Great Elm Capital (GECC) Q3 2024 earnings summary

Executive summary

• Achieved record total investment income of $11.7 million in Q3 2024, with net investment income rising to $4.1 million ($0.39 per share), and NAV per share stable at $12.04 as of September 30, 2024.

• Board approved a $0.35 per share distribution for Q4 2024, equating to a 14.0% annualized yield on market price and 11.6% on NAV.

• Portfolio fair value grew to $418.8 million as of September 30, 2024, with 74 investments across 57 companies and 28 industries.

• Non-accruals declined to less than 1% of portfolio fair value, and portfolio quality improved.

• Successfully refinanced 6.75% notes due 2025 with new 8.125% notes due 2029, extending debt maturities by 20 months.

Financial highlights

• Q3 2024 NII was $4.1 million ($0.39 per share), up from $3.1 million ($0.32 per share) in Q2 2024.

• Total investment income for Q3 2024 was $11.7 million, up from $9.3 million in Q3 2023.

• Net asset value per share was $12.04 at quarter-end, nearly flat from $12.06 in Q2 2024.

• Asset coverage ratio was 166.2% as of September 30, 2024, down from 171% in Q2.

• Cash and money market securities were $26 million at period end.

Outlook and guidance

• Board declared a Q4 2024 distribution of $0.35 per share, payable December 31, 2024.

• Management expects to maintain dividend coverage and deliver attractive risk-adjusted returns.

• No debt maturities for 20 months following refinancing activities.

• Liquidity is sufficient to meet obligations for at least the next 12 months.