Great Elm Group, Inc.

Good morning. My name is Rob and I will be your conference operator today. At this time, I would like to welcome everyone to the Great Elm Group fiscal 2022 fourth quarter results conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press the star 1. Thank you. Adam Yates, Managing Director, you may begin your conference.

Thank you, and good morning, everyone. Thank you for joining us for Great Elm Group's fiscal fourth quarter and year-end 2022 earnings conference call. As a reminder, this conference call is being recorded on Tuesday, September 13, 2022. If you would like to be added to our distribution list, You can email investorrelations at 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. I would 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 Group's filings with the SEC for important factors that could cause actual results to differ materially from these projections. Great Elm Group does not undertake to update its forward-looking statements unless required by law. To obtain copies of SEC filings, please visit Great Elm Group's website under Financial Information and select SEC Filings. Great Elm Group is a holding company comprised of two verticals, investment management and operating companies. In investment management, we seek to drive sustainable growth in assets under management across Great Elm Capital Corp. a publicly traded BDC, Monomoy REIT, as well as other investment vehicles. In operating companies, we manage Great Elm Durable Medical Equipment, or DME, a distributor of respiratory care equipment and sleep study services. Hosting the call today is Peter Reed, Great Elm Group's Chief Executive Officer. I will now turn the call over to Peter.

Welcome, everyone, and thank you for joining us today. I am joined this morning by our President, Adam Kleinman, and our CFO, Brent Pearson. This fiscal fourth quarter and year-ended June 30, 2022, were highlighted by two key milestones. First, as discussed on our prior earnings call, we recently closed on the acquisition of the Investment Management Agreement for Monomoy Properties REIT, a private real estate investment trust. with a portfolio of diversified net leased industrial assets representing $358 million of real estate. This was a transformative deal for Great Elm that more than doubled our AUM and jump-started our strategic initiative of managing a scalable and diversified portfolio of long duration and permanent capital vehicles that generate recurring fees. Looking forward, acquisition of Monomoy REIT adds scale and accelerates growth in our investment management segment, thereby driving long-term shareholder value for GEG. More specifically, the transaction is off to a good start with the fund's NAV up from $180 million at the time of the deal to $201 million as of June 30, 2022, inclusive of the $15 million investment from GEG. In addition, Monomoy's backlog of transactions remains strong, boding well for further growth in NAV and related fees. Second, following the Monomoy transaction, we issued $27 million of five-year baby bonds carrying an interest rate of 7.25%, 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. In addition, GECC raised $37.5 million of new equity capital upon completion of its rights offering. Stepping back, the success of these offerings reinforces GEG's ability to raise fixed-rate debt in a timely and cost-effective manner. Going forward, we believe we can drive meaningful growth in shareholder equity by deploying proceeds from further capital raises into existing funds or new investment vehicles that offer durable income streams and compelling total return potential. Turning to our results for the quarter and year ended June 30, 2022, we delivered strong financial performance highlighted by consolidated revenue growth of 11% for the fiscal fourth quarter on a year-over-year basis and 12% growth in fiscal 2022. Topline growth was broad-based across our investment management and DME segments. Starting with investment management, revenue grew by 72% versus the prior year quarter and 44% in fiscal 2022, driven by higher AUM for GECC and our other investment vehicles combined with the acquisition of Monomoy. Beyond the step-up in management fees related to Monomoy, key growth drivers going forward include additional capital markets financings and private fundraising initiatives for GECC, opportunistic M&A, and new fund launches. Shifting to our durable medical equipment business, our multi-year investment in building a scalable platform drove a significant improvement in profitability, highlighted by a 37% growth in adjusted EBITDA year-over-year assuming the amount of government stimulus received in 2021 was the same as in 2022. We were able to accomplish this despite persistent supply chain issues and limited medical device inventories, reinforcing the segment's durable competitive advantages. Before I turn it over to Brent, I want to reinforce two key differentiating factors of Great Elm that we have discussed in the past. First, as of June 30, 2022, we have approximately $820 million of net operating loss carry-forwards, which not only shield our future earnings from federal income taxes, but also enhance the financial attractiveness of potential acquisitions of other long-duration capital vehicles. Second, I want to reiterate the strong alignment between the Great Elm team and GEG shareholders. Great Elm employees and directors, including funds under their management, collectively own or manage approximately 40% of GEG's outstanding shares, which reinforces the strong alignment of interest between management and shareholders. With that, I'll turn it over to Brent to discuss our financial results for the quarter in more detail.