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FLEETCOR Reports Third Quarter 2020 Financial Results

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Board of Directors Increases Share Repurchase Program by $1.0 Billion

FLEETCOR Technologies, Inc. (NYSE:FLT), a leading global business payments company, today reported financial results for its third quarter of 2020.

"We're pleased that our third quarter volumes stepped up sequentially in every line of business, driven primarily from increasing existing client usage. New sales performance also improved dramatically in the quarter, returning to 80% of prior period levels," said Ron Clarke, chairman and chief executive officer, FLEETCOR Technologies, Inc. "Client retention and credit trends were also very encouraging in the quarter and better than last year."

"We're progressing towards a first quarter, 2021 closing of our AFEX cross border acquisition that we announced in September, and we have a couple of additional active acquisition opportunities in and around the Corporate Payments space that we're currently working," concluded Clarke.

Financial Results for Third Quarter of 2020:

GAAP Results

  • Total revenues decreased 14% to $585.3 million in the third quarter of 2020, compared to $681.0 million in the third quarter of 2019.
  • Net income decreased 16% to $188.8 million in the third quarter of 2020, compared to $225.8 million in the third quarter of 2019.
  • Net income per diluted share decreased 12% to $2.19 in the third quarter of 2020, compared to $2.49 per diluted share in the third quarter of 2019.

Non-GAAP Results1

  • Adjusted net income1 decreased 14% to $241.9 million in the third quarter of 2020, compared to $280.6 million in the third quarter of 2019.
  • Adjusted net income per diluted share1 decreased 10% to $2.80 in the third quarter of 2020, compared to $3.10 per diluted share in the third quarter of 2019.

Fiscal-Year 2020 Outlook:

"While business conditions have improved globally, the sustainability of recoveries across our markets remains uncertain, therefore we have not reinstated our full-year 2020 outlook," said Charles Freund, chief financial officer, FLEETCOR Technologies, Inc. We expect to manage expenses 10%-12% below last year in order to balance current profitability with investment for future growth."

_______________________________________

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

Share Repurchase Program

The Company's board of directors authorized an increase in the size of the previously announced share repurchase program by an additional $1.0 billion of common stock. With the increase, and giving effect to the Company's previous repurchases, the Company may repurchase up to $1.056 billion of its common stock at any time prior to February 1, 2023.

Conference Call

The Company will host a conference call to discuss third quarter 2020 financial results today at 5:30 pm ET. Hosting the call will be Ron Clarke, chief executive officer, Charles Freund, chief financial officer and Jim Eglseder, SVP investor relations. The conference ID is 21971417, and the conference call can be accessed live over the phone by dialing (800) 920-3359, or for international callers (303) 223-0113. 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 replay will be available until Thursday, November 12, 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, 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," "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 many uncertainties and other variable circumstances, such as the impact of global, political, market, health, and other conditions, including the impact of the coronavirus (COVID-19); regulatory measures or voluntary actions, including social distancing, shelter-in-place, shutdowns of nonessential businesses and similar measures imposed or undertaken in an effort to combat the spread of the coronavirus (COVID-19); 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; delays or failures associated with implication of, or adaption to, new technology, fuel price and spread volatility; changes in credit risk of customers and associated losses; the actions of regulators relating to payment cards or resulting from investigations; failure to maintain or renew key business relationships; failure to maintain competitive offerings; failure to complete, or delays in completing, anticipated new partnerships and customer arrangements or acquisitions and to successfully integrate or otherwise achieve anticipated benefits from such partnerships, customer arrangements or acquired businesses; failure to successfully expand and manage our 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, 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 activities of fleets; 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, 2019 filed with the Securities and Exchange Commission on March 2, 2020 and subsequent filings made by us. These factors could cause our actual results and experience to differ materially from any forward-looking statement. The forward-looking statements included in this presentation are made only as of the date hereof. The forward-looking statements included in this press release are made only as of the date hereof. 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 or to the extent required by law. You may get FLEETCOR's Securities and Exchange Commission ("SEC") filings for free by visiting the SEC web site at www.sec.gov.

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, (c) integration and deal related costs, and (d) other non-recurring items, including unusual credit losses occurring due largely to COVID-19, the impact of discrete tax items, impairment charges, asset write-offs, restructuring costs, gains due to disposition of assets and a business, loss on extinguishment of debt, and legal settlements. 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 stock-based compensation expense from adjusted net income because non-cash equity grants made at a certain price and point in time do not necessarily reflect how our business is performing at any particular time and 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 that integration and deal related costs and one-time non-recurring expenses, gains, losses, 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 non-tax items. 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.

