8-K
CORPAY, INC. (CPAY)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________________________________________________________
FORM 8-K
________________________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): November 8, 2023
________________________________________________________
FLEETCOR Technologies, Inc.
________________________________________________________
(Exact name of registrant as specified in its charter)
_______________________________________________________
| Delaware | 001-35004 | 72-1074903 |
|---|---|---|
| (State or other jurisdiction of<br>incorporation or organization) | (Commission<br>File Number) | (I.R.S. Employer<br>Identification No.) |
| 3280 Peachtree Road, Suite 2400 | Atlanta | 30305 |
| (Address of principal executive offices) | GA | (Zip Code) |
Registrant’s telephone number, including area code: (770) 449-0479
Not Applicable
Former name or former address, if changed since last report
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ☐ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | | --- | --- || ☐ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | | --- | --- || ☐ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | | --- | --- |
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading<br>Symbols(s) | Name of each exchange on which registered |
|---|---|---|
| Common Stock | FLT | New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
On November 8, 2023, FLEETCOR Technologies, Inc. (the "Company") issued a press release announcing its financial results for the three and nine months ended September 30, 2023. A copy of the press release is attached as Exhibit 99.1, which is incorporated by reference in its entirety. The information in this item, including Exhibit 99.1, is being furnished, not filed. Accordingly, the information in this item will not be incorporated by reference into any registration statement filed by FLEETCOR Technologies, Inc. under the Securities Act of 1933, as amended, unless specifically identified as being incorporated into it by reference.
Item 7.01 Regulation FD Disclosure.
The Company has made available on its website in the investor relations section an earnings release supplement.
Item 9.01 Financial Statements and Exhibits.
| (d) | Exhibits |
|---|---|
| 99.1 | FLEETCOR Technologies, Inc. press release dated November 8, 2023 |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| FleetCor Technologies, Inc. | ||
|---|---|---|
| November 8, 2023 | By: /s/ Tom Panther | |
| Tom Panther | ||
| Chief Financial Officer |
Exhibit Index
| Exhibit No. | Description |
|---|---|
| 99.1 | Press release dated November 8, 2023 |
| 104 | Cover Page Interactive Data File (formatted as Inline XBRL). |
Document
Exhibit 99.1
FLEETCOR Reports Third Quarter 2023 Financial Results
Atlanta, GA, November 8, 2023 — FLEETCOR Technologies, Inc. (NYSE: FLT), a leading global business payments company, today reported financial results for its third quarter ended September 30, 2023.
“We reported another good quarter, with revenues and adjusted net income per share growth of 9% and 6%,” said Ron Clarke, chairman and chief executive officer, FLEETCOR. “Organic revenue growth was 10% for the quarter, driven by 20% growth in corporate payments. Strategically, we completed the acquisition of the world’s second largest mobile parking operator, which is an important ingredient to our strategy to transform our vehicle payments business.”
Financial Results for Third Quarter of 2023:
GAAP Results
•Revenues increased 9% to $970.9 million in the third quarter of 2023, compared to $893.0 million in the third quarter of 2022.
•Net income increased 9% to $271.5 million in the third quarter of 2023, compared to $248.9 million in the third quarter of 2022.
•Net income per diluted share increased 10% to $3.64 in the third quarter of 2023, compared to $3.29 per diluted share in the third quarter of 2022.
Non-GAAP Results1
•EBITDA1 increased 13% to $528.9 million in the third quarter of 2023, compared to $466.4 million in the third quarter of 2022.
•Adjusted net income1 increased 4% to $335.1 million in the third quarter of 2023, compared to $320.7 million in the third quarter of 2022.
•Adjusted net income per diluted share1 increased 6% to $4.49 in the third quarter of 2023, compared to $4.24 per diluted share in the third quarter of 2022.
“The third quarter was particularly active with the sale of our Russia business, acquisition of PayByPhone and a quite different macro environment versus what we outlooked in August,” said Tom Panther, chief financial officer, FLEETCOR. “We’ve bridged this for you in our earnings supplement, and our results came in ahead of those proforma expectations, as our businesses continued the positive trends from the first half of the year. Our solid revenue performance and disciplined expense management in the quarter resulted in EBITDA margin expansion of 225 basis points over the prior period. Additionally, we deployed capital to drive future growth by acquiring PayByPhone and repurchasing $530 million of FLEETCOR stock in the quarter, inclusive of the August ASR.”
