FLEETCOR Reports Third Quarter 2023 Financial Results
FLEETCOR Technologies, Inc. (NYSE: FLT) reported strong Q3 2023 results, with 9% revenue growth to $970.9 million and 6% adjusted net income per share growth. The company completed the acquisition of the world's second largest mobile parking operator, driving organic revenue growth of 10%. EBITDA increased 13% to $528.9 million, and adjusted net income per diluted share increased 6% to $4.49. The company updated its fiscal year 2023 outlook, expecting approximately 10% and 11% growth in fourth quarter revenue and adjusted net income per share, respectively.
Positive
Strong Q3 2023 results with 9% revenue growth to $970.9 million and 6% adjusted net income per share growth
Completed acquisition of the world's second largest mobile parking operator driving organic revenue growth of 10%
EBITDA increased 13% to $528.9 million
Adjusted net income per diluted share increased 6% to $4.49
Expecting approximately 10% and 11% growth in fourth quarter revenue and adjusted net income per share for fiscal year 2023
11/08/2023 - 04:05 PM
ATLANTA --(BUSINESS WIRE)--
FLEETCOR Technologies , Inc. (NYSE: FLT), a leading global business payments company, today reported financial results for its third quarter ended September 30, 2023.
“We reported another good quarter, with revenues and adjusted net income per share growth of 9% and 6% ,” said Ron Clarke, chairman and chief executive officer, FLEETCOR. “Organic revenue growth was 10% for the quarter, driven by 20% growth in corporate payments. Strategically, we completed the acquisition of the world’s second largest mobile parking operator, which is an important ingredient to our strategy to transform our vehicle payments business.”
Financial Results for Third Quarter of 2023:
GAAP Results
Revenues increased 9% to $970.9 million $893.0 million
Net income increased 9% to $271.5 million $248.9 million
Net income per diluted share increased 10% to $3.64 $3.29
Non-GAAP Results1
EBITDA1 increased 13% to $528.9 million $466.4 million
Adjusted net income1 increased 4% to $335.1 million $320.7 million
Adjusted net income per diluted share1 increased 6% to $4.49 $4.24
1 Reconciliations of GAAP results to non-GAAP results are provided in Exhibit 1 and 6 attached. Additional supplemental data is provided in Exhibits 2-5. A reconciliation of GAAP guidance to non-GAAP guidance is provided in Exhibit 7.
“The third quarter was particularly active with the sale of our Russia business, acquisition of PayByPhone and a quite different macro environment versus what we outlooked in August,” said Tom Panther, chief financial officer, FLEETCOR. “We’ve bridged this for you in our earnings supplement, and our results came in ahead of those proforma expectations, as our businesses continued the positive trends from the first half of the year. Our solid revenue performance and disciplined expense management in the quarter resulted in EBITDA margin expansion of 225 basis points over the prior period. Additionally, we deployed capital to drive future growth by acquiring PayByPhone and repurchasing $530 million
Updated Fiscal Year 2023 Outlook:
“Our guidance for the rest of the year has been updated to reflect our updated macro outlook for the remainder of the year, as well as our recent acquisition and divestiture. We currently expect our fourth quarter revenue and adjusted net income per share to grow approximately 10% and 11% , respectively,” concluded Panther.
For fiscal year 2023, FLEETCOR Technologies, Inc.'s updated financial guidance1 is as follows:
Total revenues between $3,774 million $3,804 million
Net income between $977 million $1,001 million
Net income per diluted share between $13.14 $13.44
Adjusted net income between $1,252 million $1,276 million
Adjusted net income per diluted share between $16.82 $17.12
FLEETCOR’s guidance assumptions are as follows:
For the balance of the year:
Weighted average U.S. fuel prices of $3.96
Market fuel spreads unfavorable to the fourth quarter of 2022;
Foreign exchange rates equal to the monthly average for October 2023; and
Fourth quarter revenues of $953 million $983 million $4.34 $4.64
For the full year:
Interest expense between $340 million $350 million
Approximately 74.5 million fully diluted shares outstanding;
A tax rate of 26% to 27% ; and
No impact related to acquisitions and dispositions not already closed.
