Business Wire | Nov 5, 2020 04:06PM EST

FLEETCOR Reports Third Quarter 2020 Financial Results

Nov. 05, 2020

ATLANTA--(BUSINESS WIRE)--Nov. 05, 2020--FLEETCOR Technologies, Inc. (NYSE: FLT), a leading global business payments company, today reported financial results for its third quarter of 2020.

"We're pleased that our third quarter volumes stepped up sequentially in every line of business, driven primarily from increasing existing client usage. New sales performance also improved dramatically in the quarter, returning to 80% of prior period levels," said Ron Clarke, chairman and chief executive officer, FLEETCOR Technologies, Inc. "Client retention and credit trends were also very encouraging in the quarter and better than last year."

"We're progressing towards a first quarter, 2021 closing of our AFEX cross border acquisition that we announced in September, and we have a couple of additional active acquisition opportunities in and around the Corporate Payments space that we're currently working," concluded Clarke.

Financial Results for Third Quarter of 2020:

GAAP Results

* Total revenues decreased 14% to $585.3 million in the third quarter of 2020, compared to $681.0 million in the third quarter of 2019. * Net income decreased 16% to $188.8 million in the third quarter of 2020, compared to $225.8 million in the third quarter of 2019. * Net income per diluted share decreased 12% to $2.19 in the third quarter of 2020, compared to $2.49 per diluted share in the third quarter of 2019.

Non-GAAP Results1

* Adjusted net income1 decreased 14% to $241.9 million in the third quarter of 2020, compared to $280.6 million in the third quarter of 2019. * Adjusted net income per diluted share1 decreased 10% to $2.80 in the third quarter of 2020, compared to $3.10 per diluted share in the third quarter of 2019.

Fiscal-Year 2020 Outlook:

"While business conditions have improved globally, the sustainability of recoveries across our markets remains uncertain, therefore we have not reinstated our full-year 2020 outlook," said Charles Freund, chief financial officer, FLEETCOR Technologies, Inc. We expect to manage expenses 10%-12% below last year in order to balance current profitability with investment for future growth."

_______________________________________

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

Share Repurchase Program

The Company's board of directors authorized an increase in the size of the previously announced share repurchase program by an additional $1.0 billion of common stock. With the increase, and giving effect to the Company's previous repurchases, the Company may repurchase up to $1.056 billion of its common stock at any time prior to February 1, 2023.

Conference Call

The Company will host a conference call to discuss third quarter 2020 financial results today at 5:30 pm ET. Hosting the call will be Ron Clarke, chief executive officer, Charles Freund, chief financial officer and Jim Eglseder, SVP investor relations. The conference ID is 21971417, and the conference call can be accessed live over the phone by dialing (800) 920-3359, or for international callers (303) 223-0113. 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 replay will be available until Thursday, November 12, 2020. The call will be webcast live from the Company's investor relations website at http://investor.fleetcor.com. Prior to the conference call, the Company will post supplemental financial information that will be discussed during the call and live webcast.

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, assumptions, 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.

These forward-looking statements are not a guarantee of performance, and you should not place undue reliance on such statements. We have based these forward-looking statements largely on preliminary information, internal estimates and management assumptions, expectations and plans about future conditions, events and results. Forward-looking statements are subject many uncertainties and other variable circumstances, such as the impact of global, political, market, health, and other conditions, including the impact of the coronavirus (COVID-19); regulatory measures or voluntary actions, including social distancing, shelter-in-place, shutdowns of nonessential businesses and similar measures imposed or undertaken in an effort to combat the spread of the coronavirus (COVID-19); adverse outcomes with respect to current and future legal proceedings, including without limitation, the FTC lawsuit, or actions of governmental or quasi-governmental bodies or standards or industry organizations with respect to our payment cards; delays or failures associated with implication of, or adaption to, new technology, fuel price and spread volatility; 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 complete, or delays in completing, anticipated new partnerships and customer arrangements or acquisitions and to successfully integrate or otherwise achieve anticipated benefits from such partnerships, customer arrangements or acquired businesses; failure to successfully expand and manage our business internationally, other risks related to our international operations, including the potential impact to our business as a result of the United Kingdom's referendum to leave the European Union, the impact of foreign exchange rates on operations, revenue and income; the effects of general economic and political conditions on fueling patterns and the commercial activities of fleets; risks related to litigation; the impact of new tax regulations and the resolution of tax contingencies resulting in additional tax liabilities; 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, 2019 filed with the Securities and Exchange Commission on March 2, 2020 and subsequent filings made by us. These factors could cause our actual results and experience to differ materially from any forward-looking statement. The forward-looking statements included in this presentation are made only as of the date hereof. The forward-looking statements included in this press release are made only as of the date hereof. FLEETCOR does not undertake, and specifically disclaims, any obligation to update any such statements as a result of new information, future events or developments, except as specifically stated or to the extent required by law. You may get FLEETCOR's Securities and Exchange Commission ("SEC") filings for free by visiting the SEC web site at www.sec.gov.

