Element Financial Corporation
TSX : EFN

Element Financial Corporation

December 16, 2014 16:00 ET

Element Financial Expects to Originate 75 Percent of 2015 New Business from the US

TORONTO, ONTARIO--(Marketwired - Dec. 16, 2014) - Element Financial Corporation (TSX:EFN) ("Element" or the "Company"), one of North America's leading equipment finance companies, announced today that it expects to organically originate approximately $6.5 billion of new equipment loans and leases during 2015 across the Company's four North American market verticals representing an increase of 35% over the $4.8 billion Element estimates it will originate in 2014. Approximately 75 percent of this new business volume is expected to originate in the United States.

In the Fleet Management vertical, Element expects to originate approximately $2.6 billion in new loans and leases in 2015 versus the $1.3 billion estimated for 2014. Element's Rail Finance vertical is expected to originate $1.3 billion of new railcar leasing business in 2015 versus the $1 billion of railcar leasing business estimated in 2014. In the Aviation Finance vertical, the Company expects to originate $1 billion in new business volume versus the $1 billion estimated for 2014. In the, Company's Commercial and Vendor Finance vertical, Element expects to grow its new business volume to $1.6 billion in 2015 versus the $1.5 billion estimated for 2014. Other fee-based revenue in the range of $20 million is expected to be originated from the Company's new Structured Finance team in 2015 in the rail and aviation sectors.

The Company also confirmed that its outlook for earnings per share for 2015 is generally in line with the current analyst consensus of $0.99 for the year with cash earnings per share expected to be approximately $1.33 for the year.

Although not required to fund the expected origination growth, Element also announced that it has added more liquidity by amending the terms of its $1.6 billion senior credit facility to include a $900 million accordion feature and expects $400 million of new lender commitments to close by the end of 2014. By the end of 2015, the Company expects to have assets in excess of $14 billion.

Further details of Element's outlook for 2015 are available under the "Presentations" section of the Company's website at www.elementcorp.com.

About Element Financial Corporation

With total assets in excess of $10.5 billion, Element Financial Corporation is one of North America's leading equipment finance companies. Element operates across North America in four verticals of the equipment finance market - Fleet Management, Rail Finance, Aviation Finance and Commercial & Vendor Finance.

Forward Looking Statements

This release includes forward-looking statements regarding Element and its business. Such statements are based on the current expectations and views of future events of Element's management. In some cases the forward-looking statements can be identified by words or phrases such as "may", "will", "expect", "plan", "anticipate", "intend", "potential", "estimate", "believe" or the negative of these terms, or other similar expressions intended to identify forward-looking statements. Forward-looking statements in this release include those related to expected origination volumes in each of the company's business verticals. The forward-looking events and circumstances discussed in this release may not occur and could differ materially as a result of known and unknown risk factors and uncertainties affecting Element, including risks regarding the equipment finance industry, economic factors and many other factors beyond the control of Element. No forward-looking statement can be guaranteed. Forward-looking statements and information by their nature are based on assumptions and involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statement or information. A discussion of the material risks and assumptions associated with this outlook can be found in the Company's prospectus supplements dated December 10, 2013, third quarter 2013 MD&A, and 2012 Annual Information Form, all of which have been filed on SEDAR and can be accessed at www.sedar.com. Accordingly, readers should not place undue reliance on any forward-looking statements or information. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and Element undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

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