FleetCor Reports Fourth Quarter and Full Year 2010 Financial Results

February 23, 2011

NORCROSS, Ga., Feb 23, 2011 (BUSINESS WIRE) -- FleetCor Technologies, Inc. (NYSE: FLT), a leading independent global provider of specialized payment products and services to businesses, commercial fleets, major oil companies, petroleum marketers and government fleets, today reported financial results for its fourth quarter and full year ended December 31, 2010.

"We are very pleased with our accomplishments in 2010. We achieved record financial performance, completed a successful initial public offering, and continued to make significant progress executing on our global growth initiatives," said Ron Clarke, chairman, president and chief executive officer, FleetCor Technologies, Inc. "Our recent success in winning new commercial fleet fuel cards business in Europe and Asia is clear evidence of our progress in executing on our global initiatives. The ability to leverage our GFN platform - our global industry standard fuel card system - meaningfully contributed to our ability to secure this important mandate."

The GAAP financial results below include the impact of the one-time compensation charge booked in the fourth quarter of 2010 associated with the initial public offering.

Financial results for the fourth quarter of 2010:

GAAP Results

Total revenue in the fourth quarter of 2010 increased 9.5% to $106.5 million compared to $97.3 million in 2009
Net income in the fourth quarter of 2010 decreased 29.8% to $17.5 million, or $0.22 per diluted share, compared to $24.9 million, or $0.31 per diluted share in 2009

Non GAAP Results

Total revenue in the fourth quarter of 2010 increased 3.3% to $106.5 million compared to $103.2 million in 2009 (which reflects the adoption of 2010 authoritative accounting guidance related to our asset securitization facility in 2009 results)
Adjusted net income in the fourth quarter of 2010 increased 37.4% to $40.0 million, or $0.49 per diluted share, compared to $29.1 million, or $0.36 per diluted share in 2009

"We are extremely pleased by our results for the first quarter as a public company," said Eric Dey, chief financial officer FleetCor Technologies, Inc. "We ended the year on a strong note and look forward to continuing our success in 2011."

Financial results for the full year of 2010:

GAAP Results

Total revenue in 2010 increased 22.5% to $433.8 million compared to $354.1 million in 2009
Net income in 2010 increased 21.2% to $107.9 million, or $1.34 per diluted share, compared to $89.1 million, or $1.13 per diluted share in 2009

Non GAAP Results

Total revenue in 2010 increased 13.8% to $433.8 million compared to $381.3 million in 2009 (which reflects the adoption of 2010 authoritative accounting guidance related to our asset securitization facility in 2009 results)
Adjusted net income in 2010 increased 38.1% to $143.6 million, or $1.78 per diluted share, compared to $103.9 million, or $1.32 per diluted share in 2009

Reconciliations of GAAP results to non GAAP results are provided in exhibit 1 attached. Additional supplemental data is provided in exhibit 2.

Recent Business Highlights

FleetCor completed its initial public offering in December 2010. The Company sold 430,961 shares of common stock in the offering and 14,145,289 shares were sold by certain of FleetCor's stockholders, including 1,901,250 shares pursuant to the underwriters' exercise of their over-allotment option.

On February 17, 2011 FleetCor announced that Shell, one of the world's leading fuel card issuers, has selected FleetCor to migrate Shell's fuel card system to a new processing platform in partnership with Logica, a leading technology and business service company. The project will extend across 35 countries in Europe and Asia.

"This win validates our ambition to provide the world's oil companies with a fuel card industry platform" said Mr. Clarke. "The benefits of scale and global learnings are anticipated to accrue to early adopters of the system. We are delighted Shell has chosen us and we will work closely with Logica to improve the performance of the Shell fuel card portfolio. While this contract is not expected to have a material impact on FleetCor's consolidated results of operations in the near term, we believe it is strategically very important, creating a partnership with Shell, and providing a live and scalable reference point for other outsourcing opportunities worldwide"

2011 Outlook

FleetCor Technologies, Inc. is introducing initial financial guidance for full year 2011.

Revenue between $460 million to $480 million
Adjusted net income between $155 million to $165 million
Adjusted net income per diluted share between $1.83 to $1.95

The Company's full year 2011 guidance includes the following:

Approximately $2 million of incremental cash operating costs for public company expenses
A 1.9% increase in our effective tax rate from 28.7% in 2010 to 30.6% in 2011
An increase of 3.9 million diluted shares outstanding from 80.8 million shares in 2010 to 84.7 million shares in 2011

If these incremental costs and shares had been incurred in 2010, the Company's full year 2010 Adjusted Net Income would have been $138.3 million, or $1.63 per diluted share.

