FLEETCOR® Reports Fourth Quarter and Full Year 2023 Financial Results
- Record annual revenues and earnings for 2023
- 10% increase in revenues and 13% increase in EBITDA
- Plans to repurchase $800 million of shares in 2024
- Meaningful advances in EV capabilities
- Pockets of softness in some U.S. businesses impacting Q4 revenue and adjusted earnings per share
Insights
The announcement of FLEETCOR Technologies reporting all-time record annual revenues and earnings represents a significant milestone for the company and its shareholders. The reported 10% organic revenue growth and 13% EBITDA growth align with the company's long-term growth targets, indicating a robust strategic execution. The 19% growth in the Corporate Payments segment is particularly noteworthy as it now accounts for over a quarter of the total revenue, suggesting a successful diversification of revenue streams.
From a financial perspective, the increase in net income per diluted share by 15% in Q4 and 6% for the full year is a strong indicator of profitability and shareholder value. The share repurchase plan of $800 million, coupled with an upsized authorization, reflects management's confidence in the company's future performance and its commitment to returning value to shareholders. It's also important to note the strategic financial maneuvering with the interest rate swaps to manage exposure to fluctuating interest rates.
The expansion of FLEETCOR's EV capabilities and establishing the best charge point network in the UK and Western Europe, including the addition of Tesla in Q4, positions the company favorably in the rapidly growing electric vehicle market. This strategic move may not only enhance their competitive advantage but also attract environmentally conscious investors and partners.
However, the CFO's mention of 'pockets of softness in some of our U.S. businesses', which contributed to the fourth quarter revenue and adjusted earnings per share falling slightly behind expectations, warrants attention. Investors and analysts should monitor these areas closely for potential risks or downward trends that could impact future performance.
The company's strong balance sheet, with over $2.2 billion in liquidity and low leverage, provides financial flexibility in an uncertain economic environment. The guidance for 2024, forecasting 20% sales growth and mid-teens adjusted net income growth, is optimistic and suggests confidence in the company's strategic initiatives and market conditions. However, it is crucial to consider external economic factors such as fluctuating fuel prices, fuel spreads and foreign exchange rates, which are mentioned in the guidance assumptions. These factors could significantly influence FLEETCOR's performance, especially since their business is sensitive to such variables.
All-time record annual revenues and earnings
Increased Revolver capacity
“2023 was a very successful year for the Company. We delivered full year organic revenue growth of
Financial Results for Fourth Quarter of 2023:
GAAP Results
-
Revenues increased
6% to in the fourth quarter of 2023, compared with$937.3 million in the fourth quarter of 2022.$883.6 million -
Net income increased
14% to in the fourth quarter of 2023, compared with$255.9 million in the fourth quarter of 2022.$225.3 million -
Net income per diluted share increased
15% to in the fourth quarter of 2023, compared with$3.48 per diluted share in the fourth quarter of 2022.$3.03
Non-GAAP Results1
-
EBITDA1 increased
11% to in the fourth quarter of 2023, compared to$508.1 million in the fourth quarter of 2022.$459.3 million -
Adjusted net income1 increased
9% to in the fourth quarter of 2023 compared with$326.1 million in the fourth quarter of 2022.$300.2 million -
Adjusted net income per diluted share1 increased
10% to in the fourth quarter of 2023, compared with$4.44 per diluted share in the fourth quarter of 2022.$4.04
Financial Results for Full Year 2023:
GAAP Results
-
Revenues increased
10% to in 2023, compared with$3,757.7 million in 2022.$3,427.1 million -
Net income increased
3% to in 2023, compared with$981.9 million in 2022.$954.3 million -
Net income per diluted share increased
6% to in 2023, compared with$13.20 per diluted share in 2022.$12.42
Non-GAAP Results1
-
EBITDA1 increased
13% to in 2023, compared with$1,994.2 million in 2022.$1,769.2 million -
Adjusted net income1 increased
2% to in 2023, compared with$1,258.6 million in 2022.$1,236.7 million -
Adjusted net income per diluted share1 increased
5% to in 2023, compared with$16.92 in 2022.$16.10
“Our fourth quarter revenue and adjusted earnings per share came in slightly behind our expectations due to pockets of softness in some of our
Interest Rate Swaps and Buybacks:
The Company repurchased approximately 0.6 million shares in the fourth quarter of 2023 and a total of 2.6 million shares for
Increased Revolver Capacity,
On January 31, 2024, the Company closed on an amendment to its pro rata Term Loan A and Revolver A Credit Facility. The transaction results in a
In addition, the Company expects to enter into a 10b5-1 plan, which supports the Company's plan to repurchase up to
Fiscal Year 2024 Outlook:
“Our 2024 outlook for the Company calls for
For full year 2024, FLEETCOR Technologies, Inc. financial guidance1 is as follows:
-
Total revenues between
and$4,040 million ;$4,120 million -
GAAP net income between
and$1,090 million ;$1,130 million -
GAAP net income per diluted share between
and$15.40 ;$15.80 -
Adjusted net income between
and$1,360 million ; and$1,400 million -
Adjusted net income per diluted share between
and$19.20 .$19.60
FLEETCOR’s guidance assumptions for the full year are as follows:
-
Weighted average
U.S. fuel prices equal to per gallon;$3.65 - Fuel spreads flat with the 2023 average;
- Foreign exchange rates equal to the historical 30-day average;
-
Interest expense between
and$340 million ;$370 million - Bad debt expense slightly below 2023;
- Approximately 71 million fully diluted shares outstanding;
-
A tax rate of approximately
25% to26% ; and - No impact related to material acquisitions not already closed.
