EX-99.1 2 geg-ex99_1.htm EX-99.1 EX-99.1

Exhibit 99.1

Great Elm Group Reports FISCAL 2022 Fourth QUARTER and Full Year

financial resulTs

 

Company to Host Conference Call at 9:00 a.m. ET on September 13, 2022

 

WALTHAM, Mass., September 12, 2022 -- Great Elm Group, Inc. (“we,” “us,” “our,” “GEG,” or “Great Elm”), (NASDAQ: GEG) a diversified holding company, today announced financial results for its fiscal fourth quarter and full year ended June 30, 2022.

 

Fiscal 2022 Annual Operating Highlights

 

Investment Management (IM):

•
In May 2022, the company acquired the investment management agreement of Monomoy Properties REIT, LLC (“Monomoy REIT”). Formed in 2014, Monomoy REIT is a private real estate investment trust, with a 114-property portfolio of diversified net leased industrial assets with a fair value of approximately $358 million as of June 30, 2022.
•
To support growth, GEG invested $15 million into a subsidiary of Monomoy REIT at an 8% dividend per annum, with the option to invest an additional $15 million over the next 12 months.
•
In June 2022, Great Elm Capital Corp. (“GECC”) raised $37.5 million of new equity capital upon completion of its rights offering.
•
In June 2022, GEG issued $26.9 million in aggregate principal amount of 7.25% Notes due 2027, with the proceeds, including the $15 million noted above, to be used for strategic growth investments into Monomoy REIT and other opportunistic investments to further build and diversify the Investment Management business.

 

Operating Companies:

•
Adjusted EBITDA for DME totaled $13.8 million in fiscal 2022 compared to $12.4 million in fiscal 2021, which includes a decline in government stimulus benefits of $2.3 million from the prior year.
o
This represents a 37% increase in Adjusted EBITDA from the prior year excluding the decline in government stimulus benefits.
o
DME demonstrated strong core profitability despite challenging supply chain conditions, which improved gradually over the course of fiscal 2022.
•
Successfully integrated two add-on acquisitions over the year, AMPM and MedOne, acquired in March 2021 and August 2021, respectively.

 

 

Management Commentary

 

Peter A. Reed, Chief Executive Officer, stated, “Our fiscal fourth quarter and year ended June 30, 2022 were highlighted by two key milestones. First, we closed on the acquisition of the investment management agreement for Monomoy Properties REIT and made a strategic investment into the REIT to support growth. This was a transformative deal for Great Elm that helped to more than double our AUM from $294.7 million as of June 30, 2021 to $607.0 million as of June 30, 2022, and jumpstarted our strategic initiative of managing a scalable and diversified portfolio of long-duration and permanent capital vehicles that generate recurring fee revenue.

 

Second, following the Monomoy transaction, we issued $26.9 million of five-year bonds at GEG, with the proceeds allocated for strategic growth investments into Monomoy as well as other investment vehicles to further enhance the growth and diversity of our Investment Management business. The success of the offering reinforces the company’s ability to raise fixed-rate debt in a timely and cost-effective manner. Going forward, we believe we can drive meaningful growth by deploying proceeds from further capital raises into existing funds or new investment vehicles with durable revenue streams and compelling total return potential. Great Elm remains in a strong liquidity position with over $23 million of cash.”

 

Alignment of Interest

 

A distinct attribute of Great Elm is the particularly strong alignment of interest among shareholders and the employees, directors, and other insiders of Great Elm. As of June 30, 2022, Great Elm’s employees and directors (including funds under their management) collectively own or manage approximately 40% of GEG’s total outstanding shares.

 

Financial Review

Fiscal 2022 Fourth Quarter and Annual Financial Highlights

(in millions)

 

Three Months Ended

 

 

Year Ended

 

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Revenue by Segment

 

 

 

 

 

 

 

 

 

 

 

 

DME

 

$

16.5

 

 

$

15.4

 

 

$

63.5

 

 

$

57.6

 

Investment Management

 

$

1.5

 

 

$

0.9

 

 

$

4.5

 

 

$

3.2

 

General Corporate

 

$

0.2

 

 

$

0.3

 

 

$

0.9

 

 

$

0.6

 

Eliminations

 

$

(0.2

)

 

$

(0.3

)

 

$

(0.9

)

 

$

(0.6

)

