TORONTO, Nov. 24, 2021 /CNW/ - 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.
HIGHLIGHTS
- 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%;
and
- 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/.
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.