FLEETCOR Reports Fourth Quarter and Fiscal-Year 2016 Financial Results

NORCROSS, Ga.--()--FLEETCOR Technologies, Inc. (NYSE:FLT), a leading global provider of fuel cards and workforce payment products to businesses, today reported financial results for its fourth quarter and year ended December 31, 2016.

“We are expecting 2017 to be a great year, with organic revenue growth accelerating to 10%, and adjusted net income projected to grow 19%, at the mid-point of the guidance range.”

“Q4 revenue and adjusted net income per share finished above the high end of our guidance range, and Q4 new sales bookings recovered quite nicely,” said Ron Clarke, chairman and chief executive officer, FLEETCOR Technologies, Inc. “We are expecting 2017 to be a great year, with organic revenue growth accelerating to 10%, and adjusted net income projected to grow 19%, at the mid-point of the guidance range.”

Financial Results for Fourth Quarter of 2016:

GAAP Results

  • Total revenues increased 20% to $515.0 million in the fourth quarter of 2016 compared to $430.6 million in the fourth quarter of 2015.
  • GAAP net income increased 81% to $95.4 million in the fourth quarter of 2016 compared to $52.8 million in the fourth quarter of 2015. Included in fourth quarter of 2016 and 2015 were non-cash impairment charges related to our minority investment in Masternaut of $36 million and $40 million, respectively. Also, included in GAAP net income was non-cash stock based compensation expense of $13.9 million and $45.7 million in the fourth quarter of 2016 and 2015, respectively.
  • GAAP net income per diluted share increased 79% to $1.00 in the fourth quarter of 2016 compared to $0.56 per diluted share in the fourth quarter of 2015.

Non-GAAP Results1

  • Adjusted revenues1 (revenues, net less merchant commissions) increased 21% to $489.4 million in the fourth quarter of 2016 compared to $403.1 million in the fourth quarter of 2015.
  • Adjusted net income1 increased 13% to $180.5 million in the fourth quarter of 2016 compared to $160.2 million in the fourth quarter of 2015.
  • Adjusted net income per diluted share1 increased 12% to $1.90 in the fourth quarter of 2016 compared to $1.70 in the fourth quarter of 2015.

Financial Results for Fiscal-Year 2016:

GAAP Results

  • Total revenues increased 8% to $1,831.5 million in 2016 compared to $1,702.9 million in 2015.
  • GAAP net income increased 25% to $452.4 million in 2016 compared to $362.4 million in 2015. Included in 2016 and 2015 were non-cash impairment charges related to our minority investment in Masternaut of $36 million and $40 million, respectively. Also, included in GAAP net income was non-cash stock based compensation expense for 2016 and 2015 of $64 million and $90 million, respectively.
  • GAAP net income per diluted share increased 23% to $4.75 in 2016 compared to $3.85 per diluted share in 2015.

Non-GAAP Results1

  • Adjusted revenues1 (revenues, net less merchant commissions) increased 8% to $1,727.2 million in 2016 compared to $1,594.6 million in 2015.
  • Adjusted net income1 increased 11% to $659.2 million in 2016 compared to $592.6 million in 2015.
  • Adjusted net income per diluted share1 increased 10% to $6.92 in 2016 compared to $6.30 in 2015.

Fiscal-Year 2017 Outlook:

“In 2017, we expect that the macro-economic environment will finally turn around, and positively impact revenue by approximately $30 million, and adjusted net income per share by $0.12. However, higher projected interest rates and an unfavorable tax comparison to 2016 will more than offset the favorable macro, and result in a net unfavorable impact to adjusted net income per share of approximately $0.12,” said Eric Dey, chief financial officer FLEETCOR Technologies, Inc.

For 2017, FLEETCOR Technologies, Inc. financial guidance and assumptions are as follows:

  • Total revenues between $2,170 million and $2,230 million;
  • GAAP net income between $550 million and $570 million;
  • GAAP net income per diluted share between $5.78 and $5.98;
  • Adjusted net income between $770 million and $790 million; and
  • Adjusted net income per diluted share1 between $8.10 and $8.30.