About Non-GAAP Financial Measures

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, amortization of the premium recognized on the purchase of receivables, and our proportionate share of amortization of intangible assets at our equity method investment, (c) integration and deal related costs, and (d) other non-recurring items, including unusual credit losses occurring due largely to COVID-19, the impact of discrete tax items, impairment charges, asset write-offs, restructuring costs, gains due to disposition of assets and a business, loss on extinguishment of debt, and legal settlements. We calculate adjusted net income to eliminate the effect of items that we do not consider indicative of our core operating performance. Adjusted net income is a supplemental measure of operating performance that does not represent and should not be considered as an alternative to 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 share 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 that integration and deal related costs and one-time non-recurring expenses, gains, losses, and impairment charges do not necessarily reflect how our investments and business are performing. We adjust net income for the tax effect of each of these non-tax items. Reconciliations of GAAP results to non-GAAP results are provided in the attached exhibit 1. A reconciliation of GAAP to non-GAAP product revenue organic growth calculation is provided in the attached exhibit 5.

Management uses adjusted net income:

* as measurement of operating performance because it assists 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 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 Technologies (NYSE: FLT) is a leading global business payments company that simplifies the way businesses manage and pay their expenses. The FLEETCOR portfolio of brands help companies automate, secure, digitize and control payments on behalf of, their employees and suppliers. FLEETCOR serves businesses, partners and merchants in North America, Latin America, Europe, and Asia Pacific. For more information, please visit www.FLEETCOR.com.

FLEETCOR Technologies, Inc. and SubsidiariesUnaudited Consolidated Statements of Income(In thousands, except per share amounts) Three Months Ended Nine Months Ended September September 30, 30,

2020 2019 2020 2019

Revenues, net $ 585,283 $ 681,048 $ 1,771,522 $ 1,949,967

Expenses:Processing 119,856 135,016 474,849 384,588

Selling 46,762 51,790 144,995 152,907

General and 90,868 98,050 283,717 297,618 administrativeDepreciation and 63,479 67,347 190,117 205,700 amortizationOther operating, net (214 ) (296 ) (482 ) (1,480 )

Operating income 264,532 329,141 678,326 910,634

Investment loss 1,330 - (30,008 ) 15,660 (gain)Other (income) (3,591 ) (120 ) (10,477 ) 628 expense, netInterest expense, 31,383 36,504 99,474 115,088 netTotal other expense 29,122 36,384 58,989 131,376

Income before income 235,410 292,757 619,337 779,258 taxesProvision for income 46,593 66,952 124,972 119,695 taxesNet income $ 188,817 $ 225,805 $ 494,365 $ 659,563

Basic earnings per $ 2.26 $ 2.61 $ 5.87 $ 7.64 shareDiluted earnings per $ 2.19 $ 2.49 $ 5.68 $ 7.33 share Weighted averageshares outstanding:Basic shares 83,719 86,662 84,170 86,332

Diluted shares 86,273 90,522 87,006 89,976

FLEETCOR Technologies, Inc. and SubsidiariesConsolidated Balance Sheets(In thousands, except share and par value amounts)September 30, 2020December 31, 2019(Unaudited)AssetsCurrent assets:Cash and cash equivalents$

788,854

$

1,271,494

Restricted cash582,006

403,743

Accounts and other receivables (less allowance for credit losses of $83,882 at September 30, 2020 and $70,890 at December 31, 2019, respectively)1,552,695

1,568,961

Securitized accounts receivable - restricted for securitization investors688,000

970,973

Prepaid expenses and other current assets359,461

403,400

Total current assets3,971,016

4,618,571

Property and equipment, net189,953

199,825

Goodwill4,613,597

4,833,047

Other intangibles, net2,115,189

2,341,882

Investments7,480

30,440

Other assets196,764

224,776

Total assets$

11,093,999

$

12,248,541

Liabilities and Stockholders' EquityCurrent liabilities:Accounts payable$

1,297,236

$

1,249,586

Accrued expenses299,396

275,511

Customer deposits1,123,974

1,007,631

Securitization facility688,000

970,973

Current portion of notes payable and lines of credit645,769

775,865

Other current liabilities141,432

183,502

Total current liabilities4,195,807

4,463,068

Notes payable and other obligations, less current portion3,158,810

3,289,947

Deferred income taxes506,102

519,980

Other noncurrent liabilities295,530

263,930

Total noncurrent liabilities3,960,442

4,073,857

Commitments and contingenciesStockholders' equity:Common stock, $0.001 par value; 475,000,000 shares authorized; 125,997,304 shares issued and 83,396,765 shares outstanding at September 30, 2020; and 124,626,786 shares issued and 85,342,156 shares outstanding at December 31, 2019126

