Business
Element Reports Strong Growth in Operating Income in Q3-2013
After tax adjusted operating income increases 30% over Q2 to $13.6 million or $0.09 per ...
About this update from Element Fleet Management Corporation
[{"type":"text","content":"\n\n\nAfter tax adjusted operating income increases 30% over Q2 to $13.6\n million or $0.09 per share\n\n\n\nRecord volumes in commercial finance segment offset industry-wide fleet\n seasonality\n\n\nUS commercial finance originations increase 47% over Q2 to account for\n 23% of new business\n\n\nPurchase of $250 million helicopter portfolio establishes Element as a\n leader in the N.A. helicopter finance industry\n\n\n\nTORONTO, Nov. 13, 2013 /CNW/ - Element Financial Corporation (TSX:EFN)\n (\"Element\" or \"the Company\"), one of North America's leading\n independent equipment finance companies, today reported financial\n results for the three and nine month periods ending September 30, 2013\n showing strong growth in earnings and increased origination volumes in\n the Company's commercial finance business vertical offsetting the\n industry-wide third quarter seasonality of the fleet management\n vertical. US-based volumes accounted for 23% of new business in Q3\n versus 16% in the previous period and adjusted operating income\n increased 30% over the previous period.\n\n\n\"The mix of business that we booked in Q3 shows the strength and\n potential of the US-based origination team that we acquired late last\n year,\" said Steven Hudson, Element's Chairman and CEO. \"By removing the\n funding caps that had previously constrained their growth, this team is\n now tapping into a deep reservoir of high quality new business\n opportunities,\" added Mr. Hudson.\n\n\nAcross all segments, new originations grew to $410.4 million for the\n three month period versus $397.9 million in the previous period.\n Element Finance accounted for $260.5 million or 63%, Element Capital\n accounted for $91.6 million or 22% of the new business volume and\n Element Fleet originated $58.3 million or 14% of the period's new\n business volume.\n\n\nThe order book in the fleet industry is mainly driven by the replacement\n of existing vehicles that fleet operators take out of service before\n warranties expire.  Just as the weak 2009 order book set the stage for\n 2013, the improved industry outlook for 2014 is built on the strength\n of an improved 2010 order book.\n\n\n\"In addition to the macro effect of this replacement cycle, fleet\n operators will also seek to reduce their total cost of ownership by\n deferring the scheduled replacement of cert...