Street Capital Group Inc. reported unaudited consolidated financial results for the second quarter and six months ended June 30, 2016. For the quarter, the company reported total revenues of $19,924,000 compared to $26,389,000 a year ago. Income from continuing operations was $4,035,000 compared to loss from continuing operations of $37,833,000 a year ago. Net income attributable to shareholders was $5,310,000 or $0.04 per basic and diluted share compared to net loss attributable to shareholders of $37,666,000 or $0.37 per basic and diluted share a year ago. Adjusted net income was $5,845,000 or $0.05 per share compared to $8,767,000 or $0.06 per share a year ago. Return on equity was 17.1% against negative 131.6% a year ago. Adjusted return on equity was 8.1% against 30.6% a year ago.

For the six months, the company reported revenues of $33,149,000 compared to $40,640,000 a year ago. Income from continuing operations was $6,725,000 compared to loss from continuing operations of $37,238,000 a year ago. Net income attributable to shareholders was $8,313,000 or $0.07 per basic and diluted share compared to net loss attributable to shareholders of $33,916,000 or $0.34 per basic and diluted share a year ago. Adjusted net income was $8,289,000 or $0.07 per share compared to $12,072,000 or $0.12 per diluted share a year ago. Return on equity was 13.6% against negative 60.3% a year ago. Adjusted return on equity was 13.5% against 21.5% a year ago. Book value per share was $1.04 as on June 30, 2016 against $0.94 as on June 30, 2015.

Renewal volumes were higher in 2015 as they related to both 5-year terms originated in 2010 and to higher than usual 4- and 3-year terms originated in 2011 and 2012, which reflected investor demand at that time. In 2016, renewal volumes will be limited to primarily 5-year terms originated in 2011, which will lead to 2016 renewal volumes approximately 15% lower than 2015. Given the investments in its future, combined with lower gains on sale this year, the company anticipates lower adjusted net income in 2016 than 2015.

Management expects 2017 renewal volumes to exceed 2015 renewal volumes of $1.77 billion by 10% to 15%. 2018 renewal volumes are expected to increase by 30% to 40% over 2017. Management expects higher profitability beyond 2016 as revenues grow to outpace expenditures.