FLEETCOR® Reports Third Quarter 2022 Financial Results

Source:
FLEETCOR Technologies, Inc.

Completes Three Capability Acquisitions

ATLANTA--(BUSINESS WIRE)--Nov. 2, 2022-- FLEETCOR Technologies, Inc. (NYSE: FLT), a leading global business payments company, today reported financial results for its third quarter ended September 30, 2022.

“We reported another strong quarter, with revenues and adjusted net income per share growth of 18% and 21%, respectively,” said Ron Clarke, chairman and chief executive officer, FLEETCOR. “Organic revenue growth was 13% for the quarter, driven by more than 20% growth in both corporate payments and lodging. We completed three capability acquisitions, including EV, corporate payments and an international lodging tuck-in.”

Financial Results for Third Quarter of 2022:

GAAP Results

  • Total revenues increased 18% to $893.0 million in the third quarter of 2022, compared to $755.5 million in the third quarter of 2021.
  • Net income increased 6% to $248.9 million in the third quarter of 2022, compared to $234.0 million in the third quarter of 2021.
  • Net income per diluted share increased 18% to $3.29 in the third quarter of 2022, compared to $2.80 per diluted share in the third quarter of 2021.

Non-GAAP Results1

  • Adjusted net income1 increased 9% to $320.7 million in the third quarter of 2022, compared to $294.4 million in the third quarter of 2021.
  • Adjusted net income per diluted share1 increased 21% to $4.24 in the third quarter of 2022, compared to $3.52 per diluted share in the third quarter of 2021.

“Our third quarter results came in ahead of the expectations we provided in August for revenue, which grew 21% at constant currency, and also adjusted net income per share compared to prior year,” said Alissa Vickery, interim chief financial officer, FLEETCOR. “Our businesses continued the positive trends from the first half of the year, with the majority of the third quarter outperformance coming from organic growth. We repurchased $500 million of FLEETCOR stock in the quarter.”

Updated Fiscal Year 2022 Outlook:

“We are raising full-year 2022 revenue guidance slightly, to reflect our outperformance in the third quarter and maintaining full-year adjusted net income per share guidance, despite unfavorable exchange rates, higher interest and bad debt expense,” concluded Vickery.

For fiscal year 2022, FLEETCOR's updated financial guidance1 is as follows:

  • Total revenues between $3,400 million and $3,420 million;
  • Net income between $939 million and $959 million;
  • Net income per diluted share between $12.24 and $12.44;
  • Adjusted net income between $1,216 million and $1,236 million; and
  • Adjusted net income per diluted share between $15.85 and $16.05.

FLEETCOR’s guidance assumptions are as follows for the fourth quarter:

  • Weighted average U.S. fuel prices equal to $4.25 per gallon;
  • Market spreads favorable to the fourth quarter of 2021;
  • Approximately 74.5 million fully diluted shares outstanding;
  • A tax rate of 27.0% to 28.0%; and
  • Foreign exchange rates equal to the month-to-date average as of October 26, 2022.

FLEETCOR’s guidance assumptions are as follows for 2022:

  • Interest expense between $157 million and $167 million for 2022, which assumes an average reference rate of 3.75% for the fourth quarter;
  • Approximately 77 million fully diluted shares outstanding for 2022; and
  • No impact related to acquisitions not already closed.

1 Reconciliations of GAAP results to non-GAAP results are provided in Exhibit 1 attached. Additional supplemental data is provided in Exhibits 2-5. A reconciliation of GAAP guidance to non-GAAP guidance is provided in Exhibit 6. 