124

Additional paid-in capital2,713,022

2,494,721

Retained earnings5,207,094

4,712,729

Accumulated other comprehensive loss(1,583,136)

(972,465)

Less treasury stock, 42,600,539 shares at September 30, 2020 and 39,284,630 shares at December 31, 2019(3,399,356)

(2,523,493)

Total stockholders' equity2,937,750

3,711,616

Total liabilities and stockholders' equity$

11,093,999

$

12,248,541

FLEETCOR Technologies, Inc. and SubsidiariesConsolidated Balance Sheets(In thousands, except share and par value amounts) September 30, December 31, 2020 2019 (Unaudited)Assets Current assets:Cash and cash equivalents $ 788,854 $ 1,271,494

Restricted cash 582,006 403,743

Accounts and other receivables (less allowancefor credit losses of $83,882 at September 30, 1,552,695 1,568,9612020 and $70,890 at December 31, 2019,respectively)Securitized accounts receivable - restricted for 688,000 970,973securitization investorsPrepaid expenses and other current assets 359,461 403,400

Total current assets 3,971,016 4,618,571

Property and equipment, net 189,953 199,825

Goodwill 4,613,597 4,833,047

Other intangibles, net 2,115,189 2,341,882

Investments 7,480 30,440

Other assets 196,764 224,776

Total assets $ 11,093,999 $ 12,248,541

Liabilities and Stockholders' Equity Current liabilities:Accounts payable $ 1,297,236 $ 1,249,586

Accrued expenses 299,396 275,511

Customer deposits 1,123,974 1,007,631

Securitization facility 688,000 970,973

Current portion of notes payable and lines of 645,769 775,865creditOther current liabilities 141,432 183,502

Total current liabilities 4,195,807 4,463,068

Notes payable and other obligations, less current 3,158,810 3,289,947portionDeferred income taxes 506,102 519,980

Other noncurrent liabilities 295,530 263,930

Total noncurrent liabilities 3,960,442 4,073,857

Commitments and contingencies Stockholders' equity:Common stock, $0.001 par value; 475,000,000shares authorized; 125,997,304 shares issued and83,396,765 shares outstanding at September 30, 126 1242020; and 124,626,786 shares issued and85,342,156 shares outstanding at December 31,2019Additional paid-in capital 2,713,022 2,494,721

Retained earnings 5,207,094 4,712,729

Accumulated other comprehensive loss (1,583,136) (972,465)

Less treasury stock, 42,600,539 shares at (3,399,356) (2,523,493)September 30, 2020 and 39,284,630 shares atDecember 31, 2019 Total stockholders' equity 2,937,750 3,711,616

Total liabilities and stockholders' equity $ 11,093,999 $ 12,248,541

FLEETCOR Technologies, Inc. and SubsidiariesUnaudited Consolidated Statements of Cash Flows(In thousands)Nine Months Ended September 30,

2020

2019

Operating activitiesNet income$

494,365

$

659,563

Adjustments to reconcile net income to net cash provided by operating activities:Depreciation48,150

46,393

Stock-based compensation35,069

46,120

Provision for losses on accounts and other receivables152,485

54,735

Amortization of deferred financing costs and discounts5,028

3,741

Amortization of intangible assets and premium on receivables141,967

159,307

Deferred income taxes(5,747

)

11,142

Investment (gain) loss(30,008

)

15,660

Other non-cash operating income(482

)

(1,778

)

Changes in operating assets and liabilities (net of acquisitions/dispositions):Accounts and other receivables49,690

(472,378

)

Prepaid expenses and other current assets26,105

(77,836

)

Other assets6,129

(26,578

)

Accounts payable, accrued expenses and customer deposits291,945

373,044

Net cash provided by operating activities1,214,696

791,135

Investing activitiesAcquisitions, net of cash acquired(72,557

)

(334,860

)

Purchases of property and equipment(55,019

)

(48,681

)

Proceeds from disposal of investment52,963

-

Net cash used in investing activities(74,613

)

(383,541

)

Financing activitiesProceeds from issuance of common stock95,780

117,627

Repurchase of common stock(788,409

)

(59,362

)

(Payments) borrowings on securitization facility, net(282,973

)

106,000

Deferred financing costs paid and debt discount(2,474

)

(2,421

)

Proceeds from issuance of notes payable-

700,000

Principal payments on notes payable(134,097

)

(97,313

)

Borrowings from revolver1,198,500

965,709

Payments on revolver(1,287,899

)

(1,992,296

)

(Payments) borrowings on swing line of credit, net(20,111

)

1,775

Other(244

)

(189

)

Net cash used in financing activities(1,221,927

)

