10-KPeriod: FY2020

CORPAY, INC. Annual Report, Year Ended Dec 31, 2020

Filed February 26, 2021For Securities:CPAY

Summary

CorPay, Inc. (CPAY), in its February 26, 2021 10-K filing, reported financial results impacted by the ongoing COVID-19 pandemic, which led to a decrease in revenues from $2.65 billion in 2019 to $2.39 billion in 2020. Despite the revenue decline, the company demonstrated resilience with net income of $704.2 million in 2020, down from $895.1 million in 2019, reflecting strong cost management and operational efficiencies. The company's diverse payment solutions, spanning Corporate Payments and Expense Management (including Fuel, Tolls, Lodging, and Gift cards), provide a robust business model with recurring revenue streams. CorPay continues to focus on optimizing its asset base, leveraging its multi-channel sales approach, and pursuing strategic acquisitions to strengthen market positions and drive future growth. The filing highlights the company's strong liquidity position and commitment to returning capital to shareholders through its stock repurchase program.

Financial Highlights

49 data points
Beta

Revenue

$2.39B

Net Income

$704.22M

29.5% Net Margin

EPS (Diluted)

$8.12

Total Assets

$11.19B

Cash & Equivalents

$934.90M

Free Cash Flow

$1.39B

Financial Statements
Beta
Revenue$2.39B
Operating Income$972.26M
Net Income$704.22M
EPS (Basic)$8.38
EPS (Diluted)$8.12
Shares Outstanding (Basic)84.00M
Shares Outstanding (Diluted)86.72M

Key Highlights

  • 1CorPay's revenue for 2020 decreased by 9.8% to $2.39 billion from $2.65 billion in 2019, largely attributed to the impact of the COVID-19 pandemic on business activity.
  • 2Net income for 2020 was $704.2 million, a decrease from $895.1 million in 2019, with diluted earnings per share at $8.12 in 2020 compared to $9.94 in 2019.
  • 3The company maintained a strong operating margin of 40.7% in 2020, demonstrating effective cost control despite revenue pressures.
  • 4CorPay's diverse business segments, including North America, Brazil, and International, and its solution categories like Fuel, Corporate Payments, and Tolls, show geographic and product diversification.
  • 5The company reported approximately $941 million in available liquidity under its credit facility and $935 million in unrestricted cash as of December 31, 2020, indicating a solid financial position.
  • 6CorPay continued its share repurchase program, repurchasing $940.8 million of common stock in 2020, underscoring its commitment to shareholder returns.

Frequently Asked Questions

CorPay's financial performance in 2020 was significantly impacted by COVID-19, leading to a decrease in consolidated revenues by 9.8% to $2.39 billion from $2.65 billion in 2019. This was primarily due to reduced business activity and transaction volumes across various industries.

CorPay's growth strategy involves optimizing its assets, leveraging similar selling methods across its diverse payment solutions, and bundling and cross-selling value-added services. The company also actively pursues strategic acquisitions to enhance its market position and expand its service offerings.

CorPay does not currently anticipate paying cash dividends. Instead, it focuses on returning capital to shareholders through its stock repurchase program, which had approximately $1.0 billion remaining authorization at the end of 2020, allowing for repurchases funded by cash flow, working capital, and debt.

CorPay has a diversified revenue base across multiple solution categories including Fuel, Corporate Payments, Tolls, Lodging, and Gift cards. Geographically, its operations are primarily in North America (61% of revenue), Brazil (14%), and the United Kingdom (11%), with other international operations making up the remainder.