Toronto, Ontario--(Newsfile Corp. - May 7, 2019) - Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB) (TSX: AI.DB.B) (TSX: AI.DB.C) (TSX: AI.DB.D) (TSX: AI.DB.E) today released its unaudited financial results for the three month period ended March 31, 2019.
Highlights
- Record revenues of $15.8 million, up 18.1% from the first quarter of the prior year
- Record net income of $9.2 million, up 16.5% from the first quarter of the prior year
- $0.24 basic and diluted earnings per share for the quarter
- Mortgage portfolio increased to $707.7 million, 3.4% increase from December 31, 2018
- High quality mortgage portfolio
- 84.4% of portfolio in first mortgages
- 89.2% of portfolio is less than 75% loan to value
- average loan-to-value is 60.6%
"We had a solid first quarter of 2019. Our portfolio grew to $707.7 million, despite slowing real estate market conditions. The average loan to value in the mortgage portfolio continued to trend downwards and loan quality is high. We also strengthened our balance sheet with the completion of two successful public offerings during the quarter; a $34.5 million common share issuance and a $25 million convertible debenture issuance, with the overallotment option on the debentures being exercised in full in April. We were very pleased with the strong demand for both offerings." said Rob Goodall, CEO of Atrium.
Interested parties are invited to participate in a conference call with management on Wednesday, May 8, 2019 at 4:00 p.m. ET 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 21, 2019) please call 1 (855) 859-2056, Conference ID 2395756.
Results of operations
Atrium ended its first quarter of 2019 with assets of $723.2 million and revenues grew to a record $15.8 million, an increase of 18.1% from the first quarter of the prior year. Net income for the first quarter of 2019 was $9.2 million, an increase of 16.5% from the first quarter of the prior year.
Basic and diluted earnings per common share were $0.24, for the three months ended March 31, 2019, compared with $0.24 basic and diluted earnings per common share for the comparable quarter in the prior year.
The company had $706.1 million of mortgages receivable as at March 31, 2019, an increase of 3.4% from December 31, 2018. During the quarter, $53.7 million of mortgages were advanced, and $34.6 million of mortgages were repaid.
The weighted average interest rate on the mortgage portfolio increased to 8.90% at March 31, 2019, up from 8.85% at December 31, 2018.
Financial summary
Condensed Interim Consolidated Statements of Income and Comprehensive Income
| Three months ended March 31 | ||
| 2019 | 2018 | |
| Revenue | $ 15,796 | $ 13,374 |
| Mortgage servicing and management fees | (1,680) | (1,454) |
| Other expenses | (287) | (252) |
| Provision for mortgage losses | (400) | (300) |
| Income before financing costs | 13,429 | 11,368 |
| Financing costs | (4,194) | (3,441) |
| Earnings and total comprehensive income | $ 9,235 | $ 7,927 |
| Basic earnings per share | $ 0.24 | $ 0.24 |
| Diluted earnings per share | $ 0.24 | $ 0.24 |
| Dividends declared | $ 8,648 | $ 7,677 |
| Mortgages receivable, end of period | $ 706,098 | $ 647,849 |
| Total assets, end of period | $ 723,225 | $ 649,020 |
| Shareholders' equity, end of period | $ 423,286 | $ 377,084 |
Analysis of mortgage portfolio
(dollars in 000s)
| March 31, 2019 | December 31, 2018 | |||||
| Outstanding | % of | Outstanding | % of | |||
| Property Type | Number | amount | Portfolio | Number | amount | Portfolio |
| (outstanding amounts in 000s) | ||||||
| Low-rise residential | 36 | $ 228,109 | 32.2% | 38 | $ 232,713 | 34.0% |
| High-rise residential | 17 | 159,520 | 22.5% | 15 | 146,027 | 21.3% |
| Mid-rise residential | 21 | 156,477 | 22.1% | 20 | 139,708 | 20.4% |
| House and apartment | 100 | 64,578 | 9.1% | 101 | 64,230 | 9.4% |
| Condominium corporation | 14 | 2,943 | 0.4% | 14 | 2,533 | 0.4% |
| Residential portfolio | 188 | 611,627 | 86.3% | 188 | 585,211 | 85.5% |
| Commercial | 20 | 96,089 | 13.7% | 20 | 99,193 | 14.5% |
| Mortgage portfolio | 208 | 707,716 | 100.0% | 208 | 684,404 | 100.0% |
| March 31, 2019 | |||||
| Weighted | Weighted | ||||
| Number of | Outstanding | Percentage | average | average | |
| Location of underlying property | mortgages | amount | outstanding | loan to value | interest rate |
| (outstanding amounts in 000s) | |||||
| Greater Toronto Area | 161 | $ 456,406 | 64.5% | 65.5% | 9.00% |
| Non-GTA Ontario | 26 | 29,830 | 4.2% | 55.5% | 8.26% |
| Alberta | 4 | 14,817 | 2.1% | 54.1% | 8.80% |
| British Columbia | 17 | 206,663 | 29.2% | 51.1% | 8.79% |
| 208 | $ 707,716 | 100.0% | 60.6% | 8.90% | |
| December 31, 2018 | |||||
| Weighted | Weighted | ||||
| Number of | Outstanding | Percentage | average | average | |
| Location of underlying property | mortgages | amount | outstanding | loan to value | interest rate |
| (outstanding amounts in 000s) | |||||
| Greater Toronto Area | 162 | $ 431,334 | 63.0% | 65.5% | 8.94% |
| Non-GTA Ontario | 26 | 29,160 | 4.3% | 57.9% | 8.28% |
| Alberta | 3 | 15,698 | 2.3% | 52.5% | 8.83% |
| British Columbia | 17 | 208,212 | 30.4% | 53.1% | 8.76% |
| 208 | $ 684,404 | 100.0% | 61.1% | 8.85% | |
For further information on the financial results, and further analysis of the company's mortgage portfolio, please refer to Atrium's unaudited interim consolidated financial statements and its management's discussion and analysis for the three month period ended March 31, 2019, 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 Wednesday, May 8, 2019 at 4:00 p.m. ET 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 21, 2019) please call 1 (855) 859-2056, Conference ID 2395756.
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
Jennifer Scoffield
Chief Financial Officer
(416) 867-1053
info@atriummic.com
www.atriummic.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/44612
