Great Elm Capital Corp. Announces Third Quarter 2024 Financial Results
Great Elm Capital Corp. (GECC) reported strong financial results for Q3 2024, with net investment income of $4.1 million ($0.39 per share), up from $3.1 million ($0.32 per share) in Q2 2024. The company's net assets were $125.8 million ($12.04 per share) as of September 30, 2024. GECC issued $41.4 million of 8.125% unsecured notes due 2029 and redeemed all outstanding 6.75% notes due 2025. The Board approved a quarterly dividend of $0.35 per share, representing a 14.0% annualized yield. Total investments stood at $333.3 million, with a weighted average current yield of 12.8% on the debt portfolio.
Great Elm Capital Corp. (GECC) ha riportato risultati finanziari solidi per il terzo trimestre del 2024, con un reddito netto da investimenti di 4,1 milioni di dollari (0,39 dollari per azione), in aumento rispetto ai 3,1 milioni di dollari (0,32 dollari per azione) del secondo trimestre del 2024. Gli attivi netti dell'azienda ammontavano a 125,8 milioni di dollari (12,04 dollari per azione) al 30 settembre 2024. GECC ha emesso note non garantite da 41,4 milioni di dollari con un tasso dell'8,125% in scadenza nel 2029 e ha rimborsato tutte le note esistenti con un tasso del 6,75% in scadenza nel 2025. Il Consiglio ha approvato un dividendo trimestrale di 0,35 dollari per azione, corrispondente a un rendimento annualizzato del 14,0%. Gli investimenti totali ammontavano a 333,3 milioni di dollari, con un rendimento corrente medio ponderato del 12,8% sul portafoglio di debito.
Great Elm Capital Corp. (GECC) informó resultados financieros sólidos para el tercer trimestre de 2024, con un ingreso neto por inversiones de 4,1 millones de dólares (0,39 dólares por acción), un aumento respecto a los 3,1 millones de dólares (0,32 dólares por acción) en el segundo trimestre de 2024. Los activos netos de la compañía eran de 125,8 millones de dólares (12,04 dólares por acción) a fecha del 30 de septiembre de 2024. GECC emitió notas no garantizadas por 41,4 millones de dólares con un interés del 8,125% con vencimiento en 2029 y redimió todas las notas pendientes con una tasa del 6,75% que vencían en 2025. La Junta aprobó un dividendo trimestral de 0,35 dólares por acción, lo que representa un rendimiento anualizado del 14,0%. Las inversiones totales se situaron en 333,3 millones de dólares, con un rendimiento corriente medio ponderado del 12,8% en la cartera de deuda.
그레이트 엘름 캐피탈 코퍼레이션 (GECC)은 2024년 3분기 강력한 재무 결과를 발표했습니다. 순투자 수익은 410만 달러(주당 0.39 달러)로, 2024년 2분기의 310만 달러(주당 0.32 달러)에서 증가했습니다. 2024년 9월 30일 기준 회사의 순자산은 1억 2천580만 달러(주당 12.04 달러)였습니다. GECC는 2029년에 만기가 오는 8.125%의 무담보 노트를 4,140만 달러 발행했으며, 2025년에 만기가 오는 모든 6.75% 노트를 상환했습니다. 이사회는 주당 0.35달러의 분기 배당금을 승인하여 연간 수익률이 14.0%에 해당합니다. 총 투자액은 3억 3천330만 달러로, 채무 포트폴리오의 가중 평균 현재 수익률은 12.8%였습니다.
Great Elm Capital Corp. (GECC) a annoncé d'excellents résultats financiers pour le troisième trimestre de 2024, avec un revenu net d'investissement de 4,1 millions de dollars (0,39 dollar par action), en hausse par rapport à 3,1 millions de dollars (0,32 dollar par action) au deuxième trimestre de 2024. Les actifs nets de l'entreprise s'élevaient à 125,8 millions de dollars (12,04 dollars par action) au 30 septembre 2024. GECC a émis des obligations non garanties de 41,4 millions de dollars avec un taux d'intérêt de 8,125% arrivant à échéance en 2029 et a racheté toutes les obligations à 6,75% arrivant à échéance en 2025. Le conseil d'administration a approuvé un dividende trimestriel de 0,35 dollar par action, ce qui représente un rendement annualisé de 14,0%. Le total des investissements s'élevait à 333,3 millions de dollars, avec un rendement courant moyen pondéré de 12,8% sur le portefeuille de dettes.
