FLEETCOR Reports Second Quarter 2022 Financial Results

Source:
FLEETCOR Technologies, Inc.

ATLANTA--(BUSINESS WIRE)--Aug. 3, 2022-- FLEETCOR Technologies, Inc. (NYSE: FLT), a leading global business payments company, today reported financial results for its second quarter ended June 30, 2022.

“We reported an exceptional quarter, with continued momentum leading to revenues and adjusted net income per share growth of 29% and 32%, respectively,” said Ron Clarke, chairman and chief executive officer, FLEETCOR Technologies, Inc. “Organic revenue growth finished strong at 17% for the quarter, driven by results in lodging and corporate payments. We are adjusting our guidance to reflect our second quarter outperformance, and our updated outlook. Our preliminary July results remain positive, and support our guidance for the second half of the year.”

Financial Results for Second Quarter of 2022:

GAAP Results

  • Revenues increased 29% to $861.3 million in the second quarter of 2022, compared to $667.4 million in the second quarter of 2021.
  • Net income increased 34% to $262.2 million in the second quarter of 2022, compared to $196.2 million in the second quarter of 2021.
  • Net income per diluted share increased 46% to $3.35 in the second quarter of 2022, compared to $2.30 per diluted share in the second quarter of 2021.

Non-GAAP Results1

  • Adjusted net income1 increased 22% to $326.1 million in the second quarter of 2022, compared to $268.4 million in the second quarter of 2021.
  • Adjusted net income per diluted share1 increased 32% to $4.17 in the second quarter of 2022, compared to $3.15 per diluted share in the second quarter of 2021.

“Our second quarter results came in well ahead of the expectations we provided in May, for both revenue and adjusted net income per share,” said Charles Freund, chief financial officer, FLEETCOR Technologies, Inc. “Our businesses continued the positive momentum from the first quarter, with the majority of the second quarter outperformance coming from organic growth. We again deployed our substantial cash flow to buy back shares, and expect to continue to do so opportunistically.”

Updated Fiscal Year 2022 Outlook:

“The outlook for the second half of the year remains positive, as we expect the fundamental trends from the first half of the year to continue. We expect the net benefits from higher fuel prices, higher fuel spreads and lower share count to effectively offset headwinds from foreign exchange rates and higher interest rates,” concluded Freund.

For fiscal year 2022, FLEETCOR Technologies, Inc. updated financial guidance1 is as follows:

  • Total revenues between $3,380 million and $3,420 million;
  • Net income between $962 million and $982 million;
  • Net income per diluted share between $12.42 and $12.62;
  • Adjusted net income between $1,230 million and $1,250 million; and
  • Adjusted net income per diluted share between $15.85 and $16.05.

FLEETCOR’s guidance assumptions are as follows:

For the balance of the year:

  • Weighted average U.S. fuel prices equal to $4.46 per gallon, which includes fuel prices of $4.64 and $4.29 for the next two quarters, respectively;
  • Market spreads favorable to the 2021 average; and
  • Foreign exchange rates equal to the last seven-day average as of July 28, 2022.

For the full year:

  • Interest expense between $145 million and $155 million, which assumes average LIBOR rates of 2.2% and 3.2% for the next two quarters, respectively;
  • Approximately 78 million fully diluted shares outstanding;
  • A tax rate of 26.5% to 27.5%; and
  • No impact related to acquisitions not already closed.

Third Quarter of 2022 Outlook:

The Company currently expects third quarter revenues between $870 million and $890 million, and adjusted net income per diluted share between $4.15 and $4.25.

____________________________________________________________

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

Conference Call:

The Company will host a conference call to discuss second quarter 2022 financial results today at 5:00 pm ET. Hosting the call will be Ron Clarke, chief executive officer, Charles Freund, chief financial officer and Jim Eglseder, investor relations. The conference call can be accessed live via webcast from the Company's investor relations website at http://investor.fleetcor.com. A replay will be available one hour after the call and can be accessed by dialing (844) 825-9789 or (412) 317-5180 for international callers; the conference ID is 10169050. The replay will be available until Wednesday August 10, 2022. Prior to the conference call, the Company will post supplemental financial information that will be discussed during the call and live webcast.