Conference Call:

The Company will host a conference call to discuss third quarter 2022 financial results today at 5:00 pm ET. Hosting the call will be Ron Clarke, chief executive officer, Alissa Vickery, interim 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) 825-9789 or (412) 317-5180 for international callers; the conference ID is 10172757. The replay will be available until Wednesday November 9, 2022. 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 regulatory measures, voluntary actions, or changes in consumer preferences, that impact our transaction volume, including social distancing, shelter-in-place, shutdowns of nonessential businesses and similar measures imposed or undertaken in an effort to contain and mitigate the spread of the coronavirus (including any variants thereof, “COVID-19”) or new outbreaks thereof, including in China; the impact of vaccine mandates on our workforce in certain jurisdictions; adverse changes or volatility in fuel prices and spreads and the current inflationary environment; 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 Russia and Ukraine on our business and operations, the potential impact to our business as a result of the United Kingdom’s referendum to leave the European Union; 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, 2021 filed with the Securities and Exchange Commission (“SEC”) on March 1, 2022 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 occurring largely, but not necessarily exclusively, due to COVID-19, 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 non-tax items 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, 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 non-tax 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.

Management uses adjusted net income, adjusted net income per diluted share and organic revenue growth:

  • 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 100 countries in North America, Latin America, Europe, and Asia Pacific. For more information, please visit www.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,

 

 

 

2022

 

 

2021

 

% Change

 

 

2022

 

 

2021

 

 

% Change

Revenues, net

 

$

893,000

 

$

755,477

 

18

%

 

$

2,543,519

 

$

2,031,481

 

 

25

%

Expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Processing

 

 

203,315

 

 

149,564

 

36

%

 

 

563,097

 

 

388,286

 

 

45

%

Selling

 

 

74,005

 

 

71,204

 

4

%

 

 

230,218

 

 

186,511

 

 

23

%

General and administrative

 

 

149,294

 

 

121,785

 

23

%

 

 

440,262

 

 

345,155

 

 

28

%

Depreciation and amortization

 

 

77,213

 

 

74,237

 

4

%

 

 

232,489

 

 

209,184

 

 

11

%

Other operating, net

 

 

3

 

 

 

 

 

 

82

 

 

81

 

 

1

%

Total operating expense

 

 

503,830

 

 

416,790

 

21

%

 

 

1,466,148

 

 

1,129,217

 

 

30

%

Operating income

 

 

389,170

 

 

338,687

 

15

%

 

 

1,077,371

 

 

902,264

 

 

19

%

Other expenses:

 

 

 

 

 

 

 

 

 

 

 

 

Investment loss (gain)

 

 

174

 

 

 

NM

 

 

 

519

 

 

(9

)

 

NM

 

Other expense (income), net

 

 

3,688

 

 

1,532

 

NM

 

 

 

6,187

 

 

(2,547

)

 

NM

 

Interest expense, net

 

 

45,410

 

 

29,033

 

56

%

 

 

90,510

 

 

92,269

 

 

(2

) %

Loss on extinguishment of debt

 

 

 

 

 

NM

 

 

 

1,934

 

 

6,230

 

 

NM

 

Total other expense

 

 

49,272

 

 

30,565

 

61

%

 

 

99,150

 

 

95,943

 

 

3

%

Income before income taxes

 

 

339,898

 

 

308,122

 

10

%

 

 

978,221

 

 

806,321

 

 

21

%

Provision for income taxes

 

 

91,013

 

 

74,115

 

23

%

 

 

249,213

 

 

191,828

 

 

30

%

Net income

 

$

248,885

 

$

234,007

 

6

%

 

$

729,008

 

$

614,493

 

 

19

%

Basic earnings per share

 

$

3.34

 

$

2.86

 

17

%

 

$

9.55

 

$

7.42

 

 

29

%

Diluted earnings per share

 

$

3.29

 

$

2.80

 

18

%

 

$

9.38

 

$

7.24

 

 

30

%

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

Basic shares

 

 

74,461

 

 

81,836

 

 

 

 

76,311

 

 

82,811

 

 

 

Diluted shares

 

 

75,558

 

 

83,716

 

 

 

 

77,687

 

 

84,917

 

 

 

 

NM- Not Meaningful

 
 

FLEETCOR Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands)

 

 

 

September 30, 2022

 

December 31, 2021

 

 

(Unaudited)

