Great Elm Capital (GECC) Q1 2025 Earnings Call May 06, 2025 08:30 AM ET Speaker0 Greetings and welcome to the Great Elm Capital Corp First Quarter twenty twenty five Financial Results Call. At this time, all participants are in a listen only mode. A brief question and answer session will follow the formal presentation. As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Peter Skusa, a representative of the company. Thank you. You may begin. Speaker1 Hello and than ...

分组1 - Great Elm Capital (GECC) reported quarterly earnings of $0.40 per share, exceeding the Zacks Consensus Estimate of $0.39 per share, and up from $0.37 per share a year ago, representing an earnings surprise of 2.56% [1] - The company posted revenues of $12.5 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.75%, compared to revenues of $8.91 million a year ago [2] - Over the last four quarters, Great Elm Capital has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] 分组2 - The stock has underperformed, losing about 8.2% since the beginning of the year, while the S&P 500 declined by 3.3% [3] - The earnings outlook for Great Elm Capital is favorable, with a current consensus EPS estimate of $0.41 on $12.12 million in revenues for the coming quarter and $1.46 on $44.99 million in revenues for the current fiscal year [7] - The Zacks Industry Rank for Financial - Investment Management is currently in the bottom 13% of over 250 Zacks industries, indicating potential challenges for stock performance [8]

Investor Presentation Quarter Ended March 31, 2025 May 6, 2025 NASDAQ: GECC Forward Looking Statement Statements in this communication that are not historical facts are "forward-looking" statements within the meaning of the federal securities laws. These statements include statements regarding our future business plans and expectations. These statements are often, but not always, made through the use of words or phrases such as "expect," "anticipate," "should," "will," "estimate," "designed," "seek," "conti ...

Financial Performance - Total investment income for Q1 2025 reached a record $12.5 million, with net investment income (NII) of $4.6 million, or $0.40 per share, compared to $2.1 million, or $0.20 per share, in Q4 2024[3][4] - Total investment income for Q1 2025 was $12,495,000, an increase of 40% compared to $8,909,000 in Q1 2024[19] - Net investment income before taxes rose to $4,644,000, up 45.5% from $3,198,000 in the same quarter last year[19] - Earnings per share (basic and diluted) improved to $0.04, compared to a loss of $(0.05) in Q1 2024[19] - Net investment income per share (basic and diluted) increased to $0.40 from $0.37 year-over-year[19] Distribution and Cash Flow - The quarterly distribution was increased by 5.7% to $0.37 per share, with a projected annualized yield of 14.7% based on the closing price of $10.09 on May 2, 2025[4][10] - Cash distributions from the CLO JV amounted to $3.8 million in Q1 2025, significantly up from $0.5 million in Q4 2024, with an additional $4.3 million received in April 2025[4] Investment Activity - Approximately $37.4 million was deployed into 16 investments during Q1 2025, achieving a weighted average current yield of 15.1%[7] - Total investments held at fair value as of March 31, 2025, were $341.9 million, with a weighted average current yield on the debt portfolio of 12.3%[6][18] Expenses and Losses - The company incurred total expenses of approximately $7.9 million for Q1 2025, resulting in net realized and unrealized losses of approximately $4.1 million[8] - Total expenses increased to $7,851,000, a rise of 37.4% from $5,711,000 in Q1 2024[19] - Management fees rose to $1,272,000, up 35.3% from $940,000 in Q1 2024[19] - Interest expense increased significantly to $4,251,000, compared to $2,807,000 in Q1 2024, reflecting higher borrowing costs[19] Asset and Debt Management - Net assets decreased to $132.3 million, or $11.46 per share, down from $136.1 million, or $11.79 per share, at the end of Q4 2024, primarily due to unrealized losses[4][18] - The asset coverage ratio was 163.8% as of March 31, 2025, compared to 169.7% at the end of Q4 2024[4] - The company held $1.3 million in cash as of March 31, 2025, with total debt outstanding of $207.4 million[9] Market Outlook - The company plans to continue monitoring the macro environment and deploy capital into opportunities with compelling risk-adjusted returns[3] Unrealized Gains and Losses - Net realized gain on investment transactions was $264,000, a significant decrease from $2,356,000 in Q1 2024[19] - Net change in unrealized depreciation on investments was $(4,387,000), compared to $(6,007,000) in Q1 2024, indicating an improvement[19] Shareholder Information - Weighted average shares outstanding increased to 11,544,415 from 8,659,344 in the previous year[19]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2025 or TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number: 814-01211 Great Elm Capital Corp. (Exact name of registrant as specified in its charter) Maryland 81-2621577 (State or other jurisdiction of incorporation or organizat ...

