MISSISSAUGA, ON, May 27, 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 third fiscal quarter ended March 31,
2021.
HIGHLIGHTS
- Record portfolio balance of $161.7
million in owned and managed assets, up 19% from
$136.4 million at March 31, 2020;
- A 22% year-over-year increase in Adjusted Earnings to
$1.4 million;
- A 57% year-over-year reduction in reportable delinquency to
3.43%;
- A 15% year-over-year reduction in credit losses to 9.17%;
and
- A 19% year-over-year reduction in annualized operating
expenses, expressed as a percentage of average portfolio
balances.
Originations for the third quarter of fiscal 2021 were
$26.6 million, of which $15.8 million were owned and on balance sheet and
$10.8 million were volumes managed
for Westlake Financial Services ("Westlake"). Originations
continue to be affected by the various government restrictions on
dealership operations, imposed to combat COVID.
Annualized credit losses were 9.17%, down from 10.79% in the
third quarter of fiscal 2020, representing a 15% improvement.
Further, the Company concluded the quarter with reportable
delinquency of 3.43%, a marked reduction from 7.89% at March 31, 2020.
Operating expenses in the third quarter of fiscal 2021 were down
$0.1 million to $3.9 million or an annualized run rate of 9.9% of
average owned and managed assets. That represents a 19% reduction
from 12.3% of average owned and managed assets in the comparative
quarter of fiscal 2020.
Revenues were $9.5 million, a
decrease of 5.0% year-over-year, the result of lower origination
volumes in the quarter due to the ongoing COVID related auto
dealership restrictions, most notably in Ontario and Quebec.
Adjusted earnings for the quarter was $1.4 million or $0.015 per share, as compared to $1.2 million or $0.012 per share in the third quarter of fiscal
2020. Net earnings for the quarter was $0.6 million or $0.006 per share, as compared to a net loss of
($0.7) million or ($0.007) per share in the third quarter of fiscal
2020. Adjusted shareholder equity was $42.6
million as at March 31, 2021,
or $0.44 per share.
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 over 70% 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.