Forward-Looking Statements:

This press release contains forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about FLEETCOR’s beliefs, assumptions, expectations and future performance, are forward-looking statements. Forward-looking statements can be identified by the use of words such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project” or “expect,” “may,” “will,” “would,” “could” or “should,” the negative of these terms or other comparable terminology.

These forward-looking statements are not a guarantee of performance, and you should not place undue reliance on such statements. We have based these forward-looking statements largely on preliminary information, internal estimates and management assumptions, expectations and plans about future conditions, events and results. Forward-looking statements are subject to many uncertainties and other variable circumstances, such as regulatory measures, voluntary actions, or changes in consumer preferences, that impact our transaction volume, including social distancing, shelter-in-place, shutdowns of nonessential businesses and similar measures imposed or undertaken in an effort to contain and mitigate the spread of the coronavirus (including any variants thereof, “COVID-19”) or new outbreaks thereof, including in China; the impact of vaccine mandates on our workforce in certain jurisdictions; adverse changes or volatility in fuel prices and spreads and the current inflationary environment; adverse changes in program fees or charges we may collect, whether through legal, regulatory or contractual changes; adverse outcomes with respect to current and future legal proceedings or investigations, including without limitation, the FTC lawsuit, or actions of governmental, regulatory or quasi-governmental bodies or standards or industry organizations with respect to our payment cards; delays or failures associated with implication of, or adaption to, new technology, changes in credit risk of customers and associated losses; failure to maintain or renew key business relationships; failure to maintain competitive product offerings; failure to complete, or delays in completing, acquisitions, new partnerships or customer arrangements; and to successfully integrate or otherwise achieve anticipated benefits from such acquisitions, partnerships, and customer arrangements; failure to successfully expand and manage our business internationally; and other risks related to our international operations, including the impact of the conflict between Russia and Ukraine on our business and operations, the potential impact to our business as a result of the United Kingdom’s referendum to leave the European Union; the impact of foreign exchange rates on operations, revenues and income; and the failure or compromise of our data centers and other information technology assets; as well as the other risks and uncertainties identified under the caption "Risk Factors" in FLEETCOR's Annual Report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission (“SEC”) on March 1, 2022 and subsequent filings with the SEC made by us. These factors could cause our actual results and experience to differ materially from any forward-looking statement made herein. The forward-looking statements included in this press release are made only as of the date hereof and we do not undertake, and specifically disclaim, any obligation to update any such statements as a result of new information, future events or developments, except as specifically stated or to the extent required by law. You may access FLEETCOR’s SEC filings for free by visiting the SEC web site at www.sec.gov.

About Non-GAAP Financial Measures:

This press release includes non-GAAP financial measures, which are used by the Company as supplemental measures to evaluate its overall operating performance. The Company’s definitions of the non-GAAP financial measures used herein may differ from similarly titled measures used by others, including within our industry. By providing these non-GAAP financial measures, together with reconciliations to the most directly comparable GAAP financial measures, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing strategic initiatives. See the appendix for additional information regarding these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP measure.

Adjusted net income is calculated as net income, adjusted to eliminate (a) non-cash share based compensation expense related to share based compensation awards, (b) amortization of deferred financing costs, discounts, intangible assets, and amortization of the premium recognized on the purchase of receivables, (c) integration and deal related costs, and (d) other non-recurring items, including unusual credit losses occurring largely, but not necessarily exclusively, due to COVID-19, the impact of discrete tax items, impairment charges, asset write-offs, restructuring costs, gains due to disposition of assets/businesses, loss on extinguishment of debt, and legal settlements and related legal fees. We adjust net income for the tax effect of non-tax items using our effective income tax rate, exclusive of discrete tax items. We calculate adjusted net income and adjusted net income per diluted share to eliminate the effect of items that we do not consider indicative of our core operating performance.

Adjusted net income and adjusted net income per diluted share are supplemental measures of operating performance that do not represent and should not be considered as an alternative to net income, net income per diluted share or cash flow from operations, as determined by U.S. generally accepted accounting principles, or U.S. GAAP. We believe it is useful to exclude non-cash share based compensation expense from adjusted net income because non-cash equity grants made at a certain price and point in time do not necessarily reflect how our business is performing at any particular time and share based compensation expense is not a key measure of our core operating performance. We also believe that amortization expense can vary substantially from company to company and from period to period depending upon their financing and accounting methods, the fair value and average expected life of their acquired intangible assets, their capital structures and the method by which their assets were acquired; therefore, we have excluded amortization expense from our adjusted net income. Integration and deal related costs represent business acquisition transaction costs, professional services fees, short-term retention bonuses and system migration costs, etc., that are not indicative of the performance of the underlying business. We also believe that certain expenses, discrete tax items, recoveries (e.g. legal settlements, write-off of customer receivable, etc.), gains and losses on investments, and impairment charges do not necessarily reflect how our investments and business are performing. We adjust net income for the tax effect of each of these non-tax items using the effective tax rate during the period, exclusive of discrete tax items.

