TORONTO -

This past Friday, Axis Auto Finance reported financial results for its 2019 fiscal year that ended June 30 and included the full 12 months of operations the acquired entities of Cars on Credit Financial (COCF) and Trend Financial Corp.

As a result, Axis posted several year-over-year gains since the comparative 2018 fiscal year included only the post-acquisition period of five and three months of COCF and Trend operations, respectively.

The company reported its originations for the 2019 fiscal year came in at a record $67.2 million, as compared to $30.2 million in 2018. Officials said they arrived at the result from increased penetration in existing markets and expanding into new markets to create a national platform. 

Axis highlighted the increase in originations contributed to the growth in gross finance receivables, which increased to $114.7 million at June 30 from $111.5 million a year earlier.  

The company’s 2019 fiscal revenues of $31.9 million represented an increase of 102% from $15.8 million generated during the previous fiscal year, again stemming from a full year of combined operations across all acquired entities, portfolio growth and steadily increasing portfolio yields.

Axis noted its portfolio yields increased year-over-year, achieving an average yield of 35.9% in fiscal 2019, as compared to 35.7% in fiscal 2018.

Officials acknowledged their annualized credit losses rose from 7.2% in fiscal 2018 to 10.3% in fiscal 2019. 

“The increase in the loss rate is the result of higher default rates and higher severity of loss,” they said.

After computing all of those figures, Axis arrived at a net loss for fiscal 2019 of $3.9 million or $0.040 per share, as compared to a net loss of $3.7 million or $0.056 per share for fiscal 2018. 

Officials added book value of the company was $33.9 million at the end of the fiscal year, or $0.35 per share.