FLEETCOR Reports Second Quarter 2023 Financial Results
“Our second quarter results were solid with
Financial Results for Second Quarter of 2023:
GAAP Results
-
Revenues increased
10% to in the second quarter of 2023, compared to$948.2 million in the second quarter of 2022.$861.3 million -
Net income decreased
9% to in the second quarter of 2023, compared to$239.7 million in the second quarter of 2022, largely due to$262.2 million in higher interest expense over the second quarter of 2022.$65 million -
Net income per diluted share decreased
5% to in the second quarter of 2023, compared to$3.20 per diluted share in the second quarter of 2022, largely due to higher interest expense.$3.35
Non-GAAP Results1
-
EBITDA1 increased
11% to in the second quarter of 2023, compared to$497.1 million in the second quarter of 2022.$448.9 million -
Adjusted net income1 decreased
4% to in the second quarter of 2023, compared to$314.3 million in the second quarter of 2022, largely due to lower fuel prices and higher net interest expense.$326.1 million -
Adjusted net income per diluted share1 increased
1% to in the second quarter of 2023, compared to$4.19 per diluted share in the second quarter of 2022.$4.17
1Reconciliations of GAAP results to non-GAAP results are provided in Exhibit 1 and 6 attached. Additional supplemental data is provided in Exhibits 2-5. A reconciliation of GAAP guidance to non-GAAP guidance is provided in Exhibit 7.
“Our second quarter results came in ahead of the expectations we provided in May, for both revenue and adjusted net income per share,” said Tom Panther, chief financial officer, FLEETCOR Technologies, Inc.
Updated Fiscal Year 2023 Outlook:
“The outlook for the second half of the year remains in-line with our expectations as we expect the fundamental trends from the first half of the year to continue. We expect solid growth in the second half of 2023 as we lap the interest and credit overhangs from last year and our organic revenue growth continues,” concluded Panther.
For fiscal year 2023, FLEETCOR Technologies, Inc.'s updated financial guidance1 is as follows:
-
Total revenues between
and$3,836 million ;$3,860 million -
Net income between
and$1,006 million ;$1,028 million -
Net income per diluted share between
and$13.42 ;$13.68 -
Adjusted net income between
and$1,281 million ; and$1,303 million -
Adjusted net income per diluted share between
and$17.09 .$17.35
FLEETCOR’s guidance assumptions are as follows:
For the balance of the year:
-
Weighted average
U.S. fuel prices of per gallon;$3.66 - Market fuel spreads to decline compared to the second half of 2022 average; and
- Foreign exchange rates equal to the monthly average for July 2023.
For the full year:
-
Interest expense between
and$330 million ;$340 million - Approximately 75 million fully diluted shares outstanding;
-
A tax rate of
26% to27% ; and - No impact related to acquisitions and dispositions not already closed.
Third Quarter of 2023 Outlook:
The Company currently expects third quarter revenues between
Interest Rate Swaps:
In August 2023, the Company entered into
Conference Call:
The Company will host a conference call to discuss second quarter 2023 financial results today at 5:00 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 34263350. The replay will be available until August 15, 2023. Prior to the conference call, the Company will post supplemental financial information 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 our ability to successfully execute our strategic plan and portfolio review; adverse changes in program fees or charges we may collect, whether through legal, regulatory or contractual changes; adverse outcomes with respect to current and future legal proceedings or investigations, including without limitation, the FTC lawsuit, or actions of governmental, regulatory or quasi-governmental bodies or standards or industry organizations with respect to our payment cards; delays or failures associated with implication of, or adaption to, new technology, changes in credit risk of customers and associated losses; failure to maintain or renew key business relationships; failure to maintain competitive product offerings; failure to complete, or delays in completing, acquisitions, new partnerships or customer arrangements; and to successfully integrate or otherwise achieve anticipated benefits from such acquisitions, partnerships, and customer arrangements; failure to successfully expand and manage our business internationally; and other risks related to our international operations, including the impact of the conflict 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.
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, impairment charges, asset write-offs, restructuring costs, gains due to disposition of assets/businesses, 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.