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 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
Unaudited Consolidated Statements of Income
(In thousands, except per share amounts)
 

Three Months Ended September 30,

 

Nine Months Ended September 30,

2020

 

2019

 

2020

 

2019

 
Revenues, net

$

585,283

 

$

681,048

 

$

1,771,522

 

$

1,949,967

 

 
Expenses:
Processing

 

119,856

 

 

135,016

 

 

474,849

 

 

384,588

 

Selling

 

46,762

 

 

51,790

 

 

144,995

 

 

152,907

 

General and administrative

 

90,868

 

 

98,050

 

 

283,717

 

 

297,618

 

Depreciation and amortization

 

63,479

 

 

67,347

 

 

190,117

 

 

205,700

 

Other operating, net

 

(214

)

 

(296

)

 

(482

)

 

(1,480

)

Operating income

 

264,532

 

 

329,141

 

 

678,326

 

 

910,634

 

Investment loss (gain)

 

1,330

 

 

-

 

 

(30,008

)

 

15,660

 

Other (income) expense, net

 

(3,591

)

 

(120

)

 

(10,477

)

 

628

 

Interest expense, net

 

31,383

 

 

36,504

 

 

99,474

 

 

115,088

 

Total other expense

 

29,122

 

 

36,384

 

 

58,989

 

 

131,376

 

Income before income taxes

 

235,410

 

 

292,757

 

 

619,337

 

 

779,258

 

Provision for income taxes

 

46,593

 

 

66,952

 

 

124,972

 

 

119,695

 

Net income

$

188,817

 

$

225,805

 

$

494,365

 

$

659,563

 

 
Basic earnings per share

$

2.26

 

$

2.61

 

$

5.87

 

$

7.64

 

Diluted earnings per share

$

2.19

 

$

2.49

 

$

5.68

 

$

7.33

 

 
Weighted average shares outstanding:
Basic shares

 

83,719

 

 

86,662

 

 

84,170

 

 

86,332

 

Diluted shares

 

86,273

 

 

90,522

 

 

87,006

 

 

89,976

 

FLEETCOR Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands, except share and par value amounts)
September 30, 2020 December 31, 2019
(Unaudited)
Assets
 
Current assets:
Cash and cash equivalents

$

788,854

$

1,271,494

Restricted cash

 

582,006

 

403,743

Accounts and other receivables (less allowance for credit losses of $83,882 at September 30, 2020 and $70,890 at December 31, 2019, respectively)

 

1,552,695

 

1,568,961

Securitized accounts receivable - restricted for securitization investors

 

688,000

 

970,973

Prepaid expenses and other current assets

 

359,461

 

403,400

 
Total current assets

 

3,971,016

 

4,618,571

 
Property and equipment, net

 

189,953

 

199,825

Goodwill

 

4,613,597

 

4,833,047

Other intangibles, net

 

2,115,189

 

2,341,882

Investments

 

7,480

 

30,440

Other assets

 

196,764

 

224,776

 
Total assets

$

11,093,999

$

12,248,541

 
Liabilities and Stockholders' Equity
 
Current liabilities:
Accounts payable

$

1,297,236

$

1,249,586

Accrued expenses

 

299,396

 

275,511

Customer deposits

 

1,123,974

 

1,007,631

Securitization facility

 

688,000

 

970,973

Current portion of notes payable and lines of credit

 

645,769

 

775,865

Other current liabilities

 

141,432

 

183,502

 
Total current liabilities

 

4,195,807

 

4,463,068

 
Notes payable and other obligations, less current portion

 

3,158,810

 

3,289,947

Deferred income taxes

 

506,102

 

519,980

Other noncurrent liabilities

 

295,530

 

263,930

 
Total noncurrent liabilities

 

3,960,442

 

4,073,857

 
Commitments and contingencies
 
Stockholders' equity:
Common stock, $0.001 par value; 475,000,000 shares authorized; 125,997,304 shares issued and 83,396,765 shares outstanding at September 30, 2020; and 124,626,786 shares issued and 85,342,156 shares outstanding at December 31, 2019

 

126

 

