FLEETCOR Reports Fourth Quarter and Fiscal Year 2020 Financial Results
“Q4 finished better than expected, with improving trends across the board. Our 2021 set up looks good, with the potential for high-teens revenue and profit growth from Q2 on,” said
Financial Results for Fourth Quarter of 2020:
GAAP Results
- Revenues decreased 12% to
$617.3 million in the fourth quarter of 2020, compared with$698.9 million in the fourth quarter of 2019. - Net income decreased 11% to
$209.9 million in the fourth quarter of 2020, compared with$235.5 million in the fourth quarter of 2019. - Net income per diluted share decreased 6% to
$2.44 in the fourth quarter of 2020, compared with$2.60 per diluted share in the fourth quarter of 2019.
Non-GAAP Results1
- Adjusted net income1 decreased 10% to
$258.4 million in the fourth quarter of 2020, compared with$286.4 million in the fourth quarter of 2019. - Adjusted net income per diluted share1 decreased 5% to
$3.01 in the fourth quarter of 2020, compared with$3.17 per diluted share in the fourth quarter of 2019.
Financial Results for Fiscal Year 2020:
GAAP Results
- Revenues decreased 10% to
$2,388.9 million in 2020, compared with$2,648.8 million in 2019. - Net income decreased 21% to
$704.2 million in 2020, compared with$895.1 million in 2019. - Net income per diluted share decreased 18% to
$8.12 in 2020, compared with$9.94 per diluted share in 2019.
Non-GAAP Results1
- Adjusted net income1 decreased 9% to
$962.2 million in 2020, compared with$1,062.1 million in 2019. - Adjusted net income per diluted share1 decreased 6% to
$11.09 in 2020, compared with$11.79 in 2019.
Fiscal Year 2021 Outlook:
“Clearly there is still tremendous uncertainty on the path and pace of recovery for 2021, much of it predicated on widespread vaccinations and a corresponding economic recovery. Based on what we know today, and our expectation that activity will continue to improve throughout the year, our outlook for 2021 is for organic revenue growth to be in the 9% to 13% range, and adjusted net income to be up a corresponding amount, excluding acquisitions. Our assumption underlying these expectations is that the soft, COVID-driven operating environment will continue for most of the first half of 2021, and then improve meaningfully in the second half of the year. We also expect that expenses will be higher than our 2020 levels, but we will continue to manage them in line with revenue growth,” said
For fiscal year 2021, FLEETCOR’s financial outlook is as follows:
- Total revenues to be between
$2,600 million and$2,700 million ; - GAAP net income to be between
$810 million and$890 million ; - GAAP net income per diluted share to be between
$9.40 and$10.20 ; - Adjusted net income to be between
$1,020 million and$1,110 million ; - Adjusted net income per diluted share to be between
$11.90 and$12.70 .
FLEETCOR’s outlook assumptions for fiscal year 2021 are as follows:
- Weighted fuel prices equal to
$2.43 per gallon average in theU.S. ; - Market spreads significantly unfavorable compared to the 2020 average;
- Foreign exchange rates equal to the average of the four weeks of January, 2021;
- Interest expense between
$110 million and$120 million ; - Approximately 87 million fully diluted shares outstanding for 2021;
- An adjusted tax rate of approximately 19.5% to 21.5%; and
- No impact related to acquisitions or material new partnership agreements not already disclosed.
First Quarter of 2021 Outlook:
The Company currently expects that first quarter adjusted net income per diluted share will likely be between
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 2020 financial results today at
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
These forward-looking statements are not a guarantee of performance, and you should not place undue reliance on such statements. We have based these forward-looking statements largely on preliminary information, internal estimates and management assumptions, expectations and plans about future conditions, events and results. Forward-looking statements are subject to many uncertainties and other variable circumstances, such as regulatory measures, voluntary actions, or changes in consumer preferences, that impact our transaction volume, including social distancing, shelter-in-place, shutdowns of nonessential businesses and similar measures imposed or undertaken in an effort to contain and mitigate the spread of the coronavirus (COVID-19); adverse changes or volatility in fuel prices and spreads; adverse changes in program fees or charges we may collect, whether through legal, regulatory or contractual changes; adverse outcomes with respect to current and future legal proceedings or investigations, including without limitation, the
About Non-GAAP Financial Measures:
This press release includes non-GAAP financial measures, which are used by the Company as supplemental measures to evaluate our overall operating performance. The Company’s definitions of the non-GAAP financial measures used herein may differ from similarly titled measures used by others, including within our industry. By providing these non-GAAP financial measures, together with reconciliations to the most directly comparable GAAP financial measures, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing strategic initiatives. See the appendix for additional information regarding these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP measure.
