Washington Prime Group Inc. (WPG) swung to a net profit for the quarter ended Dec. 31, 2016. The company has made a net profit of $28.92 million, or $ 0.14 a share in the quarter, against a net loss of $93.47 million, or $0.53 a share in the last year period.
Revenue during the quarter dropped 5.05 percent to $217.78 million from $229.37 million in the previous year period.
Cost of revenue dropped 9.17 percent or $6.81 million during the quarter to $67.39 million. Gross margin for the quarter expanded 140 basis points over the previous year period to 69.06 percent.
Total expenses were $152.43 million for the quarter, down 50.26 percent or $154.04 million from year-ago period. Operating margin for the quarter period stood at positive 30.01 percent as compared to a negative 33.61 percent for the previous year period.
Operating income for the quarter was $65.36 million, compared with an operating loss of $77.10 million in the previous year period.
For fiscal year 2017, Washington Prime Group Inc. projects operating income to be in the range of $208 million to $213.30 million. It forecasts diluted earnings per share to be in the range of $1.08 to $1.15 for the same period.
For the first-quarter, Washington Prime Group Inc. forecasts diluted earnings per share to be in the range of $0.05 to $0.07.
Revenue from real estate activities during the quarter declined 4.79 percent or $10.56 million to $209.84 million.
Income from operating leases during the quarter dropped 5.52 percent or $8.80 million to $150.70 million. Revenue from tenant reimbursements was $59.14 million for the quarter, down 2.89 percent or $1.76 million from year-ago period.
Other income during the quarter was $7.94 million, down 11.44 percent or $1.03 million from year-ago period.
Lou Conforti, chief executive officer and Director stated. "Since assuming the role of chief executive officer, my primary objective has been to foundationally strengthen WPG via straightforward financial and operational measures. We have accomplished the former as illustrated by dramatically improved financial metrics which now rank among the best within our sector. In addition, our operational results further prove we are 'grinding it out' as our Enclosed assets exhibited stability and Open Air assets actually led the peer group from a Comparable NOI standpoint."
Receivables move up
Net receivables were at $99.97 million as on Dec. 31, 2016, up 9.13 percent or $8.36 million from year-ago.
Total assets declined 6.79 percent or $352.14 million to $5,107.47 million on Dec. 31, 2016. On the other hand, total liabilities were at $3,834 million as on Dec. 31, 2016, down 5.71 percent or $212.11 million from year-ago.
Return on assets was at 1.29 percent in the quarter against a negative 1.41 percent in the last year period. Return on equity was at 2.01 percent in the quarter against a negative 6.89 percent in the last year period.
Debt comes down marginally
Total debt was at $3,506.40 million as on Dec. 31, 2016, down 3.90 percent or $142.20 million from year-ago. Shareholders equity stood at $1,262.81 million as on Dec. 31, 2016, down 10.27 percent or $144.56 million from year-ago. As a result, debt to equity ratio went up 18 basis points to 2.78 percent in the quarter.
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