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gelement Element Reports Solid Second Quarter and First Half Results Reflecting Focus on Growth Priorities News Release 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 , ON , July 27 , 2021 - 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 . " We are managing our business with steady focus on our three strategic growth priorities and delivering a consistent , superior service experience to our clients , " said Jay Forbes , President and Chief Executive Officer of Element . " In doing so , we are seeing progress on every front . We grew second quarter and first half net revenues in excess of our target 4-6 % on a constant currency basis , and our scalable operating platform magnified that revenue growth into a double - digit increase in adjusted operating income . Growth in service revenue and syndication advanced our capital - lighter business model , further improving return on equity for the quarter . And we continued to generate strong cash flow , which we view as the most important measure of Element's performance , allowing us to return $ 217.7 million of cash to common shareholders in the quarter by way of dividends and share buybacks . " " Client demand for new vehicles was up 56 % in the first half of this year from the first half of last year as measured by U.S. and Canadian order volumes in constant currency , with ANZ and Mexico client order volumes up 46 % and 42 % respectively on the same basis , " Mr. Forbes continued . " With OEM production delays from microchip shortages constraining origination volumes across our platform , the substantial increase in orders has resulted in the largest order backlogs on record in each of our geographies . As OEM production capacity normalizes , which we believe will 1