Q3 2024 Element Fleet Management Corp Earnings Call Transcript
Key Points
- Element Fleet Management Corp (ELEEF) reported double-digit year-over-year growth in net revenue, adjusted EPS, and adjusted free cash flow per share.
- The company added 38 new clients this quarter, with a significant portion being self-managed conversions, enhancing service penetration and utilization rates.
- Element Fleet Management Corp (ELEEF) completed the acquisition of Autofleet, which is expected to accelerate digitization and automation efforts in fleet management.
- The company raised its annual common dividend to CAD0.52 and plans to renew its normal-course issuer bid to return capital to shareholders in 2025.
- Syndication volumes were up 32% year-over-year, highlighting the depth of this funding source and contributing to revenue growth.
- The effective tax rate increased to just under 26% due to year-to-date adjustments, with expectations for it to remain around 25% for the full year.
- Higher funding costs, including higher standby fees and interest expenses from the redemption of preferred shares, created modest compression to net finance revenue margins.
- The company experienced a loss of two single-service clients, which impacted VAM, although the impact on revenue was minimal.
- Adjusted operating expenses increased by 9% year-over-year, driven by higher salaries, wages, and professional fees.
- The devaluation of the Mexican peso posed a challenge, impacting revenue growth and necessitating increased peso funding at higher borrowing rates.
Good morning, ladies and gentlemen and welcome to Element Fleet Management's third quarter financial results for 2024. At this time all participants are on listen only mode and you are reminded that this call is being recorded. (Operator Instructions)
Element wishes to caution listeners that today's information contains forward-looking information. The assumptions on which they are based and the material risks and uncertainties that could cause them to differ are outlined in the company's year-end and most recent MD&A as well as its most recent AIF. Although management believes that the expectations expressed in the statements are reasonable, actual results could differ materially.
The company also reminds listeners that today's call references certain non-GAAP and supplemental financial measures. Management measures performance on a reported and adjusted basis and considers both to be useful in providing readers with a better understanding of how it assesses results. A reconciliation of these non-GAAP measures -- financial measures to IFRS measures can be found in the company's most
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