Element Fleet Management Reports Q3 2017 Results
- Core fleet after-tax adjusted operating income of $0.18 per share - $165 million of capital returned to shareholders year to date - Continues to execute on growth strategy serving car sharing and ride sharing sectors
(firmenpresse) - TORONTO, ONTARIO -- (Marketwired) -- 11/08/17 -- Element Fleet Management Corp. (TSX: EFN) ("Element" or the "Company"), a leading global provider of fleet management and fleet-focused business services, today announced financial results for the three and nine month periods ended September 30, 2017. As disclosed in the second quarter of 2017, Element has adopted new segmentation of core fleet management and non-core assets. See the Company's Management Discussion & Analysis ("MD&A") for the three-month and nine-month periods ending September 30, 2017 for more information.
Summary Consolidated Results for the Third Quarter of 2017
"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 Chief Executive Officer. "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."
Recent Highlights
Core Fleet Management Operations
The following summarizes results from the Company's core Fleet management operations:
Non-core Operations
Element continues to execute on its strategy of optimizing value from non-core assets to enhance its capital structure and return capital to shareholders. Successfully completed non-core initiatives during Q3 2017 included the sale of approximately 60% of the heavy duty truck portfolio for $138 million, and the sale of US$23 million of Rail Notes, with both transactions yielding gross proceeds in excess of carrying book value. Net proceeds from asset sales were redeployed into capital return initiatives including share repurchases under the normal course issuer bid.
The Company continues to implement its strategic plan to improve operations in the 19th Capital joint venture. This plan includes moving vehicles to corporate fleets, expediting the sale or trade-in of certain units, and optimizing the composition of the fleet to improve overall efficiency. The Company expects these actions to right-size the operating fleet, increase utilization rates, and improve cash flows over time through the operation of newer and more efficient vehicles.
Net revenue for Non-Core operations was $17.2 million in Q3 2017 as compared with $19.4 million in Q3 2016 and $23.1 million in the preceding quarter. Results primarily reflected the sale of non-core assets and the run-off nature of the equipment finance portfolio in New Zealand.
Non-core assets now represent approximately 6% of Element's assets, down from 8% last quarter.
Dividends declared
The Company's Board of Directors has authorized and declared a quarterly dividend of $0.075 per outstanding common share of Element for the fourth quarter of 2017. The dividend will be paid on January 15, 2018 to shareholders of record as at the close of business on December 29, 2017. These dividends are designated to be eligible dividends for purposes of section 89(1) of the Income Tax Act (Canada).
The Company's Board of Directors also declared the following dividends on Element's preferred shares:
These dividends are designated to be eligible dividends for purposes of section 89(1) of the Income Tax Act (Canada).
Conference call
A conference call to discuss these results will be held on Wednesday, November 8, 2017 at 9:00 a.m. Eastern Time. The conference call may be accessed by dialing the following numbers:
A series of presentation slides will be referenced by management during the conference call. These slides will be available on the Company's website in advance of the call and may be accessed at .
The call will be recorded and may be accessed until December 29, 2017 by dialing 1-800-408-3053 or 905-694-9451 and entering the pass code 1046782#.
Non-IFRS Measures
The Company's unaudited interim condensed consolidated financial statements have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board ("IASB") and the accounting policies we adopted in accordance with IFRS.
The Company believes that certain Non-IFRS Measures can be useful to investors because they provide a means by which investors can evaluate the Company's underlying key drivers and operating performance of the business, exclusive of certain adjustments and activities that investors may consider to be unrelated to the underlying economic performance of the business of a given period. Throughout this Press Release, management used a number of terms and ratios which do not have a standardized meaning under IFRS and are unlikely to be comparable to similar measures presented by other organizations. A full description of these measures can be found in the Management Discussion & Analysis that accompanies the financial statements for the quarter ended September 30, 2017.
Element's unaudited interim condensed financial statements and related management discussion and analysis as at and for the three-month period ended September 30, 2017 have been filed on SEDAR ().
About Element Fleet Management Corp.
Element Fleet Management (TSX: EFN) is a leading global fleet management company, providing world-class management services and financing for commercial vehicle and equipment fleets. Element's suite of fleet management services span the total fleet lifecycle, from acquisition and financing to program management and remarketing - helping customers optimize performance and improve productivity. For more information, visit .
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, including, among others, statements regarding Element's technology platform and recent investments; growth opportunities presented by the evolving transportation and mobility sectors; the ability to drive operational efficiencies, safety improvements and lower cost of ownership; business growth and its ability to win new business, technological development, partnerships and strategy, the payment of dividends, repurchases of securities, capital allocation, expected annual results for core fleet management and non-core segments (including for various stated financial metrics), the strategies for Element's non-core assets, the refreshed strategic plan of the 19th Capital Group LLC joint venture, and expectations regarding financial performance. 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 fleet management and finance industries, economic factors, risks related to the completion of the purchase of new portfolios or technologies or the addition of new clients, risks related to the payment of dividends, risks relating to business integration 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. Accordingly, readers should not place undue reliance on any forward-looking statements or information. A discussion of the material risks and assumptions associated with this outlook can be found in Element's current MD&A, and Annual Information Form, all of which have been filed on SEDAR and can be accessed at . 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.
Contacts:
Zev Korman
SVP Investor Relations
(416) 646-5421
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Datum: 08.11.2017 - 12:00 Uhr
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