Great Elm Group, Inc. · NASDAQ:GEG

Great Elm — Q4 FY2021 Earnings Presentation

28 slides from Great Elm's earnings presentation, Sep 20, 2021

  1. Slide 1: Great Elm Group, Inc. Conference Call Presentation

    Great Elm Group, Inc. Conference Call Presentation Fiscal Fourth Quarter and Year Ended June 30, 2021 September 20, 2021 NASDAQ: GEG

  2. 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

  3. 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

  4. Slide 4: Fiscal 2021 Annual Highlights

    edit Master Fiscal title style 2021 Annual Highlights Consolidated IM Operating Companies Sale of Real Estate Completed a holding Investment Management DME Revenue grew 10.8% Sold Real Estate business to company reorganization and (IM) business grew AUM QTD and 3.4% YTD as an affiliate of Monomoy fi

  5. Slide 5: Consolidated Financials: By Quarter

    edit Master title Consolidated style Financials: By Quarter Summary (in thousands) Three Months Ended June 30, March 31, December 31, September 30, June 30, 2021 2021 2020 2020 2020 Revenue By Segment Operating Companies (DME) $ 15.4 $ 13.1 $ 14.5 $ 14.6 $ 13.9 Investment Management 0.9 0.7 0.8 0.8

  6. Slide 6: Consolidated Financials: Year Over Year

    edit Master title Consolidated style Financials: Year Over Year Summary (in millions) Three Months Ended Year Ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 Revenue By Segment Operating Companies (DME) $ 15.4 $ 13.9 $ 57.6 $ 55.7 Investment Management 0.9 0.7 3.2 3.3 General Corporate

  7. Slide 7: DME – Operating Highlights

    edit Master Operating title style DME – Operating Highlights Companies: ▪ In fiscal 4Q21, Great Elm DME, Inc. (“DME”) generated $15.4 million of revenue, $5.9 million of net income and $4.3 million of adjusted EBITDA1 ▪ Revenues overall increased due to continued organic growth in resupply sales and

  8. Slide 8: DME Acquisitions

    edit Master DME title style Acquisitions AMPM MedOne Power Mobility Assets ▪ On March 1, 2021 closed the acquisition of Advanced ▪ Subsequent to quarter end, DME acquired the power Medical DME, LLC and PM Sleep Lab, LLC mobility assets of MedOne (“AMPM”), providers of sleep testing, PAP, and other ▪

  9. Slide 9: DME – Quarterly Financials

    edit Master Operating title style DME – Quarterly Financials Companies: (in thousands) Three Months Ended June 30, March 31, December 31, September 30, June 30, 2021 2021 2020 2020 2020 Total Net Revenue Sales and Services Revenue - Medical Equipment $ 8,566 $ 7,309 $ 8,411 $ 8,008 $ 7,418 Sales and

  10. Slide 10: DME – Year over Year Financials

    edit Master Operating title style DME – Year over Year Financials Companies: (in thousands) Three Months Ended Year Ended June 30, June 30, June 30, June 30, 2021 2020 2021 2020 Total Net Revenue: Sales and Services Revenue - Medical Equipment $ 8,566 $ 7,418 $ 32,294 $ 28,915 Sales and Services Rev

  11. 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 e

  12. Slide 12: Investment Management: Solid Progress and Momentum Increasing

    edit MasterManagement: Investment title style Solid Progress and Momentum Increasing In fiscal 4Q21, Investment Management generated $0.9 million of revenue, $0.7 million of net income and $0.1 million of adjusted EBITDA1 ▪ Revenue and profitability were stable and reflect the increases in average a

  13. Slide 13: Investment Management: Quarterly Financials

    edit MasterManagement: Investment title style Quarterly Financials Three Months Ended June 30, March 31, December 31, September 30, June 30, 2021 2021 2020 2020 2020 Total revenues $ 949 $ 728 $ 760 $ 773 $ 747 GAAP Net Income (Loss) $ 1,311 $ (735) $ 3,632 $ (1,485) $ 3,402 Stock based compensation

  14. Slide 14: Investment Management: Year Over Year Financials

    edit MasterManagement: Investment title style Year over Year Financials (in thousands) Three Months Ended Year Ended June 30, June 30, June 30, June 30, 2021 0 2020 2021 2020 Total revenues $ 949 $ 747 $ 3,210 $ 3,332 GAAP Net Income (Loss) $ 1,311 $ 3,402 $ 2,723 $ (6,182) Stock based compensation

  15. Slide 15: Sale of Fort Myers Real Estate

    editEstate Real MasterTransaction: title style Sale of Fort Myers Sold our Real Estate ▪ Improves overall capitalization business consisting of our ▪ Eliminated $54 million of Debt associated with our Real Estate Business from our entire ownership interest balance sheet in two Class A office buildin

