Press Releases

FLEETCOR Reports Fourth Quarter and Fiscal-Year 2016 Financial Results

February 8, 2017 at 4:15 PM EST

NORCROSS, Ga.--( )--FLEETCOR Technologies, Inc. (NYSE:FLT), a leading global provider of fuel cards and workforce payment products to businesses, today reported financial results for its fourth quarter and year ended December 31, 2016.

 

"Q4 revenue and adjusted net income per share finished above the high end of our guidance range, and Q4 new sales bookings recovered quite nicely," said Ron Clarke, chairman and chief executive officer, FLEETCOR Technologies, Inc. "We are expecting 2017 to be a great year, with organic revenue growth accelerating to 10%, and adjusted net income projected to grow 19%, at the mid-point of the guidance range."

Financial Results for Fourth Quarter of 2016:

GAAP Results

  • Total revenues increased 20% to $515.0 million in the fourth quarter of 2016 compared to $430.6 million in the fourth quarter of 2015.
  • GAAP net income increased 81% to $95.4 million in the fourth quarter of 2016 compared to $52.8 million in the fourth quarter of 2015. Included in fourth quarter of 2016 and 2015 were non-cash impairment charges related to our minority investment in Masternaut of $36 million and $40 million, respectively. Also, included in GAAP net income was non-cash stock based compensation expense of $13.9 million and $45.7 million in the fourth quarter of 2016 and 2015, respectively.
  • GAAP net income per diluted share increased 79% to $1.00 in the fourth quarter of 2016 compared to $0.56 per diluted share in the fourth quarter of 2015.

Non-GAAP Results 1

  • Adjusted revenues 1 (revenues, net less merchant commissions) increased 21% to $489.4 million in the fourth quarter of 2016 compared to $403.1 million in the fourth quarter of 2015.
  • Adjusted net income 1 increased 13% to $180.5 million in the fourth quarter of 2016 compared to $160.2 million in the fourth quarter of 2015.
  • Adjusted net income per diluted share 1 increased 12% to $1.90 in the fourth quarter of 2016 compared to $1.70 in the fourth quarter of 2015.

Financial Results for Fiscal-Year 2016:

GAAP Results

  • Total revenues increased 8% to $1,831.5 million in 2016 compared to $1,702.9 million in 2015.
  • GAAP net income increased 25% to $452.4 million in 2016 compared to $362.4 million in 2015. Included in 2016 and 2015 were non-cash impairment charges related to our minority investment in Masternaut of $36 million and $40 million, respectively. Also, included in GAAP net income was non-cash stock based compensation expense for 2016 and 2015 of $64 million and $90 million, respectively.
  • GAAP net income per diluted share increased 23% to $4.75 in 2016 compared to $3.85 per diluted share in 2015.

Non-GAAP Results 1

  • Adjusted revenues 1 (revenues, net less merchant commissions) increased 8% to $1,727.2 million in 2016 compared to $1,594.6 million in 2015.
  • Adjusted net income 1 increased 11% to $659.2 million in 2016 compared to $592.6 million in 2015.
  • Adjusted net income per diluted share 1 increased 10% to $6.92 in 2016 compared to $6.30 in 2015.

Fiscal-Year 2017 Outlook:

"In 2017, we expect that the macro-economic environment will finally turn around, and positively impact revenue by approximately $30 million, and adjusted net income per share by $0.12. However, higher projected interest rates and an unfavorable tax comparison to 2016 will more than offset the favorable macro, and result in a net unfavorable impact to adjusted net income per share of approximately $0.12," said Eric Dey, chief financial officer FLEETCOR Technologies, Inc.

For 2017, FLEETCOR Technologies, Inc. financial guidance and assumptions are as follows:

  • Total revenues between $2,170 million and $2,230 million;
  • GAAP net income between $550 million and $570 million;
  • GAAP net income per diluted share between $5.78 and $5.98;
  • Adjusted net income between $770 million and $790 million; and
  • Adjusted net income per diluted share 1 between $8.10 and $8.30.

