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FLEETCOR Reports Fourth Quarter and Fiscal Year 2019 Financial Results

ATLANTA--(BUSINESS WIRE)--FLEETCOR Technologies, Inc. (NYSE: FLT), a global leader in business payments, today reported financial results for its fourth quarter and year ended December 31, 2019.

“Our fourth quarter finish was quite good. Adjusted net income per diluted share was up 14%, at the high end of our guidance range. Organic revenue growth was 10%, and new sales and client retention trends were positive”

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“Our fourth quarter finish was quite good. Adjusted net income per diluted share was up 14%, at the high end of our guidance range. Organic revenue growth was 10%, and new sales and client retention trends were positive,” said Ron Clarke, chairman and chief executive officer, FLEETCOR Technologies, Inc. “We like the early set up to 2020 and expect each of our four primary product categories to deliver performance that meets our stated midterm growth targets.”

Financial Results for Fourth Quarter of 2019:

GAAP Results

  • Total revenues increased 9% to $698.9 million in the fourth quarter of 2019, compared to $643.4 million in the fourth quarter of 2018.

  • Net income decreased 22% to $235.5 million in the fourth quarter of 2019, compared to $302.0 million in the fourth quarter of 2018. Included in the fourth quarter of 2019, was a gain of approximately $13 million related to a minority investment and in the fourth quarter of 2018 was a gain of approximately $153 million from the sale of the Chevron portfolio.

  • Net income per diluted share decreased 22% to $2.60 in the fourth quarter of 2019, compared to $3.33 per diluted share in the fourth quarter of 2018. Included in the fourth quarter of 2019, was a gain of approximately $13 million related to a minority investment and in the fourth quarter of 2018 was a gain of approximately $153 million from the sale of the Chevron portfolio.

Non-GAAP Results1

  • Adjusted net income1 increased 14% to $286.4 million in the fourth quarter of 2019, compared to $252.0 million in the fourth quarter of 2018.

  • Adjusted net income per diluted share1 increased 14% to $3.17 in the fourth quarter of 2019, compared to $2.78 per diluted share in the fourth quarter of 2018.

Financial Results for Fiscal Year 2019:

GAAP Results

  • Total revenues increased 9% to $2,648.8 million in 2019, compared to $2,433.5 million in 2018.

  • Net income increased 10% to $895.1 million in 2019, compared to $811.5 million in 2018.

  • Net income per diluted share increased 13% to $9.94 in 2019, compared to $8.81 per diluted share in 2018.

Non-GAAP Results1

  • Adjusted net income1 increased 10% to $1,062.1 million in 2019, compared to $969.8 million in 2018.

  • Adjusted net income per diluted share1 increased 12% to $11.79 in 2019, compared to $10.53 in 2018.

Fiscal Year 2020 Outlook:

“Our outlook for 2020 is for organic revenue growth to be in the 9% to 11% range and adjusted net income to be up approximately 15%. As always there are a number of moving parts to our budget. Some of our assumptions include the continuation of a soft macro-environment, primarily unfavorable foreign exchange rates compared to 2019, mostly in Brazil, and market spreads projected to be slightly worse than the 2019 average. The combined unfavorable revenue impact from these factors is expected to be approximately $20 million in 2020. In addition, we are making incremental investments in sales and IT to help drive future growth,” said Eric Dey, chief financial officer, FLEETCOR Technologies, Inc.

For fiscal year 2020, FLEETCOR Technologies, Inc.’s financial outlook is as follows:

  • Total revenues to be between $2,900 million and $2,960 million;

  • GAAP net income to be between $965 million and $1,005 million;

  • GAAP net income per diluted share to be between $10.80 and $11.20;

  • Adjusted net income to be between $1,190 million and $1,230 million; and

  • Adjusted net income per diluted share to be between $13.35 and $13.75.

