10-KPeriod: FY2021

CORPAY, INC. Annual Report, Year Ended Dec 31, 2021

Filed March 1, 2022For Securities:CPAY

Summary

Corpay, Inc. (CPAY) demonstrated robust financial performance in its 2021 fiscal year, as detailed in its Form 10-K filed on March 1, 2022. The company experienced significant revenue growth of 18.6% year-over-year, reaching $2.83 billion, driven by a rebound in transaction volumes post-COVID-19 and the positive impact of acquisitions and favorable macroeconomic conditions. Net income also saw a substantial increase of 19.2% to $839.5 million, translating to diluted earnings per share of $9.99. Corpay's strategy continues to focus on optimizing assets, leveraging cross-selling opportunities, and acquiring complementary businesses. The company's diversified portfolio across expense management and corporate payments solutions, coupled with its global scale and proprietary technology, positions it well for continued growth. Key areas of expansion include acquisitions in the cross-border payments and lodging solutions sectors, demonstrating a commitment to strengthening its market position and delivering enhanced value to its customers. The company also actively engaged in share repurchases, returning significant capital to shareholders.

Financial Statements
Beta
Revenue$2.83B
Operating Income$1.24B
Net Income$839.00M
EPS (Basic)$10.23
EPS (Diluted)$9.99
Shares Outstanding (Basic)82.06M
Shares Outstanding (Diluted)84.06M

Key Highlights

  • 1Corpay reported a 18.6% year-over-year increase in total revenue, reaching $2.83 billion in FY2021.
  • 2Net income grew by 19.2% to $839.5 million, with diluted earnings per share at $9.99 for FY2021.
  • 3The company successfully integrated several key acquisitions in 2021, including ALE Solutions and Associated Foreign Exchange (AFEX), bolstering its lodging and cross-border payment solutions.
  • 4Organic revenue growth was strong at approximately 12%, indicating healthy underlying business performance beyond acquisitions and macroeconomic impacts.
  • 5Corpay continued its significant share repurchase program, reflecting confidence in its financial health and commitment to returning value to shareholders.
  • 6Operating income and operating margin improved, with a consolidated operating margin of 43.8% in 2021, up from 40.7% in 2020, driven by operational efficiencies and favorable revenue drivers.
  • 7The company has a strong liquidity position with approximately $2.6 billion in total liquidity at the end of 2021, comprising cash and available credit facilities.

Frequently Asked Questions

Corpay's revenue growth in 2021 was primarily driven by a rebound in transaction volumes as the business recovered from the COVID-19 pandemic, incremental new sales, the impact of acquisitions completed in 2020 and 2021, and favorable macroeconomic factors such as fuel prices and foreign exchange rates. Organically, revenue growth was approximately 12%.

Corpay maintained a strong liquidity position, with approximately $2.6 billion in total liquidity at the end of 2021, consisting of $1.1 billion in available credit and $1.5 billion in unrestricted cash. The company actively managed its debt, with total debt outstanding at $5.98 billion at year-end 2021. The company also utilized its securitization facility to finance domestic receivables efficiently.

Corpay's strategy focuses on optimizing its existing assets, leveraging similar selling methods, and bundling and cross-selling value-added solutions. The company also actively pursues attractive acquisition opportunities to strengthen its market positions and extend its utility. Key areas of focus include enhancing digital customer experiences and modernizing core transactional systems.

Corpay has three reportable segments: North America, Brazil, and International. These segments are further categorized into two main solution types: Expense Management solutions (including Fuel, Tolls, and Lodging) and Corporate Payments solutions (including AP automation, virtual cards, cross-border, and purchasing/T&E cards).