AMIVF - Atrium Mortgage Investment Corporation Achieves Record Revenues and Net Income in 2018
Toronto, Ontario--(Newsfile Corp. - February 13, 2019) - Atrium Mortgage Investment Corporation (TSX: AI) (TSX: AI.DB) (TSX: AI.DB.A) (TSX: AI.DB.B) (TSX: AI.DB.C) (TSX: AI.DB.D) today released its financial results for the year ended December 31, 2018.
Highlights
- Record revenues of $58.3 million, up 15.8% from prior year
- Record net income of $33.8 million, up 16.2% from prior year
- $0.95 basic and $0.94 diluted earnings per share for the year ended December 31, 2018
- $0.04 per share special dividend to shareholders of record December 31, 2018
- $0.94 total dividends per share paid to shareholders in 2018
- Mortgage portfolio increased to $684.4 million, 8.2% increase from prior year
- High quality mortgage portfolio
- 84.1% of portfolio in first mortgages
- 88.6% of portfolio is less than 75% loan to value
- average loan-to-value is 61.1%
"2018 was another good year for Atrium and represented a sixth consecutive year of portfolio growth and record income. We ended the year with a mortgage portfolio balance of $684.4 million, up 8.2% from the beginning of the year and up 3.3% from Q3 2018. We had annual revenue of $58.3 million and net income of $33.8 million. We increased our weighted average interest rate from 8.44% in 2017 to 8.85% at the end of this year. Notwithstanding those impressive results, we continued our practice of lending conservatively, with an average portfolio loan to value of 61.1%. We would like to thank our new and existing shareholders for the strong demand on the recent public offering of our common shares completed on February 8, 2019. We will continue to work hard to earn your continued support," said Rob Goodall, CEO of Atrium.
"We are proud to state that Atrium continues to be regarded as Canada's premier non-bank lenderâ„¢."
Interested parties are invited to participate in a conference call with management on Thursday, February 14, 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 February 27, 2019) please call 1 (855) 859-2056, Conference ID 4959418.
Results of operations
Atrium ended the year with assets of $699.8 million, and revenues grew to a record $58.3 million, an increase of 15.8% from the prior year. Net income for 2018 was $33.8 million, an increase of 16.2% from the prior year.
Basic and diluted earnings per common share were $0.95 and $0.94, respectively, for the year ended December 31, 2018, compared with $0.95 basic and $0.94 diluted earnings per common share in the prior year.
The company had $682.7 million of mortgages receivable as at December 31, 2018, an increase of 8.9% from December 31, 2017. During the year, $306.0 million of mortgages were advanced, and $240.4 million of mortgages were repaid.
The weighted average interest rate on the mortgage portfolio increased to 8.85% at December 31, 2018, compared with 8.44% at December 31, 2017.
Financial summary
Condensed Statements of Earnings and Comprehensive Income
| Year ended December 31, 2018 |
| Year ended December 31, 2017 |
| Year ended December 31, 2016 |
| Revenue |
| $ 58,316 |
| $ 50,359 |
| $ 44,042 |
| Mortgage servicing and management fees |
| (6,279) |
| (5,470) |
| (4,661) |
| Other expenses |
| (1,142) |
| (1,251) |
| (1,221) |
| Provision for mortgage losses |
| (1,800) |
| (1,850) |
| (1,519) |
| Income before financing costs |
| 49,095 |
| 41,788 |
| 36,641 |
| Financing costs |
| (15,326) |
| (12,729) |
| (10,521) |
| Earnings and total comprehensive income |
| $ 33,769 |
| $ 29,059 |
| $ 26,120 |
| Basic earnings per share |
| $ 0.95 |
| $ 0.95 |
| $ 0.97 |
| Diluted earnings per share |
| $ 0.94 |
| $ 0.94 |
| $ 0.95 |
| Dividends declared |
| $ 33,658 |
| $ 28,545 |
| $ 25,918 |
| Mortgages receivable, end of year |
| $ 682,721 |
| $ 626,756 |
| $ 530,590 |
| Total assets, end of year |
| $ 699,750 |
| $ 627,859 |
| $ 531,856 |
| Shareholder’ equity, end of year |
| $ 387,306 |
| $ 349,064 |
| $ 278,540 |
Analysis of mortgage portfolio
(dollars in 000s)
| December 31, 2018 |
| December 31, 2017 |
| Property type |
| Number |
| Outstanding amount |
| % of Portfolio |
| Number |
| Outstanding amount |
| % of Portfolio |
| Low-rise residential |
| 38 |
| $ 232,713 |
| 34.0% |
| 39 |
| $ 256,581 |
| 40.6% |
| High-rise residential |
| 15 |
| 146,027 |
| 21.3% |
| 10 |
| 81,939 |
| 13.0% |
| Mid-rise residential |
| 20 |
| 139,708 |
| 20.4% |
| 6 |
| 37,071 |
| 5.9% |
| House and apartment |
| 101 |
| 64,230 |
| 9.4% |
| 120 |
| 86,287 |
| 13.6% |
| Condominium corporation |
| 14 |
| 2,533 |
| 0.4% |
| 14 |
| 2,887 |
| 0.4% |
| Residential portfolio |
| 188 |
| 585,211 |
| 85.5% |
| 189 |
| 464,765 |
| 73.5% |
| Commercial |
| 20 |
| 99,193 |
| 14.5% |
| 27 |
| 167,622 |
| 26.5% |
| Mortgage portfolio |
| 208 |
| 684,404 |
| 100.0% |
| 216 |
| 632,387 |
| 100.0% |
| December 31, 2018 |
| 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 |
| 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% |
| December 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 |
| 159 |
| $ 397,293 |
| 62.8% |
| 62.5% |
| 8.51% |
| Non-GTA Ontario |
| 35 |
| 26,383 |
| 4.2% |
| 65.9% |
| 8.54% |
| Saskatchewan |
| 2 |
| 17,107 |
| 2.7% |
| 100.0% |
| 8.06% |
| Alberta |
| 5 |
| 22,518 |
| 3.6% |
| 59.4% |
| 8.87% |
| British Columbia |
| 15 |
| 169,086 |
| 26.7% |
| 54.7% |
| 8.24% |
| 216 |
| $ 632,387 |
| 100.0% |
| 61.5% |
| 8.44% |
For further information on the financial results, and further analysis of the company's mortgage portfolio, please refer to Atrium's consolidated financial statements and its management's discussion and analysis for the year ended December 31, 2018, 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, February 14, 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 February 27, 2019) please call 1 (855) 859-2056, Conference ID 4959418.
About Atrium
Canada's Premier Non-Bank Lenderâ„¢
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
Jennifer Scoffield
Chief Financial Officer
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