10-QPeriod: Q1 FY2019

CORPAY, INC. Quarterly Report for Q1 Ended Mar 31, 2019

Filed May 10, 2019For Securities:CPAY

Summary

This 10-Q filing for CORPAY, INC. (CPAY) for the quarter ended March 31, 2019, shows solid revenue growth and operational performance. Total revenues increased by 6.2% to $621.8 million, driven by organic growth across its payment programs, particularly in the North America segment which saw a 9.0% revenue increase. Despite a slight dip in net income to $172.1 million from $174.9 million in the prior year period, the company's operating income grew by 9.3% to $284.2 million, with operating margins expanding in both its North America and International segments. The company also highlighted strong cash flow generation, with net cash provided by operating activities increasing significantly to $297.5 million, supporting its liquidity needs and ongoing strategic initiatives. Key financial developments include a non-cash impairment charge of $15.7 million related to a telematics investment, contributing to a higher effective tax rate for the quarter. The company continues to manage its debt effectively, with available borrowing capacity under its Credit Facility and Securitization Facility. Furthermore, CORPAY is actively returning capital to shareholders through its share repurchase program, repurchasing approximately $545 million in shares as of March 31, 2019, demonstrating a commitment to shareholder value while maintaining financial flexibility for future growth opportunities.

Financial Highlights

49 data points
Beta

Revenue

$621.83M

Net Income

$172.11M

27.7% Net Margin

EPS (Diluted)

$1.93

Total Assets

$11.51B

Cash & Equivalents

$1.06B

Free Cash Flow

$282.99M

Financial Statements
Beta
Revenue$621.83M
Operating Income$284.18M
Net Income$172.11M
EPS (Basic)$2.00
EPS (Diluted)$1.93
Shares Outstanding (Basic)85.94M
Shares Outstanding (Diluted)89.24M

Key Highlights

  • 1Total revenues increased by 6.2% year-over-year to $621.8 million, driven by strong organic growth.
  • 2Operating income grew by 9.3% to $284.2 million, with operating margins improving to 45.7% from 44.4%.
  • 3Net income saw a slight decrease to $172.1 million ($1.93 diluted EPS) from $174.9 million ($1.88 diluted EPS) in the prior year period.
  • 4Net cash provided by operating activities increased significantly to $297.5 million, up from $200.7 million in the prior year.
  • 5A non-cash investment impairment charge of $15.7 million was recorded for a telematics investment.
  • 6The company repurchased approximately $545 million of its common stock under its share repurchase program as of March 31, 2019.
  • 7International segment revenue grew 1.7% to $224.9 million, while North America segment revenue increased 9.0% to $396.9 million.

Frequently Asked Questions

The primary driver of CORPAY's revenue growth was organic growth across its payment programs, fueled by increases in both transaction volume and revenue per transaction. This growth was particularly strong in the North America segment.

While operating income increased by 9.3%, net income saw a slight decrease of 1.6% to $172.1 million. This was influenced by factors such as a $15.7 million non-cash investment impairment charge and an increase in interest expense.

CORPAY demonstrated strong operating cash flow generation, with net cash provided by operating activities increasing significantly to $297.5 million. The company maintains substantial cash balances and has ample borrowing capacity under its Credit Facility and Securitization Facility, indicating a healthy liquidity position to meet its obligations and fund strategic initiatives.

As of March 31, 2019, CORPAY had repurchased approximately $545 million of its common stock under its expanded repurchase program, reflecting a commitment to returning capital to shareholders.