10-QPeriod: Q2 FY2021

CORPAY, INC. Quarterly Report for Q2 Ended Jun 30, 2021

Filed August 9, 2021For Securities:CPAY

Summary

FLEETCOR Technologies, Inc. (CPAY) reported strong performance in its second quarter and first half of 2021, demonstrating robust revenue growth driven by increasing transaction volumes as the global economy recovers from the COVID-19 pandemic. Total revenues for the second quarter of 2021 increased by 27.1% to $667.4 million compared to the prior year, and by 7.6% to $1,276.0 million for the first six months. This growth was supported by a significant increase in operating income, which rose by 39.8% and 36.2% for the respective periods, reflecting improved operating margins. The company also saw a substantial increase in net income, up 23.8% for the quarter and 24.5% year-to-date. Strategic acquisitions, including AFEX and Roger (CorpayOne) in 2021, are expected to further contribute to future growth. Despite some macroeconomic headwinds, such as unfavorable fuel price spreads, FLEETCOR's diversified business segments (North America, Brazil, International) and ongoing strategic initiatives position it for continued expansion. The company also highlighted its commitment to shareholder returns through its ongoing stock repurchase program.

Financial Highlights

48 data points
Beta

Revenue

$667.38M

Net Income

$196.25M

29.4% Net Margin

EPS (Diluted)

$2.30

Total Assets

$13.03B

Cash & Equivalents

$1.30B

Free Cash Flow

$252.35M

Financial Statements
Beta
Revenue$667.38M
Operating Income$297.61M
Net Income$196.25M
EPS (Basic)$2.36
EPS (Diluted)$2.30
Shares Outstanding (Basic)83.14M
Shares Outstanding (Diluted)85.30M

Key Highlights

  • 1Total revenues increased by 27.1% to $667.4 million in Q2 2021 and by 7.6% to $1,276.0 million for the first six months of 2021, year-over-year.
  • 2Operating income saw substantial growth, increasing by 39.8% to $297.6 million in Q2 2021 and by 36.2% to $563.6 million for the first six months.
  • 3Net income increased by 23.8% to $196.2 million in Q2 2021 and by 24.5% to $380.5 million for the first six months.
  • 4North America segment revenue grew by 24.1% in Q2 2021, driven by increased transaction volumes and strategic acquisitions.
  • 5International segment revenue showed strong growth of 49.4% in Q2 2021, supported by favorable foreign exchange rates and recovering transaction volumes.
  • 6The company completed two key acquisitions in 2021: AFEX for cross-border payment solutions and Roger (CorpayOne) for accounts payable software.
  • 7FLEETCOR's liquidity remains strong, with approximately $2.5 billion in total liquidity at June 30, 2021, including $1.3 billion in unrestricted cash and $1.2 billion available under its credit facilities.

Frequently Asked Questions

In the second quarter of 2021, FLEETCOR reported consolidated revenues of $667.4 million, an increase of 27.1% compared to $525.1 million in the second quarter of 2020. This growth was primarily attributed to an increase in transaction volumes as the business recovered from the COVID-19 pandemic, along with contributions from recent acquisitions and favorable macroeconomic factors.

Profitability improved significantly. Operating income increased by 39.8% to $297.6 million in Q2 2021 and by 36.2% to $563.6 million for the first six months of 2021. Net income rose by 23.8% to $196.2 million in Q2 2021 and by 24.5% to $380.5 million for the first six months of 2021, compared to the same periods in 2020.

Revenue growth was driven by increasing transaction volumes across all segments as economic activity recovered. The North America segment saw a 24.1% increase in Q2 2021 due to higher transaction volumes and acquisitions. The International segment experienced robust growth of 49.4% in Q2 2021, benefiting from recovering transaction volumes and favorable foreign exchange rates. The Brazil segment also showed growth, albeit at a more moderate pace.

Yes, FLEETCOR completed two significant acquisitions in 2021: Associated Foreign Exchange (AFEX) in June for $418.7 million, expanding its cross-border payment solutions, and Roger (rebranded as CorpayOne) in January for $39.0 million, a global accounts payable cloud software platform for small businesses. The company also announced plans to acquire ALE Solutions, Inc. in July 2021.