Pennymac Mortgage Investment Trust (PMT) has reported 8.77 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $35.41 million, or $0.49 a share in the quarter, compared with $38.81 million, or $0.49 a share for the same period last year. Revenue during the quarter grew 13.83 percent to $103.33 million from $90.77 million in the previous year period.
Cost of revenue dropped 12.49 percent or $0.72 million during the quarter to $5.02 million. Gross margin for the quarter expanded 146 basis points over the previous year period to 95.14 percent.
Total expenses were $58.31 million for the quarter, up 27.69 percent or $12.64 million from year-ago period. Operating margin for the quarter contracted 613 basis points over the previous year period to 43.57 percent.
Operating income for the quarter was $45.01 million, compared with $45.11 million in the previous year period.
"PMT's earnings have improved significantly as we continue to transition our capital to our newer investment strategies and away from distressed mortgage loans," said chairman and chief executive officer Stanford L. Kurland. "During the third quarter, our results were driven by the strength of our correspondent business and the investments that it creates, including our unique GSE credit risk transfer investments. We continued to make progress in liquidating and resolving our distressed mortgage investments, including a pending sale of performing loans from the distressed portfolio. We are particularly pleased with the performance of our newer strategies and correspondent production business, and look for continuing improvement from the performance of our distressed investments going forward."
Net receivables were at $5.78 million as on Sep. 30, 2016, down 36.18 percent or $3.27 million from year-ago.
Investments stood at $2,060.95 million as on Sep. 30, 2016, down 23.40 percent or $629.55 million from year-ago.
Total assets grew 18.36 percent or $1,026.67 million to $6,618.90 million on Sep. 30, 2016. On the other hand, total liabilities were at $5,263.98 million as on Sep. 30, 2016, up 29.09 percent or $1,186.18 million from year-ago.
Return on assets moved down 83 basis points to 0.53 percent in the quarter. At the same time, return on equity moved up 5 basis points to 2.61 percent in the quarter.
Debt increases substantially
Total debt was at $5,017.45 million as on Sep. 30, 2016, up 36.14 percent or $1,331.99 million from year-ago. Shareholders equity stood at $1,354.92 million as on Sep. 30, 2016, down 10.53 percent or $159.51 million from year-ago. As a result, debt to equity ratio went up 127 basis points to 3.70 percent in the quarter.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]