The Company's full year 2011 guidance is presented on a constant currency basis and assumes similar macroeconomic and business conditions exist in 2011 as did in 2010. This guidance does not reflect the impact of any future acquisitions or material new partnership agreements.

Conference Call

The Company will host a conference call to discuss fourth quarter and full year 2010 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) 941-1427, or for international callers (480) 629-9664. A replay will be available one hour after the call and can be accessed by dialing (877) 870-5176 or (858) 384-5517 for international callers; the conference ID is 4413916. The replay will be available until Wednesday, March 2, 2011. 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" or "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 revenue and earnings guidance, assumptions underlying financial guidance, acceptance and implementation of the GFN platform, the anticipated benefits of the GFN system, the anticipated financial and operational impact of the Shell relationship, and management's plans for 2011 and confidence in prospects for growth. 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 delays or failures associated with implementation; fuel price and spread volatility; changes in credit risk of customers and associated losses; the actions of regulators relating to payment cards; failure to maintain or renew key business relationships; failure to maintain competitive offerings; failure to maintain or renew sources of financing; failure to successfully integrate acquired businesses; failure to successfully expand business internationally; 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, as well as the other risks and uncertainties identified under the caption "Risk Factors" in FleetCor's Registration Statement filed on Form S-1 with the Securities and Exchange Commission on November 30, 2010. 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

EBITDA is calculated as net income before the provision for income taxes, interest expense, net and depreciation and amortization. Adjusted EBITDA is calculated as EBITDA adjusted for the incremental interest expense attributable to our securitization facility and adjusted to exclude the impact of the onetime compensation charge booked in the fourth quarter of 2010 associated with our initial public offering. Adjusted net income is calculated as net income, adjusted to eliminate (a) stock-based compensation expense related to share-based compensation awards, (b) amortization of deferred financing costs and intangible assets and (c) amortization of the premium recognized on the purchase of receivables. We prepare adjusted net income to eliminate the effect of items that we do not consider indicative of our core operating performance. EBITDA, adjusted EBITDA and adjusted net income are supplemental measures of operating performance that do 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 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 the one-time non-cash compensation expense associated with the IPO does not adequately reflect the company's true results of operations, therefore, we have also presented results that exclude this charge from operating expenses, adjusted EBITDA, income before income taxes, provision for income tax, and net income. We also believe that amortization expenses 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.

Management uses EBITDA, adjusted EBITDA 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 EBITDA, Adjusted EBITDA and adjusted net income are used by 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, The Global Fleet Card Company, is a leading independent global provider of specialized payment products and services to businesses, commercial fleets, major oil companies, petroleum marketers and government entities. FleetCor's payment programs enable businesses to better manage and 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 18 countries in North America, Europe, Africa and Asia. For more information, please visit www.fleetcor.com.


FleetCor Technologies, Inc. and subsidiaires
GAAP Consolidated Statements of Income
(In thousands, except earnings per share amounts)

		4th Qtr								December 31
		Unaudited				Unaudited				Unaudited				Audited
		2010				2009				2010				2009
Revenues, net	$		106,547		$		97,312		$		433,841		$		354,073

Expenses:
Merchant commissions			9,502				10,849				49,050				39,709
Processing			17,078				14,898				69,687				57,997
Selling			9,576				9,109				32,731				30,579
General and administrative			38,111				13,124				78,135				51,375
			32,280				49,332				204,238				174,413
Depreciation and amortization			8,506				8,133				33,745				28,368
Operating income			23,774				41,199				170,493				146,045
Other income, net			(553	)			(564	)			(1,319	)			(933	)
Interest expense, net			4,181				4,340				20,532				17,363
Total other expense			3,628				3,776				19,213				16,430
Income before income taxes			20,146				37,423				151,280				129,615
Provision for income taxes			2,632				12,475				43,384				40,563
Net income	$		17,514		$		24,948		$		107,896		$		89,052


Diluted earnings per share		$	0.22			$	0.31			$	1.34			$	1.13
Diluted shares			80,931				81,575				80,751				78,854


FleetCor Technologies, Inc. and subsidiaries
Consolidated Balance Sheets
(In thousands)



		(Unaudited)
		December 31, 2010			December 31, 2009

Assets

Current assets:
Cash and cash equivalents	$	114,804		$	84,701
Restricted cash		62,341			67,979
Accounts receivable		258,452			163,461
Securitized accounts receivable - restricted for securitization investors		144,000			-
Prepaid expenses and other current assets		33,191			24,113
Deferred income taxes		4,484			6,988

Total current assets		617,272			347,242

Property and equipment		83,013			72,091
Less accumulated depreciation and amortization		(56,195	)		(44,868	)

