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Great Elm Capital Corporation (GECC)

NasdaqGM - NasdaqGM Real Time Price. Currency in USD
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Previous Close3.3600
Open3.4400
Bid3.4100 x 1000
Ask3.5000 x 1000
Day's Range3.3900 - 3.5200
52 Week Range2.2500 - 8.5420
Volume144,915
Avg. Volume129,404
Market Cap37.667M
Beta (5Y Monthly)1.73
PE Ratio (TTM)N/A
EPS (TTM)-4.0880
Earnings DateAug 07, 2020
Forward Dividend & Yield1.00 (29.64%)
Ex-Dividend DateSep 29, 2020
1y Target Est2.82
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  • GlobeNewswire

    Great Elm Capital Corp. Announces Non-Transferable Rights Offering

    WALTHAM, Mass., Aug. 31, 2020 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“the Company” or “GECC”) (NASDAQ: GECC) announced today that its Board of Directors has approved the terms of a non-transferable subscription rights offering to purchase shares of its common stock. The Company will issue to its stockholders of record as of 5:00 p.m. New York City time, on September 4, 2020, non-transferable rights to subscribe for up to an aggregate of 10,761,950 shares of the Company’s common stock. Record date stockholders will receive one right for each share of common stock owned on the record date. The rights entitle the holders to purchase at the subscription price one new share of common stock for every one right held, and record date stockholders who fully exercise their rights will be entitled to subscribe, subject to certain limitations set forth in the prospectus and subject to allotment, for additional shares of common stock that were not subscribed for by other holders of record.  Stockholders may exercise their rights at any time during the subscription period, which commences on September 8, 2020 and ends at 5:00 p.m., New York City time, on September 28, 2020, unless extended by the Company in its sole discretion (the “Expiration Date”).The Company intends to use the net proceeds from the offering primarily to (i) make opportunistic investments, in accordance with its investment objectives and policies, in assets that the Company’s external investment manager, Great Elm Capital Management, Inc., believes have become undervalued due to the current extreme market volatility, and on more attractive terms than the Company would otherwise be able to obtain under typical, less volatile market conditions and (ii) support its existing portfolio companies through the COVID-19 pandemic.“This offering will allow us to continue implementing the portfolio repositioning we began in the second quarter, including by pursuing additional opportunities in the specialty finance sector,” remarked Peter A. Reed, GECC’s Chief Executive Officer. “These opportunities, which may offer more attractive returns than can be found in syndicated corporate credit, also help to make our portfolio more proprietary.  We remain intently focused on creating stockholder value by diversifying our portfolio, maintaining significant liquidity and further strengthening our balance sheet.”The rights are non-transferable and will not be listed for trading on the Nasdaq Global Market or any other stock exchange. The rights may not be purchased or sold, and there will not be any market for trading the rights. The shares of the Company’s common stock to be issued pursuant to the offering will be listed for trading on the Nasdaq Global Market under the symbol “GECC.”Great Elm Capital Group, Inc. and certain of the Company’s other stockholders (the “Participating Shareholders”) have indicated that they intend to fully exercise their rights and over-subscribe in order to make an aggregate investment of up to $24 million in shares of the Company’s common stock. Any over-subscription by the Participating Shareholders will be effected only after pro rata allocation of over-subscription shares to record date holders (other than the Participating Shareholders) who fully exercise all rights issued to them. Accordingly, there can be no assurance that the Participating Shareholders will acquire any shares of the Company’s common stock through their exercise of over-subscription