Toronto, Ontario--(Newsfile Corp. - October 26, 2017) - Atrium Mortgage Investment Corporation (TSX: AI) today released its
unaudited financial results for the three- and nine-month periods ended September 30, 2017.
Highlights for the quarter
- Record revenues of $12.7 million, up 10.6% from prior year
- Earnings of $7.2 million, up 6.0% from prior year
- $0.24 basic and $0.23 diluted earnings per share for the quarter
- Portfolio of $629 million, up 17.5% from December 31, 2016
-
High quality mortgage portfolio
- 82.9% of portfolio in first mortgages
- 86.8% of portfolio is less than 75% loan to value
- average loan-to-value is 60.7%
"We had a record level of loan advances during the quarter, at $105 million, which resulted in our portfolio exceeding $600
million for the first time. The new loans continue to be deliberately diversified by real estate sector. In the third quarter,
loans were funded in low-rise residential developments (37%), commercial real estate (28%), single family mortgages (19%), high
rise residential developments (10%) and construction loans (7%). We continue to lend conservatively, so that our overall
loan-to-value ratio remains at historically low levels," said Rob Goodall, CEO of Atrium.
Interested parties are invited to participate in a conference call with management on Friday, October 27, 2017 at 4:00 p.m. ET
to discuss the results.
Results of operations
Atrium achieved record results, as its assets grew to $624.5 million, and revenues for the quarter were $12.7 million, an
increase of 10.6% from the prior year. For the nine months ended September 30, 2017, revenues were $36.7 million, an increase of
13.8% from the prior year.
Net earnings for the three months ended September 30, 2017 were $7.2 million, an increase of 6.0% from the prior year. Basic and
diluted earnings per common share were $0.24 and $0.23, respectively, for the three months ended September 30, 2017, compared with
$0.25 basic and diluted earnings per common share for the prior year. Net earnings for the nine months ended September 30, 2017
were $21.2 million, an increase of 9.4% from the prior year. Basic and diluted earnings per common share were $0.71 and $0.70,
respectively, for the nine months ended September 30, 2017, compared with $0.72 basic and $0.71 diluted earnings per common share
for the comparable period in the previous year.
The company had $623.4 million of mortgages receivable as at September 30, 2017, an increase of 9.8% from the prior quarter and
17.5% from the prior year end. During the quarter, $105.0 million of mortgages were advanced, and $50.7 million of mortgages were
repaid.
The weighted average interest rate on the mortgage portfolio decreased slightly to 8.34% at September 30, 2017, compared with
8.50% at December 31, 2016 and 8.56% at September 30, 2016.
Interim Consolidated Statements of Income and Comprehensive Income
(Unaudited, 000s, except per share amounts)
| |
|
Three months ended |
|
|
Nine months ended |
|
| |
|
September 30 |
|
|
September 30 |
|
| |
|
2017 |
|
|
2016 |
|
|
2017 |
|
|
2016 |
|
| Revenue |
$ |
12,668 |
|
$ |
11,459 |
|
$ |
36,703 |
|
$ |
32,266 |
|
| Mortgage servicing and management fees |
|
(1,385 |
) |
|
(1,185 |
) |
|
(3,969 |
) |
|
(3,363 |
) |
| Other expenses |
|
(274 |
) |
|
(287 |
) |
|
(862 |
) |
|
(844 |
) |
| Provision for mortgage losses |
|
(400 |
) |
|
(350 |
) |
|
(1,448 |
) |
|
(969 |
) |
| Income before financing costs |
|
10,609 |
|
|
9,637 |
|
|
30,424 |
|
|
27,090 |
|
| Financing costs |
|
(3,397 |
) |
|
(2,832 |
) |
|