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
FLEETCOR Technologies, Inc. and Subsidiaries Unaudited Consolidated Statements of Income (In thousands, except per share amounts) |
|||||||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
|||||||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
% Change |
|
|
2023 |
|
|
|
2022 |
|
% Change |
||
Revenues, net |
|
$ |
948,174 |
|
|
$ |
861,278 |
|
|
10 |
% |
|
$ |
1,849,507 |
|
|
$ |
1,650,519 |
|
12 |
% |
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Processing |
|
|
205,265 |
|
|
|
185,588 |
|
|
11 |
% |
|
|
410,232 |
|
|
|
359,782 |
|
14 |
% |
Selling |
|
|
86,412 |
|
|
|
79,324 |
|
|
9 |
% |
|
|
168,004 |
|
|
|
156,213 |
|
8 |
% |
General and administrative |
|
|
159,356 |
|
|
|
147,446 |
|
|
8 |
% |
|
|
314,040 |
|
|
|
290,968 |
|
8 |
% |
Depreciation and amortization |
|
|
83,676 |
|
|
|
78,474 |
|
|
7 |
% |
|
|
167,908 |
|
|
|
155,276 |
|
8 |
% |
Other operating, net |
|
|
815 |
|
|
|
(34 |
) |
|
NM |
|
|
|
1,478 |
|
|
|
79 |
|
NM |
|
Total operating expense |
|
|
535,524 |
|
|
|
490,798 |
|
|
9 |
% |
|
|
1,061,662 |
|
|
|
962,318 |
|
10 |
% |
Operating income |
|
|
412,650 |
|
|
|
370,480 |
|
|
11 |
% |
|
|
787,845 |
|
|
|
688,201 |
|
14 |
% |
Other expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Investment loss (gain) |
|
|
18 |
|
|
|
193 |
|
|
NM |
|
|
|
(172 |
) |
|
|
345 |
|
NM |
|
Other (income) expense, net |
|
|
(2,424 |
) |
|
|
3,564 |
|
|
NM |
|
|
|
(1,678 |
) |
|
|
4,433 |
|
NM |
|
Interest expense, net |
|
|
88,486 |
|
|
|
23,070 |
|
|
284 |
% |
|
|
168,281 |
|
|
|
45,100 |
|
273 |
% |
Total other expense |
|
|
86,080 |
|
|
|
26,827 |
|
|
221 |
% |
|
|
166,431 |
|
|
|
49,878 |
|
234 |
% |
Income before income taxes |
|
|
326,570 |
|
|
|
343,653 |
|
|
(5 |
)% |
|
|
621,414 |
|
|
|
638,323 |
|
(3 |
)% |
Provision for income taxes |
|
|
86,868 |
|
|
|
81,482 |
|
|
7 |
% |
|
|
166,877 |
|
|
|
158,200 |
|
5 |
% |
Net income |
|
$ |
239,702 |
|
|
$ |
262,171 |
|
|
(9 |
)% |
|
$ |
454,537 |
|
|
$ |
480,123 |
|
(5 |
)% |
Basic earnings per share |
|
$ |
3.24 |
|
|
$ |
3.42 |
|
|
(5 |
)% |
|
$ |
6.17 |
|
|
$ |
6.22 |
|
(1 |
)% |
Diluted earnings per share |
|
$ |
3.20 |
|
|
$ |
3.35 |
|
|
(5 |
)% |
|
$ |
6.08 |
|
|
$ |
6.10 |
|
— |
% |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Basic shares |
|
|
73,887 |
|
|
|
76,769 |
|
|
|
|
|
73,705 |
|
|
|
77,250 |
|
|
||
Diluted shares |
|
|
75,001 |
|
|
|
78,239 |
|
|
|
|
|
74,763 |
|
|
|
78,762 |
|
|
||
NM- Not Meaningful |
FLEETCOR Technologies, Inc. and Subsidiaries Consolidated Balance Sheets (In thousands) |
||||||||
|
|
June 30, 2023 |
|
December 31, 2022 |
||||
|
|
(Unaudited) |
|
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
1,254,243 |
|
|
$ |
1,435,163 |
|
Restricted cash |
|
|
1,456,992 |
|
|
|
854,017 |
|
Accounts and other receivables (less allowance) |
|
|
2,460,650 |
|
|
|
2,064,745 |
|
Securitized accounts receivable — restricted for securitization investors |
|
|
1,248,000 |
|
|
|
1,287,000 |
|
Prepaid expenses and other current assets |
|
|
503,684 |
|
|
|
465,227 |
|
Total current assets |
|
|
6,923,569 |
|
|
|
6,106,152 |
|
Property and equipment, net |
