Axis Auto Finance highlights 5 accomplishments recorded in Q2
Five critical performance metrics Axis Auto Finance recorded during the second quarter of its 2021 fiscal year moved in positive directions.
The finance company that specializes in the subprime space announced record results for the quarter that ended on Dec. 31.
Leading the way, Axis reported that its Q2 adjusted earnings came in at $1.5 million, representing a 71% increase from the $0.9 million posted in the second quarter of the previous fiscal year.
Fueling that growth were originations. Axis booked $30.3 million in paper during the second quarter, marking a 46% lift from the $20.8 million in originations in the year-ago quarter.
Looking closer at those originations, Axis said $21.3 million were owned and on its balance sheet and $9.0 million were volumes managed for Westlake Financial Services.
That jump in originations pushed Axis to a record portfolio balance of $152.9 million in owned and managed assets as of Dec. 31. That’s up 24% from the portfolio reading of $123.1 million on the same date a year earlier.
Meanwhile, Axis highlighted the health of its record portfolio, noting a 56% year-over-year reduction in reportable delinquency. That dropped its rate to 3.38%. On Sept. 30, that delinquency rate stood at 3.67%.
The company acknowledged its annualized credit losses in Q2 came in at 9.88%, representing an uptick from 9.66% registered a year earlier.
Furthermore, Axis mentioned how it’s being more prudent with its resources, pointing out that its operating expenses declined 14% year-over-year to $3.8 million. The company said the decrease came as the result of operating efficiencies gained through system enhancements.
And finally, Axis reported that its total revenues came in at $9.6 million, an increase of 4.4% year-over-year. The company said the result arrived in part because incremental revenues connected with the Westlake managed portfolio and portfolio growth of Axis’ balance sheet finance receivables.
A couple of other notes from the company included Axis saying that its adjusted shareholder equity was $41.9 million or $0.43 per share as of Dec. 31.
Also, the Axis board of directors approved an extension of previously granted 1,824,000 options by an additional 36 months from the original expiration date. The options were granted to five employees and an advisor to the company.
The TSX Venture exchange has approved the extension, according to Axis.