Updated Fiscal Year 2023 Outlook:
“Our guidance for the rest of the year has been updated to reflect our updated macro outlook for the remainder of the year, as well as our recent acquisition and divestiture. We currently expect our fourth quarter revenue and adjusted net income per share to grow approximately 10% and 11%, respectively,” concluded Panther.
For fiscal year 2023, FLEETCOR Technologies, Inc.'s updated financial guidance1 is as follows:
•Total revenues between $3,774 million and $3,804 million;
•Net income between $977 million and $1,001 million;
•Net income per diluted share between $13.14 and $13.44;
•Adjusted net income between $1,252 million and $1,276 million; and
•Adjusted net income per diluted share between $16.82 and $17.12.
FLEETCOR’s guidance assumptions are as follows:
For the balance of the year:
•Weighted average U.S. fuel prices of $3.96 per gallon;
•Market fuel spreads unfavorable to the fourth quarter of 2022;
•Foreign exchange rates equal to the monthly average for October 2023; and
•Fourth quarter revenues of $953 million to $983 million and adjusted net income per diluted share of $4.34 to $4.64.
For the full year:
•Interest expense between $340 million and $350 million;
•Approximately 74.5 million fully diluted shares outstanding;
•A tax rate of 26% to 27%; and
•No impact related to acquisitions and dispositions not already closed.
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.
Conference Call:
The Company will host a conference call to discuss third quarter 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 16769203. The replay will be available until November 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; other risks related to our international operations, including the impact of the global military conflicts between Russia and Ukraine and in the Middle East, on our business and operations, the potential impact to our business as a result of the United Kingdom’s exit from the European Union; and the impact of foreign exchange rates on operations, revenues and income; and the failure or compromise of our data centers and other information technology assets; as well as the other risks and uncertainties identified under the caption "Risk Factors" in FLEETCOR's Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (“SEC”) on February 28, 2023 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 FLEETCOR’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.
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 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.
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 North America, Latin America, Europe, and Asia Pacific. For more information, please visit www.FLEETCOR.com.
Contact:
Investor Relations
Jim Eglseder, 770-417-4697
Jim.Eglseder@fleetcor.com
FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Income
(In thousands, except per share amounts)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||
| Revenues, net | $ | 970,892 | $ | 893,000 | 9 | % | $ | 2,820,399 | $ | 2,543,519 | 11 | % |
| Expenses: | ||||||||||||
| Processing | 208,217 | 203,315 | 2 | % | 618,449 | 563,097 | 10 | % | ||||
| Selling | 85,954 | 74,005 | 16 | % | 253,958 | 230,218 | 10 | % | ||||
| General and administrative | 147,839 | 149,294 | (1) | % | 461,879 | 440,262 | 5 | % | ||||
| Depreciation and amortization | 84,750 | 77,213 | 10 | % | 252,658 | 232,489 | 9 | % | ||||
| Other operating, net | (845) | 3 | NM | 633 | 82 | NM | ||||||
| Total operating expense | 525,915 | 503,830 | 4 | % | 1,587,577 | 1,466,148 | 8 | % | ||||
