Financial Performance - FLEETCOR's net revenues for Q1 2022 were $789.2 million, a 29.6% increase from $608.6 million in Q1 2021[110] - Net income for Q1 2022 was $218.0 million, compared to $184.2 million in Q1 2021, reflecting a 18.3% year-over-year growth[110] - Adjusted net income for Q1 2022 was $242.1 million, with adjusted net income per diluted share at $2.82, up from $289.7 million and $3.65 in Q1 2021[111] - Total net revenues for the three months ended March 31, 2022, were $789.2 million, representing a 30% increase from $608.6 million in the same period of 2021[125] - Operating income for the three months ended March 31, 2022, was $317.7 million, reflecting an increase of $51.8 million or 19.5% from $266.0 million in the same period of 2021[151] - Net income increased to $218.0 million, up by $33.7 million or 18.3% from $184.2 million in the prior year[150] - Consolidated revenues increased to $789.2 million for the three months ended March 31, 2022, up by $180.6 million or 29.7% from $608.6 million in the same period of 2021[136] Revenue Segmentation - North America segment generated $547.4 million in net revenues for Q1 2022, accounting for 69% of total revenues, compared to 66% in Q1 2021[117] - The U.S. contributed $471.8 million, or 60% of total revenues, in Q1 2022, up from $370.4 million, or 61%, in Q1 2021[118] - Fuel solutions accounted for 40% of total revenues in Q1 2022, generating $318.5 million, compared to 43% and $261.9 million in Q1 2021[119] - Brazil segment revenues reached $102.5 million, up by $20.6 million or 25.2% from $81.9 million in the same period last year[140] - International segment revenues were $139.3 million, an increase of $14.8 million or 11.9% from $124.5 million in the prior year[141] - Corporate payments revenues surged by 58% to $183.8 million, with spend volume reaching $27.4 billion, a 52% increase compared to the previous year[125] - Lodging revenues rose by 60% to $94.6 million, driven by a 49% increase in room nights to 8.8 million[125] - Toll revenues grew by 23% to $84.9 million, with average monthly tags increasing by 5% to 6.1 million[125] Operational Insights - The company's operations in Russia represented approximately 2.3% of consolidated assets as of March 31, 2022, with a net book value of $227 million[108] - FLEETCOR operates primarily in three geographies, with 85% of revenues generated in the U.S., Brazil, and the U.K.[112] - The impact of COVID-19 and geopolitical events, such as the conflict in Ukraine, continues to create uncertainty for FLEETCOR's operations and financial results[104][106] - Approximately 12% of net revenues were directly impacted by changes in fuel prices, consistent with the previous year[131] - The company reported a total liquidity of approximately $2.3 billion as of March 31, 2022, consisting of $969 million available under the Credit Facility and $1.3 billion in unrestricted cash[156] Investments and Acquisitions - The company completed the acquisition of Levarti, a U.S.-based airline software platform, on March 1, 2022[131] - The company completed several acquisitions in 2021 and 2022, including ALE Solutions for $421.8 million and Associated Foreign Exchange for $459.1 million, contributing to revenue growth[30] - The company plans to continue investing in sales and marketing to support expected revenue growth, particularly in direct marketing and field sales[131] Cash Flow and Expenses - Consolidated operating expenses rose to $474.4 million, an increase of $139.5 million or 41.7% from $334.9 million in the same period last year[142] - Net cash used in operating activities was $112.3 million for the three months ended March 31, 2022, compared to net cash provided of $77.9 million in the prior period, primarily due to unfavorable working capital movements[162] - Capital expenditures increased by $11.9 million or 60.7% to $31.4 million for the three months ended March 31, 2022, driven by acquisitions and technology investments[165] - Net cash used in financing activities was $49.8 million for the three months ended March 31, 2022, an increase from $16.6 million in the prior period, primarily due to increased stock repurchases[164] Shareholder Returns - The company repurchased 21,845,168 shares for an aggregate purchase price of $4.9 billion since the beginning of the stock repurchase program, leaving $1.2 billion remaining for future repurchases[173] Tax and Interest - The provision for income taxes was $76.7 million, an increase of $25.3 million or 49.1% from $51.4 million in the same period last year[149] - Interest expense decreased to $22.0 million, down by $6.5 million or 22.8% from $28.6 million in the prior year[146] - The interest rate on the term loan A was 1.96% and on the term loan B was 2.21% as of March 31, 2022[167] Market Conditions - The company experienced an estimated $22 million positive impact from fuel prices and a $5 million positive impact from fuel price spreads in Q1 2022[182] - The impact of foreign exchange rates negatively affected revenues by approximately $6 million in Q1 2022[182] Strategic Focus - FLEETCOR's vision emphasizes the transition to digital payments, aiming to enhance control and reduce unauthorized spending for businesses[101] - Organic revenue growth is calculated by adjusting current period revenue growth for macroeconomic changes and acquisitions, providing a clearer view of operational performance[127] - The company continues to focus on strategic initiatives to enhance financial performance and manage growth effectively[189]
Corpay, Inc.(CPAY) - 2022 Q1 - Quarterly Report