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.
- 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.
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SOURCE Axis Auto Finance Inc.
For further information: Axis Auto Finance Inc., Ilja Troitschanski, President, (416) 633-5626, firstname.lastname@example.org