The Howard Hughes Corporation (HHC) has reported a 96.06 percent plunge in profit for the quarter ended Mar. 31, 2017. The company has earned $5.66 million, or $0.13 a share in the quarter, compared with $143.76 million, or $2.69 a share for the same period last year. Revenue during the quarter dropped 3.30 percent to $231.76 million from $239.67 million in the previous year period.
Cost of revenue dropped 4.32 percent or $4.45 million during the quarter to $98.77 million. Gross margin for the quarter expanded 45 basis points over the previous year period to 57.38 percent.
Total expenses were $154.21 million for the quarter, up 230.24 percent or $107.51 million from year-ago period. Operating margin for the quarter contracted 4705 basis points over the previous year period to 33.46 percent.
Operating income for the quarter was $77.55 million, compared with $192.97 million in the previous year period.
"Our first quarter results were driven by further improvement in our operating assets segment as our portfolio matures and stabilizes. We also continued to make progress in our strategic developments segment where we completed and delivered both One Merriweather and our first self-storage product in The Woodlands,” said David R. Weinreb, chief executive officer. “Delivering these assets marks the ongoing transformation of our strategic developments into a predominantly revenue generating portfolio as we set out to create long-term shareholder value. Additionally, I am pleased that we completed our successful redemption and new issuance of $800 million in senior notes at a significantly lower interest rate. This is a great example of moving with alacrity when opportunities arise in the capital markets.”
Net receivables were at $170.37 million as on Mar. 31, 2017, down 19.44 percent or $41.11 million from year-ago.
Total assets grew 6.24 percent or $376.17 million to $6,408.14 million on Mar. 31, 2017. On the other hand, total liabilities were at $3,790.84 million as on Mar. 31, 2017, up 7.34 percent or $259.32 million from year-ago.
Return on assets moved down 321 basis points to 0.52 percent in the quarter. At the same time, return on equity moved down 553 basis points to 0.22 percent in the quarter.
Debt moves up
Total debt was at $2,750.25 million as on Mar. 31, 2017, up 8.12 percent or $206.62 million from year-ago. Shareholders equity stood at $2,617.31 million as on Mar. 31, 2017, up 4.67 percent or $116.84 million from year-ago. As a result, debt to equity ratio went up 3 basis points to 1.05 percent in the quarter.
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