Great Elm Capital Group, Inc. (NASDAQ:GEC) Q3 2020 Earnings Conference Call - Final Transcript

May 12, 2020 • 08:00 am ET


Great Elm Capital Group, Inc. (NASDAQ:GEC) Q3 2020 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by and welcome to the Great Elm Capital Group, Inc. Q1 2020 Conference Call and Webcast. [Operator Instructions]

I would now like to hand the conference over to your speaker today Adam Yates. Please go ahead, sir.

Adam Yates

Thank you, Emily, and good afternoon, everyone. Thank you for joining us for Great Elm Capital Group, Inc.'s first quarter 2020 earnings conference call. As a reminder, this webcast is being recorded on Tuesday, November 12, 2019. If you'd like to be added to our distribution list, you can either email Investor Relations at or sign up for alerts directly on our website. A slide presentation accompanying this afternoon's conference call and webcast can be found on Great Elm Capital Group's website, under Events & Presentations. A link to the webcast is also available on this section of our website, as well as in the press release that was disseminated to announce the quarterly results.

I'd like to call your attention to the customary Safe Harbor Statement regarding forward-looking information. Also, please note that nothing in today's call constitutes an offer to sell or a solicitation of offers to purchase our securities.

Today's conference call includes forward-looking statements and projections, and we ask that you refer to Great Elm Capital Group's filings with the SEC for important factors that could cause actual results to differ materially from these projections. Great Elm Capital Group does not undertake to update its forward-looking statements unless required by law. To obtain copies of the SEC filings, please visit Great Elm Capital Group's website under financial info and select SEC filings.

Hosting our call this morning is Peter Reed, Great Elm Capital Group's Chief Executive Officer. I will now turn the call over to Peter.

Peter Reed

Thank you, Adam, and good afternoon, everyone. Thank you for joining us today. I am joined this afternoon by our President and COO, Adam Kleinman; our CFO, Brent Pearson and two senior members of our investment teams, Adam Yates and John Ehlinger.

We will walk through an update on our Operating Companies, Investment Management, Real Estate and General Corporate business segments as well as their associated financials. Where relevant in our prepared remarks, we will point you to the corresponding slide in the presentation that Adam referenced.

Please turn to Slide 5. During the quarter ended September 30, 2019, we've reported consolidated revenue, net loss and adjusted EBITDA of $15.4 million, $3.3 million and $3.5 million, respectively. We are intently focused on growing both revenue and profitability across our verticals.

Please turn to Slide 7 to discuss drivers of shareholder value. We have clear objectives in each of our verticals. In Operating Companies, we're focused on acquiring undercapitalized companies with significant growth potential, both organic and through M&A. In Investment Management, we seek to increase assets under management, both in GECC and in other investment vehicles managed by GECM. In Real Estate, we are interested in partnering with owners and lessees to utilize our substantial