Organic revenue growth is calculated as revenue growth in the current period adjusted for the impact of changes in the macroeconomic environment (to include fuel price, fuel price spreads and changes in foreign exchange rates) over revenue in the comparable prior period adjusted to include or remove the impact of acquisitions and/or divestitures and non-recurring items that have occurred subsequent to that period. We believe that organic revenue growth on a macro-neutral, one-time item, and consistent acquisition/divestiture/non-recurring item basis is useful to investors for understanding the performance of FLEETCOR.

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

  • as measurements of operating performance because they assist us in comparing our operating performance on a consistent basis;
  • for planning purposes, including the preparation of our internal annual operating budget;
  • to allocate resources to enhance the financial performance of our business; and
  • to evaluate the performance and effectiveness of our operational strategies.

About FLEETCOR®

FLEETCOR Technologies (NYSE: FLT) is a leading global business payments company that helps businesses spend less by providing innovative solutions that enable and control expense-related purchasing and payment processes. The FLEETCOR portfolio of brands automate, secure, digitize and manage payment transactions on behalf of businesses across more than 100 countries in North America, Latin America, Europe, and Asia Pacific. For more information, please visit www.FLEETCOR.com.

FLEETCOR Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands)
June 30, 2022 December 31, 2021
(Unaudited)
Assets
 
Current assets:
Cash and cash equivalents

$

1,423,060

 

$

1,520,027

 

Restricted cash

 

933,373

 

 

730,668

 

Accounts and other receivables (less allowance)

 

2,448,585

 

 

1,793,274

 

Securitized accounts receivable - restricted for securitization investors

 

1,600,000

 

 

1,118,000

 

Prepaid expenses and other current assets

 

418,451

 

 

326,079

 

 
Total current assets

 

6,823,469

 

 

5,488,048

 

 
Property and equipment, net

 

260,588

 

 

236,294

 

Goodwill

 

5,076,364

 

 

5,078,978

 

Other intangibles, net

 

2,220,246

 

 

2,335,385

 

Investments

 

67,067

 

 

52,016

 

Other assets

 

262,481

 

 

213,932

 

 
Total assets

$

14,710,215

 

$

13,404,653

 

 
Liabilities and Stockholders’ Equity
 
Current liabilities:
Accounts payable

$

2,014,962

 

$

1,406,350

 

Accrued expenses

 

348,301

 

 

369,054

 

Customer deposits

 

1,685,261

 

 

1,788,705

 

Securitization facility

 

1,600,000

 

 

1,118,000

 

Current portion of notes payable and lines of credit

 

508,108

 

 

399,628

 

Other current liabilities

 

275,263

 

 

208,614

 

 
Total current liabilities

 

6,431,895

 

 

5,290,351

 

 
Notes payable and other obligations, less current portion

 

4,767,545

 

 

4,460,039

 

Deferred income taxes

 

566,434

 

 

566,291

 

Other noncurrent liabilities

 

256,672

 

 

221,392

 

 
Total noncurrent liabilities

 

5,590,651

 

 

5,247,722

 

 
Commitments and contingencies
 
Stockholders’ equity:
Common stock

 

127

 

 

127

 

Additional paid-in capital

 

2,964,236

 

 

2,878,751

 

Retained earnings

 

6,736,565

 

 

6,256,442

 

Accumulated other comprehensive loss

 

(1,413,833

)

 

(1,464,616

)

Treasury stock

 

(5,599,426

)

 

(4,804,124

)

 
Total stockholders’ equity

 

2,687,669

 

 

2,866,580

 

 
Total liabilities and stockholders’ equity

$

14,710,215

 

$

13,404,653

 

 
 
FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Income
(In thousands, except per share amounts)
 

Three Months Ended June 30,

Six Months Ended June 30,

 

2022

 

 

2021

 

