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FLEETCOR Reports First Quarter 2023 Financial Results

FLEETCOR Technologies, Inc. (NYSE: FLT), a leading global business payments company, today reported financial results for its first quarter ended March 31, 2023.

“We reported a very good first quarter, with fundamental trends driving reported and organic revenue growth of 14% and 12%, respectively,” said Ron Clarke, chairman and chief executive officer, FLEETCOR Technologies, Inc. “Broad-based strength in new sales, up 31%, and stable customer retention of 91%, drove the results. EBITDA margins were up 100 bps, as a result of tighter expense control, as we focus on improving margins while growing our business,” continued Ron. “Our first quarter performance is a great start to the year, and we are raising our guidance as a result of this over performance.”

Financial Results for First Quarter of 2023:

GAAP Results

  • Revenues increased 14% to $901.3 million in the first quarter of 2023, compared to $789.2 million in the first quarter of 2022.
  • Net income was relatively flat at $214.8 million in the first quarter of 2023, compared to $218.0 million in the first quarter of 2022, largely due to higher interest rates resulting in a four times increase in interest expense over the first quarter of 2022.
  • Net income per diluted share increased 5% to $2.88 in the first quarter of 2023, compared to $2.75 per diluted share in the first quarter of 2022.

Non-GAAP Results1

  • Adjusted net income1 decreased 2% to $283.1 million in the first quarter of 2023, compared to $289.7 million in the first quarter of 2022.
  • Adjusted net income per diluted share1 increased 4% to $3.80 in the first quarter of 2023, compared to $3.65 per diluted share in the first quarter of 2022.
  • Adjusted net income per diluted share increased 17% at constant interest rates, compared to the first quarter of 2022.

“Our first quarter results came in ahead of the expectations we provided in February, for both revenue and EBITDA,” said Tom Panther, chief financial officer, FLEETCOR Technologies, Inc. “Our businesses demonstrated positive momentum as a result of strong sales and our recent investments in distribution and product capabilities. In the first quarter, we closed the Global Reach Group acquisition, which expands our scale and international footprint in our cross border business.”

Updated Fiscal Year 2023 Outlook:

“The outlook for the balance of the year remains positive, as we expect our strong business trends from the first quarter to continue. Despite the notable revenue beat in Q1, our increased guidance is limited to the over performance in the first quarter in order to maintain discipline in context of macro economic uncertainty. Specifically, our guidance assumptions include fuel prices and foreign exchange rates in aggregate that are neutral compared with our original outlook, and the credit environment to improve. We remain focused on controlling expenses, and are confident in our ability to exit the year with EBITDA margins increasing 200 to 250 basis points versus the fourth quarter of the prior year,” concluded Panther.

For fiscal year 2023, FLEETCOR Technologies, Inc.'s updated financial guidance1 is as follows:

  • Total revenues between $3,820 million and $3,860 million;
  • Net income between $993 million and $1,033 million;
  • Net income per diluted share between $13.35 and $13.75;
  • Adjusted net income between $1,263 million and $1,303 million; and
  • Adjusted net income per diluted share between $16.95 and $17.35.

FLEETCOR’s guidance assumptions are as follows:

For the balance of the year:

  • Weighted average U.S. fuel prices of $3.99 per gallon;
  • Market fuel spreads slightly lower than the 2022 average;
  • Foreign exchange rates equal to the month to date average of April 26, 2023; and
  • Includes results from our fuel business in Russia.

For the full year:

  • Interest expense between $310 million and $330 million;
  • Approximately 75 million fully diluted shares outstanding;
  • A tax rate of 26% to 27%; and
  • No impact related to acquisitions or dispositions not already closed.

Second Quarter of 2023 Outlook:

Second quarter total revenues are expected to be between $930 million and $950 million, and adjusted net income per diluted share between $4.02 and $4.22. Our second quarter outlook anticipates absorbing approximately $20 million of fuel price and foreign exchange headwinds versus last year, as well as approximately $60 million of higher interest expense.

Conference Call:

The call will be webcast live from the Company's investor relations website at http://investor.fleetcor.com/. The conference call can also be accessed live over the phone by dialing (833) 816-1384, or for international callers (412) 317-0477. 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 10178259. The replay will be available through Wednesday, May 10, 2023.

