Great Elm (US:GEG)2024-08-30 17:21Financial Data and Key Metrics Changes - Fiscal fourth quarter revenues tripled year-over-year to $9 million, driven by the Monomoy BTS property sale [16] - AUM of $727 million as of June 30, 2024, was up 6% from the prior quarter end and up 14% from the prior year-end, while fee-paying AUM grew to $524 million, up 6% quarter-to-date and up 17% from the prior year-end [16] - The company generated a net loss from continuing operations of $0.6 million for the quarter compared to a $5.3 million loss for the prior year period [17] - Adjusted EBITDA for the quarter was $1.2 million compared to $0.4 million in the prior year period [17] Business Line Data and Key Metrics Changes - The BDC Great Elm Capital Corp raised over $90 million in fresh capital from February to July 2024, significantly growing fee-paying assets under management by nearly 30% from the prior year [4] - The real estate platform expanded with a milestone fourth quarter, completing its first property sale in June, realizing a gain on sale of over $1 million [8] - Monomoy REIT deployed $25 million of capital to acquire 13 existing properties and saw rental rate increases in approximately 70% of its portfolio [13] Market Data and Key Metrics Changes - Fee-paying AUM and AUM increased 22% and 17% year-over-year, respectively, including the net proceeds from GECC's July capital raise [10] - The company ended the quarter with nearly $60 million in cash and marketable securities to deploy across its growing alternative asset management platform [11] Company Strategy and Development Direction - The company aims to enhance financial performance, expand its platform, and grow assets under management, with a focus on alternative credit and real estate businesses [14] - Great Elm Group is actively evaluating multiple strategic initiatives to expand its businesses and allocate capital to promising new platform opportunities [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the BDC's ability to generate attractive risk-adjusted returns and to reach further capital in fiscal 2025 [7] - The company is encouraged by the initial demand and growth prospects of its new construction management consulting business [9] Other Important Information - The company repurchased over $4 million principal of its 5% convertible notes at 47% of face value and repurchased 1.2 million shares of GEG common stock for $2.1 million as part of its stock repurchase program [11] - The company launched the Great Elm Credit Income Fund in November 2023, which has shown a solid start in building a marketable performance track record [9] Q&A Session Summary - The Q&A session did not contain any specific questions or answers as the call concluded with closing remarks from management [18][19]