Company Quick10K Filing
FleetCor
Price295.14 EPS11
Shares91 P/E28
MCap26,717 P/FCF34
Net Debt3,007 EBIT1,081
TEV29,723 TEV/EBIT27
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-10
10-Q 2020-03-31 Filed 2020-05-11
10-K 2019-12-31 Filed 2020-03-02
10-Q 2019-09-30 Filed 2019-11-12
10-Q 2019-06-30 Filed 2019-08-09
10-Q 2019-03-31 Filed 2019-05-10
10-K 2018-12-31 Filed 2019-03-01
10-Q 2018-09-30 Filed 2018-11-08
10-Q 2018-06-30 Filed 2018-08-09
10-Q 2018-03-31 Filed 2018-05-10
10-K 2017-12-31 Filed 2018-03-01
10-Q 2017-09-30 Filed 2017-11-09
10-Q 2017-06-30 Filed 2017-08-08
10-Q 2017-03-31 Filed 2017-05-09
10-K 2016-12-31 Filed 2017-03-01
10-Q 2016-09-30 Filed 2016-11-09
10-Q 2016-06-30 Filed 2016-08-09
10-Q 2016-03-31 Filed 2016-05-09
10-K 2015-12-31 Filed 2016-02-29
10-Q 2015-09-30 Filed 2015-11-09
10-Q 2015-06-30 Filed 2015-08-10
10-Q 2015-03-31 Filed 2015-05-11
10-K 2014-12-31 Filed 2015-03-02
10-Q 2014-09-30 Filed 2014-11-10
10-Q 2014-06-30 Filed 2014-08-06
10-Q 2014-03-31 Filed 2014-05-12
10-K 2013-12-31 Filed 2014-03-03
10-Q 2013-09-30 Filed 2013-11-08
10-Q 2013-06-30 Filed 2013-08-07
10-Q 2013-03-31 Filed 2013-05-10
10-K 2012-12-31 Filed 2013-03-01
10-Q 2012-09-30 Filed 2012-11-09
10-Q 2012-06-30 Filed 2012-08-09
10-Q 2012-03-31 Filed 2012-05-10
10-K 2011-12-31 Filed 2012-02-29
10-Q 2011-09-30 Filed 2011-11-14
10-Q 2011-06-30 Filed 2011-08-15
10-Q 2011-03-31 Filed 2011-05-16
10-K 2010-12-31 Filed 2011-03-25
8-K 2020-08-06 Officers, Exhibits
8-K 2020-08-06 Earnings, Regulation FD, Exhibits
8-K 2020-06-11
8-K 2020-05-07
8-K 2020-03-16
8-K 2020-03-02
8-K 2020-02-06
8-K 2019-12-19
8-K 2019-11-06
8-K 2019-09-04
8-K 2019-08-06
8-K 2019-08-06
8-K 2019-06-12
8-K 2019-05-07
8-K 2019-02-06
8-K 2018-12-14
8-K 2018-10-30
8-K 2018-08-02
8-K 2018-06-06
8-K 2018-05-03
8-K 2018-02-08
8-K 2018-02-07
8-K 2018-01-25

FLT 10Q Quarterly Report

Part I - Financial Information
Item 1. Financial Statements
Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3.Quantitative and Qualitative Disclosures About Market Risk
Item 4.Controls and Procedures
Part II - Other Information
Item 1.Legal Proceedings
Item 1A.Risk Factors
Item 2.Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.Defaults Upon Senior Securities
Item 4.Mine Safety Disclosures
Item 5.Other Information
Item 6. Exhibits
EX-31.1 ex311q22020.htm
EX-31.2 ex312q22020.htm
EX-32.1 ex321q22020.htm
EX-32.2 ex322q22020.htm

FleetCor Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
151296302012201420172020
Assets, Equity
0.70.60.40.30.10.02012201420172020
Rev, G Profit, Net Income
2.31.40.4-0.5-1.5-2.42012201420172020
Ops, Inv, Fin