FLEETCOR's guidance assumptions for 2017 are as follows:

  • Weighted fuel prices equal to $2.43 per gallon average in the U.S. for those businesses sensitive to the movement in the retail price of fuel for 2017 compared to $2.15 per gallon average in the U.S. in 2016, up approximately 13%.
  • Market spreads returning closer to historical levels, up slightly from the 2016 average.
  • Foreign exchange rates equal to the seven day average ended January 22, 2017.
  • Interest expense of $100 million compared to $72 million in 2016.
  • Fully diluted shares outstanding of 95 million shares.
  • Full year tax rate of approximately 29.5% for 2017 compared to 28.0% in 2016, excluding losses from our equity method investment.
  • 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 Exhibit 2-3 and segment information is provided in Exhibit 4. A reconciliation of GAAP guidance to non-GAAP guidance is provided in Exhibit 5.
 

FLEETCOR's guidance assumption for the first quarter of 2017:

For those of you that are looking for guidance for the first quarter, the business has some seasonality and typically the first quarter is the lowest in terms of both revenue and profit. First quarter seasonality is impacted by weather, holidays in the U.S., and lower business levels in Brazil, due to summer break and the Carnival celebration that occurs in the first quarter.

With that said, the Company is expecting first quarter adjusted net income per diluted share to be between $1.82 and $1.88. Additionally, volumes will build throughout the year, and new asset initiatives are also expected to gain momentum throughout the year resulting in higher organic growth rates and earnings per share in the second through fourth quarters.

FLEETCOR Metrics

FLEETCOR is providing a new set of metrics some of which are included in today's press release. The new metrics are as follows:

  • Revenue by geography
  • Revenue by product category
  • Major sources of revenue
  • Revenue per transaction by product category

Preliminary unaudited statements of income for the three and 12 months periods ended December 31, 2016 and balance sheets as of December 31, 2016 accompany this press release. Statements of cashflows will be provided in the Company's 10-K which will be filed at a later date.

Conference Call

The company will host a conference call to discuss fourth quarter and fiscal-year 2016 financial results today at 5:00pm ET. Hosting the call will be Ron Clarke, chief executive officer, and Eric Dey, chief financial officer. 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 13653942. The replay will be available until February 15, 2017. The call will be webcast live from the company's investor relations website at investor.fleetcor.com .

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 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 macro- economic conditions 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 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 offerings; failure to maintain or renew sources of financing; failure to complete, or delays in completing, anticipated new partnership arrangements or acquisitions and the failure to successfully integrate or otherwise achieve anticipated benefits from such partnerships or acquired businesses; failure to successfully expand business internationally, 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, 2015, filed with the Securities and Exchange Commission on February 29, 2016. FLEETCOR believes these forward-looking statements are reasonable; however, 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 or to publicly announce the results of any revisions to any of such statements to reflect future events or developments.

About Non-GAAP Financial Measures

Adjusted revenue is calculated as revenues, net less merchant commissions. 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, (c) amortization of the premium recognized on the purchase of receivables, (d) our proportionate share of amortization of intangible assets at our equity method investment, (e) a non-recurring net gain at our equity method investment and (f) impairment of our equity method investment. The Company uses adjusted revenue's as a basis to evaluate the Company's revenues, net of the commissions that are paid to merchants to participate in our card programs. The commissions paid to merchants can vary when market spreads fluctuate in much the same way as revenues are impacted when market spreads fluctuate. The Company believes this is a more effective way to evaluate the company's revenue performance. We prepare adjusted net income to eliminate the effect of items that we do not consider indicative of our core operating performance. Adjusted revenues and adjusted net income are supplemental measures of operating performance that do not represent and should not be considered as an alternative to revenues, net, 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 and impairment charges do not necessarily reflect how our equity method investment and business is performing. Reconciliations of GAAP results to non-GAAP results are provided in the attached exhibit 1. A reconciliation of GAAP to non-GAAP guidance is provided in the attached exhibit 5.

Management uses adjusted revenues and adjusted net income:

  • 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.

We believe adjusted revenues, 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 is a leading global provider of fuel cards and workforce payment products to businesses. FLEETCOR's payment programs enable businesses to better control employee spending and provide card-accepting merchants with a high volume customer base that can increase their sales and customer loyalty. FLEETCOR serves commercial accounts in North America, Latin America, Europe, and Australia/New Zealand. 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 December 31,   Year Ended December 31,
   

