MISSISSAUGA, ON, Feb. 25, 2021 /CNW/ - 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.
About 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.
SOURCE Axis Auto Finance Inc.