Marcus & Millichap, Inc (MMI) has reported 19 percent fall in profit for the quarter ended Mar. 31, 2017. The company has earned $12 million, or $0.31 a share in the quarter, compared with $14.82 million, or $0.38 a share for the same period last year. Revenue during the quarter dropped 6.73 percent to $153.21 million from $164.27 million in the previous year period.
Cost of revenue dropped 6.77 percent or $6.51 million during the quarter to $89.65 million. Gross margin for the quarter expanded 2 basis points over the previous year period to 41.49 percent.
Total expenses were $134.16 million for the quarter, down 3.77 percent or $5.25 million from year-ago period. Operating margin for the quarter contracted 270 basis points over the previous year period to 12.43 percent.
Operating income for the quarter was $19.05 million, compared with $24.86 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $22.42 million compared with $27.17 million in the prior year period. At the same time, adjusted EBITDA margin contracted 190 basis points in the quarter to 14.63 percent from 16.54 percent in the last year period.
Hessam Nadji, president and Chief executive officer stated, “MMI once again increased market share as reflected in our team’s ability to execute as many transactions in the first quarter as we did a year ago, despite an estimated 10% -15% decline in market sales.” Mr. Nadji added, “As we had anticipated, the ripple effect of the post-presidential election interest rate jump and uncertainty regarding tax policy continued to hinder sales velocity, particularly in the Private Client Market segment. Our revenue trend line was especially challenged by the drop in larger transactions when compared to our exceptionally high closings in this market segment a year ago, which included a portfolio sale at nearly $500 million.”
Total assets stood at $363.49million as on Mar. 31, 2017. On the other hand, total liabilities were at $92.05 million as on Mar. 31, 2017.
Return on assets was at 3.41 percent in the quarter. At the same time, return on equity was at 4.42 percent in the quarter.
Shareholders equity was at $271.44 million as on Mar. 31, 2017.
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