Conference Call:
The Company will host a conference call to discuss third quarter 2023 financial results today at 5:30 pm ET. Hosting the call will be Ron Clarke, chief executive officer, Tom Panther, chief financial officer and Jim Eglseder, investor relations. The conference call can be accessed live via webcast from the Company's investor relations website at http://investor.fleetcor.com . 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 16769203. The replay will be available until November 15, 2023. 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, 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; 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; other risks related to our international operations, including the impact of the global military conflicts between Russia and Ukraine and in the Middle East , on our business and operations, the potential impact to our business as a result of the United Kingdom’s exit from the European Union; and 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, the impact of discrete tax items, the impact of business dispositions, impairment charges, asset write-offs, restructuring costs, loss on extinguishment of debt, and legal settlements and related legal fees. We adjust net income for the tax effect of adjustments using our effective income tax rate, exclusive of discrete tax items. We calculate adjusted net income 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, gains on business disposition, recoveries (e.g. legal settlements, write-off of customer receivable, etc.), gains and losses on investments, and impairment charges do not necessarily reflect how our investments and business are performing. We adjust net income for the tax effect of each of these adjustments items using the effective tax rate during the period, exclusive of discrete tax items.
Organic revenue growth is calculated as revenue growth in the current period adjusted for the impact of changes in the macroeconomic environment (to include fuel price, fuel price spreads and changes in foreign exchange rates) over revenue in the comparable prior period adjusted to include or remove the impact of acquisitions and/or divestitures and non-recurring items that have occurred subsequent to that period. We believe that organic revenue growth on a macro-neutral, one-time item, and consistent acquisition/divestiture/non-recurring item basis is useful to investors for understanding the performance of FLEETCOR.
EBITDA is defined as earnings before interest, income taxes, interest expense, net, other expense (income), depreciation and amortization, loss on extinguishment of debt, investment loss/gain and other operating, net.
Management uses adjusted net income, adjusted net income per diluted share, organic revenue growth and EBITDA:
as measurements of operating performance because they assist us in comparing our operating performance on a consistent basis;
for planning purposes, including the preparation of our internal annual operating budget;
to allocate resources to enhance the financial performance of our business; and
to evaluate the performance and effectiveness of our operational strategies.
About 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 September 30,
Nine Months Ended September 30,
2023
2022
%
2023
2022
%
Revenues, net
$
970,892
$
893,000
9
%
$
2,820,399
$
2,543,519
11
%
Expenses:
Processing
208,217
203,315
2
%
618,449
563,097
10
%
Selling
85,954
74,005
16
%
253,958
230,218
10
%
General and administrative
147,839
149,294
(1
)%
461,879
440,262
5
%
Depreciation and amortization
84,750
77,213
10
%
252,658
232,489
9
%
Other operating, net
(845
)
3
NM
633
82
NM
Total operating expense
525,915
503,830
4
%
1,587,577
1,466,148
8
%
Operating income
444,977
389,170
14
%
1,232,822
1,077,371
14
%
Other expenses:
Investment loss (gain)
30
174
NM
(142
)
519
NM
Other (income) expense, net
(13,432
)
3,688
NM
(15,110
)
6,187
NM
Interest expense, net
88,285
45,410
94
%
