Content Detail

• Content META

  Title	Great Elm Group Reports Fiscal 2025 First Quarter Financial Results
  ID	4407870
  External ID	7295472547
  Author	Unknown
  Published Date	Nov. 12, 2024, 10:35 a.m.
  Summary	Company to Host Conference Call at 8:30 a.m. ET on November 12, 2024 PALM BEACH GARDENS, Fla., Nov. 11, 2024 (GLOBE NEWSWIRE) -- Great Elm Group, Inc. (“we,” “our,” “GEG,” “Great Elm,” or “the Compan
  Tags	press-release
  URL	https://finance.yahoo.com/news/great-elm-group-reports-fiscal-211600246.html
  Sentiment	Negative: 0.03133    Neutral: 0.03628    Positive: 0.93239
  Relevance	0.04639

• Content Details

  Content ID	2625345
  Key	c62bcbd3-d5c6-4da5-8b0e-7dfe1c1319ed
  Content	Company to Host Conference Call at 8:30 a.m. ET on November 12, 2024 PALM BEACH GARDENS, Fla., Nov. 11, 2024 (GLOBE NEWSWIRE) -- Great Elm Group, Inc. (“we,” “our,” “GEG,” “Great Elm,” or “the Company”), (NASDAQ: GEG), an alternative asset manager, today announced financial results for its fiscal first quarter ended September 30, 2024. Fiscal First Quarter 2025 and Recent Highlights As of September 30, 2024, GEG had approximately $52 million 2 of cash and marketable securities on its balance sheet to support growth initiatives across its alternative asset management platform. Book value per share was $2.22 as of September 30, 2024. Through November 8, 2024, Great Elm has repurchased approximately 2.5 million shares for $4.6 million, an average price of $1.85 per share, through its share repurchase program. GEG’s Board of Directors authorized an additional $10 million of stock repurchases, doubling the size of the $10 million previously approved stock repurchase program. Adjusted EBITDA for the first quarter of was $1.3 million, compared to $1.7 million in the prior-year period. Net income in the quarter reflects the reversal of approximately $3.5 million in previously recorded unrealized losses related to the Company’s investments in special purpose vehicles (“SPVs”). Net income from continuing operations was $3.0 million for the first quarter, compared to $2.8 million in the prior-year period. Growth in revenue was primarily driven by the Monomoy BTS property sale and increased Great Elm Capital Corp. (“GECC”) management fees due to growth in FPAUM. Total revenue for the first quarter grew 21% to $4.0 million, compared to $3.3 million for the prior-year period. Pro forma FPAUM¹ and AUM¹ growth of 21% and 16%, respectively, compared to the prior year period. FPAUM and AUM growth of 24% and 22%, respectively, compared to the prior year period. GEG’s fee-paying assets under management (“FPAUM”) and assets under management (“AUM”) totaled approximately $559 million and $782 million, respectively. Management Commentary Jason Reese, Chief Executive Officer of the Company, stated, “We had a solid start to fiscal 2025, as we continued to expand our assets under management, grew our fee revenue through earned incentive fees from GECC and increased management fees across our credit and real estate businesses. Moreover, the Monomoy Build-to-Suit pipeline remains strong, and we continue to broaden our tenant relationships.” Story Continues “Additionally, as the Great Elm Credit Income Fund marks its first anniversary, our strong returns and now-established track record position us well to attract capital and further scale the platform. We also increased our stock repurchase capacity up to $20 million from $10 million initially, and utilized the program to repurchase shares at a meaningful discount to book value. Looking ahead, we remain focused on executing on our strategic priorities: growing our core credit and real estate platforms, pursuing compelling investment opportunities and leveraging our strong balance sheet to maximize shareholder value.” GEG Managed Vehicle Highlights GECC reported record total investment income in the quarter and was active in managing its capital structure. In July, GECC utilized its shelf to issue $22.0 million of 8.50% Notes due 2029 in a registered direct offering to an institutional investor. GECC issued $41.4 million of 8.125% Notes due 2029, utilizing the proceeds and cash on hand to redeem $45.3 million of notes scheduled to mature in January 2025, leaving no maturities until June 2026. GECC reported $11.7 million of total investment income, a record and the highest cash income in its history. Monomoy BTS and Monomoy REIT continued to execute on positive momentum from the prior quarter. Monomoy BTS completed construction of its first build-to-suit property in October 2024, following the property sale in June 2024, and ended the quarter with a strong pipeline in its Construction Management business. Monomoy REIT monetized approximately $7.1 million of real estate at a gain and enhanced its lease position. Great Elm Credit Income Fund (“GECIF”) delivered a strong return on invested capital of over 11%, net of fees, through September 30, 2024, since its inception in November 2023.3 Discussion of Financial Results for the Fiscal First Quarter Ended