Axis Auto Finance Inc. (“Axis” or the “Company”) (TSX: AXIS), a
financial technology company changing the way Canadians purchase
and finance used vehicles, today announced financial results for
the fourth quarter and the 2024 fiscal year.
Q4 2024 Financial
Highlights
- Total originations of $16.2 million, consisting of $4.3 million
in automotive originations and $11.9 million in equipment
originations;
- Revenues of $8.1 million in the quarter, a 19% decline year
over year;
- Write off of deferred tax assets, resulting in an income tax
charge of $10.8 million in the quarter;
- Adjusted loss(1) of ($16.9) million as compared to
Adjusted loss(1) of ($1.4) million in prior year; and
- Net loss of ($17.7) million, as compared to a net loss of
($20.1) million in the fourth quarter of fiscal 2023.
For the quarter ending June 30, 2024, auto loan originations
were $4.3 million, down from $30.3 million in auto loan
originations in the fourth quarter of 2023, as credit and
underwriting parameters continued to be tightened. The $4.3 million
in fourth 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
(“Westlake”). In comparison, of the $30.3 million of total
originations in Q4 2023, the Company recorded $12.5 million
Westlake volumes.
Equipment finance origination volumes in the quarter were $11.9
million, a 63% decline from $32.2 million in the comparable quarter
of 2023. Fourth quarter originations were entirely brokered for
third parties or originated for syndication partners.
Revenues for the quarter were $8.1 million, a 19% decline from
the fourth quarter of prior year. Automotive annualized realized
credit loss rate(2) for the quarter was 19.59%, an increase
from 12.90% during the same quarter of the prior year, while
equipment finance annualized realized credit loss rate(2)
for the quarter was 6.13%, an increase from nil in the prior
year.
Adjusted loss(1) for the quarter was ($16.9) million, or
($0.139) per share, as compared to Adjusted loss of ($1.4) million
or ($0.011) per share for the fourth quarter of 2023. The Company
recorded a Net loss for the quarter of ($17.7) million or ($0.147)
per share, as compared to net loss of ($20.1) million or ($0.165)
per share in the fourth quarter of 2023.
Fiscal 2024 Financial
Highlights
- Total fiscal 2024 originations of $109.5 million, consisting of
$28.1 million in automotive originations and $81.4 million in
equipment originations;
- Total owned and managed finance receivables of $192.1 million,
consisting of $104.0 million in auto and $88.1 million in
equipment;
- Revenues of $38.8 million in fiscal 2024, a decline of 4.3%
from prior year;
- Write off deferred tax balances, resulting in a charge of $9.0
million in fiscal 2024;
- Adjusted loss(1) of ($20.2) million, as compared to
Adjusted loss(1) of ($5.2) million in fiscal 2023; and
- Net loss of ($23.1) million, down from Net loss of ($26.2)
million in prior year.
For the fiscal year ended June 30, 2024, auto loan originations
were $28.1 million, all of which were on balance sheet
originations. This represented a 62% reduction from $74.2 million
in on balance sheet auto loan originations in fiscal 2023.
Equipment finance origination volumes in fiscal 2024 were $81.4
million, consisting of $29.9 million in owned and on balance sheet,
with $51.5 million being brokered for third parties or originated
for syndication partners. Fiscal 2024 equipment originations of
$81.4 million represented a 26% year over year decrease from $110.5
million in fiscal 2023.
Axis’s total owned and managed equipment portfolio as of June
30, 2024 were $88.1 million, an increase from $71.8 million a year
earlier. In aggregate, the Axis’ total automotive and equipment on
balance sheet and managed assets were $192.1 million as at June 30,
2024, a 42% year over year decrease from $334.5 million.