| Operating income | 444,977 | 389,170 | 14 | % | 1,232,822 | 1,077,371 | 14 | % | ||||
| Other expenses: | ||||||||||||
| Investment loss (gain) | 30 | 174 | NM | (142) | 519 | NM | ||||||
| Other (income) expense, net | (13,432) | 3,688 | NM | (15,110) | 6,187 | NM | ||||||
| Interest expense, net | 88,285 | 45,410 | 94 | % | 256,566 | 90,510 | 183 | % | ||||
| Loss on extinguishment of debt | — | — | NM | — | 1,934 | NM | ||||||
| Total other expense | 74,883 | 49,272 | 52 | % | 241,314 | 99,150 | 143 | % | ||||
| Income before income taxes | 370,094 | 339,898 | 9 | % | 991,508 | 978,221 | 1 | % | ||||
| Provision for income taxes | 98,598 | 91,013 | 8 | % | 265,475 | 249,213 | 7 | % | ||||
| Net income | $ | 271,496 | $ | 248,885 | 9 | % | $ | 726,033 | $ | 729,008 | — | % |
| Basic earnings per share | $ | 3.71 | $ | 3.34 | 11 | % | $ | 9.87 | $ | 9.55 | 3 | % |
| Diluted earnings per share | $ | 3.64 | $ | 3.29 | 10 | % | $ | 9.72 | $ | 9.38 | 4 | % |
| Weighted average shares outstanding: | ||||||||||||
| Basic shares | 73,165 | 74,461 | 73,523 | 76,311 | ||||||||
| Diluted shares | 74,604 | 75,558 | 74,733 | 77,687 |
NM- Not Meaningful
FLEETCOR Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands)
| September 30, 2023 | December 31, 2022 | |||
|---|---|---|---|---|
| (Unaudited) | ||||
| Assets | ||||
| Current assets: | ||||
| Cash and cash equivalents | $ | 1,094,234 | $ | 1,435,163 |
| Restricted cash | 1,221,279 | 854,017 | ||
| Accounts and other receivables (less allowance) | 2,655,275 | 2,064,745 | ||
| Securitized accounts receivable — restricted for securitization investors | 1,396,000 | 1,287,000 | ||
| Prepaid expenses and other current assets | 493,470 | 465,227 | ||
| Total current assets | 6,860,258 | 6,106,152 | ||
| Property and equipment, net | 329,992 | 294,692 | ||
| Goodwill | 5,553,546 | 5,201,435 | ||
| Other intangibles, net | 2,164,999 | 2,130,974 | ||
| Investments | 67,964 | 74,281 | ||
| Other assets | 287,708 | 281,726 | ||
| Total assets | $ | 15,264,467 | $ | 14,089,260 |
| Liabilities and Stockholders’ Equity | ||||
| Current liabilities: | ||||
| Accounts payable | $ | 1,895,280 | $ | 1,568,942 |
| Accrued expenses | 393,439 | 351,936 | ||
| Customer deposits | 1,783,311 | 1,505,004 | ||
| Securitization facility | 1,396,000 | 1,287,000 | ||
| Current portion of notes payable and lines of credit | 949,803 | 1,027,056 | ||
| Other current liabilities | 320,386 | 303,517 | ||
| Total current liabilities | 6,738,219 | 6,043,455 | ||
| Notes payable and other obligations, less current portion | 4,637,211 | 4,722,838 | ||
| Deferred income taxes | 548,943 | 527,465 | ||
| Other noncurrent liabilities | 280,643 | 254,009 | ||
| Total noncurrent liabilities | 5,466,797 | 5,504,312 | ||
| Commitments and contingencies | ||||
| Stockholders’ equity: | ||||
| Common stock | 129 | 128 | ||
| Additional paid-in capital | 3,227,476 | 3,049,570 | ||
| Retained earnings | 7,936,802 | 7,210,769 | ||
| Accumulated other comprehensive loss | (1,361,934) | (1,509,650) | ||
| Treasury stock | (6,743,022) | (6,209,324) | ||
| Total stockholders’ equity | 3,059,451 | 2,541,493 | ||
| Total liabilities and stockholders’ equity | $ | 15,264,467 | $ | 14,089,260 |
FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Cash Flows
(In thousands)
| Nine Months Ended September 30, | ||||
|---|---|---|---|---|
| 2023 | 2022 | |||
| Operating activities | ||||
| Net income | $ | 726,033 | $ | 729,008 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||||
| Depreciation | 82,028 | 67,066 | ||
