All-time record annual revenues and
earnings
Increased Revolver capacity $600 million and
plans to repurchase $800 million of shares in 2024
FLEETCOR Technologies, Inc. (NYSE: FLT), a leading global
business payments company, today reported financial results for its
fourth quarter and year ended December 31, 2023.
“2023 was a very successful year for the Company. We delivered
full year organic revenue growth of 10% and EBITDA growth of 13%,
which are in line with our long-term growth targets,” said Ron
Clarke, chairman and chief executive officer, FLEETCOR
Technologies, Inc. “Our Corporate Payments segment grew 19% for the
year and now represents over 25% of total revenue. Additionally, we
made meaningful advances in our EV capabilities, and we now have
the best charge point network in the UK and Western Europe, having
adding Tesla in the fourth quarter.”
Financial Results for Fourth Quarter of 2023:
GAAP Results
- Revenues increased 6% to $937.3 million in the fourth quarter
of 2023, compared with $883.6 million in the fourth quarter of
2022.
- Net income increased 14% to $255.9 million in the fourth
quarter of 2023, compared with $225.3 million in the fourth quarter
of 2022.
- Net income per diluted share increased 15% to $3.48 in the
fourth quarter of 2023, compared with $3.03 per diluted share in
the fourth quarter of 2022.
Non-GAAP Results1
- EBITDA1 increased 11% to $508.1 million in the fourth quarter
of 2023, compared to $459.3 million in the fourth quarter of
2022.
- Adjusted net income1 increased 9% to $326.1 million in the
fourth quarter of 2023 compared with $300.2 million in the fourth
quarter of 2022.
- Adjusted net income per diluted share1 increased 10% to $4.44
in the fourth quarter of 2023, compared with $4.04 per diluted
share in the fourth quarter of 2022.
Financial Results for Full Year 2023:
GAAP Results
- Revenues increased 10% to $3,757.7 million in 2023, compared
with $3,427.1 million in 2022.
- Net income increased 3% to $981.9 million in 2023, compared
with $954.3 million in 2022.
- Net income per diluted share increased 6% to $13.20 in 2023,
compared with $12.42 per diluted share in 2022.
Non-GAAP Results1
- EBITDA1 increased 13% to $1,994.2 million in 2023, compared
with $1,769.2 million in 2022.
- Adjusted net income1 increased 2% to $1,258.6 million in 2023,
compared with $1,236.7 million in 2022.
- Adjusted net income per diluted share1 increased 5% to $16.92
in 2023, compared with $16.10 in 2022.
“Our fourth quarter revenue and adjusted earnings per share came
in slightly behind our expectations due to pockets of softness in
some of our U.S. businesses,” said Tom Panther, chief financial
officer, FLEETCOR Technologies, Inc. “We tightly managed operating
expenses, exiting the year with an EBITDA margin of 54.2%, which
was 220 basis points better than the prior year quarter. For the
full year, record revenues and earnings drove nearly $2 billion of
EBITDA and $1.3 billion of adjusted net income. We ended the year
with over $2.2 billion of liquidity and expect to repurchase $800
million of shares in 2024," concluded Panther.
Interest Rate Swaps and Buybacks:
The Company repurchased approximately 0.6 million shares in the
fourth quarter of 2023 and a total of 2.6 million shares for $687
million for the year. Additionally, in December, the Company
entered into $500 million of interest rate swaps to replace the
swap that expired in December. The Company has now fixed
approximately 60% of the floating rate debt in its Credit and
Securitization Facilities.
Increased Revolver Capacity, $800 Million of Share
Repurchases and Upsize of Share Repurchase Authorization:
On January 31, 2024, the Company closed on an amendment to its
pro rata Term Loan A and Revolver A Credit Facility. The
transaction results in a $600 million increase in the Company’s
capacity under its revolver. Interest rate and maturity terms
remain consistent with the existing credit facilities.
In addition, the Company expects to enter into a 10b5-1 plan,
which supports the Company's plan to repurchase up to $800 million
of shares during 2024. On January 25, 2024, the Board authorized an
increase to the aggregate size of the Company's Share Repurchase
Program by $1.0 billion, with approximately $1.6 billion remaining,
and extended the Program through February 4, 2025.