2016 1

  2015  

2016 1

  2015
                 
Revenues, net   $ 514,953     $ 430,601     $ 1,831,546     $ 1,702,865  
                 
Expenses:                
Merchant commissions     25,590       27,480       104,345       108,257  
Processing     98,676       84,194       355,414       331,073  
Selling     38,763       28,064       131,443       109,075  
General and administrative     74,541       100,938       283,625       297,715  
Depreciation and amortization     61,408       48,018       203,256       193,453  
Other operating, net     -       (4,242 )     (690 )     (4,242 )
Operating income     215,975       146,149       754,153       667,534  
Equity method investment loss     38,603       43,742       36,356       57,668  
Other expense, net     1,926       178       2,982       2,523  
Interest expense, net     21,991       16,521       71,896       71,339  
Total other expense     62,520       60,441       111,234       131,530  
Income before income taxes     153,455       85,708       642,919       536,004  
Provision for income taxes     58,031       32,878       190,534       173,573  
Net income   $ 95,424     $ 52,830     $ 452,385     $ 362,431  
                 
Basic earnings per share   $ 1.03     $ 0.57     $ 4.89     $ 3.94  
Diluted earnings per share   $ 1.00     $ 0.56     $ 4.75     $ 3.85  
                 
Weighted average shares outstanding:                
Basic shares     92,574       92,321       92,597       92,023  
Diluted shares     95,235       94,350       95,213       94,139  
                 
1 Reflects the impact of the Company's adoption of Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , to simplify several aspects of the accounting for share-based compensation, including the income tax consequences.
         
FleetCor Technologies, Inc. and subsidiaries
Consolidated Balance Sheets
(In thousands, except share and par value amounts)
    December 31, 2016   December 31, 2015
    (Unaudited)    
Assets        
         
Current assets:        
Cash and cash equivalents   $ 475,018     $ 447,152  
Restricted cash     168,752       167,492  

Accounts and other receivables (less allowance for doubtful accounts of $32,506 and
$21,903, at December 31, 2016 and 2015, respectively)

    1,202,009       638,954  
Securitized accounts receivable - restricted for securitization investors     591,000       614,000  
Prepaid expenses and other current assets     79,565       68,113  
Deferred income taxes     -       8,913  
         
Total current assets     2,516,344       1,944,624  
         
Property and equipment     253,361       163,569  
Less accumulated depreciation and amortization     (110,857 )     (82,809 )
         
Net property and equipment     142,504       80,760  
         
Goodwill     4,171,964       3,546,034  
Other intangibles, net     2,653,233       2,183,595  
Equity method investment     36,200       76,568  
Other assets     70,531       58,225  
         
Total assets   $ 9,590,776     $ 7,889,806  
         
Liabilities and Stockholders' Equity        
         
Current liabilities:        
Accounts payable   $ 1,151,432     $ 669,528  
Accrued expenses     218,543       150,677  
Customer deposits     530,787       507,233  
Securitization facility     591,000       614,000  
Current portion of notes payable and other obligations     745,506       261,100  
Other current liabilities     38,781       44,936  
         
Total current liabilities     3,276,049       2,247,474  
         
Notes payable and other obligations, less current portion     2,521,727       2,059,900  
Deferred income taxes     660,320       713,428  
Other noncurrent liabilities     48,642       38,957  
         
Total noncurrent liabilities     3,230,689       2,812,285  
         
Commitments and contingencies        
         
Stockholders' equity:        

Common stock, $0.001 par value; 475,000,000 shares authorized, 121,259,960 shares
issued and 91,836,938 shares outstanding at December 31, 2016; and 120,539,041
shares issued and 92,376,335 shares outstanding at December 31, 2015

    121       121  
Additional paid-in capital     2,074,094       1,988,917  
Retained earnings     2,218,721       1,766,336  
Accumulated other comprehensive loss     (666,403 )     (570,811 )
Less treasury stock, 29,423,022 and 28,162,706 shares at December 31, 2016 and 2015, respectively     (542,495 )     (354,516 )
         
Total stockholders' equity     3,084,038       2,830,047  
         
Total liabilities and stockholders' equity   $ 9,590,776     $ 7,889,806  
         
                   
Exhibit 1
RECONCILIATION OF NON-GAAP MEASURES AND PRO FORMA INFORMATION
(In thousands, except shares and per share amounts)
(Unaudited)
                   
The following table reconciles revenues, net to adjusted revenues:                  
                   
    Three Months Ended December 31,     Year Ended December 31,
    2016   2015     2016   2015
                   
