FLEETCOR Reports Third Quarter 2019 Financial Results

Source:
FLEETCOR Technologies, Inc.

PEACHTREE CORNERS, Ga.--(BUSINESS WIRE)--Nov. 6, 2019-- FLEETCOR Technologies, Inc. (NYSE: FLT), a leading global business payments company, today reported financial results for its third quarter of 2019.

“The third quarter was another great quarter for the Company. During the quarter, our revenues and profits finished above our expectations, with adjusted net income per diluted share of $3.10, which was $0.05 above the midpoint of our guidance for the quarter. Organic revenue growth was 11% overall, driven by strong double digit growth rates in corporate payments, tolls and lodging, in addition to the fuel category, which finished up 10%,” said Ron Clarke, chairman and chief executive officer, FLEETCOR Technologies, Inc. “In early October we completed a tuck–in acquisition in our lodging business, which will broaden our business into the airline segment and adds international hotel coverage and capabilities. In addition, we have plenty of liquidity to pursue other acquisition opportunities as well as share buy backs.”

Financial Results for Third Quarter of 2019:

GAAP Results

  • Total revenues increased 10% to $681.0 million in the third quarter of 2019, compared to $619.6 million in the third quarter of 2018.
  • Net income increased 43% to $225.8 million in the third quarter of 2019, compared to $157.7 million in the third quarter of 2018. The third quarter of 2018 results included a $23 million true-up charge to income taxes related to the transition tax liability originally recorded at the end of 2017 in connection with US tax reform.
  • Net income per diluted share increased 46% to $2.49 in the third quarter of 2019, compared to $1.71 per diluted share in the third quarter of 2018. The third quarter of 2018 results included a true-up to income taxes related to the transitional tax adjustment for the US tax reform in 2017 of approximately $0.26.

Non-GAAP Results1

  • Adjusted net income1 increased 14% to $280.6 million in the third quarter of 2019, compared to $246.6 million in the third quarter of 2018.
  • Adjusted net income per diluted share1 increased 16% to $3.10 in the third quarter of 2019, compared to $2.68 per diluted share in the third quarter of 2018.

Fiscal-Year 2019 Outlook:

“The macro-economic environment was mixed in the quarter and overall came in worse than assumptions used in developing our prior guidance. We believe it negatively impacted revenues in the quarter by approximately $2 million to $3 million. Foreign exchange rates came in worse than expected, which were partially offset by more favorable spreads and fuel price in the quarter,” said Eric Dey, chief financial officer, FLEETCOR Technologies, Inc. “We are raising our fiscal year adjusted net income per diluted share guidance by $0.05 to reflect the outperformance versus our expectations for the quarter.”

“For the fourth quarter, we expect that the macro environment will continue to be unfavorable versus assumptions used in our prior guidance and will negatively impact fourth quarter revenue by approximately $10 million. We expect that unfavorable foreign exchange rates will continue in the fourth quarter and will be offset by the Travelliance acquisition,” concluded Mr. Dey.

For fiscal year 2019, FLEETCOR Technologies, Inc.’s updated financial guidance is as follows:

  • Total revenues to be between $2,640 million and $2,660 million;
  • GAAP net income to be between $880 million and $900 million;
  • GAAP net income per diluted share to be between $9.80 and $9.90;
  • Adjusted net income to be between $1,050 million and $1,070 million; and
  • Adjusted net income per diluted share to be between $11.68 and $11.78.

FLEETCOR’s guidance assumptions for the fourth quarter of 2019 are as follows:

  • Weighted fuel prices equal to $2.73 per gallon average in the U.S. for the fourth quarter;
  • Market spreads well below the fourth quarter of 2018;
  • Foreign exchange rates equal to the month of September 2019 average;
  • Interest expense between $150 million and $155 million for the fiscal year;
  • Approximately 90.3 million fully diluted shares outstanding for 2019;
  • An adjusted tax rate of approximately 23% for the full year; and
  • No impact related to acquisitions or material new partnership agreements not already disclosed.

_______________________________________
1 Reconciliations of GAAP results to non-GAAP results are provided in Exhibit 1 attached. Additional supplemental data is provided in Exhibits 2-3 and 5, and segment information is provided in Exhibit 4. A reconciliation of GAAP guidance to non-GAAP guidance is provided in Exhibit 6.

