Summary
Corpay, Inc. (formerly FleetCor Technologies, Inc.), as reported in its March 1, 2017, 10-K filing, demonstrated robust revenue growth driven by strategic acquisitions and organic expansion. The company, a global leader in workforce payment products, saw its revenue increase by 7.6% year-over-year to $1.83 billion in 2016, supported by strong performance in its International segment, which grew by 17.3%, and a more modest 3.8% increase in North America. This growth was primarily attributed to the acquisition of STP and other businesses, alongside organic growth in payment programs. Despite macro-economic headwinds that impacted revenue by approximately $109 million, the company managed its expenses effectively, leading to a 24.8% increase in net income to $452.4 million and a 13.0% rise in operating income. The company's diversified product portfolio includes fuel cards, corporate payments, toll products, lodging cards, and gift cards, serving a broad customer base across various industries. Corpay's business model relies on proprietary networks and third-party networks to facilitate transactions, providing customers with enhanced control over spending, fraud prevention, and valuable data analytics. The company's commitment to technology investment, including over $150 million in 2016 for operating, protecting, and enhancing its technology infrastructure, underpins its competitive advantage and ability to support a large volume of transactions.
Financial Highlights
50 data points| Revenue | $1.83B |
| Cost of Revenue | $91.60M |
| Gross Profit | $1.74B |
| Operating Income | $754.15M |
| Net Income | $452.38M |
| EPS (Basic) | $4.89 |
| EPS (Diluted) | $4.75 |
| Shares Outstanding (Basic) | 92.60M |
| Shares Outstanding (Diluted) | 95.21M |
Key Highlights
- 1Corpay (FLT) reported a 7.6% increase in consolidated revenue to $1.83 billion for fiscal year 2016, up from $1.70 billion in 2015.
- 2Net income saw a significant increase of 24.8%, reaching $452.4 million in 2016, compared to $362.4 million in 2015, with diluted EPS growing to $4.75 from $3.85.
- 3The International segment was a key growth driver, with revenue increasing by 17.3% year-over-year, largely due to the acquisition of STP and other strategic acquisitions.
- 4North America segment revenue grew by 3.8%, driven by organic growth and acquisitions, though negatively impacted by macroeconomic factors like lower fuel prices and spreads.
- 5The company processed approximately 2.2 billion transactions in 2016, reflecting its scale and operational capacity, aided by the acquisition of Comdata which added approximately 1.3 billion transactions.
- 6Corpay continued its aggressive acquisition strategy, completing over 70 acquisitions since 2002, including significant ones in 2016 like STP for approximately $1.23 billion.
- 7The company maintained strong financial discipline, with operating income increasing by 13.0% to $754.2 million, and an operating margin of 41.2% in 2016.