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01/11 16:24
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Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
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.
Total Revenue $3,200,000, growing 15% year over year, primarily driven by increased revenue from real estate project management fees and rental income, as well as increased management fees from attributable to fee paying AUM growth.
Assets Under Management (AUM) Approximately $768,000,000, up 12% year over year.
Fee Paying AUM Approximately $565,000,000, representing a 15% increase over the prior year period, primarily driven by the BDC, Great Elm Capital Corp, which raised approximately $147,000,000 through equity and debt issuances.
Base Management Fees from GECC $1,300,000, growing over 40% year over year.
Net Loss $4,500,000, compared to a net loss of $2,900,000 for the prior year period, primarily driven by unrealized losses related to certain investment positions.
Adjusted EBITDA $500,000, compared to $1,200,000 in the prior year period.
Cash Position Approximately $32,000,000 in cash available at quarter end.
Book Value per Share Approximately $2.14.
Share Repurchase Approximately 4,800,000 shares repurchased for $8,700,000 at an average cost of $1.84 per share, representing approximately a 15% discount to the quarter end book value.
Monomoy Construction Services Launch: In February, we launched Monomoy Construction Services, an integrated full service construction business with the strategic acquisition of Greenfield CRE, a leading construction management company.
Great Elm Credit Income Fund Performance: Great Elm Credit Income Fund has delivered returns on invested capital approximately 13.9 net of fees since inception through March 2025.
Assets Under Management Growth: We continue to grow our assets under management increasing our fee paying AUM by 15% on a year over year basis, reaching approximately $565,000,000.
GECC Equity Raises: GECC raised approximately $147,000,000 through equity and debt issuances in calendar twenty twenty four.
GECC At Market Offering: GECC launched an at the market offering to sell common shares at NAV or better, expected to provide an additional avenue for growth in assets under management.
Share Repurchase Program: We continued to repurchase shares at a meaningful discount to book value, executing on our $20,000,000 buyback program.
Cash Position: We ended the quarter with approximately $32,000,000 in cash available to facilitate continued growth across our asset management platforms.
Acquisition of Greenfield CRE: In February, we significantly expanded our real estate capabilities through the acquisition of Greenfield CRE, enhancing our operational efficiencies and revenue opportunities.
Expansion of Real Estate Services: MCS expands our owner rep consulting services with third parties, adding accretive revenue opportunities and enhancing operational efficiencies.
Net Loss: The company reported a net loss of $4,500,000 for the quarter, primarily driven by unrealized losses related to investments in CoreWeave and GECC shares, which were marked lower amid broader market volatility.
Market Volatility: The CEO noted that uncertainty can drive asset price volatility in the near term, which may create attractive entry points into investment opportunities but also poses risks to current investments.
Regulatory Risks: The company mentioned the importance of referring to SEC filings for factors that could cause actual results to differ materially from forward-looking statements, indicating potential regulatory risks.
Economic Factors: The management acknowledged that broader market conditions could impact the valuation of their investments, suggesting that economic factors are a risk to their financial performance.
Competitive Pressures: The company is focused on expanding its platform and growing assets under management, indicating that competitive pressures in the alternative asset management space are a challenge.
Investment Risks: The company highlighted the risks associated with their unique investments, such as the convertible preferred financing for CoreWeave, which may be affected by market conditions.
Strategic Initiatives: Launched Monomoy Construction Services through the acquisition of Greenfield CRE, enhancing real estate capabilities and creating a full-service construction vertical.
Growth in Assets Under Management: Increased fee paying AUM by 15% year over year, reaching approximately $565 million.
Share Repurchase Program: Executed a $20 million buyback program, repurchasing approximately 4.8 million shares at an average cost of $1.84 per share.
Investment in GECC: Participated in three equity raises at GECC with a combined investment of approximately $12 million, facilitating a 40% increase in fee paying AUM.
Revenue Expectations: Total revenue for the quarter was $3.2 million, growing 15% year over year.
Future Profitability: Anticipate continued profitability across the Monomoy platform as development projects progress.
Cash Position: Ended the quarter with approximately $32 million in cash to support future growth initiatives.
Investment Outlook: Expect unrealized losses to reverse over time as market conditions stabilize, maintaining confidence in investments.
Share Buyback Program: Executed a $20,000,000 buyback program, repurchasing approximately 4,800,000 shares for $8,700,000 at an average cost of $1.84 per share, representing a 15% discount to the quarter end book value per share of $2.14.
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.
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