Mr. Todd Hudson reports

AXIS REPORTS Q2 2024 FINANCIAL RESULTS

Axis Auto Finance Inc. has released financial results for the second quarter of fiscal 2024 ended Dec. 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-per-cent increase year over year;
• Adjusted loss of $500,000 as compared with adjusted earnings of $300,000 in the prior year;
• Net loss of $1-million, as compared with a net loss of $500,000 in the second quarter of fiscal 2023.

For the quarter ended Dec. 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.

Equipment finance origination volumes in the quarter were $28.2-million, a 3.4-per-cent 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 per cent from the second quarter of the prior year. Automotive annualized realized credit loss rate for the quarter was 13.24 per cent, an increase from 8.03 per cent during the same quarter of the prior year.

Adjusted loss for the quarter was $500,000, or a loss of 0.4 cent per share, as compared with adjusted earnings of $300,000, or 0.3 cent per share for the second quarter of 2023. The company recorded a net loss for the quarter of $1-million, or a loss of 0.8 cent per share, as compared with net loss of $500,000, or a loss of 0.4 cent per share in the second quarter of 2023.

About Axis Auto Finance Inc.

Axis is a fintech (financial technology) lender providing alternative used vehicle financing options to non-prime borrowers. Axis loans are offered through over 3,000 automotive dealers nationwide. Approximately 30 per cent of Canadians that have credit scores in the non-prime range. All Axis auto loans report to the credit bureau, resulting in over 70 per cent of customers seeing a significant improvement of their credit scores.