TORONTO, Oct. 18, 2019 /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, 2019.
The 2019 fiscal year results covered the full twelve months of
operations, including the acquired entities of Cars on Credit
Financial Inc. ("COCF") and Trend Financial Corp.
("Trend") while the fiscal 2018 comparative year included
only the post acquisition period, which covered five and three
months of COCF and Trend operations, respectively.
HIGHLIGHTS
- Record originations of $67.2
million, up from $30.2 million
in fiscal 2018;
- Gross finance receivables of $114.7
million, up from $111.5
million in 2018;
- Record revenues of $31.9 million
compared to $15.8 million in
2018;
- Average portfolio yield of 35.9%, up from 35.7% in 2018;
and
- Reportable delinquency of 4.7%, down from 5.4% in 2018.
Originations for fiscal 2019 were $67.2
million, as compared to $30.2
million in 2018, the result of increased penetration in
existing markets and expanding into new markets to create a
national platform.
The increase in originations contributed to the growth in gross
finance receivables, which increased to $114.7 million at June 30,
2019 from $111.5 million in
fiscal 2018.
Fiscal 2019 revenues of $31.9
million increased 102% from $15.8
million in fiscal 2018, the result of a full year of
combined operations across all acquired entities, portfolio growth
and steadily increasing portfolio yields. Portfolio yields
increased year over year, achieving an average yield of 35.9% in
fiscal 2019, as compared to 35.7% in fiscal 2018.
Annualized credit losses rose from 7.2% in fiscal 2018 to 10.3%
in fiscal 2019. The increase in the loss rate is the result
of higher default rates and higher severity of loss.
Adjusted earnings (loss) for 2019 was ($0.5) million, as compared to $2.8 million in 2018.
Net income (loss) for fiscal 2019 was ($3.9) million or ($0.040) per share, as compared to ($3.7) million or ($0.056) per share for fiscal 2018. Book
value of the Company was $33.9
million at the end of the fiscal year, or $0.35 per share.
About Axis Auto Finance
Axis provides non-standard financing options targeting roughly
30% of Canadians (Source: Equifax) that do not qualify for
traditional bank-type financing for their used vehicle purchase.
Through personalized service and a commitment to building strong,
long-lasting relationships with dealer partners, Axis continues to
be one of Canada's fastest-growing
auto-financing companies.
Further information on the Company can be found at
www.axisautofinance.com.
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 and (iv) 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.
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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.