Corpay Reports Second Quarter 2024 Financial Results
Press Releases
August 07, 2024 4:05 PM
Paymerang acquisition closed on
“Our results were slightly ahead of our expectations. Our most recent business trends, including same store sales, new sales and customer retention, all meaningfully improved in the second quarter, which bodes well for our 2024 exit,” said
Financial Results for Second Quarter of 2024:
GAAP Results
-
Revenues increased 3% to
$975.7 million in the second quarter of 2024, compared with$948.2 million in the second quarter of 2023, which included$32 million of revenue from our soldRussia business. -
Net income attributable to Corpay increased 5% to
$251.6 million in the second quarter of 2024, compared with$239.7 million in the second quarter of 2023. -
Net income per diluted share attributable to Corpay increased 10% to
$3.52 in the second quarter of 2024, compared with$3.20 per diluted share in the second quarter of 2023.
Non-GAAP Results1
-
EBITDA1 increased 4% to
$517.7 million in the second quarter of 2024, compared to$497.1 million in the second quarter of 2023, up 10% ex-Russia . -
Adjusted net income attributable to Corpay1 increased 3% to
$325.0 million in the second quarter of 2024, compared with$314.3 million in the second quarter of 2023. -
Adjusted net income per diluted share attributable to Corpay1 increased 8% to
$4.55 in the second quarter of 2024, compared with$4.19 per diluted share in the second quarter of 2023, up 14% ex-Russia .
“Our Corporate Payments and Vehicle Payments segments delivered solid performance driven by implementations and ramping of new sales. Our
Updated Fiscal Year 2024 Outlook:
“Our outlook for the remainder of the year includes
For fiscal year 2024,
-
Total revenues between
$3,975 million and$4,025 million ; -
Net income between
$1,058 million and$1,088 million ; -
Net income per diluted share between
$14.85 and$15.15 ; -
Adjusted net income between
$1,345 million and$1,375 million ; and -
Adjusted net income per diluted share between
$18.85 and$19.15 .
Corpay’s guidance assumptions are as follows:
For the balance of the year:
-
Weighted average
U.S. fuel prices equal to$3.55 per gallon; - Fuel price spreads flat with the 2023 average; and
-
Foreign exchange rates equal to the
July 2024 monthly average.
For the full year:
-
Interest expense between
$370 million and$390 million ; - Approximately 72 million fully diluted shares outstanding;
- A tax rate of approximately 24% to 25%; and
- No impact related to material acquisitions not already closed.
Third Quarter of 2024 Outlook:
"Third quarter revenues are expected to be between
Conference Call:
The Company will host a conference call to discuss second quarter 2024 financial results today at
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 Corpay’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, manage our growth and achieve our performance targets; the impact of macroeconomic conditions, including any recession that has occurred or may occur in the future, and whether expected trends, including retail fuel prices, fuel price spreads, fuel transaction patterns, electric vehicle, and retail lodging price trends develop as anticipated and we are able to develop successful strategies in light of these trends; our ability to attract new and retain existing partners, fuel merchants, and lodging providers, their promotion and support of our products, and their financial performance; the failure of management assumptions and estimates, as well as differences in, and changes to, economic, market, interest rate, interchange fees, foreign exchange rates, and credit conditions, including changes in borrowers’ credit risks and payment behaviors; the risk of higher borrowing costs and adverse financial market conditions impacting our funding and liquidity, and any reduction in our credit ratings; our ability to successfully manage our credit risks and the sufficiency of our allowance for expected credit losses; our ability to securitize our trade receivables; the occurrence of fraudulent activity, data breaches or failures of our information security controls or cybersecurity-related incidents that may compromise our systems or customers’ information; any disruptions in the operations of our computer systems and data centers; the international operational and political risks and compliance and regulatory risks and costs associated with international operations; the impact of international conflicts, including between
About Non-GAAP Financial Measures:
This press release includes non-GAAP financial measures, which are used by the Company as supplemental measures to evaluate its overall operating performance. The Company’s definitions of the non-GAAP financial measures used herein may differ from similarly titled measures used by others, including within our industry. By providing these non-GAAP financial measures, together with reconciliations to the most directly comparable GAAP financial measures, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing strategic initiatives. See the appendix for additional information regarding these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP measure.
The Company refers to free cash flow, cash net income and adjusted net income attributable to Corpay interchangeably, a non-GAAP financial measure. Adjusted net income attributable to Corpay is calculated as net income attributable to Corpay, adjusted to eliminate (a) non-cash stock based compensation expense related to stock 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 attributable to Corpay and adjusted net income per diluted share attributable to Corpay to eliminate the effect of items that we do not consider indicative of our core operating performance.
Adjusted net income attributable to Corpay and adjusted net income per diluted share attributable to Corpay are supplemental measures of operating performance that do not represent and should not be considered as an alternative to net income, net income per diluted share or cash flow from operations, as determined by
Organic revenue growth is calculated as revenue growth in the current period adjusted for the impact of changes in the macroeconomic environment (to include fuel price, fuel price spreads and changes in foreign exchange rates) over revenue in the comparable prior period adjusted to include or remove the impact of acquisitions and/or divestitures and non-recurring items that have occurred subsequent to that period. We believe that organic revenue growth on a macro-neutral, one-time item, and consistent acquisition/divestiture/non-recurring item basis is useful to investors for understanding the performance of Corpay.