Company to Host Conference Call and Webcast at 8:30 AM ET on May 6, 2025PALM BEACH GARDENS, Fla., May 05, 2025 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “our,” the “Company” or “GECC”) (NASDAQ: GECC), a business development company, today announced its financial results for the first quarter ended March 31, 2025. First Quarter and Other Recent Highlights GECC increased its quarterly distribution by 5.7% for the first quarter of 2025 to $0.37 per share, from $0.35 per share, which was paid on Marc ...

Conference Call Scheduled for Tuesday, May 6, 2025 at 8:30 a.m. ETPALM BEACH GARDENS, Fla., April 30, 2025 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (the “Company” or “GECC”) (NASDAQ: GECC), a business development company, today announced that it will release its financial results for the first quarter ended March 31, 2025, after the close of market trading on Monday, May 5, 2025. The results will be discussed in a conference call on Tuesday, May 6, 2025, at 8:30 a.m. ET. Date/Time:Tuesday, May 6, 2025 – ...

Great Elm Capital (GECC) Q4 2024 Earnings Call March 11, 2025 02:34 PM ET Company Participants Peter Sceusa - Investor Relations Senior AssociateMatt Kaplan - CEO & PresidentKeri Davis - CFO & TreasurerMichael Keller - President - Specialty Finance BusinessMickey Schleien - MD - Equity ResearchErik Zwick - Managing Director, Equity Research Operator Greetings, and welcome to the Great Elm Capital Corporation Fourth Quarter twenty twenty four Financial Results Call. At this time, all participants are in a li ...

Great Elm Capital Corporation (NASDAQ:GECC) Q4 2024 Results Conference Call March 11, 2025 8:30 AM ET Company Participants Matt Kaplan - Chief Executive Officer Keri Davis - Chief Financial Officer Mike Keller - President, Great Elm Specialty Finance Conference Call Participants Mickey Schleien - Ladenburg Thalmann Erik Zwick - Lucid Capital Markets Operator Greetings, and welcome to the Great Elm Capital Corporation Fourth Quarter 2024 Financial Results Call. [Operator Instructions] As a reminder, this con ...