 

 

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

1,317,544

 

 

$

1,520,027

 

Restricted cash

 

 

983,336

 

 

 

730,668

 

Accounts and other receivables (less allowance)

 

 

2,184,629

 

 

 

1,793,274

 

Securitized accounts receivable — restricted for securitization investors

 

 

1,482,000

 

 

 

1,118,000

 

Prepaid expenses and other current assets

 

 

618,559

 

 

 

326,079

 

Total current assets

 

 

6,586,068

 

 

 

5,488,048

 

Property and equipment, net

 

 

272,589

 

 

 

236,294

 

Goodwill

 

 

5,068,954

 

 

 

5,078,978

 

Other intangibles, net

 

 

2,169,232

 

 

 

2,335,385

 

Investments

 

 

74,349

 

 

 

52,016

 

Other assets

 

 

314,832

 

 

 

213,932

 

Total assets

 

$

14,486,024

 

 

$

13,404,653

 

Liabilities and Stockholders’ Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

1,693,988

 

 

$

1,406,350

 

Accrued expenses

 

 

389,953

 

 

 

369,054

 

Customer deposits

 

 

1,599,853

 

 

 

1,788,705

 

Securitization facility

 

 

1,482,000

 

 

 

1,118,000

 

Current portion of notes payable and lines of credit

 

 

994,088

 

 

 

399,628

 

Other current liabilities

 

 

478,283

 

 

 

208,614

 

Total current liabilities

 

 

6,638,165

 

 

 

5,290,351

 

Notes payable and other obligations, less current portion

 

 

4,745,122

 

 

 

4,460,039

 

Deferred income taxes

 

 

571,448

 

 

 

566,291

 

Other noncurrent liabilities

 

 

304,237

 

 

 

221,392

 

Total noncurrent liabilities

 

 

5,620,807

 

 

 

5,247,722

 

Commitments and contingencies

 

 

 

 

Stockholders’ equity:

 

 

 

 

Common stock

 

 

128

 

 

 

127

 

Additional paid-in capital

 

 

3,001,687

 

 

 

2,878,751

 

Retained earnings

 

 

6,985,450

 

 

 

6,256,442

 

Accumulated other comprehensive loss

 

 

(1,660,445

)

 

 

(1,464,616

)

Treasury stock

 

 

(6,099,768

)

 

 

(4,804,124

)

Total stockholders’ equity

 

 

2,227,052

 

 

 

2,866,580

 

Total liabilities and stockholders’ equity

 

$

14,486,024

 

 

$

13,404,653

 

 

FLEETCOR Technologies, Inc. and Subsidiaries

Unaudited Consolidated Statements of Cash Flows

(In thousands)

 

 

 

Nine Months Ended September 30,

 

 

 

2022

 

 

 

2021

 

Operating activities

 

 

 

 

Net income

 

$

729,008

 

 

$

614,493

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation

 

 

67,066

 

 

 

55,605

 

Stock-based compensation

 

 

100,828

 

 

 

52,085

 

Provision for credit losses on accounts and other receivables

 

 

89,976

 

 

 

19,419

 

Amortization of deferred financing costs and discounts

 

 

5,949

 

 

 

4,903

 

Amortization of intangible assets and premium on receivables

 

 

165,423

 

 

 

153,579

 

Loss on extinguishment of debt

 

 

1,934

 

 

 

6,230

 

Deferred income taxes

 

 

(7,987

)

 

 

10,051

 

Other

 

 

601

 

 

 

72

 

Changes in operating assets and liabilities (net of acquisitions):

 

 

 

 

Accounts and other receivables

 

 

(950,237

)

 

 

(1,020,900

)

Prepaid expenses and other current assets

 

 

(300,600

)

 

 

190,543

 

Other assets

 

 

(105,013

)

 

 

28,370

 

Accounts payable, accrued expenses and customer deposits

 

 

641,659

 

 

 

485,091

 

Net cash provided by operating activities

 

 

438,607

 

