Business
Great Elm Group Reports Fiscal 2022 Fourth Quarter and Full Year Financial Results
Company to Host Conference Call at 9:00 a.m. ET on September 13, 2022 WALTHAM, Mass., Sept. 12, 2022 (GLOBE NEWSWIRE) -- Great Elm Group, Inc. (“we,” “us,”
About this update from Great Elm Group, Inc.
[{"type":"text","content":"Company to Host Conference Call at 9:00 a.m. ET on September 13, 2022\nWALTHAM, Mass., Sept. 12, 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 fourth quarter and full year ended June 30, 2022. Fiscal 2022 Annual Operating Highlights Investment Management (IM): In May 2022, the company acquired the investment management agreement of Monomoy Properties REIT, LLC (“Monomoy REIT”). Formed in 2014, Monomoy REIT is a private real estate investment trust, with a 114-property portfolio of diversified net leased industrial assets with a fair value of approximately $358 million as of June 30, 2022.To support growth, GEG invested $15 million into a subsidiary of Monomoy REIT at an 8% dividend per annum, with the option to invest an additional $15 million over the next 12 months.In June 2022, Great Elm Capital Corp. (“GECC”) raised $37.5 million of new equity capital upon completion of its rights offering.In June 2022, GEG issued $26.9 million in aggregate principal amount of 7.25% Notes due 2027, with the proceeds, including the $15 million noted above, to be used for strategic growth investments into Monomoy REIT and other opportunistic investments to further build and diversify the Investment Management business. Operating Companies: Adjusted EBITDA for DME totaled $13.8 million in fiscal 2022 compared to $12.4 million in fiscal 2021, which includes a decline in government stimulus benefits of $2.3 million from the prior year. This represents a 37% increase in Adjusted EBITDA from the prior year excluding the decline in government stimulus benefits.DME demonstrated strong core profitability despite challenging supply chain conditions, which improved gradually over the course of fiscal 2022. Successfully integrated two add-on acquisitions over the year, AMPM and MedOne, acquired in March 2021 and August 2021, respectively. Management Commentary Peter A. Reed, Chief Executive Officer, stated, “Our fiscal fourth quarter and year ended June 30, 2022 were highlighted by two key milestones. First, we closed on the acquisition of the investment management agreement for Monomoy Properties REIT and made a strategic investment into the REIT to support growth. This was a transformative deal for Great Elm that he...