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Axis Announces Q2 2019 Results

T.AXIS

Canada NewsWire

TORONTO, March 1, 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 second quarter of fiscal 2019 ending December 31, 2018.

Axis Announces Q2 2019 Results (CNW Group/Axis Auto Finance Inc.)

HIGHLIGHTS

  • Record Adjusted Earnings1 of $2.0 million in first half 2019 compared to $0.9 million in the first half 2018;
  • Gross finance receivables of $117.2 million as at December 31, 2018;
  • Quarterly revenues of $8.1 million compared to $2.2 million in second quarter of 2018;
  • Average annualized portfolio yield in second quarter of 35.9% compared to 35.7% in fiscal 2018;
  • Annualized credit loss rate at 7.60%, compared to 7.23% in fiscal 2018;  
  • Adjusted EPS of $0.02 for the first half 2019.

Finance receivables originations for the first half of fiscal 2019 were $34.7 million, contributing to the growth in gross finance receivables, which increased to $117.2 million as at December 31, 2018 from $111.5 million at June 30, 2018.

Revenues of $8.1 million for the second quarter 2019, increased 273% from $2.2 million for the second quarter 2018, equating to an annualized revenue run-rate of $32.6 million.

Portfolio yields maintained strong levels, at 35.9% in the second quarter 2019, as compared to 35.7% in fiscal 2018.  Annualized credit loss rate were 7.60% up slightly from 7.23% in fiscal 2018.   

Adjusted earnings for the second quarter of 2019 were $0.37 million, as compared to $0.35 million in the second quarter of 2018, a 4% increase. Adjusted EPS was $0.021 for the first half 2019, quarter or approximately $0.042 on an annualized basis.

Net loss for the second quarter ending December 31, 2018 was $1.1 million or $0.012 per share, as compared to net income of $0.1 million or $0.001 per share for the comparative quarter ending December 31, 2017.

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. 

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.

View original content to download multimedia: http://www.newswire.ca/en/releases/archive/March2019/01/c3502.html



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