Element Reports Originations Volume of $7.7 Billion in 2015

March 03, 2016, 07:38 AM

Filed Under: Corporate Earnings

Related: Element Financial

Element Financial Corporation reported financial results for the three-months and year ending December 31, 2015. For the three months ended December 31, 2015 after tax adjusted operating income was $143.5 million, exceeding consensus estimates, versus $55.4 million for the same period last year. Free operating cash flow was $161.5 million compared to $71.8 million for the same period last year.

“This quarter provides investors with a first look at Element’s Fleet management business with the acquired GE portfolio fully loaded into these results,” noted Bradley Nullmeyer, Element’s President. “The process of integrating the acquired GE fleet operations is now well advanced and we are pleased report that we now expect to achieve US$100 million of savings from this integration. As a result, our Fleet business enters 2016 with an adjusted ROAA of 3.2% and is on track to exit the year at 4% plus,” added Mr. Nullmeyer.

Overall, new originations amounted to $2.5 billion for the three-month period ended December 31, 2015 representing a 47 percent increase over the $1.7 billion reported for the same period last year. Fleet Management accounted for $1,620 million of Q4 originations, while the Rail Finance vertical contributed $198 million. Aviation Finance accounted for $306 million of Q4 originations, while the Commercial & Vendor vertical accounted for $422 million.

Full year origination volumes amounted to $7.7 billion, which was well ahead of plan with respect to the Company’s previous full-year guidance of $6.5 billion of new originations during 2015, and represented an increase of 63 percent over the prior year.

Financial revenue for the three-month period ended December 31, 2015 was $409.2 million, or 8.3 percent of average earning assets versus, $175.7 million or 8.2 percent of average earning assets in the same period last year. Management fees and other revenue included in financial revenue amounted to $123.9 million during the fourth quarter of 2015 versus $54.8 million in the same period last year, representing an increase of 126 percent.

Read the full Element Financial Earnings Release.