Net property and equipment		26,818			27,223

Goodwill		596,115			590,336
Other intangibles, net		193,861			197,430
Other assets		42,790			47,314

Total assets	$	1,476,856		$	1,209,545

Liabilities and Stockholders' Equity

Current liabilities:
Accounts payable	$	177,644		$	175,578
Accrued expenses		41,914			46,746
Customer deposits		78,685			75,796
Securitization facility		144,000			-
Current portion notes payable and other obligations		11,617			22,621

Total current liabilities		453,860			320,741

Notes payable and other obligations, less current portion		313,796			328,930
Deferred income taxes		83,255			85,825

Total noncurrent liabilities		397,051			414,755

Commitments and contingencies

Stockholders' equity:
Convertible preferred stock		-			330,654
Preferred stock		-			-
Common stock		111			66
Additional paid-in capital		421,992			94,996
Retained earnings		387,163			235,726
Accumulated other comprehensive loss		(8,101	)		(12,173	)
Less treasury stock		(175,220	)		(175,220	)

Total stockholders' equity		625,945			474,049

Total liabilities and stockholders' equity	$	1,476,856		$	1,209,545


Exhibit 1
RECONCILIATION OF NON-GAAP MEASURES
(In thousands, except earnings per share amounts)


Managed Revenue

Although bad debt and interest associated with our securitization facility were reported in revenue for the periods
prior to January 1, 2010, we monitored these costs on a managed basis. The following table presents certain
statement of income items adjusted for the impact of the new accounting guidance related to our
securitization facility.


		4th Quarter 2010							4th Quarter 2009						Year Ended 2010							Year Ended 2009
		As Reported		Adjust- ments			As Adjusted		As Reported		Adjust- ments		As Adjusted		As Reported		Adjust- ments			As Adjusted		As Reported		Adjust- ments		As Adjusted

Net revenues	$	106,547	$	-		$	106,547	$	97,312	$	5,849	$	103,161	$	433,841	$	-		$	433,841	$	354,073	$	27,200	$	381,273
Processing expense		17,078		-			17,078		14,898		4,605		19,503		69,987		-			69,987		57,997		21,900		79,897
Interest expense, net		4,181		-			4,181		4,340		1,244		5,584		20,532		-			20,532		17,363		5,300		22,663




Adjusted for one time non cash charge associated with initial public offering and impact of the new accounting guidance related to our securitization facility



		4th Quarter 2010							4th Quarter 2009						Year Ended 2010							Year Ended 2009
		As Reported		Adjust- ments			As Adjusted		As Reported		Adjust- ments		As Adjusted		As Reported		Adjust- ments			As Adjusted		As Reported		Adjust- ments		As Adjusted

Operating expenses¹	$	74,267	$	(23,771	)	$	50,496	$	47,980	$	4,605	$	52,585	$	229,603	$	(23,771	)	$	205,832	$	179,660	$	21,900	$	201,560
Income before income taxes		20,146		23,771			43,917		37,423		-		37,423		151,280		23,771			175,051		129,615		-		129,615
Provision for income taxes		2,632		8,245			10,877		12,475		-		12,475		43,384		8,245			51,629		40,563		-		40,563
Net income		17,514		15,526			33,040		24,948		-		24,948		107,896		15,526			123,422		89,052		-		89,052

¹Operating expense is calculated as the sum of merchant commissions, processing, selling, and general and administrative expenses


The following table reconciles net income to EBITDA and adjusted EBITDA:

		4th Quarter			4th Quarter			Year Ended			Year Ended
		2010			2009			2010			2009

Net income	$	17,514		$	24,948		$	107,896		$	89,052
Provision for income taxes		2,632			12,475			43,384			40,563
Interest expense, net		4,181			4,340			20,532			17,363
Depreciation and amortization		8,506			8,133			33,745			28,368
EBITDA		32,833			49,896			205,557			175,346
Incremental interest expense		-			1,244			-			5,300		(a)
One time stock compensation booked in Q4 associated with initial public offering		23,771						23,771					(a)
Adjusted EBITDA	$	56,604		$	51,140		$	229,328		$	180,646


(a) Adjusted EBITDA is calculated as EBITDA adjusted for the incremental interest expense attributable to our securitiziation facility and a one-time non cash stock compensation charge associated with the initial public offering.


