Business
Great Elm Group Reports Fiscal 2024 Fourth Quarter and Full Year Financial Results
Company to Host Conference Call at 8:30 a.m. ET on August 30, 2024 PALM BEACH GARDENS, Fla., Aug. 29, 2024 (GLOBE NEWSWIRE) -- Great Elm Group, Inc. (“we,”
About this update from Great Elm Group, Inc.
[{"type":"text","content":"Company to Host Conference Call at 8:30 a.m. ET on August 30, 2024\nPALM BEACH GARDENS, Fla., Aug. 29, 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 fourth quarter and year ended June 30, 2024. Fiscal Fourth Quarter 2024 and Recent Highlights Great Elm Capital Corp. (“GECC”) raised $34 million of additional debt and equity capital since April 2024.Fee-paying assets under management (“FPAUM”) and assets under management (“AUM”) both increased 6% in the quarter.Pro forma FPAUM1 and AUM1, inclusive of net proceeds from GECC’s July capital raise, totaled approximately $546 million and $749 million, respectively. Represents pro forma FPAUM1 and AUM1 growth of 11% and 9%, respectively, from March 31, 2024. Total revenue for the fourth quarter approximately tripled to $8.9 million, compared to $3.0 million for the prior-year period. Monomoy BTS closed the sale of its first build-to-suit property in June, generating over $6 million in revenue and over $1 million in profit. Net loss from continuing operations was ($0.6) million for the fourth quarter, compared to ($5.3) million in the prior year period. Net loss for the quarter included ($1.1) million in unrealized loss on GEG’s investment in Prosper Peak Holdings, LLC (“PPH”). Adjusted EBITDA for the fourth quarter was $1.2 million, compared to $0.4 million in the prior-year period.As of June 30, 2024, GEG had approximately $58 million of cash and marketable securities on its balance sheet to support growth initiatives across its alternative asset management platform.GEG repurchased 1.2 million shares for $2.1 million during the quarter through its share repurchase program.GEG repurchased $4.2 million principal of its 5% convertible notes due 2030 for $2.1 million, or approximately 47% of face value, resulting in a realized gain of $2.3 million. Full Fiscal Year 2024 Highlights GECC raised over $92 million of new capital through July 2024, positioning GEG to further grow management and incentive fee revenue. Great Elm supported GECC’s June and February equity raises of $12 million and $24 million, respectively, by investing a total of $9 million across two separate SPVs that purchased GECC common shares. FPAUM and AUM increased 17% and 14%, ...