FleetCor(FLT) - 2024 Q4 - Annual Report

Revenue and Income - Net revenues for 2024 reached $3,974,589, an increase of 5.8% compared to $3,757,719 in 2023[432] - Net income attributable to Corpay for 2024 was $1,003,746, reflecting a growth of 2.9% from $981,890 in 2023[432] - Basic earnings per share attributable to Corpay rose to $14.27, up from $13.42, marking an increase of 6.3%[432] - Consolidated revenues for the year ended December 31, 2024, were $3,974.6 million, representing an increase from $3,757.7 million in 2023 and $3,427.1 million in 2022[519] - Revenues from contracts with customers accounted for approximately 85% of consolidated revenues for both 2024 and 2023[517] - Vehicle Payments segment generated $2,008.8 million in revenue for 2024, slightly up from $2,005.5 million in 2023[519] - Corporate Payments segment saw significant growth, with revenues increasing to $1,221.9 million in 2024 from $981.1 million in 2023, marking a 24.5% increase[519] - Float revenue from invested customer funds represented approximately 3% of consolidated revenues in 2024, up from 2% in 2023[518] Assets and Liabilities - Total assets increased to $17,957,031, up from $15,476,252, representing a growth of 16.0% year-over-year[429] - Total current liabilities increased to $8,707,881, compared to $6,825,753 in the previous year, a rise of 27.5%[430] - Total stockholders' equity decreased to $3,145,989 from $3,282,359, a decline of 4.2%[430] - The Company reported net accounts and securitized accounts receivable of $3.414 billion as of December 31, 2024, compared to $3.469 billion in 2023[497] - The Company’s total gross receivables decreased to $3.547 billion in 2024 from $3.649 billion in 2023[497] - Total assets measured at fair value as of December 31, 2024, were $2,168.2 million, with total liabilities at $739.4 million[530] Goodwill and Impairment - The company recognized a goodwill impairment loss of $90 million related to the Payroll Card reporting unit in 2024, with total goodwill at $6.0 billion[421] - The Company recognized a goodwill impairment loss of $90 million related to the Payroll card reporting unit due to decreased usage and increased costs of capital[462] - The Company has approximately $57 million of goodwill remaining related to the Payroll card reporting unit following the impairment[462] - Goodwill increased to $5.98 billion by December 31, 2024, reflecting acquisitions and adjustments, with $383.9 million attributed to recent acquisitions[565][567] Debt and Interest Rates - The company had $6.7 billion of variable rate debt outstanding as of December 31, 2024, an increase from $5.4 billion in 2023[405] - A 100 basis point change in market interest rates would have changed interest expense by approximately $22 million in 2024 and $14 million in 2023[406] - Total debt increased to $7.996 billion in 2024 from $6.723 billion in 2023, representing a 18.9% increase[579] - Term Loan A interest rate decreased to 5.83% in 2024 from 6.83% in 2023, while Term Loan B interest rate decreased to 6.11% from 7.21%[582] - The effective interest rate incurred on term loans was 6.87% during 2024[584] Cash Flow and Investments - Net cash provided by operating activities decreased to $1,940,565 in 2024 from $2,101,132 in 2023, a decline of 7.7%[442] - Total cash and cash equivalents at the end of 2024 increased to $4,456,345 from $3,141,535 in 2023, representing a growth of 42.0%[442] - The Company made a $37.4 million investment in a joint venture with a Brazilian bank in 2021, classified as an equity method investment[466] - The Company capitalized software costs of $136.3 million, $128.0 million, and $120.5 million in 2024, 2023, and 2022, respectively[469] - Cash paid for interest increased to $496,098 in 2024 from $448,384 in 2023, reflecting an increase of 10.6%[442] Foreign Currency and Exchange Rates - International revenues accounted for 47.7% of total revenues in 2024, up from 45.6% in 2023[403] - A hypothetical 10% change in foreign currency exchange rates could have impacted consolidated operating income by approximately $97.8 million in 2024, compared to $86.0 million in 2023[403] - The company reported a foreign currency translation loss of $496,534 in 2024, compared to a gain of $140,089 in 2023[436] - The Company recorded net foreign exchange losses of $9.2 million in 2024, compared to $4.8 million in 2023[477] - The Company reported foreign currency losses on long-term intra-entity transactions of $132.0 million in 2024[477] Acquisitions - The acquisitions of Paymerang and GPS Capital Markets, LLC were completed for total estimated purchase consideration of $179.2 million and $576.2 million, respectively[424] - In 2024, the Company acquired 70% of Zapay for approximately $59.5 million, with goodwill recorded at approximately $73.2 million[553] - The Company acquired 100% of Paymerang for approximately $179.2 million, with goodwill recorded at approximately $308.1 million[554] - The total consideration paid for the 2024 acquisitions was approximately $814.9 million, net of cash and cash equivalents of $509.0 million[556] Taxation - The total provision for income taxes for 2024 was $381,381 thousand, representing an increase from $343,115 thousand in 2023 and $321,333 thousand in 2022[592] - The computed "expected" tax expense for 2024 was $290,877 thousand, reflecting a tax rate of 21.0% consistent with the previous two years[592] - The valuation allowance decreased by $52.8 million in 2024, primarily due to the release of a deferred tax asset related to foreign tax credits[595] - The unrecognized tax benefits at December 31, 2024, increased to $95,460 thousand from $63,106 thousand in 2023[598] - The accumulated interest and penalties related to unrecognized tax benefits were $36.8 million as of December 31, 2024, compared to $30.7 million in 2023[597]