Board Authorizes Additional $350 Million Share
Repurchase Program
FLEETCOR Technologies, Inc. (NYSE:FLT), a leading global
provider of commercial payment solutions, today reported financial
results for its third quarter ended September 30, 2017.
“We posted another good quarter, with revenue growth of 19% and
adjusted net income per diluted share growth of 13% compared to the
third quarter of 2016,” said Ron Clarke, chairman and chief
executive officer, FLEETCOR Technologies, Inc. “The
third quarter was quite busy for us; we closed the Cambridge
acquisition, we entered into a full outsourcing partner deal in
Russia and we repurchased $350 million of our shares. Post Q3 we
also closed CLS – a small lodging tuck-in.”
Financial Results for Third Quarter of 2017:
GAAP Results
- Total revenues increased 19.3% to
$577.9 million in the third quarter of 2017 compared to $484.4
million in the third quarter of 2016.
- Net income increased 56.5% to $202.8
million in the third quarter of 2017 compared to $129.6 million in
the third quarter of 2016.
- Net income per diluted share increased
60.4% to $2.18 in the third quarter of 2017 compared to $1.36 per
diluted share in the third quarter of 2016.
Non-GAAP Results1
- Adjusted revenues1 (revenues, net less
merchant commissions) increased 20.6% to $550.2 million in the
third quarter of 2017 compared to $456.2 million in the third
quarter of 2016.
- Adjusted net income1 increased 10.6% to
$202.8 million in the third quarter of 2017 compared to $183.3
million in the third quarter of 2016.
- Adjusted net income per diluted share1
increased 13.4% to $2.18 in the third quarter of 2017 compared to
$1.92 per diluted share in the third quarter of 2016.
Share Repurchase Program Update:
The Board of Directors authorized a $350 million increase in the
size of the Company’s previously announced share repurchase
program. With the increase, and giving effect to the Company’s $590
million of previous repurchases, the Company may repurchase up to
$510 million in shares of its common stock at any time prior to
February 1, 2019. In total, the Company purchased 2.4 million
shares in the third quarter of 2017 and a total of 4.1 million
shares of common stock since the beginning of the program.
Fiscal-Year 2017 Outlook:
“We are raising our full year guidance to reflect our third
quarter results and an expected favorable macro environment in the
fourth quarter,” said Eric Dey, chief financial officer, FLEETCOR
Technologies, Inc. “To remind everyone our third quarter actuals
reflect the impact of selling the Nextraq business in July, the
August acquisition of Cambridge, and the impact of a $350 million
share buyback in the third quarter. These changes collectively
resulted in a neutral third quarter adjusted net income per diluted
share impact.”
For 2017, FLEETCOR Technologies, Inc. financial guidance is as
follows:
- Total revenues between $2,225 million
and $2,255 million;
- GAAP net income between $608 million
and $618 million;
- GAAP net income per diluted share
between $6.50 and $6.60;
- Adjusted net income1 between $784
million and $794 million; and
- Adjusted net income per diluted share1
between $8.38 and $8.48.
FLEETCOR’s guidance assumptions for 2017 are as follows:
- Fourth quarter weighted fuel prices
equal to $2.57 per gallon average in the U.S. for those businesses
sensitive to the movement in the retail price of fuel.
- Market spreads returning to historical
levels, no change from prior guidance.
- Foreign exchange rates equal to the
seven day average as of October 5, 2017. A slight improvement from
prior guidance.
- Interest expense of $110 million in
2017.
- Fully diluted shares outstanding of
approximately 93.5 million shares.
- A fourth quarter tax rate of
29.2%.
- Fourth quarter guidance reflects the
sale of the Nextraq business and the acquisition of Cambridge in
the third quarter.
- Neutral impact in adjusted net income
from the CLS acquisition and new partner agreement in the fourth
quarter.
- No impact related to acquisitions or
material new partnership agreements not already disclosed.
