10-KPeriod: FY2019

CORPAY, INC. Annual Report, Year Ended Dec 31, 2019

Filed March 2, 2020For Securities:CPAY

Summary

CORPAY, INC. (CPAY) reported strong performance in its 2019 fiscal year, demonstrating robust revenue growth driven by both organic expansion and strategic acquisitions. The company's diversified payment solutions, spanning fuel, corporate payments, tolls, lodging, and gift cards, continue to gain traction across North America and international markets. Despite some headwinds from unfavorable foreign currency movements and a slight increase in bad debt expense, CORPAY's operational efficiency and expanding product offerings led to significant improvements in operating income and net income. Key financial highlights include continued revenue growth, an increase in both North America and International segment revenues, and a healthy operating margin. The company also actively engaged in share repurchases, returning value to shareholders. Management is focused on leveraging its technology and proprietary networks to drive further growth, while navigating competitive market dynamics and potential macroeconomic uncertainties.

Financial Highlights

49 data points
Beta

Revenue

$2.65B

Net Income

$895.07M

33.8% Net Margin

EPS (Diluted)

$9.94

Total Assets

$12.25B

Cash & Equivalents

$1.27B

Free Cash Flow

$1.09B

Financial Statements
Beta
Revenue$2.65B
Operating Income$1.23B
Net Income$895.07M
EPS (Basic)$10.36
EPS (Diluted)$9.94
Shares Outstanding (Basic)86.40M
Shares Outstanding (Diluted)90.07M

Key Highlights

  • 1CORPAY, Inc. (CPAY) operates as a leading global business payment solutions company with a diversified portfolio of products and services.
  • 2The company reported increased revenues in both its North America and International segments, with overall revenue growth of 8.8% in 2019 compared to 2018.
  • 3Fuel payment solutions remain the largest revenue driver, accounting for approximately 44% of total revenue in 2019.
  • 4CORPAY actively engaged in share repurchases throughout 2019, demonstrating a commitment to returning value to shareholders.
  • 5The company made several strategic acquisitions in 2019, including NvoicePay, r2c, SOLE Financial, and Travelliance, to expand its service offerings and market reach.
  • 6Operating income saw a significant increase of 12.9% year-over-year, reaching $1,231.4 million in 2019, with operating margins improving across both segments.
  • 7Despite some unfavorable foreign currency impacts, the company's financial performance remained strong, with net income increasing by 10.3% to $895.1 million in 2019.

Frequently Asked Questions

CORPAY's primary revenue streams in 2019 were diversified across several payment solution categories. Fuel payment solutions represented the largest portion, accounting for approximately 44% of revenue. Corporate Payments made up about 19%, Tolls contributed 13%, Lodging was 8%, and Gift cards were 7%. The remaining 8% came from other complementary products and services.

CORPAY completed several acquisitions in 2019, including NvoicePay, r2c, SOLE Financial, and Travelliance. These acquisitions contributed approximately $40 million in additional revenue and were integrated into the North America and International segments, enhancing the company's product offerings and market reach.

CORPAY's primary strategy for returning value to shareholders is through its stock repurchase program. In 2019, the company repurchased common stock valued at $603.8 million. Additionally, CORPAY currently expects to retain future earnings for business operations and expansion, and does not anticipate paying cash dividends in the foreseeable future.

CORPAY's operating income grew by 12.9% in 2019, primarily driven by organic growth across its payment solutions. This growth was fueled by increases in both transaction volumes and revenue per transaction in various programs. Strategic acquisitions also contributed to this growth, while a negative impact from macroeconomic factors and unfavorable foreign exchange rates partially offset the gains.