Fiscal Year 2024 Outlook:
“Our 2024 outlook for the Company calls for 20% sales growth,
organic revenue growth of 8% to 10%, and adjusted net income growth
in the mid-teens. Volumes and revenue should build throughout the
year, as we continue to benefit from our growth investments,
seasonality, and an improving economic outlook. Our balance sheet
is in great shape with low leverage and significant liquidity,”
said Tom Panther, chief financial officer, FLEETCOR Technologies,
Inc.
For full year 2024, FLEETCOR Technologies, Inc. financial
guidance1 is as follows:
- Total revenues between $4,040 million and $4,120 million;
- GAAP net income between $1,090 million and $1,130 million;
- GAAP net income per diluted share between $15.40 and
$15.80;
- Adjusted net income between $1,360 million and $1,400 million;
and
- Adjusted net income per diluted share between $19.20 and
$19.60.
FLEETCOR’s guidance assumptions for the full year are as
follows:
- Weighted average U.S. fuel prices equal to $3.65 per
gallon;
- Fuel spreads flat with the 2023 average;
- Foreign exchange rates equal to the historical 30-day
average;
- Interest expense between $340 million and $370 million;
- Bad debt expense slightly below 2023;
- Approximately 71 million fully diluted shares outstanding;
- A tax rate of approximately 25% to 26%; and
- No impact related to material acquisitions not already
closed.
First Quarter of 2024 Outlook:
The Company expects first quarter revenues between $925 million
and $945 million and adjusted net income per diluted share between
$4.02 and $4.12. Recall that the prior year quarter includes the
results from our Russia business sold in August 2023. The first
quarter of 2024 is also impacted by the negative impact from higher
interest rates and a decline in late fees from tightened credit,
creating headwinds to revenue and net income. Furthermore, the
Company has historically experienced seasonality in the first
quarter, causing it to be the lowest in terms of both revenues and
net income for the year; as certain businesses such as vehicle
payments and lodging tend to have lighter first quarters due to
weather and holidays.
Conference Call:
The Company will host a conference call to discuss fourth
quarter and full year 2023 financial results today at 5:30 pm ET.
Hosting the call will be Ron Clarke, chief executive officer, Tom
Panther, chief financial officer and Jim Eglseder, investor
relations. The conference call can be accessed live via webcast
from the Company's investor relations website at
http://investor.fleetcor.com. A replay will be available one hour
after the call and can be accessed by dialing (844) 512-2921 or
(412) 317-6671 for international callers; the conference ID is
10185832. The replay will be available until Wednesday, February
14, 2024. Prior to the conference call, the Company will post
supplemental financial information on their website 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 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 successfully execute our
strategic plan, manage our growth and achieve our performance
targets; 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 Russia and Ukraine, as well as within the Middle East, on
the global economy or our business and operations; our ability to
develop and implement new technology, products, and services; any
alleged infringement of intellectual property rights of others and
our ability to protect our intellectual property; the regulation,
supervision, and examination of our business by foreign and
domestic governmental authorities, as well as litigation and
regulatory actions, including the lawsuit filed by the Federal
Trade Commission (FTC); the impact of regulations relating to
privacy, information security and data protection; use of
third-party vendors and ongoing third-party business relationships;
and failure to comply with anti-money laundering (AML) and
anti-terrorism financing laws; changes in our senior management
team and our ability to attract, motivate and retain qualified
personnel consistent with our strategic plan; tax legislation
initiatives or challenges to our tax positions and/or
interpretations, and state sales tax rules and regulations; the
risks of mergers, acquisitions and divestitures, including, without
limitation, the related time and costs of implementing such
transactions, integrating operations as part of these transactions
and possible failures to achieve expected gains, revenue growth
and/or expense savings from such transactions; 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.
The Company refers to free cash flow, cash net income and
adjusted net income interchangeably, a non-GAAP financial 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. EBITDA margin is defined as EBITDA as a
percentage of revenue.
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.
__________________________________________________________________________________
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.
FLEETCOR Technologies, Inc.
