HFF, Inc. (HF) has reported a 3.97 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $20.02 million, or $0.51 a share in the quarter, compared with $19.26 million, or $0.50 a share for the same period last year.
Revenue during the quarter grew 11.30 percent to $126.54 million from $113.68 million in the previous year period.
Cost of revenue rose 12.27 percent or $7.80 million during the quarter to $71.35 million. Gross margin for the quarter contracted 49 basis points over the previous year period to 43.61 percent.
Total expenses were $102.27 million for the quarter, up 13.87 percent or $12.45 million from year-ago period. Operating margin for the quarter contracted 182 basis points over the previous year period to 19.17 percent.
Operating income for the quarter was $24.26 million, compared with $23.87 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $33.10 million compared with $31.28 million in the prior year period. At the same time, adjusted EBITDA margin contracted 136 basis points in the quarter to 26.16 percent from 27.52 percent in the last year period.
"We are very pleased with our performance in the third quarter and first nine months of 2016. HFF's transaction volumes increased across all business lines during the same periods driving revenues higher, despite the continued headwinds in the capital markets and their impact on the industry’s transaction activity in the first nine months of 2016," said Mark Gibson, chief executive officer of HFF.
Net receivables were at $842.94 million as on Sep. 30, 2016, up 841.95 percent or $753.45 million from year-ago. Accounts payable surged 4,572.48 percent or $109.01 million to $111.39 million on Sep. 30, 2016.
Total assets jumped 165.75 percent or $752.52 million to $1,206.53 million on Sep. 30, 2016. On the other hand, total liabilities were at $1,000.91 million as on Sep. 30, 2016, up 262.53 percent or $724.82 million from year-ago.
Return on assets moved down 258 basis points to 1.66 percent in the quarter. At the same time, return on equity moved down 109 basis points to 9.74 percent in the quarter.
Debt increases substantially
Total debt was at $825.31 million as on Sep. 30, 2016, up 851.86 percent or $738.60 million from year-ago. Shareholders equity stood at $205.62 million as on Sep. 30, 2016, up 15.57 percent or $27.70 million from year-ago. As a result, debt to equity ratio went up 353 basis points to 4.01 percent in the quarter.
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