Great Elm Group, Inc. · NASDAQ:GEG
Great Elm — Q1 2024 Earnings Presentation
16 slides from Great Elm's earnings presentation, Nov 9, 2023
Slide 1: Fiscal First Quarter Ended September 30, 2023
November 9, 2023 Fiscal First Quarter Ended September 30, 2023 NASDAQ: GEG
Slide 2: GEG Fiscal First Quarter Highlights
GEG Fiscal First Quarter Highlights • GEG is a publicly traded alternative asset manager growing a scalable and diversified portfolio of long-duration and permanent capital vehicles, anchored by two fee-paying vehicles positioned for growth: • Great Elm Capital Corp (“GECC”) • Monomoy Properties REI
Slide 3: Our Goals
Our Goals GEG Leadership is focused on three simple goals Improve • GECC had another strong quarter ended September 30, 2023 Profitability • GEG will collect $1.3 million incentive fees from GECC for the second recurring quarter, with total fees of $2.5 million for the quarter • GEG remains well pos
Slide 4: Positioned to Achieve Strategic Goals
Positioned to Achieve Strategic Goals Experienced Executive Two anchor Jason Reese investment as CEO vehicles Pipeline of new business Liquid opportunities Balance Sheet Institutional Back Office with ability to Streamlined service a growing corporate platform structure November 9, 2023 4
Slide 5: About GEG
About GEG Great Elm Group, Inc. (GEG) is a publicly-traded, alternative asset manager focused on: • Growing a scalable and diversified portfolio of long-duration and permanent capital vehicles • Investing in credit, real estate, specialty finance and other alternative strategies GECC • Public BDC wi
Slide 6: Summary Financial Position
Summary Financial Position GEG September 30, 2023 condensed balance sheet $ Million 9/30/2023 Cash & Marketable Securities1 $ 75.9 Current Liabilities $ 5.3 Investments 37.9 Long-Term Debt 25.9 Other Current and Long-Term Assets 22.4 Convertible Notes 37.2 Other Liabilities 0.5 Total Liabilities $ 6
Slide 7: GECC & Monomoy Highlights
GECC & Monomoy Highlights • Positioned to pay cash incentive fees to • Monomoy REIT maintained strong GEG for second consecutive quarter quarterly activity: • Generated ROE of ~8.5% and ~25% for the • Closed on two properties with key quarter and calendar year to date tenants, totaling ~$6mm • Amend
Slide 8: Fiscal 2024 First Quarter Highlights
Fiscal 2024 First Quarter Highlights November 9, 2023 8
Slide 9: Fiscal 1Q24 Financial Highlights
Fiscal 1Q24 Financial Highlights Revenue Net Income Adjusted EBITDA1 • Fiscal 1Q24 revenue up 78% • Net income from continuing • Fiscal 1Q24 Adjusted EBITDA to $3.3 million vs. Fiscal 1Q23 operations of $2.8 million for of $1.7 million, compared to revenue of $1.9 million Fiscal 1Q24, compared to a
Slide 10: Assets Under Management
Assets Under Management $mm AUM $mm FPAUM $700 $641 $500 $624 $451 $428 $600 $400 $500 +3% +5% $400 $300 $300 $200 $200 $100 $100 $0 $0 9/30/2022 9/30/2023 9/30/2022 9/30/2023 $641 million of Assets Under Management $451 million of Fee-Paying AUM (“FPAUM”), (“AUM”), up 3% since September 30, 2022 up
Slide 11: Results By Quarter
Results By Quarter (in thousands) Three Months Ended September 30, June 30, March 31, December 31, September 30, 2023 2023 2023 2022 2022 NON-GAAP RECONCILIATION Net income (loss) from continuing operations - GAAP $ 2,758 $ (5,256) $ (455) $ 29,693 $ (9,503) Interest expense 1,062 1,050 1,095 1,955
Slide 12: Results Year-Over-Year
Results Year-Over-Year (in thousands) Three months ended September 30, 2023 2022 NON-GAAP RECONCILIATION Net income (loss) from continuing operations - GAAP $ 2,758 $ (9,503) Interest expense 1,062 1,974 Income tax expense (benefit) - 233 Depreciation and amortization 283 294 Non-cash compensation 8
Slide 13: Financial Review: Fiscal 1Q24 Balance Sheet
Financial Review: Fiscal 1Q24 Balance Sheet (in thousands) September 30, 2023 June 30, 2023 ASSETS Cash and cash equivalents $ 41,077 $ 60,165 Receivables from managed funds 4,073 3,308 Investments in marketable securities 34,783 24,595 Investments at fair value 37,865 32,611 Prepaid and other curre
Slide 14: Financial Review: Fiscal 1Q24 Income Statement
Financial Review: Fiscal 1Q24 Income Statement (in thousands) Three months ended September 30, 2023 2022 Revenues $ 3,310 $ 1,860 Operating costs and expenses: Investment management expenses 2,762 1,989 Depreciation and amortization 283 294 Selling, general and administrative 1,715 1,487 Expenses of
Slide 15: Contact Information
Contact Information Investor Relations Contact geginvestorrelations@greatelmcap.com November 9, 2023 15
Slide 16: Disclaimer
Disclaimer Statements in this presentation 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 described herein. Investors