Share Repurchase Program

The Company’s board of directors authorized an increase in the size of the Company’s previously announced share repurchase program by an additional $1.0 billion of common stock and extended the program by three years. With the increase, and giving effect to the Company’s $1.611 billion of previous repurchases, the Company may repurchase up to $1.489 billion of its common stock at any time prior to February 1, 2023.

Conference Call

The Company will host a conference call to discuss third quarter 2019 financial results today at 5:00 pm ET. Hosting the call will be Ron Clarke, chief executive officer, Eric Dey, chief financial officer and Jim Eglseder, SVP investor relations. The conference call can be accessed live over the phone by dialing (855) 327-6838, or for international callers (631) 891-4304. 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 10007998. The replay will be available until Tuesday, November 13, 2019. The call will be webcast live from the Company's investor relations website at http://investor.fleetcor.com. 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, expectations, assumptions 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," "expect," "may," "will," "would," "could" or "should," the negative of these terms or other comparable terminology. Examples of forward-looking statements in this press release include statements relating to macroeconomic conditions, including fuel prices, fuel price spreads and foreign exchange rates, impact of the Tax Act, our expectations regarding future growth, including future revenue and earnings increases; our growth plans and opportunities, including future acquisitions, estimated returns on future acquisitions and future product expansion, and estimated impact of these conditions on our operations and financial results, revenue and earnings guidance and assumptions underlying financial guidance. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statement, such as fuel price and spread volatility; the impact of foreign exchange rates on operations, revenue and income; the effects of general economic and political conditions on fueling patterns and the commercial activity of fleets; changes in credit risk of customers and associated losses; the actions of regulators relating to payment cards or resulting from investigations; failure to maintain or renew key business relationships; failure to maintain competitive product offerings; failure to maintain or renew sources of financing; failure to complete, or delays in completing, anticipated new partnership and customer agreements or acquisitions and to successfully integrate or otherwise achieve anticipated benefits from such partnerships and customer arrangements or acquired businesses; failure to successfully expand business internationally, other risks related to our international operations, including the potential impact to our business as a result of the United Kingdom’s referendum to leave the European Union, risks related to litigation, the impact of new tax regulations and the resolution of tax contingencies resulting in additional tax liabilities; 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, 2018. These forward-looking statements are not a guarantee of performance, and undue reliance should not be placed on such statements. The forward-looking statements included in this press release are made only as of the date hereof, and FLEETCOR does not undertake, and specifically disclaims, any obligation to update any such statements as a result of new information, future events or developments except as specifically stated in this press release or to the extent required by law.

About Non-GAAP Financial Measures

Adjusted net income is calculated as net income, adjusted to eliminate (a) non-cash stock based compensation expense related to share based compensation awards, (b) amortization of deferred financing costs, discounts and intangible assets, amortization of the premium recognized on the purchase of receivables, and our proportionate share of amortization of intangible assets at our equity method investment, and (c) other non-recurring items, such as the impact of the Tax Act, impairment of investment, asset write-offs, restructuring costs, gains and related taxes due to disposition of assets and a business, loss on extinguishment of debt, legal settlements, and the unauthorized access impact. We calculate adjusted net income to eliminate the effect of items that we do not consider indicative of our core operating performance. Adjusted net income is a supplemental measure of operating performance that does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by U.S. generally accepted accounting principles, or U.S. GAAP, and our calculation thereof may not be comparable to that reported by other companies. 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. We also believe one-time non-recurring gains, losses, and impairment charges do not necessarily reflect how our investments and business are performing. Reconciliations of GAAP results to non-GAAP results are provided in the attached exhibit 1. A reconciliation of GAAP to non-GAAP product revenue organic growth calculation is provided in the attached exhibit 5. A reconciliation of GAAP to non-GAAP guidance is provided in the attached exhibit 6.

Management uses adjusted net income:

  • as measurement of operating performance because it assists 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.

We believe adjusted net income and adjusted net income per diluted share are key measures used by the Company and investors as supplemental measures to evaluate the overall operating performance of companies in our industry. By providing these non-GAAP financial measures, together with reconciliations, 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.

