Atrium Mortgage Investment Corporation Generates 8.9% Increase in Earnings Over Previous Quarter, Record Earnings of $5.3 Mil...
25 July 2014 - 7:03AM
Atrium Mortgage Investment Corporation (TSX:AI) (TSX:AI.DB)
(TSX:AI.DB.A) today released its financial results for the three
and six month periods ended June 30, 2014.
Highlights
- Earnings up 8.9% over previous quarter to $5.3
million
- $0.23 earnings per share for the quarter – 4.5%
increase over previous year
- $0.46 earnings per share year-to-date – 9.5% increase
over previous year
- Mortgages increased to $382 million, 36% increase over
two quarters
- High quality mortgage portfolio
- 86.7% first mortgages
- 96.1% of loan portfolio is less than 75% loan to
value
- Continued focus on lower risk real estate
sectors
"We are delighted to report continued strong growth of our
mortgage portfolio and earnings" noted Robert Goodall, CEO of
Atrium. He continued, "Our strategy of focusing on quality loans
with long-term customers has resulted in us achieving record
earnings and a high quality portfolio consisting of 87% first
mortgages."
Interested parties are invited to participate in a conference
call with management on Friday, July 25, 2014 at 9:00 a.m. EDT.
Please refer to the call-in information at the end of this news
release.
Results of operations
For the three months ended June 30, 2014, mortgage interest and
fees aggregated $8.3 million, compared to $5.8 million in the
comparative period, an increase of 41.9%. The weighted average
interest rate on our mortgage portfolio stayed constant at 8.7% at
June 30, 2014, the same as it was at December 31, 2013. Operating
expenses, excluding the provision for mortgage losses, for the
three months ended June 30, 2014 were $1.0 million, or 12.5% of
revenues, compared to $0.8 million or 13.4% of revenues in the
comparative period. Net earnings for the three months ended June
30, 2014 aggregated $5.3 million, an increase of 15.3% from net
earnings of $4.6 million in the comparative quarter. Basic and
diluted earnings per common share were $0.23, for the period ended
June 30, 2014, compared with basic and diluted earnings of $0.22
per common share for the comparative period in June 30, 2013.
For the six months ended June 30, 2014, mortgage interest and
fees aggregated $15.9 million, compared to $10.9 million in the
comparative period, an increase of 45.8%. Operating expenses,
excluding the provision for mortgage losses, for the six months
ended June 30, 2014 were $2.0 million, or 12.6% of revenues,
compared to $1.6 million or 14.2% of revenues in the comparative
period. Net earnings for the six months ended June 30, 2014
aggregated $10.1 million, an increase of 15.4% from net earnings of
$8.8 million in the comparative quarter. Basic and diluted earnings
per common share were $0.46, for the six months ended June 30,
2014, compared with basic and diluted earnings of $0.42 and $0.41,
respectively, per common share for the comparable period in the
previous year.
Mortgage portfolio
Atrium's mortgage portfolio consist of 160 mortgage loans and
aggregated $382 million at June 30, 2014, an increase of 35% from
December 31, 2013.
|
June 30,
2014 |
December 31,
2013 |
|
|
Outstanding |
% of |
|
Outstanding |
% of |
Mortgage
category |
Number |
amount |
Portfolio |
Number |
amount |
Portfolio |
Commercial/mixed use |
34 |
$142,408,500 |
37.3% |
27 |
$ 89,475,297 |
31.7% |
House and apartment |
73 |
83,476,846 |
21.8% |
59 |
69,484,828 |
24.6% |
Low-rise residential |
17 |
70,860,143 |
18.5% |
17 |
58,465,947 |
20.7% |
Construction |
14 |
37,988,213 |
9.9% |
9 |
22,093,399 |
7.8% |
High-rise residential |
5 |
33,565,786 |
8.9% |
5 |
32,966,568 |
11.7% |
Mid-rise residential |
6 |
11,602,698 |
3.0% |
3 |
7,440,000 |
2.6% |
Condominium corporation |
11 |
2,336,114 |
0.6% |
11 |
2,433,526 |
0.9% |
Mortgage portfolio |
160 |
382,238,300 |
100% |
131 |
282,359,565 |
100% |
|
|
|
|
|
|
|
Accrued interest receivable |
|
1,965,091 |
|
|
1,562,173 |
|
Mortgage discount |
|
(252,802) |
|
|
(338,480) |
|
Mortgage origination fees |
|
(925,097) |
|
|
(724,452) |
|
Provision for mortgage losses |
|
(1,146,715) |
|
|
(1,150,667) |
|
Mortgage receivable |
|
$381,878,777 |
|
|
$281,708,139 |
|
|
|
|
|
|
|
We actively manage the exposure of our mortgage portfolio, and
continued to shift our mortgage portfolio towards lower risk
sectors in 2014: commercial/mixed use, single family homes and
apartments, and low rise residential, which together comprised
77.6% of our mortgage portfolio at June 30, 2014, an increase of
0.6 percentage points since December 31, 2013.
A summary of mortgages by size is presented below.
|
June 30,
2014 |
December 31,
2013 |
|
|
Outstanding |
% of |
|
Outstanding |
% of |
Mortgage amount |
Number |
amount |
Portfolio |
Number |
amount |
Portfolio |
$0 -- $2,500,000 |
116 |
$ 111,325,283 |
29.1% |
95 |
$ 98,811,649 |
35.0% |
$2,500,001 -- $5,000,000 |
25 |
88,846,996 |
23.3% |
24 |
81,089,475 |
28.7% |
$5,000,001 -- $7,500,000 |
6 |
40,253,160 |
10.5% |
7 |
46,820,000 |
16.6% |
$7,500,001 + |
13 |
141,812,861 |
37.1% |
5 |
55,638,441 |
19.7% |
|
160 |
$382,238,300 |
100.0% |
131 |
$282,359,565 |
100.0% |
As of June 30, 2014 the average outstanding mortgage balance was
$2.4 million (December 31, 2013 – $2.2 million), and the median
outstanding mortgage balance was $1.4 million (December 31, 2013 –
$1.4 million).
Further information
For further details please refer to Atrium's financial
statements for the three and six month periods ended June 30, 2014,
and its management's discussion and analysis for the same period,
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, July 25, 2014 at 9:00 a.m. EDT. To
participate or listen to the conference call live, please call 1
(866) 222-0265 or (416) 640-5942. For a replay of the conference
call (available until August 10, 2014) please call 1 (866)
245-6755, Passcode 706248.
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 Income Tax Act. Accordingly, Atrium 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, please refer to regulatory
filings available at www.sedar.com or Atrium's website at
www.atriummic.com.
CONTACT: For additional information, please contact
Robert G. Goodall
President and Chief Executive Officer
Jeffrey D. Sherman
Chief Financial Officer
(416) 607-4200
ir@atriummic.com
www.atriummic.com
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