FleetCor Technologies, Inc.
) third quarter 2012 adjusted earnings came in at 83 cents per
share, surpassing the Zacks Consensus Estimate by 20.1%. Results
shot up 48% from 56 cents earned in the year-ago quarter.
Adjusted earnings improved 52% year over year to $71.6 million.
The company fared better riding on the back of strong organic
growth in the U.S. and accretion from the acquisitions.
FleetCor reported net income of $59.6 million, or 69 cents per
share, comparing favorably with $40.5 million or 48 cents per
share in the third quarter of 2011. Net income in the reported
quarter includes the combined impact of $11.9 million or 14 cents
per share from stock based compensation, amortization of
intangible assets, amortization of premium on receivables and
amortization of deferred financing costs.
Revenues for the third quarter stood at $186.9 million, improving
32% over the prior-year quarter. Adjusted revenue, which excludes
Merchant commissions, increased almost 44% year over year to $174
million. Revenue improved on the back of solid contribution from
both International (soaring 107.3% year over year) and North
America (increasing 9.1% year over year) segment.
However, adjusted revenues missed the Zacks Consensus Estimate of
The magnitude of increase in revenue more than offset the
magnitude of increase in total expense, thereby driving operating
income higher over the year-ago numbers. Operating income
increased 39% year over year.
Segment wise, operating income at International surged 96% year
over year to $36.6 million while at North America, it augmented
14% over the prior-year quarter.
Earnings before interest, tax, depreciation and amortization
(EBITDA) increased 39.5% year over year to $99.4 million.
FleetCor exited the quarter with cash and cash equivalents of
$300.1 million; increasing 5.2% from $285.2 million at 2011 end.
Net cash flow from operating activities in the first nine months
of 2012 was $33.1 million, deteriorating 53% from the year-ago
FleetCor's capital expenditures escalated 62% year over year to
$13 million in the first nine months of 2012.
Early November, FleetCor announced the increase in the size of
its credit facility by $500 million. It currently totals $1.4
billion, consisting of $550 million term loan facility and an
$850 million revolving credit facility.
FleetCor raised the lower end of its revenue while it nudged down
the higher end to guide 2012 revenue to a range of $678 million
and $682 million. It had previously guided revenue between $665
million to $675 million.
It projects adjusted income to be between $248 million to $251
million, up from previous guidance of $235 million to $240
Bottom line is thus estimated to be in the range of $2.89 and
$2.91, up from the prior guidance of $2.74 to $2.78.
At the Peer
), which directly competes with FleetCor, posted earnings of
$1.08 per share, falling short of the Zacks Consensus Estimate by
4.4% but bettering the year-ago earnings by 7.1%.
Revenue was $161 million, improving nearly 6% year over year and
exceeding the expectation by 2.2%.
FleetCor currently carries a Zacks #3 Rank, implying a short term
Hold rating. WEX Inc. also shares the same Zacks rank.
FLEETCOR TECH (FLT): Free Stock Analysis
WEX INC (WXS): Free Stock Analysis Report
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