Release Details

FLEETCOR Reports Fourth Quarter and Fiscal Year 2019 Financial Results

February 6, 2020

ATLANTA--(BUSINESS WIRE)--Feb. 6, 2020-- FLEETCOR Technologies, Inc. (NYSE: FLT), a global leader in business payments, today reported financial results for its fourth quarter and year ended December 31, 2019.

“Our fourth quarter finish was quite good. Adjusted net income per diluted share was up 14%, at the high end of our guidance range. Organic revenue growth was 10%, and new sales and client retention trends were positive,” said Ron Clarke, chairman and chief executive officer, FLEETCOR Technologies, Inc. “We like the early set up to 2020 and expect each of our four primary product categories to deliver performance that meets our stated midterm growth targets.”

Financial Results for Fourth Quarter of 2019:

GAAP Results

  • Total revenues increased 9% to $698.9 million in the fourth quarter of 2019, compared to $643.4 million in the fourth quarter of 2018.
  • Net income decreased 22% to $235.5 million in the fourth quarter of 2019, compared to $302.0 million in the fourth quarter of 2018. Included in the fourth quarter of 2019, was a gain of approximately $13 million related to a minority investment and in the fourth quarter of 2018 was a gain of approximately $153 million from the sale of the Chevron portfolio.
  • Net income per diluted share decreased 22% to $2.60 in the fourth quarter of 2019, compared to $3.33 per diluted share in the fourth quarter of 2018. Included in the fourth quarter of 2019, was a gain of approximately $13 million related to a minority investment and in the fourth quarter of 2018 was a gain of approximately $153 million from the sale of the Chevron portfolio.

Non-GAAP Results1

  • Adjusted net income1 increased 14% to $286.4 million in the fourth quarter of 2019, compared to $252.0 million in the fourth quarter of 2018.
  • Adjusted net income per diluted share1 increased 14% to $3.17 in the fourth quarter of 2019, compared to $2.78 per diluted share in the fourth quarter of 2018.

Financial Results for Fiscal Year 2019:

GAAP Results

  • Total revenues increased 9% to $2,648.8 million in 2019, compared to $2,433.5 million in 2018.
  • Net income increased 10% to $895.1 million in 2019, compared to $811.5 million in 2018.
  • Net income per diluted share increased 13% to $9.94 in 2019, compared to $8.81 per diluted share in 2018.

Non-GAAP Results1

  • Adjusted net income1 increased 10% to $1,062.1 million in 2019, compared to $969.8 million in 2018.
  • Adjusted net income per diluted share1 increased 12% to $11.79 in 2019, compared to $10.53 in 2018.

Fiscal Year 2020 Outlook:

“Our outlook for 2020 is for organic revenue growth to be in the 9% to 11% range and adjusted net income to be up approximately 15%. As always there are a number of moving parts to our budget. Some of our assumptions include the continuation of a soft macro-environment, primarily unfavorable foreign exchange rates compared to 2019, mostly in Brazil, and market spreads projected to be slightly worse than the 2019 average. The combined unfavorable revenue impact from these factors is expected to be approximately $20 million in 2020. In addition, we are making incremental investments in sales and IT to help drive future growth,” said Eric Dey, chief financial officer, FLEETCOR Technologies, Inc.

For fiscal year 2020, FLEETCOR Technologies, Inc.’s financial outlook is as follows:

  • Total revenues to be between $2,900 million and $2,960 million;
  • GAAP net income to be between $965 million and $1,005 million;
  • GAAP net income per diluted share to be between $10.80 and $11.20;
  • Adjusted net income to be between $1,190 million and $1,230 million; and
  • Adjusted net income per diluted share to be between $13.35 and $13.75.

FLEETCOR’s outlook assumptions for fiscal year 2020 are as follows:

  • Weighted fuel prices equal to $2.78 per gallon average in the U.S.;
  • Market spreads slightly unfavorable compared to the 2019 average;
  • Foreign exchange rates equal to the 7-day average as of the week ending January 19, 2020;
  • Interest expense between $130 million and $140 million;
  • Approximately 89.5 million fully diluted shares outstanding for 2020;
  • An adjusted tax rate of approximately 20% to 22%; and
  • No impact related to acquisitions or material new partnership agreements not already disclosed.