(260,470

)

Effect of foreign currency exchange rates on cash(222,533

)

(46,140

)

Net (decrease) increase in cash and cash equivalents and restricted cash(304,377

)

100,984

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$

1,370,860

$

1,465,877

Supplemental cash flow informationCash paid for interest$

98,564

$

136,850

Cash paid for income taxes$

119,089

$

148,727

FLEETCOR Technologies, Inc. and SubsidiariesUnaudited Consolidated Statements of Cash Flows(In thousands) Nine Months Ended September 30,

2020 2019

Operating activitiesNet income $ 494,365 $ 659,563

Adjustments to reconcile net income to netcash provided by operating activities:Depreciation 48,150 46,393

Stock-based compensation 35,069 46,120

Provision for losses on accounts and other 152,485 54,735 receivablesAmortization of deferred financing costs and 5,028 3,741 discountsAmortization of intangible assets and premium 141,967 159,307 on receivablesDeferred income taxes (5,747 ) 11,142

Investment (gain) loss (30,008 ) 15,660

Other non-cash operating income (482 ) (1,778 )

Changes in operating assets and liabilities(net of acquisitions/dispositions):Accounts and other receivables 49,690 (472,378 )

Prepaid expenses and other current assets 26,105 (77,836 )

Other assets 6,129 (26,578 )

Accounts payable, accrued expenses and 291,945 373,044 customer depositsNet cash provided by operating activities 1,214,696 791,135

Investing activitiesAcquisitions, net of cash acquired (72,557 ) (334,860 )

Purchases of property and equipment (55,019 ) (48,681 )

Proceeds from disposal of investment 52,963 -

Net cash used in investing activities (74,613 ) (383,541 )

Financing activitiesProceeds from issuance of common stock 95,780 117,627

Repurchase of common stock (788,409 ) (59,362 )

(Payments) borrowings on securitization (282,973 ) 106,000 facility, netDeferred financing costs paid and debt (2,474 ) (2,421 )discountProceeds from issuance of notes payable - 700,000

Principal payments on notes payable (134,097 ) (97,313 )

Borrowings from revolver 1,198,500 965,709

Payments on revolver (1,287,899 ) (1,992,296 )

(Payments) borrowings on swing line of credit, (20,111 ) 1,775 netOther (244 ) (189 )

Net cash used in financing activities (1,221,927 ) (260,470 )

Effect of foreign currency exchange rates on (222,533 ) (46,140 )cash Net (decrease) increase in cash and cash (304,377 ) 100,984 equivalents and restricted cashCash and cash equivalents and restricted cash, 1,675,237 1,364,893 beginning of periodCash and cash equivalents and restricted cash, $ 1,370,860 $ 1,465,877 end of period Supplemental cash flow informationCash paid for interest $ 98,564 $ 136,850

Cash paid for income taxes $ 119,089 $ 148,727

Exhibit 1RECONCILIATION OF NON-GAAP MEASURES(In thousands, except shares and per share amounts)(Unaudited)The following table reconciles net income to adjusted net income and adjusted net income per diluted share:*Three Months Ended September 30,

Nine Months Ended September 30,

2020

2019

2020

2019

Net income$

188,817

$

225,805

$

494,365

$

659,563

Stock based compensation11,905

15,273

35,069

46,120

Amortization of intangible assets, premium on receivables, deferred financing costs and discounts49,078

52,907

146,995

163,048

Investment loss (gain)1,330

-

(30,008

)

15,660

Integration and deal related costs11,768

-

11,035

-

Restructuring and related costs185

-

4,912

-

Legal settlements/litigation2,048

-

(2,989

)

3,474

Write-off of customer receivable2-

-

90,058

-

Total pre-tax adjustments66,314

68,180

255,072

228,302

Income tax impact of pre-tax adjustments at the effective tax rate3(13,196

)

(15,177

)

(55,429

)

(49,023

)

Impact of discrete tax item4-

1,782

9,848

(63,098

)

Adjusted net income$

241,935

$

280,590

$

703,856

$

775,744

Adjusted net income per diluted share$

2.80

$

3.10

$

8.09

$

8.62

Diluted shares86,273

90,522

87,006

89,976

1 Beginning in the first quarter of 2020, the Company included integration and deal related costs in its definition to calculate adjusted net income and adjusted net income per diluted share. Prior period amounts were approximately $1.0 million and $3.8 million for the three and nine months ended September 30, 2019, respectively, which we consider immaterial.

2 Represents a bad debt loss in the first quarter of 2020 from a large client in our Cambridge business entering voluntary bankruptcy due to the extraordinary impact of the COVID-19 pandemic.

3 Excludes the results of the Company's investment in the nine months ended September 30, 2019, on our effective tax rate, as results from Masternaut investment are reported within the consolidated Statements of Income on a post-tax basis and no tax-over-book outside basis difference prior to disposition.