|
|
329,146 |
|
|
|
294,692 |
|
Goodwill |
|
|
5,473,603 |
|
|
|
5,201,435 |
|
Other intangibles, net |
|
|
2,107,081 |
|
|
|
2,130,974 |
|
Investments |
|
|
69,721 |
|
|
|
74,281 |
|
Other assets |
|
|
275,533 |
|
|
|
281,726 |
|
Total assets |
|
$ |
15,178,653 |
|
|
$ |
14,089,260 |
|
Liabilities and Stockholders’ Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
1,679,702 |
|
|
$ |
1,568,942 |
|
Accrued expenses |
|
|
392,652 |
|
|
|
351,936 |
|
Customer deposits |
|
|
2,013,236 |
|
|
|
1,505,004 |
|
Securitization facility |
|
|
1,248,000 |
|
|
|
1,287,000 |
|
Current portion of notes payable and lines of credit |
|
|
823,231 |
|
|
|
1,027,056 |
|
Other current liabilities |
|
|
279,069 |
|
|
|
303,517 |
|
Total current liabilities |
|
|
6,435,890 |
|
|
|
6,043,455 |
|
Notes payable and other obligations, less current portion |
|
|
4,678,258 |
|
|
|
4,722,838 |
|
Deferred income taxes |
|
|
538,832 |
|
|
|
527,465 |
|
Other noncurrent liabilities |
|
|
262,237 |
|
|
|
254,009 |
|
Total noncurrent liabilities |
|
|
5,479,327 |
|
|
|
5,504,312 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Common stock |
|
|
128 |
|
|
|
128 |
|
Additional paid-in capital |
|
|
3,176,562 |
|
|
|
3,049,570 |
|
Retained earnings |
|
|
7,665,306 |
|
|
|
7,210,769 |
|
Accumulated other comprehensive loss |
|
|
(1,357,263 |
) |
|
|
(1,509,650 |
) |
Treasury stock |
|
|
(6,221,297 |
) |
|
|
(6,209,324 |
) |
Total stockholders’ equity |
|
|
3,263,436 |
|
|
|
2,541,493 |
|
Total liabilities and stockholders’ equity |
|
$ |
15,178,653 |
|
|
$ |
14,089,260 |
|
FLEETCOR Technologies, Inc. and Subsidiaries Unaudited Consolidated Statements of Cash Flows (In thousands) |
||||||||
|
|
Six Months Ended June 30, |
||||||
|
|
|
2023 |
|
|
|
2022 |
|
Operating activities |
|
|
|
|
||||
Net income |
|
$ |
454,537 |
|
|
$ |
480,123 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation |
|
|
53,739 |
|
|
|
43,783 |
|
Stock-based compensation |
|
|
60,844 |
|
|
|
66,648 |
|
Provision for credit losses on accounts and other receivables |
|
|
74,418 |
|
|
|
52,704 |
|
Amortization of deferred financing costs and discounts |
|
|
3,574 |
|
|
|
4,131 |
|
Amortization of intangible assets and premium on receivables |
|
|
114,169 |
|
|
|
111,493 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
1,934 |
|
Deferred income taxes |
|
|
(11,799 |
) |
|
|
(10,864 |
) |
Investment gain |
|
|
(172 |
) |
|
|
345 |
|
Other |
|
|
1,478 |
|
|
|
80 |
|
Changes in operating assets and liabilities (net of acquisitions): |
|
|
|
|
||||
Accounts and other receivables |
|
|
(365,572 |
) |
|
|
(1,225,705 |
) |
Prepaid expenses and other current assets |
|
|
78,035 |
|
|
|
(13,088 |
) |
Derivative assets and liabilities, net |
|
|
(14,611 |
) |
|
|
20,576 |
|
Other assets |
|
|
29,397 |
|
|
|
(1,283 |
) |
Accounts payable, accrued expenses and customer deposits |
|
|
348,643 |
|
|
|
510,976 |
|
Net cash provided by operating activities |
|
|
826,680 |
|
|
|
41,853 |
|
Investing activities |
|
|
|
|
||||
Acquisitions, net of cash acquired |
|
|
(126,694 |
) |
|
|
(33,744 |
) |
Purchases of property and equipment |
|
|
(78,922 |
) |
|
|
(66,629 |
) |
Other |
|
|