First Quarter of 2024 Outlook:
The Company expects first quarter revenues between
Conference Call:
The Company will host a conference call to discuss fourth quarter and full year 2023 financial results today at 5:30 pm ET. Hosting the call will be Ron Clarke, chief executive officer, Tom Panther, chief financial officer and Jim Eglseder, investor relations. The conference call can be accessed live via webcast from the Company's investor relations website at http://investor.fleetcor.com. A replay will be available one hour after the call and can be accessed by dialing (844) 512-2921 or (412) 317-6671 for international callers; the conference ID is 10185832. The replay will be available until Wednesday, February 14, 2024. Prior to the conference call, the Company will post supplemental financial information on their website that will be discussed during the call and live webcast.
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 FLEETCOR’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 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 successfully execute our strategic plan, manage our growth and achieve our performance targets; 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
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 interchangeably, a non-GAAP financial measure. Adjusted net income is calculated as net income, adjusted to eliminate (a) non-cash share based compensation expense related to share based compensation awards, (b) amortization of deferred financing costs, discounts, intangible assets, and amortization of the premium recognized on the purchase of receivables, (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 and adjusted net income per diluted share to eliminate the effect of items that we do not consider indicative of our core operating performance.
Adjusted net income and adjusted net income per diluted share 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
Organic revenue growth is calculated as revenue growth in the current period adjusted for the impact of changes in the macroeconomic environment (to include fuel price, fuel price spreads and changes in foreign exchange rates) over revenue in the comparable prior period adjusted to include or remove the impact of acquisitions and/or divestitures and non-recurring items that have occurred subsequent to that period. We believe that organic revenue growth on a macro-neutral, one-time item, and consistent acquisition/divestiture/non-recurring item basis is useful to investors for understanding the performance of FLEETCOR.
EBITDA is defined as earnings before interest, income taxes, interest expense, net, other expense (income), depreciation and amortization, loss on extinguishment of debt, investment loss/gain and other operating, net. EBITDA margin is defined as EBITDA as a percentage of revenue.
Management uses adjusted net income, adjusted net income per diluted share, organic revenue growth and EBITDA:
- as measurements 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 FLEETCOR®
FLEETCOR Technologies (NYSE: FLT) is a leading global business payments company that helps businesses spend less by providing innovative solutions that enable and control expense-related purchasing and payment processes. The FLEETCOR portfolio of brands automate, secure, digitize and manage payment transactions on behalf of businesses across more than 150 countries in
__________________________________________________________________________________
1 Reconciliations of GAAP results to non-GAAP results are provided in Exhibit 1, 5 and 6 attached. Additional supplemental data is provided in Exhibits 2-4. A reconciliation of GAAP guidance to non-GAAP guidance is provided in Exhibit 7.
FLEETCOR Technologies, Inc. and Subsidiaries Consolidated Statements of Income (In thousands, except per share amounts) |
|||||||||||||||||||||
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
|||||||||||||||||
