Element Financial Corporation ( (“Element”), one of Canada’s leading independent equipment finance companies, today announced ahead of plan originations and profitability and financial results for the first quarter of calendar 2012.

“The financial results for the three-month-period ended March 31, 2012 reflect the transformation the Company underwent in the previous year and the continuation of our business strategy to expand into new verticals”, stated Steven Hudson, Chairman and Chief Executive Officer of Element. “We are especially proud of the financial results of the Company during the current quarter which saw Element achieving before tax break-even status and a record level of originations all ahead of plan,” further indicated Mr. Hudson. “We are also excited about the continued prospects for Element Capital including a significant new vendor finance program with Bombardier” added Mr. Hudson.

Growth of Element Capital

During the quarter ended March 31, 2012, Element established Element Capital, a business unit dedicated to large equipment financing and leasing transactions, which originated $93.4 million in new business volumes during the current quarter exceeding the Company’s originations target for the quarter. The new business unit is on track to continue its growth momentum for the balance of the year.

Growth of Element Financial

Element Financial, the mid-ticket equipment leasing business unit, also reported strong originations of $63.2 million for the quarter in line with the Company’s expectations and a 7% growth quarter over quarter. The Company expects continued growth in this business unit from increased brand awareness and as additional vendor programs are secured.
Financial Results Three-Month Period Ended March 31, 2012

Highlights:

• Total originations reached a record $156.6 million during the quarter ended March 31, 2012, an increase of $139.8 million over total originations reported for the quarter ended March 31, 2011.
• Total originations during the quarter for $156.6 million already exceed total originations of $136.2 million generated during the previous twelve month period.
• Total revenues reached a record level of $6.5 million during the quarter ended March 31, 2012, an increase of $5.8 million over revenues reported for the same period of the previous year.
• The Company’s net operating income from operations before non-cash share-based compensation expense for the three-month period ended March 31, 2012 was $0.9 million compared to a loss of $0.8 million for the same quarter of the previous year.
• The Company’s net loss before income taxes for the three-month period ended March 31, 2012 was $16,000 compared to a net loss before income taxes of $0.9 million for the three-month period ended March 31, 2011.

Read the full Q1 earnings press release.