Press Releases

FLEETCOR Reports Second Quarter Financial Results

August 6, 2019 at 4:05 PM EDT

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

“Our second quarter revenues and profits once again finished above our expectations, with adjusted net income per diluted share of $2.85, which was $0.06 above the midpoint of our guidance for the quarter. Organic revenue growth reached 13% overall, driven primarily by double digit growth rates in corporate payments, tolls and lodging, and the fuel category had another strong quarter finishing up 9%,” said Ron Clarke, chairman and chief executive officer, FLEETCOR Technologies, Inc. “Subsequent to the second quarter, we completed a tuck-in acquisition in our payroll card business that we believe will enhance our position in that category.”

Financial Results for Second Quarter of 2019:

GAAP Results

  • Total revenues increased 11% to $647.1 million in the second quarter of 2019, compared to $585.0 million in the second quarter of 2018.
  • Net income increased 48% to $261.7 million in the second quarter of 2019, compared to $176.9 million in the second quarter of 2018. The second quarter of 2019 included an income tax benefit of $65 million due to the sale of the Company’s remaining investment in Masternaut, which allowed the Company to offset the capital loss recognized on that disposition, against the previously recorded capital gain recognized on the sale of Nextraq in the third quarter of 2017.
  • Net income per diluted share increased 52% to $2.90 in the second quarter of 2019, compared to $1.91 per diluted share in the second quarter of 2018. The second quarter included $0.72 per share benefit of income tax related to the sale of the Company’s investment in Masternaut as noted above.

Non-GAAP Results1

  • Adjusted net income1 increased 8% to $256.7 million in the second quarter of 2019, compared to $237.8 million in the second quarter of 2018.
  • Adjusted net income per diluted share1 increased 11% to $2.85 in the second quarter of 2019, compared to $2.57 per diluted share in the second quarter of 2018.

Fiscal-Year 2019 Outlook:

“The second quarter of 2019 was another strong quarter for the Company, driven by solid performances in all of our business lines. The macro-economic environment came in as expected during the quarter, with the benefit from better than expected fuel spreads and higher fuel prices offsetting the impact of unfavorable exchange rates,” said Eric Dey, chief financial officer, FLEETCOR Technologies, Inc. “We are raising our full year revenue guidance by $20 million at the mid-point to reflect our over performance in the second quarter and the acquisition of Sole Financial early in the third quarter. We are also raising our adjusted net income per diluted share guidance by $0.06 to reflect our second quarter results compared to our expectations.”

“For the reminder of the year, we expect the macro impact will be slightly worse than our prior guidance due primarily to lower fuel prices and worse foreign exchange rates. We also expect our share count to be slightly higher than the prior guidance primarily due to the increase in our share price. Offsetting these items will be lower interest expense and the impact of acquisitions, which will be slightly accretive over the balance of the year. We expect these assumptions in total to net to approximately zero in terms of rest of year impact to the business,” concluded Dey.

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

  • Total revenues to be between $2,625 million and $2,675 million;
  • GAAP net income to be between $865 million and $895 million;
  • GAAP net income per diluted share to be between $9.60 and $9.90;
  • Adjusted net income to be between $1,040 million and $1,070 million; and
  • Adjusted net income per diluted share to be between $11.53 and $11.83.

FLEETCOR’s guidance assumptions for 2019 are as follows:

  • Weighted fuel prices equal to $2.75 per gallon average in the U.S. for the balance of the year;
  • Market spreads slightly below the 2018 second half of year;
  • Foreign exchange rates equal to the seven-day average as of July 28, 2019;
  • Interest expense of $150 million to $160 million;
  • Approximately 90.3 million fully diluted shares outstanding;
  • An adjusted tax rate of 23% to 24%; and
  • No impact related to acquisitions or material new partnership agreements not already disclosed.

Third Quarter of 2019 Outlook:

For the third quarter, the Company is expecting adjusted net income per diluted share to be in the range of $3.00 to $3.10.