FLEETCOR’s outlook assumptions for fiscal year 2020 are as follows:

  • Weighted fuel prices equal to $2.78 per gallon average in the U.S.;

  • Market spreads slightly unfavorable compared to the 2019 average;

  • Foreign exchange rates equal to the 7-day average as of the week ending January 19, 2020;

  • Interest expense between $130 million and $140 million;

  • Approximately 89.5 million fully diluted shares outstanding for 2020;

  • An adjusted tax rate of approximately 20% to 22%; and

  • No impact related to acquisitions or material new partnership agreements not already disclosed.

Fiscal First Quarter of 2020 Outlook:

FLEETCOR experiences some seasonality and typically the first quarter is the lowest in terms of both revenue and profit. First quarter seasonality is impacted by weather, holidays in the U.S., and lower business levels in Brazil, due to summer break and the Carnival celebration that occurs in the first quarter. Also, the first quarter revenue will be impacted by the divestiture of the Chevron portfolio, which was still transitioning in the first quarter of 2019, an unfavorable macro impact versus prior year, and the net impact of share repurchases and the associated interest expense carry versus prior year. In total, we estimate these items will negatively impact our first quarter net income per diluted share by approximately $0.15 versus the first quarter of 2019.

The Company is expecting first quarter adjusted net income per diluted share to be between $2.90 and $3.001. Additionally, volumes should build throughout the year, and new asset initiatives are also expected to gain momentum throughout the year resulting in higher revenue and earnings per share in the second through fourth quarters.

_______________________________________
1 Reconciliations of GAAP results to non-GAAP results are provided in Exhibit 1 attached. Additional supplemental data is provided in Exhibits 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 fourth quarter and fiscal year 2019 financial results today at 5:00 pm ET. Hosting the call will be Ron Clarke, chief executive officer, Eric Dey, chief financial officer, and Jim Eglseder, senior vice president investor relations. 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 13698073. The replay will be available until Thursday, February 13, 2020. The call will be webcast live from the Company's investor relations website at http://investor.fleetcor.com. Prior to the conference call, the Company will post supplemental financial information that will be discussed during the call and live webcast.

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, assumptions 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 about FLEETCOR's beliefs, expectations and assumptions with respect to the lawsuit filed by the FTC, FLEETCOR’s intentions with respect to challenging such lawsuit and the potential impact of such lawsuit. 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 adverse outcomes with respect to current and future legal proceedings, including, without limitation, the FTC lawsuit, or actions of governmental or quasi-governmental bodies or standards or industry organizations with respect to our payment cards; fuel price and spread volatility; the impact of foreign exchange rates on operations, revenue and income; the effects of general economic and political conditions on fueling patterns and the commercial activity of fleets; 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 maintain or renew sources of financing; failure to complete, or delays in completing, anticipated new partnership and customer agreements or acquisitions and to successfully integrate or otherwise achieve anticipated benefits from such partnerships and customer arrangements or acquired businesses; failure to successfully expand business internationally, other risks related to our international operations, including the potential impact to our business as a result of the United Kingdom’s referendum to leave the European Union, risks related to litigation, the impact of new tax regulations and the resolution of tax contingencies resulting in additional tax liabilities; 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, 2018 and subsequent filings made by FLEETCOR with the Securities and Exchange Commission. These 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 as a result of new information, future events or developments except as specifically stated in this press release or to the extent required by law.

About Non-GAAP Financial Measures:

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, amortization of the premium recognized on the purchase of receivables, and our proportionate share of amortization of intangible assets at our equity method investment, and (c) other non-recurring items, such as the impact of the Tax Act, impairment of investment, asset write-offs, restructuring costs, gains and related taxes due to disposition of assets and a business, loss on extinguishment of debt, legal settlements/litigation, and the unauthorized access impact. We calculate adjusted net income to eliminate the effect of items that we do not consider indicative of our core operating performance. Adjusted net income is a supplemental measure of operating performance that does not represent and should not be considered as an alternative to net income or cash flow from operations, as determined by U.S. generally accepted accounting principles, or U.S. GAAP, and our calculation thereof may not be comparable to that reported by other companies. We believe it is useful to exclude 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. We also believe one-time non-recurring gains, losses, and impairment charges do not necessarily reflect how our investments and business are 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 net income:

  • as measurement of operating performance because it assists 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 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 business payments company that simplifies the way businesses manage and pay their expenses. The FLEETCOR portfolio of brands help companies automate, secure, digitize and control payments to, or on behalf of, their employees and suppliers. FLEETCOR serves businesses, partners and merchants in North America, Latin America, Europe, and Asia Pacific. For more information, please visit www.FLEETCOR.com.

