FLEETCOR Reports Third Quarter 2023 Financial Results

Press Releases
 November 08, 2023 4:05 PM

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Press Releases November 08, 2023 4:05 PM

ATLANTA--(BUSINESS WIRE)--Nov. 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.

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.

“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.

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 https://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.

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

 

%

Change

 

 

2023

 

 

 

2022

 

 

Change

 

%

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

%

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)

 

 

 

Revenues, net

 

 

Key Performance Metric

 

 

Three Months Ended September 30,

 

Three Months Ended September 30,

 

 

2023*

 

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

 

 

(34.4

)

 

 

 

 

 

 

 

 

 

Impact of foreign exchange rates

 

 

3.2

 

 

 

 

 

 

 

 

 

 

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

 

 

(0.2

)

 

 

 

 

 

 

 

 

 

Impact of foreign exchange rates

 

 

2.2

 

 

 

 

 

 

 

 

 

 

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

 

 

0.4

 

 

 

 

 

 

 

 

 

 

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

 

 

(1.0

)

 

 

 

 

 

 

 

 

 

Impact of foreign exchange rates

 

 

9.1

 

 

 

 

 

 

 

 

 

 

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

 

 

0.5

 

 

 

 

 

 

 

 

 

 

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

 

 

(35.6

)

 

 

 

 

 

Impact of foreign exchange rates2

 

 

15.4

 

 

 

 

 

 

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.

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.

 

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

Source: FLEETCOR Technologies, Inc.