FLEETCOR Reports Second Quarter 2023 Financial Results
Atlanta, GA, August 8, 2023 — FLEETCOR Technologies, Inc. (NYSE: FLT), a leading global business payments company, today reported financial results for its second quarter ended June 30, 2023.
“Our second quarter results were solid with 10% revenue growth, 20% sales growth and 11% EBITDA growth,” said Ron Clarke, chairman and chief executive officer, FLEETCOR Technologies, Inc. “We are raising our 2023 guidance to reflect our second quarter beat. We are progressing with our strategic review and a range of options are on the table.”
Financial Results for Second Quarter of 2023:
GAAP Results
•Revenues increased 10% to $948.2 million in the second quarter of 2023, compared to $861.3 million in the second quarter of 2022.
•Net income decreased 9% to $239.7 million in the second quarter of 2023, compared to $262.2 million in the second quarter of 2022, largely due to $65 million in higher interest expense over the second quarter of 2022.
•Net income per diluted share decreased 5% to $3.20 in the second quarter of 2023, compared to $3.35 per diluted share in the second quarter of 2022, largely due to higher interest expense.
Non-GAAP Results1
•EBITDA1 increased 11% to $497.1 million in the second quarter of 2023, compared to $448.9 million in the second quarter of 2022.
•Adjusted net income1 decreased 4% to $314.3 million in the second quarter of 2023, compared to $326.1 million in the second quarter of 2022, largely due to lower fuel prices and higher net interest expense.
•Adjusted net income per diluted share1 increased 1% to $4.19 in the second quarter of 2023, compared to $4.17 per diluted share in the second quarter of 2022.
“Our second quarter results came in ahead of the expectations we provided in May, for both revenue and adjusted net income per share,” said Tom Panther, chief financial officer, FLEETCOR Technologies, Inc.
Updated Fiscal Year 2023 Outlook:
“The outlook for the second half of the year remains in-line with our expectations as we expect the fundamental trends from the first half of the year to continue. We expect solid growth in the second half of 2023 as we lap the interest and credit overhangs from last year and our organic revenue growth continues,” concluded Panther.
For fiscal year 2023, FLEETCOR Technologies, Inc.'s updated financial guidance1 is as follows:
•Total revenues between $3,836 million and $3,860 million;
•Net income between $1,006 million and $1,028 million;
•Net income per diluted share between $13.42 and $13.68;
•Adjusted net income between $1,281 million and $1,303 million; and
•Adjusted net income per diluted share between $17.09 and $17.35.
FLEETCOR’s guidance assumptions are as follows:
For the balance of the year:
•Weighted average U.S. fuel prices of $3.66 per gallon;
•Market fuel spreads to decline compared to the second half of 2022 average; and
•Foreign exchange rates equal to the monthly average for July 2023.
For the full year:
•Interest expense between $330 million and $340 million;
•Approximately 75 million fully diluted shares outstanding;
•A tax rate of 26% to 27%; and
•No impact related to acquisitions and dispositions not already closed.
1Reconciliations of GAAP results to non-GAAP results are provided in Exhibit 1 and 6 attached. Additional supplemental data is provided in Exhibits 2-5. A reconciliation of GAAP guidance to non-GAAP guidance is provided in Exhibit 7.
Third Quarter of 2023 Outlook:
The Company currently expects third quarter revenues between $980 million and $1 billion, and adjusted net income per diluted share between $4.44 and $4.64.
Interest Rate Swaps:
In August 2023, the Company entered into $2.0 billion of interest rate swaps, with an average term of three and a half years and average fixed rate of 4.30%, to reduce the variability of interest payments on our floating rate debt. The combination of these swaps, along with existing swaps, helps to manage interest rate risk on approximately 60% of floating rate debt in our Credit Facility.
Conference Call:
The Company will host a conference call to discuss second quarter 2023 financial results today at 5:00 pm ET. Hosting the call will be Ron Clarke, chief executive officer, Tom Panther, chief financial officer and Jim Eglseder, investor relations. The conference call can be accessed live via webcast from the Company's investor relations website at http://investor.fleetcor.com. A replay will be available one hour after the call and can be accessed by dialing (844) 512-2921 or (412) 317-6671 for international callers; the conference ID is 34263350. The replay will be available until August 15, 2023. Prior to the conference call, the Company will post supplemental financial information that will be discussed during the call and live webcast.
