February 25, 2021 – Mississauga, Ontario – Axis Auto Finance Inc. (“Axis” or the “Company”), (TSXV: AXIS) a fintech lender servicing the alternative auto finance market, announced record results for the second quarter of fiscal 2021 ending December 31, 2020.
HIGHLIGHTS
- Adjusted earnings of $1.5 million a 71% increase from $0.9 million in Q2 F2020.
- Originations of $30.3 million, up 46% from $20.8 million in Q2 2020;
- Record portfolio balance of $152.9 million in owned and managed assets, up 24% from $123.1 million at December 31, 2019;
- A 56% year-over-year reduction in reportable delinquency to 3.38%; and
- A 14% reduction in operating expenses from Q2 2020.
Originations for the second quarter of fiscal 2021 were $30.3 million, of which $21.3 million were owned and on balance sheet and $9.0 million were volumes managed for Westlake Financial Services (“Westlake”).
Revenues were $9.6 million, an increase of 4.4% year-over-year, the result of incremental revenues on the Westlake managed portfolio and portfolio growth of Axis’ on balance sheet finance receivables.
Annualized credit losses were 9.88% in the quarter, up slightly from 9.66% in the second quarter of fiscal 2020. Further, the Company concluded the quarter with reportable delinquency of 3.38%, another quarter over quarter reduction in reportable delinquency, which was 3.67% at September 30, 2020.
Operating expenses in the second quarter of fiscal 2021 were down $0.6 million or 14% to $3.8 million, the result of operating efficiencies gained through system enhancements.
Adjusted earnings for the quarter was $1.5 million or $0.015 per share, as compared to $0.9 million or $0.009 per share in the second quarter of fiscal 2020. Net earnings for the quarter was $0.4 million or $0.004 per share, as compared to a net loss of ($0.5) million or ($0.005) per share in the second quarter of fiscal 2020. Adjusted shareholder equity was $41.9 million at December 31, 2020, or $0.43 per share.
Options extension
The Board of Directors approved an extension of previously granted 1,824,000 options by an additional 36 months from the original expiry date. The options were granted to 5 employees and an advisor to the Company. The TSX Venture exchange has approved the extension.
À Propos d’Axis Auto Finance
Axis Auto Finance is a fintech lender providing alternative used vehicle financing options to 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.
Axis Auto Finance Inc.
Ilja Troitschanski
President
(416) 633-5626
ir@axisautofinance.com