4 Represents impact of a discrete tax reserve adjustment related to prior year tax positions in 2020 and tax reform in 2019. Also includes the impact from the disposition of our investment in Masternaut of $64.9 million during the nine months ended September 30, 2019.

* Columns may not calculate due to rounding.

Exhibit 1RECONCILIATION OF NON-GAAP MEASURES(In thousands, except shares and per share amounts)(Unaudited) The following table reconciles net income to adjusted net income and adjustednet income per diluted share:* Three Months Ended Nine Months Ended September 30, September 30,

2020 2019 2020 2019

Net income $ 188,817 $ 225,805 $ 494,365 $ 659,563

Stock based compensation 11,905 15,273 35,069 46,120

Amortization ofintangible assets, 49,078 52,907 146,995 163,048 premium on receivables,deferred financing costsand discountsInvestment loss (gain) 1,330 - (30,008 ) 15,660

Integration and deal 1,768 - 11,035 - related costs^1Restructuring and 185 - 4,912 - related costsLegal settlements/ 2,048 - (2,989 ) 3,474 litigationWrite-off of customer - - 90,058 - receivable^2Total pre-tax 66,314 68,180 255,072 228,302 adjustments Income tax impact of (13,196 ) (15,177 ) (55,429 ) (49,023 )pre-tax adjustments atthe effective tax rate^3Impact of discrete tax - 1,782 9,848 (63,098 )item^4 Adjusted net income $ 241,935 $ 280,590 $ 703,856 $ 775,744

Adjusted net income per $ 2.80 $ 3.10 $ 8.09 $ 8.62 diluted share Diluted shares 86,273 90,522 87,006 89,976

^1 Beginning in the first quarter of 2020, the Company included integration anddeal related costs in its definition to calculate adjusted net income andadjusted net income per diluted share. Prior period amounts were approximately$1.0 million and $3.8 million for the three and nine months ended September 30,2019, respectively, which we consider immaterial.

^2 Represents a bad debt loss in the first quarter of 2020 from a large clientin our Cambridge business entering voluntary bankruptcy due to theextraordinary impact of the COVID-19 pandemic.

^3 Excludes the results of the Company's investment in the nine months endedSeptember 30, 2019, on our effective tax rate, as results from Masternautinvestment are reported within the consolidated Statements of Income on apost-tax basis and no tax-over-book outside basis difference prior todisposition.

^4 Represents impact of a discrete tax reserve adjustment related to prior yeartax positions in 2020 and tax reform in 2019. Also includes the impact from thedisposition of our investment in Masternaut of $64.9 million during the ninemonths ended September 30, 2019.

* Columns may not calculate due to rounding.

Exhibit 2Key Performance Indicators, by Product Category and Revenue Per Performance Metric on a GAAP Basis and Pro Forma and Macro Adjusted(In millions except revenues, net per transaction)(Unaudited)The following table presents revenue and revenue per key performance metric by product category.*As Reported

Pro Forma and Macro Adjusted3

Three Months Ended September 30,

Three Months Ended September 30,

2020

2019

Change

% Change

2020

2019

Change

% Change

FUEL- Revenues, net$

255.1

$

295.6

$

(40.5

)

(14

%)

$

262.4

$

295.6

$

(33.2

)

(11

%)

- Transactions113.6

129.4

(15.8

)

(12

%)

113.6

129.4

(15.8

)

(12

%)

- Revenues, net per transaction$

2.25

$

2.28

$

(0.04

)

(2

%)

$

2.31

$

2.28

$

0.03

1

%

CORPORATE PAYMENTS- Revenues, net1$

106.5

$

120.0

$

(13.5

)

(11

%)

$

106.5

$

120.0

$

(13.4

)

(11

%)

- Spend volume$

15,567

$

19,033

$

(3,466

)

(18

%)

$

15,567

$

19,033

$

(3,466

)

(18

%)

- Revenues, net per spend $0.68

%

0.63

%

0.05

%

9

%

0.68

%

0.63

%

0.05

%

9

%

TOLLS- Revenues, net$

67.6

$

88.7

$

(21.1

)

(24

%)

$

91.6

$

88.7

$

2.9

3

%

- Tags (average monthly)5.4

5.1

0.3

5

%

5.4

5.1

0.3

5

%

- Revenues, net per tag$

12.60

$

17.43

$

(4.83

)

(28

%)

$

17.06

$

17.43

$

(0.37

)

(2

%)

LODGING- Revenues, net$

52.9

$

56.4

$

(3.5

)

(6

%)

$

52.9

$

78.2

$

(25.3

)

(32

%)

- Room nights5.4

4.4

1.0

22

%

5.4

7.1

(1.7

)

(24

%)

