10-QPeriod: Q1 FY2022

CORPAY, INC. Quarterly Report for Q1 Ended Mar 31, 2022

Filed May 9, 2022For Securities:CPAY

Summary

CORPAY, INC. (CPAY) reported a strong first quarter for 2022, demonstrating robust revenue growth driven by increased transaction volumes, successful acquisitions, and favorable macroeconomic conditions. Total revenues increased by 29.7% year-over-year, reaching $789.2 million. The company's operating income also saw a significant rise of 19.5% to $317.7 million, reflecting effective cost management despite increased investments in sales and processing. Key drivers for this performance include strong organic growth across its segments, particularly in North America and Brazil. The company's strategic acquisitions, including ALE Solutions and AFEX in 2021, and Levarti in 2022, continue to contribute positively to its top-line growth. While facing some headwinds from increased processing expenses and higher stock-based compensation, CORPAY's disciplined approach to expense management and its diversified revenue streams position it well for continued expansion. The company also reiterated its confidence in its liquidity and borrowing capacity to meet future needs.

Financial Highlights

48 data points
Beta

Revenue

$789.24M

Net Income

$217.95M

27.6% Net Margin

EPS (Diluted)

$2.75

Total Assets

$14.22B

Cash & Equivalents

$1.30B

Free Cash Flow

-$143.64M

Financial Statements
Beta
Revenue$789.24M
Operating Income$317.72M
Net Income$217.95M
EPS (Basic)$2.80
EPS (Diluted)$2.75
Shares Outstanding (Basic)77.74M
Shares Outstanding (Diluted)79.29M

Key Highlights

  • 1Total revenues grew by 29.7% to $789.2 million for the three months ended March 31, 2022, compared to $608.6 million in the prior year.
  • 2Operating income increased by 19.5% to $317.7 million, with an operating margin of 40.3%, down slightly from 43.7% in the prior year due to increased expenses.
  • 3Net income rose by 18.3% to $218.0 million, with diluted earnings per share of $2.75, up from $2.15 in the prior year.
  • 4North America segment revenues saw a substantial increase of 36.1% to $547.4 million, driven by acquisitions and organic growth.
  • 5The company repurchased $422.7 million of its common stock during the quarter, indicating confidence and a commitment to shareholder returns.
  • 6Gross accounts and securitized accounts receivable increased significantly, reflecting higher business activity and financing through the securitization facility, which was amended to $1.6 billion.
  • 7The company highlighted the impact of geopolitical events, specifically the conflict in Ukraine, and its operations in Russia, which accounted for approximately 2.3% of revenues and 4.8% of net income in Q1 2022.

Frequently Asked Questions

CORPAY reported a strong revenue performance in the first quarter of 2022, with consolidated revenues increasing by 29.7% to $789.2 million, up from $608.6 million in the same period of the prior year. This growth was driven by a combination of increased transaction volumes, the positive impact of recent acquisitions, and favorable macroeconomic conditions, particularly fuel prices.

Profitability remained strong, with operating income increasing by 19.5% to $317.7 million. Net income grew by 18.3% to $218.0 million. Diluted earnings per share were $2.75, an increase from $2.15 in the first quarter of 2021. While operating margins slightly compressed due to increased processing expenses and higher stock-based compensation, the overall financial results demonstrate solid performance.

CORPAY's revenue is primarily generated through three reportable segments: North America, Brazil, and International. The North America segment is the largest, with revenues increasing by 36.1% to $547.4 million in Q1 2022. The Brazil segment showed a 25.2% increase in revenues to $102.5 million, while the International segment grew by 11.9% to $139.3 million.

CORPAY maintains a strong liquidity position, with approximately $2.3 billion in total liquidity at the end of the first quarter of 2022, including unrestricted cash and available borrowing capacity under its credit facilities. The company also continued its share repurchase program, buying back $422.7 million of common stock during the quarter. The Securitization Facility was amended and increased to $1.6 billion, providing continued access to financing for receivables.