10-QPeriod: Q1 FY2013

CORPAY, INC. Quarterly Report for Q1 Ended Mar 31, 2013

Filed May 10, 2013For Securities:CPAY

Summary

FleetCor Technologies, Inc. (CPAY) reported a strong first quarter for 2013, with total revenues increasing by 32.5% year-over-year to $193.7 million. This growth was driven by both organic expansion and the full-quarter impact of acquisitions made in 2012. The company saw a significant rise in operating income, up 46.2% to $94.3 million, leading to a substantial increase in net income of 53.7% to $64.7 million. The International segment demonstrated particularly robust growth, with revenues increasing by 46.9% and operating income surging by 70.0%. This outperformance is attributed to recent acquisitions and organic growth. The company's focus on increasing revenue per transaction, coupled with favorable macroeconomic conditions like higher fuel spread margins, contributed to improved financial results across both segments.

Financial Highlights

48 data points
Beta

Revenue

$193.65M

Net Income

$64.66M

33.4% Net Margin

EPS (Diluted)

$0.77

Total Assets

$2.89B

Cash & Equivalents

$224.61M

Free Cash Flow

-$18.45M

Financial Statements
Beta
Revenue$193.65M
Operating Income$94.25M
Interest Expense$3.45M
Net Income$64.66M
EPS (Basic)$0.80
EPS (Diluted)$0.77
Shares Outstanding (Basic)81.22M
Shares Outstanding (Diluted)83.96M

Key Highlights

  • 1Total revenues increased 32.5% to $193.7 million in Q1 2013 compared to Q1 2012.
  • 2Operating income grew by 46.2% to $94.3 million, with operating margins improving to 48.7% from 44.1%.
  • 3Net income saw a significant increase of 53.7% to $64.7 million, resulting in diluted EPS of $0.77.
  • 4The International segment experienced exceptional growth, with revenue up 46.9% and operating income up 70.0%.
  • 5Acquisitions completed in 2012 are contributing significantly to revenue and earnings growth.
  • 6The company successfully managed its debt, with interest expense slightly decreasing despite increased borrowings.
  • 7FleetCor extended its asset securitization facility to February 3, 2014, enhancing liquidity.

Frequently Asked Questions

Revenue growth was driven by a combination of organic growth in payment programs, evident in both increased transaction volumes and higher revenue per transaction, and the full-quarter impact of acquisitions completed in 2012. Additionally, a positive macroeconomic environment, particularly higher fuel spread margins, contributed to the revenue increase.

The International segment significantly outperformed North America, with revenues growing by 46.9% and operating income surging by 70.0%. This strong performance was largely due to the impact of acquisitions made in 2012 and robust organic growth in the region.

FleetCor maintained a healthy liquidity position with $224.6 million in unrestricted cash and cash equivalents at the end of the quarter. The company also has access to significant borrowing capacity under its Credit Facility and Securitization Facility, totaling approximately $752 million available under the Credit Facility. Management believes these resources are sufficient to meet liquidity needs for at least the next twelve months, barring any major acquisitions.

During the first quarter of 2013, FleetCor completed foreign acquisitions with an aggregate purchase price of $94.8 million. A notable acquisition was the 'Fleet Card' assets from GE Capital Australia's Custom Fleet leasing business, aimed at establishing a presence in the Australian market. These acquisitions are reported in the International segment.