MISSISSAUGA, ON, Sept. 16, 2021 /CNW/ - Axis Auto Finance Inc. ("Axis" or the "Company"), (TSXV: AXIS) a fintech lender servicing the alternative auto finance market, announced record results for the fiscal year ended June 30, 2021.
- Record Adjusted Earnings of $6.0 million, a 136% year-over-year increase from fiscal 2020;
- Record originations of $115.2 million, a 46% increase from $78.7 million in fiscal 2020;
- Record portfolio balance of $171.8 million in owned and managed assets, up 34% from $128.3 million at June 30, 2021;
- A 37% year-over-year reduction in reportable delinquency to 2.6%;
- A 23% year-over-year reduction in credit losses to 9.06%; and
- A 21% year-over-year reduction in annualized operating expenses, expressed as a percentage of average portfolio balances.
Originations for fiscal 2021 were $115.2 million, of which $75.0 million were owned and on balance sheet and $40.2 million were volumes managed for Westlake Financial Services ("Westlake"). Axis' total owned and managed portfolio assets peaked at $171.8 million, consisting of $126.7 million of on balance sheet assets and $45.1 million in Westlake managed assets. Revenues were $38.4 million, an increase of 3% year-over-year.
Annualized credit losses were 9.06%, down from 11.77% in fiscal 2020, representing a 23% improvement. Further, the Company concluded fiscal 2021 with reportable delinquency of 2.6%, a marked reduction from 4.1% in fiscal 2020.
Operating expenses in fiscal 2021 were down $0.9 million, to $15.4 million, equal to 10.2% of average owned and managed assets. This represents a 21% reduction from 13.0% of average owned and managed assets in fiscal 2020.
Adjusted earnings for fiscal 2021 were $6.0 million or $0.062 per share, as compared to $2.6 million or $0.026 per share in fiscal 2020. Net earnings for fiscal 2021 was $2.3 million or $0.024 per share, as compared to a net loss of ($0.7) million or ($0.007) per share in fiscal 2020. Adjusted shareholder equity was $43.2 million as at June 30, 2021, or $0.44 per share.
About Axis Auto Finance
Axis Auto Finance is a fintech lender providing alternative used vehicle financing options to roughly 30% of Canadians (Source: Equifax) that have credit scores in the non-prime range. All Axis auto loans report to the credit bureau, resulting in over 70% of customers seeing a significant improvement of their credit scores. These clients use Axis as a stepping-stone in their credit rebuilding journey and we are proud to be improving the lives of these Canadians. Supported by state-of-the-art, in-house developed risk analytics, Axis continues to be Canada's fastest-growing publicly traded auto-financing company. Further information on the Company can be found at https://www.axisfinancegroup.com/investors-press-releases/.
The Company's interim unaudited consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and the accounting policies we adopted in accordance with IFRS.
The Company believes that certain Non-IFRS Measures can be useful to investors because they provide a means by which investors can evaluate the Company's underlying key drivers and operating performance of the business, exclusive of certain adjustments and activities that investors may consider to be unrelated to the underlying economic performance of the business of a given period. A full description of these measures can be found in the Management Discussion & Analysis that accompanies the financial statements 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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