4,401 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(201,215 |
) |
|
|
(100,373 |
) |
Financing activities |
|
|
|
|
||||
Proceeds from issuance of common stock |
|
|
66,148 |
|
|
|
18,837 |
|
Repurchase of common stock |
|
|
(11,973 |
) |
|
|
(795,302 |
) |
Borrowings on securitization facility, net |
|
|
(39,000 |
) |
|
|
482,000 |
|
Deferred financing costs paid and debt discount |
|
|
— |
|
|
|
(337 |
) |
Proceeds from issuance of notes payable |
|
|
— |
|
|
|
3,000,000 |
|
Principal payments on notes payable |
|
|
(47,000 |
) |
|
|
(2,777,000 |
) |
Borrowings from revolver |
|
|
4,351,000 |
|
|
|
1,550,000 |
|
Payments on revolver |
|
|
(4,817,000 |
) |
|
|
(1,356,000 |
) |
Borrowings on swing line of credit, net |
|
|
255,750 |
|
|
|
194 |
|
Other |
|
|
264 |
|
|
|
— |
|
Net cash (used in) provided by financing activities |
|
|
(241,811 |
) |
|
|
122,392 |
|
Effect of foreign currency exchange rates on cash |
|
|
38,401 |
|
|
|
41,866 |
|
Net increase in cash and cash equivalents and restricted cash |
|
|
422,055 |
|
|
|
105,738 |
|
Cash and cash equivalents and restricted cash, beginning of period |
|
|
2,289,180 |
|
|
|
2,250,695 |
|
Cash and cash equivalents and restricted cash, end of period |
|
$ |
2,711,235 |
|
|
$ |
2,356,433 |
|
Supplemental cash flow information |
|
|
|
|
||||
Cash paid for interest, net |
|
$ |
215,850 |
|
|
$ |
73,323 |
|
Cash paid for income taxes, net |
|
$ |
238,769 |
|
|
$ |
215,653 |
|
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 June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
|
$ |
239,702 |
|
|
$ |
262,171 |
|
|
$ |
454,537 |
|
|
$ |
480,123 |
|
|
|
|
|
|
|
|
|
|
||||||||
Stock based compensation |
|
|
34,748 |
|
|
|
34,017 |
|
|
|
60,844 |
|
|
|
66,648 |
|
Amortization1 |
|
|
57,704 |
|
|
|
57,994 |
|
|
|
117,743 |
|
|
|
115,624 |
|
Integration and deal related costs |
|
|
9,580 |
|
|
|
2,957 |
|
|
|
15,465 |
|
|
|
9,210 |
|
Legal settlements/litigation |
|
|
140 |
|
|
|
1,467 |
|
|
|
484 |
|
|
|
1,902 |
|
Restructuring, related and other2 costs |
|
|
(595 |
) |
|
|
763 |
|
|
|
703 |
|
|
|
763 |
|
Loss on extinguishment of debt |
|
|
— |
|
|
|
1,934 |
|
|
|
— |
|
|
|
1,934 |
|
Total pre-tax adjustments |
|
|
101,577 |
|
|
|
99,132 |
|
|
|
195,239 |
|
|
|
196,081 |
|
Income taxes |
|
|
(27,020 |
) |
|
|
(35,164 |
) |
|
|
(52,436 |
) |
|
|
(60,405 |
) |
Adjusted net income |
|
$ |
314,259 |
|
|
$ |
326,139 |
|
|
$ |
597,340 |
|
|
$ |
615,799 |
|
Adjusted net income per diluted share |
|
$ |
4.19 |
|
|
$ |
4.17 |
|
|
$ |
7.99 |
|
|
$ |
7.82 |
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted shares |
|
|
75,001 |
|
|
|
78,239 |
|
|
|
74,763 |
|
|
|
78,762 |
|
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 ( |
||||||||||||||||
*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 June 30, |
|
Three Months Ended June 30, |
||||||||||||||||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
% Change |
|
|
2023 |
|
|
|
2022 |
|
|
Change |
|
% Change |
||||||
FLEET |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
- Revenues, net |
|
$ |
382.6 |
|
|
$ |
377.4 |
|
|
$ |
5.2 |
|
|
1 |
% |
|
$ |
399.9 |
|
|
$ |
378.9 |
|
|
$ |
21.0 |
|