| Stock-based compensation | 89,917 | 100,828 | ||
| Provision for credit losses on accounts and other receivables | 103,495 | 89,976 | ||
| Amortization of deferred financing costs and discounts | 5,417 | 5,949 | ||
| Amortization of intangible assets and premium on receivables | 170,630 | 165,423 | ||
| Loss on extinguishment of debt | — | 1,934 | ||
| Deferred income taxes | (18,911) | (7,987) | ||
| Gain on disposition of business | (13,712) | — | ||
| Other non-cash operating expense, net | 491 | 601 | ||
| Changes in operating assets and liabilities (net of acquisitions/disposition): | ||||
| Accounts and other receivables | (809,487) | (950,237) | ||
| Prepaid expenses and other current assets | 114,237 | (25,570) | ||
| Derivative assets and liabilities, net | (7,939) | 10,756 | ||
| Other assets | 33,090 | (16,154) | ||
| Accounts payable, accrued expenses and customer deposits | 428,580 | 267,014 | ||
| Net cash provided by operating activities | 903,869 | 438,607 | ||
| Investing activities | ||||
| Acquisitions, net of cash acquired | (429,914) | (160,117) | ||
| Purchases of property and equipment | (117,158) | (107,631) | ||
| Proceeds from disposal of a business, net of cash disposed | 197,025 | — | ||
| Other | 4,401 | — | ||
| Net cash used in investing activities | (345,646) | (267,748) | ||
| Financing activities | ||||
| Proceeds from issuance of common stock | 101,202 | 22,109 | ||
| Repurchase of common stock | (546,910) | (1,295,644) | ||
| Borrowings on securitization facility, net | 109,000 | 364,000 | ||
| Deferred financing costs paid and debt discount | (238) | (10,282) | ||
| Proceeds from issuance of notes payable | — | 3,000,000 | ||
| Principal payments on notes payable | (70,500) | (2,800,500) | ||
| Borrowings from revolver | 6,495,000 | 4,338,000 | ||
| Payments on revolver | (6,770,000) | (3,658,000) | ||
| Borrowings on swing line of credit, net | 180,723 | 194 | ||
| Other | 264 | — | ||
| Net cash used in financing activities | (501,459) | (40,123) | ||
| Effect of foreign currency exchange rates on cash | (30,431) | (80,551) | ||
| Net increase in cash and cash equivalents and restricted cash | 26,333 | 50,185 | ||
| 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 | $ | 2,315,513 | $ | 2,300,880 |
| Supplemental cash flow information | ||||
| Cash paid for interest, net | $ | 327,099 | $ | 138,310 |
| Cash paid for income taxes, net | $ | 319,764 | $ | 309,567 |
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 September 30, | Nine Months Ended September 30, | |||||||
|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |||||
| Net income | $ | 271,496 | $ | 248,885 | $ | 726,033 | $ | 729,008 |
| Stock based compensation | 29,073 | 34,180 | 89,917 | 100,828 | ||||
| Amortization1 | 58,304 | 55,748 | 176,047 | 171,372 | ||||
| Integration and deal related costs | 9,269 | 4,861 | 24,734 | 14,071 | ||||
| Legal settlements/litigation | 1,473 | 2,783 | 1,957 | 4,685 | ||||
| Restructuring, related and other2 costs | 2,314 | 507 | 3,017 | 1,270 | ||||
| Gain on disposition of business | (13,712) | — | (13,712) | — | ||||
| Loss on extinguishment of debt | — | — | — | 1,934 | ||||
| Total pre-tax adjustments | 86,721 | 98,079 | 281,960 | 294,160 | ||||
| Income taxes | (23,104) | (26,262) | (75,540) | (86,667) | ||||
| Adjusted net income | $ | 335,113 | $ | 320,702 | $ | 932,453 | $ | 936,501 |
| Adjusted net income per diluted share | $ | 4.49 | $ | 4.24 | $ | 12.48 | $ | 12.06 |
| Diluted shares | 74,604 | 75,558 | 74,733 | 77,687 | ||||
