Element Fleet Management 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.

“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

• Originations in the third quarter of 2017 were $1.44 billion, up 6% compared to $1.36 billion in Q3 2016, and Element continues to make significant advances providing fleet management services to the ride sharing/car sharing sector.
• Element acquired a 12.5% interest in Splend, an Australian based company that provides vehicles for on-demand rideshare and delivery services.
• Element initiated fleet management services for an OEM car sharing program with a fleet currently approximating 5,000 vehicles.
• Year to date, Element has returned $165 million in capital to shareholders through increased dividends and share buybacks, compared to $30 million for the same period in 2016. In the third quarter, Element repurchased 7.8 million common shares under its normal course issuer bid (NCIB) at an average price of $8.75.
• Element continues to maintain a strong financial position with approximately $4.6 billion of liquidity. Subsequent to quarter end, the Company completed the issuance of US$1 billion of rated term notes through its Chesapeake Funding II platform. The offering brought Element’s 2017 issuances to US$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.
• The Company received an initial issuer rating of BBB+ with stable outlook from Fitch Ratings, and its investment grade ratings from Kroll Bond Rating Agency and DBRS, Inc. were also recently affirmed at A- and BBB (high), respectively, each with a stable outlook.
• Element held its annual Fleet Roundtable forum, the Company’s largest-ever event of its kind, bringing together hundreds of fleet company executives, suppliers, business partners, automotive manufacturers and Element experts to share best practices and discuss the opportunities in fleet management.

Read the full release here.