2022

 

2021

 

 
Revenues, net

$

861,278

 

$

667,381

$

1,650,519

$

1,276,004

 

 
Expenses:
Processing

 

185,588

 

 

122,294

 

359,782

 

238,722

 

Selling

 

79,324

 

 

63,225

 

156,213

 

115,307

 

General and administrative

 

147,446

 

 

115,008

 

290,968

 

223,370

 

Depreciation and amortization

 

78,474

 

 

69,218

 

155,276

 

134,947

 

Other operating, net

 

(34

)

 

24

 

79

 

81

 

Operating income

 

370,480

 

 

297,612

 

688,201

 

563,577

 

Investment loss (gain)

 

193

 

 

-

 

345

 

(9

)

Other expense, net

 

3,564

 

 

408

 

4,433

 

2,151

 

Interest expense, net

 

23,070

 

 

34,685

 

45,100

 

63,236

 

Total other expense

 

26,827

 

 

35,093

 

49,878

 

65,378

 

Income before income taxes

 

343,653

 

 

262,519

 

638,323

 

498,199

 

Provision for income taxes

 

81,482

 

 

66,272

 

158,200

 

117,713

 

Net income

$

262,171

 

$

196,247

$

480,123

$

380,486

 

 
Basic earnings per share

$

3.42

 

$

2.36

$

6.22

$

4.57

 

Diluted earnings per share

$

3.35

 

$

2.30

$

6.10

$

4.45

 

 
Weighted average shares outstanding:
Basic shares

 

76,769

 

 

83,141

 

77,250

 

83,307

 

Diluted shares

 

78,239

 

 

85,295

 

78,762

 

85,528

 

 
 

FLEETCOR Technologies, Inc. and Subsidiaries

Unaudited Consolidated Statements of Cash Flows

(In thousands)

Six Months Ended June 30,

2022

2021

 
Operating activities
Net income

$

480,123

 

$

380,486

 

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

 

43,783

 

 

36,094

 

Stock-based compensation

 

66,648

 

 

35,632

 

Provision for credit losses on accounts and other receivables

 

52,704

 

 

8,521

 

Amortization of deferred financing costs and discounts

 

4,131

 

 

3,248

 

Amortization of intangible assets and premium on receivables

 

111,493

 

 

98,853

 

Loss on extinguishment of debt

 

1,934

 

 

6,230

 

Deferred income taxes

 

(10,864

)

 

8,216

 

Other non-cash operating loss

 

425

 

 

72

 

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

 

(1,225,705

)

 

(706,574

)

Prepaid expenses and other current assets

 

(89,933

)

 

115,239

 

Other assets

 

(48,270

)

 

20,715

 

Accounts payable, accrued expenses and customer deposits

 

655,384

 

 

349,710

 

Net cash provided by operating activities

 

41,853

 

 

356,442

 

 
 
Investing activities
Acquisitions, net of cash acquired

 

(33,744

)

 

(114,994

)

Purchases of property and equipment

 

(66,629

)

 

(45,765

)

Other

 

-

 

 

(2,281

)

Net cash used in investing activities

 

(100,373

)

 

(163,040

)

 
 
Financing activities
Proceeds from issuance of common stock

 

18,837

 

 

35,921

 

Repurchase of common stock

 

(795,302

)

 

(416,585

)

Borrowings on securitization facility, net

 

482,000

 

 

300,000

 

Deferred financing costs paid and debt discount

 

(337

)

 

(21,039

)

Proceeds from issuance of notes payable

 

3,000,000

 

 

1,150,000

 

Principal payments on notes payable

 

(2,777,000

)

 

(419,250

)

Borrowings from revolver

 

1,550,000

 

 

405,000

 

Payments on revolver

 

(1,356,000

)

 

(623,851

)

Borrowings (payments) on swing line of credit, net

 

194

 

 

(51,157

)

Other

 

-

 

 

(366

)

Net cash provided by financing activities

 

122,392

 

 

358,673

 

 
Effect of foreign currency exchange rates on cash

 

41,866

 

 

30,609

 

 
Net increase in cash and cash equivalents and restricted cash

 

105,738

 

 

582,684

 

Cash and cash equivalents and restricted cash, beginning of period

 

2,250,695

 

 

1,476,619

 

Cash and cash equivalents and restricted cash, end of period

$

2,356,433

 