|
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
|||||||||
|
|
(Unaudited) |
|
(Unaudited) |
|
|
|
(Unaudited) |
|
|
|
|
|||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Revenues, net |
|
$ |
937,320 |
|
|
$ |
883,610 |
|
|
6 |
% |
|
$ |
3,757,719 |
|
|
$ |
3,427,129 |
|
10 |
% |
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Processing |
|
|
201,459 |
|
|
|
201,610 |
|
|
— |
% |
|
|
819,908 |
|
|
|
764,707 |
|
7 |
% |
Selling |
|
|
86,199 |
|
|
|
78,864 |
|
|
9 |
% |
|
|
340,157 |
|
|
|
309,082 |
|
10 |
% |
General and administrative |
|
|
141,545 |
|
|
|
143,873 |
|
|
(2 |
)% |
|
|
603,424 |
|
|
|
584,135 |
|
3 |
% |
Depreciation and amortization |
|
|
83,946 |
|
|
|
89,793 |
|
|
(7 |
)% |
|
|
336,604 |
|
|
|
322,282 |
|
4 |
% |
Other operating, net |
|
|
120 |
|
|
|
200 |
|
|
NM |
|
|
|
753 |
|
|
|
282 |
|
NM |
|
Total operating expense |
|
|
513,269 |
|
|
|
514,340 |
|
|
— |
% |
|
|
2,100,846 |
|
|
|
1,980,488 |
|
6 |
% |
Operating income |
|
|
424,051 |
|
|
|
369,270 |
|
|
15 |
% |
|
|
1,656,873 |
|
|
|
1,446,641 |
|
15 |
% |
Other expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Investment loss (gain) |
|
|
26 |
|
|
|
863 |
|
|
NM |
|
|
|
(116 |
) |
|
|
1,382 |
|
NM |
|
Other (income) expense, net |
|
|
(1,513 |
) |
|
|
(3,184 |
) |
|
NM |
|
|
|
(16,623 |
) |
|
|
3,003 |
|
NM |
|
Interest expense, net |
|
|
92,041 |
|
|
|
74,152 |
|
|
24 |
% |
|
|
348,607 |
|
|
|
164,662 |
|
112 |
% |
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
NM |
|
|
|
— |
|
|
|
1,934 |
|
NM |
|
Total other expense |
|
|
90,554 |
|
|
|
71,831 |
|
|
26 |
% |
|
|
331,868 |
|
|
|
170,981 |
|
94 |
% |
Income before income taxes |
|
|
333,497 |
|
|
|
297,439 |
|
|
12 |
% |
|
|
1,325,005 |
|
|
|
1,275,660 |
|
4 |
% |
Provision for income taxes |
|
|
77,640 |
|
|
|
72,120 |
|
|
8 |
% |
|
|
343,115 |
|
|
|
321,333 |
|
7 |
% |
Net income |
|
$ |
255,857 |
|
|
$ |
225,319 |
|
|
14 |
% |
|
$ |
981,890 |
|
|
$ |
954,327 |
|
3 |
% |
Basic earnings per share |
|
$ |
3.55 |
|
|
$ |
3.07 |
|
|
16 |
% |
|
$ |
13.42 |
|
|
$ |
12.62 |
|
6 |
% |
Diluted earnings per share |
|
$ |
3.48 |
|
|
$ |
3.03 |
|
|
15 |
% |
|
$ |
13.20 |
|
|
$ |
12.42 |
|
6 |
% |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic shares |
|
|
72,065 |
|
|
|
73,484 |
|
|
|
|
|
73,155 |
|
|
|
75,598 |
|
|
||
Diluted shares |
|
|
73,475 |
|
|
|
74,246 |
|
|
|
|
|
74,387 |
|
|
|
76,862 |
|
|
||
FLEETCOR Technologies, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands, except share and par value amounts) |
||||||||
|
|
December 31, 2023 |
|
December 31, 2022 |
||||
|
|
(Unaudited) |
|
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
1,389,648 |
|
|
$ |
1,435,163 |
|
Restricted cash |
|
|
1,431,189 |
|
|
|
854,017 |
|
Accounts and other receivables (less allowance) |
|
|
2,124,160 |
|
|
|
2,064,745 |
|
Securitized accounts receivable — restricted for securitization investors |
|
|
1,307,000 |
|
|
|
1,287,000 |
|
Prepaid expenses and other current assets |
|
|
474,144 |
|
|
|
465,227 |
|
Total current assets |
|
|
6,726,141 |
|
|
|
6,106,152 |
|
Property and equipment, net |
|
|
343,154 |
|
|
|
294,692 |
|
Goodwill |
|
|
5,670,924 |
|
|
|
5,201,435 |
|
Other intangibles, net |
|
|
2,085,663 |
|
|
|
2,130,974 |
|
Investments |
|
|
69,521 |
|
|
|
74,281 |
|
Other assets |
|
|
254,315 |
|
|
|
281,726 |
|
Total assets |
|
$ |
15,149,718 |
|
|
$ |
14,089,260 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
1,628,419 |
|
|
$ |
1,568,942 |
|
Accrued expenses |
|
|
315,268 |
|
|
|
351,936 |
|
Customer deposits |
|
|
2,076,581 |
|
|
|
1,505,004 |
|
Securitization facility |
|
|
1,307,000 |
|
|
|
1,287,000 |
|
Current portion of notes payable and lines of credit |
|
|
819,749 |
|
|
|
1,027,056 |
|
Other current liabilities |
|
|
320,612 |
|
|
|
303,517 |
|
Total current liabilities |
|
|
6,467,629 |
|
|
|
6,043,455 |
|
Notes payable and other obligations, less current portion |
|
|
4,596,156 |
