01—Abstract
Summary
Summary of the 10-K filed February 29, 2016. Cited figures are marked; the original filing is the authoritative source.
FleetCor Technologies, Inc. (CPAY) reported strong revenue growth in its 2015 10-K filing, primarily driven by strategic acquisitions, most notably the significant acquisition of Comdata in late 2014.
Total revenues increased by 42% year-over-year, reaching $1.7 billiona, propelled by the North America segment which saw an 84.3% revenue jump due to Comdata's contribution. While the international segment experienced a revenue decline, the company's overall transaction volume surged by over 180% primarily due to the inclusion of Comdata's SVS product. Despite the revenue growth, net income saw a slight decrease of 1.7% to $362.4 million.
This was influenced by increased operating expenses, including higher depreciation and amortization costs stemming from acquisitions, significant stock-based compensation expenses, and a substantial impairment charge related to its equity method investment in Masternaut. The company's strategic focus on acquisitions continues, with over 65 completed since 2002, and a stated intention to pursue further growth opportunities.
Investors should note the company's robust financial position, supported by significant credit facilities, and its ongoing efforts to streamline operations and integrate acquisitions. The company also announced a new $500 millionb stock repurchase program in February 2016, indicating confidence in its future performance and a commitment to returning value to shareholders.
02—Key points
Key Highlights
- Total revenues grew 42.0% to $1.7 billion in 2015, largely due to the acquisition of Comdata.
- The North America segment's revenue increased by 84.3% to $1.23 billion, significantly boosted by acquisitions.
- Consolidated transaction volumes more than tripled, reaching 1.85 billion in 2015, primarily driven by the Comdata acquisition.
- Net income slightly decreased by 1.7% to $362.4 million, impacted by increased operating expenses and an impairment charge.
- Operating income increased by 18.1% to $667.5 million, although operating margin declined from 47.1% to 39.2%.
- The company reported strong liquidity with $447.2 million in cash and cash equivalents and significant availability under its credit facilities.
- A new $500 million stock repurchase program was approved in February 2016.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2015, Corpay, Inc. kept $0.21.
- Revenue$1.70B100.0%
- Cost of revenue−$84.1M4.9%
- Gross profit$1.62B95.1%
- Operating costs−$951.2M55.9%
- Operating income$667.5M39.2%
- Interest, other & tax−$305.1M17.9%
- Net income$362.4M21.3%
Where FY2015 revenue went
$1.70B- Operating costs: $951.2M, 56% of revenue
- Net income: $362.4M, 21% of revenue
- Interest, other & tax: $305.1M, 18% of revenue
- Cost of revenue: $84.1M, 4.9% of revenue
Kept 21% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2015filed February 29, 2016Financial Statements
FY2015 against FY2014
| Line item | FY2015FY2014 | Change |
|---|---|---|
| Revenue | $1.70B$1.20B | +42.0% |
| Cost of Revenue | $84.10M$13.20M | +537.1% |
| Gross Profit | $1.62B$1.19B | +36.5% |
| Operating Income | $667.53M$565.45M | +18.1% |
| Net Income | $362.43M$368.71M | −1.7% |
| EPS (Basic) | $3.94$4.37 | −9.8% |
| EPS (Diluted) | $3.85$4.24 | −9.2% |
| Shares Outstanding (Basic) | 92.02M84.32M | +9.1% |
| Shares Outstanding (Diluted) | 94.14M86.98M | +8.2% |
05—Questions
Frequently Asked Questions
What was the primary driver of FleetCor's revenue growth in 2015?
The primary driver of FleetCor's revenue growth in 2015 was the acquisition of Comdata in November 2014. This acquisition significantly boosted the North America segment's revenue and the company's overall transaction volumes.
What factors led to the slight decrease in net income despite revenue growth?
The slight decrease in net income was primarily due to increased operating expenses, including higher depreciation and amortization from acquisitions, significant stock-based compensation expenses, and a $40 million impairment charge related to the equity method investment in Masternaut. These factors outweighed the revenue growth.
How did the Comdata acquisition impact FleetCor's financial performance?
The Comdata acquisition had a substantial impact, more than tripling the company's transaction volumes and significantly increasing North America segment revenue. However, it also led to higher operating expenses, including depreciation and amortization, which affected profitability.
What is FleetCor's approach to managing its debt and liquidity?
FleetCor maintains a significant amount of debt, primarily from its credit facilities and a securitization facility. The company reports strong liquidity with substantial cash reserves and available credit lines. It utilizes these facilities to fund working capital, acquisitions, and general corporate purposes.
06—Continue