Great Elm Capital Corp. (GECC) berichtete über starke finanzielle Ergebnisse für das dritte Quartal 2024, mit einem Netto-Investitionseinkommen von 4,1 Millionen US-Dollar (0,39 US-Dollar pro Aktie), ein Anstieg gegenüber 3,1 Millionen US-Dollar (0,32 US-Dollar pro Aktie) im zweiten Quartal 2024. Das Nettovermögen des Unternehmens betrug zum 30. September 2024 insgesamt 125,8 Millionen US-Dollar (12,04 US-Dollar pro Aktie). GECC gab unbesicherte Anleihen in Höhe von 41,4 Millionen US-Dollar mit einem Zinssatz von 8,125% fällig 2029 aus und löste alle ausstehenden Anleihen mit 6,75%, die 2025 fällig werden, ein. Der Vorstand genehmigte eine vierteljährliche Dividende von 0,35 US-Dollar pro Aktie, was einer annualisierten Rendite von 14,0% entspricht. Die Gesamtsumme der Investitionen betrug 333,3 Millionen US-Dollar, mit einer gewichteten durchschnittlichen laufenden Rendite von 12,8% im Schuldenportfolio.
- Net investment income increased to $4.1M ($0.39/share) from $3.1M ($0.32/share) QoQ
- Record total investment income of $11.7M for Q3 2024
- Debt portfolio yielding 12.8% with 72% in floating rate instruments
- Successfully deployed $73.6M into 29 investments at 11.5% weighted average yield
- Net assets slightly decreased to $125.8M from $126.0M QoQ
- Asset coverage ratio declined to 166.2% from 171.0% QoQ
- Net realized and unrealized losses of $0.6M in Q3 2024
Insights
- Record total investment income of
$11.7 million - Increased floating rate exposure to
72% of debt investments - Stable NAV at
$12.04 per share - Sustainable quarterly dividend of
$0.35 per share with14% annualized yield
Company to Host Conference Call and Webcast at 8:30 AM ET Today
PALM BEACH GARDENS, Fla., Oct. 31, 2024 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “our,” the “Company” or “GECC”) (NASDAQ: GECC), a business development company, today announced its financial results for the third quarter ended September 30, 2024.
Third Quarter and Other Recent Highlights:
- Net investment income (“NII”) for the quarter ended September 30, 2024 was
$4.1 million , or$0.39 per share, as compared to$3.1 million , or$0.32 per share, for the quarter ended June 30, 2024. - Net assets were
$125.8 million , or$12.04 per share, on September 30, 2024, as compared to$126.0 million , or$12.06 per share, on June 30, 2024. - In September 2024, issued
$36.0 million of8.125% unsecured notes due 2029 (the “GECCH Notes”) and an additional$5.4 million in October with the full exercise of the underwriters’ overallotment option. - Redeemed all outstanding
6.75% unsecured notes due in January 2025 (the “GECCM Notes”) on October 12, 2024 with net proceeds from the GECCH notes and cash on hand. - GECC’s asset coverage ratio was
166.2% as of September 30, 2024, as compared to171.0% as of June 30, 2024 and168.4% as of September 30, 2023.- Pro forma for the GECCH issuances and GECCM redemption, the asset coverage ratio would have been
164.4% .
- Pro forma for the GECCH issuances and GECCM redemption, the asset coverage ratio would have been
- The Board of Directors approved a quarterly dividend of
$0.35 per share for the fourth quarter of 2024, equating to a14.0% annualized yield on the Company’s closing market price on October 30, 2024 of$10.03 .
