Western Asset Mortgage Capital Corp (WMC) saw its loss widen to $38.30 million, or $0.92 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $20.08 million, or $0.49 a share.
Cost of revenue dropped 8.68 percent or $0.24 million during the quarter to $2.50 million.
Total expenses were $5.40 million for the quarter, down 10.87 percent or $0.66 million from year-ago period.
Operating loss for the quarter was $5.40 million, compared with an operating loss of $6.06 million in the previous year period.
"2016 was another challenging year for the fixed income markets, generating high interest rate volatility and fluctuating asset values against a backdrop of ever changing investor sentiment, and the fourth quarter proved to be no exception. However, I am pleased to report that we generated solid core earnings both in the fourth quarter and for the full year, more than covering our dividend in both instances," said Jennifer Murphy, chief executive officer of the Company. "We remained focused on our long-term goal of generating a strong total return for our shareholders through attractive dividends derived from sustainable core earnings and appreciation in the value of our portfolio. Our fourth quarter dividend of $0.31 per share and $1.38 for the year reflects our commitment to those goals. While we experienced a decline in our book value in the fourth quarter we continue to reposition our portfolio for greater stability."
Receivables move up
Net receivables were at $296 million as on Dec. 31, 2016, up 8.52 percent or $23.24 million from year-ago. Accounts payable stood at $2.58 million as on Dec. 31, 2016.
Investments stood at $2,789.22 million as on Dec. 31, 2016, down 9.78 percent or $302.36 million from year-ago.
Total assets declined 7.57 percent or $258.55 million to $3,156.02 million on Dec. 31, 2016. On the other hand, total liabilities were at $2,725.53 million as on Dec. 31, 2016, down 6.11 percent or $177.38 million from year-ago.
Return on assets was negative at 1.21 percent in the quarter against a positive 0.79 percent in the last year period. Return on equity for the quarter stood at negative 8.90 percent as compared to a negative 3.93 percent for the previous year period.
Debt comes down
Total debt was at $2,166.30 million as on Dec. 31, 2016, down 16.57 percent or $430.36 million from year-ago. Shareholders equity stood at $430.48 million as on Dec. 31, 2016, down 15.86 percent or $81.17 million from year-ago. As a result, debt to equity ratio went down 4 basis points to 5.03 percent in the quarter.
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