|
|
|
4,722,838 |
|
Deferred income taxes |
|
|
496,198 |
|
|
|
527,465 |
|
Other noncurrent liabilities |
|
|
307,376 |
|
|
|
254,009 |
|
Total noncurrent liabilities |
|
|
5,399,730 |
|
|
|
5,504,312 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Common stock |
|
|
129 |
|
|
|
128 |
|
Additional paid-in capital |
|
|
3,266,185 |
|
|
|
3,049,570 |
|
Retained earnings |
|
|
8,192,659 |
|
|
|
7,210,769 |
|
Accumulated other comprehensive loss |
|
|
(1,289,099 |
) |
|
|
(1,509,650 |
) |
Treasury stock |
|
|
(6,887,515 |
) |
|
|
(6,209,324 |
) |
Total stockholders’ equity |
|
|
3,282,359 |
|
|
|
2,541,493 |
|
Total liabilities and stockholders’ equity |
|
$ |
15,149,718 |
|
|
$ |
14,089,260 |
|
FLEETCOR Technologies, Inc. and Subsidiaries Consolidated Statements of Cash Flows (In thousands) |
||||||||
|
|
Year Ended December 31, |
||||||
|
|
2023 |
|
2022 |
||||
|
|
(Unaudited) |
|
|
||||
Operating activities |
|
|
|
|
||||
Net income |
|
$ |
981,890 |
|
|
$ |
954,327 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation |
|
|
109,983 |
|
|
|
92,010 |
|
Stock-based compensation |
|
|
116,086 |
|
|
|
121,416 |
|
Provision for credit losses on accounts and other receivables |
|
|
125,152 |
|
|
|
131,096 |
|
Amortization of deferred financing costs and discounts |
|
|
7,249 |
|
|
|
7,748 |
|
Amortization of intangible assets and premium on receivables |
|
|
226,621 |
|
|
|
230,272 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
1,934 |
|
Deferred income taxes |
|
|
(46,678 |
) |
|
|
(33,174 |
) |
Gain on disposition of business, net |
|
|
(13,712 |
) |
|
|
— |
|
Other non-cash operating expense, net |
|
|
637 |
|
|
|
1,664 |
|
Changes in operating assets and liabilities (net of acquisitions/disposition): |
|
|
|
|
||||
Accounts and other receivables |
|
|
(173,760 |
) |
|
|
(598,674 |
) |
Prepaid expenses and other current assets |
|
|
69,287 |
|
|
|
(17,543 |
) |
Derivative assets and liabilities, net |
|
|
(33,278 |
) |
|
|
(11,260 |
) |
Other assets |
|
|
42,932 |
|
|
|
(41,068 |
) |
Accounts payable, accrued expenses and customer deposits |
|
|
367,835 |
|
|
|
(83,951 |
) |
Net cash provided by operating activities |
|
|
1,780,244 |
|
|
|
754,797 |
|
Investing activities |
|
|
|
|
||||
Acquisitions, net of cash acquired |
|
|
(428,327 |
) |
|
|
(216,917 |
) |
Purchases of property and equipment |
|
|
(153,822 |
) |
|
|
(151,428 |
) |
Proceeds from disposal of a business, net of cash disposed |
|
|
197,025 |
|
|
|
— |
|
Other |
|
|
4,401 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(380,723 |
) |
|
|
(368,345 |
) |
Financing activities |
|
|
|
|
||||
Proceeds from issuance of common stock |
|
|
113,742 |
|
|
|
49,404 |
|
Repurchase of common stock |
|
|
(686,859 |
) |
|
|
(1,405,200 |
) |
Borrowings on securitization facility, net |
|
|
20,000 |
|
|
|
169,000 |
|
Deferred financing costs |
|
|
(376 |
) |
|
|
(10,355 |
) |
Proceeds from notes payable |
|
|
— |
|
|
|
3,000,000 |
|
Principal payments on notes payable |
|
|
(94,000 |
) |
|
|
(2,824,000 |
) |
Borrowings from revolver |
|
|
8,734,960 |
|
|
|
7,236,000 |
|
Payments on revolver |
|
|
(9,118,960 |
) |
|
|
(6,526,000 |
) |
Borrowings on swing line of credit, net |
|
|
135,568 |
|
|
|
194 |
|
Other |
|
|
(2,286 |
) |
|
|
(271 |
) |
Net cash used in financing activities |
|
|
(898,211 |
) |
|
|
(311,228 |
) |
Effect of foreign currency exchange rates on cash |
|
|
30,347 |
|
|
|
(36,739 |
) |
Net increase in cash and cash equivalents and restricted cash |
|
|
531,657 |
|
|
|
38,485 |
|
Cash and cash equivalents and restricted cash, beginning of year |
|
|
2,289,180 |
|
|
|
2,250,695 |
|
Cash and cash equivalents and restricted cash, end of year |
|
$ |
2,820,837 |
|
|
$ |
2,289,180 |
|
Supplemental cash flow information |
|
|
|
|
||||
Cash paid for interest, net |
|
$ |
448,384 |
|
|
$ |
229,641 |
|
Cash paid for income taxes, net |
|
$ |
408,340 |
|
|
$ |
358,231 |
|
