Element Q3/17 Originations Up 6%, Fleet Management Revenue Down 3% YTD

Element Fleet Management released its Q3/17 financial results, reporting core fleet management net revenue was C$655.5 million ($514.9 million) in the first nine months of the year, down 3.0% from C$675.9 million ($530.9 million) in the first nine months of 2016.

Other highlights from the earnings report included:

  • Originations in Q3/17 were C$1.44 billion ($1.13 billion), up 6% compared to C$1.36 billion ($1.07 billion) in Q3/16.
  • Element acquired a 12.5% interest in Splend, an Australian-based company that provides vehicles for on-demand rideshare and delivery services.
  • Element initiated fleet management services for an OEM car sharing program with a fleet currently approximating 5,000 vehicles.
  • Year to date, Element has returned C$165 million ($129.6 million) in capital to shareholders through increased dividends and share buybacks, compared to C$30 million ($23.6 million) for the same period in 2016. In the third quarter, Element repurchased 7.8 million common shares under its normal course issuer bid (NCIB) at an average price of C$8.75 ($6.87).
  • Element continues to maintain a strong financial position with approximately C$4.6 billion ($3.6 billion) of liquidity. Subsequent to quarter end, the company completed the issuance of $1 billion of rated term notes through its Chesapeake Funding II platform. The offering brought Element’s 2017 issuances to $3.2 billion, the most in a year from any fleet asset-backed security (ABS) issuer. Element also extended the maturity of its senior credit facility by one year to November 2020.
  • The company received an initial issuer rating of BBB+ with stable outlook from Fitch Ratings, and its investment grade ratings from Kroll Bond Rating Agency and DBRS were also recently affirmed at A- and BBB (high), respectively, each with a stable outlook.
  • Element held its annual Fleet Roundtable forum, the company’s largest-ever event of its kind, bringing together hundreds of fleet company executives, suppliers, business partners, automotive manufacturers and Element experts to share best practices and discuss the opportunities in fleet management.

“Over the last two years, we have developed and launched the industry’s most advanced fleet management and analytics platform to support our fleet customers and help them navigate the revolution currently underway in the transportation and mobility sector,” said Bradley Nullmeyer, Element’s CEO. “Connected vehicle, sharing economy and autonomous vehicle technology are combining to create significant opportunities. We are well positioned to capitalize on each of these trends as we help our customers to drive operational efficiencies, safety improvements and lower their total cost of ownership.”

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