September 16, 2021 – Mississauga, Ontario – Axis Auto Finance Inc. (“Axis” or the “Company”), (TSXV: AXIS) a fintech lender servicing the alternative auto finance market, announced record results for the fiscal year ended June 30, 2021.
HIGHLIGHTS
• Record Adjusted Earnings of $6.0 million, a 136% year-over-year increase from fiscal 2020;
• Record originations of $115.2 million, a 46% increase from $78.7 million in fiscal 2020;
• Record portfolio balance of $171.8 million in owned and managed assets, up 34% from $128.3 million at June 30, 2021;
• A 37% year-over-year reduction in reportable delinquency to 2.6%;
• A 23% year-over-year reduction in credit losses to 9.06%; and
• A 21% year-over-year reduction in annualized operating expenses, expressed as a percentage of average portfolio balances.
Originations for fiscal 2021 were $115.2 million, of which $75.0 million were owned and on balance sheet and $40.2 million were volumes managed for Westlake Financial Services (“Westlake”). Axis’ total owned and managed portfolio assets peaked at $171.8 million, consisting of $126.7 million of on balance sheet assets and $45.1 million in Westlake managed assets. Revenues were $38.4 million, an increase of 3% year-over-year.
Annualized credit losses were 9.06%, down from 11.77% in fiscal 2020, representing a 23% improvement. Further, the Company concluded fiscal 2021 with reportable delinquency of 2.6%, a marked reduction from 4.1% in fiscal 2020.
Operating expenses in fiscal 2021 were down $0.9 million, to $15.4 million, equal to 10.2% of average owned and managed assets. This represents a 21% reduction from 13.0% of average owned and managed assets in fiscal 2020.
Adjusted earnings for fiscal 2021 were $6.0 million or $0.062 per share, as compared to $2.6 million or $0.026 per share in fiscal 2020. Net earnings for fiscal 2021 was $2.3 million or $0.024 per share, as compared to a net loss of ($0.7) million or ($0.007) per share in fiscal 2020. Adjusted shareholder equity was $43.2 million as at June 30, 2021, or $0.44 per share.