Exhibit 1 RECONCILIATION OF NON-GAAP MEASURES (In thousands, except shares and per share amounts) (Unaudited) |
||||||||||||||||
The following table reconciles net income to adjusted net income and adjusted net income per diluted share:* |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net income |
|
$ |
255,857 |
|
|
$ |
225,319 |
|
|
$ |
981,890 |
|
|
$ |
954,327 |
|
|
|
|
|
|
|
|
|
|
||||||||
Stock based compensation |
|
|
26,169 |
|
|
|
20,588 |
|
|
|
116,086 |
|
|
|
121,416 |
|
Amortization1 |
|
|
57,823 |
|
|
|
66,648 |
|
|
|
233,870 |
|
|
|
238,020 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1,934 |
|
Integration and deal related costs |
|
|
5,926 |
|
|
|
4,824 |
|
|
|
30,660 |
|
|
|
18,895 |
|
Restructuring, related and other costs2 |
|
|
808 |
|
|
|
5,420 |
|
|
|
3,825 |
|
|
|
6,690 |
|
Legal settlements/litigation |
|
|
793 |
|
|
|
1,366 |
|
|
|
2,750 |
|
|
|
6,051 |
|
Gain on disposition of business |
|
|
— |
|
|
|
— |
|
|
|
(13,712 |
) |
|
|
— |
|
Total pre-tax adjustments |
|
|
91,519 |
|
|
|
98,846 |
|
|
|
373,479 |
|
|
|
393,006 |
|
Income taxes3 |
|
|
(21,241 |
) |
|
|
(23,967 |
) |
|
|
(96,781 |
) |
|
|
(110,634 |
) |
Adjusted net income |
|
$ |
326,135 |
|
|
$ |
300,198 |
|
|
$ |
1,258,588 |
|
|
$ |
1,236,699 |
|
Adjusted net income per diluted share |
|
$ |
4.44 |
|
|
$ |
4.04 |
|
|
$ |
16.92 |
|
|
$ |
16.10 |
|
Diluted shares |
|
|
73,475 |
|
|
|
74,246 |
|
|
|
74,387 |
|
|
|
76,862 |
|
1 Includes amortization related to intangible assets, premium on receivables, deferred financing costs and debt discounts. |
2 Includes impact of foreign currency transactions; prior amounts were not material for recast |
3 Includes |
* Columns may not calculate due to rounding. |
Exhibit 2 Key Performance Indicators, by Segment and Revenue Per Performance Metric on a GAAP Basis and Pro Forma and Macro Adjusted (In millions except revenues, net per key performance metric) (Unaudited) |
||||||||||||||||
The following table presents revenue and revenue per key performance metric by segment.* |
||||||||||||||||
|
As Reported |
|
Pro Forma and Macro Adjusted2 |
|||||||||||||
|
Three Months Ended December 31, |
|
Three Months Ended December 31, |
|||||||||||||
|
2023 |
|
2022 |
|
Change |
|
% Change |
|
2023 |
|
2022 |
|
Change |
|
% Change |
|
VEHICLE PAYMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Revenues, net |
|
|
|
|
|
|
—% |
|
|
|
|
|
|
|
|
|
- Transactions |
193.9 |
|
151.5 |
|
42.4 |
|
|
|
193.9 |
|
184.8 |
|
9.2 |
|
|
|
- Revenues, net per transaction |
|
|
|
|
|
|
(22)% |
|
|
|
|
|
|
|
—% |
|
- Tag transactions3 |
20.3 |
|
19.0 |
|
1.4 |
|
|
|
20.3 |
|
19.0 |
|
1.4 |
|
|
|
- Parking transactions |
58.7 |
|
— |
|
58.7 |
|
|
|
58.7 |
|
50.6 |
|
8.1 |
|
|
|
- Fleet transactions |
108.5 |
|
127.5 |
|
(19.0) |
|
(15)% |
|
108.5 |
110.2 |
|
(1.7) |
|
(2)% |
||
- Other transactions |
6.3 |
|
5.0 |
|
1.3 |
|
|
|
6.3 |
|
5.0 |
|
1.3 |
|
|
|
CORPORATE PAYMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Revenues, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Spend volume |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Revenues, net per spend $ |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LODGING PAYMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Revenues, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
—% |
|
- Room nights |
8.7 |
|
9.0 |
|
(0.3) |
|
(3)% |
|
8.7 |
|
9.0 |
|
|
|
(4)% |
|
- Revenues, net per room night |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OTHER1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Revenues, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Transactions |
444.8 |
|
362.7 |
|
82.1 |
|
|
|
444.8 |
|
362.7 |
|
82.1 |
|
|
|
- Revenues, net per transaction |
|
|
|
|
|
|
(13)% |
|
|
|
|
|
|
|
(14)% |
|
FLEETCOR CONSOLIDATED REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- Revenues, net |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Other includes Gift and Payroll Card operating segments. |