Management Commentary
“We had a strong third quarter, reporting NII that exceeded our quarterly distribution and generating record total investment income of
Financial Highlights – Per Share Data
| Q3/2023 | Q4/2023 | Q1/2024 | Q2/2024 | Q3/2024 | ||||||
| Earnings Per Share (“EPS”) | ( | ( | ||||||||
| Net Investment Income (“NII”) Per Share | ||||||||||
| Pre-Incentive Net Investment Income Per Share | ||||||||||
| Net Realized and Unrealized Gains / (Losses) Per Share | ( | ( | ( | |||||||
| Net Asset Value Per Share at Period End | ||||||||||
| Distributions Paid / Declared Per Share | ||||||||||
Portfolio and Investment Activity
As of September 30, 2024, GECC held total investments of
- 53 debt investments in corporate credit, totaling approximately
$204.8 million , representing61.4% of the fair market value of the Company’s total investments. Secured debt investments comprised a substantial majority of the fair market value of the Company’s debt investments. - An investment in Great Elm Specialty Finance, totaling approximately
$43.6 million , comprised of one debt investment of$29.7 million and one equity investment of$13.9 million , representing8.9% and4.2% , respectively, of the fair market value of the Company’s total investments. - An investment in the CLO JV, totaling approximately
$32.9 million , representing9.9% of the fair market value of the Company’s total investments. - Seven dividend paying equity investments, totaling approximately
$36.3 million , representing10.9% of the fair market value of the Company’s total investments. - Other equity investments, totaling approximately
$15.7 million , representing4.7% of the fair market value of the Company’s total investments.
As of September 30, 2024, the weighted average current yield on the Company’s debt portfolio was
During the quarter ended September 30, 2024, we deployed approximately
During the quarter ended September 30, 2024, we monetized, in part or in full, 38 investments for approximately
Financial Review
Total investment income for the quarter ended September 30, 2024 was
Net realized and unrealized losses for the quarter ended September 30, 2024 were approximately
Liquidity and Capital Resources
As of September 30, 2024, cash and money market fund investments totaled approximately
As of September 30, 2024, total debt outstanding (par value) was
Subsequent to quarter-end, the Company used the net proceeds from the GECCH Notes issuance and cash on hand to redeem all GECCM Notes. As of October 30, 2024, pro-forma total debt outstanding (par value) was
Distributions
The Company’s Board of Directors has approved a quarterly cash distribution of
The distribution equates to a
Conference Call and Webcast
GECC will discuss these results in a conference call today at 8:30 a.m. ET.
| Conference Call Details | |
| Date/Time: | Thursday, October 31, 2024 – 8:30 a.m. ET |
| Participant Dial-In Numbers: | |
| (United States): | 877-407-0789 |
| (International): | 201-689-8562 |
To access the call, please dial-in approximately five minutes before the start time and, when asked, provide the operator with passcode “GECC”. An accompanying slide presentation will be available in pdf format via the “Events and Presentations” section of Great Elm Capital Corp.’s website here after the issuance of the earnings release.
Webcast
The call and presentation will also be simultaneously webcast over the internet via the “Events and Presentations” section of GECC’s website or by clicking on the webcast link here.
About Great Elm Capital Corp.
GECC is an externally managed business development company that seeks to generate current income and capital appreciation by investing in debt and income generating equity securities, including investments in specialty finance businesses. For additional information, please visit http://www.greatelmcc.com.
Cautionary Statement Regarding Forward-Looking Statements
Statements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements are often, but not always, made through the use of words or phrases such as “expect,” “anticipate,” “should,” “will,” “estimate,” “designed,” “seek,” “continue,” “upside,” “potential” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. The key factors that could cause actual results to differ materially from those projected in the forward-looking statements include, without limitation: conditions in the credit markets, our expected financings and investments, including interest rate volatility, inflationary pressure, the price of GECC common stock and the performance of GECC’s portfolio and investment manager. Information concerning these and other factors can be found in GECC’s Annual Report on Form 10-K and other reports filed with the Securities and Exchange Commission. GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.
This press release does not constitute an offer of any securities for sale.