EBITDA is defined as earnings before interest, income taxes, interest expense, net, other expense (income), depreciation and amortization, loss on extinguishment of debt, investment loss/gain and other operating, net. EBITDA margin is defined as EBITDA as a percentage of revenue.
Management uses adjusted net income attributable to Corpay, adjusted net income per diluted share attributable to Corpay, 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 Corpay
Corpay (NYSE: CPAY) is a global S&P 500 corporate payments company that helps businesses and consumers manage and pay expenses in a simple, controlled manner. Corpay’s suite of modern payment solutions help its customers better manage vehicle-related expenses (e.g. fueling and parking), travel expenses (e.g. hotel bookings) and accounts payable (e.g. paying vendors). This results in our customers saving time and ultimately spending less. Corpay – Payments made easy. For more information, please visit www.corpay.com.
_____________________________________________________________________________________________________________________________________________
1 Reconciliations of GAAP results to non-GAAP results are provided in Exhibit 1, 5 and 6 attached. Additional supplemental data is provided in Exhibits 2-4. A reconciliation of GAAP guidance to non-GAAP guidance is provided in Exhibit 7.
|
||||||||||||||||||||||
Unaudited Consolidated Statements of Income |
||||||||||||||||||||||
(In thousands, except per share amounts) |
||||||||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
%
|
|
|
2024 |
|
|
|
2023 |
|
|
%
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenues, net |
|
$ |
975,710 |
|
|
$ |
948,174 |
|
|
3 |
% |
|
$ |
1,910,961 |
|
|
$ |
1,849,507 |
|
|
3 |
% |
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Processing |
|
|
209,199 |
|
|
|
205,265 |
|
|
2 |
% |
|
|
416,610 |
|
|
|
410,232 |
|
|
2 |
% |
Selling |
|
|
95,044 |
|
|
|
86,412 |
|
|
10 |
% |
|
|
189,232 |
|
|
|
168,004 |
|
|
13 |
% |
General and administrative |
|
|
153,777 |
|
|
|
159,356 |
|
|
(4 |
)% |
|
|
305,039 |
|
|
|
314,040 |
|
|
(3 |
)% |
Depreciation and amortization |
|
|
84,342 |
|
|
|
83,676 |
|
|
1 |
% |
|
|
169,102 |
|
|
|
167,908 |
|
|
1 |
% |
Other operating, net |
|
|
9 |
|
|
|
815 |
|
|
NM |
|
|
|
301 |
|
|
|
1,478 |
|
|
NM |
|
Total operating expense |
|
|
542,371 |
|
|
|
535,524 |
|
|
1 |
% |
|
|
1,080,284 |
|
|
|
1,061,662 |
|
|
2 |
% |
Operating income |
|
|
433,339 |
|
|
|
412,650 |
|
|
5 |
% |
|
|
830,677 |
|
|
|
787,845 |
|
|
5 |
% |
Other expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Investment (gain) loss |
|
|
(36 |
) |
|
|
18 |
|
|
NM |
|
|
|
(203 |
) |
|
|
(172 |
) |
|
18 |
% |
Other expense (income), net |
|
|
4,496 |
|
|
|
(2,424 |
) |
|
NM |
|
|
|
7,623 |
|
|
|
(1,678 |
) |
|
NM |
|
Interest expense, net |
|
|
94,677 |
|
|
|
88,486 |
|
|
7 |
% |
|
|
183,765 |
|
|
|
168,281 |
|
|
9 |
% |
Total other expense |
|
|
99,137 |
|
|
|
86,080 |
|
|
15 |
% |
|
|
191,185 |
|
|
|
166,431 |
|
|
15 |
% |
Income before income taxes |
|
|
334,202 |
|
|
|
326,570 |
|
|
2 |
% |
|
|
639,492 |
|
|
|
621,414 |
|
|
3 |
% |
Provision for income taxes |
|
|
82,539 |
|
|
|
86,868 |
|
|
(5 |
)% |
|
|
158,026 |
|
|
|
166,877 |
|
|
(5 |
)% |
Net income |
|
|
251,663 |
|
|
|
239,702 |
|
|
5 |
% |
|
$ |
481,466 |
|
|
$ |
454,537 |
|
|
6 |
% |
Less: Net income attributable to noncontrolling interest |
|
|
38 |
|
|
|
— |
|
|
NM |
|
|
|
72 |
|
|
|
— |
|
|
NM |
|
Net income attributable to Corpay |