 

 

599,541

 

Investing activities

 

 

 

 

Acquisitions, net of cash acquired

 

 

(160,117

)

 

 

(545,052

)

Purchases of property and equipment

 

 

(107,631

)

 

 

(74,455

)

Other

 

 

 

 

 

(2,281

)

Net cash used in investing activities

 

 

(267,748

)

 

 

(621,788

)

Financing activities

 

 

 

 

Proceeds from issuance of common stock

 

 

22,109

 

 

 

48,159

 

Repurchase of common stock

 

 

(1,295,644

)

 

 

(822,277

)

Borrowings on securitization facility, net

 

 

364,000

 

 

 

398,000

 

Deferred financing costs paid and debt discount

 

 

(10,282

)

 

 

(21,508

)

Proceeds from issuance of notes payable

 

 

3,000,000

 

 

 

1,150,000

 

Principal payments on notes payable

 

 

(2,800,500

)

 

 

(462,438

)

Borrowings from revolver

 

 

4,338,000

 

 

 

1,140,000

 

Payments on revolver

 

 

(3,658,000

)

 

 

(798,851

)

Borrowings (payments) on swing line of credit, net

 

 

194

 

 

 

(51,049

)

Other

 

 

 

 

 

(811

)

Net cash (used in) provided by financing activities

 

 

(40,123

)

 

 

579,225

 

Effect of foreign currency exchange rates on cash

 

 

(80,551

)

 

 

(24,660

)

Net increase in cash and cash equivalents and restricted cash

 

 

50,185

 

 

 

532,318

 

Cash and cash equivalents and restricted cash, beginning of period

 

 

2,250,695

 

 

 

1,476,619

 

Cash and cash equivalents and restricted cash, end of period

 

$

2,300,880

 

 

$

2,008,937

 

Supplemental cash flow information

 

 

 

 

Cash paid for interest, net

 

$

138,310

 

 

$

96,146

 

Cash paid for income taxes, net

 

$

309,567

 

 

$

147,028

 

 

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,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

Net income

 

$

248,885

 

 

$

234,007

 

 

$

729,008

 

 

$

614,493

 

 

 

 

 

 

 

 

 

 

Stock based compensation

 

 

34,180

 

 

 

16,453

 

 

 

100,828

 

 

 

52,085

 

Amortization1

 

 

55,748

 

 

 

56,381

 

 

 

171,372

 

 

 

158,482

 

Integration and deal related costs

 

 

4,861

 

 

 

6,638

 

 

 

14,071

 

 

 

18,132

 

Legal settlements/litigation

 

 

2,783

 

 

 

561

 

 

 

4,685

 

 

 

5,619

 

Restructuring and related costs

 

 

507

 

 

 

(568

)

 

 

1,270

 

 

 

(1,931

)

Loss on extinguishment of debt

 

 

 

 

 

 

 

 

1,934

 

 

 

6,230

 

Total pre-tax adjustments

 

 

98,079

 

 

 

79,465

 

 

 

294,160

 

 

 

238,617

 

Income taxes2

 

 

(26,262

)

 

 

(19,114

)

 

 

(86,667

)

 

 

(48,193

)

Adjusted net income

 

$

320,702

 

 

$

294,358

 

 

$

936,501

 

 

$

804,917

 

Adjusted net income per diluted share

 

$

4.24

 

 

$

3.52

 

 

$

12.06

 

 

$

9.48

 

 

 

 

 

 

 

 

 

 

Diluted shares

 

 

75,558

 

 

 

83,716

 

 

 

77,687

 

 

 

84,917

 

 

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

2 Includes $9.0 million adjustment for tax benefit of certain income determined to be permanently invested in 2Q 2022.

*Columns may not calculate due to rounding.

