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Corpay Announces Preliminary Third Quarter 2024 Financial Results

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Corpay (NYSE: CPAY) has released preliminary Q3 2024 financial results, with expected revenue of $1.029 billion. The company reported stable same-store sales and segment results aligned with expectations. Expected earnings per diluted share is $3.90, with adjusted earnings per diluted share at $5.00. The company reiterates its full-year adjusted EPS guidance of $19.00 and projects low double-digit organic revenue growth for Q4, with an annualized Cash EPS exit run-rate above $21.00.

Corpay (NYSE: CPAY) ha pubblicato i risultati finanziari preliminari per il terzo trimestre 2024, con un fatturato atteso di 1,029 miliardi di dollari. L'azienda ha riportato vendite stabili negli stessi punti vendita e risultati di segmento in linea con le aspettative. L'utile per azione diluito previsto è di 3,90 dollari, con un utile rettificato per azione diluito a 5,00 dollari. L'azienda ribadisce le previsioni per l'intero anno riguardo l'utile per azione rettificato di 19,00 dollari e prevede una crescita organica del fatturato a cifra bassa a due cifre per il quarto trimestre, con un tasso di uscita annualizzato dell'EPS in contante superiore a 21,00 dollari.

Corpay (NYSE: CPAY) ha publicado los resultados financieros preliminares del tercer trimestre de 2024, con ingresos esperados de 1,029 mil millones de dólares. La empresa reportó ventas estables en las mismas tiendas y resultados por segmentos alineados con las expectativas. Se espera que las ganancias por acción diluida sean de 3.90 dólares, con ganancias ajustadas por acción diluida en 5.00 dólares. La empresa reitera su guía de ganancias por acción ajustadas para todo el año de 19.00 dólares y proyecta un crecimiento orgánico en ingresos de dos dígitos bajo para el cuarto trimestre, con una tasa de salida de ganancias por acción en efectivo anualizada superior a 21.00 dólares.

Corpay (NYSE: CPAY)는 2024년 3분기 예비 재무 결과를 발표했으며, 예상 매출이 10억 2900만 달러입니다. 이 회사는 동일 매장 판매와 세그먼트 결과가 예상에 부합한다고 보고했습니다. 예상 희석 주당 이익은 3.90 달러이며, 조정된 희석 주당 이익은 5.00 달러입니다. 이 회사는 연간 조정 주당 이익 가이드를 19.00 달러로 재확인하고 있으며, 4분기에는 유기적 매출 성장률이 두 자릿수 저조를 예상하고, 연간화된 현금 주당 이익 종료 실행 속도가 21.00 달러를 초과할 것으로 보입니다.

Corpay (NYSE: CPAY) a publié les résultats financiers préliminaires du troisième trimestre 2024, avec des revenus attendus de 1,029 milliard de dollars. L'entreprise a rapporté des ventes en magasin stables et des résultats de segment conformes aux attentes. Les bénéfices par action diluée attendus s'élèvent à 3,90 dollars, avec un bénéfice ajusté par action diluée à 5,00 dollars. L'entreprise réaffirme ses prévisions de bénéfice par action ajusté de 19,00 dollars pour l'année entière et prévoit une croissance organique à deux chiffres inférieure au quatrième trimestre, avec un taux de sortie annuel de bénéfice par action en espèces supérieur à 21,00 dollars.

Corpay (NYSE: CPAY) hat die vorläufigen Finanzzahlen für das dritte Quartal 2024 veröffentlicht, mit einem erwarteten Umsatz von 1,029 Milliarden Dollar. Das Unternehmen berichtete von stabilen Same-Store-Umsätzen und Segmentergebnissen, die den Erwartungen entsprachen. Der erwartete Gewinn pro verwässerter Aktie liegt bei 3,90 Dollar, während der bereinigte Gewinn pro verwässerter Aktie bei 5,00 Dollar liegt. Das Unternehmen bekräftigt seine Gesamtjahresprognose für den bereinigten Gewinn pro Aktie von 19,00 Dollar und rechnet im vierten Quartal mit einem organischen Umsatzwachstum im niedrigen zweistelligen Bereich, wobei die annualisierte Cash EPS-Austrittsgeschwindigkeit über 21,00 Dollar liegen soll.