(9,252 |
) |
|
(7,730 |
) |
| Net income and comprehensive income |
$ |
7,212 |
|
$ |
6,805 |
|
$ |
21,172 |
|
$ |
19,360 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Basic earnings per share |
$ |
0.24 |
|
$ |
0.25 |
|
$ |
0.71 |
|
$ |
0.72 |
|
| Diluted earnings per share |
$ |
0.23 |
|
$ |
0.25 |
|
$ |
0.70 |
|
$ |
0.71 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends declared |
$ |
6,866 |
|
$ |
5,809 |
|
$ |
19,905 |
|
$ |
17,384 |
|
| Dividends declared per share |
$ |
0.22 |
|
$ |
0.215 |
|
$ |
0.66 |
|
$ |
0.645 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
| Mortgages receivable, end of period |
$ |
623,417 |
|
$ |
521,405 |
|
$ |
623,417 |
|
$ |
521,405 |
|
| Total assets, end of period |
$ |
624,500 |
|
$ |
522,634 |
|
$ |
624,500 |
|
$ |
522,634 |
|
| Shareholders’ equity, end of period |
$ |
348,835 |
|
$ |
279,499 |
|
$ |
348,835 |
|
$ |
279,499 |
|
Analysis of mortgage portfolio
(dollars in 000s)
| |
|
September 30, 2017 |
|
|
December 31, 2016 |
|
| |
|
|
|
|
Outstanding |
|
|
% of |
|
|
|
|
|
Outstanding |
|
|
% of |
|
| Mortgage category |
|
Number |
|
|
amount |
|
|
Portfolio |
|
|
Number |
|
|
amount |
|
|
Portfolio |
|
| Low-rise residential |
|
34 |
|
$ |
189,191 |
|
|
30.1% |
|
|
30 |
|
$ |
135,701 |
|
|
25.4% |
|
| House and apartment |
|
118 |
|
|
120,768 |
|
|
19.2% |
|
|
102 |
|
|
99,456 |
|
|
18.6% |
|
| Construction |
|
6 |
|
|
56,298 |
|
|
9.0% |
|
|
8 |
|
|
49,345 |
|
|
9.2% |
|
| High-rise residential |
|
6 |
|
|
37,380 |
|
|
5.9% |
|
|
7 |
|
|
53,182 |
|
|
9.9% |
|
| Mid-rise residential |
|
4 |
|
|
24,566 |
|
|
3.9% |
|
|
5 |
|
|
28,787 |
|
|
5.4% |
|
| Condominium corporation |
|
14 |
|
|
2,972 |
|
|
0.5% |
|
|
16 |
|
|
3,548 |
|
|
0.7% |
|
| Residential portfolio |
|
182 |
|
|
431,175 |
|
|
68.6% |
|
|
168 |
|
|
370,019 |
|
|
69.2% |
|
| Commercial/mixed use |
|
30 |
|
|
197,604 |
|
|
31.4% |
|
|
29 |
|
|
165,231 |
|
|
30.8% |
|
| Mortgage portfolio |
|
212 |
|
$ |
628,779 |
|
|
100.0% |
|
|
197 |
|
$ |
535,250 |
|
|
100.0% |
|
| |
|
September 30, 2017 |
|
| |
|
|
|
|
|
|
|
|
|
|
Weighted |
|
|
Weighted |
|
| |
|
Number of |
|
|
Outstanding |
|
|
Percentage |
|
|
average |
|
|
average |
|
| Location of underlying property |
|
mortgages |
|
|
amount |
|
|
outstanding |
|
|
loan to value |
|
|
interest rate |
|
| Greater Toronto Area |
|
154 |
|
$ |
411,650 |
|
|
65.5% |
|
|
61.4% |
|
|
8.36% |
|
| Non-GTA Ontario |
|
37 |
|
|
26,243 |
|
|
4.2% |
|
|
65.9% |
|
|
8.51% |
|
| Saskatchewan |
|
2 |
|
|
14,966 |
|
|
2.4% |
|
|
100.0% |
|
|
8.23% |
|
| Alberta |
|
6 |
|
|
23,589 |
|
|
3.7% |
|
|
54.9% |
|
|
8.85% |
|
| British Columbia |
|
13 |
|
|
152,331 |
|
|
24.2% |
|
|
55.2% |
|
|
8.16% |
|
| |
|
212 |
|
$ |
628,779 |
|
|
100.0% |
|
|
60.7% |
|
|
8.34% |
|
| |
|
December 31, 2016 |
|
| |
|
|
|
|
|
|
|
|
|
|
Weighted |
|
|
Weighted |
|
| |
|
Number of |
|
|
Outstanding |
|
|
Percentage |
|
|
average |
|
|
average |
|
| Location of underlying property |
|
mortgages |
|
|
amount |
|
|
outstanding |
|
|
loan to value |
|
|
interest rate |
|
| 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 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- and
nine-month periods ended September 30, 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 Friday, October 27, 2017 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 November 9, 2017) please call 1 (855) 859-2056, Conference ID 19854485.
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
(416) 867-1053
info@atriummic.com
www.atriummic.com
Jeffrey D. Sherman
Chief Financial Officer
