Financial Performance - Corpay reported net revenues of $1,029.2 million for the three months ended September 30, 2024, a 6.0% increase from $970.9 million in the same period of 2023[98]. - Net income attributable to Corpay for the three months ended September 30, 2024, was $276.4 million, compared to $271.5 million for the same period in 2023, reflecting a 1.8% increase[97]. - Adjusted net income attributable to Corpay for the three months ended September 30, 2024, was $354.5 million, up from $335.1 million in the prior year, representing a 5.0% increase[99]. - EBITDA for the three months ended September 30, 2024, was $557.7 million, compared to $528.9 million in the same period of 2023, indicating a 5.4% increase[99]. - Total consolidated net revenues reached $1,029.2 million, marking a 6% growth from $970.9 million year-over-year[108]. - Consolidated operating income was $468.1 million, a 5.2% increase compared to the prior period[125]. - Net income attributable to Corpay increased to $276.4 million, or 1.8%, from the prior period[128]. - Consolidated revenues increased by 4.2% to $2,940.2 million for the nine months ended September 30, 2024, driven by organic growth of 6% and acquisitions[136]. - For the nine months ended September 30, 2024, net income was $757.7 million, an increase from $726.0 million in the same period of 2023[172]. Revenue Segments - 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[103]. - Corporate Payments segment revenues increased to $321.9 million for the three months ended September 30, 2024, representing 31% of total revenues, up from 27% in the same period of 2023[103]. - Vehicle Payments segment reported net revenues of $506.8 million, a 1% increase from $500.6 million in the same period last year[108]. - Corporate Payments segment achieved net revenues of $321.9 million, reflecting a 25% increase compared to $257.8 million in the prior 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 decreased by 5.2% to $134.0 million in Q3 2024, primarily due to non-recurring insurance commissions from the prior year[131]. - Other revenues decreased by 6.3% to $66.5 million in Q3 2024, attributed to lower payroll card business volume and timing of gift transactions[132]. Acquisitions and Investments - The company acquired 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, enhancing its presence in various market verticals[116]. - The company signed an agreement to acquire GPS Capital Markets for approximately $725 million, expected to close in early 2025[116]. - The company completed asset acquisitions totaling approximately $6.7 million for the nine months ended September 30, 2024[116]. - The company announced a stock repurchase program with an aggregate size of $9.1 billion, of which $7.6 billion has been utilized to repurchase 32,438,132 shares as of September 30, 2024[158]. - The company’s capital expenditures increased by 12% to $131.1 million in the nine months ended September 30, 2024, compared to $117.2 million in the prior period, driven by acquisitions and technology investments[148]. 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 period, primarily due to the absence of $197.0 million in 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, consisting of $0.8 billion available under the Credit Facility and $1.3 billion in unrestricted cash[145]. - 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]. Market and Economic Factors - Approximately 8% of net revenues were directly impacted by changes in fuel prices for the nine months ended September 30, 2024[112]. - The company experienced a negative impact of approximately $14 million on consolidated revenues due to macroeconomic factors[121]. - The impact of foreign exchange rates negatively affected revenues by approximately $17 million, while fuel prices had a negative impact of about $5 million[166]. - The effective tax rate is subject to fluctuations driven by the impact of discrete tax items and changes in tax laws[111]. - The provision for income taxes for Q3 2024 was $82.0 million, down from $98.6 million in Q3 2023, a decrease of 16.7%[172]. Strategic Initiatives - Corpay's vision emphasizes that every payment is digital, aiming to reduce unauthorized purchases and fraud through enhanced data analytics[92]. - The company highlighted ongoing strategic initiatives and potential market expansions in its forward-looking statements[174]. - The company emphasized the importance of managing credit risks and maintaining operational efficiency amid macroeconomic uncertainties[175]. - The company continues to evaluate the performance and effectiveness of its operational strategies using adjusted net income and organic revenue growth as key metrics[169].
Corpay, Inc.(CPAY) - 2024 Q3 - Quarterly Report