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, 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 and portfolio review; any ongoing macro economic, supply chain, workforce or other impacts of the coronavirus (including any variants thereof, “COVID-19”); 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 FTC lawsuit, or actions of governmental, regulatory or quasi-governmental bodies or standards or industry organizations with respect to our payment cards; delays or failures associated with implication of, or adaption to, new technology, changes in credit risk of customers and associated losses; failure to maintain or renew key business relationships; failure to maintain competitive product offerings; failure to complete, or delays in completing, acquisitions, new partnerships or customer arrangements; and to successfully integrate or otherwise achieve anticipated benefits from such acquisitions, partnerships, and customer arrangements; failure to successfully expand and manage our business internationally; and other risks related to our international operations, including the impact of the conflict between Russia and Ukraine on our business and operations, the potential impact to our business as a result of the United Kingdom’s referendum to leave the European Union; the impact of foreign exchange rates on operations, revenues and income; and the failure or compromise of our data centers and other information technology assets; 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, 2022 filed with the Securities and Exchange Commission (“SEC”) on February 28, 2023 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 FLEETCOR’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.

Adjusted net income is calculated as net income, adjusted to eliminate (a) non-cash share based compensation expense related to share based compensation awards, (b) amortization of deferred financing costs, discounts, intangible assets, and amortization of the premium recognized on the purchase of receivables, (c) integration and deal related costs, and (d) other non-recurring items, including unusual credit losses occurring largely, but not necessarily exclusively, due to COVID-19, the impact of discrete tax items, impairment charges, asset write-offs, restructuring costs, gains due to disposition of assets/businesses, 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 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 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, 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 FLEETCOR.

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 FLEETCOR®

FLEETCOR Technologies (NYSE: FLT) is a leading global business payments company that helps businesses spend less by providing innovative solutions that enable and control expense-related purchasing and payment processes. The FLEETCOR portfolio of brands automate, secure, digitize and manage payment transactions on behalf of businesses across more than 150 countries in North America, Latin America, Europe, and Asia Pacific. 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 March 31,

 

 

2023

 

2022

 

%

Change

Revenues, net

 

$

901,333

 

 

$

789,241

 

14%

Expenses:

 

 

 

 

 

 

Processing

 

 

204,967

 

 

 

174,194

 

18%

Selling

 

 

81,592

 

 

 

76,889

 

6%

General and administrative

 

 

154,684

 

 

 

143,522

 

8%

Depreciation and amortization

 

 

84,232

 

 

 

76,802

 

10%

Other operating, net

 

 

663

 

 

 

113

 

NM

Total operating expense

 

 

526,138

 

 

 

471,520

 

12%

Operating income

 

 

375,195

 

 

 

317,721

 

18%

Other expenses:

 

 

 

 

 

 

Investment (gain) loss

 

 

(190

)

 

 

152

 

NM

Other expense, net

 

 

746

 

 

 

869

 

NM

Interest expense, net

 

 

79,795

 

 

 

22,030

 

262%

Total other expense

 

 

80,351

 

 

 

23,051

 

249%

Income before income taxes

 

 

294,844

 

 

 

294,670

 

—%

Provision for income taxes

 

 

80,009

 

 

 

76,718

 

4%

Net income

 

$

214,835

 

 

$

217,952

 

(1) %

Basic earnings per share

 

$

2.92

 

 

$

2.80

 

4%

Diluted earnings per share

 

$

2.88

 

 

$

2.75

 

5%

Weighted average shares outstanding:

 

 

 

 

 

 

Basic shares

 

 

73,521

 

 

 

77,737

 

 

Diluted shares

 

 

74,483

 

 

 

79,286

 

 

NM- Not Meaningful

FLEETCOR Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands)

 

 

 

March 31, 2023

 

December 31, 2022

 

 

(Unaudited)

 

 

Assets

 

 

 

 

Current assets:

 

 

 

 

Cash and cash equivalents

 

$

1,272,456

 

 

$

1,435,163

 

Restricted cash

 

 

996,945

 

 

 

854,017

 

Accounts and other receivables (less allowance)

 

 

2,369,235

 

 

 

2,064,745

 

