Great Elm Group, Inc. · NASDAQ:GEG
Great Elm — Q1 2023 Earnings Presentation
25 slides from Great Elm's earnings presentation, Nov 15, 2022
Slide 1: Conference Call Presentation Fiscal First Quarter Ended September 30, 2022
Great Elm Group, Inc. Conference Call Presentation Fiscal First Quarter Ended September 30, 2022 November 14, 2022 NASDAQ: GEG
Slide 2: Disclaimer
edit Master title style Disclaimer Statements in this press release that are “forward-looking” statements, including statements regarding expected growth, profitability, acquisition opportunities and outlook involve risks and uncertainties that may individually or collectively impact the matters des
Slide 3: Business Strategy and Operating Units
edit Master Business title style Strategy Growth Strategy Acquire management rights to permanent capital vehicles that Focus on driving asset growth in GECC and Monomoy REIT utilize the expertise of our Board, management, and financial Increase AUM through new fund launches, capital market res
Slide 4: Fiscal 2023 First Quarter Highlights
edit Master title style Fiscal 2023 First Quarter Highlights Great Elm Group, Inc. | NASDAQ: GEG 4
Slide 5: Fiscal 2023 First Quarter Highlights
edit Master Fiscal titleQuarter 2023 First style Highlights Consolidated IM Operating Companies • Fee paying AUM grew 4.8% quarter-over-quarter • DME grew revenue by 7% • Consolidated revenue of $18.6 million was up 12% • IM revenue up nearly 90% year-over-year compared to the prior-year year-over-y
Slide 6: Consolidated Financials: By Quarter
edit Master title Consolidated style Financials: By Quarter Summary (in millions) Three Months Ended September 30, June 30, March 31, December 31, September 30, 2022 2022 2022 2021 2021 Revenue by Segment DME $ 16.7 $ 16.5 $ 15.6 $ 15.7 $ 15.6 Investment Management 1.9 1.5 1.0 1.0 1.0 General Corpor
Slide 7: Consolidated Financials: Year-Over-Year
edit Master title Consolidated style Financials: Year-Over-Year Summary (in millions) Three Months Ended September 30, September 30, 2022 2021 Revenue by Segment DME $ 16.7 $ 15.6 Investment Management $ 1.9 $ 1.0 General Corporate $ 0.2 $ 0.2 Eliminations $ (0.2) $ (0.2) Consolidated $ 18.6 $ 16.5
Slide 8: Investment Management: A Scalable, High Margin Business
edit MasterManagement: Investment title style A Scalable, High Margin Business AUM GROWTH HIGH MARGINS Grow GECC’s and Monomoy’s AUM AUM Growth Given the largely fixed cost nature of the through issuances of additional debt and Investment Management business, we equity, resulting in an increase in f
Slide 9: Investment Management
edit MasterManagement Investment title style • FY 1Q’23 revenue up 89% vs. FY 1Q’22 to $1.9 million Revenue • Growth driven by an increase in management fees related to the recently acquired Monomoy REIT management agreement • Net loss of $6.0 million for F1Q’23, compared to a net loss of $0.1 milli
Slide 10: Investment Management: Strong Asset Growth
edit MasterManagement: Investment title style Strong Asset Growth $624 million of Assets Under Management (“AUM”), up 2.8% quarter-over-quarter $428 million of Fee Paying Assets Under Management (“FPAUM”), up 4.8% quarter-over-quarter AUM FPAUM +2.8% +4.8% Great Elm Group, Inc. | NASDAQ: GEG 10
Slide 11: Investment Management: By Quarter
edit MasterManagement: Investment title style By Quarter (in thousands) Three Months Ended September 30, June 30, March 31, December 31, September 30, 2022 2022 2022 2021 2021 Total revenues $ 1,860 $ 1,524 $ 988 $ 1,021 $ 983 Net Loss - GAAP $ (6,031) $ (1,800) $ (3,981) $ (2,631) $ (140) Non-cash
Slide 12: Investment Management: Year-Over-Year
edit MasterManagement: Investment title style Year-Over-Year (in thousands) Three Months Ended September 30, September 30, 2022 2021 Total revenues $ 1,860 $ 983 Net loss - GAAP $ (6,031) $ (140) Non-cash compensation 477 396 Interest expense, net 136 24 Dividend income on managed products (1,386) (
Slide 13: DME Operating Companies
