AMIVF - Atrium Mortgage Investment Corporation Announces Second Quarter Results

July, 29 2020 05:01 PM Atrium Mortgage Investment Corp

Toronto, Ontario--(Newsfile Corp. - July 29, 2020) - Atrium Mortgage Investment Corporation (TSX: AI) (TSX:AI.DB.B) (TSX: AI.DB.C) (TSX: AI.DB.D) (TSX: AI.DB.E) today released its financial results for the three and six month periods ended June 30, 2020.

Highlights

Quarterly revenues of $16.2 million, down 2.0% from the second quarter of the prior year
Quarterly net income of $9.8 million, up 1.6% from the second quarter of the prior year
$0.23 basic and diluted earnings per share for the quarter
$0.47 basic and diluted earnings per share year-to-date
Mortgage portfolio of $679.96 million, 6.8% decrease from December 31, 2019
High quality mortgage portfolio
- 85.4% of portfolio in first mortgages
- 93.9% of portfolio is less than 75% loan to value
- average loan-to-value is 59.0%

"We are pleased with the second quarter results which exceeded our quarterly dividend, even after taking another $1.0 million loan loss provision. Atrium now has an aggregate loan loss provision exceeding 1.0% of our mortgage portfolio which will help protect our balance sheet from the impact of COVID 19. The increase in our loan loss provision is consistent with the actions of the major Canadian and US banks.

In Q2, we also executed on our strategy to scale back lending in order to increase our liquidity and be in a position to cautiously resume lending as the real estate market emerges from the downturn. As a result, we expect that Q3 will be a more active quarter for new mortgages," said Rob Goodall, CEO of Atrium.

Interested parties are invited to participate in a conference call with management Friday, July 30, 2020 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, conference ID 7681038. For a replay of the conference call (available until August 12, 2020) please call 1 (855) 859-2056, conference ID 7681038.

Results of operations

Atrium ended its second quarter of 2020 with assets of $691.7 million, and revenues of $16.2 million, a decrease of 2.0% from the second quarter of the prior year. Net income for the second quarter of 2020 was $9.8 million, an increase of 1.6% from the second quarter of the prior year.

Basic and diluted earnings per common share were $0.23, for the three month period ended June 30, 2020, compared with $0.25 basic and $0.24 diluted earnings per common share for the comparable quarter in the prior year.

Revenue for the six months ended June 30, 2020 was $33.3 million, an increase of 3.0% from the prior year. Net income for the six months ended June 30, 2020 was $19.7 million, an increase of 4.1% from the prior year. Basic and diluted earnings per common share were $0.47 for the six months ended June 30, 2020, compared with $0.49 basic and $0.48 diluted earnings per common share for the six months ended June 30, 2019.

Atrium had $675.3 million of mortgages receivable as at June 30, 2020, a decrease of 7.1% from December 31, 2019. During the six month period ended June 30, 2020, $97.1 million of mortgage principal was advanced, and $140.8 million was repaid.

The weighted average interest rate on the mortgage portfolio at June 30, 2020 was 8.55%, compared to 8.81% at December 31, 2019.

As at July 28, 2020, the company had collected 96% of the mortgage interest due in July, which is in line with historical collection rates.

Financial summary

Interim Consolidated Statements of Income and Comprehensive Income
(Unaudited, 000s, except per share amounts)



Three months ended


Six months ended



June 30


June 30



2020


2019


2020


2019

Revenue
$
16,241

$
16,565

$
33,298

$
32,343

Mortgage servicing and management fees

(1,700
)

(1,757
)

(3,477
)

(3,437
)
Other expenses

(335
)

(265
)

(684
)

(534
)
Provision for mortgage losses

(1,000
)

(400
)

(2,000
)

(800
)
Income before financing costs

13,206


14,143


27,137


27,572

Financing costs

(3,385
)

(4,476
)

(7,452
)

(8,670
)
Net income and comprehensive income
$
9,821

$
9,667

$
19,685

$
18,902














Basic earnings per share
$
0.23

$
0.25

$
0.47

$
0.49

Diluted earnings per share
$
0.23

$
0.24

$
0.47

$
0.48














Dividends declared
$
9,536

$
8,870

$
19,040

$
17,518














Mortgages receivable, end of period
$
675,339

$
733,852

$
675,339

$
733,852

Total assets, end of period
$
691,705

$
751,060

$
691,705

$
751,060

Shareholders' equity, end of period
$
463,068

$
425,306

$
463,068

$
425,306

Analysis of mortgage portfolio



June 30, 2020


December 31, 2019






Outstanding


% of





Outstanding


% of

Property Type

Number


amount


Portfolio


Number


amount


Portfolio

(outstanding amounts in 000s)


















Low-rise residential

28

$
190,639


28.0%


32

$
216,144


29.6%

High-rise residential

17


170,270


25.0%


15


174,544


23.9%

Mid-rise residential

20


142,668


21.0%


21


160,456


22.0%

House and apartment

74


49,618


7.3%


91


66,083


9.1%

Condominium corporation

14


2,461


0.4%


14


2,659


0.4%

Residential portfolio

153


555,656


81.7%


173


619,886


85.0%

Commercial

20


124,299


18.3%


19


109,859


15.0%

Mortgage portfolio

173


679,955


100.0%


192


729,745


100.0%



June 30, 2020












Weighted


Weighted



Number of


Outstanding


Percentage


average


average

Location of underlying property

mortgages


amount


outstanding


loan to value


interest rate

Greater Toronto Area

132

$
473,288


69.6%


61.6%


8.52%

Non-GTA Ontario

23


23,475


3.4%


64.4%


8.30%

Alberta

3


15,437


2.3%


76.6%


8.81%

British Columbia

15


167,755


24.7%


49.2%


8.59%



173

$
679,955


100.0%


59.0%


8.55%




December 31, 2019













Weighted


Weighted




Number of


Outstanding


Percentage


average


average

Location of underlying property


mortgages


amount


outstanding


loan to value


interest rate

Greater Toronto Area


153

$
509,299


69.8%


64.1%


8.85%

Non-GTA Ontario


20


20,625


2.8%


57.6%


8.33%

Alberta


4


15,141


2.1%


64.0%


8.80%

British Columbia


15


184,680


25.3%


46.9%


8.77%




192

$
729,745


100.0%


59.5%


8.81%

For further information on the financial results, and further analysis of the company's mortgage portfolio, please refer to Atrium's interim consolidated financial statements and its management's discussion and analysis for the three and six months ended June 30, 2020, available on SEDAR at www.sedar.com, and on the company's website at www.atriummic.com.

Conference call

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 Office
(416) 867-1053
info@atriummic.com
www.atriummic.com

Jennifer Scoffield
Chief Financial Officer

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/60764

Company Name:	Atrium Mortgage Investment Corp
Stock Symbol:	AMIVF
Market:	OTC
Website:	atriummic.com

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