___________________________________
1 Reconciliations of GAAP results to non-GAAP results are provided
in Exhibit 1 attached. Additional supplemental data is provided in
Exhibit 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 third quarter
2017 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) 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 13672093. The replay
will be available until November 8, 2017. 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," "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 macro- economic
conditions and estimated impact of these conditions on our
operations and financial results, expected timing of acquisitions
and dispositions, revenue and earnings guidance and assumptions
underlying financial guidance. 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 fuel price and spread
volatility; 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; changes in
credit risk of customers and associated losses; the actions of
regulators relating to payment cards or resulting from
investigations; failure to maintain or renew key business
relationships; failure to maintain competitive offerings; failure
to maintain or renew sources of financing; failure to complete, or
delays in completing, anticipated new customer arrangements or
acquisitions and the failure to successfully integrate or otherwise
achieve anticipated benefits from such customer arrangements or
acquired businesses; failure to successfully expand business
internationally, risks related to litigation, 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, 2016, and 10-Q for the quarter ended June 30, 2017
filed with the Securities and Exchange Commission on March 1, 2017
and August 8, 2017, respectively. 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
Adjusted revenue is calculated as revenues less merchant
commissions. 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, (c)
amortization of the premium recognized on the purchase of
receivables, (d) our proportionate share of amortization of
intangible assets at our equity method investment, (e) a
non-recurring net gain at our equity method investment, (f)
impairment of our equity method investment, (g) net gain on
disposition of business, (h) loss on early extinguishment of debt
and, (i) a non-recurring loss due to merger of entities. The
Company uses adjusted revenue as a basis to evaluate the Company’s
revenues, net of the commissions that are paid to merchants to
participate in our card programs. The commissions paid to merchants
can vary when market spreads fluctuate in much the same way as
revenues are impacted when market spreads fluctuate. The Company
believes this is a more effective way to evaluate the Company’s
revenue performance. We prepare adjusted net income to eliminate
the effect of items that we do not consider indicative of our core
operating performance. Adjusted revenues and adjusted net income
are supplemental measures of operating performance that do not
represent and should not be considered as an alternative to
revenues, 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 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
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 equity method investment
and business is 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 revenues 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 adjusted revenues, 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 provider
of commercial payment solutions. The Company helps businesses of
all sizes better control, simplify and secure payment of their
fuel, toll, lodging and other general payables. With its
proprietary payment acceptance networks, FLEETCOR provides
affiliated merchants with incremental sales and loyalty. FLEETCOR
serves businesses, partners and merchants in North America, Latin
America, Europe, and Australasia. For more information, please
visit www.FLEETCOR.com.
FleetCor Technologies, Inc. and
Subsidiaries Unaudited Consolidated Statements of Income
