UPDATE 2-Element Financial quarterly loss narrows as financing grows

Thu Feb 20, 2014 5:54pm EST

* Adjusted EPS C$0.09/shr, meeting analyst estimates

* Financial revenue doubles, transaction costs rise

* Company sees C$3.8 bln in new loans and leases in 2014

TORONTO, Feb 20 (Reuters) - Element Financial Corp, a Canadian equipment financing company, said on Thursday it narrowed its fourth-quarter loss as higher financial revenue more than made up for a jump in transaction costs.

Toronto-based Element posted a net loss of C$0.3 million ($271,000), or nil per share, in the quarter. That compared with a year-earlier loss of C$3.4 million, or 4 Canadian cents a share.

Excluding certain items, including transaction costs that grew to C$14.6 million in the quarter from C$9.9 million a year earlier, Element earned 9 Canadian cents a share, matching analysts' estimates, according to Thomson Reuters I/B/E/S.

Financial revenue more than doubled to C$50.9 million from C$21.9 million, as finance receivables jumped to C$3.01 billion from C$1.32 billion a year earlier.

Shares of Element, which provides financing to companies that buy car and truck fleets, helicopters, rail cars and other equipment, nearly doubled in 2013 as the company announced several leasing deals and acquisitions. The stock closed at C$13.30 on Thursday, ahead of the results.

Element said it expects to originate C$3.8 billion in organic new equipment loans and leases in 2014, up from C$2.1 billion in 2013.

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.