privileges.The subscription price for the shares of common stock to be issued pursuant to the offering will be 85% of the volume-weighted average of the market price of the Company’s shares of common stock on the Nasdaq Global Market for the five consecutive trading days ending on the Expiration Date. Because the subscription price will be determined on the Expiration Date, rights holders who decide to acquire shares of common stock pursuant to their primary subscription rights or pursuant to the over-subscription privilege will generally not know the actual subscription price at the time of exercise. Rights holders who decide to acquire shares will be required initially to pay for the shares subscribed for at the estimated subscription price disclosed in the prospectus (and may be required to pay an additional amount or receive a partial refund, depending on the final subscription price).Important Dates to RememberRecord Date September 4, 2020 at 5:00 p.m. New York City time Subscription Period From September 8, 2020 to September 28, 2020 (unless the offering is extended) Expiration Date September 28, 2020 (unless the offering is extended) Deadline for Delivery of Subscription Certificates and Payment for Shares September 28, 2020 at 5:00 p.m. New York City time (unless the offering is extended) Imperial Capital, LLC and Piper Sandler & Co. are acting as dealer managers for the offering.About Great Elm Capital Corp.Great Elm Capital Corp. is an externally managed, specialty finance company focused on investing in debt instruments of middle market companies. GECC elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. GECC targets catalyst-driven investments as it seeks to generate attractive, risk-adjusted returns through both current income and capital appreciation.Investors are advised to carefully consider the investment objectives, risks and charges and expenses of GECC before investing.  The prospectus contains this and other important information you should know before investing in the common stock.  Please read it and other documents referred to therein carefully in their entirety before you invest.  A copy of the prospectus may be obtained by contacting Imperial Capital, LLC, Attention: Prospectus Department, 10100 Santa Monica Blvd., Suite 2400, Los Angeles, CA 90067 or by phone: 310-246-3700 or Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, by email at prospectus@psc.com or by phone: 1-800-747-3924.GECC files annual, quarterly and current reports, proxy statements and other information about GECC with the Securities and Exchange Commission (“SEC”).  You may also obtain free copies of GECC’s annual and quarterly reports and make stockholder inquiries by contacting Great Elm Capital Corp., 800 South Street, Suite 230, Waltham, Massachusetts 02453 or by calling GECC collect at (617) 375-3006.  GECC maintains a website at http://greatelmcc.com and makes all of its annual, quarterly and current reports, proxy statements and other publicly filed information available, free of charge, on or through such website.  Information on GECC’s website is not incorporated or a part of the prospectus.  The SEC also maintains a website at http://www.sec.gov where such information is available without charge.Cautionary Statement Regarding Forward-Looking StatementsStatements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements are often, but not always, made through the use of words or phrases such as “expect,” “anticipate,” “should,” “will,” “estimate,” “designed,” “seek,” “continue,” “upside,” “potential” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are: conditions in the credit markets, the price of GECC common stock, the performance of GECC’s portfolio and investment manager and risks associated with the economic impact of the COVID-19 pandemic on GECC and its portfolio companies. Information concerning these and other factors can be found in GECC’s Annual Report on Form 10-K, GECC’s Quarterly Reports on Form 10-Q and other reports filed with the SEC. GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.Media & Investor Contact:Investor Relations +1 (617) 375-3006 investorrelations@greatelmcap.com

