Axos Financial, Inc. (NSE:AX) Q2 2019 Earnings Conference Call - Final Transcript

Jan 29, 2019 • 05:00 pm ET

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Axos Financial, Inc. (NSE:AX) Q2 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, greetings and welcome to the Axos Financial Second Quarter 2019 Earnings Call. At this time, all participants are in a listen-only mode. A brief question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this program is being recorded.

It is now my pleasure to introduce your host, Johnny Lai, VP, Corporate Development and IR. Thank you, you may begin.

Executive
Johnny Lai

Thanks, Adam. Good afternoon, everyone. Thanks for your interest in Axos Financial and Axos Bank. Joining us today for Axos Financial Inc.'s second 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 and six months ended December 31, 2018 and they will be available to answer questions after their prepared remarks.

Before they begin, 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 statements as a result of risks and uncertainties. Therefore, the Company claims the Safe Harbor protection pertaining to forward-looking statements contained in the Private Securities Litigation Reform Act of 1995.

This call is being webcast and there will be an audio replay available in the Investor Relations section of the Company's website located at axosfinancial for 30 days. Details for this call are 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.

Executive
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 second quarter of fiscal 2019 ended December 31, 2018. I thank you for your interest in Axos Financial and Axos Bank. Axos announced record net income of $38.8 million for the fiscal second quarter ended December 31, 2018, up 22.7% from the $31.7 million earned in the fiscal second quarter ended December 31, 2017 and up 5.4% when compared to the $36.8 million earned in the prior quarter.

Earnings attributable to Axos' common stockholders were $38.8 million or $0.62 per diluted share for the quarter ended December 31, 2018, a 26.5% increase from the $0.49 per diluted share for the quarter ended December 31, 2017 and $0.58 per diluted share for the quarter ended September 30, 2018. Excluding non-recurring expenses, non-GAAP adjusted earnings and earnings per share were $39.6 million and $0.63 respectively, for the quarter ended December 31, 2018.

Other highlights for the second quarter included ending loan and lease balances increasing by $363 million, up 4.2% on a linked quarter basis or