Element Reports 1.8% Increase in Q4/17 Core Fleet Originations

Element Fleet Management reported core fleet originations in Q4/17 were C$1.46 billion ($1.13 billion) compared to C$1.44 billion ($1.11 billion) in Q3/17 and C$1.43 billion ($1.10 billion) in Q4/16.

During the quarter, Element continued to make advances providing fleet management services to the ride sharing and car sharing sectors, launching its programs with General Motors’ car sharing platform, Maven, and with Splend, an Australian based company that provides vehicles for on-demand rideshare and delivery services.

Element reported approximately C$4.7 billion ($3.62 billion) of liquidity to finance future business. During the fourth quarter, Element completed the issuance of $1 billion of rated term notes through its Chesapeake Funding II platform, bringing its total 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.

“Since completing our strategic review and providing the corporate update earlier this quarter, we have moved quickly to take the necessary steps to reign in operating expenses while optimizing the customer experience and positioning the company for a return to earnings growth in 2019,” said Dan Jauernig, acting CEO. “We continue to expect core fleet adjusted operating income for 2018 to be within 3% to 5% of 2017 results on a currency adjusted basis. We expect financial results to build throughout the year, while continuing to generate strong cash flows, access capital markets, and execute on a solid pipeline of new business.”

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