Sep 26, 2023
The Securities and Exchange Commission (SEC) adopted new rules for registered funds and institutional investment managers.
Atrium Mortgage Investment Corporation Announces Record Q2 Earnings
July 23, 2015 5:02 PM EDT | Source: Atrium Mortgage Investment Corporation
Toronto, Ontario--(Newsfile Corp. - July 23, 2015) - Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB) (TSX: AI.DB.A) (TSX: AI.DB.B) today released its unaudited financial results for the three and six month periods ended June 30, 2015.
| Highlights for the quarter | ||
| | Record revenues of $9.6 million, up 16% from prior year | |
| | Record earnings of $5.8 million, up 10% from prior year | |
| | Record earnings of $0.24 per share, up from $0.23 prior year | |
| | Regular monthly dividend continues at $0.07 per month − $0.84 annual rate, plus special dividend at year-end | |
| | High quality mortgage portfolio | |
| | 78% of portfolio in first mortgages | |
| | 96% 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 Friday, July 24, 2015 at 9:00 a.m. EDT. Please refer to the call-in information at the end of this news release.
Results of operations
For the three months ended June 30, 2015, mortgage interest and fees revenue aggregated $9.6 million, an increase of 16% from the prior year. For the six months ended June 30, 2015, mortgage interest and fees revenue aggregated $19.1 million, an increase of 20% from the prior year.
Net earnings for the three months ended June 30, 2015 were $5.8 million, an increase of 10% from the prior year. Basic and diluted earnings per common share were $0.24, for the three months ended June 30, 2015, compared with $0.23 per common share for prior year. Net earnings for the six months ended June 30, 2015 were $11.4 million, an increase of 13% from the prior year. Basic and diluted earnings per common share were $0.47 and $0.46, respectively, for the six months ended June 30, 2015, compared with $0.46 per common share for the comparable period in the previous year.
The weighted average interest rate on the mortgage portfolio was almost unchanged at 8.78% at June 30, 2015, compared with 8.81% at December 31, 2014. Mortgages portfolio increased by 1% from December 31, 2014 to $439.9 million at June 30, 2015.
Condensed Interim Statements of Earnings and Comprehensive Income
(Unaudited, $000s, except per share amounts)
| Three months ended | Six months ended | |||||||||||
| June 30 | June 30 | |||||||||||
| 2015 | 2014 | 2015 | 2014 | |||||||||
| Revenue | $ | 9,626 | $ | 8,296 | $ | 19,118 | $ | 15,941 | ||||
| Mortgage servicing and management fees | 1,005 | 826 | 1,989 | 1,543 | ||||||||
| Other expenses | 245 | 207 | 516 | 467 | ||||||||
| Provision for mortgage losses | 250 | 112 | 612 | 576 | ||||||||
| Income before financing costs | 8,126 | 7,151 | 16,001 | 13,355 | ||||||||
| Financing costs | 2,306 | 1,883 | 4,579 | 3,251 | ||||||||
| Earnings and total comprehensive income | $ | 5,820 | $ | 5,268 | $ | 11,422 | $ | 10,104 | ||||
| Basic earnings per share | $ | 0.24 | $ | 0.23 | $ | 0.47 | $ | 0.46 | ||||
| Diluted earnings per share | $ | 0.24 | $ | 0.23 | $ | 0.46 | $ | 0.46 | ||||
| Dividends declared | $ | 5,151 | $ | 4,777 | $ | 10,289 | $ | 9,128 | ||||
| Mortgages receivable, end of period | $ | 437,039 | $ | 381,879 | $ | 437,039 | $ | 381,879 | ||||
| Total assets, end of period | $ | 442,920 | $ | 382,059 | $ | 442,920 | $ | 382,059 | ||||
| Shareholder' equity, end of period | $ | 250,942 | $ | 247,261 | $ | 250,942 | $ | 247,261 | ||||
For further information on the financial results, and analysis of the company's mortgage portfolio in addition to that set out below, please refer to Atrium's unaudited condensed interim financial statements and its management's discussion and analysis for the three and six month periods ended June 30, 2015, available on SEDAR at www.sedar.com, and on the company's website at www.atriummic.com.
Analysis of mortgage portfolio
| June 30, 2015 | December 31, 2014 | |||||||||||||||||
| Outstanding | % of | Outstanding | % of | |||||||||||||||
| Mortgage category | Number | amount | Portfolio | Number | amount | Portfolio | ||||||||||||
| (outstanding amounts in $000s) | ||||||||||||||||||
| Commercial/mixed use | 30 | $ | 130,107 | 29.6% | 31 | $ | 134,990 | 31.1% | ||||||||||
| Low-rise residential | 22 | 86,902 | 19.8% | 23 | 85,678 | 19.7% | ||||||||||||
| House and apartment | 117 | 81,562 | 18.5% | 90 | 93,070 | 21.4% | ||||||||||||
| Construction | 19 | 69,783 | 15.9% | 17 | 61,095 | 14.1% | ||||||||||||
| High-rise residential | 10 | 42,783 | 9.7% | 8 | 44,048 | 10.1% | ||||||||||||
| Mid-rise residential | 11 | 24,375 | 5.5% | 8 | 12,127 | 2.8% | ||||||||||||
| Condominium corporation | 19 | 4,356 | 1.0% | 13 | 3,260 | 0.8% | ||||||||||||
| Mortgage portfolio | 228 | 439,868 | 100.0% | 190 | 434,268 | 100.0% | ||||||||||||
| June 30, 2015 | December 31, 2014 | |||||||||||||||||
| Outstanding | % of | Outstanding | % of | |||||||||||||||
| Mortgages by size | Number | amount | Portfolio | Number | amount | Portfolio | ||||||||||||
| (outstanding amounts in $000s) | ||||||||||||||||||
| $0 - $2,500,000 | 179 | $ | 136,217 | 31.0% | 139 | $ | 119,655 | 27.6% | ||||||||||
| $2,500,001 - $5,000,000 | 24 | 84,586 | 19.2% | 26 | 90,602 | 20.9% | ||||||||||||
| $5,000,001 - $7,500,000 | 13 | 80,495 | 18.3% | 9 | 54,931 | 12.6% | ||||||||||||
| $7,500,001 + | 12 | 138,570 | 31.5% | 16 | 169,080 | 38.9% | ||||||||||||
| 228 | $ | 439,868 | 100.0% | 190 | $ | 434,268 | 100.0% | |||||||||||
As of June 30, 2015, the average outstanding mortgage balance was $1.9 million (December 31, 2014 - $2.3 million), and the median outstanding mortgage balance was $0.9 million (December 31, 2014 - $1.1 million).
Conference call
Interested parties are invited to participate in a conference call with management on Friday, July 24, 2015 at 9:00 a.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 August 7, 2015) please call 1 (855) 859-2056, Conference ID 9443354.
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 |