| 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 ($1.9 million) and ($4.1 million) for the quarter and year to date, respectively. | ||||||||
| *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 September 30, | Three Months Ended September 30, | |||||||||
| 2023 | 2022 | Change | % <br>Change | 2023 | 2022 | Change | % <br>Change | |||
| FLEET | ||||||||||
| '- Revenues, net | 365.5 | 395.2 | (29.7) | (8) | % | 396.7 | 381.1 | 15.6 | 4 | % |
| '- Transactions | 122.0 | 123.4 | (1.4) | (1) | % | 122.0 | 124.1 | (2.1) | (2) | % |
| '- Revenues, net per transaction | 2.99 | 3.20 | (0.21) | (6) | % | 3.25 | 3.07 | 0.18 | 6 | % |
| CORPORATE PAYMENTS | ||||||||||
| '- Revenues, net | 258.8 | 196.9 | 61.9 | 31 | % | 256.8 | 213.7 | 43.1 | 20 | % |
| '- Spend volume | 39,446 | 30,609 | 8,837 | 29 | % | 39,446 | 32,828 | 6,618 | 20 | % |
| '- Revenues, net per spend $ | 0.66 | 0.64 | 0.01 | 2 | % | 0.65 | 0.65 | — | — | % |
| LODGING | ||||||||||
| '- Revenues, net | 141.4 | 126.0 | 15.4 | 12 | % | 141.0 | 128.6 | 12.4 | 10 | % |
| '- Room nights | 9.2 | 9.9 | (0.7) | (7) | % | 9.2 | 10.0 | (0.9) | (9) | % |
| '- Revenues, net per room night | 15.41 | 12.78 | 2.62 | 21 | % | 15.36 | 12.81 | 2.55 | 20 | % |
| BRAZIL | ||||||||||
| '- Revenues, net | 134.2 | 108.6 | 25.6 | 24 | % | 126.0 | 108.6 | 17.4 | 16 | % |
| '- Tags (average monthly) | 6.7 | 6.2 | 0.4 | 7 | % | 6.7 | 6.2 | 0.4 | 7 | % |
| '- Revenues, net per tag | 20.16 | 17.47 | 2.69 | 15 | % | 18.94 | 17.47 | 1.47 | 8 | % |
| OTHER1 | ||||||||||
| '- Revenues, net | 71.0 | 66.3 | 4.7 | 7 | % | 70.5 | 66.3 | 4.2 | 6 | % |
| '- Transactions | 296.6 | 249.4 | 47.1 | 19 | % | 296.6 | 249.4 | 47.1 | 19 | % |
| '- Revenues, net per transaction | 0.24 | 0.27 | (0.03) | (10) | % | 0.24 | 0.27 | (0.03) | (11) | % |
| FLEETCOR CONSOLIDATED REVENUES | ||||||||||
| '- Revenues, net | 970.9 | 893.0 | 77.9 | 9 | % | 991.1 | 898.3 | 92.8 | 10 | % |
All values are in US Dollars.
| 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 September 30, | Nine Months Ended September 30, | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | % | 2022 | % | 2023 | % | 2022 | % | |||||||||
| US | $ | 561 | 58 | % | $ | 558 | 63 | % | $ | 1,610 | 57 | % | $ | 1,558 | 61 | % |
| Brazil | 134 | 14 | % | 109 | 12 | % | 382 | 14 | % | 323 | 13 | % | ||||
| UK | 115 | 12 | % | 90 | 10 | % | 333 | 12 | % | 278 | 11 | % | ||||
| Other | 161 | 17 | % | 136 | 15 | % | 495 | 18 | % | 384 | 15 | % | ||||
| Consolidated Revenues, net | $ | 971 | 100 | % | $ | 893 | 100 | % | $ | 2,820 | 100 | % | $ | 2,544 | 100 | % |
*Columns may not calculate due to rounding.
| Revenues, net by Segment* | Three Months Ended September 30, | Nine Months Ended September 30, | ||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | % | 2022 | % | 2023 | % | 2022 | % | |||||||||
| Fleet | $ | 366 | 38 | % | $ | 395 | 44 | % | $ | 1,121 | 40 | % | $ | 1,124 | 44 | % |
| Corporate Payments | 259 | 27 | % | 197 | 22 | % | 733 | 26 | % | 570 | 22 | % | ||||
| Lodging | 141 | 15 | % | 126 | 14 | % | 400 | 14 | % | 337 | 13 | % | ||||
| Brazil | 134 | 14 | % | 109 | 12 | % | 382 | 14 | % | 323 | 13 | % | ||||
| Other | 71 | 7 | % | 66 | 7 | % | 184 | 7 | % | 189 | 7 | % | ||||
| Consolidated Revenues, net | $ | 971 | 100 | % | $ | 893 | 100 | % | $ | 2,820 | 100 | % | $ | 2,544 | 100 | % |
| *Columns may not calculate due to rounding. Segment and solutions reporting have converged to be the same. The recent acquisition of a parking business is included in our Fleet segment. The recent disposition of our Russian business is also included in our Fleet segment. | ||||||||||||||||