Market Share and Product Segments - First Brands, Inc. holds a 26% market share in the aftermarket brake components market, leading with its Centric, Raybestos, Specialty, and private label offerings[26] - The Filter Products segment of First Brands commands a 30% market share, driven by its FRAM and Champion Laboratory brands[26] - First Brands' Wiper Segment is the top supplier of aftermarket wiper blades, with a significant 37% market share through brands like Trico, ANCO, and Michelin[26] Investment Management and Fees - The base management fee for GECM is set at an annual rate of 1.50% of average adjusted gross assets, payable quarterly[49] - The Income Incentive Fee is based on pre-incentive fee net investment income, which includes interest and dividend income minus operating expenses[51] - The fixed hurdle rate for pre-incentive fee net investment income is 1.75% per quarter, equating to 7.00% annualized[53] - For the year ended December 31, 2024, the company incurred $4.5 million in base management fees and $2.6 million in income-based fees accrued during the period[66] - For the year ended December 31, 2023, the company incurred $3.5 million in base management fees and $3.1 million in income-based fees accrued during the period, with no capital gains incentive fees earned[67] - For the year ended December 31, 2022, the company incurred $3.2 million in base management fees and $0.6 million in income-based fees accrued during the period, with no capital gains incentive fees earned[68] - The Capital Gains Incentive Fee is calculated as 20% of the positive difference between cumulative realized capital gains and cumulative realized capital losses, minus any fees paid in prior years[57] - The pre-incentive fee net investment income must exceed a hurdle rate of 1.75% to earn an incentive fee, with a "catch up" provision applicable for income exceeding 2.1875%[60] - Aggregate realized capital gains for Year 2 in Assumption 1 were $30.0 million, leading to a Capital Gains Incentive Fee of $6.0 million[63] - Aggregate realized capital gains for Year 3 in Assumption 1 were $31.0 million, resulting in a Capital Gains Incentive Fee calculated as greater than zero[64] - The company deferred cash payment of any Income Incentive Fee exceeding 20% of the Cumulative Pre-Incentive Fee Net Return during the Trailing Twelve Quarters[56] - The cumulative aggregate realized capital gains are calculated as the sum of positive differences between net sales price and cost basis of investments[58] Compliance and Regulatory Requirements - The company intends to qualify as a regulated investment company (RIC) and must derive at least 90% of its gross income from qualifying sources each taxable year[92] - To maintain RIC status, the company must ensure that at least 50% of its total assets are represented by cash, U.S. Government securities, and other regulated investment companies, with no more than 25% in securities of any one issuer[92] - If the company fails to meet the 90% gross income requirement, it may be subject to corporate-level U.S. federal income tax[93] - The company must distribute at least 90% of its investment company taxable income to avoid U.S. federal income tax on that income[95] - A 4% federal excise tax is imposed if the company does not meet certain distribution requirements during the calendar year[97] - The company is prohibited from making cash distributions or repurchasing stock unless it meets applicable asset coverage ratios[87] - The company must maintain a bond issued by a reputable fidelity insurance company as part of its BDC requirements[77] - The company may not acquire assets unless at least 70% of its total assets are qualifying assets[80] - The Board must consist of a majority of directors who are not "interested persons" as defined by the Investment Company Act[77] - The company has adopted a code of business conduct and ethics applicable to its directors and officers[88] - The company maintains an insider trading policy to govern securities transactions by its directors and officers[90] - The company is required to meet various distribution, income, and asset-related requirements to qualify as a RIC, with no assurance of continued compliance[114] Financial Risks and Investment Strategies - The company is subject to financial risks, including changes in market interest rates, with approximately $179.8 million in principal amount of debt investments bearing variable interest rates as of December 31, 2024[386] - Interest rate increases could lead to higher gross investment income for the company, impacting net investment income positively if not offset by increased operating expenses[386] - The company may face challenges in making distributions necessary to satisfy tax requirements due to the nature of its investments[102] - If the company invests in foreign securities, it may be subject to withholding and other foreign taxes, which could affect stockholder tax credits[105] - The company may need to restructure investments in portfolio companies facing financial difficulties, potentially leading to non-qualifying income[103] - The company’s ability to pay dividends may be limited by loan covenants, which could jeopardize its RIC status[110] - The company may employ subsidiaries treated as U.S. corporations to manage income that could disqualify it from RIC status, leading to reduced yields for stockholders[113] Governance and Agreements - The Investment Management Agreement was renewed on July 23, 2024, and is effective until September 26, 2025[75] - The Board considered factors such as the quality of advisory services, investment performance, and economies of scale in approving the Investment Management Agreement[76] - GECM is indemnified for damages arising from its services under the Investment Management Agreement, except in cases of willful misconduct or gross negligence[73] - The Administration Agreement with GECM includes provisions for indemnification from the company for damages arising from GECM's services, absent willful misconduct[117] - The company bears all costs and expenses incurred in its operations and transactions not specifically assumed by GECM[116] - The company has a non-exclusive, royalty-free license to use the name "Great Elm Capital Corp." as long as GECM remains its investment adviser[118] - The Administration Agreement may be terminated by either party with 60 days' written notice[115] Distribution and Earnings - The Board set a distribution for the quarter ending March 31, 2025, at a rate of $0.37 per share, fully from distributable earnings[388] - The aggregate amount of brokerage commissions paid by the company during the three most recent fiscal years is approximately $129, with nearly 100% of these commissions paid to Imperial Capital, LLC[120] - GECM is responsible for selecting brokers and dealers for publicly traded securities transactions, aiming to obtain the best net results[119]