Revenues for the year were $38.8 million, a decline of 4.3%
year-over-year. Automotive annualized realized credit loss
rate(2) for fiscal 2024 was 15.18%, up from 11.13% during
fiscal 2023, while equipment finance annualized realized credit
loss rate(2) for fiscal 2024 was 2.35%, up from nil in the
prior year. Company concluded the year with reportable delinquency
of 11.15%, up from 5.17% a year earlier.
Adjusted loss(1) for fiscal 2024 was ($20.2) million, or
($0.167) per share, as compared to Adjusted loss of ($5.2) million
or ($0.043) per share for fiscal 2023. The Company recorded a Net
loss in fiscal 2024 of ($23.1) million or ($0.191) per share, as
compared to Net loss of ($26.2) million or ($0.215) per share in
fiscal 2023.
Axis Reconciliation(3) of Net Income (Loss) to Adjusted Earnings (Loss) –
Fourth Quarter
Q4
2024
Q4
2023
Net income / (loss), as
reported
(17,783,553)
(20,091,194)
Adjustments:
Non-cash interest
342,782
288,243
Depreciation
88,557
241,965
Amortization
411,596
171,978
Acquisitions and integration
11,820
34,239
Stock based compensation
22,149
214,987
IFRS-16 lease expense
(30,513)
(75,225)
Goodwill impairment
-
17,810,702
Adjusted Earnings (Loss)
(16,937,162)
(1,404,305)
Axis Reconciliation(3) of Net Income (Loss) to Adjusted Earnings (Loss) –
Fiscal Year
FY
2024
FY
2023
Net Income (Loss), as reported in
financial statements
(23,160,892)
(26,182,080)
Adjustments:
Non-cash interest
1,145,923
1,218,637
Depreciation
690,134
817,500
Amortization
842,875
695,304
Acquisitions and integration
292,493
65,936
Stock-based compensation
133,779
652,108
IFRS-16 lease expense
(238,046)
(327,655)
Goodwill impairment
-
17,810,702
Adjusted Earnings (Loss)
(20,293,734)
(5,249,548)
About Axis Auto Finance
Axis is a fintech lender providing alternative used vehicle
financing options to non-prime borrowers. Axis loans are offered
through automotive dealers to approximately 30% 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% of customers seeing a significant improvement of their credit
scores. Further information on the Company can be found at
https://www.axisfinancegroup.com/investors-press-releases/.
(1) Adjusted loss is a non-IFRS measure as defined in the
Company’s MD&A, which is published on Sedar. Refer to pages 4
and 5 of the MD&A, that is incorporated by reference.
(2) Annualized realized credit loss rate is a non-IFRS
measure as defined in the Company’s MD&A which is published on
Sedar. Refer to pages 4 and 5 of the MD&A, that is incorporated
by reference.
(3) The reconciliation from Net Income (Loss) to Adjusted
Earnings (Loss) for the current quarter and for the full fiscal
year is shown on page 18 of the Company’s MD&A, which includes
the basis for adjustments.
Non-IFRS Measures
The Company’s audited consolidated financial statements have
been prepared in accordance with International Financial Reporting
Standards (“IFRS”) as issued by the International Accounting
Standards Board (“IASB”) and the accounting policies we adopted in
accordance with IFRS. Non-IFRS measures are not standardized
financial measures under the financial reporting framework used to
prepare the financial statements of the Company to which the
non-IFRS measures relate and might not be comparable to similar
financial measures disclosed by other issuers.
The Company believes that certain Non-IFRS Measures can be
useful to investors because they provide a means by which investors
can evaluate the Company’s underlying key drivers and operating
performance of the business, exclusive of certain adjustments and
activities that investors may consider to be unrelated to the
underlying economic performance of the business of a given period.
A full description of these measures can be found in the Management
Discussion & Analysis that accompanies the financial statements
for the corresponding period, which is published on Sedar.
The TSX 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.
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version on businesswire.com: https://www.businesswire.com/news/home/20240927733066/en/
Axis Auto Finance Inc. Todd Hudson CEO (416) 633-5626
ir@axisautofinance.com
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