FLEETCOR’s guidance assumptions for 2017 are as follows:

  • Weighted fuel prices equal to $2.43 per gallon average in the U.S. for those businesses sensitive to the movement in the retail price of fuel for 2017 compared to $2.15 per gallon average in the U.S. in 2016, up approximately 13%.
  • Market spreads returning closer to historical levels, up slightly from the 2016 average.
  • Foreign exchange rates equal to the seven day average ended January 22, 2017.
  • Interest expense of $100 million compared to $72 million in 2016.
  • Fully diluted shares outstanding of 95 million shares.
  • Full year tax rate of approximately 29.5% for 2017 compared to 28.0% in 2016, excluding losses from our equity method investment.
  • No impact related to acquisitions or material new partnership agreements not already disclosed.

__________________________

1 Reconciliations of GAAP results to non-GAAP results are provided in Exhibit 1 attached. Additional supplemental data is provided in Exhibit 2-3 and segment information is provided in Exhibit 4. A reconciliation of GAAP guidance to non-GAAP guidance is provided in Exhibit 5.
 

FLEETCOR’s guidance assumption for the first quarter of 2017:

For those of you that are looking for guidance for the first quarter, the business has some seasonality and typically the first quarter is the lowest in terms of both revenue and profit. First quarter seasonality is impacted by weather, holidays in the U.S., and lower business levels in Brazil, due to summer break and the Carnival celebration that occurs in the first quarter.

With that said, the Company is expecting first quarter adjusted net income per diluted share to be between $1.82 and $1.88. Additionally, volumes will build throughout the year, and new asset initiatives are also expected to gain momentum throughout the year resulting in higher organic growth rates and earnings per share in the second through fourth quarters.

FLEETCOR Metrics

FLEETCOR is providing a new set of metrics some of which are included in today’s press release. The new metrics are as follows:

  • Revenue by geography
  • Revenue by product category
  • Major sources of revenue
  • Revenue per transaction by product category

Preliminary unaudited statements of income for the three and 12 months periods ended December 31, 2016 and balance sheets as of December 31, 2016 accompany this press release. Statements of cashflows will be provided in the Company’s 10-K which will be filed at a later date.

Conference Call

The company will host a conference call to discuss fourth quarter and fiscal-year 2016 financial results today at 5:00pm ET. Hosting the call will be Ron Clarke, chief executive officer, and Eric Dey, chief financial officer. The conference call can be accessed live over the phone by dialing (877) 407-0784, or for international callers (201) 689-8560. A replay will be available one hour after the call and can be accessed by dialing (844) 512-2921 or (412) 317-6671 for international callers; the conference ID is 13653942. The replay will be available until February 15, 2017. The call will be webcast live from the company's investor relations website at investor.fleetcor.com.

Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws. Statements that are not historical facts, including statements about FLEETCOR's beliefs, expectations and future performance, are forward-looking statements. Forward-looking statements can be identified by the use of words such as "anticipate," "intend," "believe," "estimate," "plan," "seek," "project," "expect," "may," "will," "would," "could" or "should," the negative of these terms or other comparable terminology. Examples of forward-looking statements in this press release include statements relating to macro- economic conditions and estimated impact of these conditions on our operations and financial results, revenue and earnings guidance and assumptions underlying financial guidance. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those contained in any forward-looking statement, such as fuel price and spread volatility; the impact of foreign exchange rates on operations, revenue and income; the effects of general economic conditions on fueling patterns and the commercial activity of fleets; changes in credit risk of customers and associated losses; the actions of regulators relating to payment cards or resulting from investigations; failure to maintain or renew key business relationships; failure to maintain competitive offerings; failure to maintain or renew sources of financing; failure to complete, or delays in completing, anticipated new partnership arrangements or acquisitions and the failure to successfully integrate or otherwise achieve anticipated benefits from such partnerships or acquired businesses; failure to successfully expand business internationally, as well as the other risks and uncertainties identified under the caption "Risk Factors" in FLEETCOR's Annual Report on Form 10-K for the year ended December 31, 2015, filed with the Securities and Exchange Commission on February 29, 2016. FLEETCOR believes these forward-looking statements are reasonable; however, forward-looking statements are not a guarantee of performance, and undue reliance should not be placed on such statements. The forward-looking statements included in this press release are made only as of the date hereof, and FLEETCOR does not undertake, and specifically disclaims, any obligation to update any such statements or to publicly announce the results of any revisions to any of such statements to reflect future events or developments.

