Corpay, Inc. (NYSE: CPAY), a corporate payments company, today
announced certain preliminary financial results for its third
quarter ended September 30, 2024.
Preliminary Financial Results for Third Quarter of
2024:
- Revenue is expected to be $1.029 billion
- Same store sales remained stable sequentially in the third
quarter, and were essentially flat
- Segment results in line with our expectations
- Earnings per diluted share is expected to be $3.90
- Adjusted earnings per diluted share is expected to be
$5.001
- Reiterating full year adjusted earnings per share guidance of
$19.001, at the mid-point provided on August 7, 2024
“We’re pleased that our third quarter results finished at the
higher end of our revenue and earnings guidance ranges. Our
confidence in our fourth quarter outlook is higher today than in
August, and calls for low double digit organic revenue growth, and
an annualized Cash EPS exit run-rate above $21.00,” said Ron
Clarke, chairman and chief executive officer, Corpay, Inc.
The Company will hold its regularly scheduled earnings call at
5:00 pm on November 7, 2024.
The Company also filed today a Form 8-K related to a
modification to the CEO 2021 performance option grant.
Preliminary Results:
The preliminary estimated financial results for the quarter
ended September 30, 2024 included in this press release are
preliminary, unaudited and subject to completion, and may change as
a result of management’s continued review. Such preliminary results
are subject to the finalization of quarter-end financial and
accounting procedures. While carrying out such procedures, Corpay
may identify items that would require it to make adjustments to the
preliminary estimates of financial results set forth herein. As a
result, Corpay’s actual financial results could differ than the
information set forth herein and such differences could be
material.
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 Corpay’s beliefs,
assumptions, 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.
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 our ability
to successfully execute our strategic plan, manage our growth and
achieve our performance targets; the impact of macroeconomic
conditions, including any recession that has occurred or may occur
in the future, and whether expected trends, including retail fuel
prices, fuel price spreads, fuel transaction patterns, electric
vehicle, and retail lodging price trends develop as anticipated and
we are able to develop successful strategies in light of these
trends; our ability to attract new and retain existing partners,
fuel merchants, and lodging providers, their promotion and support
of our products, and their financial performance; the failure of
management assumptions and estimates, as well as differences in,
and changes to, economic, market, interest rate, interchange fees,
foreign exchange rates, and credit conditions, including changes in
borrowers’ credit risks and payment behaviors; the risk of higher
borrowing costs and adverse financial market conditions impacting
our funding and liquidity, and any reduction in our credit ratings;
our ability to successfully manage our credit risks and the
sufficiency of our allowance for expected credit losses; our
ability to securitize our trade receivables; the occurrence of
fraudulent activity, data breaches or failures of our information
security controls or cybersecurity-related incidents that may
compromise our systems or customers’ information; any disruptions
in the operations of our computer systems and data centers; the
international operational and political risks and compliance and
regulatory risks and costs associated with international
operations; the impact of international conflicts, including
between Russia and Ukraine, as well as within the Middle East, on
the global economy or our business and operations; our ability to
develop and implement new technology, products, and services; any
alleged infringement of intellectual property rights of others and
our ability to protect our intellectual property; the regulation,
supervision, and examination of our business by foreign and
domestic governmental authorities, as well as litigation and
regulatory actions, including the lawsuit filed by the Federal
Trade Commission (FTC); the impact of regulations and related
requirements relating to privacy, information security and data
protection; derivative and hedging activities; use of third-party
vendors and ongoing third-party business relationships; and failure
to comply with anti-money laundering (AML) and anti-terrorism
financing laws; changes in our senior management team and our
ability to attract, motivate and retain qualified personnel
consistent with our strategic plan; tax legislation initiatives or
challenges to our tax positions and/or interpretations, and state
sales tax rules and regulations; the risks of mergers, acquisitions
and divestitures, including, without limitation, the related time
and costs of implementing such transactions, integrating operations
as part of these transactions and possible failures to achieve
expected gains, revenue growth and/or expense savings from such
transactions; our ability to remediate material weaknesses and the
ongoing effectiveness of internal control over financial reporting;
our restatement of prior quarterly financial statements discussed
in our Annual Report of Form 10-K for the year ended December 31,
2024 (the "2023 Form 10-K") may affect investor confidence and
raise reputational issues and may subject us to additional risks
and uncertainties, including increased professional costs and the
increased possibility or legal proceedings and regulatory
inquiries, as well as the other risks and uncertainties identified
under the caption "Risk Factors" in the 2023 Form 10-K filed with
the Securities and Exchange Commission (“SEC”) on February 29, 2024
and subsequent filings with the SEC made by us. These factors could
cause our actual results and experience to differ materially from
any forward-looking statement made herein. The forward-looking
statements included in this press release are made only as of the
date hereof and we do not undertake, and specifically disclaim, any
obligation to update any such statements as a result of new
information, future events or developments, except as specifically
stated or to the extent required by law. You may access Corpay’s
SEC filings for free by visiting the SEC web site at
www.sec.gov.