|
$ |
251,625 |
|
|
$ |
239,702 |
|
|
5 |
% |
|
$ |
481,394 |
|
|
$ |
454,537 |
|
|
6 |
% |
Basic earnings per share |
|
$ |
3.59 |
|
|
$ |
3.24 |
|
|
11 |
% |
|
$ |
6.79 |
|
|
$ |
6.17 |
|
|
10 |
% |
Diluted earnings per share |
|
$ |
3.52 |
|
|
$ |
3.20 |
|
|
10 |
% |
|
$ |
6.64 |
|
|
$ |
6.08 |
|
|
9 |
% |
Weighted average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Basic shares |
|
|
70,107 |
|
|
|
73,887 |
|
|
|
|
|
70,934 |
|
|
|
73,705 |
|
|
|
||
Diluted shares |
|
|
71,497 |
|
|
|
75,001 |
|
|
|
|
|
72,516 |
|
|
|
74,763 |
|
|
|
|
||||||||
Consolidated Balance Sheets |
||||||||
(In thousands, except share and par value amounts) |
||||||||
|
|
|
|
|
||||
|
|
(Unaudited) |
|
|
||||
Assets |
|
|
|
|
||||
Current assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
1,357,567 |
|
|
$ |
1,389,648 |
|
Restricted cash |
|
|
2,189,729 |
|
|
|
1,751,887 |
|
Accounts and other receivables (less allowance) |
|
|
2,412,011 |
|
|
|
2,161,586 |
|
Securitized accounts receivable — restricted for securitization investors |
|
|
1,409,000 |
|
|
|
1,307,000 |
|
Assets held for sale |
|
|
78,592 |
|
|
|
— |
|
Prepaid expenses and other current assets |
|
|
528,798 |
|
|
|
474,144 |
|
Total current assets |
|
|
7,975,697 |
|
|
|
7,084,265 |
|
Property and equipment, net |
|
|
357,759 |
|
|
|
343,154 |
|
|
|
|
5,545,966 |
|
|
|
5,644,958 |
|
Other intangibles, net |
|
|
1,956,855 |
|
|
|
2,085,663 |
|
Investments |
|
|
64,039 |
|
|
|
69,521 |
|
Other assets |
|
|
296,219 |
|
|
|
248,691 |
|
Total assets |
|
$ |
16,196,535 |
|
|
$ |
15,476,252 |
|
Liabilities and Equity |
|
|
|
|
||||
Current liabilities: |
|
|
|
|
||||
Accounts payable |
|
$ |
1,902,909 |
|
|
$ |
1,624,995 |
|
Accrued expenses |
|
|
367,753 |
|
|
|
356,118 |
|
Customer deposits |
|
|
2,763,554 |
|
|
|
2,397,279 |
|
Securitization facility |
|
|
1,409,000 |
|
|
|
1,307,000 |
|
Current portion of notes payable and lines of credit |
|
|
1,106,744 |
|
|
|
819,749 |
|
Liabilities held for sale |
|
|
9,504 |
|
|
|
— |
|
Other current liabilities |
|
|
283,083 |
|
|
|
320,612 |
|
Total current liabilities |
|
|
7,842,547 |
|
|
|
6,825,753 |
|
Notes payable and other obligations, less current portion |
|
|
4,817,634 |
|
|
|
4,596,156 |
|
Deferred income taxes |
|
|
445,207 |
|
|
|
470,232 |
|
Other noncurrent liabilities |
|
|
315,554 |
|
|
|
301,752 |
|
Total noncurrent liabilities |
|
|
5,578,395 |
|
|
|
5,368,140 |
|
Commitments and contingencies |
|
|
|
|
||||
Stockholders’ equity: |
|
|
|
|
||||
Common stock |
|
|
130 |
|
|
|
129 |
|
Additional paid-in capital |
|
|
3,418,512 |
|
|
|
3,266,185 |
|
Retained earnings |
|
|
8,674,053 |
|
|
|
8,192,659 |
|
Accumulated other comprehensive loss |
|
|
(1,498,985 |
) |
|
|
(1,289,099 |
) |
|
|
|
(7,843,005 |
) |
|
|
(6,887,515 |
) |
Total Corpay stockholders’ equity |
|
|
2,750,705 |
|
|
|
3,282,359 |
|
Noncontrolling interest |
|
|
24,888 |
|
|
|
— |
|
Total equity |
|
|
2,775,593 |
|
|
|
3,282,359 |
|
Total liabilities and equity |
|
$ |
16,196,535 |
|
|
$ |
15,476,252 |
|
|
||||||||
Unaudited Consolidated Statements of Cash Flows |
||||||||
(In thousands) |
||||||||
|
|
Six Months Ended |
||||||
|
|
|
2024 |
|
|
|
2023 |
|
Operating activities |
|
|
|
|
||||
Net income |
|
$ |
481,466 |
|
|
$ |
454,537 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation |
|
|
58,443 |
|
|
|
53,739 |
|
Stock-based compensation |
|
|
52,087 |
|
|
|
60,844 |
|
Provision for credit losses on accounts and other receivables |
|
|
53,485 |
|
|
|
74,418 |
