Great Elm Group Reports Financial Results for Fiscal 2024
Great Elm Group, Inc. (NASDAQ: GEG), an alternative asset manager, has released its financial results for the fourth quarter and the entire fiscal year ending June 30, 2024.
Highlights from the Fourth Quarter
Notable Achievements:
- Great Elm Capital Corp. ("GECC") successfully raised $34 million in additional debt and equity capital since April 2024.
- During the quarter, both fee-paying assets under management ("FPAUM") and total assets under management ("AUM") increased by 6%.
- Pro forma FPAUM and AUM reached approximately $546 million and $749 million, respectively, marking an 11% and 9% growth from the previous quarter.
- Total revenue for the fourth quarter surged to $8.9 million, a significant rise from $3.0 million in the same quarter last year.
- The successful sale of Monomoy BTS's first build-to-suit property in June generated over $6 million in revenue and more than $1 million in profit.
- The net loss from continuing operations improved to ($0.6) million, a notable recovery from ($5.3) million the previous year.
- Adjusted EBITDA for the fourth quarter was reported at $1.2 million, up from $0.4 million in the same quarter last year.
- As of June 30, 2024, GEG had approximately $58 million in cash and marketable securities, which supports its ongoing growth initiatives.
- During the quarter, GEG repurchased 1.2 million shares at a total cost of $2.1 million and retired $4.2 million in convertible notes, achieving a gain of around $2.3 million.
Highlights from the Full Fiscal Year 2024
Key Milestones:
- GECC raised over $92 million in new capital, positioning GEG for future growth in management and incentive fee revenues.
- FPAUM and AUM increased by 17% and 14%, respectively, compared to June 30, 2023.
- Total revenue for the fiscal year more than doubled to $17.8 million, primarily driven by property sales and growth in fees from credit and real estate segments.
- Despite the revenue increase, the company reported a net loss of ($0.9) million, a decline from a net income of $14.5 million in the previous year.
- Adjusted EBITDA for the fiscal year ending June 30, 2024, reached $4.8 million, a substantial increase from $1.0 million in fiscal year 2023.
- New initiatives included launching the Great Elm Credit Income Fund LLC and Monomoy BTS Construction Management, LLC.
Comments from Management
Jason Reese, Chief Executive Officer of GEG, remarked that the company made significant strides during fiscal year 2024 across all areas of its business. The organization notably enhanced its fee revenue through increased management and incentive fees, particularly in the GECC, credit, and real estate sectors. GEG also introduced new products, including a private credit fund and a construction management consulting service.
Financial Overview for the Fourth Quarter and Fiscal Year 2024
In fiscal year 2024, Great Elm Group reported a remarkable 106% year-over-year increase in revenue, showcasing the company's resilience amid market fluctuations and investment challenges. The focus remains on unique investment opportunities and strategic acquisitions as part of the 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, with total revenue reaching $17.8 million, alongside substantial growth in management and incentive fees.
How did the company's assets perform in the fourth quarter?
Both FPAUM and AUM grew by 6% in the fourth quarter, reflecting effective management strategies and increased investor confidence.
What challenges did Great Elm Group face in fiscal 2024?
The company encountered unrealized losses on investments, which contributed to a net loss for the fiscal year, despite the notable 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 intends to focus on expanding its core businesses in credit and real estate while seeking unique investment opportunities to enhance shareholder value.
Media & Investor Contact:
Investor Relations
geginvestorrelations@greatelmcap.com