Adjusted net income is calculated as net income, adjusted to eliminate (a) non-cash 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) integration and deal related costs, and (d) other non-recurring items, including unusual credit losses occurring largely due to COVID-19, the impact of discrete tax items, impairment charges, asset write-offs, restructuring costs, gains due to disposition of assets and a business, loss on extinguishment of debt, and legal settlements. We calculate adjusted net income and adjusted net income per diluted share to eliminate the effect of items that we do not consider indicative of our core operating performance.
Adjusted net income and adjusted net income per diluted share are supplemental measures of operating performance that do not represent and should not be considered as an alternative to net income, net income per diluted share or cash flow from operations, as determined by
Organic revenue growth is calculated as revenue growth in the current period adjusted for the impact of changes in the macroeconomic environment (to include fuel price, fuel price spreads and changes in foreign exchange rates) over revenue in the comparable prior period adjusted to include or remove the impact of acquisitions and/or divestitures and non-recurring items that have occurred subsequent to that period. We believe that organic revenue growth on a macro-neutral, one-time item, and consistent acquisition/divestiture/non-recurring item basis is useful to investors for understanding the performance of
Management uses adjusted net income, adjusted net income per diluted share and organic revenue growth:
- as measurements of operating performance because they assist us in comparing our operating performance on a consistent basis;
- for planning purposes, including the preparation of our internal annual operating budget;
- to allocate resources to enhance the financial performance of our business; and
- to evaluate the performance and effectiveness of our operational strategies.
About
|
|||||||||||||||
Consolidated Statements of Income |
|||||||||||||||
(In thousands, except per share amounts) |
|||||||||||||||
Three Months Ended |
|
Year Ended |
|||||||||||||
2020 |
|
2019 |
|
2020 |
|
2019 |
|||||||||
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|||||||||
Revenues, net |
$ |
617,333 |
|
$ |
698,881 |
|
$ |
2,388,855 |
|
$ |
2,648,848 |
||||
Expenses: | |||||||||||||||
Processing |
|
121,514 |
|
|
146,081 |
|
|
596,363 |
|
|
530,669 |
||||
Selling |
|
47,737 |
|
|
51,899 |
|
|
192,732 |
|
|
204,806 |
||||
General and administrative |
|
90,961 |
|
|
109,592 |
|
|
374,678 |
|
|
407,210 |
||||
Depreciation and amortization |
|
64,685 |
|
|
68,510 |
|
|
254,802 |
|
|
274,210 |
||||
Other operating, net |
|
(1,503 |
) |
|
2,003 |
|
|
(1,985 |
) |
|
523 |
||||
Operating income |
|
293,939 |
|
|
320,796 |
|
|
972,265 |
|
|
1,231,430 |
||||
Investment (gain) loss |
|
- |
|
|
(12,190 |
) |
|
(30,008 |
) |
|
3,470 |
||||
Other expense (income), net |
|
422 |
|
|
(535 |
) |
|
(10,055 |
) |
|
93 |
||||
Interest expense, net |
|
30,329 |
|
|
34,960 |
|
|
129,803 |
|
|
150,048 |
||||
Total other expense |
|
30,751 |
|
|
22,235 |
|
|
89,740 |
|
|
153,611 |
||||
Income before income taxes |
|
263,188 |
|
|
298,561 |
|
|
