Corpay, Inc. (NYSE: CPAY), a global S&P 500 corporate
payments company announced today its Chief Financial Officer
(“CFO”), Tom Panther, will be leaving effective March 15, 2025, to
become the CFO of the National Christian Foundation. The company
has initiated an executive search to identify a new CFO.
“I’d like to thank Tom for his many contributions to Corpay. We
wish him the very best as he makes the career pivot to a Christian
ministry vocation, and we will work closely together as part of the
transition to his successor,” said Ron Clarke, Chairman and
CEO.
“It has been a tremendous experience serving as Corpay’s CFO
along-side its talented employees. Corpay is well-positioned to
capitalize on the tremendous opportunities in corporate payments. I
look forward to redirecting my career with the National Christian
Foundation to help it advance its ministry. In the meantime, I am
committed to ensuring a smooth transition to Corpay’s next CFO,”
said Tom Panther.
Finally, the company currently expects its fourth quarter 2024
organic revenue & earnings results to be in line with the
guidance provided on November 7, 2024.
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, certain 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 certain 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.
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 Corpay.
EBITDA is defined as earnings before interest, income taxes,
interest expense, net, other expense (income), depreciation and
amortization, loss on extinguishment of debt, investment loss/gain
and other operating, net. EBITDA margin is defined as EBITDA as a
percentage of revenue.
Management uses adjusted net income attributable to Corpay,
adjusted net income per diluted share attributable to Corpay,
organic revenue growth and EBITDA:
- 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 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 electronic
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., domestic and international
payments). This results in our customers saving time and ultimately
spending less. It pays to Corpay. To learn more visit
www.corpay.com
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version on businesswire.com: https://www.businesswire.com/news/home/20241202127736/en/
Investor Relations Jim Eglseder, 770-417-4697
Jim.Eglseder@corpay.com
Media Relations Chad Corley, 770-729-5021
Chad.Corley@corpay.com
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