Element Financial Corporation ("Element" or "the Company"), reported strong financial results across all of its business segments generating operating income of $12 million for the three month period on finance revenue of $31.8 million resulting in after tax operating income per share of $0.08. Total assets increased to $1.8 billion and book value per share increased to $4.75.
Element Finance accounted for $186 million or 63% of the $296 million originated during the period. Element Capital accounted for $51 million or 17% of the new business volume while Element Fleet originated $59 million or 20% of the period's new business volume. In addition to these organic origination volumes, the Company acquired $84 million of loan originations during the period as a result of closing the previously announced acquisition of Nexcap Finance Corp. Finance receivables increased to $1.5 billion at the end of the period versus $1.3 billion reported at the end of the previous period.
In addition to closing the Nexcap acquisition in early January, during the period the Company announced plans to establish the Element Equipment Finance Fund (the Fund) as a funding vehicle to more efficiently finance transactions in the $1.5 million to $25 million range. The Company closed a $173 million bought deal equity financing in mid-March in conjunction with the capitalization of the Fund which is designed to complement the Company's existing securitization and syndication arrangements.
"We have made very substantial progress on developing the capital foundations for the Fund since we first outlined our intentions to pursue this strategy several weeks ago," said Steven Hudson, Element's Chairman and CEO. "All of the work that has been completed since then by our bankers and the rating agencies continues to support our enhanced return expectations and we remain on track to operationalize this facility in the second quarter," noted Mr. Hudson. "We continue to see strong and profitable business opportunities across each of our market segments and the results from the first quarter affirm our new business origination, operating income and earnings outlook for the year," added Mr. Hudson.
To read the full Element Financial news release, click here.