882,525 |
|
|
1,077,819 |
||||
Provision for income taxes |
|
53,337 |
|
|
63,051 |
|
|
178,309 |
|
|
182,746 |
||||
Net income |
$ |
209,851 |
|
$ |
235,510 |
|
$ |
704,216 |
|
$ |
895,073 |
||||
Basic earnings per share |
$ |
2.51 |
|
$ |
2.72 |
|
$ |
8.38 |
|
$ |
10.36 |
||||
Diluted earnings per share |
$ |
2.44 |
|
$ |
2.60 |
|
$ |
8.12 |
|
$ |
9.94 |
||||
Weighted average shares outstanding: | |||||||||||||||
Basic shares |
|
83,514 |
|
|
86,600 |
|
|
84,005 |
|
|
86,401 |
||||
Diluted shares |
|
85,846 |
|
|
90,427 |
|
|
86,719 |
|
|
90,070 |
Consolidated Balance Sheets | ||||||||
(In thousands, except share and par value amounts) | ||||||||
|
|
|||||||
(Unaudited) |
||||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents |
$ |
934,900 |
|
$ |
1,271,494 |
|
||
Restricted cash |
|
541,719 |
|
|
403,743 |
|
||
Accounts and other receivables (less allowance for credit losses of |
|
1,366,775 |
|
|
1,568,961 |
|
||
Securitized accounts receivable - restricted for securitization investors |
|
700,000 |
|
|
970,973 |
|
||
Prepaid expenses and other current assets |
|
412,924 |
|
|
403,400 |
|
||
Total current assets |
|
3,956,318 |
|
|
4,618,571 |
|
||
Property and equipment, net |
|
202,509 |
|
|
199,825 |
|
||
|
4,719,181 |
|
|
4,833,047 |
|
|||
Other intangibles, net |
|
2,115,882 |
|
|
2,341,882 |
|
||
Investments |
|
7,480 |
|
|
30,440 |
|
||
Other assets |
|
193,209 |
|
|
224,776 |
|
||
Total assets |
$ |
11,194,579 |
|
$ |
12,248,541 |
|
||
Liabilities and Stockholders’ Equity | ||||||||
Current liabilities: | ||||||||
Accounts payable |
$ |
1,054,478 |
|
$ |
1,249,586 |
|
||
Accrued expenses |
|
282,681 |
|
|
275,511 |
|
||
Customer deposits |
|
1,175,322 |
|
|
1,007,631 |
|
||
Securitization facility |
|
700,000 |
|
|
970,973 |
|
||
Current portion of notes payable and lines of credit |
|
505,697 |
|
|
775,865 |
|
||
Other current liabilities |
|
250,133 |
|
|
183,502 |
|
||
Total current liabilities |
|
3,968,311 |
|
|
4,463,068 |
|
||
Notes payable and other obligations, less current portion |
|
3,126,926 |
|
|
3,289,947 |
|
||
Deferred income taxes |
|
498,154 |
|
|
519,980 |
|
||
Other noncurrent liabilities |
|
245,777 |
|
|
263,930 |
|
||
Total noncurrent liabilities |
|
3,870,857 |
|
|
4,073,857 |
|
||
Commitments and contingencies | ||||||||
Stockholders’ equity: | ||||||||
Common stock, |
|
126 |
|
|
124 |
|
||
Additional paid-in capital |
|
2,749,900 |
|
|
2,494,721 |
|
||
Retained earnings |
|
5,416,945 |
|
|
4,712,729 |
|
||
Accumulated other comprehensive loss |
|
(1,363,158 |
) |
|
(972,465 |
) |
||
Less treasury stock, 42,781,915 shares and 39,284,630 shares at |
|
(3,448,402 |
) |
|
(2,523,493 |
) |
||
Total stockholders’ equity |
|
3,355,411 |
|
|
3,711,616 |
|
||
Total liabilities and stockholders’ equity |
$ |
11,194,579 |
|
$ |
12,248,541 |
|
||
Consolidated Statements of Cash Flows | ||||||||
(In thousands) | ||||||||
Year Ended |
||||||||
2020 |
2019 |
|||||||
(Unaudited) |
||||||||
Operating activities | ||||||||
Net income |
$ |
704,216 |
|
$ |
895,073 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation |
|
65,181 |
|
|
62,784 |
|
||
Stock-based compensation |
|
43,384 |
|
|
60,953 |
|
||
Provision for losses on accounts and other receivables |
|
158,549 |
|
|
74,309 |
|
||