Forward-Looking Statements:
This press release contains forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about FLEETCOR’s beliefs, assumptions, expectations and future performance, are forward-looking statements. Forward-looking statements can be identified by the use of words such as “anticipate,” “intend,” “believe,” “estimate,” “plan,” “seek,” “project” or “expect,” “may,” “will,” “would,” “could” or “should,” the negative of these terms or other comparable terminology.
These forward-looking statements are not a guarantee of performance, and you should not place undue reliance on such statements. We have based these forward-looking statements largely on preliminary information, internal estimates and management assumptions, expectations and plans about future conditions, events and results. Forward-looking statements are subject to many uncertainties and other variable circumstances, such as our ability to successfully execute our strategic plan and portfolio review; adverse changes in program fees or charges we may collect, whether through legal, regulatory or contractual changes; adverse outcomes with respect to current and future legal proceedings or investigations, including without limitation, the FTC lawsuit, or actions of governmental, regulatory or quasi-governmental bodies or standards or industry organizations with respect to our payment cards; delays or failures associated with implication of, or adaption to, new technology, changes in credit risk of customers and associated losses; failure to maintain or renew key business relationships; failure to maintain competitive product offerings; failure to complete, or delays in completing, acquisitions, new partnerships or customer arrangements; and to successfully integrate or otherwise achieve anticipated benefits from such acquisitions, partnerships, and customer arrangements; failure to successfully expand and manage our business internationally; and other risks related to our international operations, including the impact of the conflict between Russia and Ukraine on our business and operations, the potential impact to our business as a result of the United Kingdom’s referendum to leave the European Union; the impact of foreign exchange rates on operations, revenues and income; and the failure or compromise of our data centers and other information technology assets; as well as the other risks and uncertainties identified under the caption "Risk Factors" in FLEETCOR's Annual Report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (“SEC”) on February 28, 2023 and subsequent filings with the SEC made by us. These factors could cause our actual results and experience to differ materially from any forward-looking statement made herein. The forward-looking statements included in this press release are made only as of the date hereof and we do not undertake, and specifically disclaim, any obligation to update any such statements as a result of new information, future events or developments, except as specifically stated or to the extent required by law. You may access FLEETCOR’s SEC filings for free by visiting the SEC web site at www.sec.gov.
About Non-GAAP Financial Measures:
This press release includes non-GAAP financial measures, which are used by the Company as supplemental measures to evaluate its overall operating performance. The Company’s definitions of the non-GAAP financial measures used herein may differ from similarly titled measures used by others, including within our industry. By providing these non-GAAP financial measures, together with reconciliations to the most directly comparable GAAP financial measures, we believe we are enhancing investors’ understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing strategic initiatives. See the appendix for additional information regarding these non-GAAP financial measures and a reconciliation to the most directly comparable GAAP measure.
Adjusted net income is calculated as net income, adjusted to eliminate (a) non-cash share based compensation expense related to share based compensation awards, (b) amortization of deferred financing costs, discounts, intangible assets, and amortization of the premium recognized on the purchase of receivables, (c) integration and deal related costs, and (d) other non-recurring items, including unusual credit losses, the impact of discrete tax items, impairment charges, asset write-offs, restructuring costs, gains due to disposition of assets/businesses, loss on extinguishment of debt, and legal settlements and related legal fees. We adjust net income for the tax effect of
adjustments using our effective income tax rate, exclusive of discrete tax items. We calculate adjusted net income and adjusted net income per diluted share to eliminate the effect of items that we do not consider indicative of our core operating performance.