Consolidated

 

$

18.1

 

 

$

16.3

 

 

$

68.0

 

 

$

60.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Income (Loss) from Continuing Operations by Segment1

 

 

 

 

 

 

 

 

 

 

DME3

 

$

(0.2

)

 

$

5.9

 

 

$

(3.8

)

 

$

(2.5

)

Investment Management

 

$

(1.8

)

 

$

1.3

 

 

$

(8.6

)

 

$

2.7

 

General Corporate

 

$

(2.8

)

 

$

(8.3

)

 

$

(2.6

)

 

$

(8.8

)

Consolidated

 

$

(4.8

)

 

$

(1.1

)

 

$

(15.0

)

 

$

(8.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Adj. EBITDA1,2 by Segment

 

 

 

 

 

 

 

 

 

 

 

 

DME3

 

$

3.6

 

 

$

4.3

 

 

$

13.8

 

 

$

12.4

 

Investment Management

 

$

(0.1

)

 

$

0.1

 

 

$

(0.4

)

 

$

0.4

 

General Corporate

 

$

(0.8

)

 

$

(0.9

)

 

$

(4.1

)

 

$

(4.2

)

Consolidated

 

$

2.7

 

 

$

3.5

 

 

$

9.3

 

 

$

8.6

 

(1) Previously reported amounts below have been recast to reflect the full retrospective adoption of ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity and to conform with current segment organization.

(2) Please also refer to the Adjusted EBITDA reconciliation tables in the Appendix.

(3) DME’s Net Loss and Adjusted EBITDA did not include government stimulus benefits in the fourth quarter of 2022, but did include stimulus payments of roughly $2.3 million in each of the prior three quarters.

 

 

Discussion of Financial Results by Segment for the Fiscal Quarter and Year ended June 30, 2022

 

Great Elm is a holding company with two operating segments: Investment Management and Operating Companies, with General Corporate representing unallocated costs and activity to arrive at consolidated operations.

 

Consolidated

 

During the three months ended June 30, 2022, GEG recognized a net loss of $4.8 million, compared to a net loss of $1.1 million during the same period in the prior year. For the year ended June 30, 2022, GEG recognized a net loss of $15.0 million, compared to a net loss of $8.5 million for fiscal 2021. Much of the net loss can be attributed to non-cash mark-to-market losses on the Company’s managed investments, particularly GECC.

 

Investment Management

 

During the three months ended June 30, 2022, IM reported total revenue of $1.5 million, compared to $0.9 million during the same period in the prior year. The increase primarily reflected higher assets under management at GECC related to market recoveries and the successful completion of the rights offering, as well as incremental management fees earned from Monomoy REIT. For the year ended June 30, 2022, IM recognized total revenue of $4.5 million, compared to $3.2 million for fiscal 2021.

 

During the three months ended June 30, 2022, IM recognized a net loss of $1.8 million, compared to net income of $1.3 million during the same period in the prior year. For the year ended June 30, 2022, IM recognized a net loss of $8.6 million, compared to net income of $2.7 million for fiscal 2021. IM recognized net losses of $8.4 million during the year ended June 30, 2022 as compared to net gains of $0.7 million during the year ended June 30, 2021 related to mark-to-market impact on the Company’s managed investments, particularly GECC.

 

During the three months ended June 30, 2022, IM recognized Adjusted EBITDA of ($0.1) million, compared to $0.1 million for the same period in the prior year. Adjusted EBITDA for the quarter was impacted primarily by increased payroll costs and consulting fees related to the Monomoy REIT acquisition and expansion of GECC’s specialty finance platform partially offset by higher revenue. For the year ended June 30, 2022, IM recognized Adjusted EBITDA of ($0.4) million, compared to $0.4 million for fiscal 2021.

 

Operating Companies

 

During the three months ended June 30, 2022, DME reported $16.5 million in total revenue, compared to $15.4 million during the same period in the prior year. The increase in revenue was primarily attributable to more favorable intake and collections processes driving lower revenue reserve rates. For the year ended June 30, 2022, DME reported total revenue of $63.5 million, compared to $57.6 million for the same period in the prior year.