Fiscal First Quarter of 2020 Outlook:

FLEETCOR experiences 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. Also, the first quarter revenue will be impacted by the divestiture of the Chevron portfolio, which was still transitioning in the first quarter of 2019, an unfavorable macro impact versus prior year, and the net impact of share repurchases and the associated interest expense carry versus prior year. In total, we estimate these items will negatively impact our first quarter net income per diluted share by approximately $0.15 versus the first quarter of 2019.

The Company is expecting first quarter adjusted net income per diluted share to be between $2.90 and $3.001. Additionally, volumes should build throughout the year, and new asset initiatives are also expected to gain momentum throughout the year resulting in higher revenue and earnings per share in the second through fourth quarters.

_______________________________________
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 fourth quarter and fiscal year 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, senior vice president 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 13698073. The replay will be available until Thursday, February 13, 2020. 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 about FLEETCOR's beliefs, expectations and assumptions with respect to the lawsuit filed by the FTC, FLEETCOR’s intentions with respect to challenging such lawsuit and the potential impact of such lawsuit. 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 adverse outcomes with respect to current and future legal proceedings, including, without limitation, the FTC lawsuit, or actions of governmental or quasi-governmental bodies or standards or industry organizations with respect to our payment cards; 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; 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 and subsequent filings made by FLEETCOR with the Securities and Exchange Commission. These forward-looking statements are not a guarantee of performance, and undue reliance should not be placed on such statements. The forward-looking statements included in this press release are made only as of the date hereof, and FLEETCOR does not undertake, and specifically disclaims, any obligation to update any such statements as a result of new information, future events or developments except as specifically stated in this press release or to the extent required by law.

About Non-GAAP Financial Measures:

Adjusted net income is calculated as net income, adjusted to eliminate (a) non-cash stock based compensation expense related to share based compensation awards, (b) amortization of deferred financing costs, discounts and intangible assets, amortization of the premium recognized on the purchase of receivables, and our proportionate share of amortization of intangible assets at our equity method investment, and (c) other non-recurring items, such as the impact of the Tax Act, impairment of investment, asset write-offs, restructuring costs, gains and related taxes due to disposition of assets and a business, loss on extinguishment of debt, legal settlements/litigation, and the unauthorized access impact. We calculate adjusted net income to eliminate the effect of items that we do not consider indicative of our core operating performance. Adjusted net income is a supplemental measure of operating performance that does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by U.S. generally accepted accounting principles, or U.S. GAAP, and our calculation thereof may not be comparable to that reported by other companies. We believe it is useful to exclude non-cash share based compensation expense from adjusted net income because non-cash equity grants made at a certain price and point in time do not necessarily reflect how our business is performing at any particular time and share based compensation expense is not a key measure of our core operating performance. We also believe that amortization expense can vary substantially from company to company and from period to period depending upon their financing and accounting methods, the fair value and average expected life of their acquired intangible assets, their capital structures and the method by which their assets were acquired; therefore, we have excluded amortization expense from our adjusted net income. We also believe one-time non-recurring gains, losses, and impairment charges do not necessarily reflect how our investments and business are performing. Reconciliations of GAAP results to non-GAAP results are provided in the attached exhibit 1. A reconciliation of GAAP to non-GAAP product revenue organic growth calculation is provided in the attached exhibit 5. A reconciliation of GAAP to non-GAAP guidance is provided in the attached exhibit 6.

Management uses adjusted net income:

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

We believe adjusted net income and adjusted net income per diluted share are key measures used by the Company and investors as supplemental measures to evaluate the overall operating performance of companies in our industry. By providing these non-GAAP financial measures, together with reconciliations, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing strategic initiatives.

About FLEETCOR:

FLEETCOR Technologies (NYSE: FLT) is a leading global business payments company that simplifies the way businesses manage and pay their expenses. The FLEETCOR portfolio of brands help companies automate, secure, digitize and control payments to, or on behalf of, their employees and suppliers. FLEETCOR serves businesses, partners and merchants in North America, Latin America, Europe, and Asia Pacific. For more information, please visit www.FLEETCOR.com.