|
Amortization of deferred financing costs and discounts |
|
|
4,080 |
|
|
|
3,574 |
|
Amortization of intangible assets and premium on receivables |
|
|
110,659 |
|
|
|
114,169 |
|
Deferred income taxes |
|
|
(9,675 |
) |
|
|
(11,799 |
) |
Investment gain |
|
|
(203 |
) |
|
|
(172 |
) |
Other non-cash operating expense, net |
|
|
301 |
|
|
|
1,478 |
|
Changes in operating assets and liabilities (net of acquisitions/disposition) |
|
|
140,462 |
|
|
|
348,172 |
|
Net cash provided by operating activities |
|
|
891,105 |
|
|
|
1,098,960 |
|
Investing activities |
|
|
|
|
||||
Acquisitions, net of cash acquired |
|
|
(59,871 |
) |
|
|
(126,694 |
) |
Purchases of property and equipment |
|
|
(85,289 |
) |
|
|
(78,922 |
) |
Other |
|
|
(1,453 |
) |
|
|
4,401 |
|
Net cash used in investing activities |
|
|
(146,613 |
) |
|
|
(201,215 |
) |
Financing activities |
|
|
|
|
||||
Proceeds from issuance of common stock |
|
|
100,241 |
|
|
|
66,148 |
|
Repurchase of common stock |
|
|
(947,074 |
) |
|
|
(11,973 |
) |
Borrowings on securitization facility, net |
|
|
102,000 |
|
|
|
(39,000 |
) |
Deferred financing costs |
|
|
(3,176 |
) |
|
|
— |
|
Proceeds from notes payable |
|
|
325,000 |
|
|
|
— |
|
Principal payments on notes payable |
|
|
(51,063 |
) |
|
|
(47,000 |
) |
Borrowings from revolver |
|
|
4,153,000 |
|
|
|
4,351,000 |
|
Payments on revolver |
|
|
(3,811,000 |
) |
|
|
(4,817,000 |
) |
(Payments) borrowings on swing line of credit, net |
|
|
(109,247 |
) |
|
|
255,750 |
|
Other |
|
|
2,081 |
|
|
|
264 |
|
Net cash used in financing activities |
|
|
(239,238 |
) |
|
|
(241,811 |
) |
Effect of foreign currency exchange rates on cash |
|
|
(99,493 |
) |
|
|
38,401 |
|
Net increase in cash and cash equivalents and restricted cash |
|
|
405,761 |
|
|
|
694,335 |
|
Cash and cash equivalents and restricted cash, beginning of year |
|
|
3,141,535 |
|
|
|
2,289,180 |
|
Cash and cash equivalents and restricted cash, end of year |
|
$ |
3,547,296 |
|
|
$ |
2,983,515 |
|
Supplemental cash flow information |
|
|
|
|
||||
Cash paid for interest, net |
|
$ |
237,912 |
|
|
$ |
215,850 |
|
Cash paid for income taxes, net |
|
$ |
185,333 |
|
|
$ |
238,769 |
|
Exhibit 1 |
|||||||||||||||||||
RECONCILIATION OF NON-GAAP MEASURES |
|||||||||||||||||||
(In thousands, except shares and per share amounts) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
The following table reconciles net income attributable to Corpay to adjusted net income attributable to Corpay and adjusted net income per diluted share attributable to Corpay:* | |||||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|||
Net income attributable to Corpay |
|
$ |
251,625 |
|
|
$ |
239,702 |
|
|
$ |
481,394 |
|
|
$ |
454,537 |
|
|||
|
|
|
|
|
|
|
|
|
|||||||||||
Stock based compensation |
|
|
27,108 |
|
|
|
34,748 |
|
|
|
52,087 |
|
|
|
60,844 |
|
|||
Amortization1 |
|
|
56,881 |
|
|
|
57,704 |
|
|
|
114,739 |
|
|
|
117,743 |
|
|||
Integration and deal related costs |
|
|
7,128 |
|
|
|
9,580 |
|
|
|
11,363 |
|
|
|
15,465 |
|
|||
Restructuring and related costs2 |
|
|
1,872 |
|
|
|
960 |
|
|
|
6,254 |
|
|
|
1,579 |
|
|||
Other2,3 |
|
|
4,433 |
|
|
|
(1,415 |
) |
|
|
8,045 |
|
|
|
(392 |
) |
|||
Total pre-tax adjustments |
|
|
97,422 |
|
|
|
101,577 |
|
|
|
192,488 |
|
|
|
195,239 |
|
|||
Income taxes4 |
|
|
(24,064 |
) |
|
|
(27,020 |
) |
|
|
(47,579 |
) |
|
|
(52,436 |
) |
|||
Adjusted net income |
|
$ |
324,983 |
|
|
$ |
314,259 |
|
|
$ |
626,303 |
|
|
$ |
597,340 |
|
|||
