FLEETCOR Reports Q1 Financial Results

The first quarter of 2019 was another strong quarter for the Company driven primarily by solid performances in all business categories

FLEETCOR Technologies global business payments company, has reported financial results for its first quarter of 2019.

 “Our first quarter revenues and profits finished above our expectations, with adjusted net income per diluted share of $2.67, $0.07 above the midpoint of our guidance for the quarter. We delivered another solid organic revenue growth rate quarter of 11%, driven primarily by strong double digit growth rates in corporate payments, tolls, lodging (excluding the impact of FEMA), and the fuel category had another strong quarter finishing up 10%,” said Ron Clarke, chairman and chief executive officer, FLEETCOR Technologies, Inc. “We also continue to advance our corporate payments strategy by recently acquiring Nvoicepay, a leader in full AP automation for businesses. We believe this addition will help expand our capabilities in the corporate payments space.”

Financial Results for First Quarter of 2019:

GAAP Results

• Total revenues increased 6% to $621.8 million in the first quarter of 2019, compared to $585.5 million in the first quarter of 2018.
• Net income decreased 2% to $172.1 million in the first quarter of 2019, compared to $174.9 million in the first quarter of 2018. Included in the first quarter results was the impact of a $15.7 million impairment charge related to our investment in a telematics business. Excluding the impact of the impairment charge, net income increased 7% to $187.8 million in the first quarter of 2019.
• Net income per diluted share increased 3% to $1.93 in the first quarter of 2019, compared to $1.88 per diluted share in the first quarter of 2018. Included in the first quarter results was the impact of a $0.17 per diluted share impairment charge related to our investment in a telematics business. Excluding the impact of the impairment charge, net income per diluted share increased 12% to $2.10 in the first quarter of 2019.

Non-GAAP Results¹

• Adjusted net income¹ increased 2% to $238.4 million in the first quarter of 2019, compared to $233.5 million in the first quarter of 2018.
• Adjusted net income per diluted share¹ increased 7% to $2.67 in the first quarter of 2019, compared to $2.50 per diluted share in the first quarter of 2018.

Fiscal-Year 2019 Outlook:

“The first quarter of 2019 was another strong quarter for the Company driven primarily by solid performances in all of our business categories. The macro-economic environment came in as expected during the quarter which negatively impacted adjusted net income per share approximately $0.16 versus the first quarter of 2018,” said Eric Dey, chief financial officer, FLEETCOR Technologies, Inc. “We are raising our full year revenue guidance $30 million at the mid-point to reflect our first quarter over performance and the acquisitions closed on April 1. We are also raising our adjusted net income per diluted share guidance $0.07 to $11.62 at the mid-point to reflect our first quarter results compared to our expectations. Also, we expect a few moving parts in our balance of the year guidance. We expect the macro impact for the balance of the year will be in line with our prior guidance as the impact of favorable fuel prices will be offset by unfavorable foreign exchange rates. We also expect a higher share count due primarily to the increase in our share price, and a slightly dilutive impact from the Nvoicepay acquisition over the balance of the year. We expect our business to continue to over-perform for the balance of the year to help offset the impact of the higher share count and the slightly dilutive transaction.”

For fiscal year 2019, FLEETCOR Technologies, Inc. updated financial guidance is as follows:

• Total revenues between $2,600 million and $2,660 million;
• GAAP net income between $800 million and $830 million;
• GAAP net income per diluted share between $8.85 and $9.15;
• Adjusted net income to be between $1,030 million and $1,060 million; and
• Adjusted net income per diluted share between $11.47 and $11.77.

FLEETCOR’s guidance assumptions for 2019 are as follows:

• Weighted fuel prices equal to $2.90 per gallon average in the U.S. for the balance of the year for those businesses sensitive to the movement in the retail price of fuel for the balance of the year;
• Market spreads slightly below the 2018 average;
• Foreign exchange rates equal to the seven-day average as of April 28, 2019;
• Interest expense of $160 million;
• Fully diluted shares outstanding of approximately 90.1 million shares;
• An adjusted tax rate of 23% to 24%; and
• No impact related to acquisitions or material new partnership agreements not already disclosed.

Second Quarter of 2019 Outlook:

For the second quarter, the Company is expecting adjusted net income per diluted share to be in the range of $2.74 to $2.84. The second quarter guidance includes the dilutive impact of the Nvoicepay acquisition and higher share count. Additionally, volumes should build throughout the year, and new growth initiatives are also expected to gain momentum throughout the year resulting in higher revenue and earnings per share in the third and fourth quarters.

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