Positive
  • Revenue reached $1.029 billion in Q3 2024
  • Earnings per diluted share of $3.90
  • Adjusted earnings per diluted share of $5.00
  • Projected low double-digit organic revenue growth for Q4
  • Expected annualized Cash EPS exit run-rate above $21.00
Negative
  • Same-store sales remained flat in Q3
  • Results are preliminary and subject to potential material adjustments

Insights

The preliminary Q3 results demonstrate solid performance with revenue reaching $1.029 billion and adjusted EPS of $5.00. The stable same-store sales and projected low double-digit organic revenue growth in Q4 signal resilient business fundamentals. The anticipated Cash EPS run-rate above $21.00 suggests strong cash flow generation and operational efficiency.

The reiteration of full-year adjusted EPS guidance at $19.00 provides stability in forward-looking expectations. However, investors should note these are preliminary results subject to final accounting procedures. The CEO's increased confidence in Q4 outlook, coupled with the performance option grant modification, indicates potential upside in near-term execution.

ATLANTA--(BUSINESS WIRE)-- Corpay, Inc. (NYSE: CPAY), a corporate payments company, today announced certain preliminary financial results for its third quarter ended September 30, 2024.

Preliminary Financial Results for Third Quarter of 2024:

  • Revenue is expected to be $1.029 billion
    • Same store sales remained stable sequentially in the third quarter, and were essentially flat
    • Segment results in line with our expectations
  • Earnings per diluted share is expected to be $3.90
  • Adjusted earnings per diluted share is expected to be $5.001
  • Reiterating full year adjusted earnings per share guidance of $19.001, at the mid-point provided on August 7, 2024

“We’re pleased that our third quarter results finished at the higher end of our revenue and earnings guidance ranges. Our confidence in our fourth quarter outlook is higher today than in August, and calls for low double digit organic revenue growth, and an annualized Cash EPS exit run-rate above $21.00,” said Ron Clarke, chairman and chief executive officer, Corpay, Inc.

The Company will hold its regularly scheduled earnings call at 5:00 pm on November 7, 2024.

The Company also filed today a Form 8-K related to a modification to the CEO 2021 performance option grant.

Preliminary Results:

The preliminary estimated financial results for the quarter ended September 30, 2024 included in this press release are preliminary, unaudited and subject to completion, and may change as a result of management’s continued review. Such preliminary results are subject to the finalization of quarter-end financial and accounting procedures. While carrying out such procedures, Corpay may identify items that would require it to make adjustments to the preliminary estimates of financial results set forth herein. As a result, Corpay’s actual financial results could differ than the information set forth herein and such differences could be material.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about Corpay’s beliefs, assumptions, expectations and future performance, are forward-looking statements. Forward-looking statements can be identified by the use of words such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project” or “expect,” “may,” “will,” “would,” “could” or “should,” the negative of these terms or other comparable terminology.

