Great Elm Group, Inc. · NASDAQ:GEG
Great Elm — Q1 2022 Earnings Presentation
24 slides from Great Elm's earnings presentation, Nov 12, 2021
Slide 1: Conference Call Presentation Fiscal First Quarter
Great Elm Group, Inc. Conference Call Presentation Fiscal First Quarter Ended September 30, 2021 November 12, 2021 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: Driving Shareholder Value: Business Operating Units
edit Master Driving title styleValue Shareholder Business Operating Units Operating Companies Investment Management Great Elm Durable Medical Equipment (“DME”) Business Great Elm Capital Management, Inc. (“GECM”) ▪ Distributor of respiratory care equipment (CPAP, ventilators, ▪ SEC Registered Invest
Slide 4: Fiscal 2022 First Quarter Highlights
edit Master Fiscal titleQuarter 2022 First style Highlights Consolidated IM Operating Companies Invested in Sharp Alpha Investment Management Completed the acquisition of Fund I, LP, a private fund (IM) business grew AUM. the power mobility assets of that is investing in early-stage MedOne Healthcar
Slide 5: Consolidated Financials: By Quarter
edit Master title Consolidated style Financials: By Quarter Summary (in thousands) Three Months Ended September 30, June 30, March 31, December 31, September 30, 2021 2021 2021 2020 2020 Revenue By Segment DME $ 15.6 $ 15.4 $ 13.1 $ 14.5 $ 14.6 Investment Management 1.0 0.9 0.7 0.8 0.8 General Corpo
Slide 6: Consolidated Financials: Year Over Year
edit Master title Consolidated style Financials: Year Over Year Summary (in millions) Three Months Ended September 30, September 30, 2021 2020 Revenue By Segment DME $ 15.6 $ 14.6 Investment Management 1.0 0.8 General Corporate 0.2 0.1 Eliminations (0.2) (0.1) Consolidated $ 16.5 $ 15.4 Income (Loss
Slide 7: DME – Operating Highlights
edit Master Operating title style DME – Operating Highlights Companies: ▪ In fiscal 1Q22, Great Elm DME, Inc. (“DME”) generated $15.6 million of revenue, $2.1 million of net income and $5.1 million of adjusted EBITDA1 ▪ Revenues overall increased due to continued organic growth in resupply sales and
Slide 8: DME Acquisitions in 2021
edit Master DME title style Acquisitions in 2021 AMPM MedOne Power Mobility Assets ▪ On March 1, 2021 closed the acquisition of Advanced ▪ In August 2021, DME acquired the power mobility Medical DME, LLC and PM Sleep Lab, LLC assets of MedOne (“AMPM”), providers of sleep testing, PAP, and other ▪ St
Slide 9: DME – Quarterly Financials
edit Master Operating title style DME – Quarterly Financials Companies: (in thousands) Three Months Ended September 30, June 30, March 31, December 31, September 30, 2021 2021 2021 2020 2020 Total Net Revenue Sales and Services Revenue - Medical Equipment $ 8,730 $ 8,566 $ 7,309 $ 8,411 $ 8,008 Sale
Slide 10: DME – Year Over Year Financials
edit Master Operating title style DME – Year over Year Financials Companies: (in thousands) Three Months Ended September 30, September 30, 2021 2020 Total Net Revenue: Sales and Services Revenue - Medical Equipment $ 8,730 $ 8,008 Sales and Services Revenue - Sleep Studies 1,346 1,205 Total Sales an
Slide 11: Investment Management: A Scalable, High Margin Business
edit MasterManagement: Investment title style A Scalable, High Margin Business AUM GROWTH HIGH MARGINS Grow GECC’s AUM through the AUM Growth Given the largely fixed cost nature of the issuance of additional debt and equity, Investment Management business, we supplemented by accretive acquisitions,
Slide 12: Investment Management Quarterly Highlight
edit MasterManagement Investment title style In fiscal 1Q22, Investment Management generated $1.0 million of revenue, $0.1 million of Quarterly Highlight net loss and $0.1 million of adjusted EBITDA1 ▪ Revenue and profitability were stable and reflect the increases in average assets on GECC is build
