RMR (RMR) has reported 12.58 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $6.88 million, or $0.43 a share in the quarter, compared with $6.11 million, or $0.38 a share for the same period last year.     

Revenue during the quarter grew 12.34 percent to $54.30 million from $48.33 million in the previous year period. Total expenses were 59.35 percent of quarterly revenues, up from 59.07 percent for the same period last year. That has resulted in a contraction of 28 basis points in operating margin to 40.65 percent.

Operating income for the quarter was $22.07 million, compared with $19.78 million in the previous year period.

However, the adjusted EBITDA for the quarter stood at $26.58 million compared with $23.40 million in the prior year period. At the same time, adjusted EBITDA margin improved 53 basis points in the quarter to 48.94 percent from 48.42 percent in the last year period.  

Adam Portnoy, president and chief executive officer, made the following statement regarding the second quarter fiscal 2017 results: "The RMR Group's second quarter results were highlighted by double digit increases in revenues, net income attributable to The RMR Group Inc. and Adjusted EBITDA compared to last year’s fiscal second quarter. Cash and cash equivalents have grown to $133 million and we continue to have no indebtedness. Our focus continues to be on managing our existing client companies and being well positioned to take advantage of possible strategic growth and revenue diversification opportunities in the future."

Days sales outstanding went down to 86 days for the quarter compared with 99 days for the same period last year.