Great Elm Group, Inc. · NASDAQ:GEG
Great Elm — Q3 2024 Earnings Presentation
16 slides from Great Elm's earnings presentation, May 9, 2024
Slide 1: Fiscal Third Quarter Ended March 31, 2024
May 9, 2024 Fiscal Third Quarter Ended March 31, 2024 NASDAQ: GEG
Slide 2: GEG Highlights
GEG Highlights • Great Elm’s BDC, GECC, raised ~$60 million of incremental capital since the beginning of the calendar year and had a solid quarter, exceeding its dividend with NII, and paying $1.6 million in fees to GEG. The new capital significantly increases AUM and positions GEG to grow related
Slide 3: 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 4: Our Goals
Our Goals • Recent debt and equity capital raises at GECC expected to drive growth of future recurring fee revenue streams with high contribution margins Improve • GEG’s supportive investment in the GECC equity capital raise is expected to deliver Profitability attractive returns over time • GECC de
Slide 5: 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 $300+1 million AUM Fund focuses on direct $390+ million AUM provides design-build • 16% of common stock
Slide 6: Summary Financial Position
Summary Financial Position1 GEG March 31, 2024 condensed balance sheet, excluding Consolidated Funds $ Million 3/31/2024 Cash & Marketable Securities2 $ 68.9 Current Liabilities $ 10.6 Investments 29.6 Long-Term Debt 26.0 Other Current and Long-Term Assets 42.0 Convertible Notes 38.2 Other Liabiliti
Slide 7: GECC & Monomoy Highlights
GECC & Monomoy Highlights • Raised ~$58.5 million of fresh capital YTD, increasing • Monomoy REIT maintained strong activity; since the asset base by over 20% beginning of the calendar year: • Closed on six properties with • Paid cash incentive fees to GEG for fourth consecutive in-place leases, tot
Slide 8: Fiscal 2024 Third Quarter Highlights
Fiscal 2024 Third Quarter Highlights May 9, 2024 8
Slide 9: Fiscal 3Q24 Financial Highlights
Fiscal 3Q24 Financial Highlights Revenue Net Income Adjusted EBITDA1 • Fiscal 3Q24 revenue up 47% • Net loss from continuing • Fiscal 3Q24 Adjusted EBITDA to $2.8 million vs. Fiscal 3Q23 operations of ($2.9) million for of $1.2 million, compared to revenue of $1.9 million Fiscal 3Q24, compared to a
Slide 10: Assets Under Management
Assets Under Management1 $mm AUM $mm FPAUM $800 $600 $688 $716 $521 $700 $631 $493 $500 $438 $600 +4% $400 +6% $500 $400 +9% $300 +13% $300 $200 $200 $100 $100 $0 $0 3/31/2023 3/31/2024 3/31/2024 3/31/2023 3/31/2024 3/31/2024 Pro Forma1 Pro Forma1 $716 million of Pro Forma Assets Under Management $5
Slide 11: Financial Review: Fiscal 3Q24 Balance Sheet
Financial Review: Fiscal 3Q24 Balance Sheet (in thousands) March 31, 2024 June 30, 2023 ASSETS Cash and cash equivalents $ 44,085 $ 60,165 Receivables from managed funds 4,400 3,308 Investments in marketable securities 24,789 24,595 Investments at fair value 38,244 32,611 Prepaid and other current a
Slide 12: Financial Review: Fiscal 3Q24 Income Statement
Financial Review: Fiscal 3Q24 Income Statement Three months ended March 31, Nine months ended March 31, (In thousands) 2024 2023 2024 2023 Revenues $ 2,787 $ 1,898 $ 8,916 $ 5,637 Operating costs and expenses: Investment management expenses 2,733 2,593 8,334 6,893 Depreciation and amortization 271 2
Slide 13: Results By Quarter
Results By Quarter Three Months Ended March 31, December 31, September 30, June 30, March 31, (in thousands) 2024 2023 2023 2023 2023 NON-GAAP RECONCILIATION Net income (loss) from continuing operations - GAAP $ (2,883) $ (239) $ 2,758 $ (5,256) $ (455) Interest expense 1,074 1,061 1,062 1,050 1,095
Slide 14: Results Year-Over-Year
Results Year-Over-Year Three months ended March 31, Nine months ended March 31, (in thousands) 2024 2023 2024 2023 NON-GAAP RECONCILIATION Net income (loss) from continuing operations - GAAP $ (2,883) $ (455) $ (364) $ 19,735 Interest expense 1,074 1,095 3,197 5,024 Income tax expense (benefit) - -
Slide 15: Contact Information
Contact Information Investor Relations Contact geginvestorrelations@greatelmcap.com May 9, 2024 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