and Subsidiaries
Consolidated Statements of
Income
(In thousands, except per
share amounts)
Three Months Ended December
31,
Year Ended December
31,
2023
2022
% Change
2023
2022
% Change
(Unaudited)
(Unaudited)
(Unaudited)
Revenues, net
$
937,320
$
883,610
6
%
$
3,757,719
$
3,427,129
10
%
Expenses:
Processing
201,459
201,610
—
%
819,908
764,707
7
%
Selling
86,199
78,864
9
%
340,157
309,082
10
%
General and administrative
141,545
143,873
(2
)%
603,424
584,135
3
%
Depreciation and amortization
83,946
89,793
(7
)%
336,604
322,282
4
%
Other operating, net
120
200
NM
753
282
NM
Total operating expense
513,269
514,340
—
%
2,100,846
1,980,488
6
%
Operating income
424,051
369,270
15
%
1,656,873
1,446,641
15
%
Other expenses:
Investment loss (gain)
26
863
NM
(116
)
1,382
NM
Other (income) expense, net
(1,513
)
(3,184
)
NM
(16,623
)
3,003
NM
Interest expense, net
92,041
74,152
24
%
348,607
164,662
112
%
Loss on extinguishment of debt
—
—
NM
—
1,934
NM
Total other expense
90,554
71,831
26
%
331,868
170,981
94
%
Income before income taxes
333,497
297,439
12
%
1,325,005
1,275,660
4
%
Provision for income taxes
77,640
72,120
8
%
343,115
321,333
7
%
Net income
$
255,857
$
225,319
14
%
$
981,890
$
954,327
3
%
Basic earnings per share
$
3.55
$
3.07
16
%
$
13.42
$
12.62
6
%
Diluted earnings per share
$
3.48
$
3.03
15
%
$
13.20
$
12.42
6
%
Weighted average shares outstanding:
Basic shares
72,065
73,484
73,155
75,598
Diluted shares
73,475
74,246
74,387
76,862
FLEETCOR Technologies, Inc.
and Subsidiaries
Consolidated Balance
Sheets
(In thousands, except share
and par value amounts)
December 31,
2023
December 31,
2022
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
1,389,648
$
1,435,163
Restricted cash
1,431,189
854,017
Accounts and other receivables (less
allowance)
2,124,160
2,064,745
Securitized accounts receivable —
restricted for securitization investors
1,307,000
1,287,000
Prepaid expenses and other current
assets
474,144
465,227
Total current assets
6,726,141
6,106,152
Property and equipment, net
343,154
294,692
Goodwill
5,670,924
5,201,435
Other intangibles, net
2,085,663
2,130,974
Investments
69,521
74,281
Other assets
254,315
281,726
Total assets
$
15,149,718
$
14,089,260
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
1,628,419
$
1,568,942
Accrued expenses
315,268
351,936
Customer deposits
2,076,581
1,505,004
Securitization facility
1,307,000
1,287,000
Current portion of notes payable and lines
of credit
819,749
1,027,056
Other current liabilities
320,612
303,517
Total current liabilities
6,467,629
6,043,455
Notes payable and other obligations, less
current portion
4,596,156
4,722,838
Deferred income taxes
496,198
527,465
Other noncurrent liabilities
307,376
254,009
Total noncurrent liabilities
5,399,730
5,504,312
Commitments and contingencies
Stockholders’ equity:
Common stock
129
128
Additional paid-in capital
3,266,185
3,049,570
Retained earnings
8,192,659
7,210,769
Accumulated other comprehensive loss
(1,289,099
)
(1,509,650
)
Treasury stock
(6,887,515
)
(6,209,324
)
Total stockholders’ equity
3,282,359
2,541,493
Total liabilities and stockholders’
equity
$
15,149,718
$
14,089,260
FLEETCOR Technologies, Inc.