2 See Exhibit 5 for a reconciliation of Pro forma and Macro Adjusted revenue by segment and metrics, non-GAAP measures, to the GAAP equivalent. |
3 Represents total tag subscription transactions in the quarter. Average monthly tag subscriptions for the fourth quarter of 2023 is 6.8 million. |
* Columns may not calculate due to rounding. |
Exhibit 3 Revenues by Geography and Segment (In millions) (Unaudited) |
||||||||||||||||||||||||
Revenue by Geography* |
Three Months Ended December 31, |
|
Year Ended December 31, |
|||||||||||||||||||||
|
2023 |
|
% |
|
2022 |
|
% |
|
2023 |
|
% |
|
2022 |
|
% |
|||||||||
US |
$ |
525 |
|
56 |
% |
|
$ |
536 |
|
61 |
% |
|
$ |
2,135 |
|
57 |
% |
|
$ |
2,094 |
|
61 |
% |
|
|
|
143 |
|
15 |
% |
|
|
119 |
|
13 |
% |
|
|
525 |
|
14 |
% |
|
|
442 |
|
13 |
% |
|
|
|
108 |
|
12 |
% |
|
|
85 |
|
10 |
% |
|
|
441 |
|
12 |
% |
|
|
363 |
|
11 |
% |
|
Other |
|
161 |
|
17 |
% |
|
|
143 |
|
16 |
% |
|
|
656 |
|
17 |
% |
|
|
528 |
|
15 |
% |
|
Consolidated Revenues, net |
$ |
937 |
|
100 |
% |
|
$ |
884 |
|
100 |
% |
|
$ |
3,758 |
|
100 |
% |
|
$ |
3,427 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
*Columns may not calculate due to rounding. |
Revenue by Segment* | Three Months Ended December 31, |
|
Year Ended December 31, |
|||||||||||||||||||||
|
2023 |
|
% |
|
2022 |
|
% |
|
2023 |
|
% |
|
2022 |
|
% |
|||||||||
Vehicle Payments |
$ |
500 |
|
53 |
% |
|
$ |
501 |
|
57 |
% |
|
$ |
2,006 |
|
53 |
% |
|
$ |
1,950 |
|
57 |
% |
|
Corporate Payments |
|
251 |
|
27 |
% |
|
|
201 |
|
23 |
% |
|
|
981 |
|
26 |
% |
|
|
770 |
|
23 |
% |
|
Lodging Payments |
|
120 |
|
13 |
% |
|
|
119 |
|
13 |
% |
|
|
520 |
|
14 |
% |
|
|
457 |
|
13 |
% |
|
Other |
|
67 |
|
7 |
% |
|
|
62 |
|
7 |
% |
|
|
251 |
|
7 |
% |
|
|
251 |
|
7 |
% |
|
Consolidated Revenues, net |
$ |
937 |
|
100 |
% |
|
$ |
884 |
|
100 |
% |
|
$ |
3,758 |
|
100 |
% |
|
$ |
3,427 |
|
100 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
*Columns may not calculate due to rounding. In the fourth quarter of 2023, in order to align with recent changes in the organizational structure and management reporting, the Company has recast its segments into Vehicle Payments, Corporate Payments, Lodging Payments and Other. The presentation of segment information has been recast for the prior period to align with segment presentation for the year ended December 31, 2023. |
Exhibit 4 Segment Results (In thousands) |
||||||||||||||||||
|
Three Months Ended December 31,* |
|
Year Ended December 31,* |
|||||||||||||||
|
|
20231 |
|
2022 |
|
% Change |
|
20231 |
|
2022 |
|
% Change |
||||||
Revenues, net: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Vehicle Payments |
|
$ |
499,758 |
|
$ |
501,082 |
|
— |
% |
|
$ |
2,005,510 |
|
$ |
1,950,038 |
|
3 |
% |
Corporate Payments |
|
|
251,101 |
|
|
201,016 |
|
25 |
% |
|
|
981,127 |
|
|
769,571 |
|
27 |
% |
Lodging Payments |
|
|
119,929 |
|
|
119,074 |
|
1 |
% |
|
|
520,216 |
|
|
456,511 |
|
14 |
% |
Other2 |
|
|
66,532 |
|
|
62,438 |
|
7 |
% |
|
|
250,866 |
|
|
251,009 |
|
— |
% |
|
|
$ |
937,320 |
|
$ |
883,610 |
|
6 |
% |
|
$ |
3,757,719 |
|
$ |
3,427,129 |
|
10 |
% |
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Vehicle Payments |
|
$ |
242,505 |
|
$ |
226,337 |
|
7 |
% |
|
$ |
943,399 |
|
$ |
884,493 |
|
7 |
% |
Corporate Payments |
|
|
101,092 |
|
|
67,159 |
|
51 |
% |
|
|
382,085 |
|
|
273,562 |
|
40 |
% |
Lodging Payments |
|
|
57,438 |
|
|
56,836 |
|
1 |
% |
|
|
254,270 |
|
|
218,637 |
|
16 |
% |
Other2 |
|
|
23,016 |
|
|
18,938 |
|
22 |
% |
|
|
77,119 |
|
|
69,949 |
|
10 |
% |
|
|
$ |
424,051 |
|
$ |
369,270 |
|
15 |
% |
|
$ |
1,656,873 |
|
$ |
1,446,641 |
|
15 |
% |
Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Vehicle Payments |
|
$ |
49,724 |
|
$ |
51,598 |
|
(4 |
)% |
|
$ |
201,905 |
|
$ |
198,495 |
|
2 |
% |
Corporate Payments |
|
|
20,323 |
|
|
24,851 |
|
(18 |
)% |
|
|
78,679 |
|
|
72,586 |
|
8 |
% |
