Yahoo Finance Builders Capital Mortgage Corp. Releases Annual Financial Statements; Reports Strong Results for 2022
Increasing market activity creates full capital utilization and drives higher profits.
Calgary, Alberta--(Newsfile Corp. - April 18, 2023) - Builders Capital Mortgage Corp. (TSXV: BCF) ("Builders Capital" or "the Company") announced today the release of its annual report and financial results for the year ending December 31, 2022.
Highlights include:
Fourth quarter 2022 results were underpinned by strong utilization across our assets, reflecting the continued high demand for our services.
Consistent with our targeted distribution plan and our dividend history since inception, dividend payments of $0.80 per share were paid to Class A shareholders in 2022.
Total comprehensive income grew to $2.7 million, up 16.2% year-over-year.
Assets held for sale were successfully reduced by 32% and now represent only 4.1% of shareholders' equity.
Geographic diversity of our portfolio was further enhanced with continued growth in the BC market and our recent expansion into Nova Scotia.
The net mortgage portfolio grew to represent 117% of Shareholders' equity at year-end.
In commenting on these results, Sandy Loutitt, President of Builders Capital, stated:
"Builders Capital is happy to release its year end results for 2022, and we are particularly happy with the level of success on display in that financial report, both in terms of the return on capital that the Company has been able to deliver to shareholders and the general business success our management team has been able to engineer over the course of a period that was, on a number of levels, quite challenging."
"Despite ongoing inflationary and recession concerns on macro-economic levels, the business environment in which Builders Capital operates has responded very positively to the form and style of services that we provide. While other lenders may be withdrawing or limiting their exposure, the ability of our Company to maintain direct and tight control of funding applications, plus the widened geographic sphere of activity that we have developed, has created an operating environment that is both robust and insulated from certain of the risks to which others may be exposed. That our lending book currently remains fully utilized - with a number of other eligible clients waiting in the wings - speaks to the depth to which we have been able to penetrate the construction financing market with our model."
"Relative to that market, we continue to expect strong demand for housing and elevated levels of household creation to keep the local and regional construction industry very active, even if home prices and sales volumes cool. And, as we reported previously, with interest rates rising across the market, we have responded accordingly and begun quoting higher rates for new mortgages. We are currently advancing on some of these new higher rate loans which are already contributing to an increase in returns which we expect to continue for the balance of the year."
Financial Overview
Year ended | Year ended | Year ended | Year ended | |
Revenues | 3,758,973 | 3,061,163 | 3,230,735 | 2,921,678 |
Total comprehensive earnings | 2,708,179 | 2,330,023 | 2,124,919 | 1,445,634 |
Net mortgages receivable, end of period | 34,134,123 | 28,405,141 | 24,274,040 | 22,340,692 |
Total assets | 35,720,048 | 30,518,304 | 27,352,266 | 27,152,829 |
Shareholders' equity | 29,269,826 | 26,887,779 | 26,816,558 | 26,554,715 |
Earnings per share | 0.92 | 0.80 | 0.72 | 0.50 |
Cash dividends declared | 2,632,467 | 2,258,802 | 2,047,833 | 2,061,004 |
Cash dividends declared per Class A share | 0.80 | 0.80 | 0.80 | 0.80 |
Cash dividends declared per Class B share | 1.07 | 0.72 | 0.48 | 0.53 |
A more detailed discussion of the Company's financial results can be found in Builders Capital's Fiscal 2022 Financial Statements and Management's Discussion and Analysis, which has been posted on the Company's website (www.builderscapital.ca) and filed on SEDAR (www.sedar.com).
About Builders Capital
Builders Capital is a mortgage lender providing short-term course-of-construction financing to builders of residential, wood-frame properties in Western Canada. The Company commenced active operations on December 12, 2013 on the closing of its initial public offering, whereupon it acquired a portfolio of mortgages from two predecessor companies.
Builders Capital's investment objective is to generate attractive returns, relative to risk, in order to provide stable and consistent distributions to shareholders while remaining focused on capital preservation and satisfying the criteria mandated for mortgage investment corporations ("MIC") as defined in the Income Tax Act.
As an MIC, Builders Capital is not subject to income tax provided that it distributes all of its taxable income as dividends to shareholders within 90 days of its December 31st year-end. Such dividends are generally treated by shareholders as interest income, so that each shareholder is in the same tax position as if their proportionate share of mortgage investments made by the company had been made directly by the shareholder.
Forward-Looking Information
This news release contains forward-looking statements within the meaning of applicable securities legislation, including statements with respect to management's beliefs, estimates and intentions, and similar statements concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "expect", "intent", "estimate", "anticipate", "believe", "should", "plans" or "continue" or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. These statements are not guarantees of future performance and are based on estimates and assumptions that are subject to risks and uncertainties which could cause actual results to differ materially from the forward-looking statements contained in this news release. These include, among other things, risks associated with mortgage lending, competition for mortgage lending, real estate values, interest rate fluctuations, environmental matters and the general economic environment. The company cautions that the foregoing list is not exhaustive, as other factors could adversely affect its results, performance or achievements. Readers are cautioned against undue reliance on any forward-looking statements. Although the forward-looking information contained in this news release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Except as required by applicable law, Builders Capital undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
For more information, please contact:
John Strangway CPA, CA, Chief Financial Officer
Telephone: (403) 685-9888
Email: jstrangway@builderscapital.ca
Website: www.builderscapital.ca
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/162923