124

Additional paid-in capital

 

2,713,022

 

2,494,721

Retained earnings

 

5,207,094

 

4,712,729

Accumulated other comprehensive loss

 

(1,583,136)

 

(972,465)

Less treasury stock, 42,600,539 shares at September 30, 2020 and 39,284,630 shares at December 31, 2019

 

(3,399,356)

 

(2,523,493)

 
Total stockholders' equity

 

2,937,750

 

3,711,616

 
Total liabilities and stockholders' equity

$

11,093,999

$

12,248,541

FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Cash Flows
(In thousands)

Nine Months Ended September 30,

2020

 

2019

 
Operating activities
Net income

$

494,365

 

$

659,563

 

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

 

48,150

 

 

46,393

 

Stock-based compensation

 

35,069

 

 

46,120

 

Provision for losses on accounts and other receivables

 

152,485

 

 

54,735

 

Amortization of deferred financing costs and discounts

 

5,028

 

 

3,741

 

Amortization of intangible assets and premium on receivables

 

141,967

 

 

159,307

 

Deferred income taxes

 

(5,747

)

 

11,142

 

Investment (gain) loss

 

(30,008

)

 

15,660

 

Other non-cash operating income

 

(482

)

 

(1,778

)

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

 

49,690

 

 

(472,378

)

Prepaid expenses and other current assets

 

26,105

 

 

(77,836

)

Other assets

 

6,129

 

 

(26,578

)

Accounts payable, accrued expenses and customer deposits

 

291,945

 

 

373,044

 

Net cash provided by operating activities

 

1,214,696

 

 

791,135

 

 
 
Investing activities
Acquisitions, net of cash acquired

 

(72,557

)

 

(334,860

)

Purchases of property and equipment

 

(55,019

)

 

(48,681

)

Proceeds from disposal of investment

 

52,963

 

 

-

 

Net cash used in investing activities

 

(74,613

)

 

(383,541

)

 
 
Financing activities
Proceeds from issuance of common stock

 

95,780

 

 

117,627

 

Repurchase of common stock

 

(788,409

)

 

(59,362

)

(Payments) borrowings on securitization facility, net

 

(282,973

)

 

106,000

 

Deferred financing costs paid and debt discount

 

(2,474

)

 

(2,421

)

Proceeds from issuance of notes payable

 

-

 

 

700,000

 

Principal payments on notes payable

 

(134,097

)

 

(97,313

)

Borrowings from revolver

 

1,198,500

 

 

965,709

 

Payments on revolver

 

(1,287,899

)

 

(1,992,296

)

(Payments) borrowings on swing line of credit, net

 

(20,111

)

 

1,775

 

Other

 

(244

)

 

(189

)

Net cash used in financing activities

 

(1,221,927

)

 

(260,470

)

 
Effect of foreign currency exchange rates on cash

 

(222,533

)

 

(46,140

)

 
Net (decrease) increase in cash and cash equivalents and restricted cash

 

(304,377

)

 

100,984

 

Cash and cash equivalents and restricted cash, beginning of period

 

1,675,237

 

 

1,364,893

 

Cash and cash equivalents and restricted cash, end of period

$

1,370,860

 

$

1,465,877

 

 
Supplemental cash flow information
Cash paid for interest

$

98,564

 

$

136,850

 

 
Cash paid for income taxes

$

119,089

 

$

148,727

 

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,

2020

 

2019

 

2020

 

2019

Net income

$

188,817

 

$

225,805

 

$

494,365

 

$

659,563

 

 
Stock based compensation

 

11,905

 

 

15,273

 

 

35,069

 

 

46,120

 

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

 

49,078

 

 

52,907

 

 

146,995

 

 

163,048

 

Investment loss (gain)

 

1,330

 

 

-

 

 

(30,008

)

 

15,660

 

Integration and deal related costs1

 

1,768

 

 

-

 

 

11,035

 

 

-

 

Restructuring and related costs

 

185

 

 

-

 

 

4,912

 

 

-

 

Legal settlements/litigation

 

2,048

 

 

-

 

 

(2,989

)

 

3,474

 

Write-off of customer receivable2

 

-

 

 

-

 

 

90,058

 

 

-

 

Total pre-tax adjustments

 

66,314

 

 

68,180

 

 

255,072

 

 

228,302

 

 
Income tax impact of pre-tax adjustments at the effective tax rate3

 