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Table of Contents

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 __________________________________________________________
FORM 10-Q
 _________________________________________________________________________________________________
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2020
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from                      to                     
Commission file number: 001-35004
 __________________________________________________________
FLEETCOR Technologies, Inc.
(Exact name of registrant as specified in its charter)
 __________________________________________________________
Delaware 72-1074903
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
3280 Peachtree RoadAtlantaGeorgia30305
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (770449-0479
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common StockFLTNYSE
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No  
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes      No  
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.   
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes      No  
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.
Class Outstanding at July 31, 2020
Common Stock, $0.001 par value 84,051,940



Table of Contents

FLEETCOR TECHNOLOGIES, INC. AND SUBSIDIARIES
FORM 10-Q
For the Three and Six Months Ended June 30, 2020
INDEX
 
  Page
PART I—FINANCIAL INFORMATION
Item 1.
Item 2.
Item 3.
Item 4.
PART II—OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.

i

Table of Contents

PART I—FINANCIAL INFORMATION
Item 1. Financial Statements
FLEETCOR Technologies, Inc. and Subsidiaries
Consolidated Balance Sheets
(In Thousands, Except Share and Par Value Amounts)
June 30, 2020December 31, 2019
(Unaudited)
Assets
Current assets:
Cash and cash equivalents$765,789  $1,271,494  
Restricted cash425,557  403,743  
Accounts and other receivables (less allowance for credit losses of $88,364 at June 30, 2020 and $70,890 at December 31, 2019)
1,279,343  1,568,961  
Securitized accounts receivable—restricted for securitization investors654,000  970,973  
Prepaid expenses and other current assets339,380  403,400  
Total current assets3,464,069  4,618,571  
Property and equipment, net185,599  199,825  
Goodwill4,582,250  4,833,047  
Other intangibles, net2,121,304  2,341,882  
Investments61,773  30,440  
Other assets211,722  224,776  
Total assets$10,626,717  $12,248,541  
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable$1,096,303  $1,249,586  
Accrued expenses244,068  275,511  
Customer deposits887,601  1,007,631  
Securitization facility654,000  970,973  
Current portion of notes payable and lines of credit591,178  775,865  
Other current liabilities153,818  183,502  
Total current liabilities3,626,968  4,463,068  
Notes payable and other obligations, less current portion3,202,463  3,289,947  
Deferred income taxes501,231  519,980  
Other noncurrent liabilities329,621  263,930  
Total noncurrent liabilities4,033,315  4,073,857  
Commitments and contingencies (Note 12)
Stockholders’ equity:
Common stock, $0.001 par value; 475,000,000 shares authorized; 125,650,513 shares issued and 84,049,888 shares outstanding at June 30, 2020; and 124,626,786 shares issued and 85,342,156 shares outstanding at December 31, 2019
126  124  
Additional paid-in capital2,690,966  2,494,721  
Retained earnings5,018,277  4,712,729  
Accumulated other comprehensive loss(1,581,975) (972,465) 
Less treasury stock, 41,600,625 shares at June 30, 2020 and 39,284,630 shares at December 31, 2019
(3,160,960) (2,523,493) 
Total stockholders’ equity2,966,434  3,711,616  
Total liabilities and stockholders’ equity$10,626,717  $12,248,541  

See accompanying notes to unaudited consolidated financial statements.

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FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Income
(In Thousands, Except Per Share Amounts)
 
 Three Months Ended
June 30,
Six Months Ended
June 30,
 2020201920202019
Revenues, net$525,146  $647,094  $1,186,239  $1,268,919  
Expenses:
Processing121,290  120,458  354,993  249,572  
Selling42,374  51,856  98,233  101,117  
General and administrative86,739  106,784  192,849  199,568  
Depreciation and amortization62,162  70,908  126,638  138,353  
Other operating, net(230) (229) (268) (1,184) 
Operating income212,811  297,317  413,794  581,493  
Investment (gain) loss(33,709)   (31,338) 15,660  
Other expense (income), net2,480  528  (6,886) 748  
Interest expense, net32,412  39,529  68,091  78,584  
Total other expense 1,183  40,057  29,867  94,992  
Income before income taxes211,628  257,260  383,927  486,501  
Provision for (benefit from) income taxes53,140  (4,391) 78,379  52,743  
Net income$158,488  $261,651  $305,548  $433,758  
Basic earnings per share$1.89  $3.03  $3.62  $5.03  
Diluted earnings per share$1.83  $2.90  $3.50  $4.84  
Weighted average shares outstanding:
Basic shares83,895  86,360  84,399  86,159  
Diluted shares86,570  90,131  87,380  89,694  

See accompanying notes to unaudited consolidated financial statements.