 

 

During the three months ended June 30, 2022, DME recognized a net loss of $0.2 million, compared to net income of $5.9 million for the same period in the prior year. The decrease in net income is attributed primarily to $4.7 million increase in net intercompany charges in the current period related to DME preferred stock that eliminates in general corporate. In addition, the prior period benefitted from $2.3 million in government stimulus whereas no benefit was received during the three months ended June 30, 2022. These decreases were partially offset by stronger operating income. For the year ended June 30, 2022, DME recognized a net loss of $3.8 million, compared to a net loss of $2.5 million for the same period in the prior year. The fiscal year decrease is attributed primarily to a reduction in government stimulus of $2.3 million as compared to the prior year partially offset by stronger operating income.

 

During the three months ended June 30, 2022, DME Adjusted EBITDA was $3.6 million, compared to $4.3 million in the prior-year period. For the year ended June 30, 2022, DME Adjusted EBITDA was $13.8 million, compared to $12.4 million in fiscal 2021 despite $2.3 million less of government stimulus payments. The growth in core profitability was primarily driven by more favorable revenue and gross margins partially offset by higher employee-related costs associated with acquired AMPM and MedOne employees.

 

General Corporate

 

During the three months ended June 30, 2022, General Corporate recognized $0.2 million in revenue, compared to $0.3 million for the same period in the prior year. For the year ended June 30, 2022, General Corporate recognized $0.9 million in revenue, compared to $0.6 million for the same period in the prior year. Revenue increased as a result of increased management fees earned from our DME segment, which are eliminated in consolidation.

 

During the three months ended June 30, 2022, General Corporate recognized a net loss of $2.8 million, compared to a net loss of $8.3 million during the same period in the prior year. The quarter-over-quarter variance was mostly a function of more favorable income tax and non-operating trends including the offsetting intercompany benefits related to DME preferred stock. For the year ended June 30, 2022, General Corporate recognized a net loss of $2.6 million, compared to a net loss of $8.8 million in fiscal 2021. The year-over-year improvement in general corporate was also driven by lower income taxes and non-operating trends.

 

During the three months ended June 30, 2022, General Corporate recognized ($0.8) million of Adjusted EBITDA, compared to ($0.9) million during the same period in the prior year. For the year ended June 30, 2022, General Corporate recognized Adjusted EBITDA of ($4.1) million, compared to ($4.2) million in fiscal 2021.

 

As of June 30, 2022, GEG had approximately $821 million of net operating loss (NOL) carryforwards for federal income tax purposes.

 

 

Fiscal 2022 Fourth Quarter and Full Year Conference Call & Webcast Information

 

When: Tuesday, September 13, 2022, 9:00 a.m. Eastern Time (ET)

 

Call: All interested parties are invited to participate in the conference call by dialing +1 (888) 440-4537; international callers should dial +1 (646) 960-0669. Participants should enter the Conference ID 2595129 when asked.

 

Webcast: The conference call will be webcast simultaneously and can be accessed at the following link: https://events.q4inc.com/attendee/453046330. For a copy of the slide presentation accompanying the conference call, please visit: https://www.greatelmgroup.com/events-and-presentations.

 

About Great Elm Group, Inc.

 

Great Elm Group, Inc. (NASDAQ: GEG) is a publicly-traded holding company that is building a business across two operating verticals: Investment Management and Operating Companies. Great Elm Group, Inc.’s website can be found at www.greatelmgroup.com.

 

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

 

Statements in this press release that are “forward-looking” statements, including statements regarding revenue, Adjusted EBITDA, expected growth, profitability, acquisition opportunities and outlook involve risks and uncertainties that may individually or collectively impact the matters described herein. Investors are cautioned not to place undue reliance on any such forward-looking statements, which speak only as of the date they are made and represent Great Elm’s assumptions and expectations in light of currently available information. These statements involve risks, variables and uncertainties, and Great Elm’s actual performance results may differ from those projected, and any such differences may be material. For information on certain factors that could cause actual events or results to differ materially from Great Elm’s expectations, please see Great Elm’s filings with the SEC, including its most recent annual report on Form 10-K and subsequent reports on Forms 10-Q and 8-K. Additional information relating to Great Elm’s financial position and results of operations is also contained in Great Elm’s annual and quarterly reports filed with the SEC and available for download at its website www.greatelmgroup.com or at the SEC website www.sec.gov.

 

Please note that previously reported amounts below have been recast to 1) reflect the operations of our real estate business as discontinued operations; 2) reflect the full retrospective adoption of ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity; and 3) conform with current segment organization.