(In thousands, except per share amounts)
Three Months Ended September 30, Nine Months Ended
September 30, 2017 2016 2017 2016
Revenues, net $ 577,877 $ 484,426 $ 1,639,547 $ 1,316,593
Expenses: Merchant commissions 27,687 28,214 82,690 78,755
Processing 111,283 96,233 316,429 256,738 Selling 45,060 34,180
122,854 92,680 General and administrative 92,043 77,904 275,046
209,084 Depreciation and amortization 69,156 57,084 198,731 141,848
Other operating, net 11 (244 ) 49
(690 ) Operating income 232,637
191,055 643,748 538,178 Equity
method investment loss (income) 47,766 2,744 52,497 (2,247 ) Other
(income) expense, net (175,271 ) 293 (173,626 ) 1,056 Interest
expense, net 29,344 17,814 76,322 49,905 Loss on early
extinguishment of debt 3,296 -
3,296 - Total other (income) expense
(94,865 ) 20,851 (41,511 ) 48,714
Income before income taxes 327,502 170,204 685,259 489,464
Provision for income taxes 124,679 40,586
227,756 132,503 Net income $
202,823 $ 129,618 $ 457,503 $ 356,961
Basic earnings per share $ 2.23 $ 1.40 $ 4.99 $ 3.85 Diluted
earnings per share $ 2.18 $ 1.36 $ 4.87 $ 3.75 Weighted
average shares outstanding: Basic shares 90,751 92,631 91,619
92,604 Diluted shares 93,001 95,307 93,923 95,204
FleetCor Technologies, Inc. and
Subsidiaries Consolidated Balance Sheets (In
thousands, except share and par value amounts)
September 30, 2017 December 31, 2016
(Unaudited) Assets Current assets: Cash and
cash equivalents $ 834,756 $ 475,018 Restricted cash 183,515
168,752 Accounts and other receivables (less allowance for doubtful
accounts of $47,779 at September 30, 2017 and $32,506 at December
31, 2016) 1,606,921 1,202,009 Securitized accounts receivable -
restricted for securitization investors 794,000 591,000 Prepaid
expenses and other current assets 102,309
90,914 Total current assets 3,521,501
2,527,693 Property and equipment, net 168,065
142,504 Goodwill 4,644,559 4,195,150 Other intangibles, net
2,876,440 2,653,233 Investments 33,526 36,200 Other assets
86,203 71,952 Total assets $ 11,330,294
$ 9,626,732
Liabilities and Stockholders’
Equity Current liabilities: Accounts payable $ 1,506,488
$ 1,151,432 Accrued expenses 285,841 238,812 Customer deposits
731,501 530,787 Securitization facility 794,000 591,000 Current
portion of notes payable and lines of credit 808,507 745,506 Other
current liabilities 46,561 38,781
Total current liabilities 4,172,898
3,296,318 Notes payable and other obligations, less
current portion 2,933,976 2,521,727 Deferred income taxes 742,498
668,580 Other noncurrent liabilities 50,504
56,069 Total noncurrent liabilities 3,726,978
3,246,376 Commitments and contingencies
Stockholders’ equity: Common stock, $0.001 par value;
475,000,000 shares authorized, 121,837,990 shares issued and
89,558,913 shares outstanding at September 30, 2017; and
121,259,960 shares issued and 91,836,938 shares outstanding at
December 31, 2016 122 121 Additional paid-in capital 2,165,326
2,074,094 Retained earnings 2,676,224 2,218,721 Accumulated other
comprehensive loss (466,367 ) (666,403 ) Less treasury stock,
32,279,077 shares at September 30, 2017 and 29,423,022 shares at
December 31, 2016 (944,887 ) (542,495 ) Total
stockholders’ equity 3,430,418 3,084,038
Total liabilities and stockholders’ equity $
11,330,294 $ 9,626,732
FleetCor Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Cash Flows (In
thousands) Nine Months Ended September 30,
2017 2016 Operating activities Net
income $ 457,503 $ 356,961 Adjustments to reconcile net
income to net cash provided by operating activities:
Depreciation 35,096 25,706 Stock-based compensation 68,897 50,025
Provision for losses on accounts receivable 35,949 24,512
Amortization of deferred financing costs and discounts 5,411 5,568
Amortization of intangible assets 158,897 112,455 Amortization of
premium on receivables 4,738 3,687 Loss on early extinguishment of
debt 3,296 - Deferred income taxes (38,092 ) (23,566 ) Equity
