Axis Auto Finance Inc. reported record-breaking loan originations of $5.2 million for its fiscal 2017 first quarter, ended Sept. 30, up 85% from the same quarter last year, according to its earnings report released yesterday.
“On an annualized basis, originations are consistent with management’s growth objectives,” according to the report. The growth in originations is due — in part — to the company’s acquisition of Verdant Financial Partners I Inc.
Toronto, Ontario-based Verdant entered into a non-binding letter of intent on Dec. 30 of last year, with 8095981 Canada Inc. — operating as Axis Auto Finance — resulting in the exchange of all the issued and outstanding securities of Axis for securities of Verdant, effective July 22, according to a company press release.
“Axis acquired the assets of Verdant and as a result, took the resultant amalgamated entity public back in late July, which allows Axis greater access to capital and to expand our funding capabilities,” Chief Financial Officer Richard Lloyd told Auto Finance News in October.
Axis also reported a record revenue of $1.5 million for the quarter, a 129% increase from the same time last year. Additionally, the company’s annualized loss rate for the quarter was 6.05%, which was “well within the management expectation of a loss rate that can fluctuate between 5% to 10%,” according to the report. The loss rate for 1Q16 was 7.01%.
The nonprime auto lender makes loans for 200 dealers in the Greater Toronto Area (GTA) in the used-vehicle market, out of approximately 1,800 dealers located in the GTA, according to the Used Cars Dealers Association.
