Element Financial Q1 Volume Up 36% Year/Year

Element Financial reported Q1/15 free operating cash flow amounted to $78.4 million, up from $26.3 million a year earlier. After tax adjusted operating income of $60.4 million was up from $20.7 million in Q1/14.

Overall, Q1/15 new originations of $1.5 billion, down 12% from $1.7 billion reported in the seasonally strong Q4/14 and up 36% from $1.1 billion in Q1/14. Total earning assets of $10.8 billion was up from $9.7 billion sequentially and $3.8 billion a year earlier.

Fleet Management accounted for $663.7 million of Q1 originations while the Rail Finance vertical contributed $161.2 million. Aviation Finance accounted for $265.3 million of Q1 originations while the Commercial & Vendor vertical accounted for $367.1 million. The U.S. market accounted for 72% of the new origination volume reported during the period versus 71% in the three month period ending December 31, 2014. These results are in line with the company’s previous guidance of $6.5 billion of new originations during 2015.

“These results are tracking in line with our business plan and the guidance that we have provided to investors that indicate we expect to generate $1.05 of operating EPS during the year and exit 2015 with earning assets of $15.1 billion and tangible leverage of 4.55:1,” said Steven Hudson, Element’s chief executive officer. “During the first quarter, more than 72% of our new business volume and 71% of our financial revenue were derived from the U.S. market,” said Hudson. “With 69 percent of our earning assets now domiciled in the US and the demand for capital equipment in this market expected to continue to show strength through the current fiscal year, we expect to exit 2015 with a portfolio of earning assets that is 75% weighted in favor of the U.S. economy.”

To view the full Element Financial news release, click here.

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