and Subsidiaries
Consolidated Statements of
Cash Flows
(In thousands)
Year Ended December
31,
2023
2022
(Unaudited)
Operating activities
Net income
$
981,890
$
954,327
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation
109,983
92,010
Stock-based compensation
116,086
121,416
Provision for credit losses on accounts
and other receivables
125,152
131,096
Amortization of deferred financing costs
and discounts
7,249
7,748
Amortization of intangible assets and
premium on receivables
226,621
230,272
Loss on extinguishment of debt
—
1,934
Deferred income taxes
(46,678
)
(33,174
)
Gain on disposition of business, net
(13,712
)
—
Other non-cash operating expense, net
637
1,664
Changes in operating assets and
liabilities (net of acquisitions/disposition):
Accounts and other receivables
(173,760
)
(598,674
)
Prepaid expenses and other current
assets
69,287
(17,543
)
Derivative assets and liabilities, net
(33,278
)
(11,260
)
Other assets
42,932
(41,068
)
Accounts payable, accrued expenses and
customer deposits
367,835
(83,951
)
Net cash provided by operating
activities
1,780,244
754,797
Investing activities
Acquisitions, net of cash acquired
(428,327
)
(216,917
)
Purchases of property and equipment
(153,822
)
(151,428
)
Proceeds from disposal of a business, net
of cash disposed
197,025
—
Other
4,401
—
Net cash used in investing activities
(380,723
)
(368,345
)
Financing activities
Proceeds from issuance of common stock
113,742
49,404
Repurchase of common stock
(686,859
)
(1,405,200
)
Borrowings on securitization facility,
net
20,000
169,000
Deferred financing costs
(376
)
(10,355
)
Proceeds from notes payable
—
3,000,000
Principal payments on notes payable
(94,000
)
(2,824,000
)
Borrowings from revolver
8,734,960
7,236,000
Payments on revolver
(9,118,960
)
(6,526,000
)
Borrowings on swing line of credit,
net
135,568
194
Other
(2,286
)
(271
)
Net cash used in financing activities
(898,211
)
(311,228
)
Effect of foreign currency exchange rates
on cash
30,347
(36,739
)
Net increase in cash and cash equivalents
and restricted cash
531,657
38,485
Cash and cash equivalents and restricted
cash, beginning of year
2,289,180
2,250,695
Cash and cash equivalents and restricted
cash, end of year
$
2,820,837
$
2,289,180
Supplemental cash flow
information
Cash paid for interest, net
$
448,384
$
229,641
Cash paid for income taxes, net
$
408,340
$
358,231
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 December
31,
Year Ended December
31,
2023
2022
2023
2022
Net income
$
255,857
$
225,319
$
981,890
$
954,327
Stock based compensation
26,169
20,588
116,086
121,416
Amortization1
57,823
66,648
233,870
238,020
Loss on extinguishment of debt
—
—
—
1,934
Integration and deal related costs
5,926
4,824
30,660
18,895
Restructuring, related and other
costs2
808
5,420
3,825
6,690
Legal settlements/litigation
793
1,366
2,750
6,051
Gain on disposition of business
—
—
(13,712
)
—
Total pre-tax adjustments
91,519
98,846
373,479
393,006
Income taxes3
(21,241
)
(23,967
)
(96,781
)
(110,634
)
Adjusted net income
$
326,135
$
300,198
$
1,258,588
$
1,236,699
Adjusted net income per diluted share
$
4.44
$
4.04
$
16.92
$
16.10
Diluted shares
73,475
74,246
74,387
76,862
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 $2.4
million gain and $1.7 million loss for the quarter and year,
respectively.
3 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
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 December
31,
Three Months Ended December
31,
2023
2022
Change
%
Change
2023
2022
Change
%
Change
VEHICLE
PAYMENTS
- Revenues, net
$499.8
$501.1
$(1.3)
—%
$497.8
$476.1
$21.7
5%
- Transactions
193.9
151.5
42.4
28%
193.9
184.8
9.2
5%
- Revenues, net per transaction
$2.58
$3.31
$(0.73)
(22)%
$2.57
$2.58
$(0.01)
—%
- Tag transactions3
20.3
19.0
1.4
7%
20.3
19.0
1.4
7%
- Parking transactions
58.7
—
58.7
100%
58.7
50.6
8.1
16%
- Fleet transactions
108.5
127.5
(19.0)
(15)%
108.5
110.2
(1.7)
(2)%
- Other transactions
6.3
5.0
1.3
26%
6.3
5.0
1.3
26%
CORPORATE
PAYMENTS
- Revenues, net
$251.1
$201.0
$50.1
25%
$248.8
$215.6
$33.1
15%
- Spend volume
$33,583
$29,975
$3,608
12%
$33,583
$32,053
$1,530
5%
- Revenues, net per spend $
0.75%
0.67%
0.08%
11%
0.74%
0.67%
0.07%
10%
LODGING
PAYMENTS
- Revenues, net
$119.9
$119.1
$0.9
1%
$119.6
$120.1
$(0.5)
—%
- Room nights
8.7
9.0
(0.3)
(3)%
8.7
9.0
$(0.4)
(4)%
- Revenues, net per room night
$13.86
$13.28
$0.58
4%
$13.82
$13.29
$0.53
4%
OTHER1
- Revenues, net
$66.5
$62.4
$4.1
7%
$66.2
$62.4
$3.7
6%
- Transactions
444.8
362.7
82.1
23%
444.8
362.7
82.1
23%
- Revenues, net per transaction
$0.15
$0.17
$(0.02)
(13)%
$0.15
$0.17
$(0.02)
(14)%
FLEETCOR
CONSOLIDATED REVENUES
- Revenues, net
$937.3
$883.6
$53.7
6%
$932.3
$874.3
$58.1
7%
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 fourth quarter of 2023 is 6.8 million.