 

 

Non-GAAP Financial Measures

 

The SEC has adopted rules to regulate the use in filings with the SEC, and in public disclosures, of financial measures that are not in accordance with US GAAP, such as adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”). Adjusted EBITDA is derived from methodologies other than in accordance with US GAAP. Great Elm believes that Adjusted EBITDA is an important measure for investors to use in evaluating Great Elm’s businesses. In addition, Great Elm’s management reviews Adjusted EBITDA as they evaluate acquisition opportunities.

 

Adjusted EBITDA has limitations as an analytical tool, and you should not consider it either in isolation from, or as a substitute for, analyzing Great Elm’s results as reported under US GAAP. Non-GAAP financial measures reported by Great Elm may not be comparable to similarly titled amounts reported by other companies.

 

Included in the financial tables below is a reconciliation of Adjusted EBITDA to the most directly comparable US GAAP financial measure, net income.

 

Investor Relations Contact:

Michael Kim

investorrelations@greatelmcap.com

 

GREAT ELM GROUP, INC.

CONSOLIDATED BALANCE SHEETS (UNAUDITED)

Dollar amounts in thousands, except per share amounts

ASSETS

 

2022

 

 

2021

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

23,595

 

 

$

24,382

 

Accounts receivable

 

 

5,867

 

 

 

6,518

 

Related party receivables

 

 

2,445

 

 

 

1,665

 

Investments, at fair value (cost $68,766 and $45,326, respectively)

 

 

48,042

 

 

 

24,044

 

Inventories

 

 

898

 

 

 

1,066

 

Prepaid and other current assets

 

 

1,050

 

 

 

3,791

 

Assets of consolidated funds:

 

 

 

 

 

 

Investments, at fair value (cost $2,432 and $26,814, respectively)

 

 

1,797

 

 

 

26,490

 

Prepaid expenses

 

 

746

 

 

 

578

 

Total current assets

 

 

84,440

 

 

 

88,534

 

Property and equipment, net

 

 

538

 

 

 

981

 

Equipment held for rental, net

 

 

7,504

 

 

 

7,391

 

Identifiable intangible assets, net

 

 

19,171

 

 

 

8,928

 

Goodwill

 

 

52,463

 

 

 

50,536

 

Right of use assets

 

 

3,722

 

 

 

5,241

 

Other assets

 

 

249

 

 

 

258

 

Total assets

 

$

168,087

 

 

$

161,869

 

LIABILITIES, NON-CONTROLLING INTEREST AND STOCKHOLDERS' EQUITY

 

Current liabilities:

 

 

 

 

 

 

Accounts payable

 

$

6,038

 

 

$

5,521

 

Accrued expenses and other liabilities

 

 

7,389

 

 

 

6,955

 

Deferred revenue

 

 

1,218

 

 

 

4,438

 

Current portion of related party payables

 

 

486

 

 

 

-

 

Current portion of lease liabilities

 

 

1,559

 

 

 

1,920

 

Current portion of equipment financing debt

 

 

2,993

 

 

 

1,974

 

Liabilities of consolidated funds - accrued expenses and other

 

 

11

 

 

 

12,197

 

Total current liabilities

 

 

19,694

 

 

 

33,005

 

Lease liabilities, net of current portion

 

 

2,375

 

 

 

3,596

 

Long term debt, net of current portion

 

 

25,532

 

 

 

-

 

Related party payables, net of current portion

 

 

1,120

 

 

 

-

 

Related party notes payable (face value $26,945 and $0, respectively)

 

 

6,270

 

 

 

-

 

Convertible Notes (face value $36,085 and $34,346, respectively, including $15,133 and $16,231, respectively, held by related parties)

 

 

35,187

 

 

 

33,333

 

Equipment financing debt, net of current portion

 

 

-

 

 

 

67

 

Redeemable preferred stock of subsidiaries (held by related parties, face value $35,824 and $37,018, respectively)

 

 

34,747

 

 

 

35,529

 

Other liabilities

 

 

908

 

 

 

915

 

Total liabilities

 

 

125,833

 

 

 

106,445

 

Commitments and Contingencies (Note 20)

 

 

 

 

 

 

Contingently redeemable non-controlling interest

 

 

2,225

 

 

 

2,639

 

Stockholders' equity

 