About Non-GAAP Financial Measures:
This press release includes non-GAAP financial measures, which
are used by the Company as supplemental measures to evaluate its
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.
The Company refers to free cash flow, cash net income and
adjusted net income attributable to Corpay interchangeably, a
non-GAAP financial measure. Adjusted net income attributable to
Corpay is calculated as net income attributable to Corpay, adjusted
to eliminate (a) non-cash stock based compensation expense related
to stock based compensation awards, (b) amortization of deferred
financing costs, discounts, intangible assets, amortization of the
premium recognized on the purchase of receivables, and amortization
attributable to the Company's noncontrolling interest (c)
integration and deal related costs, and (d) other non-recurring
items, including unusual credit losses, the impact of discrete tax
items, the impact of business dispositions, impairment charges,
asset write-offs, restructuring costs, loss on extinguishment of
debt, and legal settlements and related legal fees. We adjust net
income for the tax effect of adjustments using our effective income
tax rate, exclusive of discrete tax items. We calculate adjusted
net income attributable to Corpay and adjusted net income per
diluted share attributable to Corpay to eliminate the effect of
items that we do not consider indicative of our core operating
performance.
Adjusted net income attributable to Corpay and adjusted net
income per diluted share attributable to Corpay 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 U.S.
generally accepted accounting principles, or U.S. GAAP. 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. Integration and deal related
costs represent business acquisition transaction costs,
professional services fees, short-term retention bonuses and system
migration costs, etc., that are not indicative of the performance
of the underlying business. We also believe that certain expenses,
discrete tax items, gains on business disposition, recoveries (e.g.
legal settlements, write-off of customer receivable, etc.), gains
and losses on investments, and impairment charges do not
necessarily reflect how our investments and business are
performing. We adjust net income for the tax effect of each of
these adjustments items using the effective tax rate during the
period, exclusive of discrete tax items.
Management uses adjusted net income per diluted share
attributable to Corpay:
- as a measurement 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 Corpay
Corpay (NYSE: CPAY) is a global S&P 500 corporate payments
company that helps businesses and consumers manage and pay expenses
in a simple, controlled manner. Corpay’s suite of modern payment
solutions help its customers better manage vehicle-related expenses
(e.g. fueling and parking), travel expenses (e.g. hotel bookings)
and accounts payable (e.g. paying vendors). This results in our
customers saving time and ultimately spending less. Corpay –
Payments made easy. For more information, please visit
www.corpay.com.
1 Reconciliation of expected GAAP results to non-GAAP results is
provided in Exhibit 1. A reconciliation of GAAP guidance to
non-GAAP guidance was previously provided on Form 8-K, as filed
with the SEC on August 7, 2024.
Exhibit 1
RECONCILIATION OF NON-GAAP
MEASURES
(In millions, except shares
and per share amounts)
(Unaudited)
The following table reconciles net income
attributable to Corpay and net income attributable to Corpay per
diluted share to adjusted net income attributable to Corpay and
adjusted net income per diluted share attributable to Corpay:*
Three Months Ended September
30,
2024
Net income attributable to Corpay
$
276
Net income per diluted share attributable
to Corpay
$
3.90
Stock based compensation
29
Amortization1
61
Other2
12
Total pre-tax adjustments
$
102
Income taxes3
(23
)
Adjusted net income attributable to
Corpay
$
355
Adjusted net income per diluted share
attributable to Corpay
$
5.00
Diluted shares
71
1 Includes consolidated amortization
related to intangible assets, premium on receivables, deferred
financing costs and debt discounts.
2 Includes losses and gains on foreign
currency transactions, legal expenses, and removes the amortization
attributable to the Company's noncontrolling interest.
3 Represents provision for income taxes of
pre-tax adjustments.
* Columns may not calculate due to
rounding.
Exhibit 2
RECONCILIATION OF NON-GAAP
GUIDANCE MEASURES
(In millions, except per share
amounts)
(Unaudited)
The following table reconciles
full year 2024 financial guidance for net income to adjusted net
income and adjusted net income per diluted share, at both ends of
the range:
2024 GUIDANCE
Low*
High*
Net income
$
1,056
$
1,086
Net income per diluted share
$
14.77
$
15.07
Stock based compensation
108
108
Amortization
235
235
Other
$
42
$
42
Total pre-tax adjustments
$
385
$
385
Income taxes
(91
)
(91
)
Adjusted net income
$
1,350
$
1,380
Adjusted net income per diluted share
$
18.85
$
19.15
Diluted shares
72
72
* Columns may not calculate due to
rounding.
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version on businesswire.com: https://www.businesswire.com/news/home/20241028357855/en/
Investor Relations Jim Eglseder, 770-417-4697
Jim.Eglseder@corpay.com
Media Relations Chad Corley, 770-729-5021
Chad.Corley@corpay.com
Corpay (NYSE:CPAY)
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