FleetCor(US:FLT)2024-11-08 13:24Financial Performance - Corpay reported net revenues of $1,029.2 million for the three months ended September 30, 2024, a 6% increase from $970.9 million in the same period of 2023[98]. - Net income attributable to Corpay for the nine months ended September 30, 2024, was $757.8 million, compared to $726.0 million for the same period in 2023, reflecting a 4.3% increase[97]. - Adjusted net income per diluted share for the three months ended September 30, 2024, was $5.00, up from $4.49 in the same period of 2023, representing an increase of 11.4%[99]. - Total consolidated net revenues reached $1,029.2 million, marking a 6% increase from $970.9 million in the previous year[108]. - Total revenues for the nine months ended September 30, 2024, increased by 4.2% to $2,940.2 million, driven by organic growth of 6% and acquisitions contributing 2%[136]. - Net income from operations for Q3 2024 was $276.3 million, compared to $271.5 million in Q3 2023, reflecting a year-over-year increase of 2.9%[172]. - EBITDA for Q3 2024 reached $557.7 million, up from $528.9 million in Q3 2023, representing a growth of 5.5%[172]. - Operating income for the nine months ended September 30, 2024, increased by 5.3% to $1,298.8 million, reflecting improved operational efficiency[139]. Segment Performance - The Vehicle Payments segment generated $506.8 million in net revenues for the three months ended September 30, 2024, accounting for 49% of total revenues, compared to 52% in the same period of 2023[103]. - The Corporate Payments segment saw revenues increase to $321.9 million for the three months ended September 30, 2024, up from $257.8 million in the same period of 2023, marking a 24.9% increase[103]. - Lodging Payments segment saw net revenues decrease by 5% to $134.0 million from $141.4 million year-over-year[108]. - Vehicle Payments revenues were $1,511.1 million, relatively flat with a 0.4% increase, supported by organic growth and acquisitions[141]. - Corporate Payments revenues surged by 20.0% to $875.7 million, driven by an 18% organic growth and strong new sales[142]. - Lodging Payments revenues for the nine months ended September 30, 2024, decreased by 8.1% to $367.7 million, impacted by prior year insurance commissions and a decline in room nights[143]. Acquisitions and Investments - The company completed the acquisition of 70% of Zapay for approximately $59.5 million, enhancing its Vehicle Payments business in Brazil[114]. - In July 2024, the company acquired Paymerang for approximately $179.2 million, expanding its presence in education, healthcare, hospitality, and manufacturing markets[116]. - The acquisition of GPS Capital Markets, expected to close in early 2025, is valued at approximately $725 million and will enhance the company's Corporate Payments segment[116]. - The company completed asset acquisitions totaling approximately $6.7 million during the nine months ended September 30, 2024[116]. Cash Flow and Liquidity - Net cash provided by operating activities was $1,291.9 million for the nine months ended September 30, 2024, a decrease of 6.7% from $1,384.6 million in the same period of 2023[148]. - Net cash used in investing activities increased to $378.2 million in the nine months ended September 30, 2024, compared to $345.6 million in the prior year, primarily due to the absence of proceeds from the sale of the Russian business[148]. - The company reported net cash provided by financing activities of $176.2 million for the nine months ended September 30, 2024, a significant turnaround from net cash used of $501.5 million in the same period of 2023[148]. - As of September 30, 2024, the company had approximately $2.1 billion in total liquidity, including $0.8 billion available under the Credit Facility and $1.3 billion in unrestricted cash[145]. Debt and Interest - Interest expense, net, increased to $104.4 million, up $16.2 million from the prior period, primarily due to increased borrowings for acquisitions and share repurchases[125]. - Interest expense increased by $31.6 million to $288.2 million, primarily due to higher interest rates and increased borrowings[139]. - The company has a $7.5 billion Credit Agreement, with $3.1 billion in borrowings outstanding on Term Loan A and $2.3 billion on Term Loan B as of September 30, 2024[149]. - The Securitization Facility, amounting to $1.7 billion, had an interest rate of 5.87% as of September 30, 2024[151]. Strategic Outlook - The company plans to continue incurring additional sales and marketing expenses to support expected revenue growth[111]. - The company anticipates continued growth in transaction volume despite potential macroeconomic challenges and regulatory changes[174]. - The company is focused on executing its strategic plan and managing growth to achieve performance targets[174]. - There are ongoing efforts to develop and implement new technology, products, and services to enhance operational performance[175].