|
6 |
% |
- Transactions |
|
|
124.0 |
|
|
|
122.5 |
|
|
|
1.5 |
|
|
1 |
% |
|
|
124.0 |
|
|
|
122.9 |
|
|
|
1.0 |
|
|
1 |
% |
- Revenues, net per transaction |
|
$ |
3.09 |
|
|
$ |
3.08 |
|
|
$ |
0.01 |
|
|
— |
% |
|
$ |
3.23 |
|
|
$ |
3.08 |
|
|
$ |
0.14 |
|
|
5 |
% |
CORPORATE PAYMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
- Revenues, net |
|
$ |
247.0 |
|
|
$ |
189.7 |
|
|
$ |
57.3 |
|
|
30 |
% |
|
$ |
249.9 |
|
|
$ |
204.6 |
|
|
$ |
45.3 |
|
|
22 |
% |
- Spend volume |
|
|
36,041 |
|
|
|
28,836 |
|
|
|
7,205 |
|
|
25 |
% |
|
|
36,041 |
|
|
|
31,251 |
|
|
|
4,789 |
|
|
15 |
% |
- Revenues, net per spend $ |
|
|
0.69 |
% |
|
|
0.66 |
% |
|
|
0.03 |
% |
|
4 |
% |
|
|
0.69 |
% |
|
|
0.65 |
% |
|
|
0.04 |
% |
|
6 |
% |
LODGING |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
- Revenues, net |
|
$ |
136.6 |
|
|
$ |
116.9 |
|
|
$ |
19.7 |
|
|
17 |
% |
|
$ |
136.7 |
|
|
$ |
119.5 |
|
|
$ |
17.2 |
|
|
14 |
% |
- Room nights |
|
|
9.3 |
|
|
|
9.5 |
|
|
|
(0.2 |
) |
|
(2 |
)% |
|
|
9.3 |
|
|
|
9.7 |
|
|
|
(0.4 |
) |
|
(4 |
)% |
- Revenues, net per room night |
|
$ |
14.65 |
|
|
$ |
12.30 |
|
|
$ |
2.35 |
|
|
19 |
% |
|
$ |
14.67 |
|
|
$ |
12.35 |
|
|
$ |
2.32 |
|
|
19 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
- Revenues, net |
|
$ |
126.1 |
|
|
$ |
111.8 |
|
|
$ |
14.3 |
|
|
13 |
% |
|
$ |
128.6 |
|
|
$ |
111.8 |
|
|
$ |
16.8 |
|
|
15 |
% |
- Tags (average monthly) |
|
|
6.6 |
|
|
|
6.1 |
|
|
|
0.4 |
|
|
7 |
% |
|
|
6.6 |
|
|
|
6.1 |
|
|
|
0.4 |
|
|
7 |
% |
- Revenues, net per tag |
|
$ |
19.21 |
|
|
$ |
18.22 |
|
|
$ |
0.99 |
|
|
5 |
% |
|
$ |
19.59 |
|
|
$ |
18.22 |
|
|
$ |
1.37 |
|
|
8 |
% |
OTHER1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
- Revenues, net |
|
$ |
56.0 |
|
|
$ |
65.5 |
|
|
$ |
(9.5 |
) |
|
(15 |
)% |
|
$ |
56.2 |
|
|
$ |
65.5 |
|
|
$ |
(9.3 |
) |
|
(14 |
)% |
- Transactions |
|
|
269.8 |
|
|
|
287.5 |
|
|
|
(17.7 |
) |
|
(6 |
)% |
|
|
269.8 |
|
|
|
287.5 |
|
|
|
(17.7 |
) |
|
(6 |
)% |
- Revenues, net per transaction |
|
$ |
0.21 |
|
|
$ |
0.23 |
|
|
$ |
(0.02 |
) |
|
(9 |
)% |
|
$ |
0.21 |
|
|
$ |
0.23 |
|
|
$ |
(0.02 |
) |
|
(8 |
)% |
FLEETCOR CONSOLIDATED REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
- Revenues, net |
|
$ |
948.2 |
|
|
$ |
861.3 |
|
|
$ |
86.9 |
|
|
10 |
% |
|
$ |
971.3 |
|
|
$ |
880.3 |
|
|
$ |
91.0 |
|
|
10 |
% |
1 Other includes Gift and Payroll Card operating segments. |
||||||||||||||||||||||||||||||
2 See Exhibit 5 for a reconciliation of Pro forma and Macro Adjusted revenue by solution and metrics, non-GAAP measures, to the GAAP equivalent. | ||||||||||||||||||||||||||||||
*Columns may not calculate due to rounding. |
Exhibit 3 Revenues by Geography and Segment (In millions) (Unaudited) |
|||||||||||||||||||||||
Revenues, net by Geography* |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||||
|
|
2023 |
|
% |
|
|
2022 |
|
% |
|
|
2023 |
|
% |
|
|
2022 |
|
% |
||||
US |
$ |
535 |
|
56 |
% |
|
$ |
528 |
|
61 |
% |
|
$ |
1,048 |
|
57 |
% |
|
$ |
999 |
|
61 |
% |
|
|
126 |
|
13 |
% |
|
|
112 |
|
13 |
% |
|
|
248 |
|
13 |
% |
|
|
214 |
|
13 |
% |
|
|
111 |
|
12 |
% |
|
|
93 |
|
11 |
% |
|
|
219 |
|
12 |
% |
|
|
188 |
|
11 |
