Business
Great Elm Group Reports Fiscal 2023 First Quarter Financial Results
Company to Host Conference Call at 9:00 a.m. ET on November 15, 2022 WALTHAM, Mass., Nov. 14, 2022 (GLOBE NEWSWIRE) -- Great Elm Group, Inc. (“we,” “us,”
About this update from Great Elm Capital Corp.
[{"type":"text","content":"Company to Host Conference Call at 9:00 a.m. ET on November 15, 2022\nWALTHAM, Mass., Nov. 14, 2022 (GLOBE NEWSWIRE) -- Great Elm Group, Inc. (“we,” “us,” “our,” “GEG,” or “Great Elm”), (NASDAQ: GEG), a diversified holding company, today announced financial results for its fiscal first quarter ended September 30, 2022. Fiscal 2023 First Quarter Operating and Financial Highlights(All comparisons versus the prior-year period unless otherwise noted) Consolidated: Consolidated revenue for the first quarter was $18.6 million, up 12% compared to $16.5 million in the prior-year period.On a consolidated basis, GEG recognized a net loss of $8.5 million for the first quarter, compared to net income of $0.1 million for the same period in the prior year. The variance was primarily a function of higher losses on investments in shares of Great Elm Capital Corp. (“GECC”), as well as the absence of benefits related to government stimulus recognized in the prior-year period.Consolidated Adjusted EBITDA for the first quarter ended September 30, 2022 was $2.7 million, compared to $4.3 million in the prior-year period. Removing the government stimulus recognized in the prior year, Consolidated Adjusted EBITDA increased by $0.8 million, or more than 45% compared to the prior-year period, primarily driven by top-line revenue growth.As of June 30, 2022, we had approximately $821 million of net operating loss (NOL) carryforwards for federal income tax purposes. Investment Management (IM): IM grew total revenue for the first quarter by 89% to $1.9 million, compared to $1.0 million for the same period in the prior year, primarily attributable to the acquisition of the management agreement for Monomoy Properties REIT, LLC and its subsidiaries (collectively, “Monomoy REIT”).IM reported a net loss for the first quarter of $6.0 million, compared to a net loss of $0.1 million in the prior-year-period, with the variance primarily a function of higher realized and unrealized losses on GECC shares.IM recognized Adjusted EBITDA of $0.3 million for the first quarter, compared to $0.1 million in the same period in the prior fiscal year.IM assets under management totaled $623.9 million as of September 30, 2022, representing 2.8% sequential growth from June 30, 2022, due largely to growth at Monomoy REIT.IM fee paying assets under management totaled $428.0 million as...