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 speakers' remarks, there will be a question-and-answer session. [Operator Instructions] 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 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 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 of 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, the 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 remain 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…

Thanks, Pete. I'll provide a brief overview, and of course, welcome all of you to review our filings in greater detail for reach out team with questions you may have. During the quarter ended June 30, 2022, we reported consolidated revenue of $18.1 million, a net loss of $4.8 million and adjusted EBITDA of $2.7 million. For the same period last year, we reported consolidated revenue of $16.3 million, a net loss from continuing operations of $1.1 million and adjusted EBITDA of $3.5 million. For fiscal 2022, we generated $68.0 million of revenue, a net loss of $15.0 million and adjusted EBITDA of $9.3 million on a consolidated basis. That compared to revenue of $60.9 million, a net loss of $8.5 million and adjusted EBITDA of $8.6 million for fiscal 2021. Great Elm reports the results of each of our two operating segments including Investment Management and Durable Medical Equipment as well as unallocated general corporate activity. We'll begin the review with Investment Management. For the fiscal fourth quarter, Investment Management reported total revenue of $1.5 million compared to $0.9 million during the same period in the prior year. For fiscal 2022, our Investment Management business generated $4.5 million in revenue compared to $3.2 million in the prior fiscal year. The increase primarily reflected higher assets under management at GECC related to market recoveries and the successful completion of rights offerings, as well as incremental management fees earned from Monomoy REIT, which was acquired in May 2022. As a reminder, Investment Management earns an asset management fee equal to 1% of the REIT's NAV, in addition to property management fees equivalent to 4% of gross rents collected. For the quarter, Investment Management reported a net loss of $1.8 million in comparison to net income of $1.3 million in the prior…

[Operator Instructions] And your first question comes from the line of Brian Alexitch from Greenwich Investment Management. Your line is open.

A question on the investment management vertical, in particular, right? A lot of the AUM growth has been from either acquisitions, right, or the rights offering, which was primarily or maybe not primarily, but there was a lot of money that came from GEG. And I think as you just described, a lot of the AUM growth in the REIT also came from GEG. So my question is, what's the strategy for organic growth, right? It's great that GEG can pump money into these entities, but as I look at investment management revenues, it's not exactly good revenue to be seeing yourself on your own AUM.

So, I'm not sure that we agree with that. We looked at the financial returns from using our own capital and think that, that is attractive. Obviously, we want to be raising outside capital in addition to using our own capital and that remains the plan. At something like GECC, which is a BDC, there are a lot of rules, as you probably know regarding when and how it can raise capital. So -- but it's an important point of focus for us to grow AUM there and at the Monomoy properties REIT. Also keep in mind, we closed in mid-May. So it's true that a fair chunk of the AUM growth came from GEG, but there is other growth in the AUM there, and that's just in 1.5 months. So, we're very happy with the start that Monomoy is off to and expect to continue to raise outside capital there and work to do so at GECC as well. But we will use our own balance sheet when we think it's a good return, and it's helpful to generate a good return for GEG shareholders.

All right. So following up on that, right? As the manager of both these entities, why not just co-invest then instead of, again, pumping money into the entities and charging yourself the management fee plus the incentive fees?

I'm not sure I understand what you mean by co-invest as opposed to what we just did.

Well, okay. So you guys are the manager, right? You guys manage the pipeline. You guys decide what to invest in, right? You can do so from GEG. You can do so from the -- or sorry, from GECC, you can do so from the REIT or you can take money from GEG, put it into those entities and then do it that way. Or I would think you should just be able to take the money from GEG and invest alongside either of those vehicles and again, not charge yourself the fee. Is that not correct?

I think depending upon the particular, it's -- we could do it. I don't think that there's an advantage to it and necessarily. And we think that the returns from what we did are actually quite good.

[Operator Instructions] And there are no further questions at this time. I will turn the call back over to Peter Reed for some closing remarks.

Thank you again for joining us today, and we look forward to speaking with you in the future.

This concludes today's conference call. Thank you for your participation. You may now disconnect.