Halifax Corporation (HX) Reports Q1 EPS of $0.56, Revenues Beat

Halifax Corporation (NASDAQ: HX) reported Q1 EPS of $0.56, versus $0.00 reported last year. Revenue for the quarter came in at $51.7 million versus the consensus estimate of $45.75 million.

First Quarter of Fiscal Year 2019 Unaudited Financial Highlights

• Net revenue was US$51.7 million during the first quarter of fiscal year 2019, an increase of 241.8% from the first quarter of fiscal year 2018.
• Operating expenses were US$15.6 million during the first quarter of fiscal year 2019, an increase of 224.2% from the first quarter of fiscal year 2018.
• Net income was US$29.7 million during the first quarter of fiscal year 2019, an increase of 233.7% from the first quarter of fiscal year 2018.
• Basic EPS in the first quarter of fiscal year 2019 was US$0.62 compared to US$0.21 in first quarter of fiscal year 2018.
• Diluted EPS in the first quarter of fiscal year 2019 was US$0.56 compared to US$0.21 in first quarter of fiscal year 2018.
• Adjusted net income (Non-GAAP) in the first quarter of fiscal year 2019 was US$29.9 million, increased by 236.1% from US$8.9 million in the first quarter of fiscal year 2018.
• Adjusted EBIT (Non-GAAP) in the first quarter of fiscal year 2019 was US$36.6 million, increased by 250.9% from US$10.4 million in the first quarter of fiscal year 2018.

"We delivered another solid quarter of growth despite a challenging market which I believe demonstrates our corporate flexibility, ability to rapidly adapt, and commitment to maintaining compliance in a rapidly evolving regulatory environment,\" commented Mr. Xinming Zhou, Chief Executive Officer of Hexindai. \"Net revenue and net income during the quarter both increased at a triple-digit pace to US$51.7 million and US$29.7 million, respectively. We maintained our corporate flexibility in the midst of a difficult market environment and have been working in close cooperation with relevant regulatory authorities to complete the self-examination and correction measures. We believe the inspection process is a positive development for us and the entire sector. Increased regulation will raise the barriers to entry and will create a healthier long-term market environment which allow us to leverage our strong cash position, operational efficiency, and solid risk management and marketing capabilities to consolidate the market. We strategically focus on medium-sized loans targeting borrowers with stable employment and income. Our strategic foresight, high-quality user base, and ability to closely manage risk on our platform have strengthened our confidence and ability to navigate this challenging period for the industry and maintain user trust, which is critical during this period."

"We made our first cross-border investment during the quarter by buying 20% equity stake for US$1.6 million in Musketeer Group Inc. ("Musketeer"), an Indonesian online lending platform that offers consumption installment loans. This marks the first step in our larger strategy to explore overseas opportunities by leveraging our extensive experience and expertise in new high-growth markets. Growing confidence in our future growth prospects and strong cash position allowed us to return value to shareholders in the form of an annual dividend policy. We will continue to invest in strengthening our risk management systems and developing new market opportunities to ensure we are able to quickly take advantage of opportunities that emerge as the market consolidates. We will also focus on growing our business to scale by improving operational efficiency and enhancing investor and borrower acquisition. I am confident that these initiatives will help us solidify our competitive advantage in China\'s rapidly growing consumer lending marketplace and generate long-term sustainable value for our shareholders."

For earnings history and earnings-related data on Halifax Corporation (HX) click here.

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