Preferred Apartment Communities, Inc. (APTS) saw its loss widen to $3.85 million, or $0.66 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $0.38 million, or $0.30 a share. Revenue during the quarter surged 73.93 percent to $58.99 million from $33.92 million in the previous year period.
Cost of revenue surged 102.99 percent or $3.11 million during the quarter to $6.14 million. Gross margin for the quarter contracted 149 basis points over the previous year period to 89.60 percent.
Total expenses were $49.38 million for the quarter, up 77.18 percent or $21.51 million from year-ago period. Operating margin for the quarter contracted 153 basis points over the previous year period to 16.30 percent.
Operating income for the quarter was $9.61 million, compared with $6.05 million in the previous year period.
Preferred Apartment Communities, Inc. expects revenue to be in the range of $285 million to $315 million for financial year 2017. For financial year 2017, the company projects diluted earnings per share to be in the range of $1.40 to $1.48.
Revenue from real estate activities during the quarter surged 73.66 percent or $23.18 million to $54.66 million.
Income from operating leases during the quarter surged 86.90 percent or $18.97 million to $40.79 million.
Income from management fees during the quarter increased 14.86 percent or $1.02 million to $7.86 million. Revenue from other real estate activities during the quarter was $6.01 million, up 113.98 percent or $3.20 million from year-ago period.
"The company had a superb year, with all areas of our business performing extremely well. Our fantastic earnings are a tribute to the hard work of the best management team in the REIT business" said John A. Williams, Preferred Apartment Communities' chairman and chief executive officer.
Operating cash flow improves significantly
Preferred Apartment Communities, Inc. has generated cash of $61.66 million from operating activities during the year, up 75.07 percent or $26.44 million, when compared with the last year. The company has spent $1,126.58 million cash to meet investing activities during the year as against cash outgo of $533.51 million in the last year.
Cash flow from financing activities was $1,074.80 million for the year, up 115.99 percent or $577.19 million, when compared with the last year.
Cash and cash equivalents stood at $12.32 million as on Dec. 31, 2016, up 405.07 percent or $9.88 million from $2.44 million on Dec. 31, 2015.
Net receivables were at $15.50 million as on Dec. 31, 2016, down 16.17 percent or $2.99 million from year-ago.
Total assets jumped 86.86 percent or $1,125.30 million to $2,420.83 million on Dec. 31, 2016. On the other hand, total liabilities were at $1,535.57 million as on Dec. 31, 2016, up 99.41 percent or $765.50 million from year-ago.
Return on assets moved down 7 basis points to 0.40 percent in the quarter. Return on equity for the quarter stood at negative 0.43 percent as compared to a negative 0.07 percent for the previous year period.
Debt increases substantially
Total debt was at $1,444.33 million as on Dec. 31, 2016, up 107.75 percent or $749.09 million from year-ago. Shareholders equity stood at $885.26 million as on Dec. 31, 2016, up 68.48 percent or $359.81 million from year-ago. As a result, debt to equity ratio went up 31 basis points to 1.63 percent in the quarter.
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