 
 

 

Exhibit 2

Key Performance Indicators, by Solution 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 solution.*

 

 

 

As Reported

 

Pro Forma and Macro Adjusted2

 

 

Three Months Ended September 30,

 

Three Months Ended September 30,

 

 

2022

 

2021

 

Change

 

%

Change

 

2022

 

2021

 

Change

 

%

Change

FUEL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Revenues, net

 

$361.8

 

$306.8

 

$55.0

 

18%

 

$321.2

 

$306.9

 

$14.3

 

5%

- Transactions

 

123.8

 

117.7

 

6.1

 

5%

 

123.8

 

119.1

 

4.7

 

4%

- Revenues, net per transaction

 

$2.92

 

$2.61

 

$0.31

 

12%

 

$2.59

 

$2.57

 

$0.02

 

1%

CORPORATE PAYMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Revenues, net

 

$196.9

 

$168.7

 

$28.3

 

17%

 

$205.0

 

$169.0

 

$36.0

 

21%

- Spend volume

 

$30,609

 

$25,666

 

$4,943

 

19%

 

$30,609

 

$25,666

 

$4,943

 

19%

- Revenues, net per spend $

 

0.64%

 

0.66%

 

(0.01)%

 

(2)%

 

0.67%

 

0.66%

 

0.01%

 

2%

TOLLS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Revenues, net

 

$88.6

 

$79.0

 

$9.6

 

12%

 

$88.8

 

$79.0

 

$9.7

 

12%

- Tags (average monthly)

 

6.2

 

6.0

 

0.3

 

4%

 

6.2

 

6.0

 

0.3

 

4%

- Revenues, net per tag

 

$14.26

 

$13.25

 

$1.01

 

8%

 

$14.29

 

$13.25

 

$1.03

 

8%

LODGING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Revenues, net

 

$126.0

 

$85.2

 

$40.7

 

48%

 

$126.6

 

$99.1

 

$27.6

 

28%

- Room nights

 

9.9

 

7.6

 

2.2

 

29%

 

9.9

 

8.7

 

1.2

 

14%

- Revenues, net per room night

 

$12.78

 

$11.14

 

$1.64

 

15%

 

$12.85

 

$11.41

 

$1.44

 

13%

GIFT

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Revenues, net

 

$52.0

 

$48.6

 

$3.3

 

7%

 

$53.2

 

$48.6

 

$4.6

 

9%

- Transactions

 

249.4

 

256.2

 

(6.7)

 

(3)%

 

249.4

 

256.2

 

(6.7)

 

(3)%

- Revenues, net per transaction

 

$0.21

 

$0.19

 

$0.02

 

10%

 

$0.21

 

$0.19

 

$0.02

 

12%

OTHER1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Revenues, net

 

$67.7

 

$67.2

 

$0.5

 

1%

 

$71.3

 

$67.2

 

$4.1

 

6%

- Transactions

 

10.5

 

8.9

 

1.6

 

18%

 

10.5

 

8.9

 

1.6

 

18%

- Revenues, net per transaction

 

$6.46

 

$7.58

 

$(1.12)

 

(15)%

 

$6.80

 

$7.58

 

$(0.78)

 

(10)%

FLEETCOR CONSOLIDATED REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Revenues, net

 

$893.0

 

$755.5

 

$137.5

 

18%

 

$866.1

 

$769.7

 

$96.3

 

13%

1 Other includes telematics, maintenance, food, payroll card and transportation related businesses.

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 Solution

(In millions)

(Unaudited)

 

 
 
Revenues, net by Geography*

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2022

 

%

 

2021

 

%

 

2022

 

%

 

2021

 

%

US

$

558

 

63

%

 

$

488

 

65

%

 

$

1,558

 

61

%

 

$

1,271

 

63

%

Brazil

 

109

 

12

%

 

 

95

 

13

%

 

 

323

 

13

%

 

 

262

 

13

%

UK

 

90

 

10

%

 

 

82

 

11

%

 

 

278

 

11

%

 

 

241

 

12

%

Other

 

136

 

15

%

 

 

91

 

12

%

 

 

384

 

15

%

 

 

256

 

13

%

Consolidated Revenues, net

$

893

 

100

%

 

$

755

 

100

%

 

$

2,544

 

100

%

 

$

2,031

 

100

%

*Columns may not calculate due to rounding.