 

 

 

 

 

Preferred stock, $0.001 par value; 5,000,000 authorized and zero outstanding

 

 

-

 

 

 

-

 

Common stock, $0.001 par value; 350,000,000 shares authorized and 28,932,444 shares issued and 28,507,490 outstanding at June 30, 2022; and 26,613,913 shares issued and 25,948,100 outstanding at June 30, 2021

 

 

29

 

 

 

26

 

Additional paid-in-capital

 

 

3,312,763

 

 

 

3,307,613

 

Accumulated deficit

 

 

(3,279,296

)

 

 

(3,264,403

)

Total Great Elm Group, Inc. stockholders' equity

 

 

33,496

 

 

 

43,236

 

Non-controlling interests

 

 

6,533

 

 

 

9,549

 

Total stockholders' equity

 

 

40,029

 

 

 

52,785

 

Total liabilities, non-controlling interest and stockholders' equity

 

$

168,087

 

 

$

161,869

 

 

 

GREAT ELM GROUP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (UNAUDITED)

Dollar amounts in thousands, except per share data

 

 

For the three months ended June 30,

For the years ended June 30,

 

 

2022

2021

2022

2021

Revenues:

 

 

 

 

 

Durable medical equipment sales and services revenue

 

$ 11,008

$ 10,097

$

41,720

$

37,460

Durable medical equipment rental income

 

              5,533

            5,276

 

21,738

 

20,183

Investment management revenues

 

              1,524

               949

 

4,516

 

3,210

Total revenues

 

            18,065

          16,322

 

67,974

 

60,853

Operating costs and expenses:

 

 

 

 

 

Cost of durable medical equipment sold and services

 

              4,064

            4,165

 

16,795

 

16,881

Cost of durable medical equipment rentals(1)

 

              1,857

            1,757

 

7,149

 

6,950

Durable medical equipment other operating expenses(2)

 

              9,592

            7,083

 

33,143

 

28,917

Investment management expenses

 

              1,868

               946

 

6,616

 

3,492

Depreciation and amortization

 

                 630

               584

 

2,261

 

2,383

Selling, general and administrative(3)

 

              1,362

            1,310

 

5,982

 

5,892

Expenses of consolidated funds

 

                  (4)

                 48

 

135

 

75

Total operating costs and expenses

 

            19,369

          15,893

 

72,081

 

64,590

Operating loss

 

(1,304)

429

 

(4,107)

 

(3,737)

Dividends and interest income

 

              1,222

               555

 

3,161

 

2,963

Net realized and unrealized gain (loss) on investments

 

(2,516)

609

 

(7,571)

 

155

Net realized and unrealized gain (loss) on investments of consolidated funds

 

( (246)

( 324

 

(525)

 

545

Interest expense

 

        (1,708)

         (1,515)

 

(5,786)

 

(4,949)

Extinguishment of debt

 

(190)

                    -

 

(190)

 

(1,866)

Other income, net

 

                    -

                 15

 

2

 

45

Loss from continuing operations, before income taxes

 

           (4,742)

               417

 

(15,016)

 

(6,844)

Income tax expense

 

               107

          (1,807)

 

(21)

 

(1,675)

Loss from continuing operations

 

           (4,849)

          (1,390)

 

(15,037)

 

(8,519)

Discontinued operations:

 

 

 

 

 

Income from discontinued operations, net of tax

 

                      -

               438

 

-

 

649

Net loss

 

$ (4,849)

$ (952)

$

(15,037)

$

(7,870)

Less: net loss attributable to non-controlling interest, continuing operations

 

( (303)

( 259

 

(144)

 

(648)

Less: net income attributable to non-controlling interest, discontinued operations

 

-

                                                  8

 

-

 

53

Net loss attributable to Great Elm Group, Inc.

