Axos Financial, Inc. (NSE:AX) Q1 2019 Earnings Conference Call - Final Transcript

Oct 24, 2018 • 05:00 pm ET


Axos Financial, Inc. (NSE:AX) Q1 2019 Earnings Conference Call - Final Transcript


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Greetings and welcome to Axos Financial's First Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. [Operator Instructions] As a reminder, this conference is being recorded.

I would now like to turn the conference over to your host, Johnny Lai.

Johnny Lai

Thank you. Good afternoon, everyone. Thanks for your interest in Axos. Joining us today for Axos Financial Inc.'s first quarter 2019 financial results conference call are the company's President and Chief Executive Officer, Greg Garrabrants; and Executive Vice President and Chief Financial Officer Andy Micheletti. Greg and Andy will review and comment on the financial and operational results for the three months ended September 30, 2018, and they will be available to answer questions after the prepared remarks.

Before I began, I would like to remind listeners that prepared remarks made on this call may contain forward-looking statements that are subject to risks and uncertainties and that management may make additional forward-looking statements in response to your questions. These forward-looking statements are made on the basis of current views and assumptions of management regarding future events and performance. Actual results could differ materially from those expressed or implied in such forward-looking statement as a result of risks and uncertainties. Therefore, the company claims the Safe Harbor protection pertaining to forward-looking statement contained in the Private Securities Litigation Reform Act of 1995.

This call is being webcast and there will be an audio replay available on the Investor Relations section of the company's website located at for 30 days. Details for this call were provided on the conference call announcement and in today's earnings press release.

At this time, I'd like to turn the call over to Greg for his opening remarks.

Gregory Garrabrants

Thank you, Johnny. Good afternoon everyone, and thank you for joining us. I'd like to welcome everyone to Axos Financial's conference call for the first quarter of fiscal 2019 ended September 30, 2018. I thank you for your interest in Axos Financial and Axos Bank.

Axos announced record net income of $36.8 million for the first fiscal quarter ended September 30, 2018, up 13.77% from the $32.4 million earned in the fiscal first quarter ended September 30, 2017 and down 74 basis points when compared to the $37 million earned in the prior quarter. Earnings attributable to Axos' common stockholders was $36.8 million or $0.58 per diluted share for the quarter ended September 30, 2018 compared to $0.50 per diluted share for the quarter ended September 30, 2017 and $0.58 per diluted share for the quarter ended June 30, 2018. Excluding non-recurring expenses, non-GAAP adjusted earnings and earnings per share were $38.4 million and $0.61 respectively, for the quarter ended September 30, 2018.

Other highlights for the first quarter include, ending loan and leases increased by $222 million, up 2.6% on a linked quarter basis or 10.4% annualized from the fourth quarter of 2019 and 15.2% year-over-year. Excluding our mortgage warehouse balances, which fluctuated quarter-to-quarter and