Endnotes:
(1) This includes new deals, additional fundings (inclusive of those on revolving credit facilities), refinancings and capitalized PIK income. Amounts included herein do not include investments in short-term securities, including United States Treasury Bills.
(2) This includes scheduled principal payments, prepayments, sales and repayments (inclusive of those on revolving credit facilities). Amounts included herein do not include investments in short-term securities, including United States Treasury Bills.
Media & Investor Contact:
Investor Relations
investorrelations@greatelmcap.com
GREAT ELM CAPITAL CORP.
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
Dollar amounts in thousands (except per share amounts)
| September 30, 2024 | December 31, 2023 | |||||||
| Assets | ||||||||
| Investments | ||||||||
| Non-affiliated, non-controlled investments, at fair value (amortized cost of | $ | 256,777 | $ | 183,335 | ||||
| Non-affiliated, non-controlled short-term investments, at fair value (amortized cost of | 85,474 | 10,807 | ||||||
| Affiliated investments, at fair value (amortized cost of | - | 1,067 | ||||||
| Controlled investments, at fair value (amortized cost of | 76,506 | 46,210 | ||||||
| Total investments | 418,757 | 241,419 | ||||||
| Cash and cash equivalents | 305 | 953 | ||||||
| Receivable for investments sold | 3,121 | 840 | ||||||
| Interest receivable | 3,652 | 2,105 | ||||||
| Dividends receivable | 622 | 1,001 | ||||||
| Due from portfolio company | 1 | 37 | ||||||
| Deferred financing costs | 262 | 335 | ||||||
| Prepaid expenses and other assets | 306 | 135 | ||||||
| Total assets | $ | 427,026 | $ | 246,825 | ||||
| Liabilities | ||||||||
| Notes payable (including unamortized discount of | $ | 229,967 | $ | 140,214 | ||||
| Payable for investments purchased | 66,043 | 3,327 | ||||||
| Interest payable | 170 | 32 | ||||||
| Accrued incentive fees payable | 2,594 | 1,431 | ||||||
| Distributions payable | - | 760 | ||||||
| Due to affiliates | 1,445 | 1,195 | ||||||
| Accrued expenses and other liabilities | 981 | 1,127 | ||||||
| Total liabilities | $ | 301,200 | $ | 148,086 | ||||
| Commitments and contingencies | $ | - | $ | - | ||||
| Net Assets | ||||||||
| Common stock, par value | $ | 104 | $ | 76 | ||||
| Additional paid-in capital | 319,438 | 283,795 | ||||||
| Accumulated losses | (193,716 | ) | (185,132 | ) | ||||
| Total net assets | $ | 125,826 | $ | 98,739 | ||||
| Total liabilities and net assets | $ | 427,026 | $ | 246,825 | ||||
| Net asset value per share | $ | 12.04 | $ | 12.99 | ||||
GREAT ELM CAPITAL CORP.