Amortization of deferred financing costs and discounts |
|
6,486 |
|
|
5,106 |
|
||
Amortization of intangible assets and premium on receivables |
|
189,620 |
|
|
211,426 |
|
||
Deferred income taxes |
|
147,058 |
|
|
37,883 |
|
||
Investment (gain) loss |
|
(30,008 |
) |
|
3,470 |
|
||
Loss on write-off of fixed assets |
|
294 |
|
|
1,819 |
|
||
Other non-cash operating income |
|
(2,279 |
) |
|
(1,297 |
) |
||
Changes in operating assets and liabilities (net of acquisitions/dispositions): | ||||||||
Accounts and other receivables |
|
264,140 |
|
|
(196,028 |
) |
||
Prepaid expenses and other current assets |
|
(14,521 |
) |
|
(185,391 |
) |
||
Other assets |
|
12,656 |
|
|
(6,792 |
) |
||
Accounts payable, accrued expenses and customer deposits |
|
(77,079 |
) |
|
198,756 |
|
||
Net cash provided by operating activities |
|
1,467,697 |
|
|
1,162,071 |
|
||
Investing activities | ||||||||
Acquisitions, net of cash acquired |
|
(80,787 |
) |
|
(448,277 |
) |
||
Purchases of property and equipment |
|
(78,425 |
) |
|
(75,170 |
) |
||
Proceeds from disposal of investment |
|
52,963 |
|
|
- |
|
||
Other |
|
- |
|
|
(255 |
) |
||
Net cash used in investing activities |
|
(106,249 |
) |
|
(523,702 |
) |
||
Financing activities | ||||||||
Proceeds from issuance of common stock |
|
136,797 |
|
|
168,925 |
|
||
Repurchase of common stock |
|
(849,910 |
) |
|
(694,909 |
) |
||
(Payments) borrowings on securitization facility, net |
|
(270,973 |
) |
|
84,973 |
|
||
Deferred financing costs paid and debt discount |
|
(2,637 |
) |
|
(2,868 |
) |
||
Proceeds from issuance of notes payable |
|
- |
|
|
700,000 |
|
||
Principal payments on notes payable |
|
(175,285 |
) |
|
(138,500 |
) |
||
Borrowings from revolver |
|
1,243,500 |
|
|
1,811,509 |
|
||
Payments on revolver |
|
(1,496,907 |
) |
|
(2,292,349 |
) |
||
(Payments) borrowings on swing line of credit, net |
|
(1,042 |
) |
|
52,996 |
|
||
Other |
|
(344 |
) |
|
52 |
|
||
Net cash used in financing activities |
|
(1,416,801 |
) |
|
(310,171 |
) |
||
Effect of foreign currency exchange rates on cash |
|
(143,265 |
) |
|
(17,854 |
) |
||
Net (decrease) increase in cash and cash equivalents and restricted cash |
|
(198,618 |
) |
|
310,344 |
|
||
Cash and cash equivalents and restricted cash, beginning of year |
|
1,675,237 |
|
|
1,364,893 |
|
||
Cash and cash equivalents and restricted cash, end of year |
$ |
1,476,619 |
|
$ |
1,675,237 |
|
||
Supplemental cash flow information | ||||||||
Cash paid for interest |
$ |
126,460 |
|
$ |
178,417 |
|
||
Cash paid for income taxes |
$ |
165,604 |
|
$ |
200,525 |
|
||
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 |
|
Year Ended |
||||||||||||||
2020 |
|
2019 |
|
2020 |
|
2019 |
||||||||||
Net income |
$ |
209,851 |
|
$ |
235,510 |
|
$ |
704,216 |
|
$ |
895,073 |
|
||||
Stock based compensation |
|
8,315 |
|
|
14,833 |
|
|
43,384 |
|
|
60,953 |
|
||||
Amortization of intangible assets, premium on receivables, deferred financing costs and discounts |
|
49,111 |
|
|
53,484 |
|
|
196,106 |
|
|
216,532 |
|
||||
Investment (gain) loss |
|
- |
|
|
(12,955 |
) |
|
(30,008 |
) |
|
2,705 |
|
||||
Loss on write-off of fixed assets |
|
294 |
|
|
1,819 |
|
|
294 |
|
|
1,819 |
|
||||
Integration and deal related costs1 |
|
985 |
|
|
- |
|
|
12,020 |
|
|
- |
|
||||