  • Great Elm Capital Group, Inc. (GECC) Misses Q2 Earnings and Revenue Estimates
    Zacks

    Great Elm Capital Group, Inc. (GECC) Misses Q2 Earnings and Revenue Estimates

    Great Elm Capital Group, Inc. (GECC) delivered earnings and revenue surprises of -55.00% and -22.22%, respectively, for the quarter ended June 2020. Do the numbers hold clues to what lies ahead for the stock?

  • GlobeNewswire

    Great Elm Capital Corp. Announces Second Quarter 2020 Financial Results; Begins Portfolio Repositioning; Maintains Liquid Balance Sheet; Grows Net Assets; Board Sets Fourth Quarter 2020 Distribution of $0.083 Per Share Per Month

    WALTHAM, Mass., Aug. 07, 2020 (GLOBE NEWSWIRE) -- Great Elm Capital Corp. (“we,” “us,” “our” or “GECC”), (NASDAQ: GECC), today announced its financial results for the quarter ended June 30, 2020.FINANCIAL HIGHLIGHTS * During the quarter ended June 30, 2020, we began repositioning the portfolio, including intentionally taking actions that depressed net investment income (“NII”) in order to create liquidity * Specifically, as the impact of COVID-19 increased volatility in the leveraged credit secondary markets, we proactively monetized investments in anticipation of more attractive redeployment opportunities * Toward the end of the quarter ended June 30, 2020 and following quarter end, we redeployed a majority of our cash into new, cash-generative investment opportunities that diversify our holdings * As we continue to diversify our holdings, we intend to weight investments in specialty finance businesses, like Prestige Capital Finance, LLC (“Prestige”), whose performance has exceeded internal expectations, more significantly in our future portfolio * NII for the quarter ended June 30, 2020 was approximately $0.9 million, or $0.09 per share, as compared to NII per share of $2.7 million or $0.26 per share for the quarter ended March 31, 2020 * The quarter-over-quarter reduction in NII was driven by the monetization of certain income-generating investments as we continued to meaningfully grow our cash balance and the loss of cash and noncash income from investments placed on nonaccrual status during the prior quarter * Net realized gains for the quarter ended June 30, 2020 were approximately $0.9 million, or $0.09 per share. Net unrealized appreciation from investments for the quarter ended June 30, 2020 was approximately $1.7 million, or $0.16 per share * As of June 30, 2020, our asset coverage ratio was approximately 144.5%, up from 141.1% as of March 31, 2020, vs. a minimum asset coverage ratio of 150.0% (the “Minimum ACR”) * As a result of continuing to report an asset coverage ratio below the Minimum ACR, we are subject to certain limitations on our ability to incur additional debt, make cash distributions on junior securities or repurchase junior securities * During the quarter ended June 30, 2020, we repurchased $4.2 million in aggregate principal of our senior notes at a weighted average price of $19.18 per note * In August 2020, our Board of Directors (the “Board”) set monthly distributions of $0.083 per share for the fourth quarter of 2020 * The distributions will be paid in cash or shares of our common stock at the election of shareholders, although the total amount of cash to be distributed to all shareholders will be limited to approximately 10% of the total distributions to be paid to all shareholders; the remainder of the distributions (approximately 90%) will be paid in the form of shares of our common stock * Net assets on June 30, 2020 were approximately $53.2 million as compared to net assets on March 31, 2020 of $50.8 million, a 4.5% increase. NAV per share on June 30, 2020 was $5.10, as compared to NAV per share of $5.05 on March 31, 2020, as our share count increased by approximately 3.6%“This quarter marked the beginning of GECC’s portfolio repositioning,” remarked Peter A. Reed, GECC’s Chief Executive Officer. “Our net investment income was substantially reduced by, among other drivers, proactive sales of investments to improve our liquidity profile. Since quarter end, we have made meaningful progress redeploying the bulk of our cash balance into high quality, income-generating investments. We remain focused on diversifying our portfolio, maintaining significant liquidity and further strengthening our balance sheet. Our investment in Prestige continues to exceed our expectations and has led to an increased number of opportunities in specialty finance. Going forward, we intend to increase our focus on the specialty finance sector.”PORTFOLIO AND INVESTMENT ACTIVITYAs of June 30, 2020, we held 29 debt investments, totaling approximately $121.0 million and representing 82.7% of the fair market value of our total investments. First lien and/or secured debt investments comprised 98.4% of the fair market value of our debt investments. As of the same date, we held eight equity investments, totaling approximately $25.2 million and representing 17.3% of the fair market value of our total investments.As of June 30, 2020, the weighted average current yield on our debt portfolio was 10.2%. Floating rate instruments comprised approximately 62.6% of the fair market value of debt investments.During the quarter ended June 30, 2020, we deployed approximately $15.9 million into nine investments(1), at a weighted average current yield of 12.2% The weighted average price of the debt deployment activity was 92% of par.During the quarter ended June 30, 2020, we monetized, in part or in full, 17 investments for approximately $37.5 million(2), at a weighted average current yield of 6.5%. The weighted average realized price was 98% of par.CONSOLIDATED RESULTS OF OPERATIONSTotal investment income for the quarter ended June 30, 2020 was approximately $4.8 million, or $0.47 per