Securitized accounts receivable — restricted for securitization investors

 

 

1,284,000

 

 

 

1,287,000

 

Prepaid expenses and other current assets

 

 

436,336

 

 

 

465,227

 

Total current assets

 

 

6,358,972

 

 

 

6,106,152

 

Property and equipment, net

 

 

310,390

 

 

 

294,692

 

Goodwill

 

 

5,380,050

 

 

 

5,201,435

 

Other intangibles, net

 

 

2,197,587

 

 

 

2,130,974

 

Investments

 

 

67,587

 

 

 

74,281

 

Other assets

 

 

273,337

 

 

 

281,726

 

Total assets

 

$

14,587,923

 

 

$

14,089,260

 

Liabilities and Stockholders’ Equity

 

 

 

 

Current liabilities:

 

 

 

 

Accounts payable

 

$

1,907,841

 

 

$

1,568,942

 

Accrued expenses

 

 

404,942

 

 

 

351,936

 

Customer deposits

 

 

1,481,004

 

 

 

1,505,004

 

Securitization facility

 

 

1,284,000

 

 

 

1,287,000

 

Current portion of notes payable and lines of credit

 

 

813,066

 

 

 

1,027,056

 

Other current liabilities

 

 

312,692

 

 

 

303,517

 

Total current liabilities

 

 

6,203,545

 

 

 

6,043,455

 

Notes payable and other obligations, less current portion

 

 

4,700,550

 

 

 

4,722,838

 

Deferred income taxes

 

 

544,682

 

 

 

527,465

 

Other noncurrent liabilities

 

 

257,286

 

 

 

254,009

 

Total noncurrent liabilities

 

 

5,502,518

 

 

 

5,504,312

 

Commitments and contingencies

 

 

 

 

Stockholders’ equity:

 

 

 

 

Common stock

 

 

128

 

 

 

128

 

Additional paid-in capital

 

 

3,109,065

 

 

 

3,049,570

 

Retained earnings

 

 

7,425,604

 

 

 

7,210,769

 

Accumulated other comprehensive loss

 

 

(1,434,016

)

 

 

(1,509,650

)

Treasury stock

 

 

(6,218,921

)

 

 

(6,209,324

)

Total stockholders’ equity

 

 

2,881,860

 

 

 

2,541,493

 

Total liabilities and stockholders’ equity

 

$

14,587,923

 

 

$

14,089,260

 

FLEETCOR Technologies, Inc. and Subsidiaries

Unaudited Consolidated Statements of Cash Flows

(In thousands)

 

 

 

Three Months Ended March 31,

 

 

2023

 

2022

Operating activities

 

 

 

 

Net income

 

$

214,835

 

 

$

217,952

 

Adjustments to reconcile net income to net cash provided by (used in) operating activities:

 

 

 

 

Depreciation

 

 

25,980

 

 

 

21,140

 

Stock-based compensation

 

 

26,096

 

 

 

32,631

 

Provision for credit losses on accounts and other receivables

 

 

39,270

 

 

 

25,478

 

Amortization of deferred financing costs and discounts

 

 

1,787

 

 

 

1,968

 

Amortization of intangible assets and premium on receivables

 

 

58,252

 

 

 

55,662

 

Loss on write-off of fixed assets

 

 

(12

)

 

 

 

Deferred income taxes

 

 

(499

)

 

 

1,900

 

Investment (gain) loss

 

 

(190

)

 

 

152

 

Other

 

 

675

 

 

 

113

 

Changes in operating assets and liabilities (net of acquisitions):

 

 

 

 

Accounts and other receivables

 

 

370,962

 

 

 

(818,969

)

Prepaid expenses and other current assets

 

 

40,099

 

 

 

20,921

 

Derivative assets and liabilities, net

 

 

(28,223

)

 

 

6,677

 

Other assets

 

 

25,141

 

 

 

(1,146

)

Accounts payable, accrued expenses and customer deposits

 

 

(446,508

)

 

 

323,268

 

Net cash provided by (used in) operating activities

 

 

327,665

 

 

 

(112,253

)

Investing activities

 

 

 

 

Acquisitions, net of cash acquired

 

 

(126,691

)

 

 

(35,864

)

Purchases of property and equipment

 

