AMIVF - Atrium Mortgage Investment Corporation Achieves Record Revenues and Net Income in Third Quarter of 2019
Toronto, Ontario--(Newsfile Corp. - October 31, 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 and nine month periods ended September 30, 2019.
Highlights
Record revenues of $16.72 million, up 8.0% from the third quarter of the prior year
Record net income of $9.9 million, up 14.2% from the third quarter of the prior year
$0.25 basic and diluted earnings per share for the quarter
Record $0.74 basic and $0.73 diluted earnings per share year-to-date
Mortgage portfolio increased to $739.5 million, 8.0% increase from December 31, 2018
High quality mortgage portfolio
85.4% of portfolio in first mortgages
89.2% of portfolio is less than 75% loan to value
average loan-to-value is 61.2%
"We continue to be very pleased with our results in 2019. In fact, our year to date earnings per share of $0.74 are the highest third quarter year to date earnings since Atrium went public in the fall of 2012. The mortgage portfolio is performing well, and we continue to lend defensively to ensure that our loan quality is preserved. The average loan to value of 61.2% is below our historic average. We completed a very successful $17.3 million public offering and $10 million non-brokered private placement of common shares in October 2019 for total gross proceeds of $27.3 million. This is in addition to two successful public offerings earlier in the year, all of which had strong demand." said Rob Goodall, CEO of Atrium.
Interested parties are invited to participate in a conference call with management on Friday, November 1, 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 November 14, 2019) please call 1 (855) 859-2056, Conference ID 5389958.
Results of operations
Atrium ended its third quarter of 2019 with assets of $754.3 million and record quarterly revenue of $16.72 million, an increase of 8.0% from the third quarter of the prior year. Net income for the third quarter of 2019 was $9.9 million, an increase of 14.2% from the third quarter of the prior year. Basic and diluted earnings per common share were $0.25 for the three months ended September 30, 2019, compared with $0.24 basic and diluted earnings per common share for the comparable quarter in the prior year.
Revenue for the nine months ended September 30, 2019 was $49.2 million, an increase of 13.1% from the prior year. Net income for the nine months ended September 30, 2019 was $28.8 million, an increase of 14.3% from the prior year. Basic and diluted earnings per common share were $0.74 and $0.73, respectively, for the nine months ended September 30, 2019, compared with $0.72 basic and $0.71 diluted earnings per common share from the prior year.
The company had $737.2 million of mortgages receivable as at September 30, 2019, an increase of 8.0% from December 31, 2018. During the nine month period ended September 30, 2019, $152.0 million of mortgage principal was advanced, and $109.7 million was repaid.
The weighted average interest rate on the mortgage portfolio at September 30, 2019 was 8.80%, compared to 8.85% at December 31, 2018.
Financial summary
Interim Consolidated Statements of Income and Comprehensive Income
| (Unaudited, 000s, except per share amounts) |
| Three months ended |
| Nine months ended |
| September 30 |
| September 30 |
| 2019 |
| 2018 |
| 2019 |
| 2018 |
| Revenue |
| $ |
| 16,716 |
| $ |
| 15,476 |
| $ |
| 49,179 |
| $ |
| 43,466 |
| Mortgage servicing and management fees |
| (1,743 |
| ) |
| (1,661 |
| ) |
| (5,180 |
| ) |
| (4,725 |
| ) |
| Other expenses |
| (285 |
| ) |
| (279 |
| ) |
| (819 |
| ) |
| (848 |
| ) |
| Rental loss |
| (4 |
| ) |
| ? |
| (124 |
| ) |
| ? |
| Provision for mortgage losses |
| (390 |
| ) |
| (563 |
| ) |
| (1,190 |
| ) |
| (1,263 |
| ) |
| Income before financing costs |
| 14,294 |
| 12,973 |
| 41,866 |
| 36,630 |
| Financing costs |
| (4,359 |
| ) |
| (4,273 |
| ) |
| (13,029 |
| ) |
| (11,398 |
| ) |
| Net income and comprehensive income |
| $ |
| 9,935 |
| $ |
| 8,700 |
| $ |
| 28,837 |
| $ |
| 25,232 |
| Basic earnings per share |
| $ |
| 0.25 |
| $ |
| 0.24 |
| $ |
| 0.74 |
| $ |
| 0.72 |
| Diluted earnings per share |
| $ |
| 0.25 |
| $ |
| 0.24 |
| $ |
| 0.73 |
| $ |
| 0.71 |
| Dividends declared |
| $ |
| 8,890 |
| $ |
| 8,164 |
| $ |
| 26,409 |
| $ |
| 23,980 |
| Mortgages receivable, end of period |
| $ |
| 737,192 |
| $ |
| 654,248 |
| $ |
| 737,192 |
| $ |
| 654,248 |
| Total assets, end of period |
| $ |
| 754,301 |
| $ |
| 655,567 |
| $ |
| 754,301 |
| $ |
| 655,567 |
| Shareholders’ equity, end of period |
| $ |
| 427,558 |
| $ |
| 385,847 |
| $ |
| 427,558 |
| $ |
| 385,847 |
Analysis of mortgage portfolio
| September 30, 2019 |
| December 31, 2018 |
| Outstanding |
| % of |
| Outstanding |
| % of |
| Property Type |
| Number |
| amount |
| Portfolio |
| Number |
| amount |
| Portfolio |
| (outstanding amounts in 000s) |
| Low-rise residential |
| 34 |
| $ |
| 221,973 |
| 30.0% |
| 38 |
| $ |
| 232,713 |
| 34.0% |
| High-rise residential |
| 16 |
| 180,343 |
| 24.4% |
| 15 |
| 146,027 |
| 21.3% |
| Mid-rise residential |
| 19 |
| 145,812 |
| 19.7% |
| 20 |
| 139,708 |
| 20.4% |
| House and apartment |
| 87 |
| 60,328 |
| 8.2% |
| 101 |
| 64,230 |
| 9.4% |
| Condominium corporation |
| 14 |
| 2,755 |
| 0.4% |
| 14 |
| 2,533 |
| 0.4% |
| Residential portfolio |
| 170 |
| 611,211 |
| 82.7% |
| 188 |
| 585,211 |
| 85.5% |
| Commercial |
| 19 |
| 128,255 |
| 17.3% |
| 20 |
| 99,193 |
| 14.5% |
| Mortgage portfolio |
| 189 |
| 739,466 |
| 100.0% |
| 208 |
| 684,404 |
| 100.0% |
| September 30, 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 |
| 151 |
| $ |
| 496,083 |
| 67.1% |
| 65.8% |
| 8.88% |
| Non-GTA Ontario |
| 18 |
| 24,789 |
| 3.3% |
| 50.5% |
| 8.34% |
| Alberta |
| 4 |
| 15,356 |
| 2.1% |
| 64.3% |
| 8.80% |
| British Columbia |
| 16 |
| 203,238 |
| 27.5% |
| 50.9% |
| 8.66% |
| 189 |
| $ |
| 739,466 |
| 100.0% |
| 61.2% |
| 8.80% |
| 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 and nine month periods ended September 30, 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 Friday, November 1, 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 November 14, 2019) please call 1 (855) 859-2056, Conference ID 5389958.
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/49318