Element Fleet Management Corp. reported financial results for the Company’s continuing operations for the three-month period ending March 31, 2017.
“We delivered a solid quarter, with key revenue drivers showing improvements as the quarter progressed”. said Bradley Nullmeyer, Element’s Chief Executive Officer. “Our services revenue continues to increase as a percentage of total revenue, net interest margin yield increased sequentially, and we expect our overall performance to continue to improve as we progress throughout the year”.
Selected financial data for the quarter ended, and as at, March 31, 2017:
- Total finance assets were $15.2 billion compared with $14.9 billion as at December 31, 2016.
- Originations were $1.7 billion, in line with the prior quarter and the same period of last year.
- After-tax adjusted operating income (as defined in the MD&A) was $100 million, relatively flat compared to Q4 2016 and a decrease of 10% compared to Q1 2016..
- Service and other revenue of $143.3 million grew on a sequential quarter basis by 2.2%, and represented ~61% of net revenue.
- Element recorded a $10.2 million before tax operating loss of its share of start-up losses related to 19th Capital. Adjusted operating income and related EPS exclude the impact of the operating losses related to this joint venture.
During the quarter, the company completed the integration in the U.S., and all customers are now on the same technology platform. Post integration activities are currently underway, and are expected to conclude in the second quarter.
“All of our customers now benefit from Element’s Xcelerate platform, and our technology and operations teams continue to work diligently on completing this final phase”, said Dan Jauernig, Element’s President and Chief Operating Officer.
Read the full release here.