Corpay, Inc.(CPAY) - 2023 Q2 - Quarterly Report

Financial Performance - Revenues for Q2 2023 reached $948.2 million, a 10.1$861.3 million in Q2 2022[8] - Net income for Q2 2023 was $239.7 million, compared to$262.2 million in Q2 2022, reflecting a decrease of 8.6%[10] - Basic earnings per share for Q2 2023 were $3.24, down from$3.42 in Q2 2022, representing a decline of 5.3%[8] - Comprehensive income for Q2 2023 was $316.5 million, significantly higher than$111.8 million in Q2 2022, reflecting a substantial increase[10] - Operating income for the first half of 2023 was $787.8 million, up from$688.2 million in the same period of 2022, indicating a growth of 14.5%[8] - Net income for the six months ended June 30, 2023, was $454,537, a decrease from$480,123 in the same period of 2022, representing a decline of approximately 14%[15] Assets and Liabilities - Total stockholders' equity increased to $3.26 billion as of June 30, 2023, up from$2.54 billion at the end of 2022, marking a growth of 28.3%[7] - Total current liabilities rose to $6.44 billion as of June 30, 2023, compared to$6.04 billion at the end of 2022, an increase of 6.6%[6] - Total liabilities and stockholders' equity reached $15.18 billion as of June 30, 2023, compared to$14.09 billion at the end of 2022, an increase of 7.7%[7] - The company’s retained earnings increased to $7.67 billion as of June 30, 2023, up from$7.21 billion at the end of 2022, a rise of 6.3%[7] - The total gross receivables increased to $3,880.7 million as of June 30, 2023, from$3,501.6 million at the end of 2022[29] - The allowance for credit losses rose to $172.1 million as of June 30, 2023, compared to$149.8 million at the end of 2022, reflecting increased customer spending and higher loss rates[31] Cash Flow and Investments - Total cash and cash equivalents, including restricted cash, at the end of the period was $2,711,235, compared to$2,356,433 at the end of June 30, 2022, indicating an increase of about 15%[15] - Net cash provided by operating activities for the six months ended June 30, 2023, was $826,680, significantly higher than$41,853 in the same period of 2022[15] - Net cash used in investing activities for the six months ended June 30, 2023, was $(201,215), compared to$(100,373) in the same period of 2022, indicating a higher cash outflow[15] - The company reported depreciation of $53,739 for the six months ended June 30, 2023, compared to$43,783 in the same period of 2022, reflecting an increase of approximately 23%[15] Revenue Segments - Revenue from contracts with customers represented approximately 86% of total consolidated revenues for the three months ended June 30, 2023[21] - Revenue from the Fleet solution was $382.6 million, accounting for 40$377.4 million and 44% in the prior year[22] - The Corporate Payments segment generated $247.0 million, representing 26$189.7 million and 22% year-over-year[22] - Revenue from the United States was $534.7 million, making up 56$527.7 million and 61% in the previous year[23] Stock and Equity - The company repurchased 26,338,904 shares for an aggregate purchase price of $5.9 billion since the stock repurchase program began, leaving$1.2 billion available for future repurchases[38] - The company’s total liabilities were $210,906 thousand as of June 30, 2023, down from$224,725 thousand on December 31, 2022, indicating a decrease of approximately 6.1%[35] - The total unrecognized compensation cost related to stock-based compensation as of June 30, 2023, was $132,802 thousand[40] - The aggregate intrinsic value of stock options exercisable at June 30, 2023, was$293.7 million, with a weighted average remaining contractual term of 3.6 years[42] Legal and Regulatory Matters - The company faces a new derivative lawsuit seeking approximately $118 million in damages related to alleged unfair marketing and billing practices[61] - The company has incurred ongoing legal fees related to the FTC investigation and derivative lawsuits, with potential costs including redress and penalties[64] - The company intends to appeal the FTC's decision regarding liability, while also engaging in mediation for potential resolution[64] Foreign Exchange and Derivatives - The company reported foreign currency translation gains of$59.5 million in Q2 2023, compared to losses of $158.9 million in Q2 2022[10] - The fair value of foreign exchange derivative assets as of June 30, 2023, is$587.0 million, while derivative liabilities amount to $530.2 million[68] - The total notional amount of foreign exchange derivative customer contracts is$51,444.4 million, an increase from $40,496.4 million as of December 31, 2022[67] Acquisitions and Goodwill - The company acquired three businesses in 2023 for a total purchase price of approximately$135.1 million, enhancing geographic expansion of its products[44] - Goodwill increased to $5,473.6 million as of June 30, 2023, reflecting acquisitions and foreign currency adjustments[51] - The preliminary acquisition accounting for the acquired businesses includes$161.0 million in goodwill and $50.1 million in intangible assets[48]