- Revenues, net per room night$

9.77

$

12.74

$

(2.97

)

(23

%)

$

9.77

$

10.94

$

(1.16

)

(11

%)

GIFT- Revenues, net$

39.1

$

48.5

$

(9.4

)

(19

%)

$

39.1

$

48.5

$

(9.4

)

(19

%)

- Transactions242.7

277.8

(35.1

)

(13

%)

242.7

277.8

(35.1

)

(13

%)

- Revenues, net per transaction$

0.16

$

0.17

$

(0.01

)

(8

%)

$

0.16

$

0.17

$

(0.01

)

(8

%)

OTHER2- Revenues, net1$

64.1

$

71.9

$

(7.8

)

(11

%)

$

65.6

$

71.9

$

(6.4

)

(9

%)

- Transactions19.9

14.6

(4.7

)

(32

%)

9.9

14.6

(4.7

)

(32

%)

- Revenues, net per transaction$

6.48

$

4.93

$

1.55

31

%

$

6.63

$

4.93

$

1.69

34

%

FLEETCOR CONSOLIDATED REVENUES- Revenues, net$

585.3

$

681.0

$

(95.8

)

(14

%)

$

618.0

$

702.9

$

(84.9

)

(12

%)

1 Reflects certain reclassifications of revenue between product categories as the Company realigned its corporate payments business, resulting in reclassification of payroll paycard revenue from corporate payments to other.

2 Other includes telematics, maintenance, food, transportation and payroll card related businesses.

3 See Exhibit 5 for a reconciliation of Pro forma and Macro Adjusted revenue by product and metrics, non GAAP measures, to the GAAP equivalent.

* Columns may not calculate due to rounding.

Exhibit 2Key Performance Indicators, by Product Category and Revenue Per PerformanceMetric on a GAAP Basis and Pro Forma and Macro Adjusted(In millions except revenues, net per transaction)(Unaudited)The following table presents revenue and revenue per key performance metric byproduct category.* As Reported Pro Forma and Macro Adjusted^3

Three Months Ended September 30, Three Months Ended September 30,

2020 2019 Change % 2020 2019 Change % Change Change

FUEL- Revenues, $ 255.1 $ 295.6 $ (40.5 ) (14 %) $ 262.4 $ 295.6 $ (33.2 ) (11 %)net- 113.6 129.4 (15.8 ) (12 %) 113.6 129.4 (15.8 ) (12 %)Transactions- Revenues, $ 2.25 $ 2.28 $ (0.04 ) (2 %) $ 2.31 $ 2.28 $ 0.03 1 %net pertransaction CORPORATEPAYMENTS- Revenues, $ 106.5 $ 120.0 $ (13.5 ) (11 %) $ 106.5 $ 120.0 $ (13.4 ) (11 %)net^1- Spend $ 15,567 $ 19,033 $ (3,466 ) (18 %) $ 15,567 $ 19,033 $ (3,466 ) (18 %)volume- Revenues, 0.68 % 0.63 % 0.05 % 9 % 0.68 % 0.63 % 0.05 % 9 %net per spend$ TOLLS- Revenues, $ 67.6 $ 88.7 $ (21.1 ) (24 %) $ 91.6 $ 88.7 $ 2.9 3 %net- Tags 5.4 5.1 0.3 5 % 5.4 5.1 0.3 5 %(averagemonthly)- Revenues, $ 12.60 $ 17.43 $ (4.83 ) (28 %) $ 17.06 $ 17.43 $ (0.37 ) (2 %)net per tag LODGING- Revenues, $ 52.9 $ 56.4 $ (3.5 ) (6 %) $ 52.9 $ 78.2 $ (25.3 ) (32 %)net- Room nights 5.4 4.4 1.0 22 % 5.4 7.1 (1.7 ) (24 %)

- Revenues, $ 9.77 $ 12.74 $ (2.97 ) (23 %) $ 9.77 $ 10.94 $ (1.16 ) (11 %)net per roomnight GIFT- Revenues, $ 39.1 $ 48.5 $ (9.4 ) (19 %) $ 39.1 $ 48.5 $ (9.4 ) (19 %)net- 242.7 277.8 (35.1 ) (13 %) 242.7 277.8 (35.1 ) (13 %)Transactions- Revenues, $ 0.16 $ 0.17 $ (0.01 ) (8 %) $ 0.16 $ 0.17 $ (0.01 ) (8 %)net pertransaction OTHER^2- Revenues, $ 64.1 $ 71.9 $ (7.8 ) (11 %) $ 65.6 $ 71.9 $ (6.4 ) (9 %)net^1- 9.9 14.6 (4.7 ) (32 %) 9.9 14.6 (4.7 ) (32 %)Transactions^1- Revenues, $ 6.48 $ 4.93 $ 1.55 31 % $ 6.63 $ 4.93 $ 1.69 34 %net pertransaction FLEETCORCONSOLIDATEDREVENUES- Revenues, $ 585.3 $ 681.0 $ (95.8 ) (14 %) $ 618.0 $ 702.9 $ (84.9 ) (12 %)net ^1 Reflects certain reclassifications of revenue between product categories asthe Company realigned its corporate payments business, resulting inreclassification of payroll paycard revenue from corporate payments to other.

