TORONTO, Oct. 31, 2016 /CNW/ - Axis Auto Finance Inc.
("Axis" or the "Company"), (TSXV: AXS) a non-prime lender servicing
the Canadian used vehicle market, announced today financial results
for the fiscal year ended June
30th, 2016. The results pertain to the private
company Axis Auto Finance, prior to the completion of the reverse
takeover in July 2016.
Fiscal 2016 was a record setting year with Axis achieving triple
digit growth in portfolio size, revenue and originations, as
compared to fiscal 2015.
HIGHLIGHTS
- Record lease receivables balance of $15.4 million at the end of 2016 compared to
$5.7 million for 2015;
- Record revenues of $3.6 million
for 2016 compared to $1 million in
2015;
- Record loan originations of $13.6
million for 2016;
- 61+ day delinquent accounts at the end of 2016 were 2% compared
to 7% for 2015.
Revenues of $3.6 million for 2016
increased 360% from the revenues of $1
million for 2015, consistent with the portfolio growth. Loan
originations for 2016 were $13.6
million, a 255% increase from $5.3
million in 2015.
Lease receivables at the end of 2016 were $15.4 million, an increase of 271% from
$5.7 million for 2015, exceeding
Axis' goal of 100% annual growth.
61+ days delinquent accounts at the end of 2016 were 2% versus
7% at the end of 2015, resulting from improvements in underwriting
and customer service/collection practices.
Net loss for 2016 was $1.75
million, resulting primarily from the increase in the
provision for credit losses to $2.2
million and an interest expense of $1.8 million, consisting of cash interest of
$768,000 and non-cash interest
(accretion and re-valuation of derivative liabilities) of
$1 million. The increase in the
provision for credit losses is consistent with the growth in the
lease receivable portfolio.
Management continues to target growth of the lease receivables
in the neighborhood of 100% during fiscal 2017, while focusing on
maintaining acceptable interest rate margins and levels of credit
losses.
Subsequent to fiscal year-end, Axis completed the reverse
takeover of Verdant Financial Partners I Inc. resulting in its
shares being listed on the TSX Venture Exchange, the release of the
cash held in escrow, the conversion of all the convertible
debentures and the reclassification of the derivative liability
through the exercise of the warrants.
About Axis Auto Finance
Axis provides non-standard financing options targeting roughly
30% of Canadians (Source: Equifax) that do not qualify for
traditional bank-type financing for their used vehicle purchase.
Through personalized service and a commitment to building strong,
long-lasting relationships with dealer partners, Axis continues to
be one of Canada's fastest-growing
auto-financing companies.
Further information on the Company can be found at
www.axisautofinance.ca.
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.
Certain information in this press release may constitute
forward-looking information. This information is based on
current expectations that are subject to significant risks and
uncertainties that are difficult to predict. Actual results might
differ materially from results suggested in any forward-looking
statements. The Company assumes no obligation to update the
forward-looking statements, or to update the reasons why actual
results could differ from those reflected in the forward
looking-statements unless and until required by securities laws
applicable to the Company. Additional information identifying
risks and uncertainties is contained in the Company's filings with
the Canadian securities regulators, available at
www.sedar.com.
SOURCE Axis Auto Finance Inc.