10-KPeriod: FY2012

CORPAY, INC. Annual Report, Year Ended Dec 31, 2012

Filed March 1, 2013For Securities:CPAY

Summary

FleetCor Technologies, Inc. (CPAY) reported strong financial performance for the fiscal year ended December 31, 2012. The company demonstrated significant revenue growth, driven by both organic expansion and strategic acquisitions in North America and internationally. FleetCor's core business of providing fuel cards and payment solutions to commercial fleets and businesses continues to be a primary revenue driver, supported by a robust network of proprietary and third-party acceptance locations. Key financial highlights include substantial increases in revenue, operating income, and net income year-over-year, reflecting successful integration of acquired businesses and effective cost management. The company's balance sheet also shows growth in assets, largely due to acquisitions, and a well-managed debt structure. FleetCor's strategic focus on expanding its global reach and product offerings appears to be yielding positive results, positioning the company for continued growth. Investors should note the ongoing importance of acquisitions as a growth strategy and the company's commitment to technological investment to maintain its competitive edge.

Financial Highlights

51 data points
Beta

Revenue

$707.53M

99.3% Gross Margin

Net Income

$216.20M

30.6% Net Margin

EPS (Diluted)

$2.52

Total Assets

$2.72B

Cash & Equivalents

$283.65M

Free Cash Flow

$116.35M

Financial Statements
Beta
Revenue$707.53M
Cost of Revenue$4.70M
Gross Profit$702.83M
Operating Income$324.93M
Interest Expense$13.02M
Net Income$216.20M
EPS (Basic)$2.59
EPS (Diluted)$2.52
Shares Outstanding (Basic)83.33M
Shares Outstanding (Diluted)85.74M

Key Highlights

  • 1Record revenue of $707.5 million in 2012, a 36.2% increase from 2011, driven by organic growth and acquisitions.
  • 2Operating income rose by 43.6% to $324.9 million, with an improved operating margin of 45.9% in 2012.
  • 3Net income increased by 46.8% to $216.2 million in 2012.
  • 4The company completed significant acquisitions in 2012, including businesses in Russia and Brazil, expanding its international footprint.
  • 5FleetCor maintained a strong liquidity position, with $283.6 million in unrestricted cash and cash equivalents at year-end 2012, and significant availability under its credit facilities.
  • 6Investments in technology and infrastructure totaled over $46 million in 2012 to support ongoing operations and future growth.
  • 7The company reported no network, application, or data security breaches as of December 31, 2012, highlighting a commitment to security.

Frequently Asked Questions

FleetCor's revenue growth in 2012 was primarily driven by a combination of organic growth within existing payment programs and the impact of acquisitions completed in 2012 and the full year contribution from acquisitions made in 2011. Macroeconomic factors, including higher fuel spread margins and slightly higher fuel prices, also positively impacted revenue, although this was partially offset by unfavorable foreign exchange rates.

The company has significantly expanded its international presence. International segment revenue grew by 80.0% in 2012, driven by acquisitions in Russia and Brazil, as well as organic growth. This expansion has diversified the company's revenue streams and increased its global market reach.

FleetCor manages its liquidity through a combination of operating cash flows, a securitization facility for accounts receivable, and significant credit facilities. As of December 31, 2012, the company had substantial unrestricted cash and cash equivalents and significant undrawn capacity under its credit facilities, indicating a strong liquidity position. The company also refinanced its debt in 2011, securing a new credit facility with a lower interest rate, and has covenants in place that manage its debt levels.

Key risks include a decline in retail fuel prices affecting revenue, contraction in fuel-price spreads, potential increases in credit losses due to customer defaults, intense competition, reliance on strategic partner relationships (like major oil companies), and risks associated with international operations, including currency fluctuations and political/economic instability. The company also notes risks related to cybersecurity, intellectual property protection, and the potential impairment of goodwill and intangible assets.