Business
Great Elm Capital Corp. Announces First Quarter 2022 Financial Results
Company to Host Quarterly Conference Call and Webcast at 11:30 AM ET Today WALTHAM, Mass., May 11, 2022 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,”
About this update from Great Elm Group, Inc.
[{"type":"text","content":"Company to Host Quarterly Conference Call and Webcast at 11:30 AM ET Today\nWALTHAM, Mass., May 11, 2022 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “us,” “our,” the “Company” or “GECC”) (NASDAQ: GECC), a business development company, today announced its financial results for the first quarter ended March 31, 2022. Financial and Operating Highlights Cash-income-generating investments comprise 98% of the investment portfolio fair market value as of March 31, 2022.Legacy assets comprise approximately 2% of the investment portfolio fair market value as of March 31, 2022, or 5% of net asset value (“NAV”).Great Elm Group, Inc. (“GEG”) intends to subscribe for at least $12.5 million in the Company’s rights offering, and certain other affiliates of GEG have indicated they intend to subscribe.Net investment income (“NII”) for the quarter ended March 31, 2022 was $6.0 million, or $1.31 per share. NII for the quarter ended March 31, 2022 was positively impacted by the reversal of approximately $4.9 million of previously accrued incentive fees that have been waived by GEG. Net assets were approximately $69.3 million on March 31, 2022, as compared to $74.6 million on December 31, 2021, and $91.5 million on March 31, 2021.NAV per share was $15.06 as of March 31, 2022, as compared to $16.63 as of December 31, 2021, and $23.36 as of March 31, 2021.GECC’s asset coverage ratio was approximately 147.5% as of March 31, 2022, as compared to 151.1% as of December 31, 2021, and 177.1% as of March 31, 2021. Pro forma for the rights offering, GECC would have an asset coverage ratio in excess of 150%.1 Our Board of Directors has approved a quarterly dividend of $0.45 per share for the third quarter of 2022, equating to a 12.0% annualized yield on March 31, 2022 NAV per share. Management Commentary“We continued to make strides repositioning the company in the quarter,” said Matt Kaplan, GECC’s Chief Executive Officer. “We made significant progress monetizing legacy, non-income-producing equities and redeploying proceeds into yielding assets. In addition, our focus on Specialty Finance is gaining traction, with approximately one third of our portfolio now invested in Specialty Finance companies and related assets, including our new investment in Sterling Commercial Credit. While the macro environment remains challenging, we are confident in our abi...