Great Elm Capital Group, Inc. Reports First Fiscal Quarter 2021 Financial Results
November 15, 2020
- DME fiscal Q1 revenue grew 10.4% year-over-year and 5.0% sequentially highlighting the business’ ability to grow despite the negative impact from COVID-19 on new equipment rental set-ups
- DME fiscal Q1 net loss of $0.5 million improved from a net loss of $0.8 million year-over-year while adjusted EBITDA of $2.8 million decreased from $3.0 million primarily reflecting the incremental costs of operating during the pandemic
- Investment Management is poised for growth in AUM, revenue, and earnings following the successful completion of the $31.7 million GECC rights offering
WALTHAM, Mass., Nov. 15, 2020 (GLOBE NEWSWIRE) -- Great Elm Capital Group, Inc. (NASDAQ: GEC, “Great Elm”) announced its financial results for the quarter ended September 30, 2020. Great Elm will host a conference call and webcast on Monday, November 16, 2020 at 8:00 a.m. Eastern Time to discuss its first fiscal quarter 2021 financial results. Please see below for details.
Select highlights from the first quarter 2021 include:
▪ For the three months ended September 30, 2020, $14.6 million of revenue, $0.5 million of net loss and $2.8 million of adjusted EBITDA
▪ Having completed significant investments into the platform, DME management is focused on continuing organic growth, driving improved margins, and making add-on acquisitions
▪ New PAP patient setups declined 24.7% year over year but increased sequentially 2.8% as the business recovers from the effects of the COVID-19 pandemic
▪ For the three months ended September 30, 2020, $0.8 million of revenue, net loss of $0.1 million and $0.2 million of adjusted EBITDA
▪ Great Elm Capital Corp. (“GECC”), managed by our wholly owned subsidiary, Great Elm Capital Management, Inc. (“GECM”), raised gross proceeds of $31.7 million through the completion of a rights offering.
▪ GEC purchased approximately 3.0 million shares in the offering for $8.8 million
"We made significant progress toward the achievement of our strategic goals for both our DME and Investment Management businesses during the quarter, " remarked Peter A. Reed, Great Elm's Chief Executive Officer. "DME added key management talent, continued to improve operationally and is actively pursuing attractive add-on acquisition opportunities. For Investment Management, not only will the successful rights offering at GECC enable the pursuit of attractive acquisitions in the specialty finance sector, it enhances GECM's revenue, earnings and cash flow potential which ultimately benefits our shareholders."
