Silver Bay Realty Trust (SBY) saw its loss widen to $1.57 million, or $0.05 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $1.34 million, or $0.04 a share. Revenue during the quarter grew 3.08 percent to $31.56 million from $30.62 million in the previous year period.
Cost of revenue went down marginally by 0.80 percent or $0.11 million during the quarter to $14.01 million. Gross margin for the quarter expanded 174 basis points over the previous year period to 55.60 percent.
Total expenses were $34.45 million for the quarter, up 1.75 percent or $0.59 million from year-ago period. Operating margin for the quarter stood at negative 9.16 percent as compared to a negative 10.60 percent for the previous year period.
Operating loss for the quarter was $2.89 million, compared with an operating loss of $3.24 million in the previous year period.
Other income during the quarter was $0.81 million, up 16.19 percent or $0.11 million from year-ago period.
"In the third quarter we had solid top-line growth and continued momentum across key portfolio metrics including an occupancy rate of 97%. This combined with some operational improvements contributed to an 8% year-over-year increase in Same-Home net operating income," said Thomas W. Brock, Silver Bays chief executive officer. "Our strategy to optimize our portfolio is proceeding as planned. We have virtually exited Southern California at full market value prices for those properties, and are continuing to see opportunities to re-allocate capital in assets that have favorable yields in our core markets. At this point in time, we believe this is the best use of capital to generate strong cash flow and returns to our shareholders."
Operating cash flow improves
Silver Bay Realty Trust has generated cash of $24.24 million from operating activities during the nine month period, up 5.05 percent or $1.16 million, when compared with the last year period. The company has spent $24.18 million cash to meet investing activities during the nine month period as against cash outgo of $271.40 million in the last year period.
Cash flow from financing activities was $8.24 million for the nine month period, down 96.56 percent or $231.26 million, when compared with the last year period.
Cash and cash equivalents stood at $37.32 million as on Sep. 30, 2016, down 9.03 percent or $3.71 million from $41.03 million on Sep. 30, 2015.
Investments stood at $1,090.56 million as on Sep. 30, 2016.
Total assets went down marginally by 1.74 percent or $21.78 million to $1,232.92 million on Sep. 30, 2016. On the other hand, total liabilities were at $700.13 million as on Sep. 30, 2016, up 1.97 percent or $13.50 million from year-ago.
Return on assets was negative at 0.14 percent in the quarter against a positive 0.36 percent in the last year period. Return on equity for the quarter stood at negative 0.30 percent as compared to a negative 0.24 percent for the previous year period.
Debt comes down significantly
Total debt was at $364.13 million as on Sep. 30, 2016, down 43.83 percent or $284.15 million from year-ago. Shareholders equity stood at $531.79 million as on Sep. 30, 2016, down 6.22 percent or $35.27 million from year-ago. As a result, debt to equity ratio went down 46 basis points to 0.68 percent in the quarter.
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