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FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Comprehensive Income (Loss)
(In Thousands)
 
 Three Months Ended
June 30,
Six Months Ended
June 30,
 2020201920202019
Net income$158,488  $261,651  $305,548  $433,758  
Other comprehensive income (loss):
Foreign currency translation gains (losses), net of tax8,257  31,662  (566,861) 32,035  
Net change in derivative contracts, net of tax1,892  (25,667) (42,649) (46,374) 
Total other comprehensive income (loss)10,149  5,995  (609,510) (14,339) 
Total comprehensive income (loss)$168,637  $267,646  $(303,962) $419,419  
See accompanying notes to unaudited consolidated financial statements.

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FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Stockholders’ Equity
(In Thousands)
 
Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Treasury
Stock
Total
Balance at December 31, 2019$124  $2,494,721  $4,712,729  $(972,465) $(2,523,493) $3,711,616  
Net income—  —  147,060  —  —  147,060  
Other comprehensive loss, net of tax—  —  —  (619,659) —  (619,659) 
Acquisition of common stock—  75,000  —  —  (605,237) (530,237) 
Share-based compensation expense—  14,175  —  —  —  14,175  
Issuance of common stock1  73,273  —  —  —  73,274  
Balance at March 31, 2020125  2,657,169  4,859,789  (1,592,124) (3,128,730) 2,796,229  
Net income—  —  158,488  —  —  158,488  
Other comprehensive gain, net of tax—  —  —  10,149  —  10,149  
Acquisition of common stock—  —  —  —  (32,230) (32,230) 
Share-based compensation—  8,989  —  —  —  8,989  
Issuance of common stock1  24,808  —  —  —  24,809  
Balance at June 30, 2020$126  $2,690,966  $5,018,277  $(1,581,975) $(3,160,960) $2,966,434  

Common
Stock
Additional
Paid-In
Capital
Retained
Earnings
Accumulated
Other
Comprehensive
Loss
Treasury
Stock
Total
Balance at December 31, 2018$123  $2,306,843  $3,817,656  $(913,858) $(1,870,584) $3,340,180  
Net income—  —  172,107  —  —  172,107  
Other comprehensive loss, net of tax—  —  —  (20,334) —  (20,334) 
Acquisition of common stock—  33,000  —  —  (36,322) (3,322) 
Share-based compensation expense—  12,541  —  —  —  12,541  
Issuance of common stock—  29,795  —  —  —  29,795  
Balance at March 31, 2019123  2,382,179  3,989,763  (934,192) (1,906,906) 3,530,967  
Net income—  —  261,651  —  —  261,651  
Other comprehensive income, net of tax —  —  —  5,995  —  5,995  
Acquisition of common stock—  —  —  —  (702) (702) 
Share-based compensation —  18,306  —  —  —  18,306  
Issuance of common stock—  27,155  —  —  —  27,155  
Balance at June 30, 2019$123  $2,427,640  $4,251,414  $(928,197) $(1,907,608) $3,843,372  

See accompanying notes to unaudited consolidated financial statements.

