TORONTO--(BUSINESS WIRE)--Axis Auto Finance Inc. ("Axis" or the "Company") (TSX: AXIS), today announced financial results for the first quarter of fiscal 2025.
Q1 2025 Financial Highlights
- Total originations of $11.6 million, consisting of $5.6 million in automotive originations and $6.0 million in equipment originations;
- Revenues of $8.4 million in the quarter, a 15% decline year over year;
- The sale of Axis' Equipment finance assets closed in the quarter, resulting in a gain of $0.06 million.
- Subsequent to the sale of Equipment finance assets, the Equipment portfolio's securitized assets and related debt were de-recognized, resulting in a non-cash gain of $1.3 million;
- Adjusted earnings(1) of $0.7 million as compared to Adjusted loss(1) of ($1.5) million in prior year; and
- Net income of $1.8 million, as compared to a net loss of ($2.3) million in the first quarter of fiscal 2024.
For the quarter ending September 30, 2024, auto loan originations were $5.6 million, down from $11.1 million in the first quarter of 2024. The $5.6 million in automotive loan originations were entirely owned and on balance sheet.
Equipment finance origination volumes, consisting of brokered deals, in the quarter were $6.0 million, a 75% decline from $24.6 million in total equipment originations in the comparable quarter of 2024.
Revenues for the quarter were $8.4 million, a 15% decline from the first quarter of prior year. Automotive annualized realized credit loss rate(2) for the quarter was 17.87%, an increase from 12.59% during the same quarter of the prior year, while equipment finance annualized realized credit loss rate(2) for the quarter was 3.51%, an increase from 0.09% in the prior year.
Adjusted earnings(1) for the quarter was $0.7 million, or $0.006 per share, as compared to Adjusted loss of ($1.5) million or ($0.012) per share for the first quarter of 2024. The Company recorded Net income for the quarter of $1.8 million or $0.015 per share, as compared to net loss of ($2.3) million or ($0.019) per share in the first quarter of 2024.
Axis Reconciliation(3) of Net Income (Loss) to Adjusted Earnings (Loss) - First Quarter & Year-to-Date September 30, 2024
Q1 2025 | Q1 2024 | |||
Net income / (loss), as reported | 1,827,450 | (2,327,001) | ||
Adjustments: | ||||
Non-cash interest | 332,580 | 239,055 | ||
Depreciation | 83,367 | 180,648 | ||
Amortization | 62,268 | 149,789 | ||
Acquisitions and integration | - | 262,384 | ||
Stock based compensation | (49,002) | 68,727 | ||
IFRS-16 lease expense | (30,761) | (76,050) | ||
Gain - Equipment asset sale | (68,948) | - | ||
Gain - Equipment portfolio de-recognition | (1,373,308) | - | ||
Adjusted Earnings (Loss) | 783,646 | (1,502,448) |
About Axis Auto Finance
Axis is a fintech lender providing alternative used vehicle financing options to non-prime borrowers. Axis loans are offered through automotive dealers to 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 4 and 5 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 4 and 5 of the MD&A, that is incorporated by reference.
(3) The reconciliation from Net Income (Loss) to Adjusted Earnings (Loss) for the current quarter is shown on page 17 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.
Contacts
Axis Auto Finance Inc.
Todd Hudson
CEO
(416) 633-5626
ir@axisautofinance.com
