Loading...
01/11 16:24
Loading...
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
The earnings call highlights strong financial performance with tripled revenue and increased AUM, strategic initiatives like the CLO joint venture, and a robust cash position. The share repurchase program and strategic investments like CoreWeave are positive indicators. Despite unrealized losses and competitive pressures, the optimistic guidance and active capital management suggest a positive outlook. The absence of negative sentiment in the Q&A further supports this view. Overall, the stock is likely to experience a positive movement in the short term.
Total Revenue $9 million (tripled year-over-year); driven by the Monomoy BTS property sale.
Assets Under Management (AUM) $727 million (up 14% year-over-year); increased due to capital raises and growth in fee-paying assets.
Fee-Paying AUM $524 million (up 17% year-over-year); growth attributed to successful capital raises and increased asset management activities.
Net Loss from Continuing Operations $0.6 million (improved from a loss of $5.3 million in the prior year); improvement due to increased revenues and reduced losses from investments.
Adjusted EBITDA $1.2 million (up from $0.4 million in the prior year); driven by increased revenue and improved operational efficiency.
Cash and Marketable Securities Approximately $58 million; available for deployment across the asset management platform.
Dividend Income $2.3 million; includes a special dividend paid in December 2023.
Incentive Fees to GEG $2.7 million over the last 12 months; supported by GECC's performance and portfolio repositioning.
Gain on Sale from Property Over $1 million; realized from the first property sale in June.
Investment in CoreWeave $5 million; reflects strategic investment in a cloud AI start-up.
Repurchase of Convertible Notes Over $4 million principal at 47% of face value; part of capital structure improvement.
Stock Repurchase Program 1.2 million shares for $2.1 million; part of ongoing capital management strategy.
New Product Launches: Great Elm launched the Great Elm Credit Income Fund (GECIF) in November 2023, with plans to raise capital in fiscal 2025.
New Business Ventures: Monomoy BTS Construction Management was launched to provide consulting services for construction projects, generating initial fees in fiscal 2024.
Market Expansion: Great Elm Capital Corp raised over $90 million in fresh capital, increasing fee-paying assets under management by nearly 30%.
Real Estate Expansion: Monomoy BTS completed its first property sale in June 2024, with plans for further property sales and development in fiscal 2025.
Operational Efficiency: Total revenue tripled year-over-year to $9 million, driven by property sales and increased asset management fees.
Cash Position: Great Elm ended the quarter with nearly $60 million in cash and marketable securities.
Strategic Shifts: Great Elm is focusing on a streamlined, pure-play asset management business, divesting non-core operations to enhance shareholder value.
Joint Ventures: GECC formed a strategic joint venture to invest in CLOs, expected to generate increasing income.
Unrealized Losses: The financial accounting rules require marking the $9 million investment in SPVs to a materially lesser value, resulting in unrealized losses of $3.8 million, contributing to an overall net loss of $0.9 million for the year.
Regulatory Issues: The company must adhere to financial accounting rules and SEC filings, which could impact reporting and operational flexibility.
Competitive Pressures: The company faces competitive pressures in the alternative asset management space, necessitating continuous innovation and strategic partnerships to maintain market position.
Economic Factors: The performance of Great Elm Group is influenced by broader economic conditions, which can affect capital raising efforts and investment returns.
Supply Chain Challenges: The company is expanding its real estate platform, which may encounter supply chain challenges in construction and development projects.
Capital Raises: GECC raised over $90 million in fresh capital from February to July 2024, significantly growing fee-paying assets under management by nearly 30% from prior year.
Investment in CoreWeave: GEG invested $5 million in a 10% preferred financing for CoreWeave, a cloud AI start-up.
Launch of GECIF: Great Elm launched the Great Elm Credit Income Fund (GECIF) in November 2023, with plans to raise capital in fiscal 2025.
Monomoy BTS Expansion: Monomoy BTS had a milestone fourth quarter, with plans to sell a second property in fiscal 2025 and a robust pipeline of approximately 30 specifications entering 2025.
Joint Venture in CLOs: GECC formed a strategic joint venture to invest in CLOs, expected to generate increasing income.
Revenue Expectations: Total revenue for fiscal fourth quarter was $9 million, tripling year-over-year, with expectations for continued growth in fiscal 2025.
AUM Growth: AUM increased to $749 million, up 9% from March 31 and 17% from the prior year quarter end, with fee-paying AUM growing to $546 million, up 11% from March 31.
Future Profitability: Expect continued profitability in fiscal 2025 from Monomoy BTS and the construction management business.
Financial Position: As of June 30, GEG had approximately $58 million in cash and marketable securities to deploy.
Incentive Fees: GECC's performance supported the payment of $2.7 million in incentive fees to GEG over the last 12 months.
Dividend Income: Great Elm Group received $2.3 million of dividend income in fiscal year 2024, which included a special dividend paid in December 2023.
Share Repurchase Program: Great Elm Group repurchased 1.2 million shares of GEG common stock in the market for $2.1 million as part of their stock repurchase program.
Convertible Notes Repurchase: The company repurchased over $4 million principal of their 5% convertible notes at 47% of face value.
The earnings call reveals several negative indicators: a net loss of $7.9 million, unrealized losses in investments, and an adjusted EBITDA loss. Despite revenue growth and a stock repurchase program, the debt refinancing increases overall debt. The Q&A session highlights concerns about unclear management responses and lack of guidance on Monomoy REIT. These factors suggest a negative market reaction, likely between -2% to -8%.
The earnings call highlights several positive developments: a strong increase in net income, a 140% revenue growth excluding one-time sales, increased dividends, and a robust stock repurchase program. The strategic partnership and credit business expansion further boost prospects. Despite potential market risks, the absence of Q&A concerns suggests confidence in management. The positive financial performance and strategic initiatives suggest a likely stock price increase of 2% to 8% over the next two weeks.
The company's earnings report shows mixed signals: a 15% revenue growth and increased AUM are positive, but a net loss of $4.5M and reduced EBITDA are concerning. The share buyback at a discount and strategic acquisitions are positive, yet market volatility and investment risks pose challenges. The absence of Q&A insights and unclear future profitability amidst unrealized losses suggest a neutral outlook for the stock price in the short term.
The earnings call highlights strong financial performance with tripled revenue and increased AUM, strategic initiatives like the CLO joint venture, and a robust cash position. The share repurchase program and strategic investments like CoreWeave are positive indicators. Despite unrealized losses and competitive pressures, the optimistic guidance and active capital management suggest a positive outlook. The absence of negative sentiment in the Q&A further supports this view. Overall, the stock is likely to experience a positive movement in the short term.
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