Adjusted net income and adjusted net income per diluted share are supplemental measures of operating performance that do not represent and should not be considered as an alternative to net income, net income per diluted share or cash flow from operations, as determined by U.S. generally accepted accounting principles, or U.S. GAAP. We believe it is useful to exclude non-cash share based compensation expense from adjusted net income because non-cash equity grants made at a certain price and point in time do not necessarily reflect how our business is performing at any particular time and share based compensation expense is not a key measure of our core operating performance. We also believe that amortization expense can vary substantially from company to company and from period to period depending upon their financing and accounting methods, the fair value and average expected life of their acquired intangible assets, their capital structures and the method by which their assets were acquired; therefore, we have excluded amortization expense from our adjusted net income. Integration and deal related costs represent business acquisition transaction costs, professional services fees, short-term retention bonuses and system migration costs, etc., that are not indicative of the performance of the underlying business. We also believe that certain expenses, discrete tax items, recoveries (e.g. legal settlements, write-off of customer receivable, etc.), gains and losses on investments, and impairment charges do not necessarily reflect how our investments and business are performing. We adjust net income for the tax effect of each of these adjustments items using the effective tax rate during the period, exclusive of discrete tax items.
Organic revenue growth is calculated as revenue growth in the current period adjusted for the impact of changes in the macroeconomic environment (to include fuel price, fuel price spreads and changes in foreign exchange rates) over revenue in the comparable prior period adjusted to include or remove the impact of acquisitions and/or divestitures and non-recurring items that have occurred subsequent to that period. We believe that organic revenue growth on a macro-neutral, one-time item, and consistent acquisition/divestiture/non-recurring item basis is useful to investors for understanding the performance of FLEETCOR.
EBITDA is defined as earnings before interest, income taxes, interest expense, net, other expense (income), depreciation and amortization, loss on extinguishment of debt, investment loss/gain and other operating, net.
Management uses adjusted net income, adjusted net income per diluted share, organic revenue growth and EBITDA:
•as measurements of operating performance because they assist us in comparing our operating performance on a consistent basis;
•for planning purposes, including the preparation of our internal annual operating budget;
•to allocate resources to enhance the financial performance of our business; and
•to evaluate the performance and effectiveness of our operational strategies.
About FLEETCOR®
FLEETCOR Technologies (NYSE: FLT) is a leading global business payments company that helps businesses spend less by providing innovative solutions that enable and control expense-related purchasing and payment processes. The FLEETCOR portfolio of brands automate, secure, digitize and manage payment transactions on behalf of businesses across more than 150 countries in North America, Latin America, Europe, and Asia Pacific. For more information, please visit www.FLEETCOR.com.
Contact:
Investor Relations
Jim Eglseder, 770-417-4697
Jim.Eglseder@fleetcor.com
FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Income
(In thousands, except per share amounts)
Three Months Ended June 30,
Six Months Ended June 30,
2023
2022
% Change
2023
2022
% Change
Revenues, net
$
948,174
$
861,278
10
%
$
1,849,507
$
1,650,519
12
%
Expenses:
Processing
205,265
185,588
11
%
410,232
359,782
14
%
Selling
86,412
79,324
9
%
168,004
156,213
8
%
General and administrative
159,356
147,446
8
%
314,040
290,968
8
%
Depreciation and amortization
83,676
78,474
7
%
167,908
155,276
8
%
Other operating, net
815
(34)
NM
1,478
79
NM
Total operating expense
535,524
490,798
9
%
1,061,662
962,318
10
%
Operating income
412,650
370,480
11
%
787,845
688,201
14
%
Other expenses:
Investment loss (gain)
18
193
NM
(172)
345
NM
Other (income) expense, net
(2,424)
3,564
NM
(1,678)
4,433
NM
Interest expense, net
88,486
23,070
284
%
168,281
45,100
273
%
Total other expense
86,080
26,827
221
%
166,431
49,878
234
%
Income before income taxes
326,570
343,653
(5)
%
621,414
638,323
(3)
%
Provision for income taxes
86,868
81,482
7
%
166,877
158,200
5
%
Net income
$
239,702
$
262,171
(9)
%
$
454,537
$
480,123
(5)
%
Basic earnings per share
$
3.24
$
3.42
(5)
%
$
6.17
$
6.22
(1)
%
Diluted earnings per share
$
3.20
$
3.35
(5)
%
$
6.08
$
6.10
—
%
Weighted average shares outstanding:
Basic shares
73,887
76,769
73,705
