"Great Elm Capital Corp: Q4 2024 Earnings Call - A Mixed Bag of Opportunities and Challenges"

Ladies and gentlemen, buckle up! We're diving into the Q4 2024 earnings call of Great Elm Capital Corp (GECC), and it's a rollercoaster ride of financial highs and lows. Let's break it down!

First things first, GECC reported a net investment income (NII) of $2.1 million, or $0.20 per share, for Q4 2024. That's a significant drop from the previous quarter's $4.1 million, or $0.39 per share. OUCH! But don't hit the panic button just yet. The decline was primarily due to the uneven cash flows from their CLO Formation JV, LLC (CLO JV). In Q4, GECC received a mere $0.5 million from the CLO JV, compared to $3.2 million in the previous quarter. Talk about a cash flow crunch!



But here's the silver lining: GECC raised $13.2 million in equity at net asset value in December 2024. That's a big win for their capital base! And get this—the Board of Directors approved a 5.7% increase in the quarterly dividend to $0.37 per share for Q1 2025. That's a 13.7% annualized yield based on the closing market price on March 7, 2025. Not too shabby, right?

Now, let's talk about the elephant in the room: the CLO JV. This venture was supposed to enhance GECC's cash-generating ability, but the timing of distributions has been a nightmare. However, management expects that as the CLO JV matures, the cash flows will stabilize, leading to stronger NII in 2025. Fingers crossed!



But wait, there's more! GECC declared a $0.05 per common share special distribution in December 2024. That's a testament to their strong performance throughout 2024. They raised nearly $150 million in capital through multiple equity and note issuances, including $50 million of equity at net asset value. Impressive, right?

So, what's the bottom line? GECC had a mixed bag of opportunities and challenges in Q4 2024. The decline in NII was a setback, but the equity raise and dividend increase show that the company is still in the game. As for the CLO JV, it's a wait-and-see situation. But one thing is for sure: GECC is not going down without a fight. Stay tuned for more updates, and remember: the market is a beast, but with the right strategy, you can tame it!