 

$ (4,546)

$ (1,219)

$

(14,893)

$

(7,275)

Basic income (loss) per share

 

 

 

 

 

Continuing operations

 

$ (0.18)

$ (0.06)

$

(0.56)

$

(0.31)

Discontinued operations

 

                      -

            (0.02)

 

-

 

0.03

Net loss per share

 

$ (0.18)

$ (0.04)

$

(0.56)

$

(0.28)

Diluted income (loss) per share from:

 

 

 

 

 

Continuing operations

 

$ (0.18)

$ (0.06)

$

(0.56)

$

(0.31)

Discontinued operations

 

-

              0.02

 

-

 

0.03

Net loss per share

 

$ (0.18)

$ (0.04)

$

(0.56)

$

(0.28)

Weighted average shares outstanding

 

 

 

 

 

Basic

 

27,875

25,882

 

26,784

 

25,722

Diluted

 

27,875

25,882

 

26,784

 

25,722

 

 

 

 

 

 

(1) Includes depreciation expense of:

 

1,667

1,604

 

6,527

 

6,286

(2) Net of CARES Act Stimulus of:

 

-

2,410

 

2,321

 

4,601

(3) Net of CARES Act Stimulus of:

 

-

84

 

84

 

168

 

 

Great Elm Group, Inc.

Reconciliation from EBITDA to Adjusted EBITDA - Quarterly

Dollar amounts in thousands (except per share data)

 

 

For the three months ended June 30, 2022

 

$ in thousands

 

Durable Medical Equipment

 

 

Investment Management

 

 

General Corporate

 

 

Consolidated

 

EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations - GAAP(1)

 

$

(244

)

 

$

(1,800

)

 

$

(2,805

)

 

$

(4,849

)

Interest expense

 

 

1,142

 

 

 

89

 

 

 

1,583

 

 

 

2,814

 

Interest income from preferred stock

 

 

-

 

 

 

-

 

 

 

(1,106

)

 

 

(1,106

)

Depreciation & amortization

 

 

2,079

 

 

 

217

 

 

 

-

 

 

 

2,296

 

Tax expense (benefit)

 

 

-

 

 

 

-

 

 

 

107

 

 

 

107

 

EBITDA

 

 

2,977

 

 

 

(1,494

)

 

 

(2,221

)

 

 

(738

)

Adjusted EBITDA(1)

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash compensation

 

 

-

 

 

 

268

 

 

 

371

 

 

 

639

 

Change in contingent consideration

 

 

259

 

 

 

-

 

 

 

-

 

 

 

259

 

Dividend income

 

 

-

 

 

 

(1,158

)

 

 

(62

)

 

 

(1,220

)

(Gains) / losses on investments

 

 

-

 

 

 

2,312

 

 

 

450

 

 

 

2,762

 

Other (income) expense

 

 

(1,361

)

 

 

-

 

 

 

1,361

 

 

 

-

 

Transaction and integration related costs (2)

 

 

1,573

 

 

 

-

 

 

 

(581

)

 

 

992

 

DME management and monitoring fees

 

 

119

 

 

 

-

 

 

 

(119

)

 

 

-

 

Adjusted EBITDA(1)

 

$

3,567

 

 

$

(72

)

 

$

(801

)

 

$

2,694

 

 

 

 

For the year ended June 30, 2022

 

$ in thousands

 

Durable Medical Equipment

 

 

Investment Management

 

 

General Corporate

 

 

Consolidated

 

EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations - GAAP(1)

 

$

(3,845

)

 

$

(8,552

)

 

$

(2,640

)

 

$

(15,037

)

Interest expense

 

 

4,987

 

 

 

161

 

 

 

5,384

 

 

 

10,532

 

Interest income on preferred stock

 

 

-

 

 

 

-

 

 

 

(4,746

)

 

 

(4,746

)

Depreciation & amortization

 

 

8,264

 

 

 

523

 

 

 

1

 

 

 

8,788

 

Tax expense (benefit)

 

 

-

 

 

 

-

 

 

 

21

 

 

 

21

 

EBITDA

 

$

9,406

 

 

$

(7,868

)

 

$

(1,980

)

 

$

(442

)

Adjusted EBITDA(1)

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash compensation

 

 

-

 

 

 

1,872

 

 

 

1,339

 

 

 

3,211

 

Change in contingent consideration

 

 

(121

)

 

 

-

 

 

 

-

 

 

 

(121

)

Dividend income

 

 

-

 

 

 

(2,809

)

 

 

(352

)

 

 

(3,161

)

(Gains) / Losses on investments

 

 

-

 

 

 

8,442

 

 

 

(346

)

 

 

8,096

 

Other (income) expense

 

 

2,107

 

 

 

-

 

 

 

(2,109

)

 

 

(2

)

Transaction and integration costs (2)

 

 

2,031

 

 

 