* Columns may not calculate due to
rounding.
Exhibit 3
Revenues by Geography and
Segment
(In millions)
(Unaudited)
Revenue by
Geography*
Three Months Ended December
31,
Year Ended December
31,
2023
%
2022
%
2023
%
2022
%
US
$
525
56
%
$
536
61
%
$
2,135
57
%
$
2,094
61
%
Brazil
143
15
%
119
13
%
525
14
%
442
13
%
UK
108
12
%
85
10
%
441
12
%
363
11
%
Other
161
17
%
143
16
%
656
17
%
528
15
%
Consolidated Revenues, net
$
937
100
%
$
884
100
%
$
3,758
100
%
$
3,427
100
%
*Columns may not calculate due to
rounding.
Revenue by Segment*
Three Months Ended December
31,
Year Ended December
31,
2023
%
2022
%
2023
%
2022
%
Vehicle Payments
$
500
53
%
$
501
57
%
$
2,006
53
%
$
1,950
57
%
Corporate Payments
251
27
%
201
23
%
981
26
%
770
23
%
Lodging Payments
120
13
%
119
13
%
520
14
%
457
13
%
Other
67
7
%
62
7
%
251
7
%
251
7
%
Consolidated Revenues, net
$
937
100
%
$
884
100
%
$
3,758
100
%
$
3,427
100
%
*Columns may not calculate due to
rounding. In the fourth quarter of 2023, in order to align with
recent changes in the organizational structure and management
reporting, the Company has recast its segments into Vehicle
Payments, Corporate Payments, Lodging Payments and Other. The
presentation of segment information has been recast for the prior
period to align with segment presentation for the year ended
December 31, 2023.
Exhibit 4
Segment Results
(In thousands)
Three Months Ended December
31,*
Year Ended December
31,*
20231
2022
% Change
20231
2022
% Change
Revenues, net:
Vehicle Payments
$
499,758
$
501,082
—
%
$
2,005,510
$
1,950,038
3
%
Corporate Payments
251,101
201,016
25
%
981,127
769,571
27
%
Lodging Payments
119,929
119,074
1
%
520,216
456,511
14
%
Other2
66,532
62,438
7
%
250,866
251,009
—
%
$
937,320
$
883,610
6
%
$
3,757,719
$
3,427,129
10
%
Operating income:
Vehicle Payments
$
242,505
$
226,337
7
%
$
943,399
$
884,493
7
%
Corporate Payments
101,092
67,159
51
%
382,085
273,562
40
%
Lodging Payments
57,438
56,836
1
%
254,270
218,637
16
%
Other2
23,016
18,938
22
%
77,119
69,949
10
%
$
424,051
$
369,270
15
%
$
1,656,873
$
1,446,641
15
%
Depreciation and amortization:
Vehicle Payments
$
49,724
$
51,598
(4
)%
$
201,905
$
198,495
2
%
Corporate Payments
20,323
24,851
(18
)%
78,679
72,586
8
%
Lodging Payments
11,655
11,037
6
%
46,903
42,366
11
%
Other2
2,244
2,307
(3
)%
9,117
8,835
3
%
$
83,946
$
89,793
(7
)%
$
336,604
$
322,282
4
%
Capital expenditures:
Vehicle Payments
$
26,261
$
31,189
(16
)%
$
108,592
$
111,661
(3
)%
Corporate Payments
5,972
7,583
(21
)%
25,387
20,777
22
%
Lodging Payments
3,171
3,502
(9
)%
13,705
10,570
30
%
Other2
1,260
1,523
(17
)%
6,138
8,420
(27
)%
$
36,664
$
43,797
(16
)%
$
153,822
$
151,428
2
%
1 Results from Global Reach Group acquired
in the first quarter of 2023 are reported in our Corporate Payments
segment. Results from Mina Digital Limited and Business Gateway AG
acquired in the first quarter of 2023 are reported in our Vehicle
Payments segment. Results from PayByPhone acquired in the third
quarter of 2023 are reported in our Vehicle Payments segment. The
recent disposition of our Russian business is included in our
Vehicle Payments segment.
2 Other includes Gift and Payroll Card
operating segments.