FLEETCOR Technologies, Inc. and Subsidiaries
Consolidated Statements of Income
(In thousands, except per share amounts)
                 
    Three Months Ended December 31,   Year Ended December 31,
   

2019

 

2018

 

2019

 

2018

    (Unaudited)   (Unaudited)   (Unaudited)    
Revenues, net   

 $           698,881

 

 $           643,422

 

 $         2,648,848

 

 $         2,433,492

                 
Expenses:                
   Processing     

              146,081

 

              131,609

 

              530,669

 

              487,695

   Selling     

                51,899

 

                46,667

 

              204,806

 

              182,593

   General and administrative     

              109,592

 

              104,453

 

              407,210

 

              389,172

   Depreciation and amortization     

                68,510

 

                67,230

 

              274,210

 

              274,609

   Other operating, net  

                  2,003

 

                  8,725

 

                    523

 

                  8,725

Operating income   

              320,796

 

              284,738

 

            1,231,430

 

            1,090,698

   Investment (gain) loss, net  

              (12,190)

 

                      -  

 

                  3,470

 

                  7,147

   Other (income) expense, net  

                   (535)

 

             (152,630)

 

                      93

 

             (152,166)

   Interest expense, net  

                34,960

 

                38,207

 

              150,048

 

              138,494

   Loss on extinguishment of debt  

                      -  

 

                  2,098

 

                      -  

 

                  2,098

Total other expense (income)  

                22,235

 

             (112,325)

 

              153,611

 

                (4,427)

Income before income taxes  

              298,561

 

              397,063

 

            1,077,819

 

            1,095,125

Provision for income taxes  

                63,051

 

                95,063

 

              182,746

 

              283,642

Net income  

 $           235,510

 

 $           302,000

 

 $           895,073

 

 $           811,483

                 
Basic earnings per share  

 $                2.72

 

 $                3.45

 

 $               10.36

 

 $                9.14

Diluted earnings per share  

 $                2.60

 

 $                3.33

 

 $                9.94

 

 $                8.81

                 
Weighted average shares outstanding:                
Basic shares  

                86,600

 

                87,636

 

                86,401

 

                88,750

Diluted shares  

                90,427

 

                90,703

 

                90,070

 

                92,151

FLEETCOR Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share and par value amounts)
    December 31, 20191   December 31, 2018
    (Unaudited)    
Assets            
         
Current assets:        
Cash and cash equivalents  

 $                          1,271,494

 

 $                          1,031,145

Restricted cash  

                               403,743

 

333,748

Accounts and other receivables (less allowance for doubtful accounts of $70,890 and  $59,963 at December 31,
2019 and 2018, respectively)
 

                             1,528,007

 

1,425,815

Securitized accounts receivable - restricted for securitization investors  

                               970,973

 

886,000

Prepaid expenses and other current assets     

                               403,400

 

199,278

         
Total current assets  

4,577,617

 

3,875,986

         
Property and equipment, net  

199,825

 

186,201

Goodwill   

4,833,047

 

4,542,074

Other intangibles, net   

2,341,882

 

2,407,910

Investments  

30,440

 

42,674

Other assets  

224,776

 

147,632

         
Total assets  

 $                        12,207,587

 

 $                        11,202,477

         
Liabilities and Stockholders’ Equity        
         
Current liabilities:        
Accounts payable   

 $                          1,208,631

 

 $                          1,117,649

Accrued expenses     

                               275,511

 

261,594

Customer deposits  

                             1,007,631

 

926,685

Securitization facility  

                               970,973

 

886,000

Current portion of notes payable and lines of credit  

                               775,865

 

1,184,616

Other current liabilities  

                               183,503

 

118,669

         
Total current liabilities  

4,422,114

 

4,495,213

         
Notes payable and other obligations, less current portion  

                             3,289,947

 

2,748,431

Deferred income taxes     

                               519,980

 

491,946

Other noncurrent liabilities  

                               263,930

 

126,707

         
Total noncurrent liabilities     

4,073,857

 

3,367,084

         
Commitments and contingencies        
         
Stockholders’ equity:        
Common stock, $0.001 par value; 475,000,000 shares authorized; 124,626,786 shares issued and 85,342,156 shares
outstanding at December 31, 2019; and 123,035,859 shares issued and 85,845,344 shares outstanding at December
31, 2018
 

124

 

123

Additional paid-in capital  

2,494,721

 

