Element Fleet Management Corporation · TSX:EFN
Element Fleet Management — Corporate Update (June 2017)
8 slides from Element Fleet Management's corporate update, Jun 1, 2017
Slide 1: Analyst Update Call
Analyst Update Call June 1, 2017 Element Fleet Management Element Fleet Management - Analyst Update Call
Slide 2: Agenda
Agenda • Discussion of May 31st Trading Halt • Provide Update on 19th Capital Certain of the information we are sharing with you today includes forward-looking statements. These statements are based on expectations and assumptions that are subject to significant risks and uncertainties. Please refer
Slide 3: 19th Capital Update: Background of the relationship
19th Capital Update What is the background of the relationship? • Element has been funding these assets under a program agreement with Celadon since 2013 and into Q1 2016 • These assets were retained by Element Fleet post the separation as they are ‘Fleet Like’ assets • Strategy is to increase the p
Slide 4: 19th Capital Update: Why with Celadon?
19th Capital Update Why the Joint Venture with Celadon? • Provided Element with more operational control over assets funded and owned by Element • Completed with no additional financial exposure • Provided commonality of interest between the parties • Provided additional collateral available to supp
Slide 5: 19th Capital Update: How is it structured and operated?
19th Capital Update How is the Joint Venture structured and operated? • Element formed a heavy duty truck fleet leasing JV (called 19th Capital) with Celadon, both parties contributing truck leasing portfolios to the JV • Element contributed its portfolio of $963.4 million to the JV for debt of $829
Slide 6: 19th Capital Update: What is the focus?
19th Capital Update What is the Focus of the Joint Venture? • Incurred a non-cash $10.2 million start up loss from our share of the Joint Venture in Q1 • Focused on improving the JV’s operations, reducing the Q1 start up losses throughout 2017 and gaining profitability in 2018 • To increase the pene
Slide 7: 19th Capital Update: Celadon's status and impact to the JV
19th Capital Update Celadon’s status and impact to the JV? • 19th Capital is a separate entity and is bankruptcy remote from Celadon • Element does not have direct credit exposure to Celadon • The JV has less than 5% of its portfolio on lease to Celadon • Celadon’s auditors have withdrawn their repo
Slide 8: Questions
QUESTIONS Element Fleet Management - Analyst Update Call
Element Fleet Management — Corporate Update (June 2017) on 6ix