10-KPeriod: FY2013

CORPAY, INC. Annual Report, Year Ended Dec 31, 2013

Filed March 3, 2014For Securities:CPAY

Summary

FleetCor Technologies, Inc. (CPAY) reported strong revenue growth for the fiscal year ended December 31, 2013, with total revenues increasing by 26.5% to $895.2 million. This growth was driven by a combination of organic expansion and strategic acquisitions, particularly in its International segment, which saw a revenue increase of 41.3%. The company processed approximately 328 million transactions, highlighting its significant scale and operational capacity. Despite a slightly negative impact from the macroeconomic environment, such as lower fuel prices, FleetCor demonstrated robust operating income growth of 29.5%, reaching $420.6 million, with an improved operating margin of 47.0%. The company's strategic focus on expanding its product and service offerings and its strong market position across various geographies were key contributors to its financial performance. Financially, FleetCor maintained a healthy balance sheet, with total assets growing to $3.93 billion. The company managed its debt effectively, increasing borrowings primarily to fund its significant acquisition activities throughout 2013, which amounted to $848.2 million. This acquisition strategy has expanded its geographical reach and service capabilities. The company's commitment to technology investments, with over $53 million spent in 2013, supports its operational efficiency and competitive positioning. Looking ahead, FleetCor appears well-positioned for continued growth, leveraging its established networks and expanding service portfolio.

Financial Highlights

51 data points
Beta

Revenue

$895.17M

99.2% Gross Margin

Net Income

$284.50M

31.8% Net Margin

EPS (Diluted)

$3.36

Total Assets

$3.93B

Cash & Equivalents

$338.11M

Free Cash Flow

$354.90M

Financial Statements
Beta
Revenue$895.17M
Cost of Revenue$7.10M
Gross Profit$888.07M
Operating Income$420.63M
Net Income$284.50M
EPS (Basic)$3.48
EPS (Diluted)$3.36
Shares Outstanding (Basic)81.79M
Shares Outstanding (Diluted)84.66M

Key Highlights

  • 1Total revenues grew by 26.5% to $895.2 million in 2013, driven by organic growth and acquisitions.
  • 2International segment revenue saw a substantial increase of 41.3%, demonstrating geographic expansion and market penetration.
  • 3Operating income increased by 29.5% to $420.6 million, with an improved operating margin of 47.0%.
  • 4The company processed approximately 328 million transactions, indicating significant operational scale.
  • 5FleetCor completed $848.2 million in acquisitions during 2013, expanding its service offerings and market reach.
  • 6Investments in technology exceeded $53 million in 2013, supporting operational efficiency and future growth.

Frequently Asked Questions

FleetCor's revenue growth in 2013 was driven by a combination of factors, including organic growth in existing payment programs, the full-year impact of acquisitions completed in 2012, and acquisitions made during 2013. Despite a slightly negative macroeconomic environment, strategic acquisitions and increasing transaction volumes and revenue per transaction contributed to the 26.5% increase in total revenues.

The International segment was a significant growth driver, with revenue increasing by 41.3% to $434.5 million. This growth was fueled by organic expansion and the impact of recent acquisitions in regions such as Australia, New Zealand, Brazil, and the UK, which expanded the company's global footprint and product offerings.

FleetCor demonstrated strong financial performance in 2013, with significant growth in revenues and operating income. The company effectively managed its debt to fund strategic acquisitions, indicating a growth-oriented strategy. Investments in technology and a diverse geographic presence position the company well for continued expansion and market leadership in the workforce payment solutions sector.

Key expenses for FleetCor in 2013 included merchant commissions, processing costs, selling expenses, and general and administrative expenses. The increase in these expenses was largely attributable to the impact of acquisitions, increased sales and marketing efforts, and stock-based compensation, although operating income still grew significantly due to strong revenue increases.