Owens Realty Mortgage, Inc (ORM) has reported a 3,993.63 percent jump in profit for the quarter ended Sep. 30, 2016. The company has earned $15.73 million, or $1.54 a share in the quarter, compared with $0.38 million, or $0.04 a share for the same period last year. Revenue during the quarter went up marginally by 1.81 percent to $4.49 million from $4.41 million in the previous year period.
Cost of revenue for the quarter was almost stable at $2.12 million, when compared with the previous year period. Gross margin for the quarter expanded 81 basis points over the previous year period to 52.84 percent.
Total expenses were $5.59 million for the quarter, up 39.74 percent or $1.59 million from year-ago period. Operating margin for the quarter stood at negative 24.33 percent as compared to a positive 9.42 percent for the previous year period.
Operating loss for the quarter was $1.09 million, compared with an operating income of $0.42 million in the previous year period.
Revenue from real estate activities during the quarter declined 26.44 percent or $0.80 million to $2.24 million.
Income from operating leases during the quarter dropped 26.44 percent or $0.80 million to $2.24 million.
Other income during the quarter was $2.26 million, up 64.40 percent or $0.88 million from year-ago period.
"The completion of the sale of our Miami property is significant. Not only did the sale generate a gain of $19,292,000 ($15,576,000 to the Company), it generated cash of $41,192,000 ($33,258,000 to the Company), allowed us to extinguish $32,881,000 in debt and added $1.52 per common share in book equity." said Bryan Draper, the Company's chief executive officer. "Primarily as a result of the sale of this property, total real estate assets to total assets dropped from 54% as of June 30, 2016 to 44% as of September 30, 2016. Development at our Zalanta project located in South Lake Tahoe, California continues, and we plan to complete construction of the 30 residential condominiums and retail space in the first part of 2017. We recently returned a majority of the refundable reservation deposits to potential buyers, however, we have entered into contract on two of the units and expect sales activity to pick up as we near completion of the project. Although loan production in the quarter declined, we believe this was due to temporary liquidity tightening, and we are seeing much improved lending opportunities in the fourth quarter".
Receivables increase substantially
Net receivables were at $2.12 million as on Sep. 30, 2016, up 25.37 percent or $0.43 million from year-ago. Investments stood at $111.73 million as on Sep. 30, 2016, up 52.03 percent or $38.24 million from year-ago.
Total assets were almost stable over the past one year at $252.88 million on Sep. 30, 2016. On the other hand, total liabilities were at $34.74 million as on Sep. 30, 2016, down 38.05 percent or $21.34 million from year-ago.
Return on assets moved up 749 basis points to 7.66 percent in the quarter. At the same time, return on equity moved up 702 basis points to 7.21 percent in the quarter.
Debt comes down significantly
Total debt was at $28.47 million as on Sep. 30, 2016, down 43.22 percent or $21.68 million from year-ago. Shareholders equity stood at $218.14 million as on Sep. 30, 2016, up 11.47 percent or $22.45 million from year-ago. As a result, debt to equity ratio went down 13 basis points to 0.13 percent in the quarter.
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