Restructuring and related costs |
|
(697 |
) |
|
2,814 |
|
|
4,215 |
|
|
2,814 |
|
||||
Legal settlements/litigation |
|
2,845 |
|
|
2,707 |
|
|
(144 |
) |
|
6,181 |
|
||||
Write-off of customer receivable2 |
|
- |
|
|
- |
|
|
90,058 |
|
|
- |
|
||||
Total pre-tax adjustments |
|
60,853 |
|
|
62,702 |
|
|
315,926 |
|
|
291,004 |
|
||||
Income tax impact of pre-tax adjustments at the effective tax rate3 |
|
(12,332 |
) |
|
(12,596 |
) |
|
(67,762 |
) |
|
(61,619 |
) |
||||
Impact of discrete tax item4 |
|
- |
|
|
765 |
|
|
9,848 |
|
|
(62,333 |
) |
||||
Adjusted net income |
$ |
258,372 |
|
$ |
286,380 |
|
$ |
962,228 |
|
$ |
1,062,125 |
|
||||
Adjusted net income per diluted share |
$ |
3.01 |
|
$ |
3.17 |
|
$ |
11.09 |
|
$ |
11.79 |
|
||||
Diluted shares |
|
85,846 |
|
|
90,427 |
|
|
86,719 |
|
|
90,070 |
|
1 Beginning in 2020, the Company included integration and deal related costs in its definition to calculate adjusted net income and adjusted net income per diluted share. Prior period amounts were approximately |
2 Represents a bad debt loss in the first quarter of 2020 from a large client in our Cambridge business entering voluntary bankruptcy due to the extraordinary impact of the COVID-19 pandemic. |
3 Excludes the results of the Company's investment in 2019, on our effective tax rate, as results from Masternaut investment are reported within the consolidated Statements of Income on a post-tax basis and no tax-over-book outside basis difference prior to disposition. |
4 Represents impact of a discrete tax reserve adjustment related to prior year tax positions in 2020 and the impact from the disposition of our investment in Masternaut of |
* 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 key performance metric) | ||||||||||||||||||||||||||||||
(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 |
|
Three Months Ended |
||||||||||||||||||||||||||||
2020 |
|
2019 |
|
Change |
|
% Change |
|
2020 |
|
2019 |
|
Change |
|
% Change |
||||||||||||||||
FUEL | ||||||||||||||||||||||||||||||
- Revenues, net |
$ |
260.2 |
|
$ |
299.3 |
|
$ |
(39.1 |
) |
(13 |
%) |
$ |
270.4 |
|
$ |
299.3 |
|
$ |
(28.9 |
) |
(10 |
%) |
||||||||
- Transactions |
|
110.4 |
|
|
126.4 |
|
|
(16.0 |
) |
(13 |
%) |
|
110.4 |
|
|
126.4 |
|
|
(16.0 |
) |
(13 |
%) |
||||||||
- Revenues, net per transaction |
$ |
2.36 |
|
$ |
2.37 |
|
$ |
(0.01 |
) |
(0 |
%) |
$ |
2.45 |
|
$ |
2.37 |
|
$ |
0.08 |
|
3 |
% |
||||||||
CORPORATE PAYMENTS | ||||||||||||||||||||||||||||||
- Revenues, net1 |
$ |
115.0 |
|
$ |
121.4 |
|
$ |
(6.5 |
) |
(5 |
%) |
$ |
114.4 |
|
$ |
121.4 |
|
$ |
(7.1 |
) |
(6 |
%) |
||||||||
- Spend volume |
$ |
17,585 |
|
$ |
18,630 |
|
$ |
(1,045 |
) |
(6 |
%) |
$ |
17,585 |
|
$ |
18,630 |
|
$ |
(1,044 |
) |
(6 |
%) |
||||||||
- Revenues, net per spend $ |
|
0.65 |
% |
|
0.65 |
% |
|
0.00 |
% |
0 |
% |
|
0.65 |
% |
|
0.65 |
% |
|
0.00 |
% |
0 |
% |
||||||||
TOLLS | ||||||||||||||||||||||||||||||
- Revenues, net |
$ |
76.5 |
|
$ |
93.3 |
|
$ |
(16.8 |
) |
(18 |
%) |
$ |
100.2 |
|
$ |
93.3 |
|
$ |
6.8 |
|
7 |
% |
||||||||
- Tags (average monthly) |
|
5.6 |
|
|
5.3 |
|
|
0.4 |
|
7 |
% |
|
5.6 |
|
|
5.3 |
|
|
0.4 |
|
7 |
% |
||||||||
- Revenues, net per tag |
$ |
13.61 |
|
$ |
17.77 |
|
$ |
(4.16 |
) |
(23 |
%) |
$ |
17.81 |
|
$ |
17.77 |
|
$ |
0.05 |