Adjusted net income per diluted share attributable to Corpay |
|
$ |
4.55 |
|
|
$ |
4.19 |
|
|
$ |
8.64 |
|
|
$ |
7.99 |
|
|||
Diluted shares |
|
|
71,497 |
|
|
|
75,001 |
|
|
|
72,516 |
|
|
|
74,763 |
|
1 Includes consolidated amortization related to intangible assets, premium on receivables, deferred financing costs and debt discounts. |
2 Certain prior period amounts have been reclassified to conform with current period presentation. |
3 Includes losses and gains on foreign currency transactions, legal expenses, and removes the amortization attributable to the Company's noncontrolling interest. |
4 Represents provision for income taxes of pre-tax adjustments. |
* 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 |
|
Three Months Ended |
||||||||||||||||||||||||||
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
% Change |
|
|
2024 |
|
|
|
2023 |
|
|
Change |
|
% Change |
||||||
VEHICLE PAYMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
- Revenues, net |
$ |
510.3 |
|
|
$ |
509.6 |
|
|
$ |
0.7 |
|
|
— |
% |
|
$ |
518.3 |
|
|
$ |
492.0 |
|
|
$ |
26.3 |
|
|
5 |
% |
- Transactions |
|
207.3 |
|
|
|
153.9 |
|
|
|
53.4 |
|
|
35 |
% |
|
|
207.3 |
|
|
|
193.7 |
|
|
|
13.6 |
|
|
7 |
% |
- Revenues, net per transaction |
$ |
2.46 |
|
|
$ |
3.31 |
|
|
$ |
(0.85 |
) |
|
(26 |
)% |
|
$ |
2.50 |
|
|
$ |
2.54 |
|
|
$ |
(0.04 |
) |
|
(2 |
)% |
- Tag transactions3 |
|
21.4 |
|
|
|
19.7 |
|
|
|
1.7 |
|
|
9 |
% |
|
|
21.4 |
|
|
|
19.7 |
|
|
|
1.7 |
|
|
9 |
% |
- Parking transactions |
|
63.0 |
|
|
|
— |
|
|
|
63.0 |
|
|
NM |
|
|
|
63.0 |
|
|
|
56.8 |
|
|
|
6.2 |
|
|
11 |
% |
- Fleet transactions |
|
112.9 |
|
|
|
128.4 |
|
|
|
(15.6 |
) |
|
(12 |
)% |
|
|
112.9 |
|
|
|
111.4 |
|
|
|
1.4 |
|
|
1 |
% |
- Other transactions |
|
10.0 |
|
|
|
5.7 |
|
|
|
4.3 |
|
|
75 |
% |
|
|
10.0 |
|
|
|
5.7 |
|
|
|
4.3 |
|
|
75 |
% |
CORPORATE PAYMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
- Revenues, net |
$ |
288.5 |
|
|
$ |
246.0 |
|
|
$ |
42.5 |
|
|
17 |
% |
|
$ |
289.6 |
|
|
$ |
246.0 |
|
|
$ |
43.6 |
|
|
18 |
% |
- Spend volume |
$ |
42,879 |
|
|
$ |
36,033 |
|
|
$ |
6,845 |
|
|
19 |
% |
|
$ |
42,879 |
|
|
$ |
36,033 |
|
|
$ |
6,845 |
|
|
19 |
% |
- Revenues, net per spend $ |
|
0.67 |
% |
|
|
0.68 |
% |
|
|
(0.01 |
)% |
|
(1 |
)% |
|
|
0.68 |
% |
|
|
0.68 |
% |
|
|
— |
% |
|
— |
% |
LODGING PAYMENTS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
- Revenues, net |
$ |
122.4 |
|
|
$ |
136.6 |
|
|
$ |
(14.2 |
) |
|
(10 |
)% |
|
$ |
122.5 |
|
|
$ |
136.6 |
|
|
$ |
(14.1 |
) |
|
(10 |
)% |
- Room nights |
|
8.7 |
|
|
|
9.3 |
|
|
|
(0.6 |
) |
|
(6 |
)% |
|
|
8.7 |
|
|
|
9.3 |
|
|
|
(0.6 |
) |
|
(6 |
)% |
- Revenues, net per room night |
$ |
13.99 |
|
|
$ |
14.65 |
|
|
$ |
(0.66 |
) |
|
(5 |
)% |
|
$ |
14.00 |
|
|
$ |
14.65 |
|
|
$ |
(0.65 |
) |
|
(4 |
)% |
OTHER1 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
- Revenues, net |
$ |
54.6 |
|
|
$ |
56.0 |
|
|
$ |
(1.4 |
) |
|
(2 |
)% |
|
$ |
54.7 |
|
|
$ |
56.0 |
|
|
$ |
(1.3 |
) |
|
(2 |
)% |
- Transactions |
|
349.3 |
|
|
|
296.5 |
|
|
|
52.8 |
|
|
18 |
% |
|
|
349.3 |
|
|
|
296.5 |
|
|
|
52.8 |
|
|
18 |
% |
- Revenues, net per transaction |
$ |
0.16 |
|
|
$ |
0.19 |
|
|
$ |
(0.03 |
) |
|
(17 |
)% |
|
$ |
0.16 |
|
|
$ |
0.19 |
|
|
$ |
(0.03 |
) |
|
(17 |
)% |
CORPAY CONSOLIDATED REVENUES |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
- Revenues, net |
$ |
975.7 |
|
|
$ |
948.2 |
|
|
$ |
27.5 |
|
|
3 |
% |
|
$ |
985.1 |
|
|
$ |
930.6 |
|
|
$ |
54.5 |
|
|
6 |
% |
1 Other includes Gift and Payroll Card operating segments. |