These forward-looking statements are not a guarantee of performance, and you should not place undue reliance on such statements. We have based these forward-looking statements largely on preliminary information, internal estimates and management assumptions, expectations and plans about future conditions, events and results. Forward-looking statements are subject to many uncertainties and other variable circumstances, such as our ability to successfully execute our strategic plan, manage our growth and achieve our performance targets; the impact of macroeconomic conditions, including any recession that has occurred or may occur in the future, and whether expected trends, including retail fuel prices, fuel price spreads, fuel transaction patterns, electric vehicle, and retail lodging price trends develop as anticipated and we are able to develop successful strategies in light of these trends; our ability to attract new and retain existing partners, fuel merchants, and lodging providers, their promotion and support of our products, and their financial performance; the failure of management assumptions and estimates, as well as differences in, and changes to, economic, market, interest rate, interchange fees, foreign exchange rates, and credit conditions, including changes in borrowers’ credit risks and payment behaviors; the risk of higher borrowing costs and adverse financial market conditions impacting our funding and liquidity, and any reduction in our credit ratings; our ability to successfully manage our credit risks and the sufficiency of our allowance for expected credit losses; our ability to securitize our trade receivables; the occurrence of fraudulent activity, data breaches or failures of our information security controls or cybersecurity-related incidents that may compromise our systems or customers’ information; any disruptions in the operations of our computer systems and data centers; the international operational and political risks and compliance and regulatory risks and costs associated with international operations; the impact of international conflicts, including between Russia and Ukraine, as well as within the Middle East, on the global economy or our business and operations; our ability to develop and implement new technology, products, and services; any alleged infringement of intellectual property rights of others and our ability to protect our intellectual property; the regulation, supervision, and examination of our business by foreign and domestic governmental authorities, as well as litigation and regulatory actions, including the lawsuit filed by the Federal Trade Commission (FTC); the impact of regulations and related requirements relating to privacy, information security and data protection; derivative and hedging activities; use of third-party vendors and ongoing third-party business relationships; and failure to comply with anti-money laundering (AML) and anti-terrorism financing laws; changes in our senior management team and our ability to attract, motivate and retain qualified personnel consistent with our strategic plan; tax legislation initiatives or challenges to our tax positions and/or interpretations, and state sales tax rules and regulations; the risks of mergers, acquisitions and divestitures, including, without limitation, the related time and costs of implementing such transactions, integrating operations as part of these transactions and possible failures to achieve expected gains, revenue growth and/or expense savings from such transactions; our ability to remediate material weaknesses and the ongoing effectiveness of internal control over financial reporting; our restatement of prior quarterly financial statements discussed in our Annual Report of Form 10-K for the year ended December 31, 2024 (the "2023 Form 10-K") may affect investor confidence and raise reputational issues and may subject us to additional risks and uncertainties, including increased professional costs and the increased possibility or legal proceedings and regulatory inquiries, as well as the other risks and uncertainties identified under the caption "Risk Factors" in the 2023 Form 10-K filed with the Securities and Exchange Commission (“SEC”) on February 29, 2024 and subsequent filings with the SEC made by us. These factors could cause our actual results and experience to differ materially from any forward-looking statement made herein. The forward-looking statements included in this press release are made only as of the date hereof and we do not undertake, and specifically disclaim, any obligation to update any such statements as a result of new information, future events or developments, except as specifically stated or to the extent required by law. You may access Corpay’s SEC filings for free by visiting the SEC web site at www.sec.gov.

About Non-GAAP Financial Measures:

This press release includes non-GAAP financial measures, which are used by the Company as supplemental measures to evaluate its overall operating performance. The Company’s definitions of the non-GAAP financial measures used herein may differ from similarly titled measures used by others, including within our industry. By providing these non-GAAP financial measures, together with reconciliations to the most directly comparable GAAP financial measures, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing strategic initiatives. See the appendix for additional information regarding these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP measure.

The Company refers to free cash flow, cash net income and adjusted net income attributable to Corpay interchangeably, a non-GAAP financial measure. Adjusted net income attributable to Corpay is calculated as net income attributable to Corpay, adjusted to eliminate (a) non-cash stock based compensation expense related to stock based compensation awards, (b) amortization of deferred financing costs, discounts, intangible assets, amortization of the premium recognized on the purchase of receivables, and amortization attributable to the Company's noncontrolling interest (c) integration and deal related costs, and (d) other non-recurring items, including unusual credit losses, the impact of discrete tax items, the impact of business dispositions, impairment charges, asset write-offs, restructuring costs, loss on extinguishment of debt, and legal settlements and related legal fees. We adjust net income for the tax effect of adjustments using our effective income tax rate, exclusive of discrete tax items. We calculate adjusted net income attributable to Corpay and adjusted net income per diluted share attributable to Corpay to eliminate the effect of items that we do not consider indicative of our core operating performance.

Adjusted net income attributable to Corpay and adjusted net income per diluted share attributable to Corpay are supplemental measures of operating performance that do not represent and should not be considered as an alternative to net income, net income per diluted share or cash flow from operations, as determined by U.S. generally accepted accounting principles, or U.S. GAAP. We believe it is useful to exclude non-cash share based compensation expense from adjusted net income because non-cash equity grants made at a certain price and point in time do not necessarily reflect how our business is performing at any particular time and share based compensation expense is not a key measure of our core operating performance. We also believe that amortization expense can vary substantially from company to company and from period to period depending upon their financing and accounting methods, the fair value and average expected life of their acquired intangible assets, their capital structures and the method by which their assets were acquired; therefore, we have excluded amortization expense from our adjusted net income. Integration and deal related costs represent business acquisition transaction costs, professional services fees, short-term retention bonuses and system migration costs, etc., that are not indicative of the performance of the underlying business. We also believe that certain expenses, discrete tax items, gains on business disposition, recoveries (e.g. legal settlements, write-off of customer receivable, etc.), gains and losses on investments, and impairment charges do not necessarily reflect how our investments and business are performing. We adjust net income for the tax effect of each of these adjustments items using the effective tax rate during the period, exclusive of discrete tax items.