2,306,843

Retained earnings  

4,712,729

 

3,817,656

Accumulated other comprehensive loss  

(972,465)

 

(913,858)

Less treasury stock, 39,284,630 shares and 37,190,515 shares at December 31, 2019 and 2018, respectively  

(2,523,493)

 

(1,870,584)

         
Total stockholders’ equity  

3,711,616

 

3,340,180

         
Total liabilities and stockholders’ equity  

 $                        12,207,587

 

 $                        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. 
Consolidated Statements of Cash Flows 
(In thousands) 
    Year Ended December 31,
   

20191

 

2018

    (Unaudited)    
Operating activities        
Net income   

 $           895,073

 

 $           811,483

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

                62,784

 

                52,936

Stock-based compensation   

                60,953

 

                69,939

Provision for losses on accounts receivable   

                74,309

 

                64,377

Amortization of deferred financing costs and discounts  

                 5,106

 

                 5,342

Amortization of intangible assets and premium on receivables  

              211,426

 

              221,673

Loss on extinguishment of debt  

                      -  

 

                 2,098

Loss on write-off of fixed assets  

                 1,819

 

                 8,793

Deferred income taxes   

                34,670

 

                (2,750)

Investment loss, net  

                 3,470

 

                 7,147

Gain on sale of assets/business  

                      -  

 

            (152,750)

Other non-cash operating income  

                (1,297)

 

                  (186)

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

            (198,156)

 

            (159,024)

Prepaid expenses and other current assets   

            (185,391)

 

              (27,650)

Other assets   

                (6,792)

 

              (25,432)

Accounts payable, accrued expenses and customer deposits   

              204,097

 

                27,386

Net cash provided by operating activities   

           1,162,071

 

              903,382

         
         
Investing activities        
Acquisitions, net of cash acquired  

            (448,277)

 

              (20,843)

Purchases of property and equipment   

              (75,170)

 

              (81,387)

Proceeds from disposal of assets/business  

                      -  

 

                98,735

Other  

                  (255)

 

              (22,775)

Net cash used in investing activities   

            (523,702)

 

              (26,270)

         
         
Financing activities        
Proceeds from issuance of common stock   

              168,925

 

                55,680

Repurchase of common stock  

            (694,909)

 

            (958,696)

Borrowings on securitization facility, net   

                84,973

 

                75,000

Deferred financing costs paid and debt discount  

                (2,868)

 

                (4,927)

Proceeds from issuance of notes payable  

              700,000

 

              363,430

Principal payments on notes payable   

            (138,500)

 

            (498,305)

Borrowings from revolver  

           1,811,509

 

           1,493,091

Payments on revolver   

          (2,292,349)

 

          (1,099,040)

Borrowings from (payments to) swing line of credit, net  

                52,996

 

                (4,935)

Other  

                      52

 

                    887

Net cash used in financing activities   

            (310,171)

 

            (577,815)

         
Effect of foreign currency exchange rates on cash   

(17,854)

 

(65,274)

         
Net increase in cash and cash equivalents and restricted cash  

              310,344

 

              234,023

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  

 $         1,675,237

 

 $         1,364,893

         
Supplemental cash flow information        
Cash paid for interest   

 $           178,417

 

 $           156,749

Cash paid for income taxes   

 $           200,525

 

 $           207,504

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. 
RECONCILIATION OF NON-GAAP MEASURES
(In thousands, except shares and per share amounts)
(Unaudited)
                 
The following table reconciles net income to adjusted net income and adjusted net income per diluted share:*                
                 
    Three Months Ended December 31,   Year Ended December 31,
   

2019

 

2018

 

2019

 

2018

Net income  

 $            235,510

 

 $            302,000

 

 $            895,073

 

 $            811,483

                 
Stock based compensation  

                14,833

 

                15,732

 

                60,953

 

                69,939

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

                53,484

 

                53,776

 

              216,532

 

              227,015

Investment (gains) losses  

               (12,955)

 

                      -  

 

                  2,705

 

                  7,147

Net gain on disposition of assets/business  

                      -  

 

             (152,750)

 

                      -  

 

             (152,750)

Loss on write-off of fixed assets  

                  1,819

 

                  8,793

 

                  1,819

 

