FleetCor(US:FLT)2023-08-08 16:00Stock Repurchase and Equity - As of June 30, 2023, the company has repurchased 26,338,904 shares for an aggregate purchase price of $5.9 billion, leaving $1.2 billion available for future repurchases[52]. - The stock repurchase program was increased by $1.0 billion to a total of $7.1 billion on October 25, 2022[52]. - The Company has repurchased 26,338,904 shares for an aggregate purchase price of $5.9 billion since the inception of the stock repurchase program, leaving $1.2 billion available for future repurchases[70]. Financial Performance - Consolidated revenues for the three months ended June 30, 2023, were $948.2 million, a 10.1% increase from $861.3 million in the same period of 2022[79]. - Revenues for the six months ended June 30, 2023, reached $1,849,507 thousand, an increase of 12.1% from $1,650,519 thousand in the same period in 2022[89]. - Net income for Q2 2023 was $239,702 thousand, a decrease of 8.5% compared to $262,171 thousand in Q2 2022[89]. - Basic earnings per share for Q2 2023 were $3.24, down from $3.42 in Q2 2022, reflecting a decline of 5.3%[89]. - Net income for the six months ended June 30, 2023, was $454,537, a decrease of 5.3% compared to $480,123 for the same period in 2022[96]. - Adjusted net income for Q2 2023 was $314.3 million, compared to $326.1 million in Q2 2022, reflecting a decrease of 3.5%[165]. Legal Proceedings and Risks - The company is currently involved in various legal proceedings, but management does not believe these will materially affect financial performance[45]. - A new derivative lawsuit filed in January 2023 seeks approximately $118 million in damages related to alleged unfair marketing practices[46]. - The company intends to appeal a court decision related to the FTC's claims after final judgment is issued[47]. - The company continues to face risks associated with ongoing litigation and regulatory investigations, which could affect future results[51]. - The FTC's administrative action against the Company is currently stayed, pending further developments[123]. Assets and Liabilities - Total assets increased to $15,178,653 thousand as of June 30, 2023, up from $14,089,260 thousand at December 31, 2022, representing a growth of approximately 7.7%[88]. - Total debt decreased from $7,036,894 thousand to $6,749,489 thousand, with a current portion of $2,071,231 thousand and a long-term portion of $4,678,258 thousand as of June 30, 2023[111]. - The net book value of the Company's assets in Russia at June 30, 2023, was approximately $219.7 million, with $216.5 million classified as restricted cash[155]. Revenue Segmentation - Revenue from the United States accounted for 56% of total revenues for the three months ended June 30, 2023, totaling $534.7 million[79]. - Brazil's revenue for the three months ended June 30, 2023, was $126.1 million, representing 13% of total revenues[79]. - Revenues for the Corporate Payments segment increased by 30.2% from $189,699 thousand in Q2 2022 to $246,952 thousand in Q2 2023[119]. - Corporate Payments segment revenues increased to $247.0 million in Q2 2023, representing 26% of total revenues, up from 22% in Q2 2022[162]. Cash Flow and Liquidity - Cash and cash equivalents decreased to $1,254,243 thousand as of June 30, 2023, from $1,435,163 thousand at December 31, 2022, a decline of 12.6%[88]. - As of June 30, 2023, 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[217]. - For the six months ended June 30, 2023, net cash provided by operating activities was $826.7 million, compared to $41.9 million for the same period in 2022[222]. Interest and Financing - Interest expense, net, increased significantly by 283.6% to $88.5 million, primarily due to rising interest rates on borrowings[191]. - The Securitization Facility, which matures on August 18, 2025, had an interest rate of 6.20% as of June 30, 2023, with a total receivables purchase agreement of $1.7 billion[229]. - The Company entered into the thirteenth amendment to the Credit Facility on May 3, 2023, replacing LIBOR with the Secured Overnight Financing Rate (SOFR) plus a SOFR adjustment of 0.10%[111]. Foreign Exchange and Derivatives - The fair value of derivative assets as of June 30, 2023, was $587.0 million, while derivative liabilities were $530.2 million, indicating a net position of $56.8 million[131]. - The Company has outstanding interest rate swap derivatives with a notional amount of $500 million at a fixed rate of 2.50% maturing on December 19, 2023[136]. - The Company recognized a benefit of $3.9 million in interest expense for the six months ended June 30, 2023, related to excluded components of a cross currency interest rate swap designated as a net investment hedge[142]. Operational Highlights - The company completed over 95 acquisitions since 2002, with recent acquisitions including Global Reach for approximately $102.9 million in January 2023[183]. - The company continues to focus on expanding its payment solutions across more than 150 countries, enhancing its service offerings in Vehicle and Mobility solutions and Corporate Payments solutions[167]. - Processing expenses increased by 10.6% to $205.3 million, attributed to higher transaction volumes and acquisition-related costs[191].