Hello. My name is Philip, and I will be your conference operator today. At this time, I would like to welcome everyone to the Great Elm Group, Inc. Q3 2021 Conference Call and Webcast. [Operator Instructions] I'd now like to turn the call over to your host, Jeehae Linford. Please go ahead.

Thank you, and good afternoon, everyone. Thank you for joining us for Great Elm Group's Fiscal Third Quarter 2021 Earnings Conference Call. As a reminder, this conference call is being recorded on Friday, May 14, 2021. If you would like to be added to our distribution list, you can e-mail investorrelations@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'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 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. Hosting the call today is Peter Reed, Great Elm Group's Chief Executive Officer. I will now turn the call over to Peter. Please go ahead.

Welcome, everyone, and thank you for joining us today. I'm joined this afternoon by our President and COO, Adam Kleinman; and our CFO, Brent Pearson. I will begin with a general overview and key highlights for the quarter. Brent will discuss our financial results in greater detail. And then I'll return for closing remarks. For those who may not be as familiar with Great Elm Group, I'll take a brief moment to review our general structure and strategy. Great Elm is a holding company and our objective is to create shareholder value through the collective efforts driving our 3 verticals, each of which employ a distinct strategy. In our operating companies, we currently manage Great Elm Durable Medical Equipment, or DME, a distributor of respiratory care equipment and sleep study services. In Investment Management, we seek to increase the assets under management, both in Great Elm Capital Corp. to publicly traded BDC and in other investment vehicles managed by Great Elm Capital Management, or GECM. In real estate, we're managing our existing investment in our Fort Myers property to monetize our substantial tax assets. Turning to results for our fiscal 2021 third quarter ended March 31, 2021. Overall, I'm pleased to report we had another productive quarter and that we are seeing positive momentum across our business. During the quarter, DME resumed its acquisition program and on March 1, announced the acquisition of Advanced Medical DME, LLC and PM Sleep Lab, LLC or as we refer to as AMPM for $1.1 million. This acquisition fits squarely within our stated strategy of utilizing tuck-in acquisitions as an avenue for growth. The acquisition of AMPM expands and complements the company's existing operating footprint in the Midwestern U.S. with the addition of 6 locations in Kansas and entry into Missouri with 3 locations.…

Thanks, Pete. I'll provide a brief overview, and of course, welcome all of you to review our filings in greater detail or reach out to our team with questions you may have. During the quarter ended March 31, 2021, we reported consolidated revenue of $15.1 million, net loss of $2.9 million and adjusted EBITDA of $3.6 million. For the same period last year, we reported consolidated revenue of $16.2 million, net loss of $11.9 million and adjusted EBITDA of $2.6 million. Great Elm reports the results of each of our 3 operating segments, including Durable Medical Equipment, Investment Management and Real Estate as well as unallocated general corporate activity. We'll begin the review with Durable Medical Equipment. For the fiscal third quarter, DME generated $13.1 million in revenue compared to $14.1 million last year. Gross medical equipment sales revenue grew by $0.3 million year-over-year, primarily attributable to organic growth of CPAP supply sales. However, revenue generated by sleep studies and rental revenues continued to be softened due to the ongoing impact of the pandemic. Gross sleep revenue was relatively flat year-over-year while gross rental revenues were down $0.8 million year-over-year. Furthermore, we also incurred increased revenue reserve adjustments across these revenue sources compared to last year. As Pete mentioned, we closed the acquisition of AMPM on March 1, and therefore, our results have 1 month of contributions from the acquired business. Adjusted EBITDA at DME for the quarter was $3.4 million compared to $2.5 million last year. Adjusted EBITDA increased primarily due to a benefit of $2.2 million related to employee retention credits claimed during the quarter that significantly offset DME's operating expenses. The net loss of $5.1 million at DME compares to a net loss of $1.4 million last year. The net loss was primarily impacted by a $4.8…

Thanks, Brent. We are pleased to have made tangible progress this quarter, including resuming acquisition activity at DME and further positioning Investment Management for growth as we cleaned up the corporate structure, fully implemented the new SPAC fund and acquired incremental funding capability. We also saw increasing momentum in terms of origination activity and portfolio improvement at GECC, which should drive future revenue at GECM. And we are optimistic heading into the rest of the calendar year. Over the last year, we believe we have taken the necessary actions in order to position our businesses for long-term success. We invested substantial time and resources in our DME platform, and we are now well positioned to take advantage of a reopening economy and more normal operating conditions. In Investment Management, we believe our portfolio has notably improved in quality, and the new revolving credit facility at GECC will provide additional flexibility for future growth. In closing, I will comment on a topic that many of you, who have been following us know well, and that is the extent to which our team and insiders are aligned with our shareholders in terms of their ownership in the company. Currently, our team at Great Elm collectively owns almost 2 million shares or 8% of the company, including our Board of Directors and their funds under management. Insiders collectively own or manage approximately 28% of the shares outstanding. This dynamic clearly fosters a significant and long-term alignment of interest among the employees, directors and other shareholders at Great Elm. With that, we will turn the call over to the operator to open for questions.

[Operator Instructions] I'd now like to turn the call back to management for closing remarks.

Thank you again for joining us today. We look forward to speaking to you again next quarter.

That does conclude today's conference. Thank you for participating. You may now disconnect. Have a great day.