Great Elm Group, Inc. · NASDAQ:GEG
Great Elm — FY2024 Earnings Presentation
18 slides from Great Elm's earnings presentation, Aug 30, 2024
Slide 1: Fiscal Year & Fourth Quarter Ended June 30, 2024
August 30, 2024 Fiscal Year & Fourth Quarter Ended June 30, 2024 NASDAQ: GEG
Slide 2: GEG Fiscal 2024 Highlights
GEG Fiscal 2024 Highlights • Great Elm invested $9 million to support capital raises in excess of $90 million at Great Elm Capital Corp. (“GECC”), from February to July 2024. The new capital significantly increases AUM, supporting GEG’s opportunity to grow fee-related revenue at the BDC. • Great Elm
Slide 3: $92.5mm of Capital Raised Year To Date
$92.5mm of Capital Raised Year To Date • GECC issued 1.85 million shares at $12.97 (then current NAV) to Great Elm Strategic Partnership I, LLC (“GESP”) for $24 million in February 2024 $36 million • GEG participated in $6 million of the $24 million; a strategic institutional investor Equity Raised
Slide 4: 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 Alternative Credit •
Slide 5: Our Goals
Our Goals • Debt and equity capital raises at GECC expected to drive growth of future recurring fee revenue streams with high contribution margins Improve • GEG’s $9 million in investments in the GECC equity capital raises are expected to deliver Profitability attractive returns over time • GECC del
Slide 6: GEG Managed Vehicles
GEG Managed Vehicles ALTERNATIVE CREDIT REAL ESTATE GECC Private Funds Monomoy REIT Monomoy BTS • Public BDC with • Great Elm Credit Income • Private Industrial REIT with • Build-to-Suit division $325+1 million AUM Fund focuses on direct $400+ million AUM provides design-build • 15% of common stock
Slide 7: Summary Financial Position
Summary Financial Position1 GEG June 30, 2024 condensed balance sheet, excluding Consolidated Funds $ Million 6/30/2024 Cash & Marketable Securities2 $ 58.1 Current Liabilities $ 8.1 Restricted Cash 1.6 Long-Term Debt 26.1 Investments 36.3 Convertible Notes 34.9 Other Current and Long-Term Assets 36
Slide 8: GECC & Monomoy Highlights
GECC & Monomoy Highlights • Raised over $92 million of fresh capital YTD, increasing asset • Monomoy BTS sold its first property and focuses on its strong base by nearly 30% project pipeline • Closed the sale on its first build-to-suit property, realizing • Paid cash incentive fees to GEG of $2.7 mi
Slide 9: Fiscal 2024 Fourth Quarter and Full Year Highlights
Fiscal 2024 Fourth Quarter and Full Year Highlights August 30, 2024 9
Slide 10: Fiscal 4Q24 Financial Highlights
Fiscal 4Q24 Financial Highlights Revenue Net Income Adjusted EBITDA1 • Fiscal 4Q24 revenue • Net loss from continuing • Fiscal 4Q24 Adjusted EBITDA approximately tripled to $8.9 operations of ($0.6) million for of $1.2 million, compared to million from fiscal 4Q23 Fiscal 4Q24, compared to $0.4 milli
Slide 11: Fiscal 2024 Financial Highlights
Fiscal 2024 Financial Highlights Revenue Net Income Adjusted EBITDA1 • Fiscal 2024 revenue more than • Net loss from continuing • Fiscal 2024 Adjusted EBITDA doubled at $17.8 million from operations of ($0.9) million for of $4.8 million, compared to fiscal 2023 revenue of $8.7 fiscal 2024, compared
Slide 12: Assets Under Management
Assets Under Management1 $mm AUM $mm FPAUM $800 $727 $749 $600 $546 $524 $700 $640 $500 $449 $600 +3% $400 +4% $500 $400 +14% $300 +17% $300 $200 $200 $100 $100 $0 $0 6/30/2023 6/30/2024 6/30/2024 6/30/2023 6/30/2024 6/30/2024 Pro Forma1 Pro Forma1 $749 million of Pro Forma Assets Under Management $
Slide 13: Financial Review: Fiscal 4Q24 Balance Sheet
Financial Review: Fiscal 4Q24 Balance Sheet (in thousands) June 30, 2024 June 30, 2023 ASSETS Cash and cash equivalents $ 48,147 $ 60,165 Restricted cash 1,571 - Receivables from managed funds 2,259 3,308 Investments in marketable securities 9,929 24,595 Investments at fair value 44,585 32,611 Prepa
Slide 14: Financial Review: Fiscal 4Q24 Income Statement
Financial Review: Fiscal 4Q24 Income Statement Three months ended June 30, Twelve months ended June 30, (In thousands) 2024 2023 2024 2023 Revenues $ 8,918 $ 3,026 $ 17,834 $ 8,663 Cost of Revenues 5,526 - 5,526 - Operating costs and expenses: Investment management expenses 2,997 3,303 11,331 10,196
Slide 15: Results By Quarter
Results By Quarter Three Months Ended June 30, March 31, December 31, September 30, June 30, (in thousands) 2024 2024 2023 2023 2023 NON-GAAP RECONCILIATION Net income (loss) from continuing operations - GAAP $ (578) $ (2,883) $ (239) $ 2,758 $ (5,256) Interest expense 1,137 1,074 1,061 1,062 1,050
Slide 16: Results Year-Over-Year
Results Year-Over-Year Three months ended June 30, Twelve months ended June 30, (in thousands) 2024 2023 2024 2023 NON-GAAP RECONCILIATION Net income (loss) from continuing operations - GAAP $ (578) $ (5,256) $ (942) $ 14,479 Interest expense 1,137 1,050 4,334 6,074 Income tax expense (benefit) 101
Slide 17: Contact Information
Contact Information Investor Relations Contact geginvestorrelations@greatelmcap.com August 30, 2024 17
Slide 18: 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