                  8,793

Loss on extinguishment of debt  

                      -  

 

                  2,098

 

                      -  

 

                  2,098

Legal settlements/litigation  

                  2,707

 

                  5,500

 

                  6,181

 

                  5,500

Restructuring and related costs  

                  2,814

 

                  1,052

 

                  2,814

 

                  4,969

Unauthorized access impact  

                      -  

 

                      -  

 

                      -  

 

                  2,065

Total pre-tax adjustments  

                62,702

 

               (65,799)

 

              291,004

 

              174,777

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

               (12,596)

 

                15,753

 

               (61,619)

 

               (39,151)

Impact of investment sale, other discrete item and tax reform2  

                    765

 

                      -  

 

               (62,333)

 

                22,731

                 
Adjusted net income  

 $            286,380

 

 $            251,954

 

 $         1,062,125

 

 $            969,840

Adjusted net income per diluted share  

 $                 3.17

 

 $                 2.78

 

 $               11.79

 

 $               10.53

                 
Diluted shares  

                90,427

 

                90,703

 

                90,070

 

                92,151

1 Includes discrete tax effect of non-cash investment gain.  Also excludes impact of a Section 199 tax adjustment related to a prior tax year on the 2019 effective income tax rate.
2 Represents the impact to taxes from the reversal of a valuation allowance related to the disposition of our investment in Masternaut of $64.9 million and $0.8 million in the second and fourth quarters of 2019, respectively, and impact of tax reform adjustments included in our effective tax rate of $22.7 million in the third quarter of 2018.  Also, includes the impact of a discrete tax item for a Section 199 adjustment related to a prior tax year in the third quarter of 2019 results of $1.8 million. 
* Columns may not calculate due to rounding.
Exhibit 2
Key Performance Indicators, by Product Category and Revenue Per Performance Metric on a GAAP Basis and Pro Forma and Macro Adjusted
(In millions except revenues, net per transaction)
(Unaudited)
The following table presents revenue and revenue per key performance metric by product category.*                
    As Reported   Pro Forma and Macro Adjusted3
    Three Months Ended December 31,   Three Months Ended December 31,
   

2019

 

2018

 

Change

 

% Change

 

2019

 

2018

 

Change

 

% Change

                                 
FUEL                                
- Revenues, net1  

 $       299.3

 

 $       298.8

 

 $       0.5

 

0%

 

 $       310.0

 

 $             284.6

 

 $         25.4

 

9%

- Transactions1  

          126.4

 

          128.3

 

        (1.9)

 

(1%)

 

          126.4

 

                124.9

 

             1.6

 

1%

- Revenues, net per transaction  

 $         2.37

 

 $         2.33

 

 $     0.04

 

2%

 

 $         2.45

 

 $               2.28

 

 $         0.17

 

8%

                                 
CORPORATE PAYMENTS                                
- Revenues, net  

 $       140.3

 

 $       116.0

 

 $     24.3

 

21%

 

 $       140.5

 

 $             123.6

 

 $         16.9

 

14%

- Transactions  

            13.6

 

            13.6

 

         0.0

 

0%

 

            13.6

 

                  13.8

 

            (0.1)

 

(1%)

- Revenues, net per transaction  

 $       10.29

 

 $         8.54

 

 $     1.75

 

21%

 

 $       10.31

 

 $               8.99

 

 $         1.32

 

15%

- Spend volume  

 $   17,878.6

 

 $   14,750.6

 

 $ 3,128.0

 

21%

 

 $   17,939.1

 

 $         14,751.0

 

 $     3,188.1

 

22%

- Revenues, net per spend $  

0.78%

 

0.79%

 

(0.0%)

 

(0%)

 

0.78%

 

0.84%

 

(0.1%)

 

(7%)

                                 
TOLLS                                
- Revenues, net1  

 $         93.3

 

 $         86.6

 

 $       6.7

 

8%

 

 $       100.9

 

 $               86.6

 

 $         14.3

 

17%

- Tags (average monthly)  

             5.3

 

             4.8

 

         0.5

 

9%

 

             5.3

 

                   4.8

 

             0.5

 

9%

- Revenues, net per tag  

 $       17.77

 

 $       18.05

 

 $   (0.28)

 

(2%)

 

 $       19.21

 

 $             18.05

 