FLEETCOR Technologies, Inc. and Subsidiaries

Consolidated Statements of Income

(In thousands, except per share amounts)









 



Three Months Ended December 31,


Year Ended December 31,



2019


2018


2019


2018



(Unaudited)


(Unaudited)


(Unaudited)



Revenues, net 


 $           698,881


 $           643,422


 $         2,648,848


 $         2,433,492









 

Expenses:









   Processing   


              146,081


              131,609


              530,669


              487,695

   Selling   


                51,899


                46,667


              204,806


              182,593

   General and administrative   


              109,592


              104,453


              407,210


              389,172

   Depreciation and amortization   


                68,510


                67,230


              274,210


              274,609

   Other operating, net


                  2,003


                  8,725


                    523


                  8,725

Operating income 


              320,796


              284,738


            1,231,430


            1,090,698

   Investment (gain) loss, net


              (12,190)


                      -  


                  3,470


                  7,147

   Other (income) expense, net


                   (535)


             (152,630)


                      93


             (152,166)

   Interest expense, net


                34,960


                38,207


              150,048


              138,494

   Loss on extinguishment of debt


                      -  


                  2,098


                      -  


                  2,098

Total other expense (income)


                22,235


             (112,325)


              153,611


                (4,427)

Income before income taxes


              298,561


              397,063


            1,077,819


            1,095,125

Provision for income taxes


                63,051


                95,063


              182,746


              283,642

Net income


 $           235,510


 $           302,000


 $           895,073


 $           811,483









 

Basic earnings per share


 $                2.72


 $                3.45


 $               10.36


 $                9.14

Diluted earnings per share


 $                2.60


 $                3.33


 $                9.94


 $                8.81









 

Weighted average shares outstanding:









Basic shares


                86,600


                87,636


                86,401


                88,750

Diluted shares


                90,427


                90,703


                90,070


                92,151

FLEETCOR Technologies, Inc. and Subsidiaries

Consolidated Balance Sheets

(In thousands, except share and par value amounts)



December 31, 20191


December 31, 2018



(Unaudited)



Assets    









 

Current assets:





Cash and cash equivalents


 $                          1,271,494


 $                          1,031,145

Restricted cash


                               403,743


333,748

Accounts and other receivables (less allowance for doubtful accounts of $70,890 and  $59,963 at December 31,
2019 and 2018, respectively)


                             1,528,007


1,425,815

Securitized accounts receivable - restricted for securitization investors


                               970,973


886,000

Prepaid expenses and other current assets   


                               403,400


199,278





 

Total current assets


4,577,617


3,875,986





 

Property and equipment, net


199,825


186,201

Goodwill 


4,833,047


4,542,074

Other intangibles, net 


2,341,882


2,407,910

Investments


30,440


42,674

Other assets


224,776


147,632





 

Total assets


 $                        12,207,587


 $                        11,202,477





 

Liabilities and Stockholders’ Equity









 

Current liabilities:





Accounts payable 


 $                          1,208,631


 $                          1,117,649

Accrued expenses   


                               275,511


261,594

Customer deposits


                             1,007,631


926,685

Securitization facility


                               970,973


886,000

Current portion of notes payable and lines of credit


                               775,865


1,184,616

Other current liabilities


                               183,503


118,669





 

Total current liabilities


4,422,114


4,495,213





 

Notes payable and other obligations, less current portion


                             3,289,947


2,748,431

Deferred income taxes   


                               519,980


491,946

Other noncurrent liabilities


                               263,930


126,707





 