$

2,059,303

 

 
Supplemental cash flow information
Cash paid for interest, net

$

73,323

 

$

54,818

 

 
Cash paid for income taxes, net

$

215,653

 

$

113,969

 

 
 
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 June 30,

Six Months Ended June 30,

 

2022

 

 

2021

 

 

2022

 

 

2021

 

Net income

$

262,171

 

$

196,247

 

$

480,123

 

$

380,486

 

 
Stock based compensation

 

34,017

 

 

17,885

 

 

66,648

 

 

35,632

 

Amortization1

 

57,994

 

 

52,525

 

 

115,624

 

 

102,101

 

Integration and deal related costs

 

2,957

 

 

7,823

 

 

9,210

 

 

11,493

 

Legal settlements/litigation

 

1,467

 

 

1,388

 

 

1,902

 

 

5,058

 

Restructuring and related costs

 

763

 

 

(777

)

 

763

 

 

(1,363

)

Loss on extinguishment of debt

 

1,934

 

 

6,230

 

 

1,934

 

 

6,230

 

Total pre-tax adjustments

 

99,132

 

 

85,074

 

 

196,081

 

 

159,151

 

 
Income taxes2

 

(35,164

)

 

(12,910

)

 

(60,405

)

 

(29,079

)

 
Adjusted net income

$

326,139

 

$

268,411

 

$

615,799

 

$

510,559

 

Adjusted net income per diluted share

$

4.17

 

$

3.15

 

$

7.82

 

$

5.97

 

 
Diluted shares

 

78,239

 

 

85,295

 

 

78,762

 

 

85,528

 

 
 
1 Includes amortization related to intangible assets, premium on receivables, deferred financing costs and debt discounts.
2 Includes $9.0 million adjustment for tax benefit of certain income determined to be permanently invested in 2Q 2022.
* Columns may not calculate due to rounding.
 
Exhibit 2
Key Performance Indicators, by Solution and Revenue Per Performance Metric on a GAAP Basis and Pro Forma and Macro Adjusted
(In millions except revenues, net per key performance metric)
(Unaudited)
The following table presents revenue and revenue per key performance metric by solution.*

As Reported

Pro Forma and Macro Adjusted2

Three Months Ended June 30,

Three Months Ended June 30,

 

2022

 

 

2021

 

Change

% Change

 

2022

 

 

2021

 

Change

% Change

 
FUEL
- Revenues, net

$

346.9

 

$

295.1

 

$

51.7

 

18

%

$

317.3

 

$

295.2

 

$

22.0

 

7

%

- Transactions

 

122.5

 

 

118.3

 

 

4.2

 

4

%

 

122.5

 

 

119.8

 

 

2.7

 

2

%

- Revenues, net per transaction

$

2.83

 

$

2.50

 

$

0.34

 

14

%

$

2.59

 

$

2.46

 

$

0.13

 

5

%

 
CORPORATE PAYMENTS

-Revenues, net

$

189.7

 

$

140.4

 

$

49.3

 

35

%

$

195.2

 

$

164.8

 

$

30.5

 

18

%

- Spend volume

$

28,836

 

$

23,002

 

$

5,833

 

25

%

$

28,836

 

$

27,549

 

$

1,287

 

5

%

- Revenues, net per spend $

 

0.66

%

 

0.61

%

 

0.05

%

8

%

 

0.68

%

 

0.60

%

 

0.08

%

13

%

 
TOLLS

- Revenues, net

$

91.2

 

$

71.3

 

$

19.8

 

28

%

$

84.5

 

$

71.3

 

$

13.2

 

19

%

- Tags (average monthly)

 

6.1

 

 

5.8

 

 

0.3

 

5

%

 

6.1

 

 

5.8

 

 

0.3

 

5

%

- Revenues, net per tag

$

14.85

 

$

12.21

 

$

2.64

 

22

%

$

13.76

 

$

12.20

 

$

1.56

 

13

%

 
LODGING

- Revenues, net

$

116.9

 

$

62.2

 

$

54.7

 

88

%

$

117.2

 

$

82.7

 

$

34.4

 

42

%

- Room nights

 

9.5

 

 

6.6

 

 

2.9

 

44

%

 

9.5

 

 

8.2

 

 

1.3

 

16

%

- Revenues, net per room night

$

12.30

 

$

9.41

 

$

2.90

 