 
Revenues, net by Solution*

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

2022

 

%

 

2021

 

%

 

2022

 

%

 

2021

 

%

Fuel

$

362

 

41

%

 

$

307

 

41

%

 

$

1,027

 

40

%

 

$

864

 

43

%

Corporate Payments

 

197

 

22

%

 

 

169

 

22

%

 

 

570

 

22

%

 

 

425

 

21

%

Tolls

 

89

 

10

%

 

 

79

 

10

%

 

 

265

 

10

%

 

 

219

 

11

%

Lodging

 

126

 

14

%

 

 

85

 

11

%

 

 

337

 

13

%

 

 

206

 

10

%

Gift

 

52

 

6

%

 

 

49

 

6

%

 

 

147

 

6

%

 

 

124

 

6

%

Other

 

68

 

8

%

 

 

67

 

9

%

 

 

197

 

8

%

 

 

192

 

9

%

Consolidated Revenues, net

$

893

 

100

%

 

$

755

 

100

%

 

$

2,544

 

100

%

 

$

2,031

 

100

%

*Columns may not calculate due to rounding.

 

 

Exhibit 4

Segment Results*

(In thousands)

(Unaudited)

 

 

 

 

Three Months Ended September 30,

 

Nine Months Ended September 30,

 

 

20221

 

2021

 

% Change

 

20221

 

2021

 

% Change

Revenues, net:

 

 

 

 

 

 

 

 

 

 

 

 

Fleet

 

$

395,203

 

$

343,194

 

15

%

 

$

1,124,157

 

$

971,258

 

16

%

Corporate Payments

 

 

196,941

 

 

168,684

 

17

%

 

 

570,408

 

 

425,466

 

34

%

Lodging

 

 

125,961

 

 

85,214

 

48

%

 

 

337,438

 

 

206,498

 

63

%

Brazil

 

 

108,583

 

 

94,888

 

14

%

 

 

322,945

 

 

262,481

 

23

%

Other2

 

 

66,312

 

 

63,497

 

4

%

 

 

188,571

 

 

165,778

 

14

%

 

 

$

893,000

 

$

755,477

 

18

%

 

$

2,543,519

 

$

2,031,481

 

25

%

Operating income:

 

 

 

 

 

 

 

 

 

 

 

 

Fleet

 

$

192,598

 

$

181,787

 

6

%

 

$

547,233

 

$

501,406

 

9

%

Corporate Payments

 

 

69,669

 

 

53,512

 

30

%

 

 

193,735

 

 

146,526

 

32

%

Lodging

 

 

63,463

 

 

44,027

 

44

%

 

 

161,802

 

 

98,801

 

64

%

Brazil

 

 

44,646

 

 

39,943

 

12

%

 

 

123,591

 

 

105,499

 

17

%

Other2

 

 

18,794

 

 

19,418

 

(3

) %

 

 

51,010

 

 

50,032

 

2

%

 

 

$

389,170

 

$

338,687

 

15

%

 

$

1,077,371

 

$

902,264

 

19

%

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

 

 

Fleet

 

$

34,897

 

$

36,378

 

(4

) %

 

$

104,531

 

$

109,417

 

(4

) %

Corporate Payments

 

 

15,864

 

 

15,526

 

2

%

 

 

48,936

 

 

37,079

 

32

%

Lodging

 

 

10,474

 

 

7,301

 

43

%

 

 

31,329

 

 

17,685

 

77

%

Brazil

 

 

13,756

 

 

12,910

 

7

%

 

 

41,164

 

 

38,091

 

8

%

Other2

 

 

2,222

 

 

2,122

 

5

%

 

 

6,529

 

 

6,912

 

(6

) %

 

 

$

77,213

 

$

74,237

 

4

%

 

$

232,489

 

$

209,184

 

