Axis Announces Record Revenue and Originations for Q2 Fiscal 2020
TORONTO, Feb. 27, 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 second quarter of fiscal 2020 ending December 31, 2019.
HIGHLIGHTS
- Record quarterly revenues of $9.2 million, a 13% increase over Q2 2019;
- Record quarterly originations of $20.8 million, of which $17.7 million were on balance sheet and $3.1 million were managed Westlake volumes;
- Record gross finance receivables of $120.0 million, up from $114.7 million in fiscal 2019;
- Average portfolio yield of 32.6%, in line with 33.0% in 2019; and
- Adjusted earnings 1 of $0.9 million for Q2 2020.
Total originations for the second quarter of fiscal 2020 were $20.8 million with $17.7 million on balance sheet, an increase of 8% as compared to $16.4 million in originations in the second quarter 2019, the result of penetration into new dealers in both existing and new markets for Axis.
The increase in originations, in both the first and second quarters of fiscal 2020 has contributed to the growth in gross finance receivables, which increased from $114.7 million at June 30, 2019 to $120.0 million at the end of the second quarter of fiscal 2020.
Second quarter revenues were a record $9.2 million, a 13% increase from $8.1 million for the second quarter of fiscal 2019. The increase in revenue is the result of portfolio growth and maintaining strong portfolio yields on newly originated finance receivables.
Portfolio yields in the second quarter 2020 remained strong at 32.6%, in line with both second quarter of fiscal 2019 and the full fiscal 2019, which produced yields of 33.0%.
Annualized credit losses rose from 9.41% in fiscal 2019 to 10.06% in the second quarter of fiscal 2020. Delinquency at the end of the second quarter of fiscal 2020 was 7.73%, in line with 7.37% for the comparative period in fiscal 2019.
Adjusted earnings (loss) for Q2 2020 was $0.9 million, compared to $0.4 million in Q2 2019 and ($0.5) million for fiscal 2019.
Net income (loss) for Q2 2020 was ($0.5) million or ($0.005) per share, as compared to ($1.1) million or ($0.012) per share in Q2 2019. Total shareholders' equity (book value) of the Company was $33.8 million at the end of the second quarter of fiscal 2020, or $0.35 per share. Adjusted equity was $41.3 million, or $0.43 per share.
About Axis Auto Finance
Axis Auto Finance is a leading Canadian provider of alternative used vehicle financing options servicing roughly 30% of Canadians (Source: Equifax) that have credit scores in the non-prime range. 100% of all Axis auto loans report to the credit bureau, resulting in a significant improvement of the credit scores for the overwhelming majority of clients. 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 investors.axisautofinance.ca/.
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 introduced a non-IFRS measure called Adjusted Earnings. This measure, now included in the MD&A, is equal to the net income (loss) for the period, adjusted for (i) non-cash expense items (as identified in the Statement of Cash Flows) (ii) actual credit losses incurred (iii) non-recurring one time transaction and integration costs (iv) occupancy related lease costs not included in general and administrative expenses and (v) specified expenses which were entirely recognized in a given quarter but for which the benefit was derived over more than a given quarter. 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]
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