The following table reconciles net income to adjusted net income:

		4th Quarter			4th Quarter			Year Ended			Year Ended
		2010			2009			2010			2009
Net income	$	17,514		$	24,948		$	107,896		$	89,052

Stock based compensation		25,093			667			27,546			2,666
Amortization of intangible assets		4,453			4,118			17,203			13,900
Amortization of premium on receivables		816			815			3,263			3,257
Amortization of deferred financing costs		536			673			2,016			1,842

Total pre-tax adjustments		30,898			6,273			50,028			21,665

Income tax impact of pre-tax adjustments at the effective tax rate		(8,395	)		(2,090	)		(14,340	)		(6,779	)

Adjusted net income	$	40,017		$	29,131		$	143,584		$	103,938
Adjusted net income per diluted share		$ 0.49			$ 0.36			$ 1.78			$ 1.32

Diluted shares		80,931			81,575			80,751			78,854


The following table reconciles provision for bad debt to managed provision for bad debt:

		4th Quarter			4th Quarter			Year Ended			Year Ended
		2010			2009			2010			2009
Provision for bad debt included in:
Processing expense	$	3,782		$	2,569		$	18,882		$	10,693
Revenues, net		-			4,600			-			21,900
Managed provision for bad debts		3,782			7,169			18,882			32,593
Managed provision for bad debts as a percentage of gross billed revenue		0.21	%		0.43	%		0.31	%		0.56	%



The following table reconciles 2010 actuals to 2010 proforma:

		Year Ended			2011			Proforma
		2010			Changes¹			2010
Income before income taxes	$	151,280		$	(14,000	)	$	137,280
Provision for income taxes		43,384			(1,376	)		42,008
Net income		107,896			(12,624	)		95,272

Stock based compensation		27,546			12,000			39,546
Amortization of intangible assets		17,203			-			17,203
Amortization of premium on receivables		3,263			-			3,263
Amortization of deferred financing costs		2,016			-			2,016

Total pre-tax adjustments		50,028			12,000			62,028

Income tax impact of pre-tax adjustments at the effective tax rate		(14,340	)		(4,641	)		(18,981	)

Adjusted net income	$	143,584		$	(5,265	)	$	138,318
Adjusted net income per diluted share		$ 1.78						$ 1.63

Diluted shares		80,751						84,700

¹2011 changes include approximately $2m in incremental cash operatings costs for public company expenses, $12 million of non-cash compensation expenses associated with our new plan, and a 1.9% increase in our effective tax rate from 28.7% in 2010 to 30.6% in 2011. Additionally, 2011 will show an increase of 3.9 million diluted shares outstanding, from 80.8 million in 2010 to 84.7 million in 2011.


Exhibit 2
Transaction Volume, Revenue Per Transaction and Revenue by Segment
(in thousands except revenue per transaction)

			4th Quarter								Year Ended
			2010		2009¹	Delta		%Delta			2010		2009¹	Delta		%Delta

	North America
	- Transactions		36,640		36,388	252		0.7	%		147,259		143,545	3,714		2.6	%
	- Revenue per transaction	$	1.87	$	1.82	0.05		2.5	%	$	1.95	$	1.77	0.18		10.2	%
	- Revenue	$	68,347	$	66,215	2,132		3.2	%	$	287,794	$	254,573	33,221		13.0	%

	International
	- Transactions		12,211		12,781	(570	)	-4.5	%		48,858		49,678	(820	)	-1.7	%
	- Revenue per transaction		3.13		2.89	0.24		8.2	%		2.99		2.55	0.44		17.2	%
	- Revenue		38,200		36,941	1,259		3.4	%		146,047		126,700	19,347		15.3	%


	Total
	- Transactions		48,851		49,168	(317	)	-0.6	%		196,117		193,223	2,894		1.5	%
	- Revenue per transaction	$	2.18	$	2.10	0.08		3.9	%	$	2.21	$	1.97	0.24		12.1	%
	- Revenue	$	106,547	$	103,156	3,380		3.3	%	$	433,841	$	381,273	52,568		13.8	%



	International (excluding non-renewed contract)
	- Transactions		12,132		11,080	1,052		9.5	%		45,210		42,803	2,407		5.6	%
	- Revenue per transaction		3.15		3.31	(0.16	)	-4.8	%		3.21		2.93	0.28		9.6	%
	- Revenue		38,188		36,625	1,563		4.3	%		145,208		125,436	19,772		15.8	%


	Total
	- Transactions		48,773		47,468	1,305		2.7	%		192,468		186,348	6,120		3.3	%
	- Revenue per transaction	$	2.18	$	2.17	0.02		0.8	%	$	2.25	$	2.04	0.21		10.3	%
	- Revenue	$	106,534	$	102,851	3,683		3.6	%	$	432,999	$	380,017	52,982		13.9	%



	¹2009 revenue reflects revenue on a managed basis, see Exhibit 1 for reconciliation

SOURCE: FleetCor Technologies, Inc.

FleetCor Technologies, Inc.
Investor Relations
770-729-2017
investor@fleetcor.com

Release Details

FleetCor Reports Fourth Quarter and Full Year 2010 Financial Results