About Non-GAAP Financial Measures

Adjusted revenue is calculated as revenues, net less merchant commissions. Adjusted net income is calculated as net income, adjusted to eliminate (a) non-cash stock based compensation expense related to share based compensation awards, (b) amortization of deferred financing costs, discounts and intangible assets, (c) amortization of the premium recognized on the purchase of receivables, (d) our proportionate share of amortization of intangible assets at our equity method investment, (e) a non-recurring net gain at our equity method investment and (f) impairment of our equity method investment. The Company uses adjusted revenue’s as a basis to evaluate the Company’s revenues, net of the commissions that are paid to merchants to participate in our card programs. The commissions paid to merchants can vary when market spreads fluctuate in much the same way as revenues are impacted when market spreads fluctuate. The Company believes this is a more effective way to evaluate the company’s revenue performance. We prepare adjusted net income to eliminate the effect of items that we do not consider indicative of our core operating performance. Adjusted revenues and adjusted net income are supplemental measures of operating performance that do not represent and should not be considered as an alternative to revenues, net, net income or cash flow from operations, as determined by U.S. generally accepted accounting principles, or U.S. GAAP, and our calculation thereof may not be comparable to that reported by other companies. We believe it is useful to exclude non-cash stock based compensation expense from adjusted net income because non-cash equity grants made at a certain price and point in time do not necessarily reflect how our business is performing at any particular time and stock based compensation expense is not a key measure of our core operating performance. We also believe that amortization expense can vary substantially from company to company and from period to period depending upon their financing and accounting methods, the fair value and average expected life of their acquired intangible assets, their capital structures and the method by which their assets were acquired; therefore, we have excluded amortization expense from our adjusted net income. We also believe one-time non-recurring gains and impairment charges do not necessarily reflect how our equity method investment and business is performing. Reconciliations of GAAP results to non-GAAP results are provided in the attached exhibit 1. A reconciliation of GAAP to non-GAAP guidance is provided in the attached exhibit 5.

Management uses adjusted revenues and adjusted net income:

  • as measurements of operating performance because they assist us in comparing our operating performance on a consistent basis;
  • for planning purposes, including the preparation of our internal annual operating budget;
  • to allocate resources to enhance the financial performance of our business; and
  • to evaluate the performance and effectiveness of our operational strategies.

We believe adjusted revenues, adjusted net income, and adjusted net income per diluted share are key measures used by the company and investors as supplemental measures to evaluate the overall operating performance of companies in our industry. By providing these non-GAAP financial measures, together with reconciliations, we believe we are enhancing investors' understanding of our business and our results of operations, as well as assisting investors in evaluating how well we are executing strategic initiatives.

About FLEETCOR

FLEETCOR is a leading global provider of fuel cards and workforce payment products to businesses. FLEETCOR's payment programs enable businesses to better control employee spending and provide card-accepting merchants with a high volume customer base that can increase their sales and customer loyalty. FLEETCOR serves commercial accounts in North America, Latin America, Europe, and Australia/New Zealand. For more information, please visit www.FLEETCOR.com.

       
FleetCor Technologies, Inc. and subsidiaries
Unaudited Consolidated Statements of Income
(In thousands, except per share amounts)
 