2 See Exhibit 5 for a reconciliation of Pro forma and Macro Adjusted revenue by segment and metrics, non-GAAP measures, to the GAAP equivalent. |
3 Represents total tag subscription transactions in the quarter. Average monthly tag subscriptions for the second quarter of 2024 is 7.1 million. |
* Columns may not calculate due to rounding. |
NM = Not Meaningful |
Exhibit 3 |
|||||||||||||||||||||||
Revenues by Geography and Segment |
|||||||||||||||||||||||
(In millions) |
|||||||||||||||||||||||
(Unaudited) |
|||||||||||||||||||||||
Revenues, net by Geography* |
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||||
|
|
2024 |
|
% |
|
|
2023 |
|
% |
|
|
2024 |
|
% |
|
|
2023 |
|
% |
||||
US |
$ |
529 |
|
54 |
% |
|
$ |
535 |
|
56 |
% |
|
$ |
1,033 |
|
54 |
% |
|
$ |
1,048 |
|
57 |
% |
|
|
149 |
|
15 |
% |
|
|
126 |
|
13 |
% |
|
|
298 |
|
16 |
% |
|
|
248 |
|
13 |
% |
|
|
124 |
|
13 |
% |
|
|
111 |
|
12 |
% |
|
|
246 |
|
13 |
% |
|
|
219 |
|
12 |
% |
Other |
|
174 |
|
18 |
% |
|
|
176 |
|
19 |
% |
|
|
334 |
|
17 |
% |
|
|
334 |
|
18 |
% |
Consolidated Revenues, net |
$ |
976 |
|
100 |
% |
|
$ |
948 |
|
100 |
% |
|
$ |
1,911 |
|
100 |
% |
|
$ |
1,850 |
|
100 |
% |
*Columns may not calculate due to rounding.
Revenues, net by Segment* |
Three Months Ended |
|
Six Months Ended |
||||||||||||||||||||
|
|
2024 |
|
% |
|
|
2023 |
|
% |
|
|
2024 |
|
% |
|
|
2023 |
|
% |
||||
Vehicle Payments |
$ |
510 |
|
52 |
% |
|
$ |
510 |
|
54 |
% |
|
$ |
1,004 |
|
53 |
% |
|
$ |
1,005 |
|
54 |
% |
Corporate Payments |
|
288 |
|
30 |
% |
|
|
246 |
|
26 |
% |
|
|
554 |
|
29 |
% |
|
|
472 |
|
26 |
% |
Lodging Payments |
|
122 |
|
13 |
% |
|
|
137 |
|
14 |
% |
|
|
234 |
|
12 |
% |
|
|
259 |
|
14 |
% |
Other |
|
55 |
|
6 |
% |
|
|
56 |
|
6 |
% |
|
|
119 |
|
6 |
% |
|
|
113 |
|
6 |
% |
Consolidated Revenues, net |
$ |
976 |
|
100 |
% |
|
$ |
948 |
|
100 |
% |
|
$ |
1,911 |
|
100 |
% |
|
$ |
1,850 |
|
100 |
% |
*Columns may not calculate due to rounding.
Exhibit 4 | ||||||||||||||||||
Segment Results* |
||||||||||||||||||
(In thousands) |
||||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||||
|
|
|
20241 |
|
|
20232 |
|
%
|
|
|
20241 |
|
|
2023 |
|
%
|
||
Revenues, net: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Vehicle Payments |
|
$ |
510,278 |
|
$ |
509,630 |
|
— |
% |
|
$ |
1,004,339 |
|
$ |
1,005,120 |
|
— |
% |
Corporate Payments |
|
|
288,479 |
|
|
246,012 |
|
17 |
% |
|
|
553,875 |
|
|
472,184 |
|
17 |
% |
Lodging Payments |
|
|
122,377 |
|
|
136,564 |
|
(10 |
)% |
|
|
233,672 |
|
|
258,898 |
|
(10 |
)% |
Other3 |
|
|
54,576 |
|
|
55,968 |
|
(2 |
)% |
|
|
119,075 |
|
|
113,305 |
|
5 |
% |
|
|
$ |
975,710 |
|
$ |
948,174 |
|
3 |
% |
|
$ |
1,910,961 |
|
$ |
1,849,507 |
|
3 |
% |
Operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Vehicle Payments |
|
$ |
242,025 |
|
$ |
232,506 |
|
4 |
% |
|
$ |
467,720 |
|
$ |
455,986 |
|
3 |
% |
Corporate Payments |
|
|
120,556 |
|
|
95,708 |
|
26 |
% |
|
|
225,267 |
|
|
176,090 |
|
28 |
% |
Lodging Payments |
|
|
56,391 |
|
|
68,246 |
|
(17 |
)% |
|
|
103,668 |
|
|
122,809 |
|
(16 |
)% |
Other3 |
|
|
14,367 |
|
|
16,190 |
|
(11 |
)% |
|
|
34,022 |
|
|
32,960 |
|
3 |
% |
|
|
$ |
433,339 |
|
$ |
412,650 |
|
5 |
% |
|
$ |
830,677 |
|
$ |
787,845 |
|
5 |
% |
Depreciation and amortization: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Vehicle Payments |
|
$ |
49,765 |
|
$ |
51,926 |
|
(4 |
)% |
|
$ |
100,087 |
|
$ |
102,276 |
|
(2 |
)% |
Corporate Payments |
|
|
20,698 |
|
|
17,779 |
|
16 |
