Business
Great Elm Group Reports Fiscal 2023 Second Quarter Financial Results
Company to Host Conference Call at 9:00 a.m., ET, on February 14, 2023 WALTHAM, Mass., Feb. 13, 2023 (GLOBE NEWSWIRE) -- Great Elm Group, Inc. (“we,” “our,”
About this update from Great Elm Capital Corp.
[{"type":"text","content":"Company to Host Conference Call at 9:00 a.m., ET, on February 14, 2023\nWALTHAM, Mass., Feb. 13, 2023 (GLOBE NEWSWIRE) -- Great Elm Group, Inc. (“we,” “our,” “GEG,” or “Great Elm”), (NASDAQ: GEG), an alternative asset manager, today announced financial results for its fiscal second quarter ended December 31, 2022. Transformational Transactions On January 3, 2023, GEG sold its Durable Medical Equipment (“DME”) business for $80 million. After settling all obligations, the transaction resulted in approximately $26 million in net cash proceeds and 346,028 shares of Quipt common stock.On December 30, 2022, GEG entered into an agreement to sell 61% of the equity interests in Forest Investments, Inc. (“Forest”) and on January 17, 2023 it exercised a put right for the remaining 19% of the equity interests in Forest for aggregate cash proceeds of approximately $45 million.GEG had approximately $90 million of cash on its balance sheet to deploy across its growing alternative asset management platform pro forma for the DME and Forest transactions.GEG retained approximately $154 million of net operating loss (NOL) carryforwards for federal income tax purposes, approximately $131 million of which can be used for certain taxable income in fiscal year 2023 but expire on June 30, 2023. Financial and Operational Highlights Assets under management totaled $619 million as of December 31, 2022, approximately consistent with September 30, 2022 and up approximately 2% year-to-date. Fee paying assets under management totaled $437 million as of December 31, 2022, representing approximately 2% sequential growth from September 30, 2022 and up approximately 7% year-to-date.GEG total revenue grew for the second quarter by 84% 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”).GEG reported net income for the second quarter of $29.7 million, compared to a net loss of $4.2 million in the prior-year period, primarily driven by $22.2 million in net realized and unrealized gain on investments and a gain on sale of controlling interest in subsidiary of $10.5 million.GEG recognized Adjusted EBITDA of ($1.2) million for the second quarter, approximately unchanged from the same period...