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Atrium Mortgage Investment Corporation Achieves Record Q1 Earnings - 16.9% Increase over Prior Year
April 26, 2017 5:00 PM EDT | Source: Atrium Mortgage Investment Corporation
Toronto, Ontario--(Newsfile Corp. - April 26, 2017) - Atrium Mortgage Investment Corporation (TSX: AI) today released its unaudited financial results for the three month period ended March 31, 2017.
Highlights for the quarter
- Record earnings of $7.2 million, up 16.9% from the same period last year
- $0.25 basic earnings per share, compared to $0.23 in the same period last year
- Revenues of $12.0 million, up 18.3% from the same period last year
- Portfolio of $569 million, up 6.3% from year end
- High quality mortgage portfolio
- 80.5% of portfolio in first mortgages
- 89.9% of portfolio is less than 75% loan to value; average loan-to-value is 61.8%
- Exposure in Alberta reduced to 5.1% of portfolio
Interested parties are invited to participate in a conference call with management on Thursday, April 27, 2017 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 $565 million. For the three months ended March 31, 2017, mortgage interest and fee revenue aggregated $12.0 million, an increase of 18.3% from the prior year.
Net earnings for the three months ended March 31, 2017 were $7.2 million, an increase of 16.9% from the prior year. Basic and diluted earnings per common share were $0.25 and $0.24, respectively, for the three months ended March 31, 2017, compared with $0.23 basic and diluted earnings per common share for the prior year. Dividends paid to date aggregate $0.22, with any excess of earnings over dividends for the year to be paid in February 2018 to shareholders of record December 29, 2017.
The company had $564 million of mortgages receivable as at March 31, 2017, an increase of 6.3% from the prior year end. During the quarter, a record $84.7 million of mortgages was advanced, and $51.0 million of mortgages were repaid.
The weighted average interest rate on the mortgage portfolio decreased slightly to 8.46% at March 31, 2017 compared with 8.50% at December 31, 2016.
Interim Consolidated Statements of Earnings and Comprehensive Income
(Unaudited, 000s, except per share amounts)
| Three months ended March 31 | ||||||
| 2017 | 2016 | |||||
| Revenue | $ | 11,966 | $ | 10,116 | ||
| Mortgage servicing and management fees | (1,292 | ) | (1,066 | ) | ||
| Other expenses | (285 | ) | (271 | ) | ||
| Provision for mortgage losses | (303 | ) | (300 | ) | ||
| Income before financing costs | 10,086 | 8,479 | ||||
| Financing costs | (2,928 | ) | (2,357 | ) | ||
| Earnings and total comprehensive income | $ | 7,158 | $ | 6,122 | ||
| Basic earnings per share | $ | 0.25 | $ | 0.23 | ||
| Diluted earnings per share | $ | 0.24 | $ | 0.23 | ||
| Dividends declared | $ | 6,404 | $ | 5,781 | ||
| Mortgages receivable, end of period | $ | 564,031 | $ | 460,244 | ||
| Total assets, end of period | $ | 565,365 | $ | 460,349 | ||
| Shareholder’ equity, end of period | $ | 313,348 | $ | 276,280 | ||
Analysis of mortgage portfolio
| March 31, 2017 | December 31, 2016 | |||||||||||||||||
| Outstanding | % of | Outstanding | % of | |||||||||||||||
| Mortgage category | Number | amount | Portfolio | Number | amount | Portfolio | ||||||||||||
| (outstanding amounts in 000s) | ||||||||||||||||||
| Low-rise residential | 34 | $ | 162,983 | 28.7% | 30 | $ | 135,701 | 25.4% | ||||||||||
| House and apartment | 85 | 84,017 | 14.8% | 102 | 99,456 | 18.6% | ||||||||||||
| High-rise residential | 7 | 53,979 | 9.5% | 7 | 53,182 | 9.9% | ||||||||||||
| Construction | 7 | 48,146 | 8.5% | 8 | 49,345 | 9.2% | ||||||||||||
| Mid-rise residential | 6 | 26,584 | 4.7% | 5 | 28,787 | 5.4% | ||||||||||||
| Condominium corporation | 16 | 3,454 | 0.6% | 16 | 3,548 | 0.7% | ||||||||||||
| Residential portfolio | 155 | 379,163 | 66.8% | 168 | 370,019 | 69.2% | ||||||||||||
| Commercial/mixed use | 31 | 189,548 | 33.2% | 29 | 165,231 | 30.8% | ||||||||||||
| Mortgage portfolio | 186 | 568,711 | 100.0% | 197 | 535,250 | 100.0% | ||||||||||||
| March 31, 2017 | |||||||||||||||
| 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 | 133 | $ | 373,279 | 65.6% | 62.4% | 8.39% | |||||||||
| Non-GTA Ontario | 30 | 20,980 | 3.7% | 65.3% | 8.76% | ||||||||||
| Saskatchewan | 2 | 13,088 | 2.3% | 100.0% | 8.50% | ||||||||||
| Alberta | 9 | 29,102 | 5.1% | 60.0% | 9.42% | ||||||||||
| British Columbia | 12 | 132,262 | 23.3% | 56.1% | 8.41% | ||||||||||
| 186 | $ | 568,711 | 100.0% | 61.8% | 8.46% | ||||||||||
| December 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 | 148 | $ | 350,026 | 65.4% | 63.9% | 8.47% | |||||||||
| Non-GTA Ontario | 24 | 16,009 | 3.0% | 65.4% | 8.91% | ||||||||||
| Saskatchewan | 2 | 12,375 | 2.3% | 97.1% | 8.50% | ||||||||||
| Alberta | 11 | 37,032 | 6.9% | 62.0% | 9.24% | ||||||||||
| British Columbia | 12 | 119,808 | 22.4% | 55.6% | 8.27% | ||||||||||
| 197 | $ | 535,250 | 100.0% | 62.7% | 8.50% | ||||||||||
For further information on the financial results, and analysis of the company's mortgage portfolio in addition to that set out above, please refer to Atrium's unaudited interim financial statements and its management's discussion and analysis for the three month period ended March 31, 2017, available on SEDAR at www.sedar.com, and on the company's website at www.atriummic.com.
Conference call
Interested parties are invited to participate in a conference call with management on Thursday, April 27, 2017 at 4:00 p.m. EDT to discuss the results.
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 10, 2017) please call 1 (855) 859-2056, Conference ID 19835866.
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 about Atrium, please refer to regulatory filings available at www.sedar.com or investor information on 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) 867-1053
info@atriummic.com
www.atriummic.com