Element Financial Corporation one of Canada’s leading independent equipment finance companies, providing equipment financing to owner/operators and to small and medium-sized businesses across North America, announced financial results for the fourth quarter of calendar 2011 as well as for the nine-month period ended December 31, 2011.

Nine-Month Period Ended December 31, 2011 Highlights Include:

• New business volumes for the nine-month period ended December 31, 2011 increased by $231.5 million or 497% to $278.1 million compared to the $46.6 million reported for the financial year ended March 31,2011.

• Total revenue grew to $10.4 million for the nine-month period ended December 31, 2011, an increase of $8.7 million or 501% over the $1.7 million reported for the financial year ended March 31, 2011.

• Net financial income grew to $5.9 million for the nine-month period ended December 31, 2011, an increase of $5.1 million or 653% compared to the $0.8 million reported for the financial year ended March 31, 2011.

• Finance receivables grew to $231.5 million as at December 31, 2011, an increase of $193.9 million or 516% compared to the $37.6 million reported as at March 31, 2011.

• Total assets grew to $416.7 million as at December 31, 2011 compared to the $47.1 million as at March 31, 2011.

• Shareholders’ equity grew to $238.3 million as at December 31, 2011, an increase of $230.3 million over the amount of $8.0 million reported as at March 31, 2011.

• The portfolio continues to perform extremely well with delinquencies at 0.28% of total finance receivables.

“The nine-month period ended December 31, 2011 was a transformational period for Element,” stated Steven Hudson, Chairman and Chief Executive Officer of Element. “We built an industry leading infrastructure, a capital structure and a portfolio management capacity capable of executing on our multi-billion dollar growth plans. We secured a leading and experienced management team, we expanded our labour force from 15 employees at the beginning of the period to over 80 employees today, we expanded our capital structure by raising $250 million from two separate private placements of common shares, we extended our term funding facilities with life insurance companies by adding a new facility while increasing the total facilities from $80 million to $195 million, we expanded our short term borrowing facilities with a Canadian Schedule 1 Bank to $25 million, and we accessed the public capital market as a result of the going-public transaction and amalgamation with Mira. In addition, Element invested approximately $160 million to acquire the assets and operations of Alter Moneta , providing the Company with a proven lease administration platform which historically has managed a $2+ billion North American lease portfolio. On January 30, 2012, we also announced the formation of Element Capital as a new business unit dedicated to large equipment financing and leasing transaction, including energy related assets, corporate aircraft and helicopters, rail and road transport, as well as large-scale construction equipment. We also have a strong and robust pipeline and are in various stage of discussion with regards to potential M&A opportunities. As a result of these growth initiatives and the additional and increased access to liquidity, Element is well positioned to continue on its growth plan to become a leading independent equipment finance company in North America” added Mr. Hudson.


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