Great Elm Group, Inc. (NASDAQ:GEG) Q1 2024 Earnings Call Transcript
Great Elm Group, Inc. (NASDAQ:GEG) Q1 2024 Earnings Call Transcript November 10, 2023
Operator: Ladies and gentlemen, thank you for standing by. My name is Cheryl, and I'll be your conference operator today. At this time, I'd like to welcome everyone to the Great Elm Capital Group Earnings Conference Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. [Operator Instructions] Thank you. I would now like to turn the call over to Adam Yates. Please go ahead.
Adam Yates: Good morning, everyone. Thank you for joining us for Great Elm Group's Fiscal First Quarter 2024 Earnings Conference Call. As a reminder, this conference call is being recorded on Thursday, November 9, 2023. If you would like to be added to our distribution list, you can e-mail geginvestorrelations@greatelmcap.com or you can sign up for alerts directly on our website, www.greatelmgroup.com. The slide presentation accompanying today's conference call and webcast can be found on our website under Events and Presentations. A link to the webcast is also available on our website as well as in the press release that was disseminated to announce the quarterly results. Today's conference call includes forward-looking statements, and we ask that you refer to Great Elm Group's filings with the SEC for important factors that could cause actual results to differ materially from these statements.
Great Elm Group does not undertake to update its forward-looking statements unless required by law. In addition, during today's call, management will refer to certain non-GAAP financial measures. Reconciliations to the most comparable financial measures are included in our earnings release. To obtain copies of our SEC filings, please visit Great Elm Group's website under Financial Information and select SEC filings. On the call today, we have Jason Reese, CEO; Adam Kleinman, President and General Counsel; Nichole Milz, COO; and Keri Davis, CFO. I will now turn the call over to Jason Reese, CEO.
An executive in a suit and tie at a meeting discussing asset management strategies.
Jason Reese: Welcome, everyone, and thank you for joining us. Great Elm Group had a strong start to fiscal 2024. We continue to grow our fee-paying assets under management on both a sequential quarter and year-over-year basis. We generated net income of nearly $3 million and more than doubled our EBITDA on a year-over-year basis. We also ended the quarter with over $75 million in cash and marketable securities to deploy across our growing alternative asset management platform. In particular, I want to highlight that this is our first clean quarter of reporting as a streamlined asset management business. In the fiscal first quarter, we have a clear year-over-year comparison that includes the results of managing the Monomoy Properties REIT vehicle acquired in May 22.
Additionally, we no longer see the impact of our divested businesses. Going forward, investors can easily measure our progress toward our strategic growth plans. With legacy operations behind us, our team is purely focused on asset management in the first fiscal quarter. Working to expand the platform, we made great strides organically to launch a private credit fund in fiscal second quarter and continued the execution of our novel build-to-suit projects in our Monomoy BTS business. Inorganically, we continue to actively evaluate multiple strategic M&A opportunities and have a robust pipeline due diligence in the second quarter. Focusing on our two anchor vehicles, Monomoy and GECC, we have driven both fee revenue growth and AUM growth at both platforms.
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