About FLEETCOR

FLEETCOR Technologies (NYSE: FLT) is a leading global business payments company that simplifies the way businesses manage and pay their expenses. The FLEETCOR portfolio of brands help companies automate, secure, digitize and control payments to, or on behalf of, their employees and suppliers. FLEETCOR serves businesses, partners and merchants 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,

2019

20181

2019

20181

 
Revenues, net

$

681,048

$

619,586

$

1,949,967

$

1,790,070

 
Expenses:
Processing

 

135,016

 

128,400

 

384,588

 

356,086

Selling

 

51,790

 

44,806

 

152,907

 

135,926

General and administrative

 

98,050

 

98,058

 

297,618

 

284,858

Depreciation and amortization

 

67,347

 

67,267

 

205,700

 

207,379

Other operating, net

 

(296)

 

(35)

 

(1,480)

 

(140)

Operating income

 

329,141

 

281,090

 

910,634

 

805,961

Investment loss

 

-

 

7,147

 

15,660

 

7,147

Other (income) expense, net

 

(120)

 

303

 

628

 

465

Interest expense, net

 

36,504

 

36,072

 

115,088

 

100,287

Total other expense

 

36,384

 

43,522

 

131,376

 

107,899

Income before income taxes

 

292,757

 

237,568

 

779,258

 

698,062

Provision for income taxes

 

66,952

 

79,874

 

119,695

 

188,579

Net income

$

225,805

$

157,694

$

659,563

$

509,483

 
Basic earnings per share

$

2.61

$

1.78

$

7.64

$

5.72

Diluted earnings per share

$

2.49

$

1.71

$

7.33

$

5.50

 
Weighted average shares outstanding:
Basic shares

 

86,662

 

88,456

 

86,332

 

89,126

Diluted shares

 

90,522

 

92,081

 

89,976

 

92,671

1

Reflects reclassifications from previously disclosed amounts to conform to current presentation.
FLEETCOR Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share and par value amounts)
September 30,
20191
December 31,
2018
(Unaudited)
Assets
 
Current assets:
Cash and cash equivalents

$

1,058,762

$

1,031,145

Restricted cash

 

407,115

 

333,748

Accounts and other receivables (less allowance for doubtful accounts of $64,663 at September 30, 2019 and
$59,963 at December 31, 2018, respectively)

 

1,703,998

 

1,425,815

Securitized accounts receivable - restricted for securitization investors

 

992,000

 

886,000

Prepaid expenses and other current assets

 

278,132

 

199,278

 
Total current assets

 

4,440,007

 

3,875,986

 
Property and equipment, net

 

185,522

 

186,201

Goodwill

 

4,707,383

 

4,542,074

Other intangibles, net

 

2,315,645

 

2,407,910

Investments

 

26,250

 

42,674

Other assets

 

239,387

 

147,632

 
Total assets

$

11,914,194

$

11,202,477

 
Liabilities and Stockholders’ Equity
 
Current liabilities:
Accounts payable

$

1,375,929

$

1,117,649

Accrued expenses

 

290,957

 

261,594

Customer deposits

 

957,667

 

926,685

Securitization facility

 

992,000

 

886,000

Current portion of notes payable and lines of credit

 

173,214

 

1,184,616

Other current liabilities

 

189,170

 

118,669

 
Total current liabilities

 

3,978,937

 

4,495,213

 
Notes payable and other obligations, less current portion

 

3,307,480

 

2,748,431

Deferred income taxes

 

457,174

 

491,946

Other noncurrent liabilities

 

270,293

 

126,707

 
Total noncurrent liabilities

 

4,034,947

 

3,367,084

 
Commitments and contingencies
 
Stockholders’ equity:
Common stock, $0.001 par value; 475,000,000 shares authorized; 124,174,639 shares issued and 86,770,906 shares
outstanding at September 30, 2019; and 123,035,859 shares issued and 85,845,344 shares outstanding at December 31, 2018

 

123

 

123

Additional paid-in capital

 

2,503,590

 

2,306,843

Retained earnings

 

4,477,219

 

3,817,656

Accumulated other comprehensive loss

 

(1,114,678)

 

(913,858)

Less treasury stock, 37,403,733 shares at September 30, 2019 and 37,190,515 shares at December 31, 2018

 

(1,965,944)

 

(1,870,584)

 
Total stockholders’ equity

 