256,566
90,510
183
%
Loss on extinguishment of debt
—
—
NM
—
1,934
NM
Total other expense
74,883
49,272
52
%
241,314
99,150
143
%
Income before income taxes
370,094
339,898
9
%
991,508
978,221
1
%
Provision for income taxes
98,598
91,013
8
%
265,475
249,213
7
%
Net income
$
271,496
$
248,885
9
%
$
726,033
$
729,008
—
%
Basic earnings per share
$
3.71
$
3.34
11
%
$
9.87
$
9.55
3
%
Diluted earnings per share
$
3.64
$
3.29
10
%
$
9.72
$
9.38
4
%
Weighted average shares outstanding:
Basic shares
73,165
74,461
73,523
76,311
Diluted shares
74,604
75,558
74,733
77,687
NM- Not Meaningful
FLEETCOR Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands)
September 30, 2023
December 31, 2022
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
1,094,234
$
1,435,163
Restricted cash
1,221,279
854,017
Accounts and other receivables (less allowance)
2,655,275
2,064,745
Securitized accounts receivable — restricted for securitization investors
1,396,000
1,287,000
Prepaid expenses and other current assets
493,470
465,227
Total current assets
6,860,258
6,106,152
Property and equipment, net
329,992
294,692
Goodwill
5,553,546
5,201,435
Other intangibles, net
2,164,999
2,130,974
Investments
67,964
74,281
Other assets
287,708
281,726
Total assets
$
15,264,467
$
14,089,260
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
1,895,280
$
1,568,942
Accrued expenses
393,439
351,936
Customer deposits
1,783,311
1,505,004
Securitization facility
1,396,000
1,287,000
Current portion of notes payable and lines of credit
949,803
1,027,056
Other current liabilities
320,386
303,517
Total current liabilities
6,738,219
6,043,455
Notes payable and other obligations, less current portion
4,637,211
4,722,838
Deferred income taxes
548,943
527,465
Other noncurrent liabilities
280,643
254,009
Total noncurrent liabilities
5,466,797
5,504,312
Commitments and contingencies
Stockholders’ equity:
Common stock
129
128
Additional paid-in capital
3,227,476
3,049,570
Retained earnings
7,936,802
7,210,769
Accumulated other comprehensive loss
(1,361,934
)
(1,509,650
)
Treasury stock
(6,743,022
)
(6,209,324
)
Total stockholders’ equity
3,059,451
2,541,493
Total liabilities and stockholders’ equity
$
15,264,467
$
14,089,260
FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Cash Flows
(In thousands)
Nine Months Ended September 30,
2023
2022
Operating activities
Net income
$
726,033
$
729,008
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
82,028
67,066
Stock-based compensation
89,917
100,828
Provision for credit losses on accounts and other receivables
103,495
89,976
Amortization of deferred financing costs and discounts
5,417
5,949
Amortization of intangible assets and premium on receivables
170,630
165,423
Loss on extinguishment of debt
—
1,934
Deferred income taxes
(18,911
)
(7,987
)
Gain on disposition of business
(13,712
)
—
Other non-cash operating expense, net
491
601
Changes in operating assets and liabilities (net of acquisitions/disposition):
Accounts and other receivables
(809,487
)
(950,237
)
Prepaid expenses and other current assets
114,237
(25,570
)
Derivative assets and liabilities, net
(7,939
)
10,756
Other assets
33,090
(16,154
)
Accounts payable, accrued expenses and customer deposits
428,580
267,014
Net cash provided by operating activities
903,869
438,607
Investing activities
Acquisitions, net of cash acquired
(429,914
)
(160,117
)
Purchases of property and equipment
(117,158
)
(107,631
)
Proceeds from disposal of a business, net of cash disposed
197,025
—
Other
4,401
—
Net cash used in investing activities
(345,646
)
(267,748
)
Financing activities
Proceeds from issuance of common stock
101,202
22,109
Repurchase of common stock
(546,910
)
(1,295,644
)
Borrowings on securitization facility, net
109,000
364,000
Deferred financing costs paid and debt discount
(238
)
(10,282
)
Proceeds from issuance of notes payable
—
3,000,000
Principal payments on notes payable
(70,500
)
(2,800,500
)
Borrowings from revolver
6,495,000
