Clayton Sees Higher Revenue Despite Loss
Clayton Holdings here said that it earned a gross profit of $16.3 million in the first quarter on revenue of $55.2 million. Clayton said that first-quarter revenue was up 15.3% compared to the first quarter of 2005. The company's profit was up 2.7%. However, on a GAAP basis, Clayton reported a net loss of $1.1 million, or $0.09 per share, in the first quarter, as the company transitioned to being a publicly traded firm.
Frank Filipps, chairman and CEO, said the first quarter marked a milestone with the completion of the company's initial public offering in March. The revenue growth in the first quarter reflected the company's success in expanding the scope of its services through the various stages of the mortgage loan lifecycle, Mr. Filipps said. He said the results for the first quarter of 2006 as compared to 2005 reflect the impact of increased infrastructure costs and the different debt and capital structures in place during the periods.
In a conference call with investors and analysts, CFO Rick Herbst stressed that Clayton continues to diversify its revenue sources. "We were very pleased with our revenues in the first quarter in light of continued volatility in the overall origination and MBS markets," Mr. Herbst said.
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