Element Financial Corporation

Element Financial Corporation

January 28, 2015 16:13 ET

Element Increases 2015 EPS Outlook

TORONTO, ONTARIO--(Marketwired - Jan. 28, 2015) - Element Financial Corporation (TSX:EFN) ("Element" or "the Company"), one of North America's leading equipment finance companies, announced today that it has increased its 2015 outlook for adjusted operating earnings per share from $0.99 to $1.05. The Company's 2015 outlook for pre-tax adjusted earnings per share has been increased from $1.33 to $1.44. The Company confirmed that it expects to report adjusted earnings per share and pre-tax adjusted earnings per share for the fourth quarter of 2014 of $0.19 and $0.25 respectively.

The adjustment in the Company's 2015 outlook is attributable to the favourable translation effect arising from the expected increase in the value of the US dollar relative to the Canadian dollar throughout 2015. For 2015, Element expects to have approximately 50 percent of its revenue originated out of the US. By the end of 2015, the Company expects to have 70 percent of its total earning assets of $12.8 million in the US.

The quarterly distribution of earnings through 2015 is expected to continue to be weighted in favour the second half of the year. Together with the normal seasonal distribution of earnings through the year, the outlook for 2015 quarterly adjusted earnings has been revised as follows: $0.21 in Q1; $0.23 in Q2; $0.28 in Q3; $0.33 in Q4. Timing of the closing of new business opportunities and changes in business mix can result in the variation of these estimates between each quarter.

"We've analysed our 2015 business plan for sensitivity to a number of key economic variables, including sustained lower energy prices and a lower Canadian dollar and have increased our 2015 EPS outlook to reflect this analysis," said Steven Hudson, Element's Chairman and CEO.

About Element Financial Corporation

With total assets in excess of $11.0 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 - Commercial & Vendor Finance, Aviation Finance, Rail Finance and Fleet Management.

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 2015 earnings. 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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