TORONTO , Oct. 18, 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 fiscal year ending June 30 , 2019.
The 2019 fiscal year results covered the full twelve months of operations, including the acquired entities of Cars on Credit Financial Inc. ("COCF") and Trend Financial Corp. ("Trend") while the fiscal 2018 comparative year included only the post acquisition period, which covered five and three months of COCF and Trend operations, respectively.
- Record originations of $67.2 million , up from $30.2 million in fiscal 2018;
- Gross finance receivables of $114.7 million , up from $111.5 million in 2018;
- Record revenues of $31.9 million compared to $15.8 million in 2018;
- Average portfolio yield of 35.9%, up from 35.7% in 2018; and
- Reportable delinquency of 4.7%, down from 5.4% in 2018.
Originations for fiscal 2019 were $67.2 million , as compared to $30.2 million in 2018, the result of increased penetration in existing markets and expanding into new markets to create a national platform.
The increase in originations contributed to the growth in gross finance receivables, which increased to $114.7 million at June 30, 2019 from $111.5 million in fiscal 2018.
Fiscal 2019 revenues of $31.9 million increased 102% from $15.8 million in fiscal 2018, the result of a full year of combined operations across all acquired entities, portfolio growth and steadily increasing portfolio yields. Portfolio yields increased year over year, achieving an average yield of 35.9% in fiscal 2019, as compared to 35.7% in fiscal 2018.
Annualized credit losses rose from 7.2% in fiscal 2018 to 10.3% in fiscal 2019. The increase in the loss rate is the result of higher default rates and higher severity of loss.
Adjusted earnings (loss) for 2019 was ($0.5) million , as compared to $2.8 million in 2018.
Net income (loss) for fiscal 2019 was ($3.9) million or ($0.040) per share, as compared to ($3.7) million or ($0.056) per share for fiscal 2018. Book value of the Company was $33.9 million at the end of the fiscal year, or $0.35 per share.
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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