 

(36,737

)

 

 

(31,387

)

Other

 

 

4,401

 

 

 

 

Net cash used in investing activities

 

 

(159,027

)

 

 

(67,251

)

Financing activities

 

 

 

 

Proceeds from issuance of common stock

 

 

33,399

 

 

 

8,810

 

Repurchase of common stock

 

 

(9,597

)

 

 

(422,736

)

Borrowings on securitization facility, net

 

 

(3,000

)

 

 

318,000

 

Deferred financing costs paid and debt discount

 

 

 

 

 

(337

)

Principal payments on notes payable

 

 

(23,500

)

 

 

(45,063

)

Borrowings from revolver

 

 

1,964,000

 

 

 

490,000

 

Payments on revolver

 

 

(2,490,000

)

 

 

(400,000

)

Borrowings on swing line of credit, net

 

 

310,719

 

 

 

1,505

 

Other

 

 

264

 

 

 

 

Net cash used in financing activities

 

 

(217,715

)

 

 

(49,821

)

Effect of foreign currency exchange rates on cash

 

 

29,298

 

 

 

68,068

 

Net decrease in cash and cash equivalents and restricted cash

 

 

(19,779

)

 

 

(161,257

)

Cash and cash equivalents and restricted cash, beginning of period

 

 

2,289,180

 

 

 

2,250,695

 

Cash and cash equivalents and restricted cash, end of period

 

$

2,269,401

 

 

$

2,089,438

 

Supplemental cash flow information

 

 

 

 

Cash paid for interest, net

 

$

104,269

 

 

$

33,967

 

Cash paid for income taxes, net

 

$

35,442

 

 

$

72,296

 

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 March 31,

 

 

2023

 

2022

Net income

 

$

214,835

 

 

$

217,952

 

 

 

 

 

 

Stock based compensation

 

 

26,096

 

 

 

32,631

 

Amortization1

 

 

60,039

 

 

 

57,630

 

Integration and deal related costs

 

 

5,885

 

 

 

6,253

 

Legal settlements/litigation

 

 

344

 

 

 

435

 

Restructuring, related and other2 costs

 

 

1,298

 

 

 

 

Total pre-tax adjustments

 

 

93,662

 

 

 

96,949

 

Income taxes

 

 

(25,416

)

 

 

(25,241

)

Adjusted net income

 

$

283,081

 

 

$

289,660

 

Adjusted net income per diluted share

 

$

3.80

 

 

$

3.65

 

 

 

 

 

 

Diluted shares

 

 

74,483

 

 

 

79,286

 

1 Includes amortization related to intangible assets, premium on receivables, deferred financing costs and debt discounts.

2 Includes impact of foreign currency transactions; prior amounts were not material ($0.4 million) for recast.

*Columns may not calculate due to rounding.

Exhibit 2

Key Performance Indicators, by Segment 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 segment*

 

 

As Reported

 

Pro Forma and Macro Adjusted2

 

 

Three Months Ended March 31,

 

Three Months Ended March 31,

 

 

2023

 

2022

 

Change

 

%

Change

 

2023

 

2022

 

Change

 

%

Change

FLEET

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Revenues, net

 

$

372.7

 

$

351.6

 

$

21.1

 

6 %

 

$

364.6

 

$

352.8

 

$

11.8

 

3 %

- Transactions

 

 

118.6

 

 

116.6

 

 

2.0

 

2 %

 

 

118.6

 

 

116.8

 

 

1.8

 

2 %

- Revenues, net per transaction

 

$

3.14

 

$

3.01

 

$

0.13

 

4 %

 

$

3.07

 

$

3.02

 

$

0.05

 

2 %

CORPORATE PAYMENTS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Revenues, net

 

$

227.2

 

$

183.8

 

$

43.4

 

24 %

 

$

234.8

 

$

197.4

 

 

37.3

 

19 %

- Spend volume

 

 

36,526

 

 

27,435

 

 

9,091

 

33 %

 

 

36,526

 

 

29,971

 

 

6,556

 

22 %

- Revenues, net per spend $

 

 

0.62 %

 

 

0.67 %

 

 

(0.05) %

 

(7) %

 

 

0.64 %

 

 

0.66 %

 

