Capstead Mortgage Corporation (CMO) has reported a 21.96 percent fall in profit for the quarter ended Sep. 30, 2016. The company has earned $16.44 million, or $0.13 a share in the quarter, compared with $21.07 million, or $0.18 a share for the same period last year.
Revenue during the quarter went up marginally by 0.90 percent to $50.02 million from $49.57 million in the previous year period.
Revenue from other real estate activities during the quarter was $49.84 million, up 0.73 percent or $0.36 million from year-ago period.
Other income during the quarter was $0.17 million, up 97.73 percent or $0.09 million from year-ago period.
Commenting on current operating and market conditions, Phillip A. Reinsch, president and chief executive officer, said, "Core earnings for the third quarter were negatively impacted by higher mortgage prepayment levels driven by higher refinancing activity as well as seasonal factors. This contributed to $3.0 million in higher investment premium amortization compared to the second quarter. We believe the current refinancing wave peaked in September, which together with seasonal factors, should provide for lower investment premium amortization in the coming quarters, benefiting portfolio yields and earnings."
Net receivables were at $164.10 million as on Sep. 30, 2016, down 7.31 percent or $12.94 million from year-ago. Accounts payable stood at $36.16 million as on Sep. 30, 2016.
Investments stood at $13,658.02 million as on Sep. 30, 2016.
Total assets went down marginally by 2.77 percent or $396.30 million to $13,905.81 million on Sep. 30, 2016. On the other hand, total liabilities were at $12,635.70 million as on Sep. 30, 2016, down 2.45 percent or $316.98 million from year-ago.
Return on assets moved down 5 basis points to 0.32 percent in the quarter. At the same time, return on equity moved down 29 basis points to 0.99 percent in the quarter.
Debt comes down marginally
Total debt was at $12,529.90 million as on Sep. 30, 2016, down 2.51 percent or $322.62 million from year-ago. Shareholders equity stood at $1,270.11 million as on Sep. 30, 2016, down 5.88 percent or $79.32 million from year-ago. As a result, debt to equity ratio went up 34 basis points to 9.87 percent in the quarter.
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