Axos Financial, Inc. (NYSE:AX) Q1 2020 Earnings Conference Call - Final Transcript

Oct 29, 2019 • 05:00 pm ET


Axos Financial, Inc. (NYSE:AX) Q1 2020 Earnings Conference Call - Final Transcript


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Greetings and welcome to the Axos Financial Inc. First Quarter 2020 Earnings Results. [Operator Instructions]

It is now my pleasure to introduce Johnny Lai, Vice President Corporate Development and IR. Thank you. Please begin.

Johnny Lai

Thank you, and good afternoon everyone. Thanks for your interest in Axos. Joining us today for Axos Financial Inc.'s first quarter fiscal 2020 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 operating results for the three months ended September 30 2019 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 holding company 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 2020 ended September 30 2019. I thank you for your interest in Axos Financial Axos Securities and Axos Bank. Axos announced record net income of $40.8 million for the fiscal first quarter ended September 30 2019 up 10.7% from the $36.8 million earned in the fiscal first quarter ended September 30 2018. Earnings attributable to Axos' common stockholders, were $40.7 million or 66% per diluted share for the quarter ended September 30 2019 compared to $0.58 per diluted share for the quarter ended September 30 2018. Excluding nonrecurring expenses non-GAAP adjusted earnings and earnings per share were $42 million and $0.68 respectively for the quarter ended September 30 2019. Other highlights, for the first quarter include ending loans and leases increased by $402 million up 4.3% on a linked-quarter basis or 17.1% annualized for the fourth quarter of 2019 and 13.1% year-over-year.

Excluding our mortgage warehouse which fluctuates quarter-to-quarter and $57.9 million restructured settlement sales this quarter ending loan balances increased $369.7 million or 16.3% annualized from June 30 to September 30. Total assets reached $11.8 billion at September 30 2019 up $600 million compared to June 30 2019 and up $2 billion