TORONTO, Nov. 29, 2018 /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 first quarter of fiscal 2019 ending September 30, 2018.
- Record Adjusted Earnings1 of $1.6 million in first quarter 2019 compared to $0.5 million in the first quarter 2018;
- Record $18.2 million in originations in the first quarter 2019;
- Record gross finance receivables of $116.4 million as at September 30, 2018;
- Record quarterly revenues of $8.4 million compared to $2.2 million in first quarter of 2018;
- Average annualized portfolio yield in first quarter of 35.3% compared to 35.7% in fiscal 2018;
- Annualized credit loss rate at 6.96%, down from 7.23% in fiscal 2018; and
- Adjusted EPS of $0.017 for the quarter.
Finance receivables originations for the first quarter of fiscal 2019 were $18.2 million, contributing to the growth in gross finance receivables to $116.4 million as at September 30, 2018 from $111.5 million at June 30, 2018.
In this quarter Axis adopted IFRS 9 Financial Instruments ("IFRS 9") which increased the size of the allowance for credit losses that the Company maintains on its balance sheet from $2.5 million at June 30, 2018 to $9 million at September 30, 2018. As a result, net finance receivables decreased from $109 million to $107 million over the same period. There has been no impact on credit performance or cash flows.
Revenues of $8.4 million for the first quarter 2019, increased 290% from $2.2 million for the first quarter 2018, equating to an annualized revenue run-rate of $33.7 million.
Portfolio yields maintained strong levels, at 35.3% for the first quarter 2019, as compared to 35.7% in 2018. Equally as strong was the annualized credit loss rate of 6.96% in the first quarter 2019, down from 7.23% in fiscal 2018.
Adjusted earnings for the first quarter of 2019 were $1.6 million, as compared to $0.5 million in the first quarter of 2018, a 213% increase. Adjusted EPS was $0.017 for the quarter or approximately $0.069 on an annualized basis.
Net loss for the first quarter ending September 30, 2018 was $0.3 million or $0.004 per share, after accounting for the new IFRS 9 provisioning for credit losses, as compared to net income of $0.1 million or $0.001 per share for the comparative quarter ending September 30, 2017.
Book value of the Company was $36.8 million at September 30, 2018, post reduction of $4.3 million to retained earnings from the one-time increase to the allowance for credit losses resulting from the adoption of IFRS 9.
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.
For further information: Axis Auto Finance Inc.: Ilja Troitschanski, President, (416) 633-5626, [email protected]