  16. Slide 16: Corporate: Financials by Quarter

    edit Master General title style Corporate: Financials by Quarter (in thousands) Three Months Ended June 30, March 31, December 31, September 30, June 30, 2021 2021 2020 2020 2020 Total revenue $ 281 $ 162 $ 45 $ 91 $ 45 Operating costs and expenses: Public company costs (429) (1,162) (651) (614) (71

  17. Slide 17: Corporate: Financials Year Over Year

    edit Master General title style Corporate: Financials Year Over Year (in thousands) Three Months Ended Year Ended June 30, June 30, June 30, June 30, 2021 0 2020 2021 2020 Total revenue $ 281 $ 45 $ 579 $ 159 Operating costs and expenses: Public company costs (429) (714) (2,856) (3,618) Stock-based

  18. Slide 18: Financial Review: 4Q21 Consolidating Balance Sheets

    edit Master Financial title style Review: 4Q21 Consolidating Balance Sheets (Unaudited) Operating Investment Corporate Elimination Consolidated $ in thousands Companies (DME) Management ASSETS Cash and cash equivalents $ 5,685 $ 516 $ 18,181 $ - $ 24,382 Accounts receivable, net 6,518 1,787 - (122)

  19. Slide 19: Financial Review: 4Q21 Consolidating Income Statement

    edit Master Financial title style Review: 4Q21 Consolidating Income Statement (Unaudited) For the three months ended June 30, 2021 Operating Investment Companies Corporate Elimination Consolidated Management $ in thousands (DME) Total Revenues $ 15,373 $ 949 $ 281 $ (281) $ 16,322 Cost of revenue (5

  20. Slide 20: 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

  21. Slide 21: Appendix

    edit Master title style Appendix Great Elm Group, Inc. | NASDAQ: GEG 21

  22. Slide 22: Corporate Reorganization and Financing Transaction Overview

    edit Master Corporate title style Reorganization and Financing Transaction OVERVIEW ▪ On December 29, 2020, we completed a reorganization of our corporate structure and executed a financing transaction with J.P. Morgan Broker-Dealer Holdings (“JPM”), wherein JPM invested a total of $37.7 million ▪ G

  23. Slide 23: Organization: Structure

    edit Master title Organization: style Structure Great Elm Group, Inc. (“Great Elm” or “GEG”) (NASDAQ: GEG) Holds Former ~23.6% 100% 19.9% 80.1% 80% JPM 20% owners shares Great Elm Capital Forest Investments, Inc. Great Elm Capital Corp Management, Inc. (“GECM”) Great Elm Durable Medical (“Forest”) (

  24. Slide 24: Appendix: Non-GAAP Reconciliation

    edit Master Appendix: title style Reconciliation Non-GAAP For the three months ended June 30, 2021 Operating Investment Management (1) Corporate (1) Consolidated Companies (DME) $ in thousands EBITDA: Income (loss) from continuing operations - GAAP $ 5,906 $ 1,311 $ (8,607) $ (1,390) Interest expens

  25. Slide 25: Non-GAAP Reconciliation (cont.)

    edit Master Appendix: title style Reconciliation (cont.) Non-GAAP For the three months ended June 30, 2020 Operating Companies Investment Management (1) Corporate (1) Consolidated $ in thousands (DME) EBITDA: Income (loss) from continuing operations - GAAP $ 2,787 $ 3,404 $ (2,127) $ 4,064 Interest

  26. Slide 26: Non-GAAP Reconciliation (cont.)

    edit Master Appendix: title style Reconciliation (cont.) Non-GAAP For the year ended June 30, 2021 Investment Management Operating Companies (DME) (1) Corporate (1) Consolidated $ in thousands EBITDA: Income (loss) from continuing operations - GAAP $ (2,489) $ 2,723 $ (9,562) $ (9,328) Interest expe

  27. Slide 27: Non-GAAP Reconciliation (cont.)

    edit Master Appendix: title style Reconciliation (cont.) Non-GAAP For the year ended June 30, 2020 Investment Operating Companies (DME) Corporate (1) Consolidated $ in thousands Management (1) EBITDA: Income (loss) from continuing operations - GAAP $ (106) $ (6,182) $ (7,058) $ (13,346) Interest exp

  28. Slide 28: Contact Information

    edit Master Appendix: title style Contact Information Investor Relations 800 South Street, Suite 230 Waltham, MA 02453 Phone: +1 (617) 375-3006 investorrelations@greatelmcap.com Adam Prior The Equity Group Inc. +1 (212) 836-9606 aprior@equityny.com Great Elm Group, Inc. | NASDAQ: GEG 28

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