Lodging Payments |
|
|
11,655 |
|
|
11,037 |
|
6 |
% |
|
|
46,903 |
|
|
42,366 |
|
11 |
% |
Other2 |
|
|
2,244 |
|
|
2,307 |
|
(3 |
)% |
|
|
9,117 |
|
|
8,835 |
|
3 |
% |
|
|
$ |
83,946 |
|
$ |
89,793 |
|
(7 |
)% |
|
$ |
336,604 |
|
$ |
322,282 |
|
4 |
% |
Capital expenditures: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Vehicle Payments |
|
$ |
26,261 |
|
$ |
31,189 |
|
(16 |
)% |
|
$ |
108,592 |
|
$ |
111,661 |
|
(3 |
)% |
Corporate Payments |
|
|
5,972 |
|
|
7,583 |
|
(21 |
)% |
|
|
25,387 |
|
|
20,777 |
|
22 |
% |
Lodging Payments |
|
|
3,171 |
|
|
3,502 |
|
(9 |
)% |
|
|
13,705 |
|
|
10,570 |
|
30 |
% |
Other2 |
|
|
1,260 |
|
|
1,523 |
|
(17 |
)% |
|
|
6,138 |
|
|
8,420 |
|
(27 |
)% |
|
|
$ |
36,664 |
|
$ |
43,797 |
|
(16 |
)% |
|
$ |
153,822 |
|
$ |
151,428 |
|
2 |
% |
1 Results from Global Reach Group acquired in the first quarter of 2023 are reported in our Corporate Payments segment. Results from Mina Digital Limited and Business Gateway AG acquired in the first quarter of 2023 are reported in our Vehicle Payments segment. Results from PayByPhone acquired in the third quarter of 2023 are reported in our Vehicle Payments segment. The recent disposition of our Russian business is included in our Vehicle Payments segment. |
2 Other includes Gift and Payroll Card operating segments. |
*Columns may not calculate due to rounding. In the fourth quarter of 2023, in order to align with recent changes in the organizational structure and management reporting, the Company has recast its segments into Vehicle Payments, Corporate Payments, Lodging Payments and Other. The presentation of segment information has been recast for the prior period to align with segment presentation for the year ended December 31, 2023. |
Exhibit 5 Reconciliation of Non-GAAP Revenue and Key Performance Metric by Segment to GAAP (In millions) (Unaudited) |
||||||||||||||||
|
Revenues, net |
|
|
Key Performance Metric |
||||||||||||
|
|
Three Months Ended December 31, |
|
Three Months Ended December 31, |
||||||||||||
|
|
2023* |
|
2022* |
|
|
2023* |
|
2022* |
|||||||
VEHICLE PAYMENTS - TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|||||||
Pro forma and macro adjusted |
|
$ |
497.8 |
|
|
$ |
476.1 |
|
|
|
|
193.9 |
|
|
184.8 |
|
Impact of acquisitions/dispositions |
|
|
— |
|
|
|
24.9 |
|
|
|
|
— |
|
|
(33.3 |
) |
Impact of fuel prices/spread |
|
|
(14.8 |
) |
|
|
— |
|
|
|
|
— |
|
|
— |
|
Impact of foreign exchange rates |
|
|
16.7 |
|
|
|
— |
|
|
|
|
— |
|
|
— |
|
As reported |
|
$ |
499.8 |
|
|
$ |
501.1 |
|
|
|
|
193.9 |
|
|
151.5 |
|
CORPORATE PAYMENTS - SPEND |
|
|
|
|
|
|
|
|
|
|||||||
Pro forma and macro adjusted |
|
$ |
248.8 |
|
|
$ |
215.6 |
|
|
|
$ |
33,583 |
|
$ |
32,053 |
|
Impact of acquisitions/dispositions |
|
|
— |
|
|
|
(14.6 |
) |
|
|
|
— |
|
|
(2,078 |
) |
Impact of fuel prices/spread |
|
|
(0.2 |
) |
|
|
— |
|
|
|
|
— |
|
|
— |
|
Impact of foreign exchange rates |
|
|
2.5 |
|
|
|
— |
|
|
|
|
— |
|
|
— |
|
As reported |
|
$ |
251.1 |
|
|
$ |
201.0 |
|
|
|
$ |
33,583 |
|
$ |
29,975 |
|
LODGING PAYMENTS - ROOM NIGHTS |
|
|
|
|
|
|
|
|
|
|||||||
Pro forma and macro adjusted |
|
$ |
119.6 |
|
|
$ |
120.1 |
|
|
|
|
8.7 |
|
|
9.0 |
|
Impact of acquisitions/dispositions |
|
|
— |
|
|
|
(1.0 |
) |
|
|
|
— |
|
|
(0.1 |
) |
Impact of fuel prices/spread |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
— |
|
Impact of foreign exchange rates |
|
|
0.3 |
|
|
|
— |
|
|
|
|
— |
|
|
— |
|
As reported |
|
$ |
119.9 |
|
|
$ |
119.1 |
|
|
|
|
8.7 |
|
|
9.0 |
|
OTHER1- TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|||||||
Pro forma and macro adjusted |
|
$ |
66.2 |
|
|
$ |
62.4 |
|
|
|
|
444.8 |
|
|
362.7 |
|
Impact of acquisitions/dispositions |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
— |
|
Impact of fuel prices/spread |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
— |
|
Impact of foreign exchange rates |
|
|
0.4 |
|
|
|
— |
|
|
|
|
— |
|
|
— |
|
As reported |
