10-QPeriod: Q3 FY2021

CORPAY, INC. Quarterly Report for Q3 Ended Sep 30, 2021

Filed November 9, 2021For Securities:CPAY

Summary

Corpay, Inc. (CPAY) demonstrated strong financial performance in the third quarter of 2021, with revenues, net increasing by 29.1% year-over-year to $755.5 million, and net income growing by 23.9% to $234.0 million. This growth was driven by a significant rebound in transaction volumes as the business recovered from the COVID-19 pandemic, coupled with positive impacts from recent acquisitions and a favorable macroeconomic environment. The company also reported substantial year-over-year increases in operating income across all segments, particularly North America, reflecting improved operational efficiency and strong customer demand. Looking at the nine-month period, revenues, net grew by 14.7% to $2,031.5 million, with net income rising by 24.3% to $614.5 million. The company's strategic acquisitions, including ALE Solutions and AFEX, are being integrated and are expected to contribute to future growth. Despite increased investments in sales and marketing, the company maintained healthy operating margins, indicating robust underlying business performance. Corpay appears well-positioned for continued growth, supported by its diversified revenue streams and ongoing strategic initiatives.

Financial Highlights

48 data points
Beta

Revenue

$755.48M

Net Income

$234.01M

31.0% Net Margin

EPS (Diluted)

$2.80

Total Assets

$13.45B

Cash & Equivalents

$1.27B

Free Cash Flow

$214.41M

Financial Statements
Beta
Revenue$755.48M
Operating Income$338.69M
Net Income$234.01M
EPS (Basic)$2.86
EPS (Diluted)$2.80
Shares Outstanding (Basic)81.84M
Shares Outstanding (Diluted)83.72M

Key Highlights

  • 1Consolidated revenues increased by 29.1% to $755.5 million for Q3 2021 compared to Q3 2020.
  • 2Net income grew by 23.9% to $234.0 million for Q3 2021 compared to Q3 2020.
  • 3Acquisitions, including ALE Solutions and AFEX, contributed approximately $38 million to Q3 revenues and are integrated into the North America segment.
  • 4Organic revenue growth for consolidated revenues was approximately 17% in Q3 2021.
  • 5North America segment revenues showed strong growth of 35.6% year-over-year, driven by increased transaction volumes and acquisitions.
  • 6The company maintained healthy operating margins, with consolidated operating income up 28.0% to $338.7 million in Q3 2021.
  • 7As of September 30, 2021, Corpay had approximately $1.9 billion in total liquidity, comprising cash and borrowing capacity.

Frequently Asked Questions

Corpay's revenue growth in Q3 2021 was primarily driven by a significant increase in transaction volumes as the business recovered from the effects of the COVID-19 pandemic. This was complemented by the positive impact of recent acquisitions, such as ALE Solutions and AFEX, and a favorable macroeconomic environment, particularly in fuel prices and foreign exchange rates. Organic revenue growth was approximately 17%.

Corpay completed several acquisitions in 2020 and 2021, including ALE Solutions (September 2021), AFEX (June 2021), and Roger (January 2021). These acquisitions contributed approximately $38 million to consolidated revenues in Q3 2021 and $64 million for the nine-month period. The results from these acquisitions are primarily reported within the North America segment and are expected to contribute to future growth.

As of September 30, 2021, Corpay reported approximately $1.9 billion in total liquidity. This includes approximately $650 million available under its Credit Facility and $1.3 billion in unrestricted cash. The company believes its current liquidity and expected future cash flows are sufficient to meet its operational and capital requirements.

Corpay is involved in ongoing legal proceedings, including derivative lawsuits and an FTC investigation. While the company believes these matters are not currently material to its financial performance, it acknowledges that potential resolutions could involve costs, including legal fees, redress, penalties, and remediation expenses. The FTC case is in ongoing litigation, and a resolution has not yet been reached. The company is unable to estimate a reasonably possible loss or range of loss at this time.