3,900,310

 

3,340,180

 
Total liabilities and stockholders’ equity

$

11,914,194

$

11,202,477

1

Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019 using the modified retrospective transition method. The adoption of the Leases guidance resulted in an adjustment to other assets, other current liabilities and other noncurrent liabilities in our consolidated balance sheet for the cumulative effect of applying the standard. Financial results reported in periods prior to 2019 are unchanged.
FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Cash Flows
(In thousands)
Nine Months Ended September 30,

20191

2018

 
Operating activities
Net income

$

659,563

$

509,483

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

 

46,393

 

38,174

Stock-based compensation

 

46,120

 

54,207

Provision for losses on accounts receivable

 

54,735

 

43,520

Amortization of deferred financing costs and discounts

 

3,741

 

4,035

Amortization of intangible assets and premium on receivables

 

159,307

 

169,204

Deferred income taxes

 

11,142

 

(6,334)

Investment loss

 

15,660

 

7,147

Other non-cash operating income

 

(1,778)

 

(140)

Changes in operating assets and liabilities (net of acquisitions/dispositions):
Accounts and other receivables

 

(472,378)

 

(640,859)

Prepaid expenses and other current assets

 

(77,836)

 

(19,618)

Other assets

 

(26,578)

 

(19,922)

Accounts payable, accrued expenses and customer deposits

 

373,044

 

416,483

Net cash provided by operating activities

 

791,135

 

555,380

 
 
Investing activities
Acquisitions, net of cash acquired

 

(334,860)

 

(3,799)

Purchases of property and equipment

 

(48,681)

 

(56,312)

Other

 

-

 

(11,192)

Net cash used in investing activities

 

(383,541)

 

(71,303)

 
 
Financing activities
Proceeds from issuance of common stock

 

117,627

 

48,322

Repurchase of common stock

 

(59,362)

 

(380,651)

Borrowings on securitization facility, net

 

106,000

 

120,000

Deferred financing costs paid and debt discount

 

(2,421)

 

(166)

Proceeds from issuance of notes payable

 

700,000

 

-

Principal payments on notes payable

 

(97,313)

 

(103,500)

Borrowings from revolver

 

965,709

 

834,019

Payments on revolver

 

(1,992,296)

 

(897,861)

Borrowings from swing line of credit, net

 

1,775

 

23,735

Other

 

(189)

 

(230)

Net cash used in financing activities

 

(260,470)

 

(356,332)

 
Effect of foreign currency exchange rates on cash

 

(46,140)

 

(70,065)

 
Net increase in cash and cash equivalents and restricted cash

 

100,984

 

57,680

Cash and cash equivalents and restricted cash, beginning of period

 

1,364,893

 

1,130,870

Cash and cash equivalents and restricted cash, end of period

$

1,465,877

$

1,188,550

 
Supplemental cash flow information
Cash paid for interest

$

136,850

$

113,785

 
Cash paid for income taxes

$

148,727

$

162,563

 
 
1 Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019 using the modified retrospective transition method. The adoption of the Leases guidance resulted in an adjustment to other assets, other current liabilities and other noncurrent liabilities in our consolidated balance sheet for the cumulative effect of applying the standard. Financial results reported in periods prior to 2019 are unchanged.
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,

2019

2018

2019

2018

Net income

$

225,805

$

157,694

$

659,563

$

509,483

 
Stock based compensation

 

15,273

 

20,702

 

46,120

 

54,207

Amortization of intangible assets, premium on receivables, deferred financing costs and discounts

 

52,907

 

55,482

 

163,048

 

173,239

Impairment of investment

 

-

 

7,147

 

15,660

 

7,147

Legal settlements

 

-

 

-

 

3,474

 

-

Restructuring costs

 

-

 

481

 

-

 

3,917

Unauthorized access impact

 

-

 

322

 

-

 

2,065

Total pre-tax adjustments

 

68,180

 

84,134

 

228,302

 

240,575

 
Income tax impact of pre-tax adjustments at the effective tax rate1

 

(15,177)

 

(17,977)

 

(49,023)

 

(54,904)

Impact of investment sale, other discrete item and tax reform2

 

1,782

 

22,731

 

(63,098)

 

22,731

 
Adjusted net income

$

280,589

$

246,582

$

775,744

$

717,885

Adjusted net income per diluted share

$

3.10

$

2.68

$

8.62

$

7.75

 
Diluted shares

 

90,522

 

92,081

 

89,976

 

92,671

1

Excludes the results of the Company's investments on our effective tax rate, as results from our investments are reported within the consolidated statements of income on a post-tax basis and no tax-over-book outside basis differences related to our investments reversed during the periods. Also excludes impact of a Section 199 tax adjustment related to a prior tax year on the 2019 effective income tax rate.