Three Months Ended December 31, Year Ended December 31,

20161

2015

20161

2015
 
Revenues, net $ 514,953 $ 430,601 $ 1,831,546 $ 1,702,865
 
Expenses:
Merchant commissions 25,590 27,480 104,345 108,257
Processing 98,676 84,194 355,414 331,073
Selling 38,763 28,064 131,443 109,075
General and administrative 74,541 100,938 283,625 297,715
Depreciation and amortization 61,408 48,018 203,256 193,453
Other operating, net   -     (4,242 )   (690 )   (4,242 )
Operating income   215,975     146,149     754,153     667,534  
Equity method investment loss 38,603 43,742 36,356 57,668
Other expense, net 1,926 178 2,982 2,523
Interest expense, net   21,991     16,521     71,896     71,339  
Total other expense   62,520     60,441     111,234     131,530  
Income before income taxes 153,455 85,708 642,919 536,004
Provision for income taxes   58,031     32,878     190,534     173,573  
Net income $ 95,424   $ 52,830   $ 452,385   $ 362,431  
 
Basic earnings per share $ 1.03 $ 0.57 $ 4.89 $ 3.94
Diluted earnings per share $ 1.00 $ 0.56 $ 4.75 $ 3.85
 
Weighted average shares outstanding:
Basic shares 92,574 92,321 92,597 92,023
Diluted shares 95,235 94,350 95,213 94,139
 
1 Reflects the impact of the Company's adoption of Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to simplify several aspects of the accounting for share-based compensation, including the income tax consequences.
   
FleetCor Technologies, Inc. and subsidiaries
Consolidated Balance Sheets
(In thousands, except share and par value amounts)
December 31, 2016 December 31, 2015
(Unaudited)
Assets
 
Current assets:
Cash and cash equivalents $ 475,018 $ 447,152
Restricted cash 168,752 167,492

Accounts and other receivables (less allowance for doubtful accounts of $32,506 and
$21,903, at December 31, 2016 and 2015, respectively)

1,202,009 638,954
Securitized accounts receivable - restricted for securitization investors 591,000 614,000
Prepaid expenses and other current assets 79,565 68,113
Deferred income taxes   -     8,913  
 
Total current assets   2,516,344     1,944,624  
 
Property and equipment 253,361 163,569
Less accumulated depreciation and amortization   (110,857 )   (82,809 )
 
Net property and equipment 142,504 80,760
 
Goodwill 4,171,964 3,546,034
Other intangibles, net 2,653,233 2,183,595
Equity method investment 36,200 76,568
Other assets   70,531     58,225  
 
Total assets $ 9,590,776   $ 7,889,806  
 
Liabilities and Stockholders’ Equity
 
Current liabilities:
Accounts payable $ 1,151,432 $ 669,528
Accrued expenses 218,543 150,677
Customer deposits 530,787 507,233
Securitization facility 591,000 614,000
Current portion of notes payable and other obligations 745,506 261,100
Other current liabilities   38,781     44,936  
 
Total current liabilities   3,276,049     2,247,474  
 
Notes payable and other obligations, less current portion 2,521,727 2,059,900
Deferred income taxes 660,320 713,428
Other noncurrent liabilities   48,642     38,957  
 
Total noncurrent liabilities   3,230,689     2,812,285  
 
Commitments and contingencies
 
Stockholders’ equity:

Common stock, $0.001 par value; 475,000,000 shares authorized, 121,259,960 shares
issued and 91,836,938 shares outstanding at December 31, 2016; and 120,539,041
shares issued and 92,376,335 shares outstanding at December 31, 2015

121 121
Additional paid-in capital 2,074,094 1,988,917
Retained earnings 2,218,721 1,766,336
Accumulated other comprehensive loss (666,403 ) (570,811 )
Less treasury stock, 29,423,022 and 28,162,706 shares at December 31, 2016 and 2015, respectively (542,495 ) (354,516 )
   
Total stockholders’ equity   3,084,038     2,830,047  
 
Total liabilities and stockholders’ equity $ 9,590,776   $ 7,889,806  
 
       
Exhibit 1
RECONCILIATION OF NON-GAAP MEASURES AND PRO FORMA INFORMATION
(In thousands, except shares and per share amounts)
(Unaudited)
                   
The following table reconciles revenues, net to adjusted revenues:
 
Three Months Ended December 31, Year Ended December 31,
2016 2015 2016 2015
 
Revenues, net $ 514,953 $ 430,601 $ 1,831,546 $ 1,702,865
Merchant commissions   25,590     27,480     104,345     108,257  
Total adjusted revenues $ 489,363   $ 403,121   $ 1,727,201   $ 1,594,608  
 
