Great Elm experiences growth, offset by declines
By Theresa Flaherty, Managing Editor
Updated 11:57 AM CST, Tue December 29, 2020
WALTHAM, Mass. – Great Elm DME gained momentum during its first fiscal quarter 2021, but it hasn’t yet rebounded to pre-COVID levels, company execs said on a recent earnings call.
The company reported net revenue of $14.6 million, an increase of 10.4% year-over-year and 5% sequentially.
While Great Elm saw “strong” growth in CPAP resupplies, that growth was offset by a decline of 24.7% year over year in new patient setups and only an increase of 2.8% sequentially, said CEO Peter Reed.
“During the quarter, physician referrals in new setups were periodically disrupted,” he said. “They have not yet rebounded to pre-COVID levels.”
Looking ahead, the company is focused on increasing its DME revenues, both through organic growth and through acquisitions, and advancing its margins, while also reducing corporate overhead, said Reed.
“(Great Elm’s) DME (business) has resumed its search for attractive add-on acquisitions,” he said. “It is looking for complementary product lines in our existing or tangential geographic markets.”
Also from the call:
- Great Elm reported a net loss for DME of $500,000 vs. $800,000 year over year, and an adjusted EBITDA of $2.8 million vs. $3 million year over year.
- The company is also focused on exploring ways to lower the DME division’s cost of capital and obtaining additional funds for potential future
- acquisitions.
Comments