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Atrium Mortgage Investment Corporation Achieves Record Q1 Earnings - 9.3% Increase over Prior Year
April 20, 2016 5:02 PM EDT | Source: Atrium Mortgage Investment Corporation
Toronto, Ontario--(Newsfile Corp. - April 20, 2016) - Atrium Mortgage Investment Corporation (TSX: AI) today released its unaudited financial results for the three month period ended March 31, 2016.
Highlights for the quarter
- Record earnings of $6.1 million, up 9.3% from prior year
- Earnings of $0.23 per share
- Revenues of $10.1 million, up 6.6% from prior year
- Regular monthly dividend increased to $0.215 for the quarter (annualized rate of $0.86)
- High quality mortgage portfolio
- 83% of portfolio in first mortgages
- 96% of portfolio is less than 75% loan to value
- Mortgage portfolio grew to $464 million
- Continued focus on low risk real estate sectors
Interested parties are invited to participate in a conference call with management on Thursday, April 21, 2016 at 4:00 p.m. EDT. Please refer to the call-in information at the end of this news release.
Results of operations
Atrium achieved record results in the quarter, as its assets grew to $460 million. For the three months ended March 31, 2016, mortgage interest and fees revenue aggregated $10.1 million, an increase of 6.6% from the prior year.
Net earnings for the three months ended March 31, 2016 were $6.1 million, an increase of 9.3% from the prior year. Basic and diluted earnings per common share were $0.23, for the three months ended March 31, 2016, compared with $0.23 basic and diluted per common share for the prior year.
The company had $460 million of mortgages receivable as at March 31, 2016, an increase of 2.7% from the prior quarter. During the quarter, $59.8 million of gross new mortgages were advanced, and $49.3 million of gross mortgages were repaid. Atrium's focus continues to be on lending in the major metropolitan areas of Ontario and British Columbia. During the quarter, exposure to Alberta was reduced from 25 loans constituting 13.5% of the portfolio at December 31, 2015 to 21 loans and 12.7% of the portfolio at March 31, 2016.
The weighted average interest rate on the mortgage portfolio decreased slightly to 8.64% at March 31, 2016, compared with 8.66% at December 31, 2015 and 8.82% at March 31, 2015. The mortgage portfolio increased by 2.7% from December 31, 2015 to $464.0 million at March 31, 2016.
Interim Statements of Earnings and Comprehensive Income
(Unaudited, 000s, except per share amounts)
| Three months ended March 31 | ||||||
| 2016 | 2015 | |||||
| Revenue | $ | 10,116 | $ | 9,492 | ||
| Mortgage servicing and management fees | (1,066 | ) | (984 | ) | ||
| Other expenses | (271 | ) | (271 | ) | ||
| Provision for mortgage losses | (300 | ) | (362 | ) | ||
| Income before financing costs | 8,479 | 7,875 | ||||
| Financing costs | (2,357 | ) | (2,273 | ) | ||
| Earnings and total comprehensive income | $ | 6,122 | $ | 5,602 | ||
| Basic earnings per share | $ | 0.23 | $ | 0.23 | ||
| Diluted earnings per share | $ | 0.23 | $ | 0.23 | ||
| Dividends declared | $ | 5,781 | $ | 5,138 | ||
| Mortgages receivable, end of period | $ | 460,244 | $ | 390,152 | ||
| Total assets, end of period | $ | 460,349 | $ | 390,248 | ||
| Shareholder' equity, end of period | $ | 276,280 | $ | 249,548 | ||
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 interim financial statements and its management's discussion and analysis for the three month period ended March 31, 2016, available on SEDAR at www.sedar.com, and on the company's website at www.atriummic.com.
Analysis of mortgage portfolio
| March 31, 2016 | December 31, 2015 | |||||||||||||||||
| Mortgage category | Number | Outstanding amount | % of Portfolio | Number | Outstanding amount | % of Portfolio | ||||||||||||
| (outstanding amounts in 000s) | ||||||||||||||||||
| Low-rise residential | 22 | $ | 105,745 | 22.8% | 23 | $ | 110,034 | 24.3% | ||||||||||
| House and apartment | 109 | 92,365 | 19.9% | 110 | 84,755 | 18.8% | ||||||||||||
| Construction | 8 | 39,365 | 8.5% | 9 | 44,701 | 9.9% | ||||||||||||
| High-rise residential | 7 | 37,990 | 8.2% | 9 | 42,245 | 9.4% | ||||||||||||
| Mid-rise residential | 7 | 16,259 | 3.5% | 7 | 14,662 | 3.2% | ||||||||||||
| Condominium corporation | 17 | 3,978 | 0.8% | 18 | 4,111 | 0.9% | ||||||||||||
| Residential portfolio | 170 | 295,702 | 63.7% | 176 | 300,508 | 66.5% | ||||||||||||
| Commercial/mixed use | 34 | 168,302 | 36.3% | 31 | 151,083 | 33.5% | ||||||||||||
| Mortgage portfolio | 204 | 464,004 | 100.0% | 207 | 451,591 | 100.0% | ||||||||||||
| March 31, 2016 | |||||||||||||||
| Location of underlying property | Number of mortgages | Outstanding amount | Percentage outstanding | Weighted average loan to value | Weighted average interest rate | ||||||||||
| (outstanding amounts in 000s) | |||||||||||||||
| Greater Toronto Area | 155 | $ | 305,000 | 65.7% | 63.6% | 8.50% | |||||||||
| Non-GTA Ontario | 14 | 8,222 | 1.8% | 66.8% | 9.17% | ||||||||||
| Saskatchewan | 1 | 11,444 | 2.5% | 71.1% | 8.50% | ||||||||||
| Alberta | 21 | 58,822 | 12.7% | 59.9% | 9.04% | ||||||||||
| British Columbia | 13 | 80,516 | 17.3% | 60.4% | 8.88% | ||||||||||
| 204 | $ | 464,004 | 100.0% | 62.8% | 8.64% | ||||||||||
| December 31, 2015 | |||||||||||||||
| Location of underlying property | Number of mortgages | Outstanding amount | Percentage outstanding | Weighted average loan to value | Weighted average interest rate | ||||||||||
| (outstanding amounts in 000s) | |||||||||||||||
| Greater Toronto Area | 152 | $ | 292,547 | 64.8% | 66.1% | 8.61% | |||||||||
| Non-GTA Ontario | 15 | 11,436 | 2.5% | 67.3% | 8.99% | ||||||||||
| Saskatchewan | 1 | 10,822 | 2.4% | 71.1% | 8.50% | ||||||||||
| Alberta | 25 | 61,078 | 13.5% | 59.7% | 8.68% | ||||||||||
| British Columbia | 14 | 75,708 | 16.8% | 62.6% | 8.83% | ||||||||||
| 207 | $ | 451,591 | 100.0% | 64.7% | 8.66% | ||||||||||
Conference call
Interested parties are invited to participate in a conference call with management on Thursday, April 21, 2016 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 4, 2016) please call 1 (855) 859-2056, Conference ID 95322486.
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 Canada Income Tax Act, so 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
President and Chief Executive Officer
Jeffrey D. Sherman
Chief Financial Officer
(416) 607-4200
ir@atriummic.com
www.atriummic.com