|
0 |
% |
||||||||
LODGING | ||||||||||||||||||||||||||||||
- Revenues, net |
$ |
56.6 |
|
$ |
64.2 |
|
$ |
(7.6 |
) |
(12 |
%) |
$ |
56.6 |
|
$ |
75.0 |
|
$ |
(18.4 |
) |
(25 |
%) |
||||||||
- Room nights |
|
5.8 |
|
|
6.4 |
|
|
(0.6 |
) |
(9 |
%) |
|
5.8 |
|
|
6.4 |
|
|
(0.6 |
) |
(9 |
%) |
||||||||
- Revenues, net per room night |
$ |
9.78 |
|
$ |
10.06 |
|
$ |
(0.28 |
) |
(3 |
%) |
$ |
9.78 |
|
$ |
11.75 |
|
$ |
(1.97 |
) |
(17 |
%) |
||||||||
GIFT | ||||||||||||||||||||||||||||||
- Revenues, net |
$ |
46.4 |
|
$ |
47.7 |
|
$ |
(1.3 |
) |
(3 |
%) |
$ |
46.4 |
|
$ |
47.7 |
|
$ |
(1.3 |
) |
(3 |
%) |
||||||||
- Transactions |
|
331.7 |
|
|
381.5 |
|
|
(49.8 |
) |
(13 |
%) |
|
331.7 |
|
|
381.5 |
|
|
(49.8 |
) |
(13 |
%) |
||||||||
- Revenues, net per transaction |
$ |
0.14 |
|
$ |
0.12 |
|
$ |
0.01 |
|
12 |
% |
$ |
0.14 |
|
$ |
0.12 |
|
$ |
0.01 |
|
12 |
% |
||||||||
OTHER2 | ||||||||||||||||||||||||||||||
- Revenues, net1 |
$ |
62.7 |
|
$ |
72.9 |
|
$ |
(10.2 |
) |
(14 |
%) |
$ |
64.3 |
|
$ |
72.9 |
|
$ |
(8.6 |
) |
(12 |
%) |
||||||||
- Transactions1 |
|
9.9 |
|
|
14.6 |
|
|
(4.7 |
) |
(32 |
%) |
|
9.9 |
|
|
14.6 |
|
|
(4.7 |
) |
(32 |
%) |
||||||||
- Revenues, net per transaction |
$ |
6.33 |
|
$ |
5.00 |
|
$ |
1.33 |
|
27 |
% |
$ |
6.49 |
|
$ |
5.00 |
|
$ |
1.49 |
|
30 |
% |
||||||||
FLEETCOR CONSOLIDATED REVENUES | ||||||||||||||||||||||||||||||
- Revenues, net |
$ |
617.3 |
|
$ |
698.9 |
|
$ |
(81.5 |
) |
(12 |
%) |
$ |
652.2 |
|
$ |
709.7 |
|
$ |
(57.4 |
) |
(8 |
%) |
||||||||
1 Reflects certain reclassifications of revenue between product categories as the Company realigned its corporate payments business, resulting in reclassification of payroll paycard revenue from corporate payments to other. |
2 Other includes telematics, maintenance, food, transportation and payroll card 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 |
|
Year Ended |
||||||||||||||||||
2020 |
|
% |
|
2019 |
|
% |
|
2020 |
|
% |
|
2019 |
|
% |
|||||||
US |
$ |
378 |
61% |
$ |
421 |
60% |
$ |
1,468 |
61% |
$ |
1,595 |
60% |
|||||||||
|
91 |
15% |
|
111 |
16% |
|
344 |
14% |
|
428 |
16% |
||||||||||
|
70 |
11% |
|
71 |
10% |
|
263 |
11% |
|
275 |
10% |
||||||||||
Other |
|
79 |
13% |
|
96 |
14% |
|
314 |
13% |
|
351 |
13% |
|||||||||
Consolidated Revenues, net |
$ |
617 |
100% |
$ |
699 |
100% |
$ |
2,389 |
100% |
$ |
2,649 |
100% |
|||||||||
* Columns may not calculate due to rounding. | |||||||||||||||||||||
Revenue by Product Category*1 |
Three Months Ended |
|
Year Ended |
||||||||||||||||||
2020 |
|
% |
|
2019 |
|
% |
|
2020 |
|
% |
|
2019 |
|
% |
|||||||
Fuel |
$ |
260 |
42% |
$ |
299 |
43% |
$ |
1,057 |
44% |
$ |
1,173 |
44% |
|||||||||
Corporate Payments |
|
115 |
19% |
|
121 |
17% |
|
434 |
18% |
|
450 |
17% |
|||||||||
Tolls |
|
77 |
12% |
|
93 |
13% |
|
292 |
12% |
|
357 |
13% |
|||||||||
Lodging |
|
57 |
9% |
|
64 |
9% |
|
207 |
9% |
|
213 |
8% |
|||||||||
Gift |
|
46 |
8% |
|
48 |
7% |
|
154 |
6% |
|
180 |
7% |
|||||||||
Other |
|
63 |
10% |
|
73 |
10% |
|
244 |
10% |
|
276 |
10% |
|||||||||
Consolidated Revenues, net |
$ |
617 |
100% |
$ |
699 |
100% |
$ |
2,389 |
100% |
$ |
2,649 |
100% |
|||||||||
* Columns may not calculate due to rounding. | |||||||||||||||||||||