77,250
Diluted shares
75,001
78,239
74,763
78,762
NM- Not Meaningful
FLEETCOR Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(In thousands)
June 30, 2023
December 31, 2022
(Unaudited)
Assets
Current assets:
Cash and cash equivalents
$
1,254,243
$
1,435,163
Restricted cash
1,456,992
854,017
Accounts and other receivables (less allowance)
2,460,650
2,064,745
Securitized accounts receivable — restricted for securitization investors
1,248,000
1,287,000
Prepaid expenses and other current assets
503,684
465,227
Total current assets
6,923,569
6,106,152
Property and equipment, net
329,146
294,692
Goodwill
5,473,603
5,201,435
Other intangibles, net
2,107,081
2,130,974
Investments
69,721
74,281
Other assets
275,533
281,726
Total assets
$
15,178,653
$
14,089,260
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable
$
1,679,702
$
1,568,942
Accrued expenses
392,652
351,936
Customer deposits
2,013,236
1,505,004
Securitization facility
1,248,000
1,287,000
Current portion of notes payable and lines of credit
823,231
1,027,056
Other current liabilities
279,069
303,517
Total current liabilities
6,435,890
6,043,455
Notes payable and other obligations, less current portion
4,678,258
4,722,838
Deferred income taxes
538,832
527,465
Other noncurrent liabilities
262,237
254,009
Total noncurrent liabilities
5,479,327
5,504,312
Commitments and contingencies
Stockholders’ equity:
Common stock
128
128
Additional paid-in capital
3,176,562
3,049,570
Retained earnings
7,665,306
7,210,769
Accumulated other comprehensive loss
(1,357,263)
(1,509,650)
Treasury stock
(6,221,297)
(6,209,324)
Total stockholders’ equity
3,263,436
2,541,493
Total liabilities and stockholders’ equity
$
15,178,653
$
14,089,260
FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Cash Flows
(In thousands)
Six Months Ended June 30,
2023
2022
Operating activities
Net income
$
454,537
$
480,123
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation
53,739
43,783
Stock-based compensation
60,844
66,648
Provision for credit losses on accounts and other receivables
74,418
52,704
Amortization of deferred financing costs and discounts
3,574
4,131
Amortization of intangible assets and premium on receivables
114,169
111,493
Loss on extinguishment of debt
—
1,934
Deferred income taxes
(11,799)
(10,864)
Investment gain
(172)
345
Other
1,478
80
Changes in operating assets and liabilities (net of acquisitions):
Accounts and other receivables
(365,572)
(1,225,705)
Prepaid expenses and other current assets
78,035
(13,088)
Derivative assets and liabilities, net
(14,611)
20,576
Other assets
29,397
(1,283)
Accounts payable, accrued expenses and customer deposits
348,643
510,976
Net cash provided by operating activities
826,680
41,853
Investing activities
Acquisitions, net of cash acquired
(126,694)
(33,744)
Purchases of property and equipment
(78,922)
(66,629)
Other
4,401
—
Net cash used in investing activities
(201,215)
(100,373)
Financing activities
Proceeds from issuance of common stock
66,148
18,837
Repurchase of common stock
(11,973)
(795,302)
Borrowings on securitization facility, net
(39,000)
482,000
Deferred financing costs paid and debt discount
—
(337)
Proceeds from issuance of notes payable
—
3,000,000
Principal payments on notes payable
(47,000)
(2,777,000)
Borrowings from revolver
4,351,000
1,550,000
Payments on revolver
(4,817,000)
(1,356,000)
Borrowings on swing line of credit, net
255,750
194
Other
264
—
Net cash (used in) provided by financing activities
(241,811)
122,392
Effect of foreign currency exchange rates on cash
38,401
41,866
Net increase in cash and cash equivalents and restricted cash
422,055
105,738
Cash and cash equivalents and restricted cash, beginning of period
2,289,180
2,250,695
Cash and cash equivalents and restricted cash, end of period
$
2,711,235
$
2,356,433
Supplemental cash flow information
Cash paid for interest, net
$
215,850
$
73,323
Cash paid for income taxes, net
$
238,769
$
215,653
Exhibit 1
RECONCILIATION OF NON-GAAP MEASURES
(In thousands, except shares and per share amounts)
(Unaudited)
The following table reconciles net income to adjusted net income and adjusted net income per diluted share:*
Three Months Ended June 30,
Six Months Ended June 30,
2023
2022
2023
2022
Net income
$
239,702
$
262,171
$
454,537
$
480,123
Stock based compensation
34,748
34,017
60,844
66,648
Amortization1
57,704
57,994
117,743
115,624
Integration and deal related costs
9,580
2,957
15,465
9,210
Legal settlements/litigation
140
1,467
484
1,902
Restructuring, related and other2 costs
(595)
763
703
763
Loss on extinguishment of debt
—
1,934
—
1,934
Total pre-tax adjustments
101,577
99,132
195,239
196,081
Income taxes
(27,020)
(35,164)
(52,436)
(60,405)
Adjusted net income
$
314,259
$
326,139
$
597,340
$
615,799
Adjusted net income per diluted share
$
4.19
$
4.17
$
7.99
$
7.82
Diluted shares
75,001
78,239
74,763
78,762
1 Includes amortization related to intangible assets, premium on receivables, deferred financing costs and debt discounts.