share. Total expenses for the quarter ended June 30, 2020 were approximately $3.9 million, or $0.38 per share. Net realized gains for the quarter ended June 30, 2020 were approximately $0.9 million, or $0.09 per share. Net unrealized appreciation from investments for the quarter ended June 30, 2020 was approximately $1.7 million, or $0.16 per share.LIQUIDITY AND CAPITAL RESOURCESAs of June 30, 2020, our cash balance was approximately $31.0 million, exclusive of our holdings of United States Treasury Bills. Total debt outstanding as of June 30, 2020 was $119.5 million, comprised of our 6.50% senior notes due September 2022 (NASDAQ: GECCL), our 6.50% senior notes due June 2024 (NASDAQ: GECCN) and our 6.75% senior notes due January 2025 (NASDAQ: GECCM). During the quarter ended June 30, 2020, we repurchased $4.2 million in aggregate principal of our senior notes at a weighted average price of $19.18 per note. Importantly, as of June 30, 2020, we had no secured credit facility, which allows for greater flexibility in the use of our cash and other assets.As of June 30, 2020, our asset coverage ratio was approximately 144.5%, up from 141.1% as of March 31, 2020. We are subject to a Minimum ACR of 150.0%, per the proposal that was approved at our 2018 Annual Stockholders’ Meeting. As a result of continuing to report an asset coverage ratio below the Minimum ACR during the quarter ended June 30, 2020, we are subject to certain limitations on our ability to incur additional debt, make cash distributions on junior securities or repurchase junior securities, in each case, in accordance with the Investment Company Act of 1940, as amended, and the indentures governing our outstanding notes, until such time we are above the Minimum ACR.SELECT SUBSEQUENT ACTIVITYDistributions As previously announced, in May 2020, our Board set monthly distributions of $0.083 per share for the third quarter of 2020, through the month ending September 30, 2020. The distributions will be paid in cash or shares of our common stock at the election of shareholders, although the total amount of cash to be distributed to all shareholders will be limited to approximately 10% of the total distributions to be paid to all shareholders. The remainder of the distributions (approximately 90%) will be paid in the form of shares of our common stock, in accordance with applicable law and the indentures governing our outstanding notes.In August 2020, our Board set monthly distributions of $0.083 per share for the fourth quarter of 2020, through the month ending December 31, 2020. The distributions will be paid in cash or shares of our common stock at the election of shareholders, although the total amount of cash to be distributed to all shareholders will be limited to approximately 10% of the total distributions to be paid to all shareholders. The remainder of the distributions (approximately 90%) will be paid in the form of shares of our common stock, in accordance with applicable law and the indentures governing our outstanding notes.CONFERENCE CALL AND WEBCASTGreat Elm Capital Corp. will host a conference call and webcast on Monday, August 10, 2020 at 10:00 a.m. Eastern Time to discuss its second quarter financial results. All interested parties are invited to participate in the conference call by dialing +1 (844) 820-8297; international callers should dial +1 (661) 378-9758. Participants should enter the Conference ID 9372556 when asked. For a copy of the slide presentation that will be referenced during the course of our conference call, please visit: http://www.investor.greatelmcc.com/events-and-presentations/presentationsThe conference call will be webcast simultaneously at: https://edge.media-server.com/mmc/p/fzae6hstAbout Great Elm Capital Corp. Great Elm Capital Corp. is an externally managed, specialty finance company focused on investing in debt instruments of middle market companies. GECC elected to be regulated as a business development company under the Investment Company Act of 1940, as amended. GECC targets catalyst-driven investments as it seeks to generate attractive, risk-adjusted returns through both current income and capital appreciation.Cautionary Statement Regarding Forward-Looking Statements Statements in this communication that are not historical facts are “forward-looking” statements within the meaning of the federal securities laws. These statements are often, but not always, made through the use of words or phrases such as “expect,” “anticipate,” “should,” “will,” “estimate,” “designed,” “seek,” “continue,” “upside,” “potential” and similar expressions. All such forward-looking statements involve estimates and assumptions that are subject to risks, uncertainties and other factors that could cause actual results to differ materially from the results expressed in the statements. Among the key factors that could cause actual results to differ materially from those projected in the forward-looking statements are: conditions in the credit markets, the price of GECC common stock, the performance of GECC’s portfolio and investment manager and risks associated with the economic impact of the COVID-19 pandemic on GECC and its portfolio companies. Information concerning these and other factors can be found in GECC’s Annual Report on Form 10-K and other reports filed with the SEC. GECC assumes no obligation to, and expressly disclaims any duty to, update any forward-looking statements contained in this communication or to conform prior statements to actual results or revised expectations except as required by law. Readers are cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof.This press release does not constitute an offer of any securities for sale.Endnotes:(1) This includes new deals, additional fundings (inclusive of those on revolving credit facilities), refinancings and capitalized PIK income. Amounts included herein do not include investments in short-term securities, including United States Treasury Bills. (2) This includes scheduled principal payments, prepayments, sales and repayments (inclusive of those on revolving credit facilities). Amounts included herein do not include investments in short-term securities, including United States Treasury Bills. GREAT ELM CAPITAL CORP.   