2

Represents the impact to taxes from the disposition of our investment in Masternaut of $64.9 million in the second quarter of 2019 and impact of tax reform adjustments included in our effective tax rate of $22.7 million in the third quarter of 2018, respectively. Also, includes the impact of a Section 199 adjustment related to a prior tax year in the third quarter of 2019 results of $1.8 million.
* Columns may not calculate due to rounding.
Exhibit 2
Key Performance Indicators, by Product Category and Revenue Per Performance Metric on a GAAP Basis and Pro Forma and Macro Adjusted
(In millions except revenues, net per transaction)
(Unaudited)
The following table presents revenue and revenue per key performance metric by product category.*
As Reported Pro Forma and Macro Adjusted3
Three Months Ended September 30, Three Months Ended September 30,

2019

2018

Change

% Change

2019

2018

Change

% Change

 

FUEL
- Revenues, net1

$

295.6

$

283.2

$

12.4

4%

$

299.7

$

272.3

$

27.4

10%

- Transactions1

 

129.4

 

129.8

 

(0.4)

(0%)

 

129.4

 

126.1

 

3.3

3%

- Revenues, net per transaction

$

2.28

$

2.18

$

0.10

5%

$

2.32

$

2.16

$

0.16

7%

 
CORPORATE PAYMENTS
- Revenues, net

$

138.5

$

105.5

$

33.0

31%

$

139.4

$

112.0

$

27.4

24%

- Transactions

 

14.4

 

13.1

 

1.3

10%

 

14.4

 

13.3

 

1.1

9%

- Revenues, net per transaction

$

9.62

$

8.05

$

1.57

20%

$

9.68

$

8.44

$

1.24

15%

- Spend volume4

$

18,417

$

13,817

$

4,601

33%

$

18,574

$

13,817

$

4,757

34%

- Revenues, net per spend $

 

0.75%

 

0.76%

 

(0.01%)

(2%)

 

0.75%

 

0.81%

 

(0.06%)

(7%)

 
TOLLS
- Revenues, net1

$

88.7

$

76.4

$

12.3

16%

$

89.3

$

76.4

$

12.9

17%

- Tags (average monthly)5

 

5.1

 

4.7

 

0.4

8%

 

5.1

 

4.7

 

0.4

8%

- Revenues, net per tag

$

17.43

$

16.14

$

1.28

8%

$

17.54

$

16.14

$

1.40

9%

 
LODGING
- Revenues, net

$

56.4

$

48.0

$

8.4

17%

$

56.4

$

48.0

$

8.4

17%

- Room nights

 

4.4

 

4.5

 

(0.1)

(2%)

 

4.4

 

4.5

 

(0.1)

(2%)

- Revenues, net per room night

$

12.74

$

10.64

$

2.11

20%

$

12.74

$

10.64

$

2.11

20%

 
GIFT
- Revenues, net

$

48.5

$

56.7

$

(8.2)

(14%)

$

48.5

$

57.8

$

(9.4)

(16%)

- Transactions

 

277.8

 

277.6

 

0.3

0%

 

277.8

 

277.9

 

(0.1)

(0%)

- Revenues, net per transaction

$

0.17

$

0.20

$

(0.03)

(15%)

$

0.17

$

0.21

$

(0.03)

(16%)

 
OTHER2
- Revenues, net1

$

53.4

$

49.8

$

3.6

7%

$

54.6

$

50.9

$

3.7

7%

- Transactions1

 

12.4

 

12.4

 

(0.0)

(0%)

 

12.4

 

12.4

 

(0.0)

(0%)

- Revenues, net per transaction

$

4.29

$

4.00

$

0.30

7%

$

4.39

$

4.09

$

0.30

7%

 
 
FLEETCOR CONSOLIDATED REVENUES
- Revenues, net

$

681.0

$

619.6

$

61.5

10%

$

687.8

$

617.5

$

70.3

11%

1

Reflects certain reclassifications of revenue in 2018 between product categories as the Company realigned its Brazil business into product lines, resulting in refinement of revenue classified as fuel versus tolls and the eCash/OnRoad product being fuel versus other.