_______________________________________
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.

Conference Call

The Company will host a conference call to discuss second 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, investor relations. The conference call can be accessed live over the phone by dialing (877) 407-0784, or for international callers (201) 689-8560. 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 13692618. The replay will be available until Tuesday, August 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, (c) other non-recurring items, including the impact of the Tax Act, impairment charges, 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 stock 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 stock 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 June 30,

 

Six Months Ended June 30,

2019

 

20181

 

2019

 

20181

 
Revenues, net

$

647,094

 

$

584,985

 

$

1,268,919

 

$

1,170,484

 

 
Expenses:
Processing

 

120,458

 

 

111,201

 

 

249,572

 

 

227,686

 

Selling

 

51,856

 

 

44,009

 

 

101,117

 

 

91,120

 

General and administrative

 

106,784

 

 

96,431

 

 

199,568

 

 

186,800

 

Depreciation and amortization

 

70,908

 

 

68,610

 

 

138,353

 

 

140,112

 

Other operating, net

 

(229

)

 

(49

)

 

(1,184

)

 

(104

)

Operating income

 

297,317

 

 

264,783

 

 

581,493

 

 

524,870

 

Investment loss

 

-

 

 

-

 

 

15,660

 

 

-

 

Other expense, net

 

528

 

 

458

 

 

748

 

 

161

 

Interest expense, net

 

39,529

 

 

33,150

 

 

78,584

 

 

64,215

 

Total other expense

 

40,057

 

 

33,608

 

 

94,992

 

 

64,376

 

Income before income taxes

 

257,260

 

 

231,175

 

 

486,501

 

 

460,494

 

(Benefit from) provision for income taxes

 

(4,391

)

 

54,323

 

 

52,743

 

 

108,705

 

Net income

$

261,651

 

$

176,852

 

$

433,758

 

$

351,789

 

 
Basic earnings per share

$

3.03

 

$

1.98

 

$

5.03

 

$

3.93

 

Diluted earnings per share

$

2.90

 

$

1.91

 

$

4.84

 

$

3.78

 

 
Weighted average shares outstanding:
Basic shares

 

86,360

 

 

89,169

 

 

86,159

 

 

89,466

 

Diluted shares

 

90,131

 

 

92,702

 

 

89,694

 

 

92,970

 

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)

June 30, 20191

December 31, 2018

(Unaudited)

Assets
 
Current assets:
Cash and cash equivalents

$

1,170,339

 

$

1,031,145

 

Restricted cash

 

318,287

 

 

333,748

 

Accounts and other receivables (less allowance for doubtful accounts of $68,334 at June 30, 2019 and $59,963 at December 31, 2018, respectively)

 

1,727,183

 

 

1,425,815

 

Securitized accounts receivable - restricted for securitization investors

 

974,000

 

 

886,000

 

Prepaid expenses and other current assets

 

196,549

 

 

199,278

 

 
Total current assets

 

4,386,358

 

 

3,875,986

 

 
Property and equipment, net

 

190,215

 

 

186,201

 

Goodwill

 

4,720,471

 

 

4,542,074

 

Other intangibles, net

 

2,417,188

 

 

2,407,910

 

Investments

 

26,635

 

 

42,674

 

Other assets

 

234,725

 

 

147,632

 

 
Total assets

$

11,975,592

 

$

11,202,477

 

 
Liabilities and Stockholders’ Equity
 
Current liabilities:
Accounts payable

$

1,523,862

 

$

1,117,649

 

Accrued expenses

 

269,913

 

 

261,594

 

Customer deposits

 

870,217

 

 

926,685

 

Securitization facility

 

974,000

 

 

886,000

 

Current portion of notes payable and lines of credit

 

958,394

 

 

1,184,616

 

Other current liabilities

 

152,824

 

 

118,669

 

 
Total current liabilities

 

4,749,210

 

 

4,495,213

 

 
Notes payable and other obligations, less current portion

 

2,676,374

 

 

2,748,431

 

Deferred income taxes

 

452,113

 

 

491,946

 

Other noncurrent liabilities

 

254,523

 

 

126,707

 

 
Total noncurrent liabilities

 

3,383,010

 

 

3,367,084

 

 
Commitments and contingencies
 
Stockholders’ equity:
Common stock, $0.001 par value; 475,000,000 shares authorized; 123,754,485 shares issued and 86,535,000 shares outstanding at June 30, 2019; and 123,035,859 shares issued and 85,845,344 shares outstanding at December 31, 2018