CONSOLIDATED STATEMENTS OF ASSETS AND LIABILITIES     Dollar amounts in thousands (except per share amounts)       June 30, 2020 December 31, 2019 Assets     Investments     Non-affiliated, non-controlled investments, at fair value   (amortized cost of $137,138 and $168,269, respectively) $ 99,040  $ 147,412  Non-affiliated, non-controlled short-term investments, at fair value   (amortized cost of $74,964 and $85,733, respectively)   74,962    85,733  Affiliated investments, at fair value   (amortized cost of $106,696 and $102,704, respectively)   38,485    40,608  Controlled investments, at fair value   (amortized cost of $9,598 and $10,601, respectively)   8,736    9,595  Total investments   221,223    283,348        Cash and cash equivalents   30,977    4,606  Receivable for investments sold   1,531    -  Interest receivable   2,987    2,350  Dividends receivable   480    14  Due from portfolio company   729    617  Due from affiliates   15    15  Prepaid expenses and other assets   24    89  Total assets $ 257,966  $ 291,039        Liabilities     Notes payable 6.50% due September 18, 2022 (including unamortized discount   of $644 and $839, respectively) $ 30,011  $ 31,792  Notes payable 6.75% due January 31, 2025 (including unamortized discount   of $1,171 and $1,321, respectively)   44,439    45,078  Notes payable 6.50% due June 30, 2024 (including unamortized discount   of $1,768 and $2,058, respectively)   41,505    42,942  Payable for investments purchased   78,136    72,749  Interest payable   361    354  Distributions payable   865    1,338  Accrued incentive fees payable   8,484    8,157  Due to affiliates   747    997  Accrued expenses and other liabilities   264    743  Total liabilities $ 204,812  $ 204,150        Commitments and contingencies (Note 6) $ -  $ -        Net Assets     Common stock, par value $0.01 per share (100,000,000 shares authorized,  10,424,957 shares issued and outstanding and 10,062,682 shares issued and   outstanding, respectively) $ 104  $ 101  Additional paid-in capital   194,460    193,114  Accumulated losses   (141,410)   (106,326) Total net assets $ 53,154  $ 86,889  Total liabilities and net assets $ 257,966  $ 291,039  Net asset value per share $ 5.10  $ 8.63  GREAT ELM CAPITAL CORP.       CONSOLIDATED STATEMENTS OF OPERATIONS         Dollar amounts in thousands (except per share amounts)           For the Three Months Ended June 30, For the Six Months Ended June 30,    2020   2019   2020   2019  Investment Income:         Interest income from:         Non-affiliated, non-controlled investments $ 2,616  $ 3,673  $ 7,082  $ 7,522  Affiliated investments   243    213    470    411  Affiliated investments (PIK)   1,297    940    2,521    1,815  Controlled investments   28    539    98    1,053  Controlled investments (PIK)   -    299    -    583  Total interest income   4,184    5,664    10,171    11,384  Dividend income from:         Non-affiliated, non-controlled investments   -    138    3    211  Controlled investments   480    400    880    800  Total dividend income   480    538    883    1,011  Other income from:         Non-affiliated, non-controlled investments   26    32    56    132  Affiliated investments   -    2    -    2  Affiliated investments (PIK)   75    456    75    456  Controlled investments   3    19    12    39  Total other income   104    509    143    629  Total investment income $ 4,768  $ 6,711  $ 11,197  $ 13,024            Expenses:         Management fees $ 591  $ 742  $ 1,289  $ 1,448  Incentive fees   228    749    328    1,445  Administration fees   191    241    395    452  Custody fees   19    15    39    30  Directors’ fees   51    49    102    99  Professional services   250    229    507    468  Interest expense   2,390    1,571    4,695    3,025  Other expenses   132    120    274    278  Total expenses $ 3,852  $ 3,716  $ 7,629  $ 7,245  Net investment income $ 916  $ 2,995  $ 3,568  $ 5,779            Net realized and unrealized gains (losses):     Net realized gain (loss) on investment transactions from:         Non-affiliated, non-controlled investments $ (42) $ 410  $ (11,498) $ 1,018  Repurchase of debt   974    -    1,117    -  Total net realized gain (loss)   932    410    (10,381)   1,018  Net change in unrealized appreciation (depreciation) on investment transactions from:   Non-affiliated, non-controlled investments   2,472    (1,425)   (17,243)   718  Affiliated investments   (1,030)   (6,693)   (6,115)   (3,570) Controlled investments   221    335    144    (255) Total net change in unrealized appreciation (depreciation)   1,663    (7,783)   (23,214)   (3,107) Net realized and unrealized gains (losses) $ 2,595  $ (7,373) $ (33,595) $ (2,089) Net increase (decrease) in net assets resulting from operations $ 3,511  $ (4,378) $ (30,027) $ 3,690            Net investment income per share (basic and diluted): $ 0.09  $ 0.29  $ 0.35  $ 0.55  Earnings per share (basic and diluted): $ 0.34  $ (0.43) $ (2.96) $ 0.35  Weighted average shares outstanding (basic and diluted):   10,195,857    10,239,631    10,129,269    10,439,572  Media & Investor Contact:Investor Relations                                                                +1 (617) 375-3006                                                                                          investorrelations@greatelmcap.com