Revenues, net   $ 514,953     $ 430,601       $ 1,831,546     $ 1,702,865  
Merchant commissions     25,590       27,480         104,345       108,257  
Total adjusted revenues   $ 489,363     $ 403,121       $ 1,727,201     $ 1,594,608  
                   
                   
The following table reconciles net income to adjusted net income and adjusted net income per diluted share:
                   
    Three Months Ended December 31,     Year Ended December 31,
   

2016 2

  2015    

2016 2

  2015
Net income   $ 95,424     $ 52,830       $ 452,385     $ 362,431  
                   
Stock based compensation     13,921       45,735         63,946       90,122  
Amortization of intangible assets     49,180       39,685         161,635       159,740  
Amortization of premium on receivables     1,478       811         5,165       3,250  
Amortization of deferred financing costs and discounts     2,014       1,754         7,582       7,049  
Amortization of intangibles at equity method investment     2,560       2,261         10,093       10,665  
Non recurring net gain at equity method investment     -       -         (10,845 )     -  
Impairment of equity method investment     36,065       40,000         36,065       40,000  
                   
Total pre-tax adjustments     105,218       130,246         273,641       310,826  
                   
Income tax impact of pre-tax adjustments at the effective tax rate 3     (20,121 )     (22,874 )

1

    (66,850 )     (80,632 )
                   
Adjusted net income   $ 180,521     $ 160,201       $ 659,176     $ 592,625  
Adjusted net income per diluted share   $ 1.90     $ 1.70       $ 6.92     $ 6.30  
                   
Diluted shares     95,235       94,350         95,213       94,139  
                   
1 Effective tax rate utilized excludes the impact of a one time tax benefit recognized during the three months and year ended December 31, 2015 of approximately $0.8 million, as well as adjustments related to our equity method investment for all periods presented.
 
2 Reflects the impact of the Company's adoption of Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , to simplify several aspects of the accounting for share-based compensation, including the income tax consequences.
 
3 Excludes the results of our equity method investment on our effective tax rate, as results from our equity method investment are reported within the Consolidated Income Statements on a post-tax basis and no tax-over-book outside basis differences related to our equity method investment reversed during 2016.
                                     
Exhibit 2
Transaction Volume, Revenues and Adjusted Revenue, Per Transaction by Segment and by Product Category
(In millions except revenues, net per transaction and adjusted revenues per transaction)
(Unaudited)
                                     
The following table presents revenue and revenue per transaction, by segment.
                                     
    Three Months Ended December 31,       Year Ended December 31,
    2016   2015   Change   % Change       2016   2015   Change   % Change
                                     

NORTH AMERICA

                                   
- Transactions 2     501.5     522.3     (20.8 )   -4.0 %         1,718.7     1,667.5     51.2     3.1 %
- Revenues, net per transaction   $ 0.66   $ 0.60   $ 0.05     9.1 %       $ 0.74   $ 0.74   $ 0.01     0.7 %
- Revenues, net   $ 328.6   $ 313.6   $ 14.9     4.8 %       $ 1,279.1   $ 1,232.0   $ 47.1     3.8 %
                                     

INTERNATIONAL

                                   
- Transactions     274.4     45.8     228.6     499.0 %         507.8     183.9     323.9     176.2 %
- Revenues, net per transaction   $ 0.68   $ 2.55   $ (1.87 )   -73.4 %       $ 1.09   $ 2.56   $ (1.47 )   -57.5 %
- Revenues, net   $ 186.4   $ 117.0   $ 69.4     59.3 %       $ 552.4   $ 470.9   $ 81.5     17.3 %
                                     
                                     

FLEETCOR CONSOLIDATED REVENUES

                                   
- Transactions 2     775.9     568.1     207.8     36.6 %         2,226.5     1,851.4     375.1     20.3 %
- Revenues, net per transaction   $ 0.66   $ 0.76   $ (0.09 )   -12.4 %       $ 0.82   $ 0.92   $ (0.10 )   -10.6 %
- Revenues, net   $ 515.0   $ 430.6   $ 84.4     19.6 %       $ 1,831.5   $ 1,702.9   $ 128.7     7.6 %
                                     
                                     
                                     

FLEETCOR CONSOLIDATED ADJUSTED REVENUES 1

                               
- Transactions 2     775.9     568.1     207.8     36.6 %         2,226.5     1,851.4     375.1     20.3 %
- Adjusted revenues per transaction   $ 0.63   $ 0.71   $ (0.08 )   -11.1 %       $ 0.78   $ 0.86   $ (0.09 )   -9.9 %
- Adjusted revenues   $ 489.4   $ 403.1   $ 86.2     21.4 %       $ 1,727.2   $ 1,594.6   $ 132.6     8.3 %
                                     
                                     

1 Adjusted revenues is a non-GAAP financial measure defined as revenues, net less merchant commissions.
The Company believes this measure is a more effective way to evaluate the Company's revenue performance.
Refer to Exhibit 1 for a reconciliation of revenues, net to adjusted revenues.

