Atrium Mortgage Investment Corporation Announces Strong Q1 Results

April 22, 2015 5:02 PM EDT | Source: Atrium Mortgage Investment Corporation

Toronto, Ontario--(Newsfile Corp. - April 22, 2015) - Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB) (TSX: AI.DB.A) (TSX: AI.DB.B) today released its financial results for the three month period ended March 31, 2015.

Highlights

  • Revenues $9.5 million, up 24% from previous year, record earnings of $5.6 million for the quarter
  • Strong $0.23 basic and diluted earnings per share for the three months ended March 31, 2015, unchanged from the previous year.
  • Regular monthly dividend continues at $0.84 annual rate, $0.07 per month
  • High quality mortgage portfolio
    • 75% of portfolio in conventional first mortgages
    • 95% of loan portfolio is less than 75% loan to value
    • Continued focus on low risk real estate sectors

Interested parties are invited to participate in a conference call with management on Thursday, April 23, 2015 at 4:00 p.m. EDT. Please refer to the call-in information at the end of this news release.

Results of operations

For the three months ended March 31, 2015, mortgage interest and fees revenue aggregated $9.5 million, compared to $7.6 million in the comparative period, an increase of 24%. The weighted average interest rate on the mortgage portfolio increased to 8.82% at March 31, 2015, slightly higher than the 8.81% at December 31, 2014. Earnings and total comprehensive income were up 16% from the comparative quarter. Mortgages receivable declined by 10% from December 31, 2014 to $390 million at March 31, 2015. There were $63 million of new fundings during the quarter, and repayments of $107 million. This was expected and represents a normal fluctuation in volumes from quarter to quarter. Of the repayments during the first quarter, $34 million had been expected in the previous quarter, but had been delayed. The high level of repayments is an indicator as to the overall soundness of the mortgage portfolio.

Condensed Interim Statements of Earnings and Comprehensive Income
(Unaudited, $000s, except per share amounts)

    Three months ended March 31  
    2015     2014  
Revenue $  9,492   $  7,645  
Mortgage servicing and management fees   984     717  
Other expenses   271     260  
Provision for mortgage losses   362     464  
Income before financing costs   7,875     6,204  
Financing costs   2,273     1,368  
Earnings and total comprehensive income $  5,602   $  4,836  
             
Basic earnings per share $  0.23   $  0.23  
Diluted earnings per share $  0.23   $  0.23  
             
Dividends declared $  5,138   $  4,352  
             
Mortgages receivable, end of period $  390,152   $  344,301  
Total assets, end of period $  390,491   $  344,601  
Shareholder' equity, end of period $  249,548   $  213,245  

 

For further information on the financial results, please refer to Atrium's unaudited condensed interim financial statements and its management's discussion and analysis for the three month period ended March 31, 2015, available on SEDAR at www.sedar.com, and on the company's website at www.atriummic.com.

Mortgage portfolio
($000s)

    March 31, 2015     December 31, 2014  
          Outstanding     % of           Outstanding     % of  
Mortgage category   Number     amount     Portfolio     Number     amount     Portfolio  
(outstanding amounts in $000s)                                    
Commercial/mixed use   29   $  112,388     28.6%     31   $  134,990     31.1%  
Low-rise residential   21     78,483     20.0%     23     85,678     19.7%  
Construction   18     67,688     17.3%     17     61,095     14.1%  
House and apartment   90     65,287     16.6%     90     93,070     21.4%  
High-rise residential   8     43,154     11.0%     8     44,048     10.1%  
Mid-rise residential   10     21,377     5.4%     8     12,127     2.8%  
Condominium corporation   19     4,435     1.1%     13     3,260     0.8%  

     Mortgage portfolio

  195   $  392,812     100.0%     190   $  434,268     100.0%  

 

A summary of mortgages by size is presented below.
($000s)

    March 31, 2015     December 31, 2014  
          Outstanding     % of           Outstanding     % of  
Mortgage amount   Number     amount     Portfolio     Number     amount     Portfolio  
(outstanding amounts in $000s)                                    
$0 - $2,500,000   149   $  122,025     31.0%     139   $  119,655     27.6%  
$2,500,001 - $5,000,000   26     95,078     24.2%     26     90,602     20.9%  
$5,000,001 - $7,500,000   8     48,903     12.5%     9     54,931     12.6%  
$7,500,001 +   12     126,806     32.3%     16     169,080     38.9%  
    195   $  392,812     100.0%     190   $  434,268     100.0%  

 

As of March 31, 2015, the average outstanding mortgage balance was $2.0 million (December 31, 2014 – $2.3 million), and the median outstanding mortgage balance was $1.0 million (December 31, 2014 – $1.1 million).

Conference call

Interested parties are invited to participate in a conference call with management on Thursday, April 23, 2015 at 4:00 p.m. EDT.

To participate or listen to the conference call live, please call 1 (888) 241-0551 or (647) 427-3415.

For a replay of the conference call (available until May 6, 2015) please call 1 (855) 859-2056, Conference ID 9395381.

About Atrium

Canada's Premier Non-Bank Lender™

Atrium is a non-bank provider of residential and commercial mortgages that lends in major urban centres in Canada where the stability and liquidity of real estate are high. Atrium's objectives are to provide its shareholders with stable and secure dividends and preserve shareholders' equity by lending within conservative risk parameters.

Atrium is a Mortgage Investment Corporation (MIC) as defined in the Income Tax Act. Accordingly, Atrium is not taxed on income provided that its taxable income is paid to its shareholders in the form of dividends within 90 days after December 31 each year. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same position as if the mortgage investments made by the company had been made directly by the shareholder. For further information, please refer to regulatory filings available at www.sedar.com or Atrium's website at www.atriummic.com.

For additional information, please contact

Robert G. Goodall Jeffrey D. Sherman
President and Chief Executive Officer Chief Financial Officer

 

(416) 607-4200
ir@atriummic.com
www.atriummic.com

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