Slide 13: Investment Management Quarterly Financials
edit MasterManagement: Investment title style Quarterly Financials (in thousands) Three Months Ended September 30, June 30, March 31, December 31, September 30, 2021 2021 2021 2020 2020 Total revenues $ 983 $ 949 $ 728 $ 760 $ 773 GAAP Net Income $ (140) $ 1,311 $ (735) $ 3,632 $ (1,485) Non-cash co
Slide 14: Investment Management Year Over Year Financials
edit MasterManagement: Investment title style Year over Year Financials (in thousands) Three Months Ended September 30, September 30, 2021 2020 Total revenues $ 983 $ 773 GAAP Net Income $ (140) $ (1,485) Non-cash compensation 396 194 Interest expense, net 24 26 Dividend income on managed products (
Slide 15: General Corporate: Financials by Quarter
edit Master General title style Corporate: Financials by Quarter (in thousands) Three Months Ended September 30, June 30, March 31, December 31, September 30, 2021 2021 2021 2020 2020 Total revenue $ 243 $ 281 $ 162 $ 45 $ 91 Operating costs and expenses: Public company costs (993) (429) (1,162) (65
Slide 16: General Corporate: Financials Year Over Year
edit Master General title style Corporate: Financials Year Over Year (in thousands) Three Months Ended September 30, September 30, 2021 2020 Total revenue $ 243 $ 91 Operating costs and expenses: Public company costs (993) (614) Non-cash compensation (29) (235) Other general and administrative (664)
Slide 17: Review: 1Q22 Consolidating Balance Sheets
edit Master Financial title style Review: 1Q22 Consolidating Balance Sheets (Unaudited) Durable Medical Investment Corporate Elimination Consolidated $ in thousands Equipment Management ASSETS Cash and cash equivalents $ 5,552 $ 758 $ 15,481 $ - $ 21,791 Accounts receivable, net 5,544 1,972 99 (176)
Slide 18: Review: 1Q22 Consolidating Income Statement
edit Master Financial title style Review: 1Q22 Consolidating Income Statement (Unaudited) For the three months ended September 30, 2021 Durable Medical Investment Corporate Elimination Consolidated $ in thousands Equipment Management Total Revenues $ 15,555 $ 983 $ 243 $ (243) $ 16,538 Cost of reven
Slide 19: 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 2.0 million shares of GEG, collectively own approximately 1.9 million shares of GEG, representing repres
Slide 20: Appendix
edit Master title style Appendix Great Elm Group, Inc. | NASDAQ: GEG 20
Slide 21: Organization Structure
edit Master title Organization: style Structure Great Elm Group, Inc. (“Great Elm” or “GEG”) (NASDAQ: GEG) Holds Former JPM ~20.4% 100% 80.1% 19.9% 80% 20% shares owners Great Elm Capital Forest Investments, Inc. Great Elm Capital Corp Management, Inc. (“GECM”) Great Elm Durable Medical (“Forest”) (
Slide 22: Appendix: Non-GAAP Reconciliation
Appendix: edit Master Non-GAAP title style Reconciliation For the three months ended September 30, 2021 Durable Medical Investment Management Corporate Consolidated $ in thousands Equipment EBITDA: Income (loss) from continuing operations - GAAP $ 2,082 $ (140) $ (1,836) $ 106 Interest expense 1,287
Slide 23: Reconciliation (cont.): Prior Year Period
edit Master Appendix: title style Reconciliation (cont.): Prior Year Period Non-GAAP For the three months ended September 30, 2020 Durable Medical Investment Corporate (1) Consolidated $ in thousands Equipment Management (1) EBITDA: Income (loss) from continuing operations - GAAP $ (458) $ (1,485) $
Slide 24: Contact Information
edit Master Appendix: title style Contact Information Investor Relations 800 South Street, Suite 230 Waltham, MA 02453 investorrelations@greatelmcap.com Adam Prior The Equity Group Inc. +1 (212) 836-9606 aprior@equityny.com Great Elm Group, Inc. | NASDAQ: GEG 24