Total noncurrent liabilities   


4,073,857


3,367,084





 

Commitments and contingencies









 

Stockholders’ equity:





Common stock, $0.001 par value; 475,000,000 shares authorized; 124,626,786 shares issued and 85,342,156 shares
outstanding at December 31, 2019; and 123,035,859 shares issued and 85,845,344 shares outstanding at December
31, 2018


124


123

Additional paid-in capital


2,494,721


2,306,843

Retained earnings


4,712,729


3,817,656

Accumulated other comprehensive loss


(972,465)


(913,858)

Less treasury stock, 39,284,630 shares and 37,190,515 shares at December 31, 2019 and 2018, respectively


(2,523,493)


(1,870,584)



 


 

Total stockholders’ equity


3,711,616


3,340,180





 

Total liabilities and stockholders’ equity


 $                        12,207,587


 $                        11,202,477

1 Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019 using the modified retrospective transition method.  The adoption of the Leases guidance resulted in an adjustment to other assets, other current liabilities and other noncurrent liabilities in our consolidated balance sheet for the cumulative effect of applying the standard. Financial results reported in periods prior to 2019 are unchanged. 

Consolidated Statements of Cash Flows 

(In thousands) 



Year Ended December 31,



20191


2018



(Unaudited)



Operating activities





Net income 


 $           895,073


 $           811,483

Adjustments to reconcile net income to net cash provided by operating activities:





Depreciation 


                62,784


                52,936

Stock-based compensation 


                60,953


                69,939

Provision for losses on accounts receivable 


                74,309


                64,377

Amortization of deferred financing costs and discounts


                 5,106


                 5,342

Amortization of intangible assets and premium on receivables


              211,426


              221,673

Loss on extinguishment of debt


                      -  


                 2,098

Loss on write-off of fixed assets


                 1,819


                 8,793

Deferred income taxes 


                34,670


                (2,750)

Investment loss, net


                 3,470


                 7,147

Gain on sale of assets/business


                      -  


            (152,750)

Other non-cash operating income


                (1,297)


                  (186)

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





Accounts and other receivables 


            (198,156)


            (159,024)

Prepaid expenses and other current assets 


            (185,391)


              (27,650)

Other assets 


                (6,792)


              (25,432)

Accounts payable, accrued expenses and customer deposits 


              204,097


                27,386

Net cash provided by operating activities 


           1,162,071


              903,382





 





 

Investing activities





Acquisitions, net of cash acquired


            (448,277)


              (20,843)

Purchases of property and equipment 


              (75,170)


              (81,387)

Proceeds from disposal of assets/business


                      -  


                98,735

Other


                  (255)


              (22,775)

Net cash used in investing activities 


            (523,702)


              (26,270)





 





 

Financing activities





Proceeds from issuance of common stock 


              168,925


                55,680

Repurchase of common stock


            (694,909)


            (958,696)

Borrowings on securitization facility, net 


                84,973


                75,000

Deferred financing costs paid and debt discount


                (2,868)


                (4,927)

Proceeds from issuance of notes payable


              700,000


              363,430

Principal payments on notes payable 


            (138,500)


            (498,305)

Borrowings from revolver


           1,811,509


           1,493,091

Payments on revolver 


          (2,292,349)


          (1,099,040)

Borrowings from (payments to) swing line of credit, net


                52,996


                (4,935)

Other


                      52


                    887

Net cash used in financing activities 


            (310,171)


            (577,815)





 

Effect of foreign currency exchange rates on cash 


(17,854)


(65,274)





 

Net increase in cash and cash equivalents and restricted cash


              310,344


              234,023

Cash and cash equivalents and restricted cash, beginning of period


           1,364,893


           1,130,870

Cash and cash equivalents and restricted cash, end of period


 $         1,675,237


 $         1,364,893





 

Supplemental cash flow information





Cash paid for interest 


 $           178,417


 $           156,749

Cash paid for income taxes 


 $           200,525


 $           207,504

1 Reflects the impact of the Company's adoption of ASU 2016-02 "Leases", on January 1, 2019 using the modified retrospective transition method.  The adoption of the Leases guidance resulted in an adjustment to other assets, other current liabilities and other noncurrent liabilities in our consolidated balance sheet for the cumulative effect of applying the standard. Financial results reported in periods prior to 2019 are unchanged. 

