TRI Pointe Group, Inc. (TPH) has reported a 31.99 percent plunge in profit for the quarter ended Dec. 31, 2016. The company has earned $57.86 million, or $0.36 a share in the quarter, compared with $85.07 million, or $0.52 a share for the same period last year.
Revenue during the quarter dropped 12.10 percent to $773.75 million from $880.24 million in the previous year period.
Cost of revenue dropped 8.88 percent or $60.17 million during the quarter to $617.23 million. Gross margin for the quarter contracted 282 basis points over the previous year period to 20.23 percent.
Total expenses were $688.86 million for the quarter, down 8.43 percent or $63.40 million from year-ago period. Operating margin for the quarter contracted 357 basis points over the previous year period to 10.97 percent.
Operating income for the quarter was $84.89 million, compared with $127.98 million in the previous year period. However, the adjusted EBITDA for the quarter stood at $107.42 million compared with $155.20 million in the prior year period. At the same time, adjusted EBITDA margin contracted 375 basis points in the quarter to 13.88 percent from 17.63 percent in the last year period.
"I am extremely pleased with how we ended 2016," said TRI Pointe Group chief executive officer Doug Bauer. "Fourth quarter net orders grew 21% as compared to the prior year period, thanks to a 10% increase in the monthly absorption rate and a 9% rise in average community count. Order trends remained strong in our core California markets during the quarter, while many of our markets outside of California experienced an increase in absorption rate. We believe that this is a testament to the relative strength of our markets and the quality of our communities and new home offerings. With a 19% increase in active selling communities at the start of 2017 as compared to the beginning of 2016, TRI Pointe Group is in a great position to achieve its goals for 2017 and beyond."
Real estate inventory rose 15.53 percent or $391.35 million to $2,910.63 million on Dec. 31, 2016. Net receivables were at $82.50 million as on Dec. 31, 2016, up 88.74 percent or $38.79 million from year-ago. Accounts payable increased 8.35 percent or $5.41 million to $70.25 million on Dec. 31, 2016.
Total assets grew 13.59 percent or $426.57 million to $3,564.64 million on Dec. 31, 2016. On the other hand, total liabilities were at $1,716.13 million as on Dec. 31, 2016, up 18.22 percent or $264.52 million from year-ago.
Return on assets moved down 109 basis points to 1.63 percent in the quarter. At the same time, return on equity moved down 191 basis points to 3.13 percent in the quarter.
Debt moves up
Total debt was at $1,382.03 million as on Dec. 31, 2016, up 18.07 percent or $211.53 million from year-ago. Shareholders equity stood at $1,848.51 million as on Dec. 31, 2016, up 9.61 percent or $162.05 million from year-ago. As a result, debt to equity ratio went up 5 basis points to 0.75 percent in the quarter.
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