-

 

 

 

(270

)

 

 

1,761

 

DME management and monitoring fees

 

 

426

 

 

 

-

 

 

 

(426

)

 

 

-

 

Adjusted EBITDA(1)

 

$

13,849

 

 

$

(363

)

 

$

(4,144

)

 

$

9,342

 

 

 

 

 

For the three months ended June 30, 2021

 

$ in thousands

 

Durable Medical Equipment

 

 

Investment Management

 

 

General Corporate

 

 

Consolidated

 

EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations - GAAP(1)

 

$

5,906

 

 

$

1,311

 

 

$

(8,296

)

 

$

(1,079

)

Interest expense

 

 

1,274

 

 

 

25

 

 

 

1,167

 

 

 

2,466

 

Interest income from preferred stock

 

 

-

 

 

 

-

 

 

 

(1,186

)

 

 

-

 

Depreciation & amortization

 

 

2,079

 

 

 

109

 

 

 

-

 

 

 

2,188

 

Tax expense (benefit)

 

 

-

 

 

 

-

 

 

 

1,669

 

 

 

1,669

 

EBITDA

 

 

9,259

 

 

 

1,445

 

 

 

(6,646

)

 

 

4,058

 

Adjusted EBITDA(1)

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash compensation

 

 

-

 

 

 

185

 

 

 

240

 

 

 

425

 

Change in contingent consideration

 

 

(126

)

 

 

-

 

 

 

-

 

 

 

(126

)

Dividend Income

 

 

-

 

 

 

(554

)

 

 

-

 

 

 

(554

)

(Gains) / Losses on investments

 

 

-

 

 

 

(981

)

 

 

-

 

 

 

(981

)

Other (income) expense

 

 

(5,457

)

 

 

-

 

 

 

5,442

 

 

 

(15

)

Transaction and integration related costs (2)

 

 

461

 

 

 

-

 

 

 

254

 

 

 

715

 

DME management and monitoring fees

 

 

168

 

 

 

-

 

 

 

(168

)

 

 

-

 

Adjusted EBITDA(1)

 

$

4,305

 

 

$

95

 

 

$

(878

)

 

$

3,522

 

 

 

 

For the year ended June 30, 2021

 

$ in thousands

 

Durable Medical Equipment

 

 

Investment Management

 

 

General Corporate

 

 

Consolidated

 

EBITDA:

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss) from continuing operations - GAAP(1)

 

$

(2,489

)

 

$

2,723

 

 

$

(8,753

)

 

$

(8,519

)

Interest expense

 

 

3,950

 

 

 

101

 

 

 

3,251

 

 

 

7,302

 

Interest income on preferred stock

 

 

-

 

 

 

-

 

 

 

(2,354

)

 

 

(2,354

)

Depreciation & amortization

 

 

8,195

 

 

 

473

 

 

 

1

 

 

 

8,669

 

Tax expense (benefit)

 

 

-

 

 

 

-

 

 

 

1,675

 

 

 

1,675

 

EBITDA

 

 

9,656

 

 

 

3,297

 

 

 

(6,180

)

 

 

6,773

 

Adjusted EBITDA(1)

 

 

 

 

 

 

 

 

 

 

 

 

Non-cash compensation

 

 

-

 

 

 

757

 

 

 

998

 

 

 

1,755

 

Change in contingent consideration

 

 

-

 

 

 

-

 

 

 

-

 

 

 

-

 

Dividend income

 

 

-

 

 

 

(2,954

)

 

 

-

 

 

 

(2,954

)

(Gains) / losses on investments

 

 

-

 

 

 

(721

)

 

 

-

 

 

 

(721

)

Other (income) expense

 

 

(764

)

 

 

-

 

 

 

647

 

 

 

(117

)

Transaction and integration related costs (2)

 

 

3,107

 

 

 

-

 

 

 

670

 

 

 

3,777

 

DME management and monitoring fees

 

 

392

 

 

 

-

 

 

 

(350

)

 

 

42

 

Adjusted EBITDA(1)

 

$

12,391

 

 

$

379

 

 

$

(4,215

)

 

$

8,555

 

 

(1)
Previously reported amounts below have been recast to reflect the full retrospective adoption of ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity and to conform with current segment organization.
(2)
Transaction and integration related costs include costs to acquire and integrate acquired businesses.