Jernigan Capital, Inc. :JCAP-US: Earnings Analysis: Q3, 2016 By the Numbers : November 4, 2016

Jernigan Capital, Inc. reports financial results for the quarter ended September 30, 2016.

Highlights

  • Summary numbers: Revenues of USD 1.70 million, Net Earnings of USD 4.99 million.
  • Gross margins widened from -18.34% to 76.33% compared to the same period last year, operating (EBITDA) margins now 267.96% from -212.63%.
  • Earnings growth from operating margin improvements as well as one-time items.

The table below shows the preliminary results and recent trends for key metrics such as revenues and net income (See complete table at the end of this report):

2015-09-30 2015-12-31 2016-03-31 2016-06-30 2016-09-30
Relevant Numbers (Quarterly)
Revenues (mil) 0.58 1.01 1.14 1.53 1.7
Revenue Growth (%YOY) N/A N/A 0 957.24 193.77
Earnings (mil) -1.46 -0.89 1.09 5.27 4.99
Earnings Growth (%YOY) N/A N/A 842.94 546.95 441.12
Net Margin (%) -253.29 -88.1 95.54 344.03 294.11
EPS -0.24 -0.15 0.18 0.89 0.84
Return on Equity (%) -5.53 -3.44 4.31 20.82 19.35
Return on Assets (%) -5.36 -3.33 4.12 19.47 16.92

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Market Share Versus Profits

Revenues History
Earnings History

Compared to the same period last year, JCAP-US‘s change in revenue was close to the amount of its change in earnings. It remains to be seen how the rest of its peer group’s results will turn out and if JCAP-US‘s performance is a sign of any major shift in the composition of market share in this sector. Also, for comparison purposes, revenues changed by 10.76% and earnings by -5.31% compared to the previous period.

Earnings Growth Analysis

The company’s earnings growth was influenced by year-on-year improvement in gross margins from -18.34% to 76.33% as well as better cost controls. As a result, operating margins (EBITDA margins) rose from -212.63% to 267.96% compared to the same period last year. For comparison, gross margins were 68.43% and EBITDA margins were 329.09% in the last reporting period.

Margins

The company’s earnings growth has also been influenced by the following factors: (1) Improvements in operating (EBIT) margins from -213.49% to 267.96% and (2) one-time items. The company’s pretax margins are now 294.11% compared to -243.43% for the same period last year.

EBIT Margin History
PreTax Margin History

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Company Profile

Jernigan Capital, Inc. provides real estate finance services. Its services include: Development Loans, Stabilized Asset Loans, Bridge Loans. The Development Loans intends to finance ground-up construction of self-storage facilities. The Stabilized Asset Loans finances, refinances, recapitalizes stabilized self-storage facilities. The Bridge or Value-Add Loans are loans for borrowers who are seeking short-term capital. The company was founded by Dean Jernigan in October 2014 and is headquartered in Miami, FL.

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