September 30, 2024 GEG reported total revenue of $4.0 million, up 21% from $3.3 million in the prior-year period. GEG recorded net income from continuing operations of $3.0 million, compared to $2.8 million in the prior year period. Net income in the quarter reflects the reversal of approximately $3.5 million in previously recorded unrealized losses related to the Company’s investments in SPVs, resulting in an aggregate net unrealized loss since inception of ($0.3) million on the Company’s investments in SPVs. GEG recorded Adjusted EBITDA of $1.3 million, compared to $1.7 million in the prior-year period. Stock Repurchase Program GEG’s Board of Directors approved an incremental stock repurchase program under which GEG is authorized to repurchase an additional $10 million in the aggregate of its outstanding common stock in the open market. This approval brings the total buyback authorization up to $20 million. As of November 8, 2024, the Company has repurchased approximately 2.5 million shares for $4.6 million under this program. Fiscal 2025 First Quarter Conference Call & Webcast Information When: Tuesday, November 12, 2024, 8:30 a.m. Eastern Time (ET) Call: All interested parties are invited to participate in the conference call by dialing +1 (877) 407-0752; international callers should dial +1 (201) 389-0912. Participants should enter the Conference ID 13746969 if asked. Webcast: The conference call will be webcast simultaneously and can be accessed here . A copy of the slide presentation accompanying the conference call, can be found here . About Great Elm Group, Inc. Great Elm Group, Inc. (NASDAQ: GEG) is a publicly-traded, alternative asset manager focused on growing a scalable and diversified portfolio of long-duration and permanent capital vehicles across credit, real estate, specialty finance, and other alternative strategies. Great Elm Group, Inc. and its subsidiaries currently manage Great Elm Capital Corp., a publicly-traded business development company, and Monomoy Properties REIT, LLC, an industrial-focused real estate investment trust, in addition to other investments. Great Elm Group, Inc.’s website can be found at www.greatelmgroup.com . Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995 Statements in this press release that are “forward-looking” statements, including statements regarding expected growth, profitability, acquisition opportunities and outlook involve risks and uncertainties that may individually or collectively impact the matters described herein. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made and represent Great Elm’s assumptions and expectations in light of currently available information. These statements involve risks, variables and uncertainties, and Great Elm’s actual performance results may differ from those projected, and any such differences may be material. For information on certain factors that could cause actual events or results to differ materially from Great Elm’s expectations, please see Great Elm’s filings with the Securities and Exchange Commission (“SEC”), including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Additional information relating to Great Elm’s financial position and results of operations is also contained in Great Elm’s annual and quarterly reports filed with the SEC and available for download at its website www.greatelmgroup.com or at the SEC website www.sec.gov . Non-GAAP Financial Measures The SEC has adopted rules to regulate the use in filings with the SEC, and in public disclosures, of financial measures that are not in accordance with US GAAP, such as adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). Adjusted EBITDA is derived from methodologies other than in accordance with US GAAP. Great Elm believes that Adjusted EBITDA is an important measure for investors to use in evaluating Great Elm’s businesses. In addition, Great Elm’s management reviews Adjusted EBITDA as they evaluate acquisition opportunities. Adjusted EBITDA has limitations as an analytical tool, and you should not consider it either in isolation from, or as a substitute for, analyzing Great Elm’s results as reported under US GAAP. Non-GAAP financial measures reported by Great Elm may not be comparable to similarly titled amounts reported by other companies. Included in the financial tables below is a reconciliation of Adjusted EBITDA to the most directly comparable US GAAP financial measure, net income from continuing operations. Endnotes 1 Pro forma FPAUM incorporates net proceeds from $5.4 million of GECC 8.125% Notes due 2029 issued in October as well as the redemption in October of $45.3 million of GECC 6.75% Notes due January 2025. 