| --- |
Exhibit 4
Segment Results*
(In thousands)
(Unaudited)
| Three Months Ended September 30, | Nine Months Ended September 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 20231 | 2022 | % Change | 20231 | 2022 | % Change | |||||||
| Revenues, net: | ||||||||||||
| Fleet | $ | 365,502 | $ | 395,203 | (8) | % | $ | 1,120,823 | $ | 1,124,157 | — | % |
| Corporate Payments | 258,800 | 196,941 | 31 | % | 732,958 | 570,408 | 28 | % | ||||
| Lodging | 141,389 | 125,961 | 12 | % | 400,287 | 337,438 | 19 | % | ||||
| Brazil | 134,172 | 108,583 | 24 | % | 381,998 | 322,945 | 18 | % | ||||
| Other1 | 71,028 | 66,312 | 7 | % | 184,333 | 188,571 | (2) | % | ||||
| $ | 970,891 | $ | 893,000 | 9 | % | $ | 2,820,399 | $ | 2,543,519 | 11 | % | |
| Operating income: | ||||||||||||
| Fleet | $ | 186,614 | $ | 192,598 | (3) | % | $ | 547,637 | $ | 547,233 | — | % |
| Corporate Payments | 102,143 | 69,669 | 47 | % | 265,100 | 193,735 | 37 | % | ||||
| Lodging | 74,023 | 63,463 | 17 | % | 196,832 | 161,802 | 22 | % | ||||
| Brazil | 61,054 | 44,646 | 37 | % | 168,673 | 123,591 | 36 | % | ||||
| Other1 | 21,143 | 18,794 | 12 | % | 54,580 | 51,010 | 7 | % | ||||
| $ | 444,977 | $ | 389,170 | 14 | % | $ | 1,232,822 | $ | 1,077,371 | 14 | % | |
| Depreciation and amortization: | ||||||||||||
| Fleet | $ | 34,219 | $ | 34,897 | (2) | % | $ | 104,147 | $ | 104,531 | — | % |
| Corporate Payments | 21,114 | 15,864 | 33 | % | 61,458 | 48,936 | 26 | % | ||||
| Lodging | 12,189 | 10,474 | 16 | % | 35,247 | 31,329 | 13 | % | ||||
| Brazil | 14,989 | 13,756 | 9 | % | 45,065 | 41,164 | 9 | % | ||||
| Other1 | 2,239 | 2,222 | 1 | % | 6,741 | 6,529 | 3 | % | ||||
| $ | 84,750 | $ | 77,213 | 10 | % | $ | 252,658 | $ | 232,489 | 9 | % | |
| Capital expenditures: | ||||||||||||
| Fleet | $ | 18,261 | $ | 20,960 | (13) | % | $ | 56,126 | $ | 55,197 | 2 | % |
| Corporate Payments | 6,969 | 5,952 | 17 | % | 22,235 | 15,598 | 43 | % | ||||
| Lodging | 3,661 | 3,309 | 11 | % | 10,534 | 7,068 | 49 | % | ||||
| Brazil | 7,856 | 9,273 | (15) | % | 23,386 | 22,871 | 2 | % | ||||
| Other1 | 1,489 | 1,508 | (1) | % | 4,877 | 6,897 | (29) | % | ||||
| $ | 38,236 | $ | 41,002 | (7) | % | $ | 117,158 | $ | 107,631 | 9 | % | |
| 1Other includes Gift and Payroll Card operating segments. | ||||||||||||
| --- | ||||||||||||
| *Columns may not calculate due to rounding. The recent acquisition of a parking business is included in our Fleet segment. The recent disposition of our Russian business is also included in our Fleet segment. |
Exhibit 5
Reconciliation of Non-GAAP Revenue and Key Performance Metric by Segment to GAAP
(In millions)
(Unaudited)
| Key Performance Metric | |||||||
|---|---|---|---|---|---|---|---|
| Three Months Ended September 30, | |||||||
| 2022* | 2023* | 2022* | |||||
| FLEET - TRANSACTIONS | |||||||
| Pro forma and macro adjusted | 396.7 | $ | 381.1 | 122.0 | 124.1 | ||
| Impact of acquisitions/dispositions | 14.1 | — | (0.7) | ||||
| Impact of fuel prices/spread | — | — | — | ||||
| Impact of foreign exchange rates | — | — | — | ||||
| As reported | 365.5 | $ | 395.2 | 122.0 | 123.4 | ||
| CORPORATE PAYMENTS - SPEND | |||||||
| Pro forma and macro adjusted | 256.8 | $ | 213.7 | $ | 39,446 | $ | 32,828 |
| Impact of acquisitions/dispositions | (16.8) | — | (2,219) | ||||
| Impact of fuel prices/spread | — | — | — | ||||
| Impact of foreign exchange rates | — | — | — | ||||
| As reported | 258.8 | $ | 196.9 | $ | 39,446 | $ | 30,609 |
| LODGING - ROOM NIGHTS | |||||||
| Pro forma and macro adjusted | 141.0 | $ | 128.6 | 9.2 | 10.0 | ||