 

(0.02) %

 

(2) %

LODGING

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Revenues, net

 

$

122.3

 

$

94.6

 

$

27.8

 

29 %

 

$

122.8

 

$

97.5

 

 

25.3

 

26 %

- Room nights

 

 

9.4

 

 

9.0

 

 

0.4

 

4 %

 

 

9.4

 

 

9.1

 

 

0.2

 

2 %

- Revenues, net per room night

 

$

13.07

 

$

10.54

 

$

2.53

 

24 %

 

$

13.13

 

$

10.67

 

$

2.45

 

23 %

BRAZIL

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Revenues, net

 

$

121.7

 

$

102.5

 

$

19.2

 

19 %

 

$

121.0

 

$

102.5

 

 

18.5

 

18 %

- Tags (average monthly)

 

 

6.5

 

 

6.1

 

 

0.4

 

7 %

 

 

6.5

 

 

6.1

 

 

0.4

 

7 %

- Revenues, net per tag

 

$

18.63

 

$

16.74

 

$

1.89

 

11 %

 

$

18.51

 

$

16.74

 

$

1.77

 

11 %

OTHER1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Revenues, net

 

$

57.3

 

$

56.8

 

$

0.6

 

1 %

 

$

58.2

 

$

56.8

 

 

1.4

 

2 %

- Transactions

 

 

298.0

 

 

293.0

 

 

5.0

 

2 %

 

 

298.0

 

 

293.0

 

 

5.0

 

2 %

- Revenues, net per transaction

 

$

0.19

 

$

0.19

 

$

0.00

 

(1) %

 

$

0.20

 

$

0.19

 

 

0.0

 

1 %

FLEETCOR CONSOLIDATED REVENUES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

- Revenues, net

 

$

901.3

 

$

789.2

 

$

112.1

 

14 %

 

$

901.4

 

$

807.1

 

 

94.3

 

12 %

1 Other includes Gift and Payroll Card operating segments.

2 See Exhibit 5 for a reconciliation of Pro forma and Macro Adjusted revenue by solution and metrics, non-GAAP measures, to the GAAP equivalent.

*Columns may not calculate due to rounding.

Exhibit 3

Revenues by Geography and Segment

(In millions)

(Unaudited)

Revenues, net by Geography*

Three Months Ended March 31,

 

2023

 

%

 

2022

 

%

US

$

514

 

57 %

 

$

472

 

60 %

Brazil

 

122

 

14 %

 

 

103

 

13 %

UK

 

108

 

12 %

 

 

95

 

12 %

Other

 

158

 

18 %

 

 

120

 

15 %

Consolidated Revenues, net

$

901

 

100 %

 

$

789

 

100 %

*Columns may not calculate due to rounding.

Revenues, net by Segment*

Three Months Ended March 31,

 

2023

 

%

 

2022

 

%

Fleet

$

373

 

41 %

 

$

352

 

45 %

Corporate Payments

 

227

 

25 %

 

 

184

 

23 %

Lodging

 

122

 

14 %

 

 

95

 

12 %

Brazil

 

122

 

14 %

 

 

103

 

13 %

Other

 

57

 

6 %

 

 

57

 

7 %

Consolidated Revenues, net

$

901

 

100 %

 

$

789

 

100 %

*Columns may not calculate due to rounding. Segment and solutions reporting have converged to be the same.

Exhibit 4

Segment Results*

(In thousands)

(Unaudited)

 

 

Three Months Ended March 31,

 

 

20231

 

2022

 

%

Change

Revenues, net:

 

 

 

 

 

 

Fleet

 

$

372,712

 

$

351,592

 

6 %

Corporate Payments

 

 

227,206

 

 

183,769

 

24 %

Lodging

 

 

122,334

 

 

94,576

 

29 %

Brazil

 

 

121,744

 

 

102,538

 

19 %

Other2

 

 

57,337

 

 

56,766

 

1 %

 

 

$

901,333

 

$

789,241

 

14 %

Operating income:

 

 

 

 

 

 

Fleet

 

$

173,532

 

$

167,845

 

3 %

Corporate Payments

 

 

75,513

 

 

58,207

 

30 %

Lodging

 

 

54,563

 

 

39,779

 