 

123

 

 

123

 

Additional paid-in capital

 

2,427,640

 

 

2,306,843

 

Retained earnings

 

4,251,414

 

 

3,817,656

 

Accumulated other comprehensive loss

 

(928,197

)

 

(913,858

)

Less treasury stock, 37,219,485 shares at June 30, 2019 and 37,190,515 shares at December 31, 2018

 

(1,907,608

)

 

(1,870,584

)

 
Total stockholders’ equity

 

3,843,372

 

 

3,340,180

 

 
Total liabilities and stockholders’ equity

$

11,975,592

 

$

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)

Six Months Ended June 30,

20191

2018

 
Operating activities
Net income

$

433,758

 

$

351,789

 

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

 

30,640

 

 

25,033

 

Stock-based compensation

 

30,847

 

 

33,505

 

Provision for losses on accounts receivable

 

40,142

 

 

26,495

 

Amortization of deferred financing costs and discounts

 

2,428

 

 

2,678

 

Amortization of intangible assets and premium on receivables

 

107,713

 

 

115,079

 

Deferred income taxes

 

(64,883

)

 

(6,473

)

Investment loss

 

15,660

 

 

-

 

Other non-cash operating income

 

(1,579

)

 

(104

)

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

 

(418,806

)

 

(519,527

)

Prepaid expenses and other current assets

 

8,154

 

 

(20,440

)

Other assets

 

(17,286

)

 

(15,418

)

Accounts payable, accrued expenses and customer deposits

 

383,233

 

 

282,472

 

Net cash provided by operating activities

 

550,021

 

 

275,089

 

 
 
Investing activities
Acquisitions, net of cash acquired

 

(250,926

)

 

(3,811

)

Purchases of property and equipment

 

(31,975

)

 

(34,614

)

Other

 

-

 

 

(11,192

)

Net cash used in investing activities

 

(282,901

)

 

(49,617

)

 
 
Financing activities
Proceeds from issuance of common stock

 

56,950

 

 

29,498

 

Repurchase of common stock

 

(4,024

)

 

(380,651

)

Borrowings on securitization facility, net

 

88,000

 

 

128,000

 

Deferred financing costs paid and debt discount

 

(352

)

 

-

 

Principal payments on notes payable

 

(64,875

)

 

(69,000

)

Borrowings from revolver

 

765,709

 

 

774,019

 

Payments on revolver

 

(1,027,468

)

 

(600,109

)

Borrowings on swing line of credit, net

 

34,639

 

 

13,632

 

Other

 

(125

)

 

(149

)

Net cash used in financing activities

 

(151,546

)

 

(104,760

)

 
Effect of foreign currency exchange rates on cash

 

8,159

 

 

(66,144

)

 
Net increase in cash and cash equivalents and restricted cash

 

123,733

 

 

54,568

 

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

$

1,488,626

 

$

1,185,438

 

 
Supplemental cash flow information
Cash paid for interest

$

90,559

 

$

73,303

 

 
Cash paid for income taxes

$

100,396

 

$

112,982

 

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 June 30,

 

Six Months Ended June 30,

2019

 

2018

 

2019

 

2018

Net income

$

261,651

 

$

176,852

 

$

433,758

 

$

351,789

 

 
Stock based compensation

 

18,306

 

 

19,102

 

 

30,847

 

 

33,505

 

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

 

56,623

 

 

57,313

 

 

110,141

 

 

117,757

 

Impairment of investment

 

-

 

 

-

 

 

15,660

 

 

-

 

Legal settlements

 

3,474

 

 

-

 

 

3,474

 

 

-

 

Restructuring costs

 

-

 

 

1,506

 

 

-

 

 

3,435

 

Unauthorized access impact

 

-

 

 

1,743

 

 

-

 

 

1,743

 

Total pre-tax adjustments

 

78,403

 

 

79,664

 

 

160,122

 

 

156,441

 

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

 

(18,435

)

 

(18,720

)

 

(33,846

)

 

(36,927

)

Impact of investment sale on tax 2

 

(64,880

)

 

-

 

 

(64,880

)

 

-

 

 
Adjusted net income

$

256,739

 

