Great Elm Capital Corp. Announces Third Quarter 2022 Financial Results
Financial and Operating Highlights
- Formed Great Elm Healthcare Finance, a specialty asset-based lending platform led by industry veteran
Mike Gervais, to provide capital to healthcare-related businesses across the U.S.
- Modest increase in portfolio fair value in the third quarter as compared to the second quarter.
- Net investment income (“NII”) for the quarter ended
September 30, 2022was $1.1 million, or $0.14per share.
- NII was impacted by costs and expenses related to the formation of Great Elm Healthcare Finance as well as certain legacy investments.
- Net assets were
$95.5 millionon September 30, 2022, as compared to $97.6 millionon June 30, 2022, and $99.4 millionon September 30, 2021.
- NAV per share was
$12.56as of September 30, 2022, as compared to $12.84as of June 30, 2022, and $22.17as of September 30, 2021.
- GECC’s asset coverage ratio was approximately 165.5% as of
September 30, 2022, as compared to 166.9% as of June 30, 2022, and 163.8% as of September 30, 2021.
- The Board of Directors has approved a quarterly dividend of
$0.45per share for the fourth quarter of 2022, equating to a 14.3% annualized yield on September 30, 2022NAV per share.
“Our portfolio value remained resilient in the face of a challenging market and economic backdrop,” said
Financial Highlights – Per Share Data(1)
|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
- 42 debt investments in corporate credit, totaling approximately
$147.8 millionand representing 68.1% 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.
- 8 debt investments in specialty finance, totaling approximately
$25.6 millionand representing 11.8% of the fair market value of the Company’s total investments.
- 3 income generating equity investments in specialty finance companies, totaling approximately
$25.7 million, representing 11.9% of the fair market value of the Company’s total investments.
- 2 income generating preferred equity investments totaling approximately
$11.2 millionand 2 income generating closed-end funds totaling approximately $2.7 million, representing 6.4% of the fair market value of the Company’s total investments.
- Other equity investments, totaling approximately
$4.0 million, representing 1.8% of the fair market value of the Company’s total investments.
During the quarter ended
During the quarter ended
Total investment income for the quarter ended
Net realized and unrealized gains for the quarter ended
Liquidity and Capital Resources
Total debt outstanding (par value) as of
The Company’s Board of Directors has approved a quarterly cash distribution of
The distribution equates to a 18.0% annualized dividend yield on the Company’s closing market price on
Conference Call and Webcast
GECC will discuss these results in a conference call on
|Conference Call Details
|Participant Dial-In Numbers:
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 “Investor Relations” section of Great Elm Capital Corp.’s website at
http://www.investor.greatelmcc.com/events-and-presentations/presentations after the issuance of the earnings release.
The call and presentation will also be simultaneously webcast over the internet via the Investor Relations section of GECC’s website or by clicking on the conference call link:
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. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are: conditions in the credit markets, the price of GECC common stock, the performance of GECC’s portfolio and investment manager and risks associated with the economic impact of the COVID-19 pandemic on GECC and its portfolio companies. Information concerning these and other factors can be found in GECC’s Annual Report on Form 10-K and other reports filed with the
This press release does not constitute an offer of any securities for sale.
(1) The per share figures are based on a weighted average outstanding share count for the respective period following the 6-for-1 reverse stock split effective on
(2) 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.
(3) 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.
Investor Relations Contact:
CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES (unaudited)
Dollar amounts in thousands (except per share amounts)
|Non-affiliated, non-controlled investments, at fair value (amortized cost of
|Non-affiliated, non-controlled short-term investments, at fair value (amortized cost of
|Affiliated investments, at fair value (amortized cost of
|Controlled investments, at fair value (amortized cost of
|Cash and cash equivalents||1,502||9,132|
|Receivable for investments sold||452||766|
|Due from portfolio company||1||136|
|Due from affiliates||-||17|
|Deferred financing costs||265||376|
|Prepaid expenses and other assets||343||379|
|Notes payable (including unamortized discount of
|Payable for investments purchased||53,132||203,575|
|Accrued incentive fees payable||-||4,854|
|Due to affiliates||974||1,012|
|Accrued expenses and other liabilities||586||290|
|Commitments and contingencies||$||-||$||-|
|Common stock, par value
|Additional paid-in capital||284,359||245,531|
|Total net assets||$||95,516||$||74,556|
|Total liabilities and net assets||$||293,128||$||426,314|
|Net asset value per share||(1)||$||12.56||$||16.63|
(1) Authorized, issued and outstanding shares of common stock and net asset value per share have been adjusted for the periods prior to
CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)
Dollar amounts in thousands (except per share amounts)
|For the Three Months Ended
||For the Nine Months Ended
|Interest income from:|
|Non-affiliated, non-controlled investments||$||4,221||$||3,765||$||10,496||$||9,337|
|Non-affiliated, non-controlled investments (PIK)||259||63||728||161|
|Affiliated investments (PIK)||-||1,588||58||4,595|
|Total interest income||4,990||5,872||12,765||15,143|
|Dividend income from:|
|Non-affiliated, non-controlled investments||340||435||1,297||1,369|
|Total dividend income||740||915||3,396||2,809|
|Other income from:|
|Non-affiliated, non-controlled investments||303||561||943||642|
|Affiliated investments (PIK)||-||-||-||282|
|Total other income||303||586||943||949|
|Total investment income||$||6,033||$||7,373||$||17,104||$||18,901|
|Incentive fee waiver||-||-||(4,854||)||-|
|Net investment income before taxes||$||1,084||$||1,573||$||8,327||$||5,180|
|Net investment income||$||1,062||$||1,573||$||8,204||$||5,180|
|Net realized and unrealized gains (losses):|
|Net realized gain (loss) on investment transactions from:|
|Non-affiliated, non-controlled investments||$||1,171||$||1,770||$||(17,729||)||$||38|
|Total net realized gain (loss)||1,171||1,660||(128,513||)||(3,984||)|
|Net change in unrealized appreciation (depreciation) on investment transactions from:|
|Non-affiliated, non-controlled investments||163||(3,202||)||5,274||13,994|
|Total net change in unrealized appreciation (depreciation)||(902||)||(6,364||)||112,013||10,706|
|Net realized and unrealized gains (losses)||$||269||$||(4,704||)||$||(16,500||)||$||6,722|
|Net increase (decrease) in net assets resulting from operations||$||1,331||$||(3,131||)||$||(8,296||)||$||11,902|
|Net investment income per share (basic and diluted):||(1)||$||0.14||$||0.39||$||1.42||$||1.32|
|Earnings per share (basic and diluted):||(1)||$||0.18||$||(0.79||)||$||(1.43||)||$||3.02|
|Weighted average shares outstanding (basic and diluted):||(1)||7,601,958||3,985,741||5,796,255||3,935,008|
(1) Weighted average shares outstanding and per share amounts have been adjusted for the periods shown to reflect the six-for-one reverse stock split effected on
Source: Great Elm Capital Corp.