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Atrium Mortgage Investment Corporation Achieves Record Revenues and Net Income in 2019

Newsfile Corp.

Toronto, Ontario--(Newsfile Corp. - February 13, 2020) - 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 financial results for the year ended December 31, 2019.

Highlights

  • Record revenues of $66.2 million, up 13.5% from the prior year

  • Record net income of $38.6 million, up 14.2% from the prior year

  • $0.97 basic and $0.96 diluted earnings per share for the year ended December 31, 2019

  • $0.06 per share special dividend to shareholders of record December 31, 2019

  • Mortgage portfolio of $729.7 million, 6.6% increase from December 31, 2018

  • High quality mortgage portfolio

    • 81.9% of portfolio in first mortgages

    • 92.0% of portfolio is less than 75% loan to value

    • average loan-to-value is 59.5%

"I am pleased with our record annual revenue and net income in 2019. Our earnings per share of $0.97 matched our highest earnings since we went public in 2012. Our weighted average loan to value for the portfolio as at December 31, 2019 was only 59.5%, the lowest level in over seven years. During 2019, we completed a public offering of convertible debentures, two public offerings of shares and a non-brokered private placement of shares, all of which had very strong demand. These results are a tribute to our entire management team," said Rob Goodall, CEO of Atrium.

Interested parties are invited to participate in a conference call with management on Friday, February 14, 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. For a replay of the conference call (available until February 27, 2020) please call 1 (855) 859-2056. Conference ID 6384827.

Results of operations

Atrium ended the year with assets of $743.6 million, and revenues grew to a record $66.2 million, an increase of 13.5% from the prior year. Net income for 2019 was $38.6 million, an increase of 14.2% from the prior year.

Basic and diluted earnings per common share were $0.97 and $0.96, respectively, for the year ended December 31, 2019, compared with $0.95 basic and $0.94 diluted in the prior year.

The company had $727.3 million of mortgages receivable as at December 31, 2019, an increase of 6.5% from December 31, 2018. During the year ended December 31, 2019, $271.8 million of mortgage principal was advanced, and $238.1 million was repaid.

The weighted average interest rate on the mortgage portfolio at December 31, 2019 was 8.81%, compared to 8.85% at December 31, 2018.

Financial summary

Condensed Statements of Earnings and Comprehensive Income




  Year
ended
December 31
2019
    Year
ended
December 31
2018
    Year
ended
December 31
2017
 
Revenue $  66,171   $  58,316   $  50,359  
Mortgage servicing and management fees   (6,996 )   (6,279 )   (5,470 )
Other expenses   (1,086 )   (1,142 )   (1,251 )
Impairment loss on investment property   (806 )        
Provision for mortgage losses   (1,490 )   (1,800 )   (1,850 )
Income before financing costs   55,793     49,095     41,788  
Financing costs   (17,225 )   (15,326 )   (12,729 )
Earnings and total comprehensive income $  38,568   $  33,769   $  29,059  
                   
Basic earnings per share $  0.97   $  0.95   $  0.95  
Diluted earnings per share $  0.96   $  0.94   $  0.94  
                   
Dividends declared $  38,314   $  33,658   $  28,545  
                   
Mortgages receivable, end of year $  727,325   $  682,721   $  626,756  
Total assets, end of year $  743,631   $  699,750   $  627,859  
Shareholders’ equity, end of year $  455,520   $  387,306   $  349,064  

Analysis of mortgage portfolio


          December 31, 2019           December 31, 2018  

Mortgage amount


Number


Outstanding
amount


% of
Portfolio


Number


Outstanding
amount


% of
Portfolio

(outstanding amounts in 000s)                                    
$0 - $2,500,000   123   $  84,043     11.5%     145   $  103,128     15.1%  
$2,500,001 - $5,000,000   25     91,707     12.6%     26     98,176     14.3%  
$5,000,001 - $7,500,000   15     91,685     12.6%     8     48,118     7.0%  
$7,500,001 - $10,000,000   6     53,373     7.3%     7     61,394     9.0%  
$10,000,001 +   23     408,937     56.0%     22     373,588     54.6%  
    192   $  729,745     100.0%     208   $  684,404     100.0%  

 

          December 31, 2019              


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   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%  
          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%  

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, 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, February 14, 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. For a replay of the conference call (available until February 27, 2020) please call 1 (855) 859-2056. Conference ID 6384827.

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

Jennifer Scoffield
Chief Financial Officer

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/52422