The New Home Company Inc (NWHM) has reported a 12.71 percent rise in profit for the quarter ended Dec. 31, 2016. The company has earned $13.78 million, or $0.66 a share in the quarter, compared with $12.23 million, or $0.69 a share for the same period last year.
Revenue from real estate activities during the quarter surged 65.68 percent or $127.82 million to $322.45 million.
Cost of revenue surged 70.47 percent or $117.09 million during the quarter to $283.24 million. Gross margin for the quarter contracted 247 basis points over the previous year period to 12.16 percent.
Operating income for the quarter was $18.64 million, compared with $15.07 million in the previous year period.
Revenue from sale of real estate was $261.67 million for the quarter, up 78.13 percent or $114.77 million.
Income from management fees during the quarter increased 27.34 percent or $13.05 million to $60.78 million.
"I am extremely pleased with how we ended 2016," said The New Home Company’s chief executive officer Larry Webb. "Fourth quarter wholly owned home sales revenue grew by 78% as compared to last year and we generated record fourth quarter pretax income. For the full year, homes sales revenue increased 81% thanks to a 69% increase in deliveries. This growth is a testament to The New Home Company’s success in building and selling distinctive homes in highly desirable locations in the Western United States. At the same time, we generated $104 million of cash flows from operating activities, which was driven by strong inventory turns from our heavy land option portfolio."
Operating cash flow remains negative
The New Home Company Inc has spent $42.42 million cash to meet operating activities during the year as against cash outgo of $32.30 million in the last year. Cash flow from investing activities was $1.79 million for the year, down 89.21 percent or $14.79 million, when compared with the last year.
Cash flow from financing activities was $25.25 million for the year, up 43.96 percent or $7.71 million, when compared with the last year.
Cash and cash equivalents stood at $30.50 million as on Dec. 31, 2016, down 33.52 percent or $15.38 million from $45.87 million on Dec. 31, 2015.
Real estate inventory surged 43.01 percent or $86.29 million to $286.93 million on Dec. 31, 2016. Net receivables were at $28.97 million as on Dec. 31, 2016, up 16.17 percent or $4.03 million from year-ago. Accounts payable increased 25.49 percent or $6.72 million to $33.09 million on Dec. 31, 2016.
Total assets grew 19.32 percent or $67.87 million to $419.14 million on Dec. 31, 2016. On the other hand, total liabilities were at $174.51 million as on Dec. 31, 2016, up 34.68 percent or $44.94 million from year-ago.
Return on assets moved down 19 basis points to 3.29 percent in the quarter. At the same time, return on equity moved up 12 basis points to 5.63 percent in the quarter.
Debt increases substantially
Total debt was at $118 million as on Dec. 31, 2016, up 42.03 percent or $34.92 million from year-ago. Shareholders equity stood at $244.62 million as on Dec. 31, 2016, up 10.34 percent or $22.93 million from year-ago. As a result, debt to equity ratio went up 11 basis points to 0.48 percent in the quarter.
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