(13,196

)

 

(15,177

)

 

(55,429

)

 

(49,023

)

Impact of discrete tax item4

 

-

 

 

1,782

 

 

9,848

 

 

(63,098

)

 
Adjusted net income

$

241,935

 

$

280,590

 

$

703,856

 

$

775,744

 

Adjusted net income per diluted share

$

2.80

 

$

3.10

 

$

8.09

 

$

8.62

 

 
Diluted shares

 

86,273

 

 

90,522

 

 

87,006

 

 

89,976

 

 

1 Beginning in the first quarter of 2020, the Company included integration and deal related costs in its definition to calculate adjusted net income and adjusted net income per diluted share. Prior period amounts were approximately $1.0 million and $3.8 million for the three and nine months ended September 30, 2019, respectively, which we consider immaterial.

2 Represents a bad debt loss in the first quarter of 2020 from a large client in our Cambridge business entering voluntary bankruptcy due to the extraordinary impact of the COVID-19 pandemic.

3 Excludes the results of the Company's investment in the nine months ended September 30, 2019, on our effective tax rate, as results from Masternaut investment are reported within the consolidated Statements of Income on a post-tax basis and no tax-over-book outside basis difference prior to disposition.

4 Represents impact of a discrete tax reserve adjustment related to prior year tax positions in 2020 and tax reform in 2019. Also includes the impact from the disposition of our investment in Masternaut of $64.9 million during the nine months ended September 30, 2019.

* 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 September 30,

 

Three Months Ended September 30,

2020

 

2019

 

Change

 

% Change

 

2020

 

2019

 

Change

 

% Change

 
FUEL
- Revenues, net

$

255.1

 

$

295.6

 

$

(40.5

)

(14

%)

$

262.4

 

$

295.6

 

$

(33.2

)

(11

%)

- Transactions

 

113.6

 

 

129.4

 

 

(15.8

)

(12

%)

 

113.6

 

 

129.4

 

 

(15.8

)

(12

%)

- Revenues, net per transaction

$

2.25

 

$

2.28

 

$

(0.04

)

(2

%)

$

2.31

 

$

2.28

 

$

0.03

 

1

%

 
CORPORATE PAYMENTS
- Revenues, net1

$

106.5

 

$

120.0

 

$

(13.5

)

(11

%)

$

106.5

 

$

120.0

 

$

(13.4

)

(11

%)

- Spend volume

$

15,567

 

$

19,033

 

$

(3,466

)

(18

%)

$

15,567

 

$

19,033

 

$

(3,466

)

(18

%)

- Revenues, net per spend $

 

0.68

%

 

0.63

%

 

0.05

%

9

%

 

0.68

%

 

0.63

%

 

0.05

%

9

%

 
TOLLS
- Revenues, net

$

67.6

 

$

88.7

 

$

(21.1

)

(24

%)

$

91.6

 

$

88.7

 

$

2.9

 

3

%

- Tags (average monthly)

 

5.4

 

 

5.1

 

 

0.3

 

5

%

 

5.4

 

 

5.1

 

 

0.3

 

5

%

- Revenues, net per tag

$

12.60

 

$

17.43

 

$

(4.83

)

(28

%)

$

17.06

 

$

17.43

 

$

(0.37

)

(2

%)

 
LODGING
- Revenues, net

$

52.9

 

$

56.4

 

$

(3.5

)

(6

%)

$

52.9

 

$

78.2

 

$

(25.3

)

(32

%)

- Room nights

 

5.4

 

 

4.4

 

 

1.0

 

22

%

 

5.4

 

 

7.1

 

 

(1.7

)

(24

%)

- Revenues, net per room night

$

9.77

 

$

12.74

 

$

(2.97

)

(23

%)

$

9.77

 

$

10.94

 

$

(1.16

)

(11

%)

 
GIFT
- Revenues, net

$

39.1

 

$

48.5

 

$

(9.4

)

(19

%)

$

39.1

 

$

48.5

 

$

(9.4

)

(19

%)

- Transactions

 

242.7

 

 

277.8

 

 

(35.1

)

(13

%)

 

242.7

 

 

277.8

 

 

(35.1

)

(13

%)

- Revenues, net per transaction

$

0.16

 

$

0.17

 

$

(0.01

)

(8

%)

$

0.16

 

$

0.17

 