1 Reflects certain reclassifications of revenue between product categories as the Company realigned its corporate payments business, resulting in reclassification of payroll paycard revenue from corporate payments to other. |
Exhibit 4 | ||||||||||||
Segment Results | ||||||||||||
(In thousands) | ||||||||||||
Three Months Ended |
|
Year Ended |
||||||||||
2020 |
|
20191 |
|
2020 |
|
20191 |
||||||
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
||||||
Revenues, net: | ||||||||||||
$ |
405,597 |
$ |
451,002 |
$ |
1,581,547 |
$ |
1,708,546 |
|||||
|
90,526 |
|
112,067 |
|
344,248 |
|
427,921 |
|||||
International |
|
121,210 |
|
135,812 |
|
463,060 |
|
512,381 |
||||
$ |
617,333 |
$ |
698,881 |
$ |
2,388,855 |
$ |
2,648,848 |
|||||
Operating income: | ||||||||||||
$ |
175,693 |
$ |
192,298 |
$ |
547,912 |
$ |
754,528 |
|||||
|
43,593 |
|
48,758 |
|
148,055 |
|
175,642 |
|||||
International |
|
74,653 |
|
79,740 |
|
276,298 |
|
301,260 |
||||
$ |
293,939 |
$ |
320,796 |
$ |
972,265 |
$ |
1,231,430 |
|||||
Depreciation and amortization: | ||||||||||||
$ |
40,504 |
$ |
40,770 |
$ |
156,417 |
$ |
160,246 |
|||||
|
12,345 |
|
15,622 |
|
51,364 |
|
64,936 |
|||||
International |
|
11,836 |
|
12,118 |
|
47,021 |
|
49,028 |
||||
$ |
64,685 |
$ |
68,510 |
$ |
254,802 |
$ |
274,210 |
|||||
Capital expenditures: | ||||||||||||
$ |
12,836 |
$ |
14,215 |
$ |
48,426 |
$ |
44,238 |
|||||
|
6,807 |
|
6,057 |
|
17,116 |
|
18,330 |
|||||
International |
|
3,763 |
|
6,218 |
|
12,883 |
|
12,602 |
||||
$ |
23,406 |
$ |
26,490 |
$ |
78,425 |
$ |
75,170 |
|||||
1 The Company has historically had two reportable segments, |
Exhibit 5 | ||||||||||||||
Reconciliation of Non-GAAP Revenue and Key Performance Metric by Product to GAAP | ||||||||||||||
(In millions) | ||||||||||||||
(Unaudited) | ||||||||||||||
Revenues, net | Key Performance Metric | |||||||||||||
Three Months Ended |
Three Months Ended |
|||||||||||||
2020* | 2019* | 2020* | 2019* | |||||||||||
FUEL-TRANSACTIONS | ||||||||||||||
Pro forma and macro adjusted |
$ |
270.4 |
|
$ |
299.3 |
|
110.4 |
126.4 |
||||||
Impact of acquisitions/dispositions |
|
- |
|
|
- |
|
- |
- |
||||||
Impact of fuel prices/spread |
|
(6.3 |
) |
|
- |
|
- |
- |
||||||
Impact of foreign exchange rates |
|
(3.9 |
) |
|
- |
|
- |
- |
||||||
As reported |
$ |
260.2 |
|
$ |
299.3 |
|
110.4 |
126.4 |
||||||
CORPORATE PAYMENTS- SPEND | ||||||||||||||
Pro forma and macro adjusted |
$ |
114.4 |
|
$ |
121.4 |
|
17,585 |
18,630 |
||||||
Impact of acquisitions/dispositions |
|
- |
|
|
- |
|
- |
- |
||||||
Impact of fuel prices/spread |
|
(0.2 |
) |
|
- |
|
- |
- |
||||||
Impact of foreign exchange rates |
|
0.7 |
|
|
- |
|
- |
- |
||||||
As reported |
$ |
115.0 |
|
$ |
121.4 |
|
17,585 |
18,630 |
||||||
TOLLS- TAGS | ||||||||||||||
Pro forma and macro adjusted |
$ |
100.2 |
|
$ |
93.3 |
|
5.6 |
5.3 |
||||||
Impact of acquisitions/dispositions |
|
- |
|
|
- |
|
- |
- |
||||||
Impact of fuel prices/spread |
|
- |
|
|
- |
|
- |
- |
||||||
Impact of foreign exchange rates |
|
(23.7 |
) |
|
- |
|
- |
- |
||||||
As reported |
$ |
76.5 |
|
$ |
93.3 |
|
5.6 |
5.3 |
||||||
LODGING- ROOM NIGHTS | ||||||||||||||
Pro forma and macro adjusted |
$ |
56.6 |
|
$ |
75.0 |
|
5.8 |
6.4 |
||||||
Impact of acquisitions/dispositions |
|
- |
|
|
(10.8 |
) |
- |
- |
||||||
Impact of fuel prices/spread |
|