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 December 31,


Year Ended December 31,



2019


2018


2019


2018

Net income


 $            235,510


 $            302,000


 $            895,073


 $            811,483









 

Stock based compensation


                14,833


                15,732


                60,953


                69,939

Amortization of intangible assets, premium on receivables, deferred financing costs and discounts


                53,484


                53,776


              216,532


              227,015

Investment (gains) losses


               (12,955)


                      -  


                  2,705


                  7,147

Net gain on disposition of assets/business


                      -  


             (152,750)


                      -  


             (152,750)

Loss on write-off of fixed assets


                  1,819


                  8,793


                  1,819


                  8,793

Loss on extinguishment of debt


                      -  


                  2,098


                      -  


                  2,098

Legal settlements/litigation


                  2,707


                  5,500


                  6,181


                  5,500

Restructuring and related costs


                  2,814


                  1,052


                  2,814


                  4,969

Unauthorized access impact


                      -  


                      -  


                      -  


                  2,065

Total pre-tax adjustments


                62,702


               (65,799)


              291,004


              174,777









 

Income tax impact of pre-tax adjustments at the effective tax rate1


               (12,596)


                15,753


               (61,619)


               (39,151)

Impact of investment sale, other discrete item and tax reform2


                    765


                      -  


               (62,333)


                22,731









 

Adjusted net income


 $            286,380


 $            251,954


 $         1,062,125


 $            969,840

Adjusted net income per diluted share


 $                 3.17


 $                 2.78


 $               11.79


 $               10.53









 

Diluted shares


                90,427


                90,703


                90,070


                92,151

1 Includes discrete tax effect of non-cash investment gain.  Also excludes impact of a Section 199 tax adjustment related to a prior tax year on the 2019 effective income tax rate.

2 Represents the impact to taxes from the reversal of a valuation allowance related to the disposition of our investment in Masternaut of $64.9 million and $0.8 million in the second and fourth quarters of 2019, respectively, and impact of tax reform adjustments included in our effective tax rate of $22.7 million in the third quarter of 2018.  Also, includes the impact of a discrete tax item for a Section 199 adjustment related to a prior tax year in the third quarter of 2019 results of $1.8 million. 

* Columns may not calculate due to rounding.

Exhibit 2

Key Performance Indicators, by Product Category and Revenue Per Performance Metric 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 key performance metric by product category.*











As Reported


Pro Forma and Macro Adjusted3



Three Months Ended December 31,


Three Months Ended December 31,



2019

 

2018

 

Change

 

% Change

 

2019

 

2018

 

Change

 

% Change

















 

FUEL

















- Revenues, net1


 $       299.3


 $       298.8


 $       0.5


0%


 $       310.0


 $             284.6


 $         25.4


9%

- Transactions1


          126.4


          128.3


        (1.9)


(1%)


          126.4


                124.9


             1.6


1%

- Revenues, net per transaction


 $         2.37


 $         2.33


 $     0.04


2%


 $         2.45


 $               2.28


 $         0.17


8%

















 

CORPORATE PAYMENTS

















- Revenues, net


 $       140.3


 $       116.0


 $     24.3


21%


 $       140.5


 $             123.6


 $         16.9


14%

- Transactions


            13.6


            13.6


         0.0


0%


            13.6


                  13.8


            (0.1)


(1%)

- Revenues, net per transaction


 $       10.29


 $         8.54


 $     1.75


21%


 $       10.31


 $               8.99


 $         1.32


15%

- Spend volume


 $   17,878.6


 $   14,750.6


 $ 3,128.0


21%


 $   17,939.1


 $         14,751.0


 $     3,188.1


22%

- Revenues, net per spend $


0.78%


0.79%


(0.0%)