2 Includes impact of foreign currency transactions; prior amounts were not material ($1.8 million) for recast.
*Columns may not calculate due to rounding.
Exhibit 2
Key Performance Indicators, by Segment and Revenue Per Performance Metric on a GAAP Basis and Pro Forma and Macro Adjusted
(In millions except revenues, net per key performance metric)
(Unaudited)
The following table presents revenue and revenue per key performance metric by segment*
As Reported
Pro Forma and Macro Adjusted2
Three Months Ended June 30,
Three Months Ended June 30,
2023
2022
Change
% Change
2023
2022
Change
% Change
FLEET
'- Revenues, net
$382.6
$377.4
$5.2
1
%
$399.9
$378.9
$21.0
6
%
'- Transactions
124.0
122.5
1.5
1
%
124.0
122.9
1.0
1
%
'- Revenues, net per transaction
$3.09
$3.08
$0.01
—
%
$3.23
$3.08
$0.14
5
%
CORPORATE PAYMENTS
'- Revenues, net
$247.0
$189.7
$57.3
30
%
$249.9
$204.6
$45.3
22
%
'- Spend volume
36,041
28,836
7,205
25
%
36,041
31,251
4,789
15
%
'- Revenues, net per spend $
0.69
%
0.66
%
0.03
%
4
%
0.69
%
0.65
%
0.04
%
6
%
LODGING
'- Revenues, net
$136.6
$116.9
$19.7
17
%
$136.7
$119.5
$17.2
14
%
'- Room nights
9.3
9.5
(0.2)
(2)
%
9.3
9.7
(0.4)
(4)
%
'- Revenues, net per room night
$14.65
$12.30
$2.35
19
%
$14.67
$12.35
$2.32
19
%
BRAZIL
'- Revenues, net
$126.1
$111.8
$14.3
13
%
$128.6
$111.8
$16.8
15
%
'- Tags (average monthly)
6.6
6.1
0.4
7
%
6.6
6.1
0.4
7
%
'- Revenues, net per tag
$19.21
$18.22
$0.99
5
%
$19.59
$18.22
$1.37
8
%
OTHER1
'- Revenues, net
$56.0
$65.5
$(9.5)
(15)
%
$56.2
$65.5
$(9.3)
(14)
%
'- Transactions
269.8
287.5
(17.7)
(6)
%
269.8
287.5
(17.7)
(6)
%
'- Revenues, net per transaction
$0.21
$0.23
$(0.02)
(9)
%
$0.21
$0.23
$(0.02)
(8)
%
FLEETCOR CONSOLIDATED REVENUES
'- Revenues, net
$948.2
$861.3
$86.9
10
%
$971.3
$880.3
$91.0
10
%
1 Other includes Gift and Payroll Card operating segments.
2 See Exhibit 5 for a reconciliation of Pro forma and Macro Adjusted revenue by solution and metrics, non-GAAP measures, to the GAAP equivalent.
*Columns may not calculate due to rounding.
Exhibit 3
Revenues by Geography and Segment
(In millions)
(Unaudited)
Revenues, net by Geography*
Three Months Ended June 30,
Six Months Ended June 30,
2023
%
2022
%
2023
%
2022
%
US
$
535
56
%
$
528
61
%
$
1,048
57
%
$
999
61
%
Brazil
126
13
%
112
13
%
248
13
%
214
13
%
UK
111
12
%
93
11
%
219
12
%
188
11
%
Other
176
19
%
128
15
%
334
18
%
249
15
%
Consolidated Revenues, net
$
948
100
%
$
861
100
%
$
1,850
100
%
$
1,651
100
%
*Columns may not calculate due to rounding.