31

%

$

12.33

 

$

10.12

 

$

2.22

 

22

%

 
GIFT

- Revenues, net

$

51.7

 

$

32.3

 

$

19.4

 

60

%

$

52.5

 

$

32.3

 

$

20.2

 

63

%

- Transactions

 

287.5

 

 

259.4

 

 

28.1

 

11

%

 

287.5

 

 

259.4

 

 

28.1

 

11

%

- Revenues, net per transaction

$

0.18

 

$

0.12

 

$

0.06

 

44

%

$

0.18

 

$

0.12

 

$

0.06

 

47

%

 
OTHER1

- Revenues, net

$

65.0

 

$

66.0

 

$

(1.0

)

(2

%)

$

66.7

 

$

66.0

 

$

0.7

 

1

%

- Transactions

 

10.2

 

 

9.3

 

 

1.0

 

11

%

 

10.2

 

 

9.3

 

 

1.0

 

11

%

- Revenues, net per transaction

$

6.34

 

$

7.13

 

$

(0.79

)

(11

%)

$

6.51

 

$

7.13

 

$

(0.63

)

(9

%)

 
 
FLEETCOR CONSOLIDATED REVENUES

- Revenues, net

$

861.3

 

$

667.4

 

$

193.9

 

29

%

$

833.4

 

$

712.3

 

$

121.0

 

17

%

 
 
1 Other includes telematics, maintenance, food, payroll card and transportation related businesses.
2 See Exhibit 5 for a reconciliation of Pro forma and Macro Adjusted revenue by solution and metrics, non-GAAP measures, to the GAAP equivalent.
* Columns may not calculate due to rounding.
Exhibit 3
Revenues by Geography and Solution
(In millions)
(Unaudited)
 
Revenues by Geography* Three Months Ended June 30, Six Months Ended June 30,

 

2022

%

 

2021

%

 

2022

%

 

2021

%
 
US

$

528

61

%

$

413

62

%

$

999

61

%

$

783

61

%

Brazil

 

112

13

%

 

86

13

%

 

214

13

%

 

168

13

%

UK

 

93

11

%

 

84

13

%

 

188

11

%

 

159

12

%

Other

 

128

15

%

 

85

13

%

 

249

15

%

 

166

13

%

 
Consolidated Revenues, net

$

861

100

%

$

667

100

%

$

1,651

100

%

$

1,276

100

%

* Columns may not calculate due to rounding.
 
Revenues by Solution* Three Months Ended June 30, Six Months Ended June 30,

 

2022

%

 

2021

%

 

2022

%

 

2021

%
 
Fuel

$

347

40

%

$

295

44

%

$

665

40

%

$

557

44

%

Corporate Payments

 

190

22

%

 

140

21

%

 

373

23

%

 

257

20

%

Tolls

 

91

11

%

 

71

11

%

 

176

11

%

 

140

11

%

Lodging

 

117

14

%

 

62

9

%

 

211

13

%

 

121

10

%

Gift

 

52

6

%

 

32

5

%

 

95

6

%

 

76

6

%

Other

 

65

8

%

 

66

10

%

 

129

8

%

 

125

10

%

 
Consolidated Revenues, net

$

861

100

%

$

667

100

%

$

1,651

100

%

$

1,276

100

%

* Columns may not calculate due to rounding.
 
 
Exhibit 4A
Non-GAAP Prior Segment Results*
(In thousands)
(Unaudited)
 
Three Months Ended June 30, Six Months Ended June 30,

2022

2021

2022

2021

 
Revenues, net:
North America

$

601,677

$

443,426

$

1,149,059

$

845,632

Brazil

 

111,825

 

85,670

 

214,362

 

167,593

International

 

147,776

 

138,285

 

287,098

 

262,779

$

861,278

$

667,381

$

1,650,519

$

1,276,004

 
Operating income:
North America

$

240,997

$

178,652

$

437,927

$

341,228

Brazil

 

41,617

 

33,331

 

78,945

 

65,556

International

 

87,866

 

85,629

 

171,329

 

156,793

$

370,480

$

297,612

$

688,201

$

563,577

 
Depreciation and amortization:
North America

$

53,790

$

43,882

$

107,097

$

84,415

Brazil

 

14,288

 

12,894

 

27,409

 

25,181

International

 

10,396

 

12,442

 

20,770

 

