Press Release: Great Elm Group Reports Fiscal 2025 First Quarter Financial Results

Dow Jones2024-11-12

Included in the financial tables below is a reconciliation of Adjusted EBITDA to the most directly comparable US GAAP financial measure, net income from continuing operations.

Endnotes

(1) Pro forma FPAUM incorporates net proceeds from $5.4 million of GECC 8.125% Notes due 2029 issued in October as well as the redemption in October of $45.3 million of GECC 6.75% Notes due January 2025.

(2) Cash and marketable securities include approximately $40 thousand of restricted cash.

(3) Assumes invested at inception on November 1, 2023, and remained invested throughout the succeeding eleven months, net of fees and expenses. Performance results should not be regarded as final until audited financial statements are issued covering the period shown. Past performance is no guarantee of future results. This press release does not constitute an offer to sell or a solicitation of an offer to buy interests in any investment vehicle managed by Great Elm or its affiliates. Any such offer or solicitation will only be made pursuant to the applicable offering documents for such investment vehicle.

Media & Investor Contact:

Investor Relations

geginvestorrelations@greatelmcap.com

Great Elm Group, Inc.

Condensed Consolidated Balance Sheets (unaudited)

Dollar amounts in thousands (except per share data)

 
           ASSETS               September 30, 2024     June 30, 2024 
----------------------------   --------------------   --------------- 
Current assets 
  Cash and cash equivalents     $            44,150    $       48,147 
  Restricted cash                                40             1,571 
  Receivables from managed 
   funds                                      3,854             2,259 
  Investments in marketable 
   securities                                 7,460             9,929 
  Investments, at fair value                 47,557            44,585 
  Prepaid and other current 
   assets                                     1,439             1,215 
  Real estate under 
   development                                5,786             5,769 
  Assets of Consolidated 
  Funds: 
   Cash and cash equivalents                  2,229             2,371 
   Investments, at fair value                11,909            11,471 
   Other assets                                 246               253 
                                   ----------------       ----------- 
    Total current assets                    124,670           127,570 
                                   ----------------       ----------- 
Identifiable intangible 
 assets, net                                 10,773            11,037 
Right-of-use assets                             141               225 
Other assets                                  1,682             1,614 
                                   ----------------       ----------- 
    Total assets                $           137,266    $      140,446 
                                   ================       =========== 
      LIABILITIES AND 
    STOCKHOLDERS' EQUITY 
---------------------------- 
Current liabilities 
  Accounts payable              $               243    $          317 
  Payable for securities 
   purchased                                     24                 - 
  Accrued expenses and other 
   current liabilities                        3,117             7,009 
  Current portion of related 
   party payables                               224               634 
  Current portion of lease 
   liabilities                                   64               137 
  Liabilities of 
  Consolidated Funds: 
   Payable for securities 
    purchased                                     -               100 
   Accrued expenses and other 
    liabilities                                 172               162 
                                   ----------------       ----------- 
    Total current liabilities                 3,844             8,359 
                                   ----------------       ----------- 
Lease liabilities, net of 
 current portion                                 35                57 
Long-term debt (face value 
 $26,945)                                    26,160            26,090 
Related party payables, net 
of current portion                                -                 - 
Convertible notes (face value 
 $35,494 and $35,494, 
 including $16,174 and 
 $16,174 held by related 
 parties, respectively)                      34,925            34,900 
Other liabilities                               718               845 
                                   ----------------       ----------- 
    Total liabilities                        65,682            70,251 
                                   ----------------       ----------- 
Commitments and 
contingencies 
Stockholders' equity 
  Preferred stock, $0.001 
  par value; 5,000,000 
  authorized and zero 
  outstanding                                     -                 - 
  Common stock, $0.001 par 
   value; 350,000,000 shares 
   authorized and 32,134,843 
   shares issued and 
   28,743,290 outstanding at 
   September 30, 2024; and 
   31,875,285 shares issued 
   and 30,494,448 outstanding 
   at June 30, 2024                              28                30 
  Additional paid-in-capital              3,314,191         3,315,638 
  Accumulated deficit                    (3,250,315)       (3,252,954) 
                                   ----------------       ----------- 
    Total Great Elm Group, 
     Inc. stockholders' 
     equity                                  63,904            62,714 
    Non-controlling interests                 7,680             7,481 
                                   ----------------       ----------- 
    Total stockholders' 
     equity                                  71,584            70,195 
                                   ----------------       ----------- 
    Total liabilities and 
     stockholders' equity       $           137,266    $      140,446 
                                   ================       =========== 
 

Great Elm Group, Inc.

Condensed Consolidated Statements of Operations (unaudited)

Amounts in thousands (except per share data)

 
                           For the three months ended September 30, 
                       ------------------------------------------------ 
                                2024                       2023 
                       ----------------------      -------------------- 
Revenues                 $              3,992       $             3,310 
Cost of revenues                          635                         - 
Operating costs and 
expenses: 
   Investment 
    management 
    expenses                            3,058                     2,762 
   Depreciation and 
    amortization                          273                       283 
   Selling, general 
    and 
    administrative                      2,006                     1,715 
   Expenses of 
    Consolidated 
    Funds                                  16                         - 
                       ---  -----------------          ---------------- 
    Total operating 
     costs and 
     expenses                           5,353                     4,760 
                       ---  -----------------          ---------------- 
     Operating loss                    (1,996)                   (1,450) 
Dividends and 
 interest income                        1,558                     1,986 
Net realized and 
 unrealized gain                        3,778                     3,284 
Net realized and 
 unrealized gain on 
 investments of 
 Consolidated Funds                       278                         - 
Interest and other 
 income of 
 Consolidated Funds                       384                         - 
Interest expense                       (1,028)                   (1,062) 
     Income before 
      income taxes 
      from continuing 
      operations                        2,974                     2,758 
                       ---  -----------------          ---------------- 
Income tax benefit 
(expense)                                   -                         - 
                       ---  -----------------          ---------------- 
Net income from 
 continuing 
 operations                             2,974                     2,758 
                       ---  -----------------          ---------------- 
Discontinued 
operations: 
     Net income from 
      discontinued 
      operations                            -                        16 
                       ---  -----------------          ---------------- 
Net income               $              2,974       $             2,774 
                       ===  =================          ================ 
   Less: net income 
    attributable to 
    non-controlling 
    interest, 
    continuing 
    operations                            335                         - 
                       ---  -----------------          ---------------- 
Net income 
 attributable to 
 Great Elm Group, 
 Inc.                    $              2,639       $             2,774 
                       ===  =================          ================ 
Net income 
attributable to 
shareholders per 
share 
     Basic               $               0.09       $              0.09 
     Diluted                             0.08                      0.08 
Weighted average 
shares outstanding 
     Basic                             29,079                    29,579 
     Diluted                           40,469                    41,860 
 

Great Elm Group, Inc.

Reconciliation from Net Income from Continuing Operations to Adjusted EBITDA

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November 11, 2024 16:16 ET (21:16 GMT)

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