 $         1.16

 

6%

                                 
LODGING                                
- Revenues, net  

 $         64.2

 

 $         43.4

 

 $     20.8

 

48%

 

 $         64.2

 

 $               56.5

 

 $           7.7

 

14%

- Room nights  

             6.4

 

             4.5

 

         1.9

 

43%

 

             6.4

 

                   6.7

 

            (0.4)

 

(5%)

- Revenues, net per room night  

 $       10.06

 

 $         9.71

 

 $     0.35

 

4%

 

 $       10.06

 

 $               8.38

 

 $         1.68

 

20%

                                 
GIFT                                
- Revenues, net  

 $         47.7

 

 $         48.0

 

 $     (0.4)

 

(1%)

 

 $         47.7

 

 $               50.9

 

 $         (3.2)

 

(6%)

- Transactions  

          381.5

 

          432.3

 

      (50.7)

 

(12%)

 

          381.5

 

                432.6

 

          (51.0)

 

(12%)

- Revenues, net per transaction  

 $         0.12

 

 $         0.11

 

 $     0.01

 

12%

 

 $         0.12

 

 $               0.12

 

 $         0.01

 

6%

                                 
OTHER2                                
- Revenues, net1  

 $         54.1

 

 $         50.6

 

 $       3.5

 

7%

 

 $         58.1

 

 $               51.8

 

 $           6.3

 

12%

- Transactions1  

            14.6

 

            12.8

 

         1.8

 

14%

 

            14.6

 

                  14.6

 

            (0.0)

 

(0%)

- Revenues, net per transaction  

 $         3.71

 

 $         3.97

 

 $   (0.26)

 

(7%)

 

 $         3.98

 

 $               3.54

 

 $         0.44

 

13%

                                 
                                 
FLEETCOR CONSOLIDATED REVENUES                                
- Revenues, net  

 $       698.9

 

 $       643.4

 

 $     55.5

 

9%

 

 $       721.4

 

 $             654.0

 

 $         67.4

 

10%

                                 
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. 
* Columns may not calculate due to rounding.
Exhibit 3
Revenues by Geography and Product
(In millions)
(Unaudited)
                                   
Revenue by Geography*   Three Months Ended December 31,   Year Ended December 31,
     

2019

 

%

 

2018

 

%

 

2019

 

%

 

2018

 

%

                                   
  US  

 $         421

 

60%

 

 $         400

 

62%

 

 $       1,595

 

60%

 

 $       1,482

 

61%

  Brazil  

            112

 

16%

 

            104

 

16%

 

            428

 

16%

 

            400

 

16%

  UK  

              71

 

10%

 

              65

 

10%

 

            275

 

10%

 

            258

 

11%

  Other  

              95

 

14%

 

              74

 

12%

 

            350

 

13%

 

            294

 

12%

                                 
  Consolidated Revenues, net  

 $         699

 

100%

 

 $         643

 

100%

 

 $       2,649

 

100%

 

 $       2,433

 

100%

* Columns may not calculate due to rounding.                            
                                   
Revenue by Product Category*1   Three Months Ended December 31,   Year Ended December 31,
     

2019

 

%

 

2018

 

%

 

2019

 

%

 

2018

 

%

                                   
  Fuel  

 $         299

 

42%

 

 $         299

 

46%

 

 $       1,173

 

44%

 

 $       1,126

 

46%

  Corporate Payments  

            140

 

20%

 

            116

 

18%

 

            516

 

19%

 

            416

 

17%

  Tolls  

              93

 

13%

 

              87

 

13%

 

            357

 

13%

 

            333

 

14%

  Lodging  

              64

 

9%

 

              43

 

7%

 

            213

 

8%

 

            176

 

7%

  Gift  

              48

 

7%

 

              48

 

7%

 

            180

 

7%

 

            187

 

8%

  Other  

              54

 

8%

 

              51

 

8%

 

            210

 

8%

 

            197

 

8%

                                 
  Consolidated Revenues, net  

 $         699

 

100%

 

 $         643

 

100%

 

 $       2,649

 

100%

 

 $       2,433

 