method investment loss (income) 52,497 (2,247 ) Gain on disposition
of business (174,984 ) - Other non-cash operating income (49 ) (690
) Changes in operating assets and liabilities (net of
acquisitions): Restricted cash (12,105 ) (28,744 ) Accounts and
other receivables (512,594 ) (527,255 ) Prepaid expenses and other
current assets (14,065 ) (1,291 ) Other assets (15,378 ) (9,115 )
Accounts payable, accrued expenses and customer deposits
364,473 418,280 Net cash provided by operating
activities 419,490 404,286
Investing activities Acquisitions, net of cash
acquired (602,298 ) (1,331,079 ) Purchases of property and
equipment (49,459 ) (41,877 ) Proceeds from disposal of a business
316,501 - Other (6,327 ) 1,411 Net cash used
in investing activities (341,583 ) (1,371,545 )
Financing activities Proceeds from issuance of
common stock 20,192 18,620 Repurchase of common stock (402,393 )
(35,492 ) Borrowings on securitization facility, net 203,000 42,000
Deferred financing costs paid and debt discount (11,230 ) (2,272 )
Proceeds from notes payable 780,656 600,000 Principal payments on
notes payable (388,656 ) (85,125 ) Borrowings from revolver- A
Facility 845,000 1,105,107 Payments on revolver- A Facility
(804,808 ) (670,940 ) Borrowings on swing line of credit, net 7,800
5,188 Other 538 (673 ) Net cash provided by
financing activities 250,099 976,413
Effect of foreign currency exchange rates on cash
31,732 (50,871 ) Net increase (decrease) in
cash and cash equivalents 359,738 (41,717 ) Cash and cash
equivalents, beginning of period 475,018
447,152 Cash and cash equivalents, end of period $ 834,756
$ 405,435
Supplemental cash flow
information Cash paid for interest $ 79,144 $ 48,525
Cash paid for income taxes $ 257,349 $ 79,599
Exhibit
1 RECONCILIATION OF NON-GAAP MEASURES (In thousands,
except per share amounts) (Unaudited)
The
following table reconciles revenues, net to adjusted revenues:
Three Months Ended September 30, Nine Months Ended
September 30, 2017 2016 2017 2016
Revenues, net $ 577,877 $ 484,426 $ 1,639,547 $ 1,316,593
Merchant commissions 27,687 28,214
82,690 78,755 Total adjusted revenues $
550,190 $ 456,212 $ 1,556,857 $ 1,237,838
The following table reconciles net
income to adjusted net income and adjusted net income per diluted
share:*
Three Months Ended September 30, Nine
Months Ended September 30, 2017 2016 2017
2016 Net income $ 202,823 $ 129,618 $ 457,503 $ 356,961
Stock based compensation 24,654 17,405 68,897 50,025
Amortization of intangible assets 54,003 46,341 158,897 112,455
Amortization of premium on receivables 1,650 1,348 4,738 3,687
Amortization of deferred financing costs and discounts 1,611 1,917
5,411 5,568 Amortization of intangibles at equity method investment
2,965 2,406 8,341 7,533 Impairment of equity method investment
44,600 - 44,600 - Net gain on disposition of business (109,205 ) -
(109,205 ) - Loss on early extinguishment of debt 3,296 - 3,296 -
Non recurring loss due to merger of entities 2,028 - 2,028 - Non
recurring net gain at equity method investment - - - (10,845 )
Total pre-tax adjustments 25,602 69,417
187,003 168,423 Income tax impact of pre-tax adjustments at
the effective tax rate1 (25,656 ) (15,726 ) (69,711 ) (46,425 )
Adjusted net income $ 202,769 $
183,310 $ 574,795 $ 478,959 Adjusted net
income per diluted share $ 2.18 $ 1.92 $ 6.12 $ 5.03 Diluted
shares 93,001 95,307 93,923 95,204 * Columns may not
calculate due to impact of rounding. 1 Excludes the results of our
equity method investment on our effective tax rate, as results from
our equity method investment are reported within the Consolidated
Income Statements on a post-tax basis and no tax-over-book outside
basis differences related to our equity method investment reversed
during 2016 or are expected to reverse in 2017. Also excludes the
net gain realized upon our disposition of Nextraq, representing a
pretax gain of $175.0 million and tax on gain of $65.8 million. The
tax on the gain is included in "Net gain on disposition of
business".