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FLEETCOR Technologies, Inc. and Subsidiaries
Unaudited Consolidated Statements of Cash Flows
(In Thousands)
 Six Months Ended
June 30,
 20202019
Operating activities
Net income$305,548  $433,758  
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation31,607  30,640  
Stock-based compensation23,164  30,847  
Provision for losses on accounts and other receivables139,000  40,142  
Amortization of deferred financing costs and discounts2,886  2,428  
Amortization of intangible assets and premium on receivables95,031  107,713  
Deferred income taxes(8,730) (64,883) 
Investment (gain) loss(31,338) 15,660  
Other non-cash operating income(268) (1,579) 
Changes in operating assets and liabilities (net of acquisitions/dispositions):
Accounts and other receivables359,685  (418,806) 
Prepaid expenses and other current assets46,216  8,154  
Other assets828  (17,286) 
Accounts payable, accrued expenses and customer deposits(161,461) 383,233  
Net cash provided by operating activities802,168  550,021  
Investing activities
Acquisitions, net of cash acquired(492) (250,926) 
Purchases of property and equipment(36,870) (31,975) 
Net cash used in investing activities(37,362) (282,901) 
Financing activities
Proceeds from issuance of common stock92,977  56,950  
Repurchase of common stock(557,361) (4,024) 
(Payments) borrowings on securitization facility, net(316,973) 88,000  
Deferred financing costs paid and debt discount(974) (352) 
Principal payments on notes payable(92,910) (64,875) 
Borrowings from revolver 573,500  765,709  
Payments on revolver (726,644) (1,027,468) 
(Payments) borrowings on swing line of credit, net(3,879) 34,639  
Other(169) (125) 
Net cash used in financing activities(1,032,433) (151,546) 
Effect of foreign currency exchange rates on cash(216,264) 8,159  
Net (decrease) increase in cash and cash equivalents and restricted cash(483,891) 123,733  
Cash and cash equivalents and restricted cash, beginning of period1,675,237  1,364,893  
Cash and cash equivalents and restricted cash, end of period$1,191,346  $1,488,626  
Supplemental cash flow information
Cash paid for interest$68,454  $90,559  
Cash paid for income taxes$56,790  $100,396  

See accompanying notes to unaudited consolidated financial statements.