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Dollar amounts in thousands (except per share amounts)
| For the Three Months Ended September 30, | For the Nine Months Ended September 30, | |||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Investment Income: | ||||||||||||||||
| Interest income from: | ||||||||||||||||
| Non-affiliated, non-controlled investments | $ | 6,321 | $ | 6,357 | $ | 18,276 | $ | 17,669 | ||||||||
| Non-affiliated, non-controlled investments (PIK) | 826 | 552 | 2,267 | 1,591 | ||||||||||||
| Affiliated investments | - | 33 | 64 | 95 | ||||||||||||
| Controlled investments | 974 | 650 | 2,858 | 1,715 | ||||||||||||
| Controlled investments (PIK) | - | - | - | 233 | ||||||||||||
| Total interest income | 8,121 | 7,592 | 23,465 | 21,303 | ||||||||||||
| Dividend income from: | ||||||||||||||||
| Non-affiliated, non-controlled investments | 584 | 254 | 2,015 | 899 | ||||||||||||
| Controlled investments | 3,002 | 525 | 3,912 | 1,841 | ||||||||||||
| Total dividend income | 3,586 | 779 | 5,927 | 2,740 | ||||||||||||
| Other commitment fees from non-affiliated, non-controlled investments | - | 802 | 700 | 2,406 | ||||||||||||
| Other income from: | ||||||||||||||||
| Non-affiliated, non-controlled investments | 20 | 103 | 92 | 214 | ||||||||||||
| Total other income | 20 | 103 | 92 | 214 | ||||||||||||
| Total investment income | $ | 11,727 | $ | 9,276 | $ | 30,184 | $ | 26,663 | ||||||||
| Expenses: | ||||||||||||||||
| Management fees | $ | 1,201 | $ | 899 | $ | 3,209 | $ | 2,652 | ||||||||
| Incentive fees | 1,018 | 763 | 2,580 | 2,315 | ||||||||||||
| Administration fees | 375 | 420 | 1,156 | 1,056 | ||||||||||||
| Custody fees | 38 | 19 | 110 | 62 | ||||||||||||
| Directors’ fees | 52 | 51 | 160 | 156 | ||||||||||||
| Professional services | 409 | 422 | 1,210 | 1,392 | ||||||||||||
| Interest expense | 4,210 | 3,344 | 10,490 | 8,934 | ||||||||||||
| Other expenses | 277 | 267 | 866 | 770 | ||||||||||||
| Total expenses | $ | 7,580 | $ | 6,185 | $ | 19,781 | $ | 17,337 | ||||||||
| Net investment income before taxes | $ | 4,147 | $ | 3,091 | $ | 10,403 | $ | 9,326 | ||||||||
| Excise tax | $ | 75 | $ | 39 | $ | 80 | $ | 67 | ||||||||
| Net investment income | $ | 4,072 | $ | 3,052 | $ | 10,323 | $ | 9,259 | ||||||||
| Net realized and unrealized gains (losses): | ||||||||||||||||
| Net realized gain (loss) on investment transactions from: | ||||||||||||||||
| Non-affiliated, non-controlled investments | $ | 227 | $ | 1,637 | $ | 2,738 | $ | 4,024 | ||||||||
| Affiliated investments | (1 | ) | - | (626 | ) | - | ||||||||||
| Controlled investments | - | (3,461 | ) | - | (3,461 | ) | ||||||||||
| Realized loss on repurchase of debt | (3 | ) | - | (3 | ) | - | ||||||||||
| Total net realized gain (loss) | 223 | (1,824 | ) | 2,109 | 563 | |||||||||||
| Net change in unrealized appreciation (depreciation) on investment transactions from: | ||||||||||||||||
| Non-affiliated, non-controlled investments | 715 | 2,581 | (6,674 | ) | 8,416 | |||||||||||
| Affiliated investments | 1 | 25 | (22 | ) | 177 | |||||||||||
| Controlled investments | (1,537 | ) | 3,926 | (4,046 | ) | 2,707 | ||||||||||
| Total net change in unrealized appreciation (depreciation) | (821 | ) | 6,532 | (10,742 | ) | 11,300 | ||||||||||
| Net realized and unrealized gains (losses) | $ | (598 | ) | $ | 4,708 | $ | (8,633 | ) | $ | 11,863 | ||||||
| Net increase (decrease) in net assets resulting from operations | $ | 3,474 | $ | 7,760 | $ | 1,690 | $ | 21,122 | ||||||||
| Net investment income per share (basic and diluted): | $ | 0.39 | $ | 0.40 | $ | 1.08 | $ | 1.22 | ||||||||
| Earnings per share (basic and diluted): | $ | 0.33 | $ | 1.02 | $ | 0.18 | $ | 2.77 | ||||||||
| Weighted average shares outstanding (basic and diluted): | 10,449,888 | 7,601,958 | 9,556,695 | 7,601,958 | ||||||||||||
FAQ
What was GECC's net investment income for Q3 2024?
What is GECC's quarterly dividend for Q4 2024?
What was GECC's total investment portfolio value as of September 30, 2024?
What was GECC's debt portfolio yield in Q3 2024?