Revenues, net by Segment*
Three Months Ended June 30,
Six Months Ended June 30,
2023
%
2022
%
2023
%
2022
%
Fleet
$
383
40
%
$
377
44
%
$
755
41
%
$
729
44
%
Corporate Payments
247
26
%
190
22
%
474
26
%
373
23
%
Lodging
137
14
%
117
14
%
259
14
%
211
13
%
Brazil
126
13
%
112
13
%
248
13
%
214
13
%
Other
56
6
%
65
8
%
113
6
%
122
7
%
Consolidated Revenues, net
$
948
100
%
$
861
100
%
$
1,850
195
%
$
1,651
100
%
*Columns may not calculate due to rounding. Segment and solutions reporting have
converged to be the same.
Exhibit 4
Segment Results*
(In thousands)
(Unaudited)
Three Months Ended June 30,
Six Months Ended June 30,
20231
2022
% Change
20231
2022
% Change
Revenues, net:
Fleet
$
382,609
$
377,361
1
%
$
755,321
$
728,954
4
%
Corporate Payments
246,952
189,699
30
%
474,158
373,467
27
%
Lodging
136,564
116,900
17
%
258,898
211,476
22
%
Brazil
126,081
111,825
13
%
247,825
214,362
16
%
Other1
55,968
65,493
(15)
%
113,305
122,260
(7)
%
$
948,174
$
861,278
10
%
$
1,849,507
$
1,650,519
12
%
Operating income:
Fleet
$
183,657
$
186,790
(2)
%
$
357,189
$
354,635
1
%
Corporate Payments
91,755
65,859
39
%
167,268
124,066
35
%
Lodging
68,246
58,559
17
%
122,809
98,339
25
%
Brazil
52,802
41,617
27
%
107,619
78,945
36
%
Other1
16,190
17,655
(8)
%
32,960
32,216
2
%
$
412,650
$
370,480
11
%
$
787,845
$
688,201
14
%
Depreciation and amortization:
Fleet
$
35,906
$
34,927
3
%
$
70,992
$
69,634
2
%
Corporate Payments
18,277
16,724
9
%
39,148
33,072
18
%
Lodging
11,661
10,321
13
%
23,059
20,855
11
%
Brazil
15,522
14,288
9
%
30,075
27,409
10
%
Other1
2,310
2,214
4
%
4,634
4,306
8
%
$
83,676
$
78,474
7
%
$
167,908
$
155,276
8
%
Capital expenditures:
Fleet
$
20,734
$
18,447
12
%
$
37,865
$
34,237
11
%
Corporate Payments
7,471
5,158
45
%
15,266
9,646
58
%
Lodging
3,496
2,067
69
%
6,873
3,759
83
%
Brazil
8,642
7,620
13
%
15,530
13,598
14
%
Other1
1,842
1,950
(6)
%
3,388
5,389
(37)
%
$
42,185
$
35,242
20
%
$
78,922
$
66,629
18
%
1Other includes Gift and Payroll Card operating segments.
*Columns may not calculate due to rounding.
