Axis Reports Q2 2024 Financial Results
February 14 2024 - 7:30AM
Business Wire
Axis Auto Finance Inc. (“Axis” or the “Company”) (TSX: AXIS), a
financial technology company changing the way Canadians purchase
and finance used vehicles, today announced financial results for
the second quarter of fiscal 2024 ending December 31, 2023.
Q2 2024 Financial
Highlights
- Total originations of $36.4 million, consisting of $8.2 million
in automotive originations and $28.2 million in equipment
originations;
- Revenues of $11.1 million in the quarter, a 4.1% increase
year-over-year;
- Adjusted loss(1) of ($0.5) million as compared to Adjusted
earnings of $0.3 million in prior year; and
- Net loss of ($1.0) million, as compared to a net loss of ($0.5)
million in the second quarter of fiscal 2023.
For the quarter ending December 31, 2023, auto loan originations
were $8.2 million, down from $35.7 million in auto loan
originations in the second quarter of 2023, as credit and
underwriting parameters were tightened. The $8.2 million in second
quarter automotive loan originations were entirely owned and on
balance sheet, as Axis did not originate any near prime volumes
managed for Westlake Financial Services (“Westlake”).
Equipment finance origination volumes in the quarter were $28.2
million, a 3.4% increase from $27.3 million in the comparable
quarter of 2023. Second quarter originations consisted of $13.4
million owned and on balance sheet, with $14.8 million being
brokered for third parties or originated for syndication
partners.
Revenues for the quarter were $11.1 million, an increase of 4.1%
from the second quarter of prior year. Automotive annualized
realized credit loss rate(2) for the quarter was 13.24%, an
increase from 8.03% during the same quarter of the prior year.
Adjusted loss(1) for the quarter was ($0.5) million, or ($0.004)
per share, as compared to Adjusted earnings of $0.3 million or
$0.003 per share for the second quarter of 2023. The Company
recorded a Net loss for the quarter of ($1.0) million or ($0.008)
per share, as compared to net loss of ($0.5) million or ($0.004)
per share in the second quarter of 2023.
Axis Reconciliation(3) of Net Income (Loss) to Adjusted Earnings (Loss) –
Second Quarter
Q2
2024
Q2
2023
Net Income (Loss), as reported in
financial statements
(970,178)
(467,949)
Adjustments:
Non-cash interest
262,031
332,860
Depreciation
162,230
200,479
Amortization
148,300
178,666
Acquisitions and integration
18,289
-
Stock-based compensation
(10,541)
184,883
IFRS-16 lease expense
(72,947)
(88,946)
Adjusted Earnings (Loss)
(462,816)
339,993
Axis Reconciliation(3) of Net Income (Loss) to Adjusted Earnings (Loss) –
Year to Date
YTD 31-Dec-2023
YTD 31-Dec-2022
Net Income (Loss), as reported in
financial statements
(3,297,179)
(1,376,296)
Adjustments:
Non-cash interest
501,086
589,349
Depreciation
342,878
400,334
Amortization
298,089
356,326
Acquisitions and integration
280,673
22,874
Stock-based compensation
58,186
275,767
IFRS-16 lease expense
(148,997)
(178,034)
Adjusted Earnings (Loss)
(1,965,264)
90,320
About Axis Auto Finance
Axis is a fintech lender providing alternative used vehicle
financing options to non-prime borrowers. Axis loans are offered
through over 3,000 automotive dealers nationwide. Approximately 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. Further information on the Company can be
found at
https://www.axisfinancegroup.com/investors-press-releases/.
(1) Adjusted loss is a non-IFRS measure as defined in the
Company’s MD&A, which is published on Sedar. Refer to pages 5
and 6 of the MD&A, that is incorporated by reference.
(2) Annualized realized credit loss rate is a non-IFRS measure
as defined in the Company’s MD&A which is published on Sedar.
Refer to pages 5 and 6 of the MD&A, that is incorporated by
reference.
(3) The reconciliation from Net Income (Loss) to Adjusted
Earnings (Loss) for the current quarter and for the full fiscal
year is shown on page 15 of the Company’s MD&A, which includes
the basis for adjustments.
Non-IFRS Measures
The Company’s audited 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. Non-IFRS measures are not standardized
financial measures under the financial reporting framework used to
prepare the financial statements of the Company to which the
non-IFRS measures relate and might not be comparable to similar
financial measures disclosed by other issuers.
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, which is published on Sedar.
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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240214681408/en/
Axis Auto Finance Inc. Todd Hudson CEO (416) 633-5626
ir@axisautofinance.com
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