Element Reports Solid Second Quarter and First Half Results Amounts in $CAD unless otherwise noted
- Q2 net revenue grew 4.4% year-over-year; 12.8% before the impact of changes in FX
- Element’s scalable operating platform magnified net revenue growth into significantly higher year-over-year adjusted operating income growth of 13.8% (23.4% before FX) to $126.5 million, equivalent to $0.20 adjusted EPS
- Syndication advanced the Company’s capital-lighter business model with $611 million of assets sold in Q2, helping enhance pre-tax return on common equity by 100 basis points quarter-over-quarter to 15.3%
- ROE-accretive service revenue grew 7.9% year-over-year and 1.4% quarter-over-quarter before the impact of changes in FX, led by the U.S. and Canada where client vehicle usage is approaching pre-pandemic levels
- Q2 free cash flow of $0.26 per share is a $0.01 increase over Q2 2020 and $0.03 increase over prior quarter; $0.04 increases in both cases before FX
- Element returned $217.7 million of cash to common shareholders in the quarter by way of dividends and the repurchase of 13,515,159 common shares for cancellation pursuant to its normal course issuer bid (NCIB)
TORONTO, July 27, 2021 (GLOBE NEWSWIRE) -- Element Fleet Management Corp. (TSX: EFN) (“Element” or the “Company”), the largest pure-play automotive fleet manager in the world, today announced financial and operating results for the second quarter and first half ended June 30, 2021 that reflect the Company’s continuing focus on its strategic priorities of (i) driving profitable net revenue growth, (ii) advancing a capital lighter-business model that enhances return on equity, and thereby (iii) generating significant free cash flow to return to shareholders.
Element’s market-leading fleet management business generated adjusted operating income (AOI) of $126.5 million, equivalent to $0.20 per share for the quarter. AOI increased $15.4 million or 13.8% from Q2 of last year, driven by healthy net financing revenue and modest syndication revenue growth coupled with $5.5 million or 4.8% lower adjusted operating expenses. Element reported net income of $80.9 million or $0.17 per share for the quarter, a $0.06 per share increase year-over-year and $0.03 per share decrease quarter-over-quarter. Q2 free cash flow of $0.26 per share is $0.01 higher than in Q2 2020 and $0.03 higher than prior quarter; $0.04 increases in both cases before the impact of changes in FX.
https://www.globenewswire.com/news-release/2021/07/27/2269892/0/en/Element-Reports-Solid-Second-Quarter-and-First-Half-Results-Reflecting-Focus-on-Growth-Priorities.html