11

%

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

 

 

Fleet

 

$

20,960

 

$

15,107

 

39

%

 

$

55,197

 

$

41,825

 

32

%

Corporate Payments

 

 

5,952

 

 

3,799

 

57

%

 

 

15,598

 

 

9,154

 

70

%

Lodging

 

 

3,309

 

 

1,555

 

113

%

 

 

7,068

 

 

3,419

 

107

%

Brazil

 

 

9,273

 

 

6,455

 

44

%

 

 

22,871

 

 

15,580

 

47

%

Other2

 

 

9,273

 

 

1,774

 

423

%

 

 

6,897

 

 

4,477

 

54

%

 

 

$

48,767

 

$

28,690

 

70

%

 

$

107,631

 

$

74,455

 

45

%

1 Results from Levarti acquired in the first quarter of 2022 are reported in our Lodging segment. Results from Accrualify and Plugsurfing acquired in the third quarter of 2022 are reported in our Corporate Payments and Fleet segments, respectively.

2 Other includes gift and payroll card components.

* In the second quarter of 2022, in order to align with recent changes in the organizational structure and management reporting, the Company has recast its segments into Fleet, Corporate Payments, Lodging, Brazil and Other. The presentation of segment information has been recast for the prior periods to align with segment presentation for the three and nine months ended September 30, 2022.

 

Exhibit 5

Reconciliation of Non-GAAP Revenue and Key Performance Metric by Solution to GAAP

(In millions)

(Unaudited)

 

 

 

Revenues, net

 

 

Key Performance Metric

 

 

Three Months Ended September 30,

 

Three Months Ended September 30,

 

 

2022*

 

2021*

 

 

2022*

 

2021*

FUEL - TRANSACTIONS

 

 

 

 

 

 

 

 

 

Pro forma and macro adjusted

 

$

321.2

 

 

$

306.9

 

 

 

 

123.8

 

 

119.1

 

Impact of acquisitions/dispositions

 

 

 

 

 

(0.1

)

 

 

 

 

 

(1.4

)

Impact of fuel prices/spread

 

 

47.2

 

 

 

 

 

 

 

 

 

 

Impact of foreign exchange rates

 

 

(6.6

)

 

 

 

 

 

 

 

 

 

As reported

 

$

361.8

 

 

$

306.8

 

 

 

 

123.8

 

 

117.7

 

CORPORATE PAYMENTS - SPEND

 

 

 

 

 

 

 

 

 

Pro forma and macro adjusted

 

$

205.0

 

 

$

169.0

 

 

 

$

30,609

 

$

25,666

 

Impact of acquisitions/dispositions

 

 

 

 

 

(0.3

)

 

 

 

 

 

 

Impact of fuel prices/spread

 

 

0.5

 

 

 

 

 

 

 

 

 

 

Impact of foreign exchange rates

 

 

(8.5

)

 

 

 

 

 

 

 

 

 

As reported

 

$

196.9

 

 

$

168.7

 

 

 

$

30,609

 

$

25,666

 

TOLLS - TAGS

 

 

 

 

 

 

 

 

 

Pro forma and macro adjusted

 

$

88.8

 

 

$

79.0

 

 

 

 

6.2

 

 

6.0

 

Impact of acquisitions/dispositions

 

 

 

 

 

 

 

 

 

 

 

 

Impact of fuel prices/spread

 

 

 

 

 

 

 

 

 

 

 

 

Impact of foreign exchange rates

 

 

(0.2

)

 

 

 

 

 

 

 

 

 

As reported

 

$

88.6

 

 

$

79.0

 

 

 

 

6.2

 

 

6.0

 

LODGING - ROOM NIGHTS

 

 

 

 

 

 

 

 

 

Pro forma and macro adjusted

 

$

126.6

 

 

$

99.1

 

 

 

 

9.9

 

 

8.7

 

Impact of acquisitions/dispositions

 

 

 

 

 

(13.8

)

 

 

 

 

 