2 Cash and marketable securities include approximately $40 thousand of restricted cash. 3 Assumes invested at inception on November 1, 2023, and remained invested throughout the succeeding eleven months, net of fees and expenses. Performance results should not be regarded as final until audited financial statements are issued covering the period shown. Past performance is no guarantee of future results. This press release does not constitute an offer to sell or a solicitation of an offer to buy interests in any investment vehicle managed by Great Elm or its affiliates. Any such offer or solicitation will only be made pursuant to the applicable offering documents for such investment vehicle. Media & Investor Contact: Investor Relations geginvestorrelations@greatelmcap.com Great Elm Group, Inc. Condensed Consolidated Balance Sheets (unaudited) Dollar amounts in thousands (except per share data) ASSETS September 30, 2024 June 30, 2024 Current assets Cash and cash equivalents $ 44,150 $ 48,147 Restricted cash 40 1,571 Receivables from managed funds 3,854 2,259 Investments in marketable securities 7,460 9,929 Investments, at fair value 47,557 44,585 Prepaid and other current assets 1,439 1,215 Real estate under development 5,786 5,769 Assets of Consolidated Funds: Cash and cash equivalents 2,229 2,371 Investments, at fair value 11,909 11,471 Other assets 246 253 Total current assets 124,670 127,570 Identifiable intangible assets, net 10,773 11,037 Right-of-use assets 141 225 Other assets 1,682 1,614 Total assets $ 137,266 $ 140,446 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities Accounts payable $ 243 $ 317 Payable for securities purchased 24 - Accrued expenses and other current liabilities 3,117 7,009 Current portion of related party payables 224 634 Current portion of lease liabilities 64 137 Liabilities of Consolidated Funds: Payable for securities purchased - 100 Accrued expenses and other liabilities 172 162 Total current liabilities 3,844 8,359 Lease liabilities, net of current portion 35 57 Long-term debt (face value $26,945) 26,160 26,090 Related party payables, net of current portion - - Convertible notes (face value $35,494 and $35,494, including $16,174 and $16,174 held by related parties, respectively) 34,925 34,900 Other liabilities 718 845 Total liabilities 65,682 70,251 Commitments and contingencies Stockholders' equity Preferred stock, $0.001 par value; 5,000,000 authorized and zero outstanding - - Common stock, $0.001 par value; 350,000,000 shares authorized and 32,134,843 shares issued and 28,743,290 outstanding at September 30, 2024; and 31,875,285 shares issued and 30,494,448 outstanding at June 30, 2024 28 30 Additional paid-in-capital 3,314,191 3,315,638 Accumulated deficit (3,250,315 ) (3,252,954 ) Total Great Elm Group, Inc. stockholders' equity 63,904 62,714 Non-controlling interests 7,680 7,481 Total stockholders' equity 71,584 70,195 Total liabilities and stockholders' equity $ 137,266 $ 140,446 Great Elm Group, Inc. Condensed Consolidated Statements of Operations (unaudited) Amounts in thousands (except per share data) For the three months ended September 30, 2024 2023 Revenues $ 3,992 $ 3,310 Cost of revenues 635 - Operating costs and expenses: Investment management expenses 3,058 2,762 Depreciation and amortization 273 283 Selling, general and administrative 2,006 1,715 Expenses of Consolidated Funds 16 - Total operating costs and expenses 5,353 4,760 Operating loss (1,996 ) (1,450 ) Dividends and interest income 1,558 1,986 Net realized and unrealized gain 3,778 3,284 Net realized and unrealized gain on investments of Consolidated Funds 278 - Interest and other income of Consolidated Funds 384 - Interest expense (1,028 ) (1,062 ) Income before income taxes from continuing operations 2,974 2,758 Income tax benefit (expense) - - Net income from continuing operations 2,974 2,758 Discontinued operations: Net income from discontinued operations - 16 Net income $ 2,974 $ 2,774 Less: net income attributable to non-controlling interest, continuing operations 335 - Net income attributable to Great Elm Group, Inc. $ 2,639 $ 2,774 Net income attributable to shareholders per share Basic $ 0.09 $ 0.09 Diluted 0.08 0.08 Weighted average shares outstanding Basic 29,079 29,579 Diluted 40,469 41,860 Great Elm Group, Inc. Reconciliation from Net Income from Continuing Operations to Adjusted EBITDA Dollar amounts in thousands Three months ended September 30, (in thousands) 2024 2023 Net income from continuing operations - GAAP $ 2,974 $ 2,758 Interest expense 1,028 1,062 Income tax expense (benefit) - - Depreciation and amortization 273 283 Non-cash compensation 1,117 887 Gain on investments (4,056 ) (3,284 ) Change in contingent consideration (6 ) 18 Adjusted EBITDA(1) $ 1,330 $ 1,724 (1) Adjusted EBITDA for prior periods has been adjusted to include dividend income earned during such periods consistent with the methodology for September 30, 2024.
  Content Reference URL	None

• Publisher

  Publisher Name	Yahoo! News US (#5600)
  Publisher URL	https://www.yahoo.com
  Description	None
  Trust Flow Score	93
  Citation Flow Score	70

• Data Source

  Data Source Name	Quantexa News (#5)
  Data Source Type	news
  Data Source URL	https://app.aylien.com/dashboard
  Description	Welcome to Quantexa News API — the most powerful way to aggregate, filter, and integrate global news data into your apps and models.
  Weight	10