$

237,796

 

$

495,154

 

$

471,302

 

Adjusted net income per diluted share

$

2.85

 

$

2.57

 

$

5.52

 

$

5.07

 

 
Diluted shares

 

90,131

 

 

92,702

 

 

89,694

 

 

92,970

 

 
 
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.
2 Represents the impact to taxes from the disposition of our investment in Masternaut.
* 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 June 30,

 

Three Months Ended June 30,

2019

 

2018

 

Change

 

% Change

 

2019

 

2018

 

Change

 

% Change

 
FUEL
- Revenues, net1

$

295.1

 

$

278.1

 

$

17.0

 

6

%

$

290.9

 

$

267.8

 

$

23.1

 

9

%

- Transactions1

 

125.3

 

 

129.4

 

 

(4.1

)

(3

%)

 

124.5

 

 

124.9

 

 

(0.3

)

(0

%)

- Revenues, net per transaction

$

2.36

 

$

2.15

 

$

0.21

 

10

%

$

2.34

 

$

2.14

 

$

0.19

 

9

%

 
CORPORATE PAYMENTS
- Revenues, net

$

127.1

 

$

99.6

 

$

27.5

 

28

%

$

128.5

 

$

102.3

 

$

26.2

 

26

%

- Transactions

 

14.5

 

 

11.8

 

 

2.7

 

23

%

 

14.5

 

 

12.0

 

 

2.5

 

21

%

- Revenues, net per transaction

$

8.78

 

$

8.44

 

$

0.35

 

4

%

$

8.88

 

$

8.55

 

$

0.33

 

4

%

- Spend volume4

$

19,780

 

$

13,778

 

$

6,002

 

44

%

$

20,167

 

$

13,778

 

$

6,389

 

46

%

- Revenues, net per spend $

 

0.64

%

 

0.72

%

 

(0.08

%)

(11

%)

 

0.64

%

 

0.74

%

 

(0.10

%)

(14

%)

 
TOLLS
- Revenues, net1

$

86.2

 

$

80.1

 

$

6.1

 

8

%

$

94.0

 

$

80.1

 

$

13.9

 

17

%

- Tags (average monthly)5

 

5.0

 

 

4.7

 

 

0.3

 

7

%

 

5.0

 

 

4.7

 

 

0.3

 

7

%

- Revenues, net per tag

$

17.08

 

$

17.05

 

$

0.03

 

0

%

$

18.63

 

$

17.05

 

$

1.57

 

9

%

 
LODGING
- Revenues, net

$

50.2

 

$

44.6

 

$

5.6

 

13

%

$

50.2

 

$

44.6

 

$

5.6

 

13

%

- Room nights

 

4.3

 

 

4.7

 

 

(0.5

)

(10

%)

 

4.3

 

 

4.7

 

 

(0.5

)

(10

%)

- Revenues, net per room night

$

11.75

 

$

9.40

 

$

2.35

 

25

%

$

11.75

 

$

9.40

 

$

2.35

 

25

%

 
GIFT
- Revenues, net

$

35.7

 

$

33.3

 

$

2.4

 

7

%

$

35.7

 

$

34.8

 

$

0.9

 

2

%

- Transactions

 

284.1

 

 

324.5

 

 

(40.3

)

(12

%)

 

284.1

 

 

324.7

 

 

(40.6

)

(13

%)

- Revenues, net per transaction

$

0.13

 

$

0.10

 

$

0.02

 

22

%

$

0.13

 

$

0.11

 

$

0.02

 

17

%

 
OTHER2
- Revenues, net1

$

52.7

 

$

49.2

 

$

3.6

 

7

%

$

54.4

 

$

50.2

 

$

4.2

 

8

%

- Transactions1

 

12.3

 

 

12.1

 

 

0.1

 

1

%

 

12.3

 

 

12.1

 

 

0.1

 

1

%

- Revenues, net per transaction

$

4.30

 

$

4.06

 

$

0.24

 

6

%

$

4.44

 

$

4.15

 

$

0.29

 

7

%

 
 
FLEETCOR CONSOLIDATED REVENUES
- Revenues, net

$

647.1

 

$

585.0

 

$

62.1

 

