The Car and Truck Fleet and Leasing Management Magazine

PHH Corporation Announces Fourth Quarter Results

March 11, 2008

MT. LAUREL, N.J. - PHH Corporation announced results for the year ended December 31, 2007. Net revenues for the year ended December 31, 2007 were $2.24 billion compared to $2.29 billion for the same period in 2006, a decrease of 2 percent. Net loss for the 12 ended December 31, 2007 was $12 million, compared to a Net loss for the 12 months ended December 31, 2006 of $16 million. Basic and diluted loss per share for the twelve months ended December 31, 2007 was $0.23 compared to a loss of $0.29 for the same period in 2006.

Headquartered in Mount Laurel, New Jersey, PHH Corporation is a leading outsource provider of mortgage and vehicle fleet management services. Its subsidiary, PHH Mortgage, is one of the top 10 retail originators of residential mortgages in the United States, and its subsidiary, PHH Arval, is a leading fleet management services provider in the United States and Canada.

 Net revenues for the three months ended December 31, 2007 for the fleet management services segment were $475 million compared to Net revenues in the three months ended December 31, 2006 of $505 million. Segment profit for the three months ended December 31, 2007 was $35 million compared to $27 million for the three months ended December 31, 2006. The $35 million segment profit for the three months ended December 31, 2007 included a $10 million reduction in accruals due to the resolution of foreign non-income based tax contingencies.

The decrease of $30 million in net revenues in the fourth quarter of 2007 compared to the fourth quarter of 2006 was primarily due to lower syndication volume resulting from a decrease in heavy truck lease originations driven by lower industry-wide customer demand.

Also during the three months ended December 31, 2007 compared to the three months ended December 31, 2006, the average number of leased vehicles increased 2%, from 337,000 units to 343,000 units. Fuel card units decreased 2% from 327,000 units to 321,000 units, maintenance cards decreased 9% from 338,000 units to 309,000 units and accident management vehicle units decreased 3% from 335,000 units to 325,000 units.

Net revenues for the year ended December 31, 2007 were $1.86 billion compared to $1.83 billion for the year ended December 31, 2006. Segment profit for the year ended December 31, 2007 was $116 million versus $102 million for the same period in 2006.

    Highlights for the fleet management services segment included:

  •     Thirteen new clients signed during the three months ended

        December 31, 2007.

  •   Key maintenance partners added to the heavy truck and

        equipment maintenance program during the year.

  • Over 3,000 heavy trucks enrolled in the maintenance program as

        of December 31, 2007.

  • Signed a major new heavy truck account during the three months

        ended December 31, 2007.

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