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FLEETCOR Technologies, Inc. and Subsidiaries
Notes to Unaudited Consolidated Financial Statements
June 30, 2020
1. Summary of Significant Accounting Policies
Basis of Presentation
Throughout this Current Report on Form 10-Q, the terms “our,” “we,” “us,” and the “Company” refers to FLEETCOR Technologies, Inc. and its subsidiaries. The Company prepared the accompanying unaudited interim consolidated financial statements in accordance with Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by accounting principles generally accepted in the United States (“GAAP”). The unaudited interim consolidated financial statements reflect all adjustments considered necessary for fair presentation. These adjustments consist of normal recurring accruals and estimates that impact the carrying value of assets and liabilities. Actual results may differ from these estimates.
The unaudited interim consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019.
Use of estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting periods. Future events and their effects cannot be predicted with certainty; accordingly, accounting estimates require the exercise of judgment. These financial statements were prepared using information reasonably available as of June 30, 2020 and through the date of this Report. The accounting estimates used in the preparation of the Company’s consolidated financial statements may change as new events occur, as more experience is acquired, as additional information is obtained and as the Company’s operating environment changes. Actual results may differ from these estimates due to the uncertainty around the magnitude and duration of the COVID-19 pandemic, as well as other factors.
Foreign Currency Translation  
Assets and liabilities of foreign subsidiaries are translated into U.S. dollars at the rates of exchange in effect at period-end. The related translation adjustments are recorded to accumulated other comprehensive income (loss). Income and expenses are translated at the average monthly rates of exchange in effect during the period. Gains and losses from foreign currency transactions of these subsidiaries are included in net income.
The Company recognized the following foreign exchange gains/losses on long-term intra-entity transactions, net of tax, and foreign exchange gains/losses within the Unaudited Consolidated Statements of Comprehensive Income (Loss) as follows (in millions):
Three Months Ended
June 30,
Six Months Ended
June 30,
2020201920202019
Long-term intra-entity gain (loss)$21.4  $43.7  185.5  (33.3) 
Foreign exchange loss(2.4) (0.3) (0.5) (0.3) 
Derivatives
The Company uses derivatives to minimize its exposures related to changes in interest rates and to facilitate cross-currency corporate payments by writing derivatives to foreign currency payment customers.
The Company is exposed to the risk of changing interest rates because its borrowings are subject to variable interest rates. In order to mitigate this risk, the Company utilizes derivative instruments. Interest rate swap contracts designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. The Company hedges a portion of its variable rate debt utilizing derivatives designated as cash flow hedges.
Changes in the fair value of derivatives that are designated and qualify as cash flow hedges are recorded in other assets or other noncurrent liabilities and offset against accumulated other comprehensive income/loss, net of tax. Derivative fair value changes that are recorded in accumulated other comprehensive income/loss are reclassified to earnings in the same period or periods that the hedged item affects earnings, to the extent the derivative is effective in offsetting the change in cash flows attributable to the
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hedged risk. The portions of the change in fair value that are either considered ineffective or are excluded from the measure of effectiveness are recognized immediately within earnings.
In the Company's cross-border payments business, the Company writes foreign currency forward and option contracts for its customers to facilitate future payments. The duration of these derivative contracts at inception is generally less than one year. The Company aggregates its foreign exchange exposures arising from customer contracts, including forwards, options and spot exchanges of currency, as necessary, and economically hedges the net currency risks by entering into offsetting derivatives with established financial institution counterparties. The gain or loss on changes in the fair value of derivatives are recorded in revenues, net in the Unaudited Consolidated Statements of Income.
The Company recognizes all derivative assets, net in prepaid expense and other current assets and all derivative liabilities, net in other current liabilities, after netting at the customer level, as right of offset exists, in its Unaudited Consolidated Balance Sheets at their fair value. All cash flows associated with derivatives are included in cash flows from operating activities in the Consolidated Statements of Cash Flows. Refer to Note 13.
Cash, Cash Equivalents, and Restricted Cash
Cash and cash equivalents consist of cash on hand and highly liquid investments with original maturities of three months or less. Restricted cash represents customer deposits repayable on demand.
Financial Instruments-Credit Losses
The Company adopted ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments", on January 1, 2020, under which the Current Expected Credit Loss methodology for measurement of credit losses on financial assets measured at amortized cost basis, replaces the previous incurred loss impairment methodology. The Company’s financial assets subject to credit losses are primarily trade receivables. The Company utilizes a combination of aging and loss-rate methods to develop an estimate of current expected credit losses, depending on the nature and risk profile of the underlying asset pool, based on product, size of customer and historical losses. Expected credit losses are estimated based upon an assessment of risk characteristics, historical payment experience, and the age of outstanding receivables, adjusted for forward-looking economic conditions. The allowances for remaining financial assets measured at amortized cost basis are evaluated based on underlying financial condition, credit history, and current and forecast economic conditions. The estimation process for expected credit losses includes consideration of qualitative and quantitative risk factors associated with the age of asset balances, expected timing of payment, contract terms and conditions, changes in specific customer risk profiles or mix of customers, geographic risk, economic trends and relevant environmental factors.
Revenue
The Company provides payment solutions to our business, merchant, consumer and payment network customers. Our payment solutions are primarily focused on specific commercial spend categories, including fuel, lodging, tolls, and general corporate payments, as well as gift card solutions (stored value cards and e-cards). The Company provides products that help businesses of all sizes control, simplify and secure payment of various domestic and cross-border payables using specialized payment products. The Company also provides other payment solutions for fleet maintenance, employee benefits and long haul transportation-related services. Revenues from contracts with customers, within the scope of ASC 606, represent approximately 80% of total consolidated revenues, net, for the three and six months ended June 30, 2020. The Company accounts for remaining revenues comprised of late fees and finance charges, in jurisdictions where permitted under local regulations, primarily in the U.S. and Canada in accordance with ASC 310, "Receivables". Such fees are recognized net of a provision for estimated uncollectible amounts, at the time the fees and finance charges are assessed and services are provided. The Company also writes foreign currency forward and options contracts for its customers to facilitate future payments in foreign currencies, and recognizes revenue in accordance with authoritative fair value and derivatives accounting (ASC 815, "Derivatives").
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Disaggregation of Revenues
The Company provides its services to customers across different payment solutions and geographies. Revenue by product (in millions) for the three and six months ended June 30 was as follows:
Revenues, net by Product*1
Three Months Ended June 30,Six Months Ended June 30,
2020%2019%2020%2019%
Fuel$250  47 %$295  46 %542  46 %578  46 %
Corporate Payments93  18