Element Fleet Management increased operating income 45% and increased service and other revenue to 55% of total revenue in 2016, due in large part to its acquisition-oriented growth strategy, the company announced.

In early 2016, Element spun off its fleet management business as it continued to integrate its acquisition of GE Capital's fleet management business acquired in August of 2015.

"This was a year of transformation for Element," said Bradley Nullmeyer, Element's CEO. "We successfully completed the separation announced in February 2016 and created a global fleet-focused business services provider, with a balance sheet, technology platform and suite of products to strengthen our leadership position and accelerate our growth further."

Element reported its 2016 and fourth quarter earnings on March 9 for the periods ending Dec. 31. The company also declared a threefold increase in its annual dividend and plans to distribute $116.4 million in 2017 compared to the $38.6 million paid to shareholders in 2016.

For 2016, Element logged after-tax adjusted operating income of $421.4 million, of which $385.8 million was attributable to common shareholders. Element increased its income to $1 per share, a 45% increase from the 69 cents per share reported in 2015.

Service and other revenue grew 96% to $513.7 million and represented 55% of total revenue compared with 49% in 2015.

Total earning assets were $13.97 billion versus $14.62 billion as at Dec. 31, 2015. Originations were $6.6 billion compared with $4.7 billion in the previous year.

"Performance during the year was predictably impacted by some one-time costs related to the integration and separation, and these are largely behind us," said Samir Zabaneh, Element's chief financial officer. "As Element's operations continue to normalize, among our priorities for 2017 is to revise our key performance indicators to reflect our transition to a fleet-focused business services provider."

Since 2012, Element has acquired four fleet management and services companies, including PHH Corp. in July of 2014 and TLS Fleet Management in 2012. This February, Element announced it had reached an agreement to acquire The CEI Group.