Western Asset Mortgage Capital Corporation (WMC) swung to a net profit for the quarter ended Sep. 30, 2016. The company has made a net profit of $32.28 million, or $ 0.77 a share in the quarter, against a net loss of $1.85 million, or $0.05 a share in the last year period. The company has not recorded any revenues for the current quarter. However, it has reported a revenue of $28.84 million for the previous year period.
Cost of revenue dropped 5.69 percent or $0.16 million during the quarter to $2.60 million.
Total expenses were $4.70 million for the quarter, down 86.35 percent or $29.73 million from year-ago period.
Operating loss for the quarter was $4.70 million, compared with an operating loss of $5.60 million in the previous year period.
“I am pleased to report that we delivered another solid performance in the third quarter, generating an economic return on book value of 7.1% and higher sequential core earnings plus drop income of $14.8 million, or $0.35 per share. We remained focused on our long-term goal of generating strong total return for our shareholders through attractive dividends derived from sustainable core earnings and appreciation in the value of our portfolio. In our view, WMC's strategic advantage in pursuing this goal is its ability to draw on the deep investment experience and team at Western Asset Management Company, our Manager, as well as the breadth of its global investment, risk management, and operational infrastructure," said Jennifer Murphy, Chief Executive Officer of the Company. "Our third quarter dividend of $0.31 per share reflects our commitment to paying an attractive dividend based on the sustainable earnings power of the portfolio balanced with our focus on maintaining greater stability in our book value.”
Net receivables were at $37.41 million as on Sep. 30, 2016, down 95.27 percent or $753.21 million from year-ago. Accounts payable stood at $2.71 million as on Sep. 30, 2016.
Investments stood at $3,025.42 million as on Sep. 30, 2016, down 15.02 percent or $534.56 million from year-ago.
Total assets declined 26.76 percent or $1,238.52 million to $3,389.08 million on Sep. 30, 2016. On the other hand, total liabilities were at $2,907.66 million as on Sep. 30, 2016, down 28.59 percent or $1,164.23 million from year-ago.
Return on assets was at 0.95 percent in the quarter against a negative 0.04 percent in the last year period. Return on equity was at 6.71 percent in the quarter against a negative 0.33 percent in the last year period.
Debt comes down
Total debt was at $2,534.10 million as on Sep. 30, 2016, down 15.82 percent or $476.17 million from year-ago. Shareholders equity stood at $481.42 million as on Sep. 30, 2016, down 13.37 percent or $74.29 million from year-ago. As a result, debt to equity ratio went down 15 basis points to 5.26 percent in the quarter.
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