PHH's Q1 2013 Financial Results Show Leasing Business Increase Over Q4 2012
PHH Corp. announced its financial results for the first quarter of 2013. The company’s fleet management services division showed a profit of $21 million, which is up $1 million from the fourth quarter of 2012 but down $3 million when compared with the first quarter of 2012.
PHH stated that the increase from Q4 2012 to Q1 2013 was due to an improvement in its leasing business but that the $3 million difference between Q1 2013 and Q1 2012 was due to a drop in fleet management fees and lower syndication results.
With regard to its fleet leasing business, the company stated that net investment in fleet leases as of March 31, 2013, represented a 1% increase compared to the end of 2012. The average number of leased vehicle units dropped by 1% during Q1 2013, which the company said was the result of higher capitalized units replacing lower cost vehicles. The company said this is consistent with its emphasis on service fleets.
For its fleet management fees, the company said that in Q1 2013, they fell by $4 million to $43 million (down from $47 million). This result was due to reduced client participation in driver safety training services. The company added that fleet management fees during Q1 2013 was at about the same level as it was during Q4 2012.
The company as a whole, including mortgage services, reported net income of $52 million.