                   
The following table reconciles net income to adjusted net income and adjusted net income per diluted share:
 
Three Months Ended December 31,   Year Ended December 31,

20162

2015

20162

2015
Net income $ 95,424 $ 52,830 $ 452,385 $ 362,431
 
Stock based compensation 13,921 45,735 63,946 90,122
Amortization of intangible assets 49,180 39,685 161,635 159,740
Amortization of premium on receivables 1,478 811 5,165 3,250
Amortization of deferred financing costs and discounts 2,014 1,754 7,582 7,049
Amortization of intangibles at equity method investment 2,560 2,261 10,093 10,665
Non recurring net gain at equity method investment - - (10,845 ) -
Impairment of equity method investment 36,065 40,000 36,065 40,000
       
Total pre-tax adjustments 105,218 130,246 273,641 310,826
 
Income tax impact of pre-tax adjustments at the effective tax rate3 (20,121 ) (22,874 )

1

(66,850 ) (80,632 )
       
Adjusted net income $ 180,521   $ 160,201   $ 659,176   $ 592,625  
Adjusted net income per diluted share $ 1.90 $ 1.70 $ 6.92 $ 6.30
 
Diluted shares 95,235 94,350 95,213 94,139
 
1 Effective tax rate utilized excludes the impact of a one time tax benefit recognized during the three months and year ended December 31, 2015 of approximately $0.8 million, as well as adjustments related to our equity method investment for all periods presented.
 
2 Reflects the impact of the Company's adoption of Accounting Standards Update 2016-09, Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting, to simplify several aspects of the accounting for share-based compensation, including the income tax consequences.
 
3Excludes the results of our equity method investment on our effective tax rate, as results from our equity method investment are reported within the Consolidated Income Statements on a post-tax basis and no tax-over-book outside basis differences related to our equity method investment reversed during 2016.
                   
Exhibit 2
Transaction Volume, Revenues and Adjusted Revenue, Per Transaction by Segment and by Product Category
(In millions except revenues, net per transaction and adjusted revenues per transaction)
(Unaudited)
                                     
The following table presents revenue and revenue per transaction, by segment.
 
Three Months Ended December 31, Year Ended December 31,
2016 2015 Change % Change 2016 2015 Change % Change
 

NORTH AMERICA

- Transactions2 501.5 522.3 (20.8 ) -4.0 % 1,718.7 1,667.5 51.2 3.1 %
- Revenues, net per transaction $ 0.66 $ 0.60 $ 0.05 9.1 % $ 0.74 $ 0.74 $ 0.01 0.7 %
- Revenues, net $ 328.6 $ 313.6 $ 14.9 4.8 % $ 1,279.1 $ 1,232.0 $ 47.1 3.8 %
 

INTERNATIONAL

- Transactions 274.4 45.8 228.6 499.0 % 507.8 183.9 323.9 176.2 %
- Revenues, net per transaction $ 0.68 $ 2.55 $ (1.87 ) -73.4 % $ 1.09 $ 2.56 $ (1.47 ) -57.5 %
- Revenues, net $ 186.4 $ 117.0 $ 69.4 59.3 % $ 552.4 $ 470.9 $ 81.5 17.3 %
                                     
 

FLEETCOR CONSOLIDATED REVENUES

- Transactions2 775.9 568.1 207.8 36.6 % 2,226.5 1,851.4 375.1 20.3 %
- Revenues, net per transaction $ 0.66 $ 0.76 $ (0.09 ) -12.4 % $ 0.82 $ 0.92 $ (0.10 ) -10.6 %
- Revenues, net $ 515.0 $ 430.6 $ 84.4 19.6 % $ 1,831.5 $ 1,702.9 $ 128.7 7.6 %
                                     
                                     
 

FLEETCOR CONSOLIDATED ADJUSTED REVENUES1

- Transactions2 775.9 568.1 207.8 36.6 % 2,226.5 1,851.4 375.1 20.3 %
- Adjusted revenues per transaction $ 0.63 $ 0.71 $ (0.08 ) -11.1 % $ 0.78 $ 0.86 $ (0.09 ) -9.9 %
- Adjusted revenues $ 489.4 $ 403.1 $ 86.2 21.4 % $ 1,727.2 $ 1,594.6 $ 132.6 8.3 %
                                     
 

1Adjusted revenues is a non-GAAP financial measure defined as revenues, net less merchant commissions.
The Company believes this measure is a more effective way to evaluate the Company's revenue performance.
Refer to Exhibit 1 for a reconciliation of revenues, net to adjusted revenues.