4,338,000
Payments on revolver
(6,770,000
)
(3,658,000
)
Borrowings on swing line of credit, net
180,723
194
Other
264
—
Net cash used in financing activities
(501,459
)
(40,123
)
Effect of foreign currency exchange rates on cash
(30,431
)
(80,551
)
Net increase in cash and cash equivalents and restricted cash
26,333
50,185
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
$
2,315,513
$
2,300,880
Supplemental cash flow information
Cash paid for interest, net
$
327,099
$
138,310
Cash paid for income taxes, net
$
319,764
$
309,567
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 September 30,
Nine Months Ended September 30,
2023
2022
2023
2022
Net income
$
271,496
$
248,885
$
726,033
$
729,008
Stock based compensation
29,073
34,180
89,917
100,828
Amortization1
58,304
55,748
176,047
171,372
Integration and deal related costs
9,269
4,861
24,734
14,071
Legal settlements/litigation
1,473
2,783
1,957
4,685
Restructuring, related and other2 costs
2,314
507
3,017
1,270
Gain on disposition of business
(13,712
)
—
(13,712
)
—
Loss on extinguishment of debt
—
—
—
1,934
Total pre-tax adjustments
86,721
98,079
281,960
294,160
Income taxes
(23,104
)
(26,262
)
(75,540
)
(86,667
)
Adjusted net income
$
335,113
$
320,702
$
932,453
$
936,501
Adjusted net income per diluted share
$
4.49
$
4.24
$
12.48
$
12.06
Diluted shares
74,604
75,558
74,733
77,687
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 for recast ($1.9 million $4.1 million
*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 September 30,
Three Months Ended September 30,
2023
2022
Change
%
Change
2023
2022
Change
%
Change
FLEET
- Revenues, net
$
365.5
$
395.2
(29.7
)
(8
)%
$
396.7
$
381.1
$
15.6
4
%
- Transactions
122.0
123.4
(1.4
)
(1
)%
122.0
124.1
(2.1
)
(2
)%
- Revenues, net per transaction
$
2.99
$
3.20
$
(0.21
)
(6
)%
$
3.25
$
3.07
$
0.18
6
%
CORPORATE PAYMENTS
- Revenues, net
$
258.8
$
196.9
$
61.9
31
%
$
256.8
$
213.7
$
43.1
20
%
- Spend volume
39,446
30,609
8,837
29
%
39,446
32,828
6,618
20
%
- Revenues, net per spend $
0.66
%
0.64
%
0.01
%
2
%
0.65
%
0.65
%
—
%
—
%
LODGING
- Revenues, net
$
141.4
$
126.0
$
15.4
12
%
$
141.0
$
128.6
$
12.4
10
%
- Room nights
9.2
9.9
(0.7
)
(7
)%
9.2
10.0
(0.9
)
(9
)%
- Revenues, net per room night
$
15.41
$
12.78
$
2.62
21
%
$
15.36
$
12.81
$
2.55
20
%
BRAZIL
- Revenues, net
$
134.2
$
108.6
$
25.6
24
%
$
126.0
$
108.6
$
17.4
16
%
- Tags (average monthly)
6.7
6.2
0.4
7
%
6.7
6.2
0.4
7
%
- Revenues, net per tag
$
20.16
$
17.47
$
2.69
15
%
$
18.94
$
17.47
$
1.47
8
%
OTHER 1
- Revenues, net
$
71.0
$
66.3
$
4.7
7
%
$
70.5
$
66.3
$
4.2
6
%
- Transactions
296.6
249.4
47.1
19
%
296.6
249.4
47.1
19
%
- Revenues, net per transaction
$
0.24
$
0.27
$
(0.03
)
(10
)%
$
0.24
$
0.27
$
(0.03
)
(11
)%
FLEETCOR CONSOLIDATED REVENUES
- Revenues, net
$
970.9
$
893.0
$
77.9
9
%
$
991.1
$
898.3
$
92.8
10
%
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 September 30,
Nine Months Ended September 30,
2023
%
2022
%
2023
%
2022
%
US
$
561
58
%
$
558
63
%
$
1,610
57
%
$
1,558
61
%
Brazil
134
14
%
109
12
%
382
14
%
323
13
%
UK
115
12
%
90
10
%
333
12
%
278
11
%
Other
161
17
%
136
15
%
495
18
%
384
15
%
Consolidated Revenues, net
$
971
100
%
$
893
100
%
$
2,820
100
%
$
2,544
100
%
*Columns may not calculate due to rounding.
Revenues, net by Segment*
Three Months Ended September 30,
Nine Months Ended September 30,
2023
%
2022
%
2023
%
2022
%
Fleet
$ 366
38 %
$ 395
44 %
$ 1,121
40 %
$ 1,124
44 %
Corporate Payments
259
27 %
197
22 %
733
26 %
570
22 %
Lodging
141
15 %
126
14 %
400
14 %
337
13 %
Brazil
134
14 %
109
12 %
382
14 %
323
13 %
Other
71
7 %
66
7 %
184
7 %
189
7 %
Consolidated Revenues, net
$ 971
100 %
$ 893
100 %
$ 2,820
100 %
$ 2,544
100 %
*Columns may not calculate due to rounding. Segment and solutions reporting have converged to be the same. The recent acquisition of a parking business is included in our Fleet segment. The recent disposition of our Russian business is also included in our Fleet segment.