^2 Other includes telematics, maintenance, food, transportation and payrollcard related businesses.

^3 See Exhibit 5 for a reconciliation of Pro forma and Macro Adjusted revenueby product and metrics, non GAAP measures, to the GAAP equivalent.

* Columns may not calculate due to rounding.

Exhibit 3Revenues by Geography and Product(In millions)(Unaudited)Revenue by Geography*Three Months Ended September 30,

Nine Months Ended September 30,

2020

%

2019

%

2020

%

2019

%

US$

357

61%

$

414

61%

$

1,090

62%

$

1,174

60%

Brazil80

14%

106

16%

254

14%

316

16%

UK70

12%

68

10%

193

11%

205

10%

Other78

13%

93

14%

235

13%

256

13%

Consolidated Revenues, net$

585

100%

$

681

100%

$

1,772

100%

$

1,950

100%

* Columns may not calculate due to rounding.Revenue by Product Category*1Three Months Ended September 30,

Nine Months Ended September 30,

2020

%

2019

%

2020

%

2019

%

Fuel$

255

44%

$

296

43%

$

797

45%

$

874

45%

Corporate Payments107

18%

120

18%

319

18%

329

17%

Tolls68

12%

89

13%

215

12%

264

14%

Lodging53

9%

56

8%

150

8%

148

8%

Gift39

7%

48

7%

108

6%

133

7%

Other64

11%

72

11%

182

10%

203

10%

Consolidated Revenues, net$

585

100%

$

681

100%

$

1,772

100%

$

1,950

100%

* Columns may not calculate due to rounding.1 Reflects certain reclassifications of revenue between product categories as the Company realigned its corporate payments business, resulting in reclassification of payroll paycard revenue from corporate payments to other.

Exhibit 3Revenues by Geography and Product(In millions)(Unaudited) Revenue by Three Months Ended Nine Months Ended September 30,Geography* September 30,

2020 % 2019 % 2020 % 2019 %

US $ 357 61% $ 414 61% $ 1,090 62% $ 1,174 60%

Brazil 80 14% 106 16% 254 14% 316 16%

UK 70 12% 68 10% 193 11% 205 10%

Other 78 13% 93 14% 235 13% 256 13%

Consolidated $ 585 100% $ 681 100% $ 1,772 100% $ 1,950 100%Revenues, net* Columns maynot calculatedue to rounding. Revenue by Three Months Ended Nine Months Ended September 30,Product September 30,Category*^1 2020 % 2019 % 2020 % 2019 %

Fuel $ 255 44% $ 296 43% $ 797 45% $ 874 45%

Corporate 107 18% 120 18% 319 18% 329 17%PaymentsTolls 68 12% 89 13% 215 12% 264 14%

Lodging 53 9% 56 8% 150 8% 148 8%

Gift 39 7% 48 7% 108 6% 133 7%

Other 64 11% 72 11% 182 10% 203 10%

Consolidated $ 585 100% $ 681 100% $ 1,772 100% $ 1,950 100%Revenues, net* Columns maynot calculatedue to rounding. ^1 Reflects certain reclassifications of revenue between product categories asthe Company realigned its corporate payments business, resulting inreclassification of payroll paycard revenue from corporate payments to other.

Exhibit 4Segment Results(In thousands)(Unaudited)Three Months Ended September 30,

Nine Months Ended September 30,

2020

20191

2020

20191

Revenues, net:North America$

383,828

$

442,704

$

1,175,950

$

1,257,544

Brazil79,596

106,574

253,722

315,854

International121,859

131,770

341,850

376,569

$

585,283

$

681,048

$

1,771,522

$

1,949,967

Operating income:North America$

153,328

$

205,558

$

372,219

$

562,230

Brazil35,600

42,469

104,462

126,884

International75,604

81,114

201,645

221,520

$

264,532

$

329,141

$

678,326

$

910,634

Depreciation and amortization:North America$

39,390

$

39,309

$

115,913

$

119,476

Brazil12,260

16,224

39,019

49,314

International11,829

11,814

35,185

36,910

$

63,479

$

67,347

$

190,117

$

205,700

Capital expenditures:North America$

12,053

$

10,340

$

35,590

$

30,023

Brazil3,501

4,296

10,309

12,273

International2,595

2,070

9,120

6,385

$

18,149

$

16,706

$

55,019

$

48,681

1 The Company has historically had two reportable segments, North America and International. In the first quarter of 2020, in order to better align with changes in business models and management reporting, the Company has broken out Brazil as a third segment, which was previously reported in the International segment. The presentation of segment information has been recast for the prior quarter to align with segment presentation in 2020.Exhibit 4Segment Results(In thousands)(Unaudited) Three Months Ended Nine Months Ended September September 30, 30,

