New Home Company (NWHM) has reported 24.82 percent rise in profit for the quarter ended Sep. 30, 2016. The company has earned $5.55 million, or $0.27 a share in the quarter, compared with $4.44 million, or $0.27 a share for the same period last year.

Revenue during the quarter surged 104.54 percent to $177.90 million from $86.98 million in the previous year period.

Cost of revenue surged 106.72 percent or $80.86 million during the quarter to $156.63 million. Gross margin for the quarter contracted 93 basis points over the previous year period to 11.96 percent.

Total expenses were $169.15 million for the quarter, up 100.62 percent or $84.84 million from year-ago period. Operating margin for the quarter expanded 186 basis points over the previous year period to 4.92 percent.

Operating income for the quarter was $8.75 million, compared with $2.66 million in the previous year period.

Revenue from real estate activities during the quarter surged 104.54 percent or $90.93 million to $177.90 million. Revenue from sale of real estate was $125.14 million for the quarter, up 116.22 percent or $67.26 million.

Income from management fees during the quarter jumped 81.32 percent or $23.66 million to $52.76 million.

"The New Home Company delivered solid top and bottom line growth in the third quarter of 2016, while laying the foundation for future success by focusing more of our resources on wholly owned operations," said New Home Company chief executive officer Larry Webb. "We have seen encouraging trends in some of our newer communities, most notably along the Newport Coast, where order activity and pricing at our Crystal Cove communities have exceeded our expectations." Mr. Webb continued, "As we had previously stated, our earnings for 2016 would be heavily weighted to the back half of the year. Given our performance this quarter and the size of our backlog at the end of the period, we believe that this will indeed be the case. The New Home Company has earned a reputation with both consumers and land sellers for delivering a superior home buying experience, and I'm confident that this reputation will carry us to greater success in the future."

Cash flow from investing activities was $7.90 million for the nine month period, down 54.67 percent or $9.53 million, when compared with the last year period.

Cash flow from financing activities was $137.17 million for the nine month period, up 141.28 percent or $80.32 million, when compared with the last year period.

Cash and cash equivalents stood at $44.25 million as on Sep. 30, 2016, up 25.11 percent or $8.88 million from $35.37 million on Sep. 30, 2015.

Real estate inventory stood at $383.39 million as on Sep. 30, 2016. Net receivables were at $22.22 million as on Sep. 30, 2016, up 87.16 percent or $10.35 million from year-ago. Accounts payable surged 60.23 percent or $14.60 million to $38.85 million on Sep. 30, 2016.

Total assets jumped 41.90 percent or $152.61 million to $516.82 million on Sep. 30, 2016. On the other hand, total liabilities were at $286.84 million as on Sep. 30, 2016, up 42.24 percent or $85.18 million from year-ago.

Return on assets moved down 11 basis points to 1.08 percent in the quarter. At the same time, return on equity moved down 32 basis points to 2.41 percent in the quarter.