HFF, Inc. (HF) has reported a 19.55 percent fall in profit for the quarter ended Dec. 31, 2016. The company has earned $27.45 million, or $0.70 a share in the quarter, compared with $34.12 million, or $0.88 a share for the same period last year.
Revenue during the quarter dropped 7.90 percent to $155.70 million from $169.04 million in the previous year period.
Cost of revenue dropped 7.06 percent or $6.45 million during the quarter to $84.95 million. Gross margin for the quarter contracted 49 basis points over the previous year period to 45.44 percent.
Total expenses were $118.51 million for the quarter, down 2.92 percent or $3.56 million from year-ago period. Operating margin for the quarter contracted 390 basis points over the previous year period to 23.88 percent.
Operating income for the quarter was $37.19 million, compared with $46.97 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $47.75 million compared with $56.83 million in the prior year period. At the same time, adjusted EBITDA margin contracted 295 basis points in the quarter to 30.67 percent from 33.62 percent in the last year period.
"Despite the continued headwinds in the capital markets and their impact on the industry's and HFF's transaction activity during the year, we remain confident in the fundamentals supporting the commercial real estate industry and the potential for future transaction volume growth over the next several years. Therefore, we continued to heavily invest in our business throughout 2016 in order to properly position the Company to take advantage of the above referenced potential future growth opportunities," said Mark Gibson, chief executive officer of HFF.
Net receivables were at $307.15 million as on Dec. 31, 2016, down 7.56 percent or $25.11 million from year-ago.
Total assets declined 3.48 percent or $25.87 million to $716.66 million on Dec. 31, 2016. On the other hand, total liabilities were at $480.12 million as on Dec. 31, 2016, down 9.07 percent or $47.91 million from year-ago.
Return on assets moved down 77 basis points to 3.83 percent in the quarter. At the same time, return on equity moved down 430 basis points to 11.61 percent in the quarter.
Debt comes down
Total debt was at $291.69 million as on Dec. 31, 2016, down 8.74 percent or $27.94 million from year-ago. Shareholders equity stood at $236.54 million as on Dec. 31, 2016, up 10.27 percent or $22.04 million from year-ago. As a result, debt to equity ratio went down 26 basis points to 1.23 percent in the quarter.
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