 

2Includes approximately 403 million and 429 million transactions for the three months ended December 31, 2016 and 2015,
respectively, and 1,327 million and 1,300 million for the years ended December 31, 2016 and 2015, respectively,
related to our SVS business acquired with Comdata in the fourth quarter of 2014.

                                     
The following table presents revenue and revenue per transaction, by product category.
 
Year Ended December 31,
2016 2015 Change % Change
 

FUEL CARDS

- Transactions 502.5 473.0 29.5 6.2 %
- Revenues, net per transaction $ 2.24 $ 2.36 $ (0.12 ) -5.1 %
- Revenues, net $ 1,124.2 $ 1,115.6 $ 8.7 0.8 %
 

GIFT

- Transactions 1,327.4 1,300.4 27.0 2.1 %
- Revenues, net per transaction $ 0.14 $ 0.13 $ 0.01 6.4 %
- Revenues, net $ 184.7 $ 170.1 $ 14.6 8.6 %
 

CORPORATE PAYMENTS

- Transactions 38.7 31.9 6.8 21.3 %
- Revenues, net per transaction $ 4.64 $ 5.09 $ (0.45 ) -8.8 %
- Revenues, net $ 179.6 $ 162.3 $ 17.3 10.6 %
 

TOLLS

- Transactions 326.7 12.4 314.2 2528.1 %
- Revenues, net per transaction $ 0.31 $ 0.75 $ (0.44 ) -58.1 %
- Revenues, net $ 102.7 $ 9.3 $ 93.4 1000.4 %
 

LODGING

- Transactions 13.3 13.7 (0.4 ) -3.1 %
- Revenues, net per transaction $ 7.58 $ 6.70 $ 0.89 13.2 %
- Revenues, net $ 100.7 $ 91.8 $ 8.9 9.7 %
 

OTHER3

- Transactions 18.0 20.0 (2.0 ) -9.9 %
- Revenues, net per transaction $ 7.76 $ 7.70 $ 0.05 0.7 %
- Revenues, net $ 139.6 $ 153.8 $ (14.2 ) -9.3 %
                 
 

FLEETCOR CONSOLIDATED REVENUES

- Transactions 2,226.5 1,851.4 375.1 20.3 %
- Revenues, net per transaction $ 0.82 $ 0.92 $ (0.10 ) -10.6 %
- Revenues, net $ 1,831.5 $ 1,702.9 $ 128.7 7.6 %
                 
 

3'Other' includes telematics, maintenance and transportation related businesses.

 
       
Exhibit 3

Revenues by Geography, Product and Source

(In millions)
(Unaudited)
                 

Revenue by Geography*

Year Ended December 31,
2016 % 2015 %
 
US $ 1,279 70% $ 1,232 72%
UK 229 13% 248 15%
Brazil 168 9% 85 5%
Other   156 8%   138 8%
 
Consolidated Revenues, net $ 1,832 100% $ 1,703 100%
 

* Columns may not calculate due to impact of rounding.

 

Revenue by Product Category*

Year Ended December 31,
2016 % 2015 %
 
Fuel Cards $ 1,124 61% $ 1,116 66%
Gift 185 10% 170 10%
Corporate Payments 180 10% 162 10%
Tolls 103 6% 9 1%
Lodging 101 5% 92 5%
Other   140 8%   154 9%
 
Consolidated Revenues, net $ 1,832 100% $ 1,703 100%
 

* Columns may not calculate due to impact of rounding.