% |
|
|
41,501 |
|
|
37,939 |
|
9 |
% |
Lodging Payments |
|
|
11,965 |
|
|
11,661 |
|
3 |
% |
|
|
23,595 |
|
|
23,059 |
|
2 |
% |
Other3 |
|
|
1,914 |
|
|
2,310 |
|
(17 |
)% |
|
|
3,919 |
|
|
4,634 |
|
(15 |
)% |
|
|
$ |
84,342 |
|
$ |
83,676 |
|
1 |
% |
|
$ |
169,102 |
|
$ |
167,908 |
|
1 |
% |
Capital expenditures: |
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Vehicle Payments |
|
$ |
30,254 |
|
$ |
29,014 |
|
4 |
% |
|
$ |
58,448 |
|
$ |
53,986 |
|
8 |
% |
Corporate Payments |
|
|
7,581 |
|
|
7,832 |
|
(3 |
)% |
|
|
14,857 |
|
|
14,676 |
|
1 |
% |
Lodging Payments |
|
|
4,589 |
|
|
3,496 |
|
31 |
% |
|
|
9,415 |
|
|
6,873 |
|
37 |
% |
Other3 |
|
|
1,673 |
|
|
1,842 |
|
(9 |
)% |
|
|
2,569 |
|
|
3,388 |
|
(24 |
)% |
|
|
$ |
44,097 |
|
$ |
42,184 |
|
5 |
% |
|
$ |
85,289 |
|
$ |
78,923 |
|
8 |
% |
1 Results from Zapay acquired in the first quarter of 2024 are reported in the Vehicle Payments segment from the date of acquisition. |
2 The results of our Russian business disposed of in |
3 Other includes Gift and Payroll Card operating segments. |
*Columns may not calculate due to rounding. |
Exhibit 5 | |||||||||||||||
Reconciliation of Non-GAAP Revenue and Key Performance Metric |
|||||||||||||||
by Segment to GAAP |
|||||||||||||||
(In millions) |
|||||||||||||||
(Unaudited) |
|||||||||||||||
|
|
Revenues, net |
|
|
Key Performance Metric |
||||||||||
|
|
Three Months Ended |
|
|
Three Months Ended |
||||||||||
|
|
2024* |
|
2023* |
|
|
2024* |
|
2023* |
||||||
VEHICLE PAYMENTS - TRANSACTIONS |
|
|
|
|
|
|
|
|
|
||||||
Pro forma and macro adjusted |
|
$ |
518.3 |
|
|
$ |
492.0 |
|
|
|
207.3 |
|
|
193.7 |
|
Impact of acquisitions/dispositions |
|
|
— |
|
|
|
17.6 |
|
|
|
— |
|
|
(39.8 |
) |
Impact of fuel prices/spread |
|
|
(0.1 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
Impact of foreign exchange rates |
|
|
(7.9 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
As reported |
|
$ |
510.3 |
|
|
$ |
509.6 |
|
|
|
207.3 |
|
|
153.9 |
|
CORPORATE PAYMENTS - SPEND |
|
|
|
|
|
|
|
|
|
||||||
Pro forma and macro adjusted |
|
$ |
289.6 |
|
|
$ |
246.0 |
|
|
$ |
42,879 |
|
$ |
36,033 |
|
Impact of acquisitions/dispositions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Impact of fuel prices/spread |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Impact of foreign exchange rates |
|
|
(1.2 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
As reported |
|
$ |
288.5 |
|
|
$ |
246.0 |
|
|
$ |
42,879 |
|
$ |
36,033 |
|
LODGING PAYMENTS - ROOM NIGHTS |
|
|
|
|
|
|
|
|
|
||||||
Pro forma and macro adjusted |
|
$ |
122.5 |
|
|
$ |
136.6 |
|
|
|
8.7 |
|
|
9.3 |
|
Impact of acquisitions/dispositions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Impact of fuel prices/spread |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Impact of foreign exchange rates |
|
|
(0.1 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
As reported |
|
$ |
122.4 |
|
|
$ |
136.6 |
|
|
|
8.7 |
|
|
9.3 |
|
OTHER1- TRANSACTIONS |
|
|
|
|
|
|
|
|
|
||||||
Pro forma and macro adjusted |
|
$ |
54.7 |
|
|
$ |
56.0 |
|
|
|
349.3 |
|
|
296.5 |
|
Impact of acquisitions/dispositions |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Impact of fuel prices/spread |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
— |
|
Impact of foreign exchange rates |
|
|
(0.1 |
) |
|
|
— |
|
|
|
— |
|
|
— |
|
As reported |
|
$ |
54.6 |
|
|
$ |
56.0 |
|
|
|
349.3 |
|
|
296.5 |
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||
CORPAY CONSOLIDATED REVENUES |
