Axis Announces Record Fiscal 2020 Results
TORONTO, Oct. 2, 2020 /CNW/ - Axis Auto Finance Inc. ("Axis" or the "Company"), (TSXV: AXIS) Canada's fastest growing publicly-traded sub-prime automotive finance company, today announced financial results for the fiscal year ending June 30, 2020.
HIGHLIGHTS
- Record originations of $78.7 million, up from $67.2 million in fiscal 2019;
- Record portfolio balance of $128.3 million in owned and managed assets, up from $114.7 million in 2019;
- Record revenues of $37.2 million compared to $31.9 million in 2019;
- Reportable delinquency of 4.1% at year-end, a multi-year low
- A 12% Year-over-Year reduction in operating expenses; and
- Adjusted earnings1 of $2.6 million compared to a loss of $0.5 million in 2019.
Originations for fiscal 2020 were $78.7 million, of which $65.4 million were owned and on balance sheet and $13.3 million were volumes managed for Westlake Financial. The relationship with Westlake was formed in fiscal 2020 and has allowed the Company to expand its auto financing product offering. Effected by dealership closures because of COVID-19, Axis' fourth quarter originations were down 75% quarter over quarter.
Fiscal 2020 revenues were a record $37.2 million, an increase of 16.5% over prior year, the result of portfolio growth through three quarters of the fiscal year (pre-COVID) and maintaining strong yields on newly originated finance receivables.
In fiscal 2020, Axis' owned gross finance receivables peaked at $126.7 million and ended the fiscal year at $115.9 million.
Operating expenses in fiscal 2020 reduced by $2.1 million or 12% to $16.3 million, primarily the result of efficiencies derived from the new technology platform adopted during the fiscal year.
Adjusted earnings for 2020 was $2.6 million, as compared to an Adjusted loss of $0.5 million in 2019. Net earnings (loss) for fiscal 2020 has improved by $3.2 million in the fiscal year to ($0.7) million or ($0.007) per share. Adjusted shareholder equity was $40.1 million at the end of the fiscal year, or $0.42 per share.
About Axis Auto Finance
Axis Auto Finance is a technology-driven provider of alternative used vehicle financing options servicing roughly 30% of Canadians (Source: Equifax) that have credit scores in the non-prime range. All Axis auto loans report to the credit bureau, resulting in 71% of customers seeing a significant improvement of their credit scores. These clients use Axis as a stepping-stone in their credit rebuilding journey and we are proud to be improving the lives of these Canadians. Supported by state-of-the-art, in-house developed risk analytics, Axis continues to be Canada's fastest-growing publicly traded auto-financing company. Further information on the Company can be found at https://www.axisfinancegroup.com/investors/.
1 In order to track the performance of its finance receivable portfolio in a given period without the volatility associated with estimates and assumptions, Axis uses a non-IFRS measure called Adjusted Earnings, which is defined in the MD&A. For further information on Axis' non-IFRS measures, please see the Management's Discussion and Analysis for the corresponding period. |
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither the Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Exchange) accepts responsibility for the adequacy or accuracy of this release.
SOURCE Axis Auto Finance Inc.
Axis Auto Finance Inc., Ilja Troitschanski, President, (416) 633-5626, [email protected]
Share this article