100%

* Columns may not calculate due to rounding.
1 Reflects certain reclassifications of revenue in 2018 between product categories as the Company realigned its Brazil business into product lines, resulting in refinement of revenue classified as fuel versus tolls and the eCash/OnRoad product being fuel versus other.
Exhibit 4
Segment Results1
(In thousands)
 
                 
    Three Months Ended December 31,   Year Ended December 31,
   

2019

 

2018

 

2019

 

2018

    (Unaudited)   (Unaudited)   (Unaudited)    
Revenues, net:                
North America  

 $                  451,002

 

 $                  423,432

 

 $               1,708,546

 

 $               1,571,466

International  

                     247,879

 

                     219,990

 

                     940,302

 

                     862,026

   

 $                  698,881

 

 $                  643,422

 

 $               2,648,848

 

 $               2,433,492

                 
Operating income:                
North America  

 $                  192,293

 

 $                  178,772

 

 $                  755,867

 

 $                  673,868

International  

                     128,503

 

                     105,966

 

                     475,563

 

                     416,830

   

 $                  320,796

 

 $                  284,738

 

 $               1,231,430

 

 $               1,090,698

                 
Depreciation and amortization:                
North America  

 $                    40,770

 

 $                    38,364

 

 $                  160,246

 

 $                  154,405

International  

                      27,740

 

                      28,866

 

                     113,964

 

                     120,204

   

 $                    68,510

 

 $                    67,230

 

 $                  274,210

 

 $                  274,609

                 
Capital expenditures:                
North America  

 $                    14,215

 

 $                     3,814

 

 $                    44,238

 

 $                    36,514

International  

                      12,275

 

                      21,261

 

                      30,932

 

                      44,873

   

 $                    26,490

 

 $                    25,075

 

 $                    75,170

 

 $                    81,387

1The results from Nvoicepay acquired in the second quarter of 2019, SOLE acquired in the third quarter of 2019 and Travelliance acquired in the fourth quarter of 2019 are reported in our North America segment.  The results from R2C acquired in the second quarter of 2019 are reported in our International segment.  
Exhibit 5
Reconciliation of Non-GAAP Revenue and Key Performance Metric by Product to GAAP
(In millions)
(Unaudited)
                       
      Revenue     Key Performance Metric
      Three Months Ended December 31,     Three Months Ended December 31,
      2019*   2018*     2019*   2018*  
                       
  FUEL-TRANSACTIONS                    
  Pro forma and macro adjusted  

 $               310.0

 

 $               284.6

   

                  126.4

 

                  124.9

 
  Impact of acquisitions/dispositions  

                      -  

 

                   14.2

   

                      -  

 

                     3.5

 
  Impact of fuel prices/spread  

                  (10.3)

 

                      -  

   

                      -  

 

                      -  

 
  Impact of foreign exchange rates  

                    (0.4)

 

                      -  

   

                      -  

 

                      -  

 
  As reported  

 $               299.3

 

 $               298.8

   

                  126.4

 

                  128.3

 
                       
  CORPORATE PAYMENTS- TRANSACTIONS                  
  Pro forma and macro adjusted  

 $               140.5

 

 $               123.6

   

                   13.6

 

                   13.8

 
  Impact of acquisitions/dispositions  

                      -  

 

                    (7.7)

   

                      -  

 

                    (0.2)

 
  Impact of fuel prices/spread  

                      -  

 

                      -  

   

                      -  

 

                      -  

 
  Impact of foreign exchange rates  

                    (0.3)

 

                      -  

   

                      -  

 

                      -  

 
  As reported  

 $               140.3

 

 $               116.0

   

                   13.6

 

                   13.6

 
                       
  CORPORATE PAYMENTS- SPEND                    
  Pro forma and macro adjusted   Intentionally Left Blank    

             17,939.1

 

             14,751.0

 
  Impact of acquisitions/dispositions      

                      -  

 

                    (0.4)

 
  Impact of fuel prices/spread      

                      -  

 

                      -  

 
  Impact of foreign exchange rates      

                  (60.5)

 

                      -  

 
  As reported      

             17,878.6

 

             14,750.6

 
                       
  TOLLS- TAGS                    
  Pro forma and macro adjusted  

 $               100.9

 

 $                 86.6

   

                     5.3

 

                     4.8

 
  Impact of acquisitions/dispositions  

                      -  

 

                      -  

   

                      -  

 