(0%)


0.78%


0.84%


(0.1%)


(7%)

















 

TOLLS

















- Revenues, net1


 $         93.3


 $         86.6


 $       6.7


8%


 $       100.9


 $               86.6


 $         14.3


17%

- Tags (average monthly)


             5.3


             4.8


         0.5


9%


             5.3


                   4.8


             0.5


9%

- Revenues, net per tag


 $       17.77


 $       18.05


 $   (0.28)


(2%)


 $       19.21


 $             18.05


 $         1.16


6%

















 

LODGING

















- Revenues, net


 $         64.2


 $         43.4


 $     20.8


48%


 $         64.2


 $               56.5


 $           7.7


14%

- Room nights


             6.4


             4.5


         1.9


43%


             6.4


                   6.7


            (0.4)


(5%)

- Revenues, net per room night


 $       10.06


 $         9.71


 $     0.35


4%


 $       10.06


 $               8.38


 $         1.68


20%

















 

GIFT

















- Revenues, net


 $         47.7


 $         48.0


 $     (0.4)


(1%)


 $         47.7


 $               50.9


 $         (3.2)


(6%)

- Transactions


          381.5


          432.3


      (50.7)


(12%)


          381.5


                432.6


          (51.0)


(12%)

- Revenues, net per transaction


 $         0.12


 $         0.11


 $     0.01


12%


 $         0.12


 $               0.12


 $         0.01


6%

















 

OTHER2

















- Revenues, net1


 $         54.1


 $         50.6


 $       3.5


7%


 $         58.1


 $               51.8


 $           6.3


12%

- Transactions1


            14.6


            12.8


         1.8


14%


            14.6


                  14.6


            (0.0)


(0%)

- Revenues, net per transaction


 $         3.71


 $         3.97


 $   (0.26)


(7%)


 $         3.98


 $               3.54


 $         0.44


13%

















 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FLEETCOR CONSOLIDATED REVENUES
















 

- Revenues, net


 $       698.9


 $       643.4


 $     55.5


9%


 $       721.4


 $             654.0


 $         67.4


10%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Reflects certain reclassifications of revenue in 2018 between product categories as the Company realigned its Brazil business into product lines, resulting in refinement of revenue classified as fuel versus tolls and the eCash/OnRoad product being fuel versus other.

2 Other includes telematics, maintenance, food, and transportation related businesses.

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

* Columns may not calculate due to rounding.

Exhibit 3

Revenues by Geography and Product

(In millions)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Revenue by Geography*


Three Months Ended December 31,


Year Ended December 31,




2019

 

%

 

2018

 

%

 

2019

 

%

 

2018

 

%


















 


US


 $         421


60%


 $         400


62%


 $       1,595


60%


 $       1,482


61%


Brazil


            112


16%


            104


16%


            428


16%


            400


16%


UK


              71


10%


              65


10%


            275


10%


            258


11%


Other


              95

 

14%


              74


12%


            350


13%


            294


12%


















 


Consolidated Revenues, net


 $         699


100%


 $         643


100%


 $       2,649


100%


 $       2,433


100%

* Columns may not calculate due to rounding.

 

 

 

 

 

 

 

 

 

 

 

 

 

 


















 

Revenue by Product Category*1


Three Months Ended December 31,


Year Ended December 31,




2019

 

%

 

2018

 

%

 

2019

 

%

 

2018

 

%


















 


Fuel


 $         299


42%


 $         299


46%


 $       1,173


44%


 $       1,126


46%


Corporate Payments


            140


20%


            116


18%


            516


19%


            416


17%


Tolls


              93


13%


              87


13%


            357


13%


            333


14%


Lodging


              64


9%


              43


7%


            213


8%


            176


7%


Gift


              48


7%


              48


7%


            180


7%


            187


8%


Other


              54


8%


              51


8%


            210


8%


            197


8%


















 


Consolidated Revenues, net


 $         699


100%


 $         643


100%


 $       2,649


100%


 $       2,433


100%

* Columns may not calculate due to rounding.