Exhibit 2
Transaction Volume and Revenues Per
Transaction by Segment and by Product Category, 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 transaction, by segment.*
As Reported Three
Months Ended September 30, Nine Months Ended September
30, 2017 2016 Change % Change
2017 2016 Change % Change
NORTH
AMERICA
- Transactions5 398.4 370.1 28.3 8 % 1,301.1 1,214.3 86.8 7 % -
Revenues, net per transaction $ 0.91 $ 0.93 $ (0.02 ) (2 %) $ 0.80
$ 0.78 $ 0.01 2 % - Revenues, net $ 364.4 $ 345.9 $ 18.6 5 % $
1,037.4 $ 950.5 $ 86.8 9 %
INTERNATIONAL
- Transactions 280.7 127.4 153.3 120 % 823.0 233.3 589.6 253 % -
Revenues, net per transaction $ 0.76 $ 1.09 $ (0.33 ) (30 %) $ 0.73
$ 1.57 $ (0.84 ) (53 %) - Revenues, net $ 213.4 $ 138.6 $ 74.9 54 %
$ 602.2 $ 366.1 $ 236.1 65 %
FLEETCOR
CONSOLIDATED REVENUES
- Transactions5 679.1 497.5 181.6 37 % 2,124.1 1,447.6 676.4 47 % -
Revenues, net per transaction $ 0.85 $ 0.97 $ (0.12 ) (13 %) $ 0.77
$ 0.91 $ (0.14 ) (15 %) - Revenues, net $ 577.9 $ 484.4 $ 93.5 19 %
$ 1,639.5 $ 1,316.6 $ 323.0 25 %
The following
table presents revenue and revenue per transaction, by product
category.*
As Reported Pro Forma and Macro
Adjusted2 Three Months Ended September 30,
Three Months Ended September 30, 2017 2016
Change % Change
2017 3
2016 4
Change % Change
FUEL
CARDS
- Transactions5 119.6 112.5 7.1 6 % 119.6 113.6 6.0 5 % - Revenues,
net per transaction $ 2.31 $ 2.30 $ 0.01 0 % $ 2.29 $ 2.28 $ 0.01 0
% - Revenues, net $ 276.2 $ 258.8 $ 17.4 7 % $ 274.0 $ 259.5 $ 14.5
6 %
CORPORATE
PAYMENTS
- Transactions 10.9 10.0 0.9 9 % 10.9 10.2 0.7 7 % - Revenues, net
per transaction $ 6.63 $ 4.61 $ 2.02 44 % $ 6.58 $ 5.99 $ 0.58 10 %
- Revenues, net $ 72.2 $ 46.1 $ 26.1 57 % $ 71.7 $ 61.3 $ 10.4 17 %
TOLLS
- Transactions 231.0 81.1 149.8 185 % 231.0 225.0 5.9 3 % -
Revenues, net per transaction $ 0.36 $ 0.32 $ 0.04 13 % $ 0.35 $
0.30 $ 0.05 16 % - Revenues, net $ 82.9 $ 25.8 $ 57.1 221 % $ 80.8
$ 67.8 $ 13.0 19 %
LODGING
- Transactions 4.1 3.5 0.6 17 % 4.1 3.5 0.6 17 % - Revenues, net
per transaction $ 8.14 $ 8.04 $ 0.10 1 % $ 8.14 $ 8.04 $ 0.10 1 % -
Revenues, net $ 33.2 $ 28.1 $ 5.2 18 % $ 33.2 $ 28.1 $ 5.2 18 %
GIFT
- Transactions 294.1 269.5 24.6 9 % 294.1 269.5 24.6 9 % -
Revenues, net per transaction $ 0.19 $ 0.22 $ (0.03 ) (14 %) $ 0.19
$ 0.22 $ (0.03 ) (14 %) - Revenues, net $ 54.8 $ 58.3 $ (3.5 ) (6
%) $ 54.8 $ 58.3 $ (3.5 ) (6 %)
OTHER1
- Transactions5 19.4 20.8 (1.4 ) (7 %) 19.4 20.4 (1.0 ) (5 %) -
Revenues, net per transaction $ 3.01 $ 3.24 $ (0.22 ) (7 %) $ 2.99
$ 2.80 $ 0.20 7 % - Revenues, net $ 58.5 $ 67.4 $ (8.8 ) (13 %) $
58.1 $ 57.1 $ 1.0 2 %
FLEETCOR
CONSOLIDATED REVENUES
- Transactions5 679.1 497.5 181.6 37 % 679.1 642.2 36.8 6 % -
Revenues, net per transaction $ 0.85 $ 0.97 $ (0.12 ) (13 %) $ 0.84
$ 0.83 $ 0.01 2 % - Revenues, net $ 577.9
$ 484.4 $ 93.5 19 % $ 572.6
$ 532.1 $ 40.6 8 %
* Columns may not calculate due to impact of rounding. 1 Other
includes telematics, maintenance, food, and transportation related
businesses.
