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Element Fleet Reports Q2 Results, Progress on Transformation

August 01, 2019, 07:18 AM
Filed Under: Corporate Earnings

Element Fleet Management Corp. announced further progress on the company’s client-centric strategy in the second quarter.

Transformation work remains ahead of plan, the company said, with a cumulative $64.3 million of run-rate profit improvements actioned as of June 30, 2019 and delivering $20.7 million of operating income improvement year-to-date

The company reported Element’s market-leading fleet platform generated adjusted operating income of $95.9 million from its core business in Q2 2019, an increase of $20 million over Q2 2018.

On a consolidated basis, the company reported net income of $48.5 million for Q2 2019, compared to net income of $59.9 million in Q2 2018, with $15.6 million of additional one-time restructuring and transformation costs and $18.3 million in additional income tax expense offsetting $17.7 million in operating profit improvements.

Core assets under management have grown 4 percent since Q2 2018 and rose $151.4 million on a constant currency basis from Q1 2019.

“Less than a year into our transformation, we have fundamentally improved every aspect of Element’s business,” said Jay Forbes, President and Chief Executive Officer of Element. “Our dedicated focus on consistently delivering a superior experience to our clients has delivered meaningful and immediate value to them and while we still have more work to do, the team at Element is energized and excited for the remainder of 2019 – and beyond – to build on the momentum we have created to date.”

“The second quarter marked yet another period of excellent progress toward the key objectives of our strategy to create long-term, sustainable value: we advanced the transformation of our business by actioning and delivering more profitability improvement, and we accelerated the deleveraging and de-risking of our balance sheet.”

Element remains ahead of schedule on achieving the transformation objectives defined in its strategic plan. As of June 30, 2019, the company has actioned a cumulative $64 million of run-rate profit improvements, and is comfortably on target to action $75.7 million of profit improvement initiatives by the end of the year.

Initiatives actioned to date will improve Element's adjusted operating income by approximately $49 million in 2019. Of that amount, $12 million was delivered in Q2.

For more see the full release.

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