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Great Elm set to resume ‘more active acquisitions’

Great Elm set to resume ‘more active acquisitions’

WALTHAM, Mass. – Great Elm Group reported $14.5 million in total revenue for DME for the three months ended Dec. 31, a 1% increase compared to the same period last year. 

It reported a net loss of $2.9 million vs. $700,000. 

“DME was able to grow revenue during the quarter despite the continued negative impact of COVID-19 on its business,” said Peter Reed, CEO. “Profitability was depressed during the quarter primarily as a result of legacy revenue reserve issues as well as increased operating costs due to the pandemic. Our team remains focused on improving profitability and resuming a more active acquisition program.” 

Great Elm says the increase in revenue was driven primarily by organic growth in CPAP resupply sales, offset by lower sleep studies revenue and lower rental revenues for new equipment set ups. 

The company also reported adjusted EBITDA of $1.9 million for the second quarter of fiscal 2021 year, compared to $3.5 million in the prior-year period. Adjusted EBITDA was lower due primarily to higher reserves of $1 million, $300,000 from the reallocation of corporate personnel to DME and a $200,000 increase in operating expenses related to COVID-19. 

Additionally, the company says operating expenses were higher compared to the year-ago period due to additional expenses incurred to enhance the platform and scalability of the business, and also a reduction in sleep study services, which tend to generate higher margin as compared to equipment sales. 


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