2 Pro forma and macro adjusted revenue is
a non-GAAP financial measure defined as revenues, net adjusted for
the impact of the macroeconomic environment and acquisitions and
dispositions and other one-time items. We use pro forma and macro
adjusted revenue as a basis to evaluate our organic growth. See
Exhibit 5 for a reconciliation of pro forma and macro adjusted
revenue by product, non-GAAP measures, to the GAAP equivalent.
3 2017 is adjusted to remove the impact of changes in the
macroeconomic environment to be consistent with the same period of
prior year, using constant fuel prices, fuel price spreads and
foreign exchange rates. 4 2016 is pro forma to include acquisitions
and exclude dispositions consistent with 2017 ownership. 5 2016 and
YTD 2017 transactions reflect immaterial corrections from
previously disclosed amounts for the prior period.
Exhibit 3 Revenues by Geography, Product and Source
(In millions) (Unaudited)
Revenue by
Geography*
Three Months Ended September 30, Nine Months Ended
September 30, 2017 % 2016 %
2017 % 2016 % US $
358
62
% $ 346 71 % $
1,031
63 % $ 951 72 % UK 61 11 % 56 12 % 174 11 % 175 13 % Brazil 101 17
% 43 9 % 287 17 % 78 6 % Other
58
10
% 40 8 %
148
9 % 113 9 % Consolidated Revenues, net $ 578 100 % $
484 100 % $ 1,640 100 % $ 1,317 100 % * Columns may not calculate
due to impact of rounding.
Revenue by
Product Category*
Three Months Ended September 30, Nine Months Ended
September 30,8 2017 % 2016 %
2017 % 2016 % Fuel Cards $ 276
48 % $ 259 53 % $ 815 50 % $ 741 56 % Corporate Payments 72 12 % 46
10 % 169 10 % 132 10 % Tolls 83 14 % 26 5 % 236 14 % 30 2 % Lodging
33 6 % 28 6 % 86 5 % 74 6 % Gift 55 9 % 58 12 % 144 9 % 138 10 %
Other 59 10 % 67 14 % 189 12 % 201 15 %
Consolidated Revenues, net $ 578 100 % $ 484 100 % $ 1,640
100 % $ 1,317 100 % * Columns may not calculate due to impact of
rounding.