1 Reflects certain reclassifications of revenue in 2018 between product categories as the Company realigned its Brazil business into product lines, resulting in refinement of revenue classified as fuel versus tolls and the eCash/OnRoad product being fuel versus other.

Exhibit 4

Segment Results1

(In thousands)










 



Three Months Ended December 31,


Year Ended December 31,



2019


2018


2019


2018



(Unaudited)


(Unaudited)


(Unaudited)



Revenues, net:









North America


 $                  451,002


 $                  423,432


 $               1,708,546


 $               1,571,466

International


                     247,879


                     219,990


                     940,302


                     862,026



 $                  698,881


 $                  643,422


 $               2,648,848


 $               2,433,492









 

Operating income:









North America


 $                  192,293


 $                  178,772


 $                  755,867


 $                  673,868

International


                     128,503


                     105,966


                     475,563


                     416,830



 $                  320,796


 $                  284,738


 $               1,231,430


 $               1,090,698









 

Depreciation and amortization:









North America


 $                    40,770


 $                    38,364


 $                  160,246


 $                  154,405

International


                      27,740


                      28,866


                     113,964


                     120,204



 $                    68,510


 $                    67,230


 $                  274,210


 $                  274,609









 

Capital expenditures:









North America


 $                    14,215


 $                     3,814


 $                    44,238


 $                    36,514

International


                      12,275


                      21,261


                      30,932


                      44,873



 $                    26,490


 $                    25,075


 $                    75,170


 $                    81,387

1The results from Nvoicepay acquired in the second quarter of 2019, SOLE acquired in the third quarter of 2019 and Travelliance acquired in the fourth quarter of 2019 are reported in our North America segment.  The results from R2C acquired in the second quarter of 2019 are reported in our International segment.  

Exhibit 5

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

(In millions)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 




Revenue


 

Key Performance Metric




Three Months Ended December 31,


 

Three Months Ended December 31,




2019*


2018*


 

2019*


2018*









 






FUEL-TRANSACTIONS






 






Pro forma and macro adjusted


 $               310.0


 $               284.6


 

                  126.4


                  124.9



Impact of acquisitions/dispositions


                      -  


                   14.2


 

                      -  


                     3.5



Impact of fuel prices/spread


                  (10.3)


                      -  


 

                      -  


                      -  



Impact of foreign exchange rates


                    (0.4)


                      -  


 

                      -  


                      -  



As reported


 $               299.3


 $               298.8


 

                  126.4


                  128.3









 






CORPORATE PAYMENTS- TRANSACTIONS






 






Pro forma and macro adjusted


 $               140.5


 $               123.6


 

                   13.6


                   13.8



Impact of acquisitions/dispositions


                      -  


                    (7.7)


 

                      -  


                    (0.2)



Impact of fuel prices/spread


                      -  


                      -  


 

                      -  


                      -  



Impact of foreign exchange rates


                    (0.3)


                      -  


 

                      -  


                      -  



As reported


 $               140.3


 $               116.0


 

                   13.6


                   13.6









 






CORPORATE PAYMENTS- SPEND






 






Pro forma and macro adjusted


Intentionally Left Blank


 

             17,939.1


             14,751.0



Impact of acquisitions/dispositions



 

                      -  


                    (0.4)



Impact of fuel prices/spread



 

                      -  


                      -  



Impact of foreign exchange rates



 

                  (60.5)


                      -  



As reported



 

             17,878.6


             14,750.6









 






TOLLS- TAGS






 






Pro forma and macro adjusted


 $               100.9


 $                 86.6


 

                     5.3


                     4.8



Impact of acquisitions/dispositions


                      -  


                      -  


 

                      -  


                      -  



Impact of fuel prices/spread


                      -  


                      -  


 