 

2 Includes approximately 403 million and 429 million transactions for the three months ended December 31, 2016 and 2015,
respectively, and 1,327 million and 1,300 million for the years ended December 31, 2016 and 2015, respectively,
related to our SVS business acquired with Comdata in the fourth quarter of 2014.

                                     
The following table presents revenue and revenue per transaction, by product category.
                                     
    Year Ended December 31,                    
    2016   2015   Change   % Change                    
                                     

FUEL CARDS

                                   
- Transactions     502.5     473.0     29.5     6.2 %                    
- Revenues, net per transaction   $ 2.24   $ 2.36   $ (0.12 )   -5.1 %                    
- Revenues, net   $ 1,124.2   $ 1,115.6   $ 8.7     0.8 %                    
                                     

GIFT

                                   
- Transactions     1,327.4     1,300.4     27.0     2.1 %                    
- Revenues, net per transaction   $ 0.14   $ 0.13   $ 0.01     6.4 %                    
- Revenues, net   $ 184.7   $ 170.1   $ 14.6     8.6 %                    
                                     

CORPORATE PAYMENTS

                                   
- Transactions     38.7     31.9     6.8     21.3 %                    
- Revenues, net per transaction   $ 4.64   $ 5.09   $ (0.45 )   -8.8 %                    
- Revenues, net   $ 179.6   $ 162.3   $ 17.3     10.6 %                    
                                     

TOLLS

                                   
- Transactions     326.7     12.4     314.2     2528.1 %                    
- Revenues, net per transaction   $ 0.31   $ 0.75   $ (0.44 )   -58.1 %                    
- Revenues, net   $ 102.7   $ 9.3   $ 93.4     1000.4 %                    
                                     

LODGING

                                   
- Transactions     13.3     13.7     (0.4 )   -3.1 %                    
- Revenues, net per transaction   $ 7.58   $ 6.70   $ 0.89     13.2 %                    
- Revenues, net   $ 100.7   $ 91.8   $ 8.9     9.7 %                    
                                     

OTHER 3

                                   
- Transactions     18.0     20.0     (2.0 )   -9.9 %                    
- Revenues, net per transaction   $ 7.76   $ 7.70   $ 0.05     0.7 %                    
- Revenues, net   $ 139.6   $ 153.8   $ (14.2 )   -9.3 %                    
                                     
                                     

FLEETCOR CONSOLIDATED REVENUES

                                   
- Transactions     2,226.5     1,851.4     375.1     20.3 %                    
- Revenues, net per transaction   $ 0.82   $ 0.92   $ (0.10 )   -10.6 %                    
- Revenues, net   $ 1,831.5   $ 1,702.9   $ 128.7     7.6 %                    
                                     
                                     

3 'Other' includes telematics, maintenance and transportation related businesses.

 
                 
Exhibit 3

Revenues by Geography, Product and Source

(In millions)
(Unaudited)
                 

Revenue by Geography*

  Year Ended December 31,
    2016   %   2015   %
                 
US   $ 1,279   70%   $ 1,232   72%
UK     229   13%     248   15%
Brazil     168   9%     85   5%
Other     156   8%     138   8%
                 
Consolidated Revenues, net   $ 1,832   100%   $ 1,703   100%
 

* Columns may not calculate due to impact of rounding.

                 

Revenue by Product Category*

  Year Ended December 31,
    2016   %   2015   %
                 
Fuel Cards   $ 1,124   61%   $ 1,116   66%
Gift     185   10%     170   10%
Corporate Payments     180   10%     162   10%
Tolls     103   6%     9   1%
Lodging     101   5%     92   5%
Other     140   8%     154   9%
                 
Consolidated Revenues, net   $ 1,832   100%   $ 1,703   100%
 

* Columns may not calculate due to impact of rounding.

