Great Elm Group, Inc. · NASDAQ:GEG
Great Elm — Q2 2024 Earnings Presentation
16 slides from Great Elm's earnings presentation, Feb 14, 2024
Slide 1: Fiscal Second Quarter Ended December 31, 2023
February 14, 2024 Fiscal Second Quarter Ended December 31, 2023 NASDAQ: GEG
Slide 2: GEG Highlights
GEG Highlights • On February 8, 2024, GECC raised $24 million of capital from a special purpose vehicle (“SPV”) that acquired GECC common stock at net asset value (“NAV”), supported by a GEG investment of $6 million into the SPV, further growing recurring revenue streams and which we believe will de
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 capital raising initiatives in GEG’s alternative credit platforms are positioned to Improve drive growth of recurring revenue streams with high contribution margins Profitability • GEG’s supportive investments in the GECC capital raise and seed investment in GECIF are believed to
Slide 5: GEG Managed Vehicles
GEG Managed Vehicles GECC Private Funds Monomoy • Public BDC with ~$2701 million • Great Elm Credit Income Fund • Private Industrial REIT with AUM focuses on direct lending, $380+ million AUM • 16%1 of common stock held by syndicated credit and special o ~8% direct investment held GEG situations by
Slide 6: Summary Financial Position
Summary Financial Position1 GEG December 31, 2023 condensed balance sheet, excluding Consolidated Funds $ Million 12/31/2023 Cash & Marketable Securities2 $ 68.8 Current Liabilities $ 5.9 Investments 45.4 Long-Term Debt 25.9 Other Current and Long-Term Assets 24.1 Convertible Notes 38.1 Other Liabil
Slide 7: GECC & Monomoy Highlights
GECC & Monomoy Highlights • Positioned to pay cash incentive fees to • Monomoy REIT maintained strong GEG for third consecutive quarter quarterly activity: • Closed on three properties with • Reported strong NII of $0.43 per share, in-place leases, totaling ~$4mm covering the $0.35 distribution • Am
Slide 8: Fiscal 2024 Second Quarter Highlights
Fiscal 2024 Second Quarter Highlights February 14, 2024 8
Slide 9: Fiscal 2Q24 Financial Highlights
Fiscal 2Q24 Financial Highlights Revenue Net Income Adjusted EBITDA1 • Fiscal 2Q24 revenue up 50% • Net loss from continuing • Fiscal 2Q24 Adjusted EBITDA to $2.8 million vs. Fiscal 2Q23 operations of ($0.2) million for of $0.6 million, compared to revenue of $1.9 million Fiscal 2Q24, compared to ne
Slide 10: Assets Under Management
Assets Under Management $mm AUM $mm FPAUM $700 $655 $500 $461 $619 $437 $600 $400 $500 +6% +5% $400 $300 $300 $200 $200 $100 $100 $0 $0 12/31/2022 12/31/2023 12/31/2022 12/31/2023 $655 million of Assets Under Management $461 million of Fee-Paying AUM (“FPAUM”), (“AUM”), up 6% since December 31, 2022
Slide 11: Financial Review: Fiscal 2Q24 Balance Sheet
Financial Review: Fiscal 2Q24 Balance Sheet (in thousands) December 31, 2023 June 30, 2023 ASSETS Cash and cash equivalents $ 39,068 $ 60,165 Receivables from managed funds 3,492 3,308 Investments in marketable securities 29,698 24,595 Investments at fair value 39,312 32,611 Prepaid and other curren
Slide 12: Financial Review: Fiscal 2Q24 Income Statement
Financial Review: Fiscal 2Q24 Income Statement (in thousands) Three months ended December 31, Six months ended December 31, 2023 2022 2023 2022 Revenues $ 2,819 $ 1,879 $ 6,129 $ 3,739 Operating costs and expenses: Investment management expenses 2,839 2,311 5,601 4,300 Depreciation and amortization
Slide 13: Results By Quarter
Results By Quarter (in thousands) Three Months Ended December 31, September 30, June 30, March 31, December 31, 2023 2023 2023 2023 2022 NON-GAAP RECONCILIATION Net income (loss) from continuing operations - GAAP $ (239) $ 2,758 $ (5,256) $ (455) $ 29,693 Interest expense 1,061 1,062 1,050 1,095 1,9
Slide 14: Results Year-Over-Year
Results Year-Over-Year (in thousands) Three months ended December 31, Six months ended December 31, 2023 2022 2023 2022 NON-GAAP RECONCILIATION Net income (loss) from continuing operations - GAAP $ (239) $ 29,693 $ 2,519 $ 20,190 Interest expense 1,061 1,955 2,123 3,929 Income tax expense (benefit)
Slide 15: Contact Information
Contact Information Investor Relations Contact geginvestorrelations@greatelmcap.com February 14, 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