Great Elm Group, Inc. · NASDAQ:GEG
Great Elm — Q4 2023 Earnings Presentation
18 slides from Great Elm's earnings presentation, Sep 21, 2023
Slide 1: Fiscal Fourth Quarter and Year Ended June 30, 2023
September 21, 2023 Fiscal Fourth Quarter and Year Ended June 30, 2023 NASDAQ: GEG
Slide 2: In Fiscal Year 2023, GEG Completed its Transformation to a Focused Alternative Asset Manager
In Fiscal Year 2023, GEG Completed its Transformation to a Focused Alternative Asset Manager • GEG enters Fiscal 2024 with a strong foundation to grow and scale • Actions taken over the past year to transition the business include additions to leadership and Board of Directors, non-core business div
Slide 3: Our Goals
Our Goals GEG Leadership is focused on three simple goals Improve • GECC had a milestone quarter ended June 30, 2023 Profitability • For the first time in its history, GEG collected incentive fees for GECC, totaling $1 million for quarter ended June 2023 • GEG remains well positioned to continue to
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 September 21, 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 June 30, 2023 condensed balance sheet $ Million 6/30/2023 Cash & Marketable Securities1 $ 84.8 Current Liabilities $ 7.4 Investments 32.6 Long-Term Debt 25.8 Other Current and LT Assets 18.5 Convertible Notes 37.1 Other Liabilities 1.7 Total Liabilities $ 72.1 Total Eq
Slide 7: Transition to Focused Alternative Asset Manager
Transition to Focused Alternative Asset Manager GECC appoints Jason Reese, GECC records new CEO, new GEG acquires GECC shareholders GEG sells its experienced highest cash income Chairman and two Management approve amendment Durable Medical financial services quarter in its history, new independent A
Slide 8: Fiscal Year 2023 Transactions Recap
Fiscal Year 2023 Transactions Recap Sale of Majority Interest in Forest for $45 Million Forest • $27 million from the right to put the GEG is Focused on remaining 19% ownership interest in GECC Scaling Alternative Asset Forest in January 2023 Management BDC • $18 million from sale of 61% of the DME
Slide 9: Fiscal 2023 Fourth Quarter and Full Year Highlights
Fiscal 2023 Fourth Quarter and Full Year Highlights September 21, 2023 9
Slide 10: Fiscal 4Q23 Financial Highlights
Fiscal 4Q23 Financial Highlights Revenue Net Income Adjusted EBITDA1 • Fiscal 4Q23 revenue up 96% • Net loss from continuing • Fiscal 4Q23 Adjusted EBITDA to $3.0 million vs. Fiscal 4Q22 operations of ($5.3) million for of $0.4 million, compared to of $1.5 million Fiscal 4Q23 was comparable $0.3 mil
Slide 11: Fiscal 2023 Financial Highlights
Fiscal 2023 Financial Highlights Revenue Net Income Adjusted EBITDA1 • Fiscal 2023 revenue up 92% to • Net income from continuing • Fiscal 2023 Adjusted EBITDA $8.7 million vs Fiscal 2022 operations of $14.5 million for of $1.0 million, compared to revenue of $4.5 million Fiscal 2023, compared to ne
Slide 12: Assets Under Management
Assets Under Management AUM FPAUM 700 $640 500 $607 $449 600 $408 400 500 +5% +10% 400 300 300 200 200 100 100 0 0 6/30/2022 6/30/2023 6/30/2022 6/30/2023 $640 million of Assets Under Management $449 million of Fee-Paying AUM (“FPAUM”), (“AUM”), up 5% since June 30, 2022 up 10% since June 30, 2022 S
Slide 13: Results By Quarter
Results By Quarter (in thousands) Three Months Ended June 30, March 31, December 31, September 30, June 30, 2023 2023 2022 2022 2022 NON-GAAP RECONCILIATION Net income (loss) from continuing operations - GAAP $ (5,256) $ (455) $ 29,693 $ (9,503) $ (5,299) Interest expense 1,050 1,095 1,955 1,974 1,6
Slide 14: Results Year-Over-Year
Results Year-Over-Year (in thousands) Three months ended June 30, Twelve months ended June 30, 2023 2022 2023 2022 NON-GAAP RECONCILIATION Net income (loss) from continuing operations - GAAP $ (5,256) $ (5,299) $ 14,479 $ (19,305) Interest expense 1,050 1,674 6,074 5,546 Income tax expense 198 166 2
Slide 15: Financial Review: Fiscal 4Q23 Balance Sheet
Financial Review: Fiscal 4Q23 Balance Sheet (in thousands) June 30, 2023 June 30, 2022 ASSETS Cash and cash equivalents $ 60,165 $ 22,281 Receivables from managed funds 3,308 2,445 Investments in marketable securities 24,595 - Investments at fair value 32,611 48,042 Investments at fair value, consol
Slide 16: Financial Review: Fiscal Year 2023 Income Statement
Financial Review: Fiscal Year 2023 Income Statement (in thousands) Three months ended June 30, Twelve months ended June 30, 2023 2022 2023 2022 Revenues $ 3,026 $ 1,524 $ 8,663 $ 4,516 Operating costs and expenses: Investment management expenses 3,303 1,868 10,196 6,616 Depreciation and amortization
Slide 17: Contact Information
Contact Information Investor Relations Contact geginvestorrelations@greatelmcap.com September 21, 2023 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