Axis Auto Finance, a non-prime lender servicing the Canadian used vehicle market, announced today financial results for the fiscal year ended June 30, 2017.
The fiscal year results cover one-month prior and 11 months post completion of the Reverse Take-Over in July 2016.
The comparative prior period figures pertain to the private company Axis Auto Finance, recorded before completion of the RTO.
Fiscal 2017 was a record setting year with Axis achieving its best ever results in terms of portfolio size, revenue and originations. Some of the key highlights were:
- Record revenues of $6.8 million compared to $3.6 million in 2016;
- Record lease receivables balance of $23.8 million at the end of 2017 compared to $15.4 million for 2016;
- Record loan originations of $18.9 million for 2017;
- 61+ day delinquent accounts at the end of 2017 were 1.6% compared to 1.9% for 2016;
- Average portfolio yield of 35% compared to 34% in 2016;
- Annualized loss rate at 8.0%, down from 8.8% in fiscal 2016; and
- Adjusted Earnings1 of $0.9 million in 2017 compared to $0.4 million in 2016.
“2017 was a pivotal year for us with Axis setting records in every reportable category. Our team has built and continues to grow a portfolio that yields 35 percent with a loss rate of 8 percent, which are very attractive metrics for our business”, said Ilja Troitschanski, CEO of Axis. “We are well positioned to continue delivering aggressive organic growth and taking advantage of possible M&A opportunities in 2018”, he continued.
Revenues of $6.8 million for 2017 increased 91 percent from $3.6 million for 2016. The fourth quarter revenue equated to an annualized revenue run-rate of $7.6 million.
Loan originations for 2017 were $18.9 million, a 33 percent increase from $14.2 million in 2016. Axis ended the fiscal year with $23.8 million in lease receivables compared to $15.4 million at the end of 2016, a 55% increase. Average annual receivables balance, used for the calculation of yield and losses; increased by 87 percent to $19.6 million.
The portfolio performance was strong with 61 plus days delinquent accounts at the end of 2017 reduced to 1.6 percent versus 1.9 percent at the end of 2016.
Net loss for 2017 was $0.8 million or $0.016 per share compared to $1.8 million or $0.075 per share for 2016. Adjusted earnings for the 2017 fiscal year were $0.9 million compared to $0.4 million in 2016.
In order to track the performance of its Lease 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 (ii) actual credit losses incurred and (iii) specified expenses which were entirely recognized in a given quarter but for which the benefit was derived over more than a given quarter.