Management uses adjusted net income per diluted share attributable to Corpay:

  • as a measurement of operating performance because they assist us in comparing our operating performance on a consistent basis;
  • for planning purposes, including the preparation of our internal annual operating budget;
  • to allocate resources to enhance the financial performance of our business; and
  • to evaluate the performance and effectiveness of our operational strategies.

About Corpay

Corpay (NYSE: CPAY) is a global S&P 500 corporate payments company that helps businesses and consumers manage and pay expenses in a simple, controlled manner. Corpay’s suite of modern payment solutions help its customers better manage vehicle-related expenses (e.g. fueling and parking), travel expenses (e.g. hotel bookings) and accounts payable (e.g. paying vendors). This results in our customers saving time and ultimately spending less. Corpay – Payments made easy. For more information, please visit www.corpay.com.

1 Reconciliation of expected GAAP results to non-GAAP results is provided in Exhibit 1. A reconciliation of GAAP guidance to non-GAAP guidance was previously provided on Form 8-K, as filed with the SEC on August 7, 2024.

Exhibit 1

 

RECONCILIATION OF NON-GAAP MEASURES

(In millions, except shares and per share amounts)

(Unaudited)

 

 

The following table reconciles net income attributable to Corpay and net income attributable to Corpay per diluted share to adjusted net income attributable to Corpay and adjusted net income per diluted share attributable to Corpay:*

 

 

Three Months Ended
September 30,

 

 

 

2024

 

Net income attributable to Corpay

 

$

276

 

Net income per diluted share attributable to Corpay

 

$

3.90

 

 

 

 

Stock based compensation

 

 

29

 

Amortization1

 

 

61

 

Other2

 

 

12

 

Total pre-tax adjustments

 

$

102

 

 

 

 

Income taxes3

 

 

(23

)

Adjusted net income attributable to Corpay

 

$

355

 

Adjusted net income per diluted share attributable to Corpay

 

$

5.00

 

 

 

 

Diluted shares

 

 

71

 

 

 

 

1 Includes consolidated amortization related to intangible assets, premium on receivables, deferred financing costs and debt discounts.

2 Includes losses and gains on foreign currency transactions, legal expenses, and removes the amortization attributable to the Company's noncontrolling interest.

3 Represents provision for income taxes of pre-tax adjustments.

* Columns may not calculate due to rounding.

Exhibit 2

RECONCILIATION OF NON-GAAP GUIDANCE MEASURES

(In millions, except per share amounts)

(Unaudited)

 

The following table reconciles full year 2024 financial guidance for net income to adjusted net income and adjusted net income per diluted share, at both ends of the range:

 

 

2024 GUIDANCE

Low*

High*

Net income

$

1,056

 

$

1,086

 

Net income per diluted share

$

14.77

 

$

15.07

 

 

 

 

Stock based compensation

 

108

 

 

108

 

Amortization

 

235

 

 

235

 

Other

$

42

 

$

42

 

Total pre-tax adjustments

$

385

 

$

385

 

 

 

 

Income taxes

 

(91

)

 

(91

)

Adjusted net income

$

1,350

 

$

1,380

 

Adjusted net income per diluted share

$

18.85

 

$

19.15

 

 

 

 

Diluted shares

 

72

 

 

72

 

 

 

 

* Columns may not calculate due to rounding.

 

 

 

Investor Relations

Jim Eglseder, 770-417-4697

Jim.Eglseder@corpay.com

Media Relations

Chad Corley, 770-729-5021

Chad.Corley@corpay.com

Source: Corpay, Inc.

FAQ

What is Corpay's (CPAY) expected revenue for Q3 2024?

Corpay's preliminary expected revenue for Q3 2024 is $1.029 billion.

What is Corpay's (CPAY) projected earnings per share for Q3 2024?

Corpay expects earnings per diluted share of $3.90 and adjusted earnings per diluted share of $5.00 for Q3 2024.

What is Corpay's (CPAY) full-year 2024 earnings guidance?

Corpay reiterates its full-year 2024 adjusted earnings per share guidance of $19.00 at the mid-point.

What is Corpay's (CPAY) Q4 2024 growth projection?

Corpay projects low double-digit organic revenue growth for Q4 2024, with an annualized Cash EPS exit run-rate above $21.00.

Corpay, Inc.

NYSE:CPAY

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