Major Sources of
Revenue*
Three Months Ended September 30, Nine Months Ended
September 30, 8 2017 % 2016
% 2017 % 2016 % Customer
Processing and Program Revenue1 $ 288 50 % $ 218 45 % $ 781 48 % $
563 43 % Late Fees and Finance Charges2 34 6 % 31 6 % 105 6 % 86 7
% Miscellaneous Fees3 32 5 % 34 7 % 97 6 %
93 7 % 354 61 % 283 58 % 983 60 %
742 56 % Merchant Discount Revenue (Fuel)4 77 13 % 68 14 %
223 14 % 194 15 % Discount Revenue (NonFuel)5 45 8 % 40 8 % 130 8 %
116 9 % Tied to Fuel-Price Spreads6 53 9 % 53 11 % 165 10 % 145 11
% Program Revenue7 49 8 % 41 8 % 139 8 %
119 9 % 224 39 % 202 42 % 657 40 % 574 44 %
Consolidated Revenues,
net $ 578 100 % $ 484 100 % $ 1,640 100 % $ 1,317 100 % 1
Includes revenue from customers based on accounts, cards, devices,
transactions, load amounts and/or purchase amounts, etc. for
participation in our various fleet and workforce related programs;
as well as, revenue from partners (e.g., major retailers, leasing
companies, oil companies, petroleum marketers, etc.) for processing
and network management services. Primarily represents revenue from
North American trucking, lodging, prepaid benefits, telematics,
gift cards and toll related businesses. 2 Fees for late payment and
interest charges for carrying a balance charged to a customer. 3
Non-standard fees charged to customers based on customer behavior
or optional participation, primarily including high credit risk
surcharges, over credit limit charges, minimum processing fees,
printing and mailing fees, environmental fees, etc. 4 Interchange
revenue directly influenced by the absolute price of fuel and other
interchange related to fuel products. 5 Interchange revenue related
to nonfuel products. 6 Revenue derived from the difference between
the price charged to a fleet customer for a transaction and the
price paid to the merchant for the same transaction. 7 Revenue
derived primarily from the sale of equipment, software and related
maintenance to merchants. 8 Amounts shown for the nine months ended
September 30, 2017 and 2016 reflect immaterial corrections in
estimated allocation of revenue by product and sources of revenue
from previously disclosed amounts for the prior period. * We may
not be able to precisely calculate revenue by source, as certain
estimates were made in these allocations. Columns may not calculate
due to impact of rounding. This table reflects how management views
the sources of revenue and may not be consistent with prior
disclosure.
Exhibit 4 Segment Results (In thousands)
(Unaudited) Three Months Ended September 30,
Nine Months Ended September 30, 2017 2016
2017 2016 Revenues, net:1 North America $ 364,443 $
345,868 $ 1,037,386 $ 950,542 International 213,434
138,558 602,161 366,051 $ 577,877 $ 484,426 $
1,639,547 $ 1,316,593 Operating income:1 North America $
138,748 $ 135,760 $ 394,646 $ 367,221 International 93,889
55,295 249,102 170,957 $ 232,637 $ 191,055 $
643,748 $ 538,178 Depreciation and amortization:1 North
America $ 37,600 $ 32,739 $ 104,161 $ 96,351 International
31,556 24,345 94,570 45,497 $ 69,156 $ 57,084
$ 198,731 $ 141,848 Capital expenditures:1 North America $
9,167 $ 11,980 $ 30,901 $ 28,501 International 7,692
5,140 18,558 13,376 $ 16,859 $ 17,120 $ 49,459 $
41,877
1 The results from our Cambridge business
acquired in the third quarter of 2017, are reported in our North
America segment for their business in the United States and Canada
and within our International segment for their business in all
other countries outside of the United States and Canada.
Exhibit 5
Reconciliation of Non-GAAP Revenue and Transactions by Product
to GAAP* (In millions) (Unaudited)
Revenue Transactions Three Months Ended September
30, Three Months Ended September 30, 2017
2016 2017
2016 4
FUEL
CARDS
Pro forma and macro adjusted2,3 $ 274.0 $ 259.5 119.6 113.6 Impact
of acquisitions/dispositions - (0.7 ) - (1.0 ) Impact of fuel
prices/spread (0.6 ) - - - Impact of foreign exchange rates
