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Great Elm (GEG) - 2025 Q2 - Earnings Call Transcript
GEGGreat Elm (GEG)2025-02-07 18:33
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Financial Data and Key Metrics Changes - Total revenue for the fiscal second quarter 2025 grew 24% year-over-year to 3.5million,primarilydrivenbyincreasedrevenuefromMonomoyBTSandmanagementfeesfromGECC[24][25]−Netincomefromcontinuingoperationswas3.5 million, primarily driven by increased revenue from Monomoy BTS and management fees from GECC [24][25] - Net income from continuing operations was 1.4 million compared to a net loss of 0.2millionintheprioryearperiod[25]−AdjustedEBITDAforthequarterwas0.2 million in the prior year period [25] - Adjusted EBITDA for the quarter was 1 million, up from 0.6millionintheprioryear[25]−CashonthebalancesheetasofDecember31wasapproximately0.6 million in the prior year [25] - Cash on the balance sheet as of December 31 was approximately 44 million, with a book value per share of approximately 2.30[25][26]BusinessLineDataandKeyMetricsChanges−Fee−payingassetsundermanagement(AUM)reachedapproximately2.30 [25][26] Business Line Data and Key Metrics Changes - Fee-paying assets under management (AUM) reached approximately 538 million, representing a 17% increase year-over-year, primarily driven by the BDC [12][25] - Total AUM increased to approximately 751million,up14751 million, up 14% from the prior year quarter end [25] - Base management fee from GECC grew 33% year-over-year to 1.2 million, with approximately 0.5millionearnedinincentivefeesthisquarter[15]MarketDataandKeyMetricsChanges−GreatElmCapitalCorp.raisedanadditional0.5 million earned in incentive fees this quarter [15] Market Data and Key Metrics Changes - Great Elm Capital Corp. raised an additional 13.2 million of equity at net asset value in December, marking its third equity capital raise in calendar 2024 [9][12] - GECC's net asset value has nearly doubled since the management refresh in March 2022, delivering significant value to shareholders [14] Company Strategy and Development Direction - The company is evolving as a streamlined alternative asset management business, focusing on expanding its core credit and real estate platforms [8] - The acquisition of Greenfield CRE is expected to enhance the company's real estate capabilities and create a fully integrated construction vertical [17][18] - The company remains committed to executing development projects to drive profitability and deliver value for tenants and shareholders [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the performance of credit and real estate businesses, highlighting the acquisition of Greenfield CRE as a strategic growth initiative [22] - The company plans to continue evaluating strategic opportunities to expand its businesses and product offerings with attractive risk-adjusted return profiles [23] Other Important Information - The company has repurchased approximately 4.1 million shares for 7.4millionunderitsexpanded7.4 million under its expanded 20 million buyback program, representing a 20% discount to book value [20][21] - The company maintains a strong balance sheet and capital position, enabling support for future growth initiatives [21] Q&A Session Summary - There were no questions during the Q&A session [27]