Axis Announces Q3 2019 Results

TORONTO, May 31, 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 third quarter of fiscal 2019 ending March 31, 2019.

HIGHLIGHTS

• Gross finance receivables of $112.6 million as at March 31, 2019, up from $60.3 million as at March 31, 2018;
• Quarterly revenues of $7.5 million compared to $3.5 million in the third quarter of 2018;
• Average annualized portfolio yield in third quarter of 35.7%, no change from fiscal 2018;
• Annualized credit losses rose by 2.96% as compared to the third quarter 2018; and
• Reportable delinquency of 5.66% as at March 31, 2019, down from 7.37% as at December 31, 2018.  

Finance receivables originations for the nine months ended March 31, 2019 were $48.3 million, contributing to the growth in gross finance receivables, which increased to $112.6 million as at March 31, 2019 from $60.3 million as at March 31, 2018.

Revenues of $7.5 million for the third quarter 2019, increased 116% from $3.5 million for the third quarter 2018, equating to an annualized revenue run-rate of $30 million.

Portfolio yields maintained strong levels, at 35.7% in the third quarter 2019, unchanged from fiscal 2018.  Annualized credit losses rose 2.96% as compared to the third quarter 2018. The increase in the loss rate is consistent with the seasonality of the industry and more specifically, was triggered by higher delinquencies at the end of the second quarter and the realization of lower recovery rates on repossessed assets during the period. 

Adjusted earnings (loss) for the third quarter of 2019 was ($2.0) million, as compared to $0.5 million in the third quarter of 2018. 

Net income (loss) for the third quarter ending March 31, 2019 was ($1.7) million or ($0.018) per share, as compared to ($0.4) million or ($0.005) per share for the comparative quarter ending March 31, 2018.

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.

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