edit Master Operating title style DME Companies: • F1Q23 revenue up 7% vs. F1Q22 to $16.7 million • Growth driven by continued organic growth in resupply sales, a Revenue full quarter of contributions from the MedOne acquisition in August 2021, and improved revenue reserves • Net income of $6.8 mill
Slide 14: Consistent Revenue Growth
edit Master Operating title style Consistent Revenue Growth Companies: Revenue ($ millions) $16.7 $16.5 $15.6 $15.7 $15.6 FY 1Q'22 FY 2Q'22 FY 3Q'22 FY 4Q'22 FY 1Q'23 Great Elm Group, Inc. | NASDAQ: GEG 14
Slide 15: DME – By Quarter
edit Master Operating title style DME – By Quarter Companies: (in thousands) Three Months Ended September 30, June 30, March 31, December 31, September 30, 2022 2022 2022 2021 2021 Total net revenue Sales and services revenue - medical equipment $ 9,634 $ 9,487 $ 8,976 $ 8,968 $ 8,730 Sales and serv
Slide 16: DME – Year-Over-Year
edit Master Operating title style DME – Year-Over-Year Companies: (in thousands) Three Months Ended September 30, September 30, 2022 2021 Total Net Revenue: Sales and Services Revenue - Medical Equipment $ 9,634 $ 8,730 Sales and Services Revenue - Sleep Studies 1,394 1,346 Total Sales and Services
Slide 17: General Corporate: By Quarter
edit Master General title style Corporate: By Quarter (in thousands) Three Months Ended September 30, June 30, March 31, December 31, September 30, 2022 2022 2022 2021 2021 Total revenue $ 203 $ 231 $ 230 $ 172 $ 243 Operating costs and expenses: Public company costs (870) (578) (893) (878) (993) No
Slide 18: General Corporate: Year-Over-Year
edit Master General title style Corporate: Year-Over-Year (in thousands) Three Months Ended September 30, September 30, 2022 2021 Total revenue $ 203 $ 243 Operating costs and expenses: Public company costs (870) (993) Non-cash compensation (13) (29) Other general and administrative (717) (664) Oper
Slide 19: Financial Review: FY 1Q'23 Consolidating Balance Sheets
edit Master Financial title style Review: FY 1Q’23 Consolidating Balance Sheets (Unaudited) Durable Medical Investment Corporate Consolidated $ in thousands Equipment Management ASSETS Cash and cash equivalents $ 733 $ 1,163 $ 21,369 $ 23,265 Accounts receivable, net 5,854 2,578 - 8,432 Investments
Slide 20: Financial Review: FY 1Q'23 Consolidating Income Statement
edit Master Financial title style Review: FY 1Q’23 Consolidating Income Statement (Unaudited) For the three months ended September 30, 2022 Durable Medical Investment Corporate Elimination Consolidated $ in thousands Equipment Management Total Revenues $ 16,719 $ 1,860 $ 203 $ (203) 18,579 Cost of r
Slide 21: Strong Shareholder Alignment
edit Master Strong title style Shareholder Alignment Employees of GEG/Great Elm Capital Management, Inc. (“GECM”) Employee Share Employee Share Employees of GEG collectively own approximately 2.1 million shares of GEG, collectively own approximately 1.9 million shares of GEG, representing repres
Slide 22: Appendix
edit Master title style Appendix Great Elm Group, Inc. | NASDAQ: GEG 22
Slide 23: Appendix: Non-GAAP Reconciliation
edit Master Appendix: title style Reconciliation Non-GAAP For the three months ended September 30, 2022 Durable Medical Investment Corporate Consolidated $ in thousands Equipment Management EBITDA: Net income (loss) - GAAP $ 6,758 $ (6,031) $ (9,266) $ (8,539) Interest expense 1,106 136 1,839 3,081
Slide 24: Non-GAAP Reconciliation (cont.): Prior Year Period
edit Master Appendix: title style Reconciliation (cont.): Prior Year Period Non-GAAP For the three months ended September 30, 2021 Durable Medical Investment Corporate Consolidated $ in thousands Equipment Management EBITDA: Net income (loss) - GAAP $ 2,082 $ (140) $ (1,836) $ 106 Interest expense 1
Slide 25: Contact Information
edit Master Appendix: title style Contact Information Investor Relations Contact: Michael Kim investorrelations@greatelmcap.com Great Elm Group, Inc. | NASDAQ: GEG 25