|
|
|
|
|
|
|
|
|
||||||
Pro forma and macro adjusted |
|
$ |
985.1 |
|
|
$ |
930.6 |
|
|
Intentionally Left Blank |
|||||
Impact of acquisitions/dispositions |
|
|
— |
|
|
|
17.6 |
|
|
||||||
Impact of fuel prices/spread |
|
|
(0.1 |
) |
|
|
— |
|
|
||||||
Impact of foreign exchange rates2 |
|
|
(9.3 |
) |
|
|
— |
|
|
||||||
As reported |
|
$ |
975.7 |
|
|
$ |
948.2 |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||
1 Other includes Gift and Payroll Card operating segments. |
|
|
|||||||||||||
2 Revenues reflect an estimated |
|||||||||||||||
* Columns may not calculate due to rounding. |
|
|
Exhibit 6 |
|||||||||||||||||||
RECONCILIATION OF NON-GAAP EBITDA MEASURES |
|||||||||||||||||||
(In millions) |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
The following table reconciles EBITDA and EBITDA margin to net income from operations.* | |||||||||||||||||||
|
|
Three Months Ended |
|
Six Months Ended |
|||||||||||||||
|
|
|
2024 |
|
|
|
2023 |
|
|
|
2024 |
|
|
|
2023 |
|
|||
Net income from operations |
|
$ |
251.7 |
|
|
$ |
239.7 |
|
|
$ |
481.5 |
|
|
$ |
454.5 |
|
|||
Provision for income taxes |
|
|
82.5 |
|
|
|
86.9 |
|
|
|
158.0 |
|
|
|
166.9 |
|
|||
Interest expense, net |
|
|
94.7 |
|
|
|
88.5 |
|
|
|
183.8 |
|
|
|
168.3 |
|
|||
Other expense (income), net |
|
|
4.5 |
|
|
|
(2.4 |
) |
|
|
7.6 |
|
|
|
(1.7 |
) |
|||
Investment gain |
|
|
— |
|
|
|
— |
|
|
|
(0.2 |
) |
|
|
(0.2 |
) |
|||
Depreciation and amortization |
|
|
84.3 |
|
|
|
83.7 |
|
|
|
169.1 |
|
|
|
167.9 |
|
|||
Other operating, net |
|
|
— |
|
|
|
0.8 |
|
|
|
0.3 |
|
|
|
1.5 |
|
|||
EBITDA |
|
$ |
517.7 |
|
|
$ |
497.1 |
|
|
$ |
1,000.1 |
|
|
$ |
957.2 |
|
|||
|
|
|
|
|
|
|
|
|
|||||||||||
Revenues, net |
|
$ |
975.7 |
|
|
$ |
948.2 |
|
|
$ |
1,911.0 |
|
|
$ |
1,849.5 |
|
|||
EBITDA margin |
|
|
53.1 |
% |
|
|
52.4 |
% |
|
|
52.3 |
% |
|
|
51.8 |
% |
|||
|
|
|
|
|
|
|
|
|
|||||||||||
* 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 third quarter 2024 and full year 2024 financial guidance for net income to adjusted net income and adjusted net income per diluted share, at both ends of the range: | ||||||||
|
|
2024 GUIDANCE |
||||||
|
|
Low* |
|
High* |
||||
Net income |
|
$ |
1,058 |
|
|
$ |
1,088 |
|
Net income per diluted share |
|
$ |
14.85 |
|
|
$ |
15.15 |
|
|
|
|
|
|
||||
Stock based compensation |
|
|
107 |
|
|
|
107 |
|
Amortization |
|
|
233 |
|
|
|
233 |
|
Other |
|
|
38 |
|
|
|
38 |
|
Total pre-tax adjustments |
|
|
378 |
|
|
|
378 |
|
|
|
|
|
|
||||
Income taxes |
|
|
(91 |
) |
|
|
(91 |
) |
Adjusted net income |
|
$ |
1,345 |
|
|
$ |
1,375 |
|
Adjusted net income per diluted share |
|
$ |
18.85 |
|
|
$ |
19.15 |
|
|
|
|
|
|
||||
Diluted shares |
|
|
72 |
|
|
|
72 |
|
|
|
|
|
|
||||
|
|
|
|
|
||||
|
|
Q3 2024 GUIDANCE |
||||||
|
|
Low* |
|
High* |
||||
Net income |
|
$ |
273 |
|
|
$ |
283 |
|
Net income per diluted share |
|
$ |
3.88 |
|
|
$ |
3.98 |
|
|
|
|
|
|
||||
Stock based compensation |
|
|
28 |
|
|
|
28 |
|
Amortization |
|
|
59 |
|
|
|
59 |
|
Other |
|
|
7 |
|
|
|
7 |
|
Total pre-tax adjustments |
|
|
94 |
|
|
|
94 |
|
|
|
|
|
|
||||
Income taxes |
|
|
(22 |
) |
|
|
(22 |
) |
Adjusted net income |
|
$ |
345 |
|
|
$ |
355 |
|
Adjusted net income per diluted share |
|
$ |
4.90 |
|
|
$ |
5.00 |
|
|
|
|
|
|
||||
Diluted shares |
|
|
71 |
|
|
|
71 |
|
|
|
|
|
|
||||
* Columns may not calculate due to rounding. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20240807038916/en/
Investor Relations
Jim.Eglseder@corpay.com
Source: