

MetricPeriodPrevious GuidanceCurrent GuidanceChange
————The company did not provide formal quantitative guidance this quarter.

Earnings Call Themes & Trends

No Q3 FY2024 earnings call transcript was available; we track themes across company communications.

TopicPrevious Mentions (Q1 FY2024 & Q2 FY2024)Current Period (Q3 FY2024)Trend
NAV per share growthQ1: $73.14 (+23% vs 1Q23) ; Q2: $76.35 (+22% last 12 months) $76.35; “NAV per share grew 14% in last 12 months (incl. special dividend)” Stable to positive
Portfolio yield13.0% (Q1) → 13.6% (Q2) 13.8% (Q3) Modestly rising
Capital allocationQ2: 40,000 shares repurchased; facility to $62.5M; special dividend declared Facility increased to $87.5M; special dividend paid Increasing flexibility
Credit qualityQ1: 4 non-accruals (FMV $8.9M) “continued strong credit fundamentals” (qualitative) Stable per mgmt commentary
LiquidityCash $12.2M (Q1) → $19.1M (Q2) $8.9M (Q3), with larger facility capacity Lower cash, higher revolver capacity

Management Commentary

  • “We had a strong quarter with increased investment activity, continued strong credit fundamentals, and a robust weighted average yield for income producing investments.” — CEO David Lorber (Q3 release)
  • “Our flexible capital solutions continue to provide opportunities for our portfolio companies while we diligently seek to grow our investment portfolio... well-positioned to grow our NAV per share.” — CEO David Lorber (Q3 release)
  • “We continue to be pleased with our progress in growing our NAV per share... We are also excited for potential future investments that should provide additional growth opportunities.” — CEO David Lorber (Q2 release)

Q&A Highlights

No earnings call transcript was identified for Q3 FY2024; therefore, Q&A highlights and tone checks are not available. [Moomoo listing indicates earnings dates but no transcript; company IR site shows press releases only: https://www.phenixfc.com/press-releases]

Estimates Context

  • S&P Global (Capital IQ) consensus for Q3 FY2024 (EPS and revenue/total investment income) was unavailable during this session; we were unable to retrieve estimates to benchmark reported results versus Street.
  • Given limited published consensus and coverage for PFX, investors should anchor on sequential and year-over-year trajectories from primary filings/press releases this quarter.

Key Takeaways for Investors

  • Sequential acceleration: TII rose to $6.23M from $4.66M in Q2, lifting NII to $1.98M from $0.57M as the weighted average yield edged up to 13.8%.
  • Realization cadence normalized: Realized/unrealized gains were $0.63M vs $4.80M in Q2, tempering total earnings this quarter but reflecting specific asset sales (Kemmerer) rather than broad portfolio headwinds.
  • Balance sheet capacity up: Facility expanded to $87.5M post-quarter, with cash of $8.9M and $27.6M drawn—supporting incremental originations without equity dilution.
  • NAV resilience: NAV per share held at $76.35 while portfolio fair value increased to $233.7M and company count rose to 43, indicating growth alongside stable NAV/share.
  • Income distribution: A $1.31 special dividend was declared in Q2 and paid in Q3, highlighting distributable income capacity; monitor sustainability as marks and income normalize.
  • Watch liquidity mix and costs: Cash declined q/q; continued reliance on the revolver and notes means interest and financing expenses remain a watch item in a high-rate environment.
  • Absence of formal guidance and limited consensus: Trading may key off sequential NII trends, portfolio yield, credit quality commentary, and further realizations rather than explicit targets.

Appendix: Source Documents Reviewed

  • Q3 FY2024 press release and 8-K: financials, KPIs, and management commentary.
  • Q2 FY2024 8-K and press release: sequential comps, facility changes, special dividend declaration.
  • Q1 FY2024 8-K and press release: baseline comps, non-accrual disclosure, yield.