37 %

Brazil

 

 

54,817

 

 

37,328

 

47 %

Other2

 

 

16,770

 

 

14,562

 

15 %

 

 

$

375,195

 

$

317,721

 

18 %

Depreciation and amortization:

 

 

 

 

 

 

Fleet

 

$

35,086

 

$

34,706

 

1 %

Corporate Payments

 

 

20,871

 

 

16,349

 

28 %

Lodging

 

 

11,398

 

 

10,534

 

8 %

Brazil

 

 

14,553

 

 

13,121

 

11 %

Other2

 

 

2,324

 

 

2,092

 

11 %

 

 

$

84,232

 

$

76,802

 

10 %

Capital expenditures:

 

 

 

 

 

 

Fleet

 

$

17,131

 

$

15,790

 

8 %

Corporate Payments

 

 

7,795

 

 

4,488

 

74 %

Lodging

 

 

3,377

 

 

1,692

 

100 %

Brazil

 

 

6,888

 

 

5,978

 

15 %

Other2

 

 

1,546

 

 

3,439

 

(55) %

 

 

$

36,737

 

$

31,387

 

17 %

1Results from Global Reach Group acquired in the first quarter of 2023 are reported in our Corporate Payments segment.

2Other includes Gift and Payroll Card operating segments.

Exhibit 5

Reconciliation of Non-GAAP Revenue and Key Performance Metric by Segment to GAAP

(In millions)

(Unaudited)

 

 

Revenues, net

 

 

Key Performance Metric

 

 

Three Months Ended March 31,

 

Three Months Ended March 31,

 

 

2023*

 

2022*

 

 

2023*

 

2022*

FLEET - TRANSACTIONS

 

 

 

 

 

 

 

 

 

Pro forma and macro adjusted

 

$

364.6

 

 

$

352.8

 

 

 

 

118.6

 

 

116.8

 

Impact of acquisitions/dispositions

 

 

 

 

 

(1.3

)

 

 

 

 

 

(0.2

)

Impact of fuel prices/spread

 

 

10.9

 

 

 

 

 

 

 

 

 

 

Impact of foreign exchange rates

 

 

(2.8

)

 

 

 

 

 

 

 

 

 

As reported

 

$

372.7

 

 

$

351.6

 

 

 

 

118.6

 

 

116.6

 

CORPORATE PAYMENTS - SPEND

 

 

 

 

 

 

 

 

 

Pro forma and macro adjusted

 

$

234.8

 

 

$

197.4

 

 

 

$

36,526

 

$

29,971

 

Impact of acquisitions/dispositions

 

 

 

 

 

(13.7

)

 

 

 

 

 

(2,536

)

Impact of fuel prices/spread

 

 

 

 

 

 

 

 

 

 

 

 

Impact of foreign exchange rates

 

 

(7.5

)

 

 

 

 

 

 

 

 

 

As reported

 

$

227.2

 

 

$

183.8

 

 

 

$

36,526

 

$

27,435

 

LODGING - ROOM NIGHTS

 

 

 

 

 

 

 

 

 

Pro forma and macro adjusted

 

$

122.8

 

 

$

97.5

 

 

 

 

9.4

 

 

9.1

 

Impact of acquisitions/dispositions

 

 

 

 

 

(2.9

)

 

 

 

 

 

(0.2

)

Impact of fuel prices/spread

 

 

 

 

 

 

 

 

 

 

 

 

Impact of foreign exchange rates

 

 

(0.5

)

 

 

 

 

 

 

 

 

 

As reported

 

$

122.3

 

 

$

94.6

 

 

 

 

9.4

 

 

9.0

 

BRAZIL - TAGS

 

 

 

 

 

 

 

 

 

Pro forma and macro adjusted

 

$

121.0

 

 

$

102.5

 

 

 

 

6.5

 

 

6.1

 

Impact of acquisitions/dispositions

 

 

 

 

 

 

 

 

 

 

 

 

Impact of fuel prices/spread

 

 

 

 

 

 

 

 

 

 

 

 

Impact of foreign exchange rates

 

 

0.7

 

 

 

 

 

 

 

 

 

 

As reported

 

$

121.7

 

 

$

102.5

 

 

 

 