25,351

$

78,474

$

69,218

$

155,276

$

134,947

 
Capital expenditures:
North America

$

23,072

$

15,325

$

44,666

$

26,855

Brazil

 

7,621

 

5,775

 

13,599

 

9,126

International

 

4,549

 

5,138

 

8,364

 

9,784

$

35,242

$

26,238

$

66,629

$

45,765

 
* In the second quarter of 2022, in order to align with recent changes in the organizational structure and management reporting, the Company has recast its segments into Fleet, Corporate Payments, Lodging, Brazil and Other. During this quarter of transition, we have provided both the prior and current segment results. In future reporting periods, we will provide results in our current segments only.
Exhibit 4B
GAAP Segment Results*
(In thousands)
(Unaudited)
 
Three Months Ended June 30, Six Months Ended June 30,

 

20221

 

2021

 

20221

 

2021

 
Revenues, net:
Fleet

$

377,361

$

333,091

$

728,954

$

628,064

Corporate Payments

 

189,699

 

140,388

 

373,467

 

256,782

Lodging

 

116,900

 

62,248

 

211,476

 

121,284

Brazil

 

111,825

 

85,669

 

214,362

 

167,593

Other2

 

65,493

 

45,985

 

122,260

 

102,281

$

861,278

$

667,381

$

1,650,519

$

1,276,004

 
Operating income:
Fleet

$

186,790

$

172,588

$

354,635

$

319,619

Corporate Payments

 

65,859

 

48,611

 

124,066

 

93,014

Lodging

 

58,559

 

29,901

 

98,339

 

54,774

Brazil

 

41,617

 

33,331

 

78,945

 

65,556

Other2

 

17,655

 

13,181

 

32,216

 

30,614

$

370,480

$

297,612

$

688,201

$

563,577

 
Depreciation and amortization:
Fleet

$

34,927

$

36,384

$

69,634

$

73,039

Corporate Payments

 

16,724

 

12,320

 

33,072

 

21,553

Lodging

 

10,321

 

5,229

 

20,855

 

10,384

Brazil

 

14,288

 

12,894

 

27,409

 

25,181

Other2

 

2,214

 

2,391

 

4,306

 

4,790

$

78,474

$

69,218

$

155,276

$

134,947

 
Capital expenditures:
Fleet

$

18,447

$

15,410

$

34,237

$

26,718

Corporate Payments

 

5,158

 

2,598

 

9,646

 

5,355

Lodging

 

2,067

 

964

 

3,759

 

1,864

Brazil

 

7,620

 

5,775

 

13,598

 

9,126

Other2

 

1,950

 

1,491

 

5,389

 

2,702

$

35,242

$

26,238

$

66,629

$

45,765

 
1 Results from the 2022 acquisition of Levarti are reported in our Lodging segment.
2 Other includes gift and payroll card components.
* In the second quarter of 2022, in order to align with recent changes in the organizational structure and management reporting, the Company has recast its segments into Fleet, Corporate Payments, Lodging, Brazil and Other. The presentation of segment information has been recast for the prior quarters to align with segment presentation for the three and six months ended June 30, 2022.
Exhibit 5
Reconciliation of Non-GAAP Revenue and Key Performance Metric by Solution to GAAP
(In millions)
(Unaudited)
 
Revenues, net Key Performance Metric
Three Months Ended June 30, Three Months Ended June 30,
2022* 2021* 2022* 2021*
 
FUEL-TRANSACTIONS
Pro forma and macro adjusted

$

317.3

 

$

295.2

 

122.5

119.8

 

Impact of acquisitions/dispositions

 

-

 

 

(0.1

)

-

(1.5

)

Impact of fuel prices/spread

 

35.2

 

 

-

 

-

-

 

Impact of foreign exchange rates

 

(5.7

)

 

-

 

-

-

 

As reported

$

346.9

 

$

295.1

 

122.5

118.3

 

 
CORPORATE PAYMENTS- SPEND
Pro forma and macro adjusted

$

195.2

 

$

164.8

 

28,836

27,549

 

Impact of acquisitions/dispositions

 

-

 

 

(24.4

)

-

(4,546

)

Impact of fuel prices/spread

 

0.7

 

 

-

 

-

-

 

Impact of foreign exchange rates

 

(6.2

)

 

-

 

-

-

 

As reported

$

189.7

 