11

%

$

653.8

 

$

579.8

 

$

73.9

 

13

%

 
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 third and fourth quarters of 2018 was $13,816.8 million and $14,750.6 million, respectively.
5 Toll tags in the third and fourth quarters of 2018 were 4.7 million and 4.8 million, respectively.
* Columns may not calculate due to rounding.
Exhibit 3
Revenues by Geography and Product
(In millions)
(Unaudited)
 
Revenue by Geography*

Three Months Ended June 30,

 

Six Months Ended June 30,

2019

 

%

 

2018

 

%

 

2019

 

%

 

2018

 

%

 
US

$

389

60

%

$

348

59

%

$

760

60

%

$

691

59

%

Brazil

 

103

16

%

 

96

16

%

 

209

16

%

 

203

17

%

UK

 

70

11

%

 

65

11

%

 

137

11

%

 

130

11

%

Other

 

85

13

%

 

76

13

%

 

163

13

%

 

146

12

%

 
Consolidated Revenues, net

$

647

100

%

$

585

100

%

$

1,269

100

%

$

1,170

100

%

* Columns may not calculate due to rounding.
 
Revenue by Product Category*

Three Months Ended June 30,

Six Months Ended June 30,

2019

%

20181

%

2019

%

20181

%

 
Fuel

$

295

45

%

$

278

48

%

$

578

46

%

$

543

46

%

Corporate Payments

 

127

20

%

 

100

17

%

 

238

19

%

 

194

17

%

Tolls

 

86

13

%

 

80

14

%

 

175

14

%

 

170

14

%

Lodging

 

50

8

%

 

45

8

%

 

92

7

%

 

84

7

%

Gift

 

36

6

%

 

33

6

%

 

84

7

%

 

82

7

%

Other

 

53

8

%

 

49

8

%

 

102

8

%

 

97

8

%

 
Consolidated Revenues, net

$

647

100

%

$

585

100

%

$

1,269

100

%

$

1,170

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 Results
(In thousands)
(Unaudited)
 

Three Months Ended June 30,

 

Six Months Ended June 30,

2019

 

2018

 

2019

 

2018

 
Revenues, net:
North America

$

417,941

 

$

370,949

 

$

814,840

 

$

735,218

 

International

 

229,153

 

 

214,036

 

 

454,079

 

 

435,266

 

$

647,094

 

$

584,985

 

$

1,268,919

 

$

1,170,484

 

 
Operating income:
North America

$

184,198

 

$

161,376

 

$

356,609

 

$

317,326

 

International

 

113,119

 

 

103,407

 

 

224,884

 

 

207,544

 

$

297,317

 

$

264,783

 

$

581,493

 

$

524,870

 

 
Depreciation and amortization:
North America

$

41,875

 

$

38,317

 

$

80,167

 

$

76,992

 

International

 

29,033

 

 

30,293

 

 

58,186

 

 

63,120

 

$

70,908

 

$

68,610

 

$

138,353

 

$

140,112

 

 
Capital expenditures:
North America

$

11,306

 

$

11,685

 

$

19,683

 

$

20,096

 

International

 

6,164

 

 

7,715

 

 

12,292

 

 

14,518

 

$

17,470

 

$

19,400

 

$

31,975

 

$

34,614

 

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 June 30,

 

 

Three Months Ended June 30,

2019*

 

2018*

 

 

2019*

 

2018*

FUEL-TRANSACTIONS
Pro forma and macro adjusted

$

290.9

 

$

267.8

 

124.5

 

124.9

 

Impact of acquisitions/dispositions/Uber

 

3.8

 

 

10.3

 

0.7

 

4.5

 

Impact of fuel prices/spread

 

6.5

 

 

-

 

-

 

-

 

Impact of foreign exchange rates

 

(6.1

)

 

-

 

-

 

-

 

As reported

$

295.1

 

$

278.1

 

125.3

 

129.4

 

CORPORATE PAYMENTS- TRANSACTIONS
Pro forma and macro adjusted

$

128.5

 

$

102.3

 

14.5

 

12.0

 

Impact of acquisitions/dispositions

 

-

 

 

(2.6

)

-

 

(0.1

)

Impact of fuel prices/spread

 

