EFN Preferreds Plunge

Element Fleet Management Corp. has announced:

Based upon consultation with several of our largest shareholders and with assistance of advisers, Element explored a broad spectrum of alternatives over the past year, including capital structure optimization and a sale of the Company. That review is complete, and the Company has determined that the best way to create long-term value for all stakeholders is to continue to execute on its strategy and remain focused on its customers, efficiency and the effectiveness of its operations.

After more than five years with Element in which he oversaw the creation and rapid growth of Element’s industry-leading platform, Bradley Nullmeyer will be retiring from his positions as Chief Executive Officer and Director, effective immediately. The Board of Directors is conducting a CEO search that will include the consideration of external and internal candidates. President and Chief Operating Officer Dan Jauernig has been appointed acting Chief Executive Officer.

Integration challenges noted above resulted in 2017 ending with a decline in service units from the third quarter, and as a result the Company expects 2018 core fleet adjusted operating income will be down approximately 3% to 5% on a currency neutral basis;

So, the company will not be sold, the CEO is leaving on very short notice with no successor in place, and earnings will fall in coming year. Nice!

So not only did the common get whacked (a little over 30%!) but the preferreds also got caught up in the horror, down about 10% each on the day:

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The news has brought a host of negative revisions from the entertainers.

Affected issues are EFN.PR.A, EFN.PR.C, EFN.PR.G and EFN.PR.I.

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