TORONTO, Nov. 30, 2016 /CNW/ - Axis Auto Finance Inc.
("Axis" or the "Company"), (TSXV: AXS) an alternative lender
servicing the Canadian used vehicle market, announced today
financial results for the quarter ended September 30, 2016. This is the first quarter of
fiscal 2017 for Axis and the first quarter of consolidated
reporting 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.
HIGHLIGHTS
- Record revenues of $1.5 million
for the quarter compared to $0.6
million in the first quarter of fiscal 2016;
- Record lease receivables balance of $18.6 million at the end of the quarter compared
to $15.4 million as of June 30, 2016;
- Record loan originations of $5.2
million compared to $2.8
million in the first quarter of fiscal 2016;
- Average portfolio yield of above 30%
- Annualized loss rate at 6.05% of the average lease receivables
balance
Revenues of $1.5 million for the
quarter increased 129% from the revenues of $0.6 million for the comparative period in fiscal
2016, consistent with the portfolio growth. First quarter revenue
equated to an annualized revenue run-rate of $5.9 million, compared to $3.6 million reported for the 2016 fiscal
year.
Loan originations for the quarter were $5.2 million, an 85% increase from $2.8 million in Q1 of fiscal 2016. On an
annualized basis originations are consistent with management's
growth objectives.
The annualized loss rate for the quarter was 6.05%, well within
the management expectation of a loss rate that can fluctuate
between 5-10%. The loss rate for Q1 2016 was 7.01%.
The average portfolio yield was 34.68%, compared to 32.81% in
fiscal 2016 and consistent with the management objective to
maintain the average yield on its lease receivables portfolio above
30%.
Lease receivables at the end of the quarter were $18.6 million, an increase of 21% from
$15.4 million at June 30, 2016.
Net loss for the quarter was $96,117, or $0.002
per share, resulting primarily from non-cash expenses being the
provision for credit losses of $451,102 and stock based compensation of
$218,580.
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.