$

(0.01

)

(8

%)

 
OTHER2
- Revenues, net1

$

64.1

 

$

71.9

 

$

(7.8

)

(11

%)

$

65.6

 

$

71.9

 

$

(6.4

)

(9

%)

- Transactions1

 

9.9

 

 

14.6

 

 

(4.7

)

(32

%)

 

9.9

 

 

14.6

 

 

(4.7

)

(32

%)

- Revenues, net per transaction

$

6.48

 

$

4.93

 

$

1.55

 

31

%

$

6.63

 

$

4.93

 

$

1.69

 

34

%

 
 
FLEETCOR CONSOLIDATED REVENUES
- Revenues, net

$

585.3

 

$

681.0

 

$

(95.8

)

(14

%)

$

618.0

 

$

702.9

 

$

(84.9

)

(12

%)

 
 

1 Reflects certain reclassifications of revenue between product categories as the Company realigned its corporate payments business, resulting in reclassification of payroll paycard revenue from corporate payments to other.

2 Other includes telematics, maintenance, food, transportation and payroll card 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 September 30,

 

Nine Months Ended September 30,

2020

 

%

 

2019

 

%

 

2020

 

%

 

2019

 

%

 
US

$

357

61%

$

414

61%

$

1,090

62%

$

1,174

60%

Brazil

 

80

14%

 

106

16%

 

254

14%

 

316

16%

UK

 

70

12%

 

68

10%

 

193

11%

 

205

10%

Other

 

78

13%

 

93

14%

 

235

13%

 

256

13%

 
Consolidated Revenues, net

$

585

100%

$

681

100%

$

1,772

100%

$

1,950

100%

* Columns may not calculate due to rounding.
 
Revenue by Product Category*1

Three Months Ended September 30,

 

Nine Months Ended September 30,

2020

 

%

 

2019

 

%

 

2020

 

%

 

2019

 

%

 
Fuel

$

255

44%

$

296

43%

$

797

45%

$

874

45%

Corporate Payments

 

107

18%

 

120

18%

 

319

18%

 

329

17%

Tolls

 

68

12%

 

89

13%

 

215

12%

 

264

14%

Lodging

 

53

9%

 

56

8%

 

150

8%

 

148

8%

Gift

 

39

7%

 

48

7%

 

108

6%

 

133

7%

Other

 

64

11%

 

72

11%

 

182

10%

 

203

10%

 
Consolidated Revenues, net

$

585

100%

$

681

100%

$

1,772

100%

$

1,950

100%

* Columns may not calculate due to rounding.
 

1 Reflects certain reclassifications of revenue between product categories as the Company realigned its corporate payments business, resulting in reclassification of payroll paycard revenue from corporate payments to other.

Exhibit 4
Segment Results
(In thousands)
(Unaudited)
 

Three Months Ended September 30,

 

Nine Months Ended September 30,

2020

 

20191

 

2020

 

20191

 
Revenues, net:
North America

$

383,828

$

442,704

$

1,175,950

$

1,257,544

Brazil

 

79,596

 

106,574

 

253,722

 

315,854

International

 

121,859

 

131,770

 

341,850

 

376,569

$

585,283

$

681,048

$

1,771,522

$

1,949,967

 
Operating income:
North America

$

153,328

$

205,558

$

372,219

$

562,230

Brazil

 

35,600

 

42,469

 

104,462

 

126,884

International

 

75,604

 

81,114

 

201,645

 

221,520

$

264,532

$

329,141

$

678,326

$

910,634

 
Depreciation and amortization:
North America

$

39,390

$

39,309

$

115,913

$

119,476

Brazil

 

12,260

 

16,224

 

39,019

 

49,314

International

 

11,829

 

11,814

 

35,185

 

36,910

$

63,479

$

67,347

$

190,117

$

205,700

 
Capital expenditures:
North America

$

12,053

$

10,340

$

35,590

$

30,023

Brazil

 

3,501

 

4,296

 

10,309

 

12,273

International

 

2,595

 

2,070

 

9,120

 

