In This Article:
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Net Investment Income (NII): $0.39 per share, up from $0.32 in Q2 2024.
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Net Asset Value (NAV) per Share: $12.04 as of September 30, 2024, compared to $12.06 as of June 30, 2024.
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Nonaccruals: $1.3 million, less than 1% of portfolio fair value as of September 30, 2024, down from $9.4 million or approximately 3% as of June 30, 2024.
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Total Debt Outstanding: Approximately $235 million as of September 30, 2024.
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Cash and Money Market Securities: Approximately $26 million as of September 30, 2024.
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Dividend Distribution: $0.35 per share for Q4, equating to an 11.6% annualized yield on September 30, 2024, NAV.
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CLO Joint Venture Investment: Approximately $33 million deployed through September 30, 2024, with $3 million in distributions received.
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Asset Coverage Ratio: 166.2% as of September 30, 2024, compared to 171% as of June 30, 2024.
Release Date: October 31, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Great Elm Capital Corp (NASDAQ:GECC) reported a record-setting quarter with the highest investment income and cash income in its history.
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The company successfully completed a $22 million add-on to the GECCI bonds and closed a second CLO in its CLO joint venture.
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Nonaccruals declined significantly, totaling less than 1% of portfolio fair value, indicating improved portfolio quality.
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GECC's net investment income (NII) increased to $0.39 per share, exceeding the quarterly distribution of $0.35 per share.
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The company issued $36 million of 8.125% GECCH notes due 2029, extending its debt maturity profile and enhancing financial flexibility.
Negative Points
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Net asset value (NAV) per share remained essentially flat, indicating limited growth in shareholder value.
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The company expects NII to decrease in the fourth quarter due to the uneven nature of CLO distributions.
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Great Elm Specialty Finance faced challenges in closing new business, impacting overall momentum.
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Great Elm Healthcare Finance underperformed, struggling with deal origination and high leverage costs.
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The asset coverage ratio decreased from 171% to 166.2%, reflecting a slight decline in financial stability.
Q & A Highlights
Q: Can you provide an overview of Great Elm Capital Corp's financial performance for the third quarter of 2024? A: Matt Kaplan, President & CEO, reported a record-setting quarter with the highest investment income in GECC's history. Net investment income (NII) was $0.39 per share, up from $0.32 in the previous quarter, and exceeded the quarterly distribution of $0.35. The NAV per share was stable at $12.04 as of September 30th. The company also completed significant equity and debt issuances, enhancing its scale and financial flexibility.