PHH Corporation announced it has retained J.P. Morgan Securities, Centerview Partners and Kirkland & Ellis to assist in exploring ways to maximize shareholder value through the separation or sale of the company’s Fleet business, Mortgage business, or both.

Glen A. Messina, president and CEO of PHH Corporation, said, “I’m proud of the meaningful improvements we made across our businesses in 2013 in the face of a challenging environment. We delivered on our plans to improve our operating efficiency while enhancing our liquidity and strengthening our financial position, which has increased our flexibility to address the challenges and capitalize on the opportunities that lie ahead.”

Messina added, “Our decision to explore a separation or sale of our businesses reflects our determination to maximize shareholder value. We appreciate the constructive input we have received from Orange Capital and our other shareholders in this regard.”

In the fourth quarter of 2013, PHH said Fleet Management Services segment profit was $22 million, up from $20 million in the fourth quarter of 2012. The growth in segment profit was primarily due to increases in truck lease syndication and services revenue, as we grew service unit counts in maintenance, fuel and accident management.

In 2013, FMS segment profit was $88 million, up from $87 million in 2012. Segment profit growth was primarily due to growth in revenue from truck lease syndications and dealerships and lower interest expense as our average cost of borrowing declined.

Fleet Leasing income increased $22 million in the fourth quarter of 2013 from the fourth quarter of 2012 and increased $22 million in the year ended 2013 from the year ended 2012, both primarily due to increased truck lease syndication volume. Net investment in fleet leases at the end of 2013 increased slightly from the end of 2012 while average leased vehicle units declined, reflecting the shift in the mix of our portfolio to more truck and service-type vehicles that have a higher initial capitalized cost.

Fleet management fees increased $2 million in the fourth quarter of 2013 when compared to the fourth quarter of 2012 primarily due to growth in services units. Fleet management fees decreased $5 million in 2013 when compared to 2012 primarily due to lower usage of driver training services.

PHH said the average leased vehicle fleet size for the year ended 2013 was 257,000 units versus an average of 265,000 units in 2012. Average accident management vehicles in 2013 were 313,000 compared to 307,000 similar vehicles in 2012.

To read the PHH Corporation news release click here.