(1.0

)

Impact of fuel prices/spread

 

 

 

 

 

 

 

 

 

 

 

 

Impact of foreign exchange rates

 

 

(0.7

)

 

 

 

 

 

 

 

 

 

As reported

 

$

126.0

 

 

$

85.2

 

 

 

 

9.9

 

 

7.6

 

GIFT - TRANSACTIONS

 

 

 

 

 

 

 

 

 

Pro forma and macro adjusted

 

$

53.2

 

 

$

48.6

 

 

 

 

249.4

 

 

256.2

 

Impact of acquisitions/dispositions

 

 

 

 

 

 

 

 

 

 

 

 

Impact of fuel prices/spread

 

 

 

 

 

 

 

 

 

 

 

 

Impact of foreign exchange rates

 

 

(1.2

)

 

 

 

 

 

 

 

 

 

As reported

 

$

52.0

 

 

$

48.6

 

 

 

 

249.4

 

 

256.2

 

OTHER1 - TRANSACTIONS

 

 

 

 

 

 

 

 

 

Pro forma and macro adjusted

 

$

71.3

 

 

$

67.2

 

 

 

 

10.5

 

 

8.9

 

Impact of acquisitions/dispositions

 

 

 

 

 

 

 

 

 

 

 

 

Impact of fuel prices/spread

 

 

 

 

 

 

 

 

 

 

 

 

Impact of foreign exchange rates

 

 

(3.6

)

 

 

 

 

 

 

 

 

 

As reported

 

$

67.7

 

 

$

67.2

 

 

 

 

10.5

 

 

8.9

 

FLEETCOR CONSOLIDATED REVENUES

 

 

 

 

 

 

 

 

 

Pro forma and macro adjusted

 

$

866.1

 

 

$

769.7

 

 

 

Intentionally Left Blank

Impact of acquisitions/dispositions

 

 

 

 

 

(14.3

)

 

 

Impact of fuel prices/spread2

 

 

47.7

 

 

 

 

 

 

Impact of foreign exchange rates2

 

 

(20.8

)

 

 

 

 

 

As reported

 

$

893.0

 

 

$

755.5

 

 

 

* Columns may not calculate due to rounding.

 

 

1 Other includes telematics, maintenance, food, payroll card and transportation related businesses.

2 Revenues reflect an estimated $26 million positive impact from fuel prices and approximately $21 million positive impact from fuel price spreads, partially offset by the negative impact of movements in foreign exchange rates of approximately $21 million.

 

Exhibit 6

RECONCILIATION OF NON-GAAP GUIDANCE MEASURES

(In millions, except per share amounts)

(Unaudited)

 

 

The following table reconciles 2022 financial guidance for net income to adjusted net income and adjusted net income per diluted share, at both ends of the range.

 

 

 

2022 GUIDANCE

 

 

Low*

 

High*

Net income

 

$

939

 

 

$

959

 

Net income per diluted share

 

$

12.24

 

 

$

12.44

 

 

 

 

 

 

Stock based compensation

 

 

131

 

 

 

131

 

Amortization

 

 

228

 

 

 

228

 

Other

 

 

32

 

 

 

32

 

Total pre-tax adjustments

 

 

391

 

 

 

391

 

Income taxes

 

 

(104

)

 

 

(104

)

Discrete taxes

 

 

(9

)

 

 

(9

)

Adjusted net income

 

$

1,216

 

 

$

1,236

 

Adjusted net income per diluted share

 

$

15.85

 

 

$

16.05

 

Diluted shares

 

 

77

 

 

 

77

 

 

 

 

 

 

*Columns may not calculate due to rounding.

 

 

 

 

 

 

 

 

 

 

Investor Relations
Jim Eglseder, 770-417-4697
Jim.Eglseder@fleetcor.com

Source: FLEETCOR Technologies, Inc.


FLEETCOR Technologies, Inc.

Investor Relations
investor@fleetcor.com
Media Relations
press@fleetcor.com