|
$ |
66.5 |
|
|
$ |
62.4 |
|
|
|
|
444.8 |
|
|
362.7 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|||||||
FLEETCOR CONSOLIDATED REVENUES |
|
|
|
|
|
|
|
|
|
|||||||
Pro forma and macro adjusted |
|
$ |
932.3 |
|
|
$ |
874.3 |
|
|
|
Intentionally Left Blank |
|||||
Impact of acquisitions/dispositions |
|
|
— |
|
|
|
9.4 |
|
|
|
||||||
Impact of fuel prices/spread2 |
|
|
(15.0 |
) |
|
|
— |
|
|
|
||||||
Impact of foreign exchange rates2 |
|
|
19.9 |
|
|
|
— |
|
|
|
||||||
As reported |
|
$ |
937.3 |
|
|
$ |
883.6 |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
1 Other includes Gift and Payroll Card operating segments. |
|
2 Revenues reflect an estimated |
|
* Columns may not calculate due to rounding. |
Exhibit 6 RECONCILIATION OF NON-GAAP EBITDA MEASURES (In millions) (Unaudited) |
||||||||||||||||
The following table reconciles EBITDA and EBITDA margin to net income.* |
||||||||||||||||
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net income |
|
$ |
255.9 |
|
|
$ |
225.3 |
|
|
$ |
981.9 |
|
|
$ |
954.3 |
|
Provision for income taxes |
|
|
77.6 |
|
|
|
72.1 |
|
|
|
343.1 |
|
|
|
321.3 |
|
Interest expense, net |
|
|
92.0 |
|
|
|
74.2 |
|
|
|
348.6 |
|
|
|
164.7 |
|
Other (income) expense |
|
|
(1.5 |
) |
|
|
(3.2 |
) |
|
|
(16.6 |
) |
|
|
3.0 |
|
Investment loss (gain) |
|
|
— |
|
|
|
0.9 |
|
|
|
(0.1 |
) |
|
|
1.4 |
|
Depreciation and amortization |
|
|
83.9 |
|
|
|
89.8 |
|
|
|
336.6 |
|
|
|
322.3 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
1.9 |
|
Other operating, net |
|
|
0.1 |
|
|
|
0.2 |
|
|
|
0.8 |
|
|
|
0.3 |
|
EBITDA |
|
$ |
508.1 |
|
|
$ |
459.3 |
|
|
$ |
1,994.2 |
|
|
$ |
1,769.2 |
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues, net |
|
$ |
937.3 |
|
|
$ |
883.6 |
|
|
$ |
3,757.7 |
|
|
$ |
3,427.1 |
|
EBITDA margin |
|
|
54.2 |
% |
|
|
52.0 |
% |
|
|
53.1 |
% |
|
|
51.6 |
% |
|
|
|
|
|
|
|
|
|
||||||||
* Columns may not calculate due to rounding. |
|
|||||||||||||||
Exhibit 7 RECONCILIATION OF NON-GAAP GUIDANCE MEASURES (In millions, except per share amounts) (Unaudited) |
||||||||
The following table reconciles first quarter 2024 and 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 |
|
$ |
1,090 |
|
|
$ |
1,130 |
|
Net income per diluted share |
|
$ |
15.40 |
|
|
$ |
15.80 |
|
|
|
|
|
|
||||
Stock based compensation |
|
|
110 |
|
|
|
110 |
|
Amortization |
|
|
232 |
|
|
|
232 |
|
Other |
|
|
20 |
|
|
|
20 |
|
Total pre-tax adjustments |
|
|
362 |
|
|
|
362 |
|
|
|
|
|
|
||||
Income taxes |
|
|
(92 |
) |
|
|
(92 |
) |
Adjusted net income |
|
$ |
1,360 |
|
|
$ |
1,400 |
|
Adjusted net income per diluted share |
|
$ |
19.20 |
|
|
$ |
19.60 |
|
|
|
|
|
|
||||
Diluted shares |
|
|
71 |
|
|
|
71 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
Q1 2024 GUIDANCE |
||||||
|
|
Low* |
|
High* |
||||
Net income |
|
$ |
222 |
|
|
$ |
232 |
|
Net income per diluted share |
|
$ |
3.05 |
|
|
$ |
3.16 |
|
|
|
|
|
|
||||
Stock based compensation |
|
|
27 |
|
|
|
27 |
|
Amortization |
|
|
58 |
|
|
|
58 |
|
Other |
|
|
8 |
|
|
|
8 |
|
Total pre-tax adjustments |
|
|
93 |
|
|
|
93 |
|
|
|
|
|
|
||||
Income taxes |
|
|
(24 |
) |
|
|
(24 |
) |
Adjusted net income |
|
$ |
291 |
|
|
$ |
301 |
|
Adjusted net income per diluted share |
|
$ |
4.02 |
|
|
$ |
4.12 |
|
|
|
|
|
|
||||
Diluted shares |
|
|
73 |
|
|
|
73 |
|
|
|
|
|
|
||||
* Columns may not calculate due to rounding. |
||||||||
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240207435930/en/
Investor Relations
Jim Eglseder, 770-417-4697
Jim.Eglseder@fleetcor.com
Source: FLEETCOR Technologies, Inc.
FAQ
What is the ticker symbol for FLEETCOR Technologies, Inc.?
What were the full year 2023 revenues for FLEETCOR Technologies, Inc.?
What is the percentage increase in EBITDA for the fourth quarter of 2023?
How much does the company plan to repurchase in shares in 2024?
What was the percentage increase in net income per diluted share for the fourth quarter of 2023?