Ready Capital Corporation Reports Second Quarter 2024 Financial Results
Intellectia.AI Updated: 2024-08-08
Ready Capital Corporation Reports Second Quarter 2024 Financial Results
Ready Capital Corporation (NYSE: RC) has released its financial results for the quarter ending June 30, 2024. Below is a concise summary of the key financial metrics and segment performance.
Key Financial Metrics
| Metric | Q2 2024 | Q2 2023 | Q1 2024 | Year-over-Year | Quarter-over-Quarter | Consensus Estimates |
|---|---|---|---|---|---|---|
| Total Revenue | Not Provided | Not Provided | Not Provided | Not Provided | Not Provided | $70.29M |
| GAAP Loss per Share | $(0.21) | Not Provided | Not Provided | Not Provided | Not Provided | Not Provided |
| Distributable EPS | $0.07 | Not Provided | Not Provided | Not Provided | Not Provided | $0.24 |
| Distributable EPS Before Realized Losses | $0.19 | Not Provided | Not Provided | Not Provided | Not Provided | Not Provided |
Interpretation: Ready Capital reported a GAAP loss per common share from continuing operations of $(0.21) and distributable earnings per common share of $0.07. The GAAP loss indicates a necessity for the company to improve operations and financial health.
Revenue Performance by Segment
| Segment | Revenue (Q2 2024) | Previous Guidance |
|---|---|---|
| Lower-to-Middle-Market (LMM) Originations | $257 million | Not Provided |
| U.S. Small Business Administration (SBA) 7(a) Loans | $217 million (Record) | Not Provided |
Interpretation: Ready Capital achieved a record $217 million in U.S. SBA 7(a) loan originations, showcasing strong performance in small business lending. The $257 million in LMM originations also indicates solid business activity in this segment.
Key Operational Data
| Data Point | Value |
|---|---|
| Total Investments | $474 million |
| Net Book Value per Share | $12.97 |
| Residential Mortgage Servicing Rights Sold | $4.7 billion (~$61.8 million proceeds) |
| Under-performing Loans for Sale | $462 million |
| Stock Repurchase | 2.3 million shares @ $8.61/share |
| Dividend Declared | $0.30 per share in cash |
Comments from Company Officers
Thomas Capasse, Ready Capital's Chairman and CEO, stated, "The second quarter results are reflective of our cumulative efforts to cycle out of underperforming assets and into market yielding investments. These efforts, along with improving credit metrics across the loan portfolio and record growth in our Small Business Lending business, position the Company to improve earnings moving into year end."
Dividends and Share Repurchase Program
- Declared and paid a dividend of $0.30 per share in cash.
- Acquired approximately 2.3 million shares of the company's common stock at an average price of $8.61 per share as part of a stock repurchase program.
Forward Guidance
No specific forward guidance was provided in the earnings release.
Stock Price Movement
Post-earnings release, Ready Capital's stock price showed minimal change, decreasing by approximately -0.46%.
Overall, Ready Capital’s second quarter indicates significant operational achievements, particularly in the small business lending segment, despite the financial challenges evident from the GAAP loss. The ongoing efforts to reposition their asset portfolio and improve credit metrics reflect the company's strategic adjustments towards stability and growth.
