November 24, 2021 – Toronto, Ontario – Axis Auto Finance Inc. (“Axis” or the “Company”) (TSXV: AXIS), a financial technology company changing the way Canadians buy and finance used vehicles, announced record results for the first quarter of fiscal 2022, ending September 30, 2021.
• Record Adjusted Earnings of $1.8 million, an 11% year-over-year increase;
• Record portfolio balance of $185.1 million in owned and managed assets, up 32% year-over-year;
• Record auto loan originations of $31.9 million, a 13% increase over Q1 F2021;
• A 9% year-over-year reduction in credit losses to 7.34%;
• A 17% year-over-year reduction in reportable delinquency to 3.04%.
Auto loan originations in the quarter were $31.9 million, of which $18.1 million were owned and on balance sheet and $13.8 million were loans managed for Westlake Financial Services (“Westlake”). Axis’ total owned and managed portfolio assets rose to $185.1 million, consisting of $130.3 million of on balance sheet assets and $54.8 million in Westlake managed assets. Revenues for the quarter were $9.9 million, an increase of 6% year-over-year.
Annualized credit losses were 7.34%, down from 8.08% in the first quarter of fiscal 2021. Further, the Company concluded the quarter with reportable delinquency of 3.04%, a notable reduction from 3.67% as at September 30, 2020.
Adjusted earnings for the quarter was $1.8 million or $0.018 per share, as compared to $1.6 million or $0.017 per share for Q1 2021. Net income for the quarter was $0.7 million or $0.007 per share, as compared to net income of $0.8 million or $0.008 per share in the first quarter of fiscal 2021. Adjusted shareholder equity was $44.3 million as at September 30, 2021, or $0.45 per share.
Normal Course Issuer Bid
The Company also announced today that the TSX Venture Exchange (the “TSXV”) has accepted the Company’s Notice of Intention to implement a normal course issuer bid (the “NCIB”). Pursuant to the NCIB, the Company may, during the 12-month period commencing November 26, 2021 and ending November 25, 2022, purchase up to 6,907,562 common shares of the Company (“Common Shares”), being 10% of the public float of the Company. The actual number of Common Shares purchased pursuant to the NCIB and the timing of any purchases will be determined by management and the board of directors of the Company. The NCIB will be conducted through Canaccord Genuity Corp., a member of the TSXV, and made in accordance with the policies of the TSXV.
Axis believes that from time to time, the market price of the Common Shares may not reflect their underlying or intrinsic value and that, at such times, the purchase of Common Shares for cancellation will increase the proportionate interest of, and be advantageous to, all remaining holders of Common Shares.
As of the date hereof, there are 128,381,595 Common Shares issued and outstanding. Axis, through its broker at Cannacord Genuity Corp., will purchase the Common Shares on the open market thought the facilities of the TSXV. The price which Axis will pay for any Common Shares purchased will be the prevailing market price of such Common Shares on the TSXV at the time of purchase. All Common Shares purchased pursuant to the NCIB will be returned to treasury for cancellation. The NCIB will terminate on the earlier of: (i) one year from inception; or (ii) when permitted purchases thereunder are completed. Axis may otherwise elect to terminate the NCIB at any time.
A copy of the Form 5G – Notice of Intention to make a Normal Course Issuer Bid filed by the Company with the TSXV can be obtained from the Company upon request without charge.
About Axis Auto Finance
Axis is a financial technology company changing the way Canadians buy and finance used vehicles. Through our direct-to-consumer portal, DriveAxis.ca, customers can choose their next used vehicle, arrange financing and get the car delivered to their home. Through its indirect loan origination channels, Axis continues to provide 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 Equifax, resulting in over 70% of customers seeing a significant improvement of their credit scores. Further information on the Company can be found at https://www.axisfinancegroup.com/investors-press-releases/.
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.