Axis Auto Finance sets 2 records during Q2 of fiscal year
Axis Auto Finance closed the second quarter of its 2020 fiscal year with a pair of records, aided in part by its partnership with Westlake Financial Services and Nowcom Corp. forged last September.
The publicly traded subprime auto finance company reported this week that its quarterly revenues jumped 13% year-over-year to a record $9.2 million. The increase in revenue arrived as the result of portfolio growth and maintaining strong portfolio yields on newly originated finance receivables.
Axis highlighted its total quarterly originations established a new record, coming in at $20.8 million on Dec. 31. The company said $17.7 million of those originations are on its balance sheet and $3.1 million are managed Westlake; the result of penetration with new dealers in both existing and new markets for Axis.
Axis pointed out its portfolio yields in the second quarter 2020 remained strong at 32.6%, in line with both the second quarter of 2019 fiscal year as well as its most recent full-year results, which produced yields of 33.0%.
The company acknowledged its annualized credit losses rose from 9.41% in Q2 of fiscal 2019 to 10.06% in the second quarter of fiscal 2020. Axis noted its delinquency rate at the end of the second quarter of fiscal 2020 stood at 7.73%, in line with 7.37% for the comparative period of fiscal 2019.
All told, Axis said adjusted earnings still produced a gain for Q2 2020 at $0.9 million, compared to a rise $0.4 million in Q2 2019 and $0.5 million loss for its entire 2019 fiscal year.
Axis went on to mention its net income loss for Q2 2020 came in at $0.5 million or $0.005 per share, as compared to $1.1 million loss or $0.012 loss per share in Q2 2019.
The company determined total shareholders' equity (book value) stood at $33.8 million at the end of the second quarter of fiscal 2020, or $0.35 per share. Adjusted equity totaled $41.3 million, or $0.43 per share, according to Axis.