                      -  


                      -  



Impact of foreign exchange rates


                    (7.6)


                      -  


 

                      -  


                      -  



As reported


 $                 93.3


 $                 86.6


 

                     5.3


                     4.8









 






LODGING- ROOM NIGHTS






 






Pro forma and macro adjusted


 $                 64.2


 $                 56.5


 

                     6.4


                     6.7



Impact of acquisitions/dispositions


                      -  


                  (13.1)


 

                      -  


                    (2.3)



Impact of fuel prices/spread


                      -  


                      -  


 

                      -  


                      -  



Impact of foreign exchange rates


                      -  


                      -  


 

                      -  


                      -  



As reported


 $                 64.2


 $                 43.4


 

                     6.4


                     4.5









 






GIFT- TRANSACTIONS






 






Pro forma and macro adjusted


 $                 47.7


 $                 50.9


 

                  381.5


                  432.6



Impact of acquisitions/dispositions


                      -  


                    (2.9)


 

                      -  


                    (0.3)



Impact of fuel prices/spread


                      -  


                      -  


 

                      -  


                      -  



Impact of foreign exchange rates


                      -  


                      -  


 

                      -  


                      -  



As reported


 $                 47.7


 $                 48.0


 

                  381.5


                  432.3









 






OTHER1- TRANSACTIONS






 






Pro forma and macro adjusted


 $                 58.1


 $                 51.8


 

                   14.6


                   14.6



Impact of acquisitions/dispositions


                      -  


                    (1.2)


 

                      -  


                    (1.9)



Impact of fuel prices/spread


                      -  


                      -  


 

                      -  


                      -  



Impact of foreign exchange rates


                    (4.0)


                      -  


 

                      -  


                      -  



As reported


 $                 54.1


 $                 50.6


 

                   14.6


                   12.8









 












 






FLEETCOR CONSOLIDATED REVENUES






 






Pro forma and macro adjusted


 $               721.4


 $               654.0


 

Intentionally Left Blank



Impact of acquisitions/dispositions


                      -  


                  (10.6)


 



Impact of fuel prices/spread


                  (10.3)


                      -  


 



Impact of foreign exchange rates


                  (12.2)


                      -  


 



As reported


 $               698.9


 $               643.4


 









 





* Columns may not calculate due to rounding.






 





1 Other includes telematics, maintenance, food, and transportation related businesses.


 





Exhibit 6

RECONCILIATION OF NON-GAAP GUIDANCE MEASURES

(In millions, except per share amounts)

(Unaudited)

 

 

 

 

 

The following table reconciles first quarter and full year 2020 financial guidance for net income to adjusted net income and adjusted net
income per diluted share, at both ends of the range.





 



Q1 2020 GUIDANCE



Low*


High*

Net income

 $        205


 $            215

Net income per diluted share

 $       2.30


 $           2.40





 

Stock based compensation

15


15

Amortization of intangible assets, premium on receivables, deferred financing costs and discounts

51


51

Other

3


3

Total pre-tax adjustments

68


68





 

Income tax impact of pre-tax adjustments at the effective tax rate

(14)


(14)

Adjusted net income

 $        260


 $            270

Adjusted net income per diluted share

          2.90


 $           3.00





 

Diluted shares

89

 

89





 



2020 GUIDANCE



Low*


High*

Net income

$         965


$       1,005

Net income per diluted share

 $      10.80


 $          11.20





 

Stock based compensation

75


75

Amortization of intangible assets, premium on receivables, deferred financing costs and discounts

203


203

Other

7


7

Total pre-tax adjustments

285


285





 

Income tax impact of pre-tax adjustments at the effective tax rate

(59)


(59)

Adjusted net income

$       1,190


$       1,230

Adjusted net income per diluted share

 $      13.35


 $          13.75





 

Diluted shares

89


89





 

* Columns may not calculate due to rounding.




 

 

 

 

 

 

Contacts

Investor Relations
Jim Eglseder, 770-417-4697
Jim.Eglseder@fleetcor.com