% |
Other |
|
176 |
|
19 |
% |
|
|
128 |
|
15 |
% |
|
|
334 |
|
18 |
% |
|
|
249 |
|
15 |
% |
Consolidated Revenues, net |
$ |
948 |
|
100 |
% |
|
$ |
861 |
|
100 |
% |
|
$ |
1,850 |
|
100 |
% |
|
$ |
1,651 |
|
100 |
% |
*Columns may not calculate due to rounding. |
Revenues, net by Segment* |
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||||||||
|
|
2023 |
|
% |
|
|
2022 |
|
% |
|
|
2023 |
|
% |
|
|
2022 |
|
% |
||||
Fleet |
$ |
383 |
|
40 |
% |
|
$ |
377 |
|
44 |
% |
|
$ |
755 |
|
41 |
% |
|
$ |
729 |
|
44 |
% |
Corporate Payments |
|
247 |
|
26 |
% |
|
|
190 |
|
22 |
% |
|
|
474 |
|
26 |
% |
|
|
373 |
|
23 |
% |
Lodging |
|
137 |
|
14 |
% |
|
|
117 |
|
14 |
% |
|
|
259 |
|
14 |
% |
|
|
211 |
|
13 |
% |
|
|
126 |
|
13 |
% |
|
|
112 |
|
13 |
% |
|
|
248 |
|
13 |
% |
|
|
214 |
|
13 |
% |
Other |
|
56 |
|
6 |
% |
|
|
65 |
|
8 |
% |
|
|
113 |
|
6 |
% |
|
|
122 |
|
7 |
% |
Consolidated Revenues, net |
$ |
948 |
|
100 |
% |
|
$ |
861 |
|
100 |
% |
|
$ |
1,850 |
|
195 |
% |
|
$ |
1,651 |
|
100 |
% |
*Columns may not calculate due to rounding. Segment and solutions reporting have converged to be the same. |
Exhibit 4 Segment Results* (In thousands) (Unaudited) |
||||||||||||||||||
|
|
Three Months Ended June 30, |
|
Six Months Ended June 30, |
||||||||||||||
|
|
|
20231 |
|
|
2022 |
|
% Change |
|
|
20231 |
|
|
2022 |
|
% Change |
||
Revenues, net: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fleet |
|
$ |
382,609 |
|
$ |
377,361 |
|
1 |
% |
|
$ |
755,321 |
|
$ |
728,954 |
|
4 |
% |
Corporate Payments |
|
|
246,952 |
|
|
189,699 |
|
30 |
% |
|
|
474,158 |
|
|
373,467 |
|
27 |
% |
Lodging |
|
|
136,564 |
|
|
116,900 |
|
17 |
% |
|
|
258,898 |
|
|
211,476 |
|
22 |
% |
|
|
|
126,081 |
|
|
111,825 |
|
13 |
% |
|
|
247,825 |
|
|
214,362 |
|
16 |
% |
Other1 |
|
|
55,968 |
|
|
65,493 |
|
(15 |
)% |
|
|
113,305 |
|
|
122,260 |
|
(7 |
)% |
|
|
$ |
948,174 |
|
$ |
861,278 |
|
10 |
% |
|
$ |
1,849,507 |
|
$ |
1,650,519 |
|
12 |
% |
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fleet |
|
$ |
183,657 |
|
$ |
186,790 |
|
(2 |
)% |
|
$ |
357,189 |
|
$ |
354,635 |
|
1 |
% |
Corporate Payments |
|
|
91,755 |
|
|
65,859 |
|
39 |
% |
|
|
167,268 |
|
|
124,066 |
|
35 |
% |
Lodging |
|
|
68,246 |
|
|
58,559 |
|
17 |
% |
|
|
122,809 |
|
|
98,339 |
|
25 |
% |
|
|
|
52,802 |
|
|
41,617 |
|
27 |
% |
|
|
107,619 |
|
|
78,945 |
|
36 |
% |
Other1 |
|
|
16,190 |
|
|
17,655 |
|
(8 |
)% |
|
|
32,960 |
|
|
32,216 |
|
2 |
% |
|
|
$ |
412,650 |
|
$ |
370,480 |
|
11 |
% |
|
$ |
787,845 |
|
$ |
688,201 |
|
14 |
% |
Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fleet |
|
$ |
35,906 |
|
$ |
34,927 |
|
3 |
% |
|
$ |
70,992 |
|
$ |
69,634 |
|
2 |
% |
Corporate Payments |
|
|
18,277 |
|
|
16,724 |
|
9 |
% |
|
|
39,148 |
|
|
33,072 |
|
18 |
% |
Lodging |
|
|
11,661 |
|
|
10,321 |
|
13 |
% |
|
|
23,059 |
|
|
20,855 |
|
11 |
% |
|
|
|
15,522 |
|
|
14,288 |
|
9 |
% |
|
|
30,075 |
|
|
27,409 |
|
10 |
% |
Other1 |
|
|
2,310 |
|
|
2,214 |
|
4 |
% |
|
|
4,634 |
|
|
4,306 |
|
8 |
% |
|
|
$ |
83,676 |
|
$ |
78,474 |
|
7 |
% |
|
$ |
167,908 |
|
$ |
155,276 |
|
8 |
% |
Capital expenditures: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Fleet |
