01—Abstract
Summary
Summary of the 10-Q filed May 9, 2024. Cited figures are marked; the original filing is the authoritative source.
Corpay, Inc. (formerly FLEETCOR Technologies, Inc.) reported solid revenue growth of 3.8% year-over-year for the first quarter of 2024, reaching $935.3 milliona.
This growth was primarily driven by organic increases in transaction and spend volumes, alongside contributions from recent acquisitions, though partially offset by the divestiture of its Russia business. Net income attributable to Corpay increased by 7.0% to $229.8 millionb, leading to diluted earnings per share of $3.12, up from $2.88 in the prior year period. The company's financial performance demonstrates continued operational strength in its core payment solutions business.
The company's balance sheet remains robust, with total assets growing to $15.8 billionc. Key liability areas show increases in accounts payable and customer deposits, while debt levels remain significant.
Corpay also continues to execute its capital allocation strategy, evidenced by substantial share repurchases, underscoring management's confidence in the company's financial health and future prospects. The company also highlighted the completion of its name change and rebranding to Corpay, Inc. effective March 25, 2024.
02—Key points
Key Highlights
- Revenue increased by 3.8% to $935.3 million for the three months ended March 31, 2024.
- Net income attributable to Corpay rose by 7.0% to $229.8 million.
- Diluted EPS increased to $3.12 from $2.88 in the prior year period.
- The Company completed its corporate name change from FLEETCOR Technologies, Inc. to Corpay, Inc. on March 25, 2024.
- Acquisition of 70% of Zapay, a Brazil-based digital consumer mobility solution, for approximately $56.3 million in March 2024.
- Consolidated operating income increased by 5.9% to $397.3 million.
- Interest expense, net increased by $9.3 million primarily due to rising interest rates.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed May 9, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $935.25M$901.33M | +3.8% |
| Operating Income | $397.34M$375.19M | +5.9% |
| Net Income | $229.80M$214.84M | +7.0% |
| EPS (Basic) | $3.20$2.92 | +9.6% |
| EPS (Diluted) | $3.12$2.88 | +8.3% |
| Shares Outstanding (Basic) | 71.77M73.52M | −2.4% |
| Shares Outstanding (Diluted) | 73.55M74.48M | −1.3% |
05—Questions
Frequently Asked Questions
What was the primary driver of Corpay's revenue growth in the first quarter of 2024?
Corpay's revenue growth of 3.8% was primarily driven by organic growth of 6%, stemming from increases in spend and transaction volumes, along with the implementation of new sales and business initiatives. Acquisitions also contributed to the revenue increase, partially offset by the divestiture of the Russia business.
How did the recent acquisition of Zapay impact the financial statements?
In March 2024, Corpay acquired 70% of Zapay for approximately $56.3 million. Zapay's results have been included in the Vehicle Payments segment from the acquisition date. The acquisition contributed $77.8 million to goodwill and $18.6 million to intangibles on a preliminary basis.
What is the company's current liquidity position and outlook?
Corpay believes its current cash and borrowing capacity under its Credit Facility and Securitization Facility, along with expected cash flows from operations, are sufficient for at least the next 12 months and into the foreseeable future. As of March 31, 2024, the company had approximately $2.8 billion in total liquidity, including $1.3 billion in unrestricted cash and $1.5 billion available under its Credit Facility.
06—Continue