2020 2019^1 2020 2019^1

Revenues, net:North America $ 383,828 $ 442,704 $ 1,175,950 $ 1,257,544

Brazil 79,596 106,574 253,722 315,854

International 121,859 131,770 341,850 376,569

$ 585,283 $ 681,048 $ 1,771,522 $ 1,949,967

Operating income:North America $ 153,328 $ 205,558 $ 372,219 $ 562,230

Brazil 35,600 42,469 104,462 126,884

International 75,604 81,114 201,645 221,520

$ 264,532 $ 329,141 $ 678,326 $ 910,634

Depreciation andamortization:North America $ 39,390 $ 39,309 $ 115,913 $ 119,476

Brazil 12,260 16,224 39,019 49,314

International 11,829 11,814 35,185 36,910

$ 63,479 $ 67,347 $ 190,117 $ 205,700

Capital expenditures:North America $ 12,053 $ 10,340 $ 35,590 $ 30,023

Brazil 3,501 4,296 10,309 12,273

International 2,595 2,070 9,120 6,385

$ 18,149 $ 16,706 $ 55,019 $ 48,681

^1 The Company has historically had two reportable segments, North America andInternational. In the first quarter of 2020, in order to better align withchanges in business models and management reporting, the Company has broken outBrazil as a third segment, which was previously reported in the Internationalsegment. The presentation of segment information has been recast for the priorquarter to align with segment presentation in 2020.Exhibit 5Reconciliation of Non-GAAP Revenue and Key Performance Metric by Product to GAAP(In millions)(Unaudited)Revenues, netKey Performance MetricThree Months Ended September 30,Three Months Ended September 30,2020*2019*2020*2019*FUEL-TRANSACTIONSPro forma and macro adjusted$

262.4

$

295.6

113.6

129.4

Impact of acquisitions/dispositions-

-

-

-

Impact of fuel prices/spread(4.5

)

-

-

-

Impact of foreign exchange rates(2.8

)

-

-

-

As reported$

255.1

$

295.6

113.6

129.4

CORPORATE PAYMENTS- SPENDPro forma and macro adjusted$

106.5

$

120.0

15,567

19,033

Impact of acquisitions/dispositions-

-

-

-

Impact of fuel prices/spread(0.4

)

-

-

-

Impact of foreign exchange rates0.3

-

-

-

As reported$

106.5

$

120.0

15,567

19,033

TOLLS- TAGSPro forma and macro adjusted$

91.6

$

88.7

5.4

5.1

Impact of acquisitions/dispositions-

-

-

-

Impact of fuel prices/spread-

-

-

-

Impact of foreign exchange rates(23.9

)

-

-

-

As reported$

67.6

$

88.7

5.4

5.1

LODGING- ROOM NIGHTSPro forma and macro adjusted$

52.9

$

78.2

5.4

7.1

Impact of acquisitions/dispositions-

(21.8

)

-

(2.7

)

Impact of fuel prices/spread-

-

-

-

Impact of foreign exchange rates-

-

-

-

As reported$

52.9

$

56.4

5.4

4.4

GIFT- TRANSACTIONSPro forma and macro adjusted$

39.1

$

48.5

242.7

277.8

Impact of acquisitions/dispositions-

-

-

-

Impact of fuel prices/spread-

-

-

-

Impact of foreign exchange rates-

-

-

-

As reported$

39.1

$

48.5

242.7

277.8

OTHER1- TRANSACTIONSPro forma and macro adjusted$

65.6

$

71.9

9.9

14.6

Impact of acquisitions/dispositions-

-

-

-

Impact of fuel prices/spread-

-

-

-

Impact of foreign exchange rates(1.4

)

-

-

-

As reported$

64.1

$

71.9

9.9

14.6

FLEETCOR CONSOLIDATED REVENUESPro forma and macro adjusted$

618.0

$

702.9

Impact of acquisitions/dispositions-

(21.8

)

Impact of fuel prices/spread(4.9

)

-

Intentionally Left BlankImpact of foreign exchange rates(27.8

)

-

As reported$

585.3

$

681.0

* Columns may not calculate due to rounding.1 Other includes telematics, maintenance, food, transportation and payroll card related businesses. View source version on businesswire.com: https://www.businesswire.com/news/home/20201105006145/en/

CONTACT: Investor Relations Jim Eglseder, 770-417-4697 Jim.Eglseder@fleetcor.com