                 

Major Sources of Revenue*

  Year Ended December 31,
    2016   %   2015   %
Customer                
Processing and Program Fees   $ 904   49%   $ 776   46%
Late Fees and Finance Charges     113   6%     110   6%
Other     30   2%     28   2%
    $ 1,048   57%   $ 914   54%
Merchant                

Interchange (Fuel) 1

  $

278

 

15%

  $

294

 

17%

Interchange (NonFuel) 2

   

173

 

9%

   

162

 

10%

Tied to Fuel-Price Spreads     200   11%     211   12%
Program Fees     133   7%     123   7%
    $ 784   43%   $ 789   46%
                 
Consolidated Revenues, net   $ 1,832   100%   $ 1,703   100%
                     

1 Interchange revenue directly influenced by the absolute price of fuel and other interchange related to fuel products

2 Interchange revenue related to nonfuel products

* Columns may not calculate due to impact of rounding.

 
                 
Exhibit 4
Segment Results
(In thousands)
(Unaudited)
                 
    Three Months Ended December 31,   Year Ended December 31,
    2016   2015   2016   2015
Revenues, net:                
North America   $ 328,560   $ 313,624   $ 1,279,102   $ 1,231,957
International     186,393     116,977     552,444     470,908
    $ 514,953   $ 430,601   $ 1,831,546   $ 1,702,865
                 
Operating income:                
North America   $ 139,192   $ 90,274   $ 506,413   $ 442,052
International     76,783     55,875     247,740     225,482
    $ 215,975   $ 146,149   $ 754,153   $ 667,534
                 
Depreciation and amortization:                
North America   $ 33,302   $ 31,663   $ 129,653   $ 127,863
International     28,106     16,355     73,603     65,590
    $ 61,408   $ 48,018   $ 203,256   $ 193,453
                 
Capital expenditures:                
North America   $ 10,499   $ 5,373   $ 39,000   $ 19,883
International     6,635     6,976     20,011     21,992
    $ 17,134   $ 12,349   $ 59,011   $ 41,875
                 
         
Exhibit 5
RECONCILIATION OF NON-GAAP GUIDANCE MEASURES
(In millions, except per share amounts)
(Unaudited)
         

The following table reconciles 2017 financial guidance for net income to adjusted net income and adjusted net income per diluted share,
at both ends of the range:

    2017 GUIDANCE
    Low*   High*
Net income   $550     $ 570  
Net income per diluted share   $ 5.78     $ 5.98  
         
Stock based compensation     76       76  
Amortization of intangible assets, premium on receivables, deferred financing costs and discounts     221       221  
Amortization of intangibles at equity method investment     10       10  
         
Total pre-tax adjustments     308       308  
         
Income tax impact of pre-tax adjustments at the effective tax rate**     (88 )     (88 )
         
Adjusted net income   $ 770     $ 790  
Adjusted net income per diluted share   $ 8.10     $ 8.30  
         
Diluted shares     95       95  
         
* Columns may not calculate due to impact of rounding.

** Excludes the results of our equity method investment on our effective tax rate, as results from our equity method investment are reported
within the Consolidated Income Statements on a post-tax basis and no tax-over-book outside basis differences related to our equity method
investment are expected to reverse during 2017.

         

The following table reconciles first quarter 2017 financial guidance for net income to adjusted net income and adjusted net income per diluted
share, at both ends of the range:

    Q1 2017 GUIDANCE
    Low*   High*
Net income   $ 118     $ 124  
Net income per diluted share   $ 1.24     $ 1.30  
         
Stock based compensation     19       19  
Amortization of intangible assets, premium on receivables, deferred financing costs and discounts     55       55  
Amortization of intangibles at equity method investment     3       3  
         
Total pre-tax adjustments     77       77  
         
Income tax impact of pre-tax adjustments at the effective tax rate**     (22 )     (22 )
         
Adjusted net income   $ 173     $ 179  
Adjusted net income per diluted share   $ 1.82     $ 1.88  
         
Diluted shares     95       95  
         
* Columns may not calculate due to impact of rounding.
** Excludes the results of our equity method investment on our effective tax rate, as results from our equity method investment are reported within the Consolidated Income Statements on a post-tax basis and no tax-over-book outside basis differences related to our equity method investment are expected to reverse during Q1 2017.