$

140.4

 

28,836

23,002

 

 
TOLLS- TAGS
Pro forma and macro adjusted

$

84.5

 

$

71.3

 

6.1

5.8

 

Impact of acquisitions/dispositions

 

-

 

 

-

 

-

-

 

Impact of fuel prices/spread

 

-

 

 

-

 

-

-

 

Impact of foreign exchange rates

 

6.7

 

 

-

 

-

-

 

As reported

$

91.2

 

$

71.3

 

6.1

5.8

 

 
LODGING- ROOM NIGHTS
Pro forma and macro adjusted

$

117.2

 

$

82.7

 

9.5

8.2

 

Impact of acquisitions/dispositions

 

-

 

 

(20.5

)

-

(1.6

)

Impact of fuel prices/spread

 

-

 

 

-

 

-

-

 

Impact of foreign exchange rates

 

(0.3

)

 

-

 

-

-

 

As reported

$

116.9

 

$

62.2

 

9.5

6.6

 

 
GIFT- TRANSACTIONS
Pro forma and macro adjusted

$

52.5

 

$

32.3

 

287.5

259.4

 

Impact of acquisitions/dispositions

 

-

 

 

-

 

-

-

 

Impact of fuel prices/spread

 

-

 

 

-

 

-

-

 

Impact of foreign exchange rates

 

(0.8

)

 

-

 

-

-

 

As reported

$

51.7

 

$

32.3

 

287.5

259.4

 

 
OTHER1- TRANSACTIONS
Pro forma and macro adjusted

$

66.7

 

$

66.0

 

10.2

9.3

 

Impact of acquisitions/dispositions

 

-

 

 

-

 

-

-

 

Impact of fuel prices/spread

 

-

 

 

-

 

-

-

 

Impact of foreign exchange rates

 

(1.7

)

 

-

 

-

-

 

As reported

$

65.0

 

$

66.0

 

10.2

9.3

 

 
 
FLEETCOR CONSOLIDATED REVENUES
Pro forma and macro adjusted

$

833.4

 

$

712.3

 

Impact of acquisitions/dispositions

 

-

 

 

(45.0

)

Impact of fuel prices/spread2

 

35.9

 

 

-

 

Impact of foreign exchange rates2

 

(8.0

)

 

-

 

As reported

$

861.3

 

$

667.4

 

 
* Columns may not calculate due to rounding.
1 Other includes telematics, maintenance, food, payroll card and transportation related businesses.
2 Revenues reflect an estimated $33 million positive impact from fuel prices and approximately $3 million positive impact from fuel price spreads, partially offset by the negative impact of movements in foreign exchange rates of approximately $8 million.
 
 
Exhibit 6
RECONCILIATION OF NON-GAAP GUIDANCE MEASURES
(In millions, except per share amounts)
(Unaudited)
 
The following table reconciles third quarter 2022 and full year 2022 financial guidance for net income to adjusted net income and adjusted net income per diluted share, at both ends of the range.
 
Q3 2022 GUIDANCE
Low* High*
Net income

$

249

 

$

259

 

Net income per diluted share

$

3.26

 

$

3.36

 

 
Stock based compensation

 

33

 

 

33

 

Amortization

 

56

 

 

56

 

Other

 

6

 

 

6

 

Total pre-tax adjustments

 

95

 

 

95

 

 
Income taxes

 

(26

)

 

(26

)

Adjusted net income

$

317

 

$

327

 

Adjusted net income per diluted share

$

4.15

 

$

4.25

 

 
Diluted shares

 

77

 

 

77

 

 
2022 GUIDANCE
Low* High*
Net income

$

962

 

$

982

 

Net income per diluted share

$

12.42

 

$

12.62

 

 
Stock based compensation

 

127

 

 

127

 

Amortization

 

227

 

 

227

 

Other

 

25

 

 

25

 

Total pre-tax adjustments

 

378

 

 

378

 

 
Income taxes

 

(102

)

 

(102

)

Discrete taxes

 

(9

)

 

(9

)

Adjusted net income

$

1,230

 

$

1,250

 

Adjusted net income per diluted share

$

15.85

 

$

16.05

 

 
Diluted shares

 

78

 

 

78

 

* Columns may not calculate due to rounding.

 

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

Source: FLEETCOR Technologies, Inc.


FLEETCOR Technologies, Inc.

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