-

 

 

-

 

-

 

-

 

Impact of foreign exchange rates

 

(1.4

)

 

-

 

-

 

-

 

As reported

$

127.1

 

$

99.6

 

14.5

 

11.8

 

CORPORATE PAYMENTS- SPEND
Pro forma and macro adjusted

Intentionally Left Blank

20,166.7

 

13,778.1

 

Impact of acquisitions/dispositions

-

 

-

 

Impact of fuel prices/spread

-

 

-

 

Impact of foreign exchange rates

(386.7

)

-

 

As reported

19,780.1

 

13,778.1

 

TOLLS- TAGS
Pro forma and macro adjusted

$

94.0

 

$

80.1

 

5.0

 

4.7

 

Impact of acquisitions/dispositions

 

-

 

 

-

 

-

 

-

 

Impact of fuel prices/spread

 

-

 

 

-

 

-

 

-

 

Impact of foreign exchange rates

 

(7.8

)

 

-

 

-

 

-

 

As reported

$

86.2

 

$

80.1

 

5.0

 

4.7

 

LODGING- ROOM NIGHTS
Pro forma and macro adjusted

$

50.2

 

$

44.6

 

4.3

 

4.7

 

Impact of acquisitions/dispositions

 

-

 

 

-

 

-

 

-

 

Impact of fuel prices/spread

 

-

 

 

-

 

-

 

-

 

Impact of foreign exchange rates

 

-

 

 

-

 

-

 

-

 

As reported

$

50.2

 

$

44.6

 

4.3

 

4.7

 

GIFT- TRANSACTIONS
Pro forma and macro adjusted

$

35.7

 

$

34.8

 

284.1

 

324.7

 

Impact of acquisitions/dispositions

 

-

 

 

(1.5

)

-

 

(0.3

)

Impact of fuel prices/spread

 

-

 

 

-

 

-

 

-

 

Impact of foreign exchange rates

 

-

 

 

-

 

-

 

-

 

As reported

$

35.7

 

$

33.3

 

284.1

 

324.5

 

OTHER1- TRANSACTIONS
Pro forma and macro adjusted

$

54.4

 

$

50.2

 

12.3

 

12.1

 

Impact of acquisitions/dispositions

 

-

 

 

(1.1

)

-

 

-

 

Impact of fuel prices/spread

 

-

 

 

-

 

-

 

-

 

Impact of foreign exchange rates

 

(1.7

)

 

-

 

-

 

-

 

As reported

$

52.7

 

$

49.2

 

12.3

 

12.1

 

FLEETCOR CONSOLIDATED REVENUES
Pro forma and macro adjusted

$

653.8

 

$

579.8

 

Intentionally Left Blank

Impact of acquisitions/dispositions

 

3.8

 

 

5.1

 

Impact of fuel prices/spread

 

6.5

 

 

-

 

Impact of foreign exchange rates

 

(17.0

)

 

-

 

As reported

$

647.1

 

$

585.0

 

* 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 tables reconcile third quarter and 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.
 

Q3 2019 GUIDANCE

Low*

 

High*

Net income

$

215

 

$

225

 

Net income per diluted share

$

2.37

 

$

2.48

 

 
Stock based compensation

 

17

 

 

17

 

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

 

57

 

 

57

 

Total pre-tax adjustments

 

74

 

 

74

 

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

 

(18

)

 

(18

)

Adjusted net income

$

270

 

$

280

 

Adjusted net income per diluted share

 

3.00

 

$

3.10

 

 
Diluted shares

 

91

 

 

91

 

 

2019 GUIDANCE

Low*

High*

Net income

$

865

 

$

895

 

Net income per diluted share

$

9.60

 

$

9.90

 

 
Stock based compensation

 

65

 

 

65

 

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

 

222

 

 

222

 

Impairment of investment

 

16

 

 

16

 

Other

 

4

 

 

4

 

Total pre-tax adjustments

 

307

 

 

307

 

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

 

(67

)

 

(67

)

Impact of investment sale on tax

 

(65

)

 

(65

)

Adjusted net income

$

1,040

 

$

1,070

 

Adjusted net income per diluted share

$

11.53

 

$

11.83

 

 
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