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Axis Auto Finance Inc
Symbol AXIS
Shares Issued 121,374,164
Close 2024-05-15 C$ 0.055
Market Cap C$ 6,675,579
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Axis Auto Finance loses $2.08-million in fiscal Q3

2024-05-15 14:12 ET - News Release

Mr. Todd Hudson reports

AXIS REPORTS Q3 2024 FINANCIAL RESULTS & UPDATES ON STRATEGIC REVIEW PROCESS

Axis Auto Finance Inc. today released its financial results for the third quarter of fiscal 2024 ending March 31, 2024, and has provided a strategic review update.

Q3 2024 financial highlights

  • Total originations of $21.2-million, consisting of $4.5-million in automotive originations and $16.7-million in equipment originations;
  • Revenues of $9.7-million in the quarter, unchanged from prior year;
  • Adjusted loss of ($1.4)-million as compared with adjusted loss of ($3.9)-million in prior year;
  • Net loss of ($2.1)-million, as compared with a net loss of ($4.7)-million in the third quarter of fiscal 2023.

For the quarter ending March 31, 2024, auto loan originations were $4.5-million, down from $32.4-million in auto loan originations in the third quarter of 2023, as credit and underwriting parameters continued to be tightened. The $4.5-million in third 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. In comparison, the company recorded $16.7-million Westlake volumes originated in the same quarter of fiscal 2023.

Equipment finance origination volumes in the quarter were $16.7-million, a 21.9-per-cent decline from $21.3-million in the comparable quarter of 2023. Third quarter originations consisted of $5.6-million owned and on balance sheet, with $11.1-million being brokered for third parties or originated for syndication partners.

Revenues for the quarter were $9.7-million, unchanged from the third quarter of prior year. Automotive annualized realized credit loss rate for the quarter was 16.05 per cent, an increase from 15.38 per cent during the same quarter of the prior year, while equipment finance annualized realized credit loss rate for the quarter as 2.87 per cent, an increase from nil in the prior year.

Adjusted loss for the quarter was ($1.4)-million, or (1.2 cents) per share, as compared with adjusted loss of ($3.9)-million or (3.2 cents) per share for the third quarter of 2023. The company recorded a net loss for the quarter of ($2.1)-million or (1.7 cents) per share, as compared with net loss of ($4.7)-million or (3.9 cents) per share in the third quarter of 2023.

Strategic review update

The company has entered into non-binding letters of intent with two separate, unrelated parties for potential sales of the auto finance and equipment finance businesses. The counterparties are in the process of completing their due diligence. Axis management hope to be in position to enter into definitive agreements in respect to the auto finance and equipment finance business by the fiscal year ended June 30, 2024.

There can be no assurances that either or both of the transactions will be completed or that any successful transaction will result from the strategic process. The company will provide further updates on the process as developments warrant.

About Axis Auto Finance Inc.

Axis is a fintech 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 (source: Equifax) 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.

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