- |
|
|
- |
|
- |
- |
||||||
Impact of foreign exchange rates |
|
- |
|
|
- |
|
- |
- |
||||||
As reported |
$ |
56.6 |
|
$ |
64.2 |
|
5.8 |
6.4 |
||||||
GIFT- TRANSACTIONS | ||||||||||||||
Pro forma and macro adjusted |
$ |
46.4 |
|
$ |
47.7 |
|
331.7 |
381.5 |
||||||
Impact of acquisitions/dispositions |
|
- |
|
|
- |
|
- |
- |
||||||
Impact of fuel prices/spread |
|
- |
|
|
- |
|
- |
- |
||||||
Impact of foreign exchange rates |
|
- |
|
|
- |
|
- |
- |
||||||
As reported |
$ |
46.4 |
|
$ |
47.7 |
|
331.7 |
381.5 |
||||||
OTHER1- TRANSACTIONS | ||||||||||||||
Pro forma and macro adjusted |
$ |
64.3 |
|
$ |
72.9 |
|
9.9 |
14.6 |
||||||
Impact of acquisitions/dispositions |
|
- |
|
|
- |
|
- |
- |
||||||
Impact of fuel prices/spread |
|
- |
|
|
- |
|
- |
- |
||||||
Impact of foreign exchange rates |
|
(1.6 |
) |
|
- |
|
- |
- |
||||||
As reported |
$ |
62.7 |
|
$ |
72.9 |
|
9.9 |
14.6 |
||||||
FLEETCOR CONSOLIDATED REVENUES | ||||||||||||||
Pro forma and macro adjusted |
$ |
652.2 |
|
$ |
709.7 |
|
Intentionally Left Blank | |||||||
Impact of acquisitions/dispositions |
|
- |
|
|
(10.8 |
) |
||||||||
Impact of fuel prices/spread2 |
|
(6.5 |
) |
|
- |
|
||||||||
Impact of foreign exchange rates |
|
(28.4 |
) |
|
- |
|
||||||||
As reported |
$ |
617.3 |
|
$ |
698.9 |
|
||||||||
* Columns may not calculate due to rounding. | ||||||||||||||
1 Other includes telematics, maintenance, food, transportation and payroll card related businesses. | ||||||||||||||
2 Revenues reflect an estimated |
Exhibit 6 | ||||||||
RECONCILIATION OF NON-GAAP GUIDANCE MEASURES | ||||||||
(In millions, except per share amounts) | ||||||||
(Unaudited) | ||||||||
The following tables reconcile first quarter and full year 2021 financial guidance for net income to adjusted net income and adjusted net income per diluted share, at both ends of the range. | ||||||||
Q1 2021 GUIDANCE | ||||||||
Low* | High* | |||||||
Net income |
$ |
170 |
|
$ |
190 |
|
||
Net income per diluted share |
$ |
2.00 |
|
$ |
2.20 |
|
||
Stock based compensation |
|
14 |
|
|
14 |
|
||
Amortization of intangible assets, premium on receivables, deferred financing costs and discounts |
|
48 |
|
|
48 |
|
||
Other |
|
4 |
|
|
4 |
|
||
Total pre-tax adjustments |
|
66 |
|
|
66 |
|
||
Income tax impact of pre-tax adjustments |
|
(14 |
) |
|
(14 |
) |
||
Adjusted net income |
$ |
222 |
|
$ |
242 |
|
||
Adjusted net income per diluted share |
$ |
2.60 |
|
$ |
2.80 |
|
||
Diluted shares |
|
86 |
|
|
86 |
|
||
2021 GUIDANCE | ||||||||
Low* | High* | |||||||
Net income |
$ |
810 |
|
$ |
890 |
|
||
Net income per diluted share |
$ |
9.40 |
|
$ |
10.20 |
|
||
Stock based compensation |
|
71 |
|
|
71 |
|
||
Amortization of intangible assets, premium on receivables, deferred financing costs and discounts |
|
189 |
|
|
189 |
|
||
Other |
|
15 |
|
|
15 |
|
||
Total pre-tax adjustments |
|
275 |
|
|
275 |
|
||
Income tax impact of pre-tax adjustments |
|
(63 |
) |
|
(54 |
) |
||
Adjusted net income |
$ |
1,020 |
|
$ |
1,110 |
|
||
Adjusted net income per diluted share |
$ |
11.90 |
|
$ |
12.70 |
|
||
Diluted shares |
|
87 |
|
|
87 |
|
||
* Columns may not calculate due to rounding. | ||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20210204006088/en/
Investor Relations
Jim.Eglseder@fleetcor.com
Source: