Great Elm Group Announces Fiscal 2024 Financial Results
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Great Elm Group Announces Fiscal 2024 Financial Results
Great Elm Group, Inc. (NASDAQ: GEG), an alternative asset manager, has announced the financial results for its fiscal fourth quarter and year ended June 30, 2024.
Fiscal Fourth Quarter Highlights
Key Achievements:
- Great Elm Capital Corp. ("GECC") successfully raised $34 million in additional debt and equity capital since April 2024.
- Both fee-paying assets under management ("FPAUM") and total assets under management ("AUM") grew by 6% during the quarter.
- Pro forma FPAUM and AUM reached approximately $546 million and $749 million, respectively, representing a growth of 11% and 9% from the previous quarter.
- Total revenue for the fourth quarter increased significantly to $8.9 million, compared to $3.0 million in the same quarter last year.
- The successful sale of Monomoy BTS's first build-to-suit property in June contributed over $6 million in revenue and more than $1 million in profit.
- Net loss from continuing operations was reduced to ($0.6) million, a significant improvement from ($5.3) million in the previous year.
- Adjusted EBITDA for the fourth quarter recorded at $1.2 million, compared to $0.4 million from the prior-year quarter.
- As of June 30, 2024, GEG reported approximately $58 million in cash and marketable securities, supporting ongoing growth initiatives.
- During the quarter, GEG repurchased 1.2 million shares for a total of $2.1 million and retired $4.2 million in convertible notes, realizing a gain of approximately $2.3 million.
Full Fiscal Year 2024 Highlights
Significant Milestones:
- GECC raised over $92 million of new capital, positioning GEG for future growth in management and incentive fee revenue.
- FPAUM and AUM saw increases of 17% and 14%, respectively, from June 30, 2023.
- Total revenue for the fiscal year more than doubled to $17.8 million, driven primarily by property sales and growth in fees from credit and real estate segments.
- Despite the increase in revenue, the company reported a net loss of ($0.9) million, compared to a net income of $14.5 million in the previous year.
- Adjusted EBITDA for the fiscal year ended June 30, 2024, stood at $4.8 million, a significant rise from $1.0 million in fiscal year 2023.
- New initiatives included the launch of the Great Elm Credit Income Fund LLC and Monomoy BTS Construction Management, LLC.
Management Commentary
Jason Reese, Chief Executive Officer of GEG, stated that the company made considerable progress throughout the fiscal year 2024 across all business dimensions. The organization significantly enhanced its fee revenue through increased management fees and incentive fees, particularly within GECC, credit, and real estate sectors. GEG also launched additional products including a private credit fund and a construction management consulting service.
Financial Overview for the Fiscal Fourth Quarter and Year 2024
During fiscal year 2024, Great Elm Group reported a revenue increase of 106% year-over-year, emphasizing the resilience of the organization despite market fluctuations and investment challenges. Unique investment opportunities and tactical acquisitions remain a focus as they pertain to the strategic growth plans for fiscal 2025.
Frequently Asked Questions
What are the key financial results for Great Elm Group in fiscal 2024?
Great Elm Group reported a significant increase in revenue, total revenue reaching $17.8 million, along with substantial growth in management and incentive fees.
How did the company's assets perform in the fourth quarter?
FPAUM and AUM both grew by 6% in the fourth quarter, reflecting solid management strategies and increased investor confidence.
What challenges did Great Elm Group face in fiscal 2024?
The company faced unrealized losses on investments, which contributed to a net loss for the fiscal year, despite substantial revenue growth.
What strategic initiatives did Great Elm Group undertake?
The company launched new funds and consulting services in the real estate sector, aimed at diversifying its investment strategy and revenue streams.
How does Great Elm Group plan to grow in fiscal 2025?
Great Elm Group will focus on expanding its core businesses in credit and real estate, while seeking unique investment opportunities to enhance value for shareholders.
Media & Investor Contact:
Investor Relations
geginvestorrelations@greatelmcap.com
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