Element Financial reported strong volume growth in Q2/13 across all the company’s business verticals as new originations increased 34% to $397.9 million versus $296.3 million in the previous period. The company said Element Finance accounted for $230.9 million or 58% of the $397.9 million originated during the period. Element Capital accounted for $86.6 million or 22% of the new business volume while Element Fleet originated $80.4 million or 20% of the period’s new business volume.

Element said Q2/13 net financial income of $24.7 million compared to $22.8 million sequentially and $5.4 million in the same quarter in 2012.
The company reported a Q2/13 net loss of $13.9 million compared to $4.7 million in net income sequentially and a net loss of $5.8 million in Q2/12. Element said the net loss was a direct consequence of the inclusion of business acquisition costs of $25.8 million related to the GE Portfolio acquisition completed during the quarter. The company said business acquisition costs will continue to provide volatility to the net income of the company as it continues on its acquisition path.

The acquisition of the GE Fleet portfolio also added a further $488.7 million to the company’s portfolio of finance assets during the period. Finance receivables increased 45.9% to $2.1 billion at the end of the period versus $1.5 billion reported at the end of the previous period. Average finance receivables for the period were $1.5 billion versus $1.4 billion for the previous period. The slight increase resulted from the acquisition of the GE Fleet portfolio on the last day of the quarter.

“We’ve seen strong originations across all our business verticals during the period with a notable increase in our US business which originated $64.2 million of new business volume in Q2,” said Steven Hudson, Element’s chairman and CEO. “Even after backing out approximately $7 million of volume related to one-time transactions, I’m pleased to see that this business, which we acquired in December of last year, is tracking in line with expectations. We are also on track with our plans for the integration of the Canadian fleet management business that we acquired from GE Capital during the period and continue to expect to deliver on the anticipated earnings accretion from this transaction,” noted Hudson.

To read the Element Financial news release click here.