|
$ |
20,734 |
|
$ |
18,447 |
|
12 |
% |
|
$ |
37,865 |
|
$ |
34,237 |
|
11 |
% |
Corporate Payments |
|
|
7,471 |
|
|
5,158 |
|
45 |
% |
|
|
15,266 |
|
|
9,646 |
|
58 |
% |
Lodging |
|
|
3,496 |
|
|
2,067 |
|
69 |
% |
|
|
6,873 |
|
|
3,759 |
|
83 |
% |
|
|
|
8,642 |
|
|
7,620 |
|
13 |
% |
|
|
15,530 |
|
|
13,598 |
|
14 |
% |
Other1 |
|
|
1,842 |
|
|
1,950 |
|
(6 |
)% |
|
|
3,388 |
|
|
5,389 |
|
(37 |
)% |
|
|
$ |
42,185 |
|
$ |
35,242 |
|
20 |
% |
|
$ |
78,922 |
|
$ |
66,629 |
|
18 |
% |
1Other includes Gift and Payroll Card operating segments. |
||||||||||||||||||
*Columns may not calculate due to rounding. |
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 June 30, |
|
Three Months Ended June 30, |
||||||||||||
|
|
2023* |
|
2022* |
|
|
2023* |
|
2022* |
|||||||
FLEET - TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|||||||
Pro forma and macro adjusted |
|
$ |
399.9 |
|
|
$ |
378.9 |
|
|
|
|
124.0 |
|
|
122.9 |
|
Impact of acquisitions/dispositions |
|
|
— |
|
|
|
(1.5 |
) |
|
|
|
— |
|
|
(0.5 |
) |
Impact of fuel prices/spread |
|
|
(12.5 |
) |
|
|
— |
|
|
|
|
— |
|
|
— |
|
Impact of foreign exchange rates |
|
|
(4.8 |
) |
|
|
— |
|
|
|
|
— |
|
|
— |
|
As reported |
|
$ |
382.6 |
|
|
$ |
377.4 |
|
|
|
|
124.0 |
|
|
122.5 |
|
CORPORATE PAYMENTS - SPEND |
|
|
|
|
|
|
|
|
|
|||||||
Pro forma and macro adjusted |
|
$ |
249.9 |
|
|
$ |
204.6 |
|
|
|
$ |
36,041 |
|
$ |
31,251 |
|
Impact of acquisitions/dispositions |
|
|
— |
|
|
|
(14.9 |
) |
|
|
|
— |
|
|
(2,416 |
) |
Impact of fuel prices/spread |
|
|
(0.4 |
) |
|
|
— |
|
|
|
|
— |
|
|
— |
|
Impact of foreign exchange rates |
|
|
(2.5 |
) |
|
|
— |
|
|
|
|
— |
|
|
— |
|
As reported |
|
$ |
247.0 |
|
|
$ |
189.7 |
|
|
|
$ |
36,041 |
|
$ |
28,836 |
|
LODGING - ROOM NIGHTS |
|
|
|
|
|
|
|
|
|
|||||||
Pro forma and macro adjusted |
|
$ |
136.7 |
|
|
$ |
119.5 |
|
|
|
|
9.3 |
|
|
9.7 |
|
Impact of acquisitions/dispositions |
|
|
— |
|
|
|
(2.6 |
) |
|
|
|
— |
|
|
(0.2 |
) |
Impact of fuel prices/spread |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
— |
|
Impact of foreign exchange rates |
|
|
(0.1 |
) |
|
|
— |
|
|
|
|
— |
|
|
— |
|
As reported |
|
$ |
136.6 |
|
|
$ |
116.9 |
|
|
|
|
9.3 |
|
|
9.5 |
|
|
|
|
|
|
|
|
|
|
|
|||||||
Pro forma and macro adjusted |
|
$ |
128.6 |
|
|
$ |
111.8 |
|
|
|
|
6.6 |
|
|
6.1 |
|
Impact of acquisitions/dispositions |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
— |
|
Impact of fuel prices/spread |
|
|
(1.4 |
) |
|
|
— |
|
|
|
|
— |
|
|
— |
|
Impact of foreign exchange rates |
|
|
(1.1 |
) |
|
|
— |
|
|
|
|
— |
|
|
— |
|
As reported |
|
$ |
126.1 |
|
|
$ |
111.8 |
|
|
|
|
6.6 |
|
|
6.1 |
|
OTHER1 - TRANSACTIONS |
|
|
|
|
|
|
|
|
|
|||||||
Pro forma and macro adjusted |
|
$ |
56.2 |
|
|
$ |
65.5 |
|
|
|
|
269.8 |
|
|
287.5 |
|
Impact of acquisitions/dispositions |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
— |
|
Impact of fuel prices/spread |
|
|
— |
|
|
|
— |
|
|
|
|
— |
|
|
— |
|
Impact of foreign exchange rates |
|
|
(0.3 |
) |
|
|
— |
|
|
|
|
— |
|
|
— |
|
As reported |
|
$ |
56.0 |
|
|
$ |
65.5 |
|
|
|
|
269.8 |
|
|
287.5 |
|
FLEETCOR CONSOLIDATED REVENUES |
|
|
|
|
|
|
|
|
|
|||||||