Exhibit 5
Reconciliation of Non-GAAP Revenue and Key Performance Metric by Segment to GAAP
(In millions)
(Unaudited)
Revenues, net
Key Performance Metric
Three Months Ended June 30,
Three Months Ended June 30,
2023*
2022*
2023*
2022*
FLEET - TRANSACTIONS
Pro forma and macro adjusted
$
399.9
$
378.9
124.0
122.9
Impact of acquisitions/dispositions
—
(1.5)
—
(0.5)
Impact of fuel prices/spread
(12.5)
—
—
—
Impact of foreign exchange rates
(4.8)
—
—
—
As reported
$
382.6
$
377.4
124.0
122.5
CORPORATE PAYMENTS - SPEND
Pro forma and macro adjusted
$
249.9
$
204.6
$
36,041
$
31,251
Impact of acquisitions/dispositions
—
(14.9)
—
(2,416)
Impact of fuel prices/spread
(0.4)
—
—
—
Impact of foreign exchange rates
(2.5)
—
—
—
As reported
$
247.0
$
189.7
$
36,041
$
28,836
LODGING - ROOM NIGHTS
Pro forma and macro adjusted
$
136.7
$
119.5
9.3
9.7
Impact of acquisitions/dispositions
—
(2.6)
—
(0.2)
Impact of fuel prices/spread
—
—
—
—
Impact of foreign exchange rates
(0.1)
—
—
—
As reported
$
136.6
$
116.9
9.3
9.5
BRAZIL - TAGS
Pro forma and macro adjusted
$
128.6
$
111.8
6.6
6.1
Impact of acquisitions/dispositions
—
—
—
—
Impact of fuel prices/spread
(1.4)
—
—
—
Impact of foreign exchange rates
(1.1)
—
—
—
As reported
$
126.1
$
111.8
6.6
6.1
OTHER1 - TRANSACTIONS
Pro forma and macro adjusted
$
56.2
$
65.5
269.8
287.5
Impact of acquisitions/dispositions
—
—
—
—
Impact of fuel prices/spread
—
—
—
—
Impact of foreign exchange rates
(0.3)
—
—
—
As reported
$
56.0
$
65.5
269.8
287.5
FLEETCOR CONSOLIDATED REVENUES
Pro forma and macro adjusted
$
971.3
$
880.3
Intentionally Left Blank
Impact of acquisitions/dispositions
—
(19.1)
Impact of fuel prices/spread2
(14.4)
—
Impact of foreign exchange rates2
(8.8)
—
As reported
$
948.2
$
861.3
* Columns may not calculate due to rounding.
1Other includes Gift and Payroll Card operating segments.
2 Revenues reflect an estimated $20 million negative impact from fuel prices as well as approximately $9 million negative impact of movements in foreign exchange rates, partially offset by the positive impact of fuel price spreads of approximately $6 million.
Exhibit 6
RECONCILIATION OF NON-GAAP EBITDA MEASURES
(In millions)
(Unaudited)
The following table reconciles EBITDA and EBITDA margin to net income.*
Three Months Ended June 30,
Six Months Ended June 30,
2023
2022
2023
2022
Net income
$
239.7
$
262.2
$
454.5
$
480.1
Provision for income taxes
86.9
81.5
166.9
158.2
Interest expense, net
88.5
23.1
168.3
45.1
Other (income) expense
(2.4)
3.6
(1.7)
4.4
Investment loss (income)
—
0.2
(0.2)
0.3
Depreciation and amortization
83.7
78.5
167.9
155.3
Other operating, net
0.8
—
1.5
0.1
EBITDA
$
497.1
$
448.9
$
957.2
$
843.6
Revenues, net
$
948.2
$
861.3
$
1,849.5
$
1,650.5
EBITDA margin
52.4
%
52.1
%
51.8
%
51.1
%
* Columns may not calculate due to rounding.
Exhibit 7
RECONCILIATION OF NON-GAAP GUIDANCE MEASURES
(In millions, except per share amounts)
(Unaudited)
The following table reconciles the third quarter 2023 and full year 2023 financial guidance for net income to adjusted net income and adjusted net income per diluted share, at both ends of the range.
Q3 2023 GUIDANCE
Low*
High*
Net income
$
266
$
282
Net income per diluted share
$
3.54
$
3.74
Stock based compensation
30
30
Amortization
58
58
Other
4
4
Total pre-tax adjustments
92
92
Income taxes
25
25
Adjusted net income
$
333
$
349
Adjusted net income per diluted share
$
4.44
$
4.64
Diluted shares
75
75
2023 GUIDANCE
Low*
High*
Net income
$
1,006
$
1,028
Net income per diluted share
$
13.42
$
13.68
Stock based compensation
120
120
Amortization
233
233
Other
24
24
Total pre-tax adjustments
377
377
Income taxes
101
101
Adjusted net income
$
1,281
$
1,303
Adjusted net income per diluted share
$
17.09
$
17.35
Diluted shares
75
75
*Includes the results of our Russian business. Assuming August 2023 sale of our Russian business, we expect revenues to be $45 million to $55 million lower, resulting in a $0.25 to $0.35 decline in adjusted net income per diluted share, based on using the sales proceeds for share buybacks over the remainder of the year. Columns may not calculate due to rounding.