2

Other includes telematics, maintenance, food, and transportation related businesses.

3

See Exhibit 5 for a reconciliation of Pro forma and Macro Adjusted revenue by product and metrics, non-GAAP measures, to the GAAP equivalent.

4

Corporate payments spend in the fourth quarter of 2018 was $14,750.6 million.

5

Toll tags in the fourth quarter of 2018 was 4.8 million.
* Columns may not calculate due to rounding.
Exhibit 3
Revenues by Geography and Product
(In millions)
(Unaudited)
Revenue by Geography* Three Months Ended September 30, Nine Months Ended September 30,

2019

%

2018

%

2019

%

2018

%
US

$

414

61%

$

391

63%

$

1,174

60%

$

1,082

60%

Brazil

 

106

16%

 

92

15%

 

316

16%

 

296

17%

UK

 

68

10%

 

63

10%

 

205

10%

 

192

11%

Other

 

93

14%

 

73

12%

 

256

13%

 

220

12%

Consolidated Revenues, net

$

681

100%

$

620

100%

$

1,950

100%

$

1,790

100%

* Columns may not calculate due to rounding.
Revenue by Product Category*1 Three Months Ended September 30, Nine Months Ended September 30,

2019

%

2018

%

2019

%

2018

%
Fuel

$

296

42%

$

283

46%

$

874

45%

$

827

46%

Corporate Payments

 

138

20%

 

105

17%

 

376

19%

 

300

17%

Tolls

 

89

13%

 

76

12%

 

264

14%

 

246

14%

Lodging

 

56

8%

 

48

8%

 

148

8%

 

132

7%

Gift

 

48

7%

 

57

9%

 

133

7%

 

139

8%

Other

 

53

8%

 

50

8%

 

156

8%

 

147

8%

Consolidated Revenues, net

$

681

100%

$

620

100%

$

1,950

100%

$

1,790

100%

* Columns may not calculate due to rounding.

1

Reflects certain reclassifications of revenue in 2018 between product categories as the Company realigned its Brazil business into product lines, resulting in refinement of revenue classified as fuel versus tolls and the eCash/OnRoad product being fuel versus other.
Exhibit 4
Segment Results1
(In thousands)
(Unaudited)
 
Three Months Ended September 30, Nine Months Ended September 30,

2019

2018

2019

2018

 
Revenues, net:
North America

$

442,704

$

412,816

$

1,257,544

$

1,148,034

International

 

238,344

 

206,770

 

692,423

 

642,036

$

681,048

$

619,586

$

1,949,967

$

1,790,070

 
Operating income:
North America

$

206,965

$

177,769

$

563,574

$

495,095

International

 

122,176

 

103,321

 

347,060

 

310,866

$

329,141

$

281,090

$

910,634

$

805,961

 
Depreciation and amortization:
North America

$

39,309

$

39,049

$

119,476

$

116,041

International

 

28,038

 

28,218

 

86,224

 

91,338

$

67,347

$

67,267

$

205,700

$

207,379

 
Capital expenditures:
North America

$

10,340

$

12,604

$

30,023

$

32,700

International

 

6,366

 

9,094

 

18,658

 

23,612

$

16,706

$

21,698

$

48,681

$

56,312

1

The results from Nvoicepay acquired in the second quarter of 2019 and SOLE acquired in the third quarter of 2019 are reported in our North America segment. The results from R2C acquired in the second quarter of 2019 is reported in our International segment.

