Great results : in line TORONTO, ONTARIO, Feb 25, 2015 (Marketwired via COMTEX News Network) -- Element Financial Corporation (TSX: EFN)
-- After tax adjusted operating earnings per share of $0.19 for Q4 and $0.57 for FY 2014 -- Originations increase to $1.7 billion in Q4 and exceed $4.7 billion for FY 2014 -- US market accounted for 71.4 % of originations and 49.1 % of financial revenue in Q4 -- Financial revenue increased to 8.23% of average earning assets in Q4 versus 8.00% in Q3 -- Interest expense remained flat at 2.35% of average earning assets in Q4 versus 2.33% in Q3 -- Operating expenses decreased to 2.52% of average earning assets in Q4 versus 2.61% in Q3 -- Before tax return on average common equity increased to double digits at 10.9% in Q4 from 9.7% in Q3 -- Tangible leverage increased to 3.72:1from 3.47:1 at the end of Q3 -- Book value per share increased to $9.34 at the end of Q4 from $8.93 at the end of Q3
Element Financial Corporation (TSX: EFN) ("Element" or "the Company"), one of North America's leading equipment finance companies, today reported financial results for the 12-month and three-month periods ending December 31, 2014. Free operating cash flow(1) amounted to $189.5 million or $0.76 per share for the 12-month period and $71.8
million or $0.25 per share for the three-month period. After tax adjusted operating income amounted to $148.4 million or $0.57 per share for the 12-month period ended December 31, 2014 and $55.4 million or $0.19 per share for the three-month period ended December
31, 2014.
"These results are in line with the guidance we provided to investors last year and offer improved visibility into how our fully integrated operations can be expected to perform through 2015," said Steven Hudson, Element's Chairman and CEO. "With total assets in excess of
$11 billion, we are steadily advancing toward our objective of establishing Element as a profitable and durable North American commercial finance company in each of our four chosen verticals," added Mr. Hudson.
Overall, new originations grew 41.8 percent to $1.67 billion for the three-month period ended December 31, 2014 versus $1.17 billion in Q3-2014. Fleet Management accounted for $727.6 million of Q4 originations versus $482.5 million in the previous period. The Rail Finance vertical contributed $136.7 million to Q4 originations versus $162.6 million in the previous period. Aviation Finance accounted for $397.2 million of Q4 originations versus $157.1 million in the previous period. The Commercial & Vendor vertical accounted for $404.2 million of Q4 originations versus $372.6 million in the previous quarter.
Financial revenue for the three-month period ended December 31, 2014 was $175.7 million or 8.2 percent of average earning assets versus $157.0 million in the previous quarter or 8.0 percent of average earning assets. Other revenue included in financial revenue amounted
to $54.8 million or 2.6 percent of average earning assets versus $47.3 million or 2.4 percent of average earning assets in the previous quarter. Interest expense was $50.0 million for the
three-month period ended December 31, 2014 or 2.3 percent of average earning assets versus $45.8 million or 2.3 percent of average earning assets in the previous quarter.
Net financial income for the three-month period ended December 31, 2014 was $125.7 million for the quarter versus $111.2 million in the preceding quarter. Adjusted operating expense for the three-month period ended December 31, 2014 was $53.8 million or 2.5 percent of average earning assets versus $51.2 million or 2.6 percent of average earning assets in the previous quarter.
Total earning assets increased by $819.6 million during the three-month period to $9.7 billion as at December 31, 2014 versus $8.9 billion as at the end of the preceding quarter. Finance
receivables increased to $8.5 billion and Equipment under operating leases increased to $1.3 billion as at December 31, 2014 versus $7.8 billion and $1.1 billion respectively reported at the end of the preceding quarter.
Total debt increased to $8.0 billion as at December 31, 2014 from $7.3 billion as at September 30, 2014. The Company's tangible leverage ratio increased to 3.72:1 as at December 31, 2014 versus 3.47:1 as at September 30, 2014.
"With the US market accounting for more than 71 percent of the new originations reported in the fourth quarter of last year, we started 2015 with more than 63 percent of our earning assets based in the US," noted Mr. Hudson. "The solid performance that we are seeing from this market in the first quarter gives us further confidence in our guidance of $1.44 of free operating cash flow per share and $1.05 of after tax adjusted operating EPS for the current fiscal year."