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Great Elm Capital (GECC) - 2025 Q1 - Quarterly Results
GECCGreat Elm Capital (GECC)2025-05-05 20:52

Financial Performance - Total investment income for Q1 2025 reached a record 12.5million,withnetinvestmentincome(NII)of12.5 million, with net investment income (NII) of 4.6 million, or 0.40pershare,comparedto0.40 per share, compared to 2.1 million, or 0.20pershare,inQ42024[3][4]−TotalinvestmentincomeforQ12025was0.20 per share, in Q4 2024[3][4] - Total investment income for Q1 2025 was 12,495,000, an increase of 40% compared to 8,909,000inQ12024[19]−Netinvestmentincomebeforetaxesroseto8,909,000 in Q1 2024[19] - Net investment income before taxes rose to 4,644,000, up 45.5% from 3,198,000inthesamequarterlastyear[19]−Earningspershare(basicanddiluted)improvedto3,198,000 in the same quarter last year[19] - Earnings per share (basic and diluted) improved to 0.04, compared to a loss of (0.05)inQ12024[19]−Netinvestmentincomepershare(basicanddiluted)increasedto(0.05) in Q1 2024[19] - Net investment income per share (basic and diluted) increased to 0.40 from 0.37year−over−year[19]DistributionandCashFlow−Thequarterlydistributionwasincreasedby5.70.37 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 10.09onMay2,2025[4][10]−CashdistributionsfromtheCLOJVamountedto10.09 on May 2, 2025[4][10] - Cash distributions from the CLO JV amounted to 3.8 million in Q1 2025, significantly up from 0.5millioninQ42024,withanadditional0.5 million in Q4 2024, with an additional 4.3 million received in April 2025[4] Investment Activity - Approximately 37.4millionwasdeployedinto16investmentsduringQ12025,achievingaweightedaveragecurrentyieldof15.137.4 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 7.9millionforQ12025,resultinginnetrealizedandunrealizedlossesofapproximately7.9 million for Q1 2025, resulting in net realized and unrealized losses of approximately 4.1 million[8] - Total expenses increased to 7,851,000,ariseof37.47,851,000, a rise of 37.4% from 5,711,000 in Q1 2024[19] - Management fees rose to 1,272,000,up35.31,272,000, up 35.3% from 940,000 in Q1 2024[19] - Interest expense increased significantly to 4,251,000,comparedto4,251,000, compared to 2,807,000 in Q1 2024, reflecting higher borrowing costs[19] Asset and Debt Management - Net assets decreased to 132.3million,or132.3 million, or 11.46 per share, down from 136.1million,or136.1 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 1.3millionincashasofMarch31,2025,withtotaldebtoutstandingof1.3 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,asignificantdecreasefrom264,000, a significant decrease from 2,356,000 in Q1 2024[19] - Net change in unrealized depreciation on investments was (4,387,000),comparedto(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]