For the three months ended March 2017, Eppley Limited (EPLY) reported interest income of $62.54 million an increase of 42% when compared to the $43.97 million recorded the previous year.
Interest expenses amounted to $36.86 million, a 29% increase when compared to $28.58 million for the corresponding period in 2016.
Consequently, net interest income increased 67% to $25.68 million from $15.40 million for the corresponding period of 2016.
Other operating income declined by $1.56 million to a total of $10.09 million relative to $11.64 million in 2016. Administrative expenses rose 23% to close at $20.29 million from $16.48 million the previous year. Notably, Eppley booked $467,000 for Share of Net profit from Joint Venture compared to nil for the prior financial year.
As such, pre-tax profit closed at $15.94 million for the financial year, 51% more than the $10.56 million booked in 2016. No taxes were recorded for the period, hence net profit attributable to shareholders amounted to $15.94 million (2016: $10.56 million).
Earnings per share for the quarter amounted to $0.08 (2016: $0.05). The trailing twelve months EPS is $0.58. The total amount of shares outstanding used for this calculation was 192,468,300 units.
EPLY noted, “at the end of the quarter we owned a $1.8 billion investment portfolio consisting mainly of loans, leases and receivables. The average income yield of our portfolio was 15%. Our capital at risk was less than 1% of capital.”
Balance Sheet Highlights:
As at March 31, 2017, total assets amounted to $2.05 billion, 45% more than its value a year ago. The increase in assets was driven primarily by increases in ‘Loans Receivables’ by $482.76 million to close at $927.05 million (2016: $444.29 million). Investment in Joint Ventures of $122.92 million (2016: Nil) also aided the movement in total assets. According to Eppley, “The Company made an investment in a joint venture arrangement during the quarter ended September 30, 2016. An additional investment in another joint venture arrangement was made during the quarter ended March 31, 2017.”
Shareholder’s Equity as at March 31, 2017 totalled $676.53 million (2016: $313.74 million) resulting in a book value per share of approximately $3.52 relative to $1.63 in 2016.
Disclaimer:
Analyst Certification -This research report is for information purposes only and should not be construed as a recommendation. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation (s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
