Corpay, Inc.(CPAY) - 2024 Q4 - Annual Results

Financial Performance - Corpay reported fourth quarter organic revenue growth of 12% and adjusted EPS growth of 21%, exceeding mid-term growth targets [2]. - Full year Corporate Payments growth was 20%, with total revenues increasing by 10% to $3,974.6 million in 2024 compared to$3,757.7 million in 2023 [6][7]. - Adjusted EBITDA for 2024 rose by 7% to $2,129.0 million, up from$1,994.2 million in 2023 [5]. - Fourth quarter adjusted net income increased by 18% to $383.2 million, compared to$326.1 million in the same quarter of 2023 [6]. - Adjusted net income per diluted share for 2024 increased by 12% to $19.01, compared to$16.92 in 2023 [11]. - Revenues for Q4 2024 reached $1,034,431, a 10$937,320 in Q4 2023 [24]. - Net income for the year ended December 31, 2024, was $1,003,732, reflecting a 2$981,890 in 2023 [28]. - Operating income for the year was $1,787,157, an 8$1,656,873 in 2023 [24]. - Basic earnings per share for the year increased to $14.27, up 6$13.42 in 2023 [24]. - Total net revenues for Q4 2024 were $1,034.4 million, a 10$937.3 million in Q4 2023 [38]. Future Projections - For fiscal year 2025, Corpay projects sales growth of approximately 20% and revenue growth of 10% to 12% [8]. - First quarter 2025 organic revenue growth is expected to be between 8% to 10%, with adjusted EPS growth projected at 9% to 11% [9]. - Corpay's updated financial guidance for 2025 includes total revenues projected between $4,350 million and$4,450 million [12]. - The company expects to generate approximately $1.5 billion in free cash flow in 2025, providing significant capital allocation flexibility [8]. - The company expects full-year 2025 net income guidance between$1,174 million and $1,224 million, with adjusted net income projected between$1,482 million and $1,532 million [44]. Segment Performance - Corporate Payments segment revenues surged by 38$346.2 million in Q4 2024 compared to $251.1 million in Q4 2023 [33]. - Vehicle Payments segment revenues decreased slightly to$497.7 million in Q4 2024, down 0.4% from $499.8 million in Q4 2023, but increased by 8$120.9 million in Q4 2024, compared to $119.9 million in Q4 2023 [40]. - Total spend volume in the Corporate Payments segment increased by 43$47.94 billion in Q4 2024 from $33.58 billion in Q4 2023 [33]. - Operating income for Vehicle Payments segment rose by 50$364.8 million in Q4 2024, up from $242.5 million in Q4 2023 [38]. Cash Flow and Capital Management - Corpay deployed over$2.5 billion in capital for acquisitions and stock repurchases while maintaining a leverage ratio of 2.75x [8]. - The company reported a total operating expense of $2,187,432 for the year, a 4$2,100,846 in 2023 [24]. - The company’s cash provided by operating activities for the year was $1,940,565, down from$2,101,132 in 2023 [28]. - Cash and cash equivalents and restricted cash at the end of the period totaled $4,456,345, compared to$3,141,535 at the end of 2023 [28]. - Capital expenditures increased by 21% to $44.3 million in Q4 2024, compared to$36.7 million in Q4 2023 [38]. Asset and Liability Management - Total current assets increased to $8,670,675 as of December 31, 2024, up from$7,084,265 in 2023 [26]. - Total liabilities increased to $14,825,848 as of December 31, 2024, from$12,758,893 in 2023 [26]. - The company reported a goodwill impairment of $90 million in 2024, impacting net income [30]. - Goodwill impairment of$90,000 was recorded in Q4 2024, with no prior year comparison [24]. Market Impact - The US market accounted for 53% of total revenues in Q4 2024, with revenues of $547 million, compared to$500 million in Q4 2023 [35]. - The impact of foreign exchange rates negatively affected revenues by approximately $28 million in Q4 2024 [40]. - The company acquired Zapay in Q1 2024, with results included in the Vehicle Payments segment from the acquisition date [38].