                      -  

 
  Impact of fuel prices/spread  

                      -  

 

                      -  

   

                      -  

 

                      -  

 
  Impact of foreign exchange rates  

                    (7.6)

 

                      -  

   

                      -  

 

                      -  

 
  As reported  

 $                 93.3

 

 $                 86.6

   

                     5.3

 

                     4.8

 
                       
  LODGING- ROOM NIGHTS                  
  Pro forma and macro adjusted  

 $                 64.2

 

 $                 56.5

   

                     6.4

 

                     6.7

 
  Impact of acquisitions/dispositions  

                      -  

 

                  (13.1)

   

                      -  

 

                    (2.3)

 
  Impact of fuel prices/spread  

                      -  

 

                      -  

   

                      -  

 

                      -  

 
  Impact of foreign exchange rates  

                      -  

 

                      -  

   

                      -  

 

                      -  

 
  As reported  

 $                 64.2

 

 $                 43.4

   

                     6.4

 

                     4.5

 
                       
  GIFT- TRANSACTIONS                    
  Pro forma and macro adjusted  

 $                 47.7

 

 $                 50.9

   

                  381.5

 

                  432.6

 
  Impact of acquisitions/dispositions  

                      -  

 

                    (2.9)

   

                      -  

 

                    (0.3)

 
  Impact of fuel prices/spread  

                      -  

 

                      -  

   

                      -  

 

                      -  

 
  Impact of foreign exchange rates  

                      -  

 

                      -  

   

                      -  

 

                      -  

 
  As reported  

 $                 47.7

 

 $                 48.0

   

                  381.5

 

                  432.3

 
                       
  OTHER1- TRANSACTIONS                    
  Pro forma and macro adjusted  

 $                 58.1

 

 $                 51.8

   

                   14.6

 

                   14.6

 
  Impact of acquisitions/dispositions  

                      -  

 

                    (1.2)

   

                      -  

 

                    (1.9)

 
  Impact of fuel prices/spread  

                      -  

 

                      -  

   

                      -  

 

                      -  

 
  Impact of foreign exchange rates  

                    (4.0)

 

                      -  

   

                      -  

 

                      -  

 
  As reported  

 $                 54.1

 

 $                 50.6

   

                   14.6

 

                   12.8

 
                       
                       
  FLEETCOR CONSOLIDATED REVENUES                    
  Pro forma and macro adjusted  

 $               721.4

 

 $               654.0

    Intentionally Left Blank  
  Impact of acquisitions/dispositions  

                      -  

 

                  (10.6)

     
  Impact of fuel prices/spread  

                  (10.3)

 

                      -  

     
  Impact of foreign exchange rates  

                  (12.2)

 

                      -  

     
  As reported  

 $               698.9

 

 $               643.4

     
                       
* Columns may not calculate due to rounding.                    
1 Other includes telematics, maintenance, food, and transportation related businesses.            
Exhibit 6
RECONCILIATION OF NON-GAAP GUIDANCE MEASURES
(In millions, except per share amounts)
(Unaudited)
         
The following table reconciles first quarter and full year 2020 financial guidance for net income to adjusted net income and adjusted net
income per diluted share, at both ends of the range.
         
    Q1 2020 GUIDANCE
    Low*   High*
Net income

 $        205

 

 $            215

Net income per diluted share

 $       2.30

 

 $           2.40

         
Stock based compensation

15

 

15

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

51

 

51

Other

3

 

3

Total pre-tax adjustments

68

 

68

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

(14)

 

(14)

Adjusted net income

 $        260

 

 $            270

Adjusted net income per diluted share

          2.90

 

 $           3.00

         
Diluted shares

89

 

89

         
    2020 GUIDANCE
    Low*   High*
Net income

$         965

 

$       1,005

Net income per diluted share

 $      10.80

 

 $          11.20

         
Stock based compensation

75

 

75

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

203

 

203

Other

7

 

7

Total pre-tax adjustments

285

 

285

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

(59)

 

(59)

Adjusted net income

$       1,190

 

$       1,230

Adjusted net income per diluted share

 $      13.35

 

 $          13.75

         
Diluted shares

89

 

89

         
* Columns may not calculate due to rounding.      
         

 

Source: FLEETCOR Technologies, Inc.

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