6.5

 

 

6.1

 

OTHER1 - TRANSACTIONS

 

 

 

 

 

 

 

 

 

Pro forma and macro adjusted

 

$

58.2

 

 

$

56.8

 

 

 

 

298.0

 

 

293.0

 

Impact of acquisitions/dispositions

 

 

 

 

 

 

 

 

 

 

 

 

Impact of fuel prices/spread

 

 

 

 

 

 

 

 

 

 

 

 

Impact of foreign exchange rates

 

 

(0.8

)

 

 

 

 

 

 

 

 

 

As reported

 

$

57.3

 

 

$

56.8

 

 

 

 

298.0

 

 

293.0

 

FLEETCOR CONSOLIDATED REVENUES

 

 

 

 

 

 

 

 

 

Pro forma and macro adjusted

 

$

901.4

 

 

$

807.1

 

 

 

Intentionally Left Blank

Impact of acquisitions/dispositions

 

 

 

 

 

(17.9

)

 

 

Impact of fuel prices/spread2

 

 

10.8

 

 

 

 

 

 

Impact of foreign exchange rates2

 

 

(10.9

)

 

 

 

 

 

As reported

 

$

901.3

 

 

$

789.2

 

 

 

* Columns may not calculate due to rounding.

1Other includes Gift and Payroll Card operating segments.

2 Revenues reflect an estimated $2 million positive impact from fuel prices and approximately $9 million positive impact from fuel price spreads, offset by the negative impact of movements in foreign exchange rates of approximately $11 million.

Exhibit 6

RECONCILIATION OF NON-GAAP EBITDA MEASURES

(In millions)

(Unaudited)

The following table reconciles EBITDA and EBITDA margin to Net income.

 

 

 

Three Months Ended

March 31,

 

 

2023

 

2022

Net income

 

$

215

 

$

218

Provision for income taxes

 

 

80

 

 

77

Interest expense, net

 

 

80

 

 

22

Other expense (income)

 

 

1

 

 

1

Investment loss

 

 

 

 

Depreciation and amortization

 

 

84

 

 

77

Other operating, net

 

 

1

 

 

EBITDA

 

$

460

 

$

395

 

 

 

 

 

Revenue

 

$

901

 

$

789

EBITDA margin

 

 

51.0%

 

 

50.0%

Exhibit 7

RECONCILIATION OF NON-GAAP GUIDANCE MEASURES

(In millions, except per share amounts)

(Unaudited)

The following table reconciles the second quarter 2023 and full year 2023 financial guidance for net income to adjusted net income and adjusted net income per diluted share, at both ends of the range.

 

 

Q2 2023 GUIDANCE

 

 

Low*

 

High*

Net income

 

$

230

 

$

246

Net income per diluted share

 

$

3.09

 

$

3.29

 

 

 

 

 

Stock based compensation

 

 

30

 

 

30

Amortization

 

 

59

 

 

59

Other

 

 

6

 

 

6

Total pre-tax adjustments

 

 

95

 

 

95

Income taxes

 

 

25

 

 

25

Adjusted net income

 

$

300

 

$

316

Adjusted net income per diluted share

 

$

4.02

 

$

4.22

Diluted shares

 

 

75

 

 

75

 

 

 

 

 

 

 

2023 GUIDANCE

 

 

Low*

 

High*

Net income

 

$

993

 

$

1,033

Net income per diluted share

 

$

13.35

 

$

13.75

 

 

 

 

 

Stock based compensation

 

 

115

 

 

115

Amortization

 

 

235

 

 

235

Other

 

 

18

 

 

18

Total pre-tax adjustments

 

 

368

 

 

368

Income taxes

 

 

98

 

 

98

Adjusted net income

 

$

1,263

 

$

1,303

Adjusted net income per diluted share

 

$

16.95

 

$

17.35

Diluted shares

 

 

75

 

 

75

 

 

 

 

 

*Includes the results of our Russian business. Assuming a June 30, 2023 sale of our Russian business, we expect revenues to be $55 million to $65 million lower, resulting in a $0.30 to $0.40 decline in adjusted net income per diluted share, based on using the sales proceeds for share buybacks over the remainder of the year. Columns may not calculate due to rounding.

 

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