10-QPeriod: Q2 FY2019

CORPAY, INC. Quarterly Report for Q2 Ended Jun 30, 2019

Filed August 9, 2019For Securities:CPAY

Summary

CORPAY, INC. (CPAY) reported solid financial performance for the second quarter and the first half of 2019, demonstrating continued revenue growth and profitability. Total revenues increased by 10.6% year-over-year for the quarter and 8.4% for the first half, driven by strong organic growth across its payment programs and contributions from recent acquisitions. The company's operating income also saw healthy increases, reflecting effective cost management and operational efficiencies. Key financial highlights include robust revenue growth in both the North America and International segments, with North America showing particularly strong performance. Profitability metrics, including net income and earnings per diluted share, showed significant improvements compared to the prior year, partly benefiting from a favorable tax provision related to an investment disposition. The company also maintained a strong liquidity position and generated substantial cash flow from operations, supporting its strategic initiatives such as acquisitions and share repurchases.

Financial Highlights

49 data points
Beta

Revenue

$647.09M

Net Income

$261.65M

40.4% Net Margin

EPS (Diluted)

$2.90

Total Assets

$11.98B

Cash & Equivalents

$1.17B

Free Cash Flow

$235.06M

Financial Statements
Beta
Revenue$647.09M
Operating Income$297.32M
Net Income$261.65M
EPS (Basic)$3.03
EPS (Diluted)$2.90
Shares Outstanding (Basic)86.36M
Shares Outstanding (Diluted)90.13M

Key Highlights

  • 1Consolidated revenues increased by 10.6% to $647.1 million for the three months ended June 30, 2019, and by 8.4% to $1,268.9 million for the six months ended June 30, 2019, compared to the prior year periods.
  • 2Net income for the three months ended June 30, 2019, increased by 47.9% to $261.7 million, and for the six months ended June 30, 2019, increased by 23.3% to $433.8 million, compared to the prior year periods.
  • 3Diluted earnings per share (EPS) rose to $2.90 for the quarter and $4.84 for the six months, up from $1.91 and $3.78 respectively, in the prior year periods.
  • 4Acquisitions, including NvoicePay and a small international business, contributed to revenue growth, with NvoicePay adding approximately $7 million in revenue for the quarter.
  • 5The company reported strong operating income growth of 12.3% for the quarter and 10.8% for the six months, with operating margins remaining robust.
  • 6Net cash provided by operating activities was $550.0 million for the first six months of 2019, a significant increase from $275.1 million in the prior year period, demonstrating strong cash generation.
  • 7The company maintained a healthy balance sheet with total assets of $11,975.6 million and total stockholders' equity of $3,843.4 million as of June 30, 2019.

Frequently Asked Questions

Revenue growth was primarily driven by organic growth of approximately 13% on a constant fuel price, fuel spread margin, foreign currency, and acquisition basis. This was complemented by contributions from recent acquisitions.

Profitability significantly improved. Net income for the second quarter of 2019 increased by 47.9% to $261.7 million, and diluted earnings per share increased to $2.90, compared to $1.91 in the prior year period. The six-month period also showed a 23.3% increase in net income and higher EPS.

Yes, the company completed the acquisition of NvoicePay on April 1, 2019, for approximately $219 million, which is expected to expand its corporate payments product offering. Additionally, a small international business was acquired for approximately $32 million. More recently, SOLE Financial was acquired in July 2019.

The company maintained a strong liquidity position as of June 30, 2019, with cash and cash equivalents totaling $1,488.6 million. They also had approximately $478 million available under their Credit Facility, indicating sufficient resources to meet their financial obligations and strategic goals.