Exhibit 4
Segment Results*
(In thousands)
(Unaudited)
Three Months Ended September 30,
Nine Months Ended September 30,
20231
2022
%
20231
2022
%
Revenues, net:
Fleet
$
365,502
$
395,203
(8
)%
$
1,120,823
$
1,124,157
—
%
Corporate Payments
258,800
196,941
31
%
732,958
570,408
28
%
Lodging
141,389
125,961
12
%
400,287
337,438
19
%
Brazil
134,172
108,583
24
%
381,998
322,945
18
%
Other1
71,028
66,312
7
%
184,333
188,571
(2
)%
$
970,891
$
893,000
9
%
$
2,820,399
$
2,543,519
11
%
Operating income:
Fleet
$
186,614
$
192,598
(3
)%
$
547,637
$
547,233
—
%
Corporate Payments
102,143
69,669
47
%
265,100
193,735
37
%
Lodging
74,023
63,463
17
%
196,832
161,802
22
%
Brazil
61,054
44,646
37
%
168,673
123,591
36
%
Other1
21,143
18,794
12
%
54,580
51,010
7
%
$
444,977
$
389,170
14
%
$
1,232,822
$
1,077,371
14
%
Depreciation and amortization:
Fleet
$
34,219
$
34,897
(2
)%
$
104,147
$
104,531
—
%
Corporate Payments
21,114
15,864
33
%
61,458
48,936
26
%
Lodging
12,189
10,474
16
%
35,247
31,329
13
%
Brazil
14,989
13,756
9
%
45,065
41,164
9
%
Other1
2,239
2,222
1
%
6,741
6,529
3
%
$
84,750
$
77,213
10
%
$
252,658
$
232,489
9
%
Capital expenditures:
Fleet
$
18,261
$
20,960
(13
)%
$
56,126
$
55,197
2
%
Corporate Payments
6,969
5,952
17
%
22,235
15,598
43
%
Lodging
3,661
3,309
11
%
10,534
7,068
49
%
Brazil
7,856
9,273
(15
)%
23,386
22,871
2
%
Other1
1,489
1,508
(1
)%
4,877
6,897
(29
)%
$
38,236
$
41,002
(7
)%
$
117,158
$
107,631
9
%
1 Other includes Gift and Payroll Card operating segments.
*Columns may not calculate due to rounding. The recent acquisition of a parking business is included in our Fleet segment. The recent disposition of our Russian business is also included in our Fleet segment.
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 September 30,
Three Months Ended September 30,
2023*
2022*
2023*
2022*
FLEET - TRANSACTIONS
Pro forma and macro adjusted
$
396.7
$
381.1
122.0
124.1
Impact of acquisitions/dispositions
—
14.1
—
(0.7
)
Impact of fuel prices/spread
(34.4
)
—
—
—
Impact of foreign exchange rates
3.2
—
—
—
As reported
$
365.5
$
395.2
122.0
123.4
CORPORATE PAYMENTS - SPEND
Pro forma and macro adjusted
$
256.8
$
213.7
$
39,446
$
32,828
Impact of acquisitions/dispositions
—
(16.8
)
—
(2,219
)
Impact of fuel prices/spread
(0.2
)
—
—
—
Impact of foreign exchange rates
2.2
—
—
—
As reported
$
258.8
$
196.9
$
39,446
$
30,609
LODGING - ROOM NIGHTS
Pro forma and macro adjusted
$
141.0
$
128.6
9.2
10.0
Impact of acquisitions/dispositions
—
(2.6
)
—
(0.2
)
Impact of fuel prices/spread
—
—
—
—
Impact of foreign exchange rates
0.4
—
—
—
As reported
$
141.4
$
126.0
9.2
9.9
BRAZIL - TAGS
Pro forma and macro adjusted
$
126.0
$
108.6
6.7
6.2
Impact of acquisitions/dispositions
—
—
—
—
Impact of fuel prices/spread
(1.0
)
—
—
—
Impact of foreign exchange rates
9.1
—
—
—
As reported
$
134.2
$
108.6
6.7
6.2
OTHER1 - TRANSACTIONS
Pro forma and macro adjusted
$
70.5
$
66.3
296.6
249.4
Impact of acquisitions/dispositions
—
—
—
—
Impact of fuel prices/spread
—
—
—
—
Impact of foreign exchange rates
0.5
—
—
—
As reported
$
71.0
$
66.3
296.6
249.4
FLEETCOR CONSOLIDATED REVENUES
Pro forma and macro adjusted
$
991.1
$
898.3
Intentionally Left Blank
Impact of acquisitions/dispositions
—
(5.3
)
Impact of fuel prices/spread2
(35.6
)
—
Impact of foreign exchange rates2
15.4
—
As reported
$
970.9
$
893.0
* Columns may not calculate due to rounding.