2.9 - - - As reported $
276.2
$ 258.8 119.6 112.5
CORPORATE
PAYMENTS
Pro forma and macro adjusted2,3 $ 71.7 $ 61.3 10.9 10.2 Impact of
acquisitions/dispositions - (15.2 ) - (0.2 ) Impact of fuel
prices/spread 0.1 - - - Impact of foreign exchange rates 0.4
- - - As reported $ 72.2 $ 46.1
10.9 10.0
TOLLS
Pro forma and macro adjusted2,3 $ 80.8 $ 67.8 231.0 225.0 Impact of
acquisitions/dispositions - (42.0 ) - (143.9 ) Impact of fuel
prices/spread - - - - Impact of foreign exchange rates 2.1
- - - As reported $ 82.9 $ 25.8
231.0 81.1
LODGING
Pro forma and macro adjusted2,3 $ 33.2 $ 28.1 4.1 3.5 Impact of
acquisitions/dispositions - - - - Impact of fuel prices/spread - -
- - Impact of foreign exchange rates - -
- - As reported $ 33.2 $ 28.1 4.1 3.5
GIFT
Pro forma and macro adjusted2,3 $ 54.8 $ 58.3 294.1 269.5 Impact of
acquisitions/dispositions - - - - Impact of fuel prices/spread - -
- - Impact of foreign exchange rates - -
- - As reported $ 54.8 $ 58.3 294.1
269.5
OTHER1
Pro forma and macro adjusted2,3 $ 58.1 $ 57.1 19.4 20.4 Impact of
acquisitions/dispositions - 10.3 - 0.4 Impact of fuel prices/spread
- - - - Impact of foreign exchange rates 0.4 -
- - As reported $ 58.5 $ 67.4 19.4 20.8
FLEETCOR
CONSOLIDATED REVENUES
Pro forma and macro adjusted2,3 $ 572.6 $ 532.1 679.1 642.2 Impact
of acquisitions/dispositions - (47.6 ) - (144.7 ) Impact of fuel
prices/spread (0.5 ) - - - Impact of foreign exchange rates
5.8 - - - As reported $ 577.9 $
484.4 679.1 497.5
* Columns may not
calculate due to impact of rounding. 1 Other includes telematics,
maintenance, food, and transportation related businesses. 2 2016 is
pro forma to include acquisitions and exclude dispositions,
consistent with 2017 ownership. 3 2017 is adjusted to remove the
impact of changes in the macroeconomic environment to be consistent
with the same period of prior year, using constant fuel prices,
fuel price spreads and foreign exchange rates. 4 2016 transactions
reflect immaterial corrections from previously disclosed amounts
for the prior period.
Exhibit
6 RECONCILIATION OF NON-GAAP GUIDANCE MEASURES (In
millions, except per share amounts) (Unaudited)
The following table
reconciles 2017 financial guidance for net income to adjusted net
income and adjusted net income per diluted share, at both ends of
the range:
2017 GUIDANCE Low* High* Net income
$ 608 $ 618 Net income per diluted share $ 6.50 $ 6.60 Stock
based compensation 94 94 Amortization of intangible assets, premium
on receivables, deferred financing costs and discounts 229 229
Amortization of intangibles at equity method investment 8 8
Impairment of equity method investment 45 45 Net gain on
disposition of business (109 ) (109 ) Loss on early extinguishment
of debt 3 3 Non recurring loss due to merger of entities 2 2
Total pre-tax adjustments 272 272 Income tax impact
of pre-tax adjustments at the effective tax rate** (97 ) (97 )
Adjusted net income $ 784 $ 794
Adjusted net income per diluted share $ 8.38 $ 8.48 Diluted
shares 94 94 * Columns may not calculate due to impact of
rounding. ** Excludes the results of our equity method investment
on our effective tax rate, as results from our equity method
investment are reported within the Consolidated Income Statements
on a post-tax basis and no tax-over-book outside basis differences
related to our equity method investment reversed or are expected to
reverse in 2017. Also excludes the net gain realized upon our
disposition of Nextraq, representing a pretax gain of $175.0
million and tax on gain of $65.8 million. The tax on the gain is
included in "Net gain on disposition of business".
View source
version on businesswire.com: http://www.businesswire.com/news/home/20171101006716/en/
FLEETCOR Technologies,
Inc.Investor Relationsinvestor@fleetcor.com(770) 729-2017
FleetCor Technologies (NYSE:FLT)
Historical Stock Chart
From Apr 2024 to May 2024
FleetCor Technologies (NYSE:FLT)
Historical Stock Chart
From May 2023 to May 2024