 Exhibit 5

Reconciliation of Non-GAAP Revenue and Key Performance Metric by Product to GAAP
(In millions)
(Unaudited)
 
Revenue Key Performance Metric
Three Months Ended September 30, Three Months Ended September 30,
2019* 2018* 2019* 2018*
 
FUEL-TRANSACTIONS
Pro forma and macro adjusted

$

299.7

$

272.3

129.4

126.1

Impact of acquisitions/dispositions/Uber

 

(0.0)

 

10.9

0.0

3.8

Impact of fuel prices/spread

 

0.2

 

-

-

-

Impact of foreign exchange rates

 

(4.3)

 

-

-

-

As reported

$

295.6

$

283.2

129.4

129.8

 
CORPORATE PAYMENTS- TRANSACTIONS
Pro forma and macro adjusted

$

139.4

$

112.0

14.4

13.3

Impact of acquisitions/dispositions

 

-

 

(6.5)

-

(0.2)

Impact of fuel prices/spread

 

(0.1)

 

-

-

-

Impact of foreign exchange rates

 

(0.9)

 

-

-

-

As reported

$

138.5

$

105.5

14.4

13.1

 
CORPORATE PAYMENTS- SPEND
Pro forma and macro adjusted

Intentionally Left Blank

18,574

13,817

Impact of acquisitions/dispositions

-

-

Impact of fuel prices/spread

-

-

Impact of foreign exchange rates

(156)

-

As reported

18,417

13,817

 
TOLLS- TAGS
Pro forma and macro adjusted

$

89.3

$

76.4

5.1

4.7

Impact of acquisitions/dispositions

 

-

 

-

-

-

Impact of fuel prices/spread

 

-

 

-

-

-

Impact of foreign exchange rates

 

(0.6)

 

-

-

-

As reported

$

88.7

$

76.4

5.1

4.7

 
LODGING- ROOM NIGHTS
Pro forma and macro adjusted

$

56.4

$

48.0

4.4

4.5

Impact of acquisitions/dispositions

 

-

 

-

-

-

Impact of fuel prices/spread

 

-

 

-

-

-

Impact of foreign exchange rates

 

-

 

-

-

-

As reported

$

56.4

$

48.0

4.4

4.5

 
GIFT- TRANSACTIONS
Pro forma and macro adjusted

$

48.5

$

57.8

277.8

277.9

Impact of acquisitions/dispositions

 

-

 

(1.2)

-

(0.3)

Impact of fuel prices/spread

 

-

 

-

-

-

Impact of foreign exchange rates

 

-

 

-

-

-

As reported

$

48.5

$

56.7

277.8

277.6

 
OTHER1- TRANSACTIONS
Pro forma and macro adjusted

$

54.6

$

50.9

12.4

12.4

Impact of acquisitions/dispositions

 

-

 

(1.1)

-

-

Impact of fuel prices/spread

 

-

 

-

-

-

Impact of foreign exchange rates

 

(1.2)

 

-

-

-

As reported

$

53.4

$

49.8

12.4

12.4

 
 
FLEETCOR CONSOLIDATED REVENUES
Pro forma and macro adjusted

$

687.8

$

617.5

Impact of acquisitions/dispositions

 

(0.0)

 

2.1

Impact of fuel prices/spread

 

0.2

 

-

Intentionally Left Blank
Impact of foreign exchange rates

 

(6.9)

 

-

As reported

$

681.0

$

619.6

* Columns may not calculate due to rounding.

1

Other includes telematics, maintenance and transportation related businesses.
Exhibit 6
RECONCILIATION OF NON-GAAP GUIDANCE MEASURES
(In millions, except per share amounts)
(Unaudited)
 
The following table reconciles full year 2019 financial guidance for net income to adjusted net income and adjusted net income per diluted share, at both ends of the range.
 
2019 GUIDANCE
Low* High*
Net income

$

880

$

900

Net income per diluted share

$

9.80

$

9.90

 
Stock based compensation

 

63

 

63

Amortization of intangible assets, premium on receivables, deferred financing costs and discounts

 

217

 

217

Impairment of investment

 

16

 

16

Other

 

4

 

4

Total pre-tax adjustments

 

300

 

300

 
Income tax impact of pre-tax adjustments at the effective tax rate

 

(66)

 

(66)

Impact of tax reform and other discrete item

 

(63)

 

(63)

Adjusted net income

$

1,050

$

1,070

Adjusted net income per diluted share

$

11.68

$

11.78

 
Diluted shares

 

90

 

90

 
* Columns may not calculate due to rounding.

 

Source: FLEETCOR Technologies, Inc.

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


FLEETCOR Technologies, Inc.

Investor Relations
Media Relations