Axos Financial, Inc. (NYSE:AX) Q4 2019 Earnings Conference Call - Final Transcript

Jul 30, 2019 • 05:00 pm ET


Axos Financial, Inc. (NYSE:AX) Q4 2019 Earnings Conference Call - Final Transcript


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Greetings, and welcome to Axos Financial's Fourth Quarter 2019 Earnings Call.[Operator Instructions]. A brief question-and-answer session will follow the formal presentation. [Operator Instructions]. I would now like to turn the conference over to Johnny Lai, Vice President, Corporate Development and IR. Thank you, please begin.

Johnny Lai

Great, thank you. I'd like to welcome everyone to Axos Financial Inc's Fourth Quarter and Fiscal Year 2019 Financial Results Conference Call. With me today 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 3 and 12 months ended June 30 2018 and they will be available to answer questions after the prepared remarks.

Before I 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 for 30 days. Details of this call were provided on the conference call announcement in today's earnings press release.

At this time, I would 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 Financials conference call for our fourth quarter and fiscal 2019 year end ended June 30, 2019. I thank you for your interest in Axos financial, Axos Bank, and Axos Securities. Axos announced record net income of $155.1 million for the fiscal year ended June 30 2019, up 1.8% over the $154 million earned for the fiscal year ended June 30, 2018. Axos return on average equity for fiscal 2019 was 15.4% and the bank's efficiency ratio was 40.51%.

Fiscal 2019 earnings per share increased 4.6% to $2.48 per diluted share compared to $2.37 per diluted share in the fiscal year-end 2018. Excluding acquisition-related expenses and non-recurring costs related to excess FDIC expenses and a client related trading loss in our clearing business.

Non-GAAP earnings per share increased 15.1% to $2.75 per share in fiscal 2019 equating to a non-GAAP return on equity of 17.1%. Net income for Axos's fourth quarter ended June 30, 2019 was $40.6 million, up 9.5% when compared to the $37.1 million earned in the fourth quarter ended June 30, 2018. Earnings attributable to Axo's common stockholders were $40.6 million or $0.66 per diluted share for the quarter ended June