MISSISSAUGA, ON, Nov. 30, 2020 /CNW/ - Axis Auto Finance Inc.
("Axis" or the "Company"), (TSXV: AXIS) a technology-driven
alternative automotive finance company, announced record
results for the first quarter of fiscal 2021 ending September 30, 2020.
HIGHLIGHTS
- Adjusted earnings of $1.6 million
a 230% jump from $0.5 million in Q1
F2020.
- Originations of $28.3 million, up
47% from $19.3 million in Q1
2020;
- Record portfolio balance of $140.7
million in owned and managed assets, up 20% from
$117.6 million as at September 30, 2019;
- A 23% year-over-year reduction in credit losses to an
annualized rate of 8.08%
- A 18% reduction in operating expenses from Q1 2020; and
- A 35% year-over-year reduction in reportable delinquency to
3.7%
Originations for the first quarter of fiscal 2021 were
$28.3 million, of which $16.7 million were owned and on balance sheet and
$11.6 million were volumes managed
for Westlake Financial Services ("Westlake"). The gradual
re-opening of auto dealerships across Canada resulted in a 210% jump in originations
compared to the prior quarter.
Revenues were $9.4 million, an
increase of 4.8% year-over-year, the result of incremental revenues
on the Westlake managed portfolio and maintaining strong yields on
newly originated on balance sheet finance
receivables.
Annualized credit losses were 8.08% in the quarter, a marked
improvement over credit losses of 10.46% in the first quarter of
the prior year. Further, the Company concluded the
quarter with reportable delinquency of 3.67%, an additional
reduction from reportable delinquency of 4.10% reported at
June 30, 2020 and a 200 bps reduction
year-over-year.
Operating expenses in the first quarter of fiscal 2021 were down
$0.8 million or 18% to $3.8 million, the result of operating
efficiencies gained through system enhancements.
Adjusted earnings for the quarter was $1.6 million or $0.017 per share, as compared to $0.5 million or $0.005 per share in the first quarter of fiscal
2020. Net earnings for the quarter was $0.8 million or $0.008 per share, as compared to a net loss of
($0.6) million or ($0.006) per share in the first quarter of fiscal
2020. Adjusted shareholder equity was $41.2 million as at September 30, 2020, or $0.43 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-press-releases/.
Non-IFRS Measures
The Company's interim unaudited consolidated financial
statements have been prepared in accordance with International
Financial Reporting Standards ("IFRS") as issued by the
International Accounting Standards Board ("IASB") and the
accounting policies we adopted in accordance with IFRS.
The Company believes that certain Non-IFRS Measures can be
useful to investors because they provide a means by which investors
can evaluate the Company's underlying key drivers and operating
performance of the business, exclusive of certain adjustments and
activities that investors may consider to be unrelated to the
underlying economic performance of the business of a given period.
A full description of these measures can be found in the Management
Discussion & Analysis that accompanies the financial statements
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.