 

Major Sources of Revenue*

Year Ended December 31,
2016 % 2015 %
Customer
Processing and Program Fees $ 904 49% $ 776 46%
Late Fees and Finance Charges 113 6% 110 6%
Other   30 2%   28 2%
$ 1,048 57% $ 914 54%
Merchant

Interchange (Fuel)1

$

278

15%

$

294

17%

Interchange (NonFuel)2

173

9%

162

10%

Tied to Fuel-Price Spreads 200 11% 211 12%
Program Fees   133 7%   123 7%
$ 784 43% $ 789 46%
       
Consolidated Revenues, net $ 1,832 100% $ 1,703 100%
 

1 Interchange revenue directly influenced by the absolute price of fuel and other interchange related to fuel products

2 Interchange revenue related to nonfuel products

* Columns may not calculate due to impact of rounding.

 
       
Exhibit 4
Segment Results
(In thousands)
(Unaudited)
 
Three Months Ended December 31, Year Ended December 31,
2016 2015 2016 2015
Revenues, net:
North America $ 328,560 $ 313,624 $ 1,279,102 $ 1,231,957
International   186,393   116,977   552,444   470,908
$ 514,953 $ 430,601 $ 1,831,546 $ 1,702,865
 
Operating income:
North America $ 139,192 $ 90,274 $ 506,413 $ 442,052
International   76,783   55,875   247,740   225,482
$ 215,975 $ 146,149 $ 754,153 $ 667,534
 
Depreciation and amortization:
North America $ 33,302 $ 31,663 $ 129,653 $ 127,863
International   28,106   16,355   73,603   65,590
$ 61,408 $ 48,018 $ 203,256 $ 193,453
 
Capital expenditures:
North America $ 10,499 $ 5,373 $ 39,000 $ 19,883
International   6,635   6,976   20,011   21,992
$ 17,134 $ 12,349 $ 59,011 $ 41,875
 
   
Exhibit 5
RECONCILIATION OF NON-GAAP GUIDANCE MEASURES
(In millions, except per share amounts)
(Unaudited)
         

The following table reconciles 2017 financial guidance for net income to adjusted net income and adjusted net income per diluted share,
at both ends of the range:

2017 GUIDANCE
Low* High*
Net income $550 $ 570
Net income per diluted share $ 5.78 $ 5.98
 
Stock based compensation 76 76
Amortization of intangible assets, premium on receivables, deferred financing costs and discounts 221 221
Amortization of intangibles at equity method investment 10 10
   
Total pre-tax adjustments 308 308
 
Income tax impact of pre-tax adjustments at the effective tax rate** (88 ) (88 )
   
Adjusted net income $ 770   $ 790  
Adjusted net income per diluted share $ 8.10 $ 8.30
 
Diluted shares 95 95
 
* Columns may not calculate due to impact of rounding.

** Excludes the results of our equity method investment on our effective tax rate, as results from our equity method investment are reported
within the Consolidated Income Statements on a post-tax basis and no tax-over-book outside basis differences related to our equity method
investment are expected to reverse during 2017.

         

The following table reconciles first quarter 2017 financial guidance for net income to adjusted net income and adjusted net income per diluted
share, at both ends of the range:

Q1 2017 GUIDANCE
Low* High*
Net income $ 118 $ 124
Net income per diluted share $ 1.24 $ 1.30
 
Stock based compensation 19 19
Amortization of intangible assets, premium on receivables, deferred financing costs and discounts 55 55
Amortization of intangibles at equity method investment 3 3
   
Total pre-tax adjustments 77 77
 
Income tax impact of pre-tax adjustments at the effective tax rate** (22 ) (22 )
   
Adjusted net income $ 173   $ 179  
Adjusted net income per diluted share $ 1.82 $ 1.88
 
Diluted shares 95 95
 
* Columns may not calculate due to impact of rounding.
** Excludes the results of our equity method investment on our effective tax rate, as results from our equity method investment are reported within the Consolidated Income Statements on a post-tax basis and no tax-over-book outside basis differences related to our equity method investment are expected to reverse during Q1 2017.
 

Contacts

FleetCor
Investor Relations
770-729-2017
investor@fleetcor.com

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