*Columns may not calculate due to
rounding. In the fourth quarter of 2023, in order to align with
recent changes in the organizational structure and management
reporting, the Company has recast its segments into Vehicle
Payments, Corporate Payments, Lodging Payments and Other. The
presentation of segment information has been recast for the prior
period to align with segment presentation for the year ended
December 31, 2023.
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 December
31,
Three Months Ended December
31,
2023*
2022*
2023*
2022*
VEHICLE PAYMENTS - TRANSACTIONS
Pro forma and macro adjusted
$
497.8
$
476.1
193.9
184.8
Impact of acquisitions/dispositions
—
24.9
—
(33.3
)
Impact of fuel prices/spread
(14.8
)
—
—
—
Impact of foreign exchange rates
16.7
—
—
—
As reported
$
499.8
$
501.1
193.9
151.5
CORPORATE PAYMENTS - SPEND
Pro forma and macro adjusted
$
248.8
$
215.6
$
33,583
$
32,053
Impact of acquisitions/dispositions
—
(14.6
)
—
(2,078
)
Impact of fuel prices/spread
(0.2
)
—
—
—
Impact of foreign exchange rates
2.5
—
—
—
As reported
$
251.1
$
201.0
$
33,583
$
29,975
LODGING PAYMENTS - ROOM NIGHTS
Pro forma and macro adjusted
$
119.6
$
120.1
8.7
9.0
Impact of acquisitions/dispositions
—
(1.0
)
—
(0.1
)
Impact of fuel prices/spread
—
—
—
—
Impact of foreign exchange rates
0.3
—
—
—
As reported
$
119.9
$
119.1
8.7
9.0
OTHER1- TRANSACTIONS
Pro forma and macro adjusted
$
66.2
$
62.4
444.8
362.7
Impact of acquisitions/dispositions
—
—
—
—
Impact of fuel prices/spread
—
—
—
—
Impact of foreign exchange rates
0.4
—
—
—
As reported
$
66.5
$
62.4
444.8
362.7
FLEETCOR CONSOLIDATED REVENUES
Pro forma and macro adjusted
$
932.3
$
874.3
Intentionally Left Blank
Impact of acquisitions/dispositions
—
9.4
Impact of fuel prices/spread2
(15.0
)
—
Impact of foreign exchange rates2
19.9
—
As reported
$
937.3
$
883.6
1 Other includes Gift and Payroll Card
operating segments.
2 Revenues reflect an estimated $9 million
negative impact from fuel prices and approximately $6 million
negative impact from fuel price spreads, as well as the positive
impact of movements in foreign exchange rates of approximately $20
million.
* 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.*
Three Months Ended December
31,
Year Ended December
31,
2023
2022
2023
2022
Net income
$
255.9
$
225.3
$
981.9
$
954.3
Provision for income taxes
77.6
72.1
343.1
321.3
Interest expense, net
92.0
74.2
348.6
164.7
Other (income) expense
(1.5
)
(3.2
)
(16.6
)
3.0
Investment loss (gain)
—
0.9
(0.1
)
1.4
Depreciation and amortization
83.9
89.8
336.6
322.3
Loss on extinguishment of debt
—
—
—
1.9
Other operating, net
0.1
0.2
0.8
0.3
EBITDA
$
508.1
$
459.3
$
1,994.2
$
1,769.2
Revenues, net
$
937.3
$
883.6
$
3,757.7
$
3,427.1
EBITDA margin
54.2
%
52.0
%
53.1
%
51.6
%
* 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
first 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
$
1,090
$
1,130
Net income per diluted share
$
15.40
$
15.80
Stock based compensation
110
110
Amortization
232
232
Other
20
20
Total pre-tax adjustments
362
362
Income taxes
(92
)
(92
)
Adjusted net income
$
1,360
$
1,400
Adjusted net income per diluted share
$
19.20
$
19.60
Diluted shares
71
71
Q1 2024 GUIDANCE
Low*
High*
Net income
$
222
$
232
Net income per diluted share
$
3.05
$
3.16
Stock based compensation
27
27
Amortization
58
58
Other
8
8
Total pre-tax adjustments
93
93
Income taxes
(24
)
(24
)
Adjusted net income
$
291
$
301
Adjusted net income per diluted share
$
4.02
$
4.12
Diluted shares
73
73
* Columns may not calculate due to
rounding.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240207435930/en/
Investor Relations Jim Eglseder, 770-417-4697
Jim.Eglseder@fleetcor.com
FleetCor Technologies (NYSE:FLT)
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