Walker & Dunlop, Inc. (WD) has reported an 80.25 percent jump in profit for the quarter ended Dec. 31, 2016. The company has earned $36.79 million, or $1.16 a share in the quarter, compared with $20.41 million, or $0.67 a share for the same period last year.
Revenue during the quarter surged 46.99 percent to $178.39 million from $121.36 million in the previous year period. Total expenses were 65.70 percent of quarterly revenues, down from 72.09 percent for the same period last year. This has led to an improvement of 639 basis points in operating margin to 34.30 percent.
Operating income for the quarter was $61.18 million, compared with $33.87 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $34.62 million compared with $28.99 million in the prior year period. At the same time, adjusted EBITDA margin contracted 448 basis points in the quarter to 19.41 percent from 23.88 percent in the last year period.
"Walker & Dunlop's growth and financial performance continue to outpace the market by broad margins," commented Willy Walker, chairman and chief executive officer. "This was the second consecutive year adding $1.00 or more in EPS, reflective of the highly profitable business model that underpins Walker & Dunlop's growth. Over the past three years, our origination volumes have increased at a compound annual growth rate of 26%, twice the rate of the commercial real estate financing market, resulting in annual growth in revenues and earnings of 22% and 40%, respectively. Our team of financing professionals, national platform, well-known brand and loyal client base are building off one another, creating new growth opportunities and generating fantastic financial performance."
Debt comes down
Walker & Dunlop, Inc has recorded a decline in total debt over the last one year. It stood at $2,154.35 million as on Dec. 31, 2016, down 23.44 percent or $659.59 million from $2,813.93 million on Dec. 31, 2015. Walker & Dunlop has recorded a decline in long-term debt over the last one year. It stood at $2,154.35 million as on Dec. 31, 2016, down 23.44 percent or $659.59 million from $2,813.93 million on Dec. 31, 2015. Total debt was 70.58 percent of total assets as on Dec. 31, 2016, compared with 80.06 percent on Dec. 31, 2015. Debt to equity ratio was at 3.50 as on Dec. 31, 2016, down from 5.72 as on Dec. 31, 2015.
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