6,385

$

18,149

$

16,706

$

55,019

$

48,681

 
1 The Company has historically had two reportable segments, North America and International. In the first quarter of 2020, in order to better align with changes in business models and management reporting, the Company has broken out Brazil as a third segment, which was previously reported in the International segment. The presentation of segment information has been recast for the prior quarter to align with segment presentation in 2020.
Exhibit 5
Reconciliation of Non-GAAP Revenue and Key Performance Metric by Product to GAAP
(In millions)
(Unaudited)
Revenues, net Key Performance Metric
Three Months Ended September 30, Three Months Ended September 30,
2020* 2019* 2020* 2019*

 

 

 

FUEL-TRANSACTIONS

 

 

 

Pro forma and macro adjusted

$

262.4

 

 

$

295.6

 

113.6

 

129.4

 

Impact of acquisitions/dispositions

 

-

 

 

 

-

 

-

 

-

 

Impact of fuel prices/spread

 

(4.5

)

 

 

-

 

-

 

-

 

Impact of foreign exchange rates

 

(2.8

)

 

 

-

 

-

 

-

 

As reported

$

255.1

 

 

$

295.6

 

113.6

 

129.4

 

 

 

 

 

 

 

CORPORATE PAYMENTS- SPEND

 

 

 

 

 

Pro forma and macro adjusted

$

106.5

 

 

$

120.0

 

15,567

 

19,033

 

Impact of acquisitions/dispositions

 

-

 

 

 

-

 

-

 

-

 

Impact of fuel prices/spread

 

(0.4

)

 

 

-

 

-

 

-

 

Impact of foreign exchange rates

 

0.3

 

 

 

-

 

-

 

-

 

As reported

$

106.5

 

 

$

120.0

 

15,567

 

19,033

 

 

 

 

 

 

 

TOLLS- TAGS

 

 

 

 

 

 

Pro forma and macro adjusted

$

91.6

 

 

$

88.7

 

5.4

 

5.1

 

Impact of acquisitions/dispositions

 

-

 

 

 

-

 

-

 

-

 

Impact of fuel prices/spread

 

-

 

 

 

-

 

-

 

-

 

Impact of foreign exchange rates

 

(23.9

)

 

 

-

 

-

 

-

 

As reported

$

67.6

 

 

$

88.7

 

5.4

 

5.1

 

 

 

 

 

 

 

LODGING- ROOM NIGHTS

 

 

 

 

 

 

Pro forma and macro adjusted

$

52.9

 

 

$

78.2

 

5.4

 

7.1

 

Impact of acquisitions/dispositions

 

-

 

 

 

(21.8

)

-

 

(2.7

)

Impact of fuel prices/spread

 

-

 

 

 

-

 

-

 

-

 

Impact of foreign exchange rates

 

-

 

 

 

-

 

-

 

-

 

As reported

$

52.9

 

 

$

56.4

 

5.4

 

4.4

 

 

 

 

 

 

 

GIFT- TRANSACTIONS

 

 

 

 

 

Pro forma and macro adjusted

$

39.1

 

 

$

48.5

 

242.7

 

277.8

 

Impact of acquisitions/dispositions

 

-

 

 

 

-

 

-

 

-

 

Impact of fuel prices/spread

 

-

 

 

 

-

 

-

 

-

 

Impact of foreign exchange rates

 

-

 

 

 

-

 

-

 

-

 

As reported

$

39.1

 

 

$

48.5

 

242.7

 

277.8

 

 

 

 

 

 

 

OTHER1- TRANSACTIONS

 

 

 

 

 

Pro forma and macro adjusted

$

65.6

 

 

$

71.9

 

9.9

 

14.6

 

Impact of acquisitions/dispositions

 

-

 

 

 

-

 

-

 

-

 

Impact of fuel prices/spread

 

-

 

 

 

-

 

-

 

-

 

Impact of foreign exchange rates

 

(1.4

)

 

 

-

 

-

 

-

 

As reported

$

64.1

 

 

$

71.9

 

9.9

 

14.6

 

 

 

 

 

 

 

FLEETCOR CONSOLIDATED REVENUES

 

 

 

Pro forma and macro adjusted

$

618.0

 

 

$

702.9

 

Impact of acquisitions/dispositions

 

-

 

 

 

(21.8

)

Impact of fuel prices/spread

 

(4.9

)

 

 

-

 

Intentionally Left Blank
Impact of foreign exchange rates

 

(27.8

)

 

 

-

 

As reported

$

585.3

 

 

$

681.0

 

 
* Columns may not calculate due to rounding.
1 Other includes telematics, maintenance, food, transportation and payroll card related businesses.

 

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