| Impact of acquisitions/dispositions | (2.6) | — | (0.2) | ||||
| Impact of fuel prices/spread | — | — | — | ||||
| Impact of foreign exchange rates | — | — | — | ||||
| As reported | 141.4 | $ | 126.0 | 9.2 | 9.9 | ||
| BRAZIL - TAGS | |||||||
| Pro forma and macro adjusted | 126.0 | $ | 108.6 | 6.7 | 6.2 | ||
| Impact of acquisitions/dispositions | — | — | — | ||||
| Impact of fuel prices/spread | — | — | — | ||||
| Impact of foreign exchange rates | — | — | — | ||||
| As reported | 134.2 | $ | 108.6 | 6.7 | 6.2 | ||
| OTHER1 - TRANSACTIONS | |||||||
| Pro forma and macro adjusted | 70.5 | $ | 66.3 | 296.6 | 249.4 | ||
| Impact of acquisitions/dispositions | — | — | — | ||||
| Impact of fuel prices/spread | — | — | — | ||||
| Impact of foreign exchange rates | — | — | — | ||||
| As reported | 71.0 | $ | 66.3 | 296.6 | 249.4 | ||
| FLEETCOR CONSOLIDATED REVENUES | |||||||
| Pro forma and macro adjusted | 991.1 | $ | 898.3 | Intentionally Left Blank | |||
| Impact of acquisitions/dispositions | (5.3) | ||||||
| Impact of fuel prices/spread2 | — | ||||||
| Impact of foreign exchange rates2 | — | ||||||
| As reported | 970.9 | $ | 893.0 | ||||
| * Columns may not calculate due to rounding. | |||||||
| 1Other includes Gift and Payroll Card operating segments. | |||||||
| 2 Revenues reflect an estimated 23 million and 12 million negative impact from fuel price spreads and fuel prices, respectively, partially offset by the positive impact of movements in foreign exchange rates of approximately 15 million. |
All values are in US Dollars.
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 September 30, | Nine Months Ended September 30, | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 2023 | 2022 | 2023 | 2022 | |||||||||
| Net income | $ | 271.5 | $ | 248.9 | $ | 726.0 | $ | 729.0 | ||||
| Provision for income taxes | 98.6 | 91.0 | 265.5 | 249.2 | ||||||||
| Interest expense, net | 88.3 | 45.4 | 256.6 | 90.5 | ||||||||
| Other (income) expense | (13.4) | 3.7 | (15.1) | 6.2 | ||||||||
| Investment loss (gain) | — | 0.2 | (0.1) | 0.5 | ||||||||
| Depreciation and amortization | 84.8 | 77.2 | 252.7 | 232.5 | ||||||||
| Loss on extinguishment of debt | — | — | — | 1.9 | ||||||||
| Other operating, net | (0.8) | — | 0.6 | 0.1 | ||||||||
| EBITDA | $ | 528.9 | $ | 466.4 | $ | 1,486.1 | $ | 1,309.9 | ||||
| Revenues, net | $ | 970.9 | $ | 893.0 | $ | 2,820.4 | $ | 2,543.5 | ||||
| EBITDA margin | 54.5 | % | 52.2 | % | 52.7 | % | 51.5 | % | ||||
| * 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 fourth 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.
| Q4 2023 GUIDANCE | ||||
|---|---|---|---|---|
| Low* | High* | |||
| Net income | $ | 251 | $ | 275 |
| Net income per diluted share | $ | 3.42 | $ | 3.72 |
| Stock based compensation | 29 | 29 | ||
| Amortization | 59 | 59 | ||
| Other | 5 | 5 | ||
| Total pre-tax adjustments | 93 | 93 | ||
| Income taxes | 25 | 25 | ||
| Adjusted net income | $ | 319 | $ | 343 |
| Adjusted net income per diluted share | $ | 4.34 | $ | 4.64 |
| Diluted shares | 74 | 74 | ||
| 2023 GUIDANCE | ||||
| Low* | High* | |||
| Net income | $ | 977 | $ | 1,001 |
| Net income per diluted share | $ | 13.14 | $ | 13.44 |
| Stock based compensation | 120 | 120 | ||
| Amortization | 235 | 235 | ||
| Other | 20 | 20 | ||
| Total pre-tax adjustments | 375 | 375 | ||
| Income taxes | 99 | 99 | ||
| Adjusted net income | $ | 1,252 | $ | 1,276 |
| Adjusted net income per diluted share | $ | 16.82 | $ | 17.12 |
| Diluted shares | 74 | 74 | ||
| *Columns may not calculate due to rounding. | ||||
| --- |