1 Other includes Gift and Payroll Card operating segments.
2 Revenues reflect an estimated $23 million $12 million $15 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
Nine Months Ended
2023
2022
2023
2022
Net income
$
271.5
$
248.9
$
726.0
$
729.0
Provision for income taxes
98.6
91.0
265.5
249.2
Interest expense, net
88.3
45.4
256.6
90.5
Other (income) expense
(13.4
)
3.7
(15.1
)
6.2
Investment loss (gain)
—
0.2
(0.1
)
0.5
Depreciation and amortization
84.8
77.2
252.7
232.5
Loss on extinguishment of debt
—
—
—
1.9
Other operating, net
(0.8
)
—
0.6
0.1
EBITDA
$
528.9
$
466.4
$
1,486.1
$
1,309.9
Revenues, net
$
970.9
$
893.0
$
2,820.4
$
2,543.5
EBITDA margin
54.5
%
52.2
%
52.7
%
51.5
%
* Columns may not calculate due to rounding.
Exhibit 7
RECONCILIATION OF NON-GAAP GUIDANCE MEASURES
(In millions, except per share amounts)
(Unaudited)
The following table reconciles the fourth quarter 2023 and full year 2023 financial guidance for net income to adjusted net income and
Q4 2023 GUIDANCE
Low*
High*
Net income
$
251
$
275
Net income per diluted share
$
3.42
$
3.72
Stock based compensation
29
29
Amortization
59
59
Other
5
5
Total pre-tax adjustments
93
93
Income taxes
25
25
Adjusted net income
$
319
$
343
Adjusted net income per diluted share
$
4.34
$
4.64
Diluted shares
74
74
2023 GUIDANCE
Low*
High*
Net income
$
977
$
1,001
Net income per diluted share
$
13.14
$
13.44
Stock based compensation
120
120
Amortization
235
235
Other
20
20
Total pre-tax adjustments
375
375
Income taxes
99
99
Adjusted net income
$
1,252
$
1,276
Adjusted net income per diluted share
$
16.82
$
17.12
Diluted shares
74
74
*Columns may not calculate due to rounding.
View source version on businesswire.com: https://www.businesswire.com/news/home/20231108856731/en/
Investor Relations
Jim.Eglseder@fleetcor.com
Source: FLEETCOR Technologies, Inc.
What are FLEETCOR Technologies, Inc.'s Q3 2023 financial results?
FLEETCOR Technologies, Inc. reported 9% revenue growth to $970.9 million and 6% adjusted net income per share growth.
What was the impact of the acquisition of the world's second largest mobile parking operator on FLEETCOR Technologies, Inc.'s Q3 2023 results?
The acquisition drove organic revenue growth of 10%.
What was the increase in EBITDA for FLEETCOR Technologies, Inc. in Q3 2023?
EBITDA increased 13% to $528.9 million.
What is FLEETCOR Technologies, Inc.'s updated outlook for fiscal year 2023?
The company expects approximately 10% and 11% growth in fourth quarter revenue and adjusted net income per share, respectively, for fiscal year 2023.
