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Atrium Mortgage Investment Corporation Achieves Record Revenues and Earnings in 2017
February 08, 2018 5:56 PM EST | Source: Atrium Mortgage Investment Corporation
Toronto, Ontario--(Newsfile Corp. - February 8, 2018) - Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB) (TSX: AI.DB.A) (TSX: AI.DB.B) (TSX: AI.DB.C) today released its financial results for the year ended December 31, 2017.
Highlights
- Record revenues of $50.4 million, up 14.3% from prior year
- Earnings of $29.1 million, up 11.3% from prior year
- $0.95 basic and $0.94 diluted earnings per share for the year ended December 31, 2017
- $0.04 per share special dividend to shareholders of record December 31, 2017
- $0.92 total dividends per share in 2017
- 2018 regular monthly dividend increased to $0.90 per annum
- Mortgage portfolio increased 18.1% year-over-year to $632 million at December 31, 2017
- High quality mortgage portfolio
- 81.8% of portfolio in first mortgages
- 85.9% of loan portfolio is less than 75% loan to value
- average loan-to-value is 61.5%
"Overall, I am pleased with Atrium's performance in 2017. We had a record level of loan advances during the year of $353.7 million, which resulted in an 18% growth in our portfolio. Our new loans continue to be strategically diversified by real estate sector. We continue to lend conservatively, with a high percentage of first mortgages and an overall portfolio loan-to-value ratio below historic levels," said Rob Goodall, CEO of Atrium.
"Once again we would like to thank our real estate clients for their continued loyalty, and our shareholders for their continuing support. We are proud to state that Atrium continues to be regarded as Canada's premier non-bank lender™."
Interested parties are invited to participate in a conference call with management on Friday, February 9, 2018 at 4:00 p.m. EST. Please refer to the call-in information at the end of this news release.
Results of operations
Atrium achieved record results, as its assets grew to $627.9 million, and revenues for the year were $50.4 million, an increase of 14.3% from the prior year. For the year ended December 31, 2017, earnings were $29.1 million, an increase of 11.3% from the prior year.
Basic and diluted earnings per common share were $0.95 and $0.94, respectively, for the year ended December 31, 2017, compared with $0.97 basic and $0.95 diluted earnings per common share in the previous year.
The company had $626.8 million of mortgages receivable as at December 31, 2017, an increase of 18.1% from the previous year. During the year, $353.7 million of mortgages were advanced, and $263.2 million of mortgages were repaid.
The weighted average interest rate on the mortgage portfolio was 8.44% at December 31, 2017, compared with 8.34% at September 30, 2017 and 8.50% at December 31, 2016.
Condensed Statements of Earnings and Comprehensive Income
($000s, except per share amounts)
| Year | Year | Year | |||||||
| ended | ended | ended | |||||||
| December 31 | December 31 | December 31 | |||||||
| 2017 | 2016 | 2015 | |||||||
| Revenue | $ | 50,359 | $ | 44,042 | $ | 40,206 | |||
| Mortgage servicing and management fees | (5,470 | ) | (4,661 | ) | (4,173 | ) | |||
| Other expenses | (1,251 | ) | (1,221 | ) | (1,187 | ) | |||
| Provision for mortgage losses | (1,850 | ) | (1,519 | ) | (1,912 | ) | |||
| Income before financing costs | 41,788 | 36,641 | 32,934 | ||||||
| Financing costs | (12,729 | ) | (10,521 | ) | (9,597 | ) | |||
| Earnings and total comprehensive income | $ | 29,059 | $ | 26,120 | $ | 23,337 | |||
| Basic earnings per share | $ | 0.95 | $ | 0.97 | $ | 0.94 | |||
| Diluted earnings per share | $ | 0.94 | $ | 0.95 | $ | 0.93 |
For further information on the financial results, please refer to Atrium's financial statements for the year ended December 31, 2017, and its management's discussion and analysis for the same period, available on SEDAR at www.sedar.com, and on the company's website at www.atriummic.com.
| Mortgage portfolio | ||||||||||||||||||
| ($000s) | December 31, 2017 | December 31, 2016 | ||||||||||||||||
| Outstanding | % of | Outstanding | % of | |||||||||||||||
| Mortgage category | Number | amount | Portfolio | Number | amount | Portfolio | ||||||||||||
| (outstanding amounts in 000s) | ||||||||||||||||||
| Low-rise residential | 36 | $ | 234,343 | 37.1% | 30 | $ | 135,701 | 25.4% | ||||||||||
| House and apartment | 120 | 86,287 | 13.6% | 102 | 99,456 | 18.6% | ||||||||||||
| Construction | 8 | 64,828 | 10.3% | 8 | 49,345 | 9.2% | ||||||||||||
| High-rise residential | 7 | 44,949 | 7.1% | 7 | 53,182 | 9.9% | ||||||||||||
| Mid-rise residential | 4 | 31,471 | 5.0% | 5 | 28,787 | 5.4% | ||||||||||||
| Condominium corporation | 14 | 2,887 | 0.4% | 16 | 3,548 | 0.7% | ||||||||||||
| Residential portfolio | 189 | 464,765 | 73.5% | 168 | 370,019 | 69.2% | ||||||||||||
| Commercial/mixed use | 27 | 167,622 | 26.5% | 29 | 165,231 | 30.8% | ||||||||||||
| Mortgage portfolio | 216 | 632,387 | 100.0% | 197 | 535,250 | 100.0% | ||||||||||||
| Accrued interest receivable | 2,537 | 2,126 | ||||||||||||||||
| Mortgage discount | (262 | ) | (360 | ) | ||||||||||||||
| Unamortized origination fees | (706 | ) | (626 | ) | ||||||||||||||
| Provision for mortgage losses | (7,200 | ) | (5,800 | ) | ||||||||||||||
| Mortgages receivable | $ | 626,756 | $ | 530,590 | ||||||||||||||
A summary of mortgages by size is presented below.
| ($000s) | December 31, 2017 | December 31, 2016 | ||||||||||||||||
| Outstanding | % of | Outstanding | % of | |||||||||||||||
| Mortgage amount | Number | amount | Portfolio | Number | amount | Portfolio | ||||||||||||
| (outstanding amounts in 000s) | ||||||||||||||||||
| $0 - $2,500,000 | 161 | $ | 105,386 | 16.7% | 145 | $ | 102,656 | 19.2% | ||||||||||
| $2,500,001 - $5,000,000 | 19 | 69,755 | 11.0% | 24 | 89,340 | 16.7% | ||||||||||||
| $5,000,001 - $7,500,000 | 10 | 60,555 | 9.6% | 5 | 29,972 | 5.6% | ||||||||||||
| $7,500,001 - $10,000,000 | 5 | 42,920 | 6.8% | 8 | 69,688 | 13.0% | ||||||||||||
| $10,000,001 + | 21 | 353,771 | 55.9% | 15 | 243,594 | 45.5% | ||||||||||||
| 216 | $ | 632,387 | 100.0% | 197 | $ | 535,250 | 100.0% | |||||||||||
As of December 31, 2017, the average outstanding mortgage balance was $2.9 million (December 31, 2016 - $2.7 million), and the median outstanding mortgage balance was $0.8 million (December 31, 2016 - $0.8 million).
Conference call
Interested parties are invited to participate in a conference call with management on Friday, February 9, 2018 at 4:00 p.m. EST.
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 February 22, 2018) please call 1 (855) 859-2056, Conference ID 9998449.
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
President and Chief Executive Officer
(416) 607-4200
ir@atriummic.com
www.atriummic.com
Jennifer Scoffield
Chief Financial Officer