Owens Realty Mortgage (ORM) has reported 95.95 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $0.19 million, or $0.02 a share in the quarter, compared with $4.73 million, or $0.46 a share for the same period last year. Revenue during the quarter dropped 16.29 percent to $3.54 million from $4.23 million in the previous year period.
Cost of revenue plunged 30.67 percent or $0.57 million during the quarter to $1.29 million. Gross margin for the quarter expanded 756 basis points over the previous year period to 63.55 percent.
Total expenses were $3.36 million for the quarter, down 22.26 percent or $0.96 million from year-ago period. Operating margin for the quarter period stood at positive 5.14 percent as compared to a negative 2.15 percent for the previous year period.
Operating income for the quarter was $0.18 million, compared with an operating loss of $0.09 million in the previous year period.
Revenue from real estate activities during the quarter plunged 54.62 percent or $1.19 million to $0.99 million.
Income from operating leases during the quarter plunged 54.62 percent or $1.19 million to $0.99 million.
Other income during the quarter was $2.55 million, up 24.67 percent or $0.50 million from year-ago period.
"The first quarters results were significantly affected by the timing of our lending activity. Although we cannot predict loan originations in a given period, the first quarter of the year has historically been slow. In addition, as of quarter end, we had many loans in the pipeline delayed for a variety of reasons, primarily related to borrowers. Also, our net income from real estate was lower than expected due primarily to a one-time charge and the effects of weather on our golf course asset. However, with the recent sale of the land held within Tahoe Stateline Venture, LLC, we have positioned the Company to capitalize on lending opportunities in the near term which would be further enhanced by sales of other real estate" said Bryan Draper, the Company chief executive officer.
Receivables remain almost stableNet receivables stood at $2.17 million as on Mar. 31, 2017. Investments stood at $134.07 million as on Mar. 31, 2017.
Total assets declined 4.65 percent or $13.19 million to $270.80 million on Mar. 31, 2017. On the other hand, total liabilities were at $55.90 million as on Mar. 31, 2017.
Return on assets moved down 160 basis points to 0.07 percent in the quarter. At the same time, return on equity moved down 224 basis points to 0.09 percent in the quarter.
Total debt was at $51.99 million as on Mar. 31, 2017. Shareholders equity stood at $214.90 million as on Mar. 31, 2017, up 5.64 percent or $11.47 million from year-ago. Meanwhile, debt to equity ratio was at 0.24 percent in the quarter.
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