TORONTO--(BUSINESS WIRE)--Axis Auto Finance Inc. (“Axis” or the “Company”) (TSX: AXIS), a rapidly growing financial technology company changing the way Canadians purchase and finance used vehicles, today announced financial results for the second quarter of fiscal 2023, ending December 31, 2022.
Q2 2023 FINANCIAL HIGHLIGHTS:
- Auto loan portfolio of $252.2 million, up 28% year-over-year;
- Equipment finance portfolio of $48.0 million, up 612% year-over-year;
- Total owned and managed finance receivables of $300.2 million, up 47% year-over-year;
- Revenues increased 6% to $10.6 million year-over-year; and
- Adjusted earnings of $0.7 million.
For the quarter ending December 31, 2022, auto loan originations were $35.7 million, consisting of $15.1 million owned and on balance sheet, while $20.6 million were volumes managed for Westlake Financial Services (“Westlake”). Axis’ total owned and managed auto portfolio reached a record $252.2 million, consisting of $142.5 million of on balance sheet assets and $109.7 million in Westlake managed assets.
Equipment finance origination volumes in the quarter were $27.3 million, representing an 11% year-over-year increase, and consisted of $14.2 million owned and on balance sheet, with $13.1 million being brokered for third parties or originated for syndication partners. In aggregate, the Axis on balance sheet portfolio increased 35% year-over- year, to a record $187.0 million.
Revenues for the quarter were $10.6 million, an increase of 6% year-over-year.
Annualized auto portfolio credit losses for the quarter were 8.03%, up from 7.77% during the same period in prior year, while the Company concluded the quarter with reportable delinquency of 5.58%.
Adjusted earnings for the quarter was $0.7 million, or $0.006 per share, as compared to $1.6 million or $0.013 per share for the comparable quarter of 2022. The Company recorded a net loss for the quarter of $0.5 million or $0.004 per share, as compared to net income of $0.2 million or $0.002 per share in the second quarter of 2022. Adjusted shareholder equity was $58.7 million, or $0.48 per share, at December 31, 2022.
About Axis Auto Finance
Axis is a financial technology company changing the way Canadians buy and finance used vehicles. Through our direct-to-consumer portal, DriveAxis.ca, customers can choose their next used vehicle, arrange financing, and get the car delivered to their home. In addition, the company continues to grow B2B non-prime auto loan originations by delivering innovative technology solutions and superior service to its Dealer Partner Network. All Axis auto loans report to Equifax, resulting in over 70% of customers seeing a significant improvement of their credit scores. Further information on the Company can be found at https://www.axisfinancegroup.com/investors-press-releases/.
Non-IFRS Measures
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 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.