Pro forma and macro adjusted |
|
$ |
971.3 |
|
|
$ |
880.3 |
|
|
|
Intentionally Left Blank |
|||||
Impact of acquisitions/dispositions |
|
|
— |
|
|
|
(19.1 |
) |
|
|
||||||
Impact of fuel prices/spread2 |
|
|
(14.4 |
) |
|
|
— |
|
|
|
||||||
Impact of foreign exchange rates2 |
|
|
(8.8 |
) |
|
|
— |
|
|
|
||||||
As reported |
|
$ |
948.2 |
|
|
$ |
861.3 |
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|||||||
* Columns may not calculate due to rounding. |
|
|
||||||||||||||
1Other includes Gift and Payroll Card operating segments. |
||||||||||||||||
2 Revenues reflect an estimated |
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 June 30, |
|
Six Months Ended June 30, |
||||||||||||
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
Net income |
|
$ |
239.7 |
|
|
$ |
262.2 |
|
|
$ |
454.5 |
|
|
$ |
480.1 |
|
Provision for income taxes |
|
|
86.9 |
|
|
|
81.5 |
|
|
|
166.9 |
|
|
|
158.2 |
|
Interest expense, net |
|
|
88.5 |
|
|
|
23.1 |
|
|
|
168.3 |
|
|
|
45.1 |
|
Other (income) expense |
|
|
(2.4 |
) |
|
|
3.6 |
|
|
|
(1.7 |
) |
|
|
4.4 |
|
Investment loss (income) |
|
|
— |
|
|
|
0.2 |
|
|
|
(0.2 |
) |
|
|
0.3 |
|
Depreciation and amortization |
|
|
83.7 |
|
|
|
78.5 |
|
|
|
167.9 |
|
|
|
155.3 |
|
Other operating, net |
|
|
0.8 |
|
|
|
— |
|
|
|
1.5 |
|
|
|
0.1 |
|
EBITDA |
|
$ |
497.1 |
|
|
$ |
448.9 |
|
|
$ |
957.2 |
|
|
$ |
843.6 |
|
|
|
|
|
|
|
|
|
|
||||||||
Revenues, net |
|
$ |
948.2 |
|
|
$ |
861.3 |
|
|
$ |
1,849.5 |
|
|
$ |
1,650.5 |
|
EBITDA margin |
|
|
52.4 |
% |
|
|
52.1 |
% |
|
|
51.8 |
% |
|
|
51.1 |
% |
|
|
|
|
|
|
|
|
|
||||||||
* 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 the third quarter 2023 and full year 2023 financial guidance for net income to adjusted net income and adjusted net income per diluted share, at both ends of the range. |
||||||
|
|
Q3 2023 GUIDANCE |
||||
|
|
Low* |
|
High* |
||
Net income |
|
$ |
266 |
|
$ |
282 |
Net income per diluted share |
|
$ |
3.54 |
|
$ |
3.74 |
|
|
|
|
|
||
Stock based compensation |
|
|
30 |
|
|
30 |
Amortization |
|
|
58 |
|
|
58 |
Other |
|
|
4 |
|
|
4 |
Total pre-tax adjustments |
|
|
92 |
|
|
92 |
Income taxes |
|
|
25 |
|
|
25 |
Adjusted net income |
|
$ |
333 |
|
$ |
349 |
Adjusted net income per diluted share |
|
$ |
4.44 |
|
$ |
4.64 |
Diluted shares |
|
|
75 |
|
|
75 |
|
|
|
|
|
||
|
|
2023 GUIDANCE |
||||
|
|
Low* |
|
High* |
||
Net income |
|
$ |
1,006 |
|
$ |
1,028 |
Net income per diluted share |
|
$ |
13.42 |
|
$ |
13.68 |
|
|
|
|
|
||
Stock based compensation |
|
|
120 |
|
|
120 |
Amortization |
|
|
233 |
|
|
233 |
Other |
|
|
24 |
|
|
24 |
Total pre-tax adjustments |
|
|
377 |
|
|
377 |
Income taxes |
|
|
101 |
|
|
101 |
Adjusted net income |
|
$ |
1,281 |
|
$ |
1,303 |
Adjusted net income per diluted share |
|
$ |
17.09 |
|
$ |
17.35 |
Diluted shares |
|
|
75 |
|
|
75 |
|
|
|
|
|
||
*Includes the results of our Russian business. Assuming August 2023 sale of our Russian business, we expect revenues to be |
View source version on businesswire.com: https://www.businesswire.com/news/home/20230808026180/en/
Investor Relations
Jim Eglseder, 770-417-4697
Jim.Eglseder@fleetcor.com
Source: FLEETCOR Technologies, Inc.