FleetCor Technologies, Inc.’s (FLT - Snapshot Report) first-quarter adjusted earnings of 90 cents breezed past the Zacks Consensus Estimate of 77 cents. Results were up 50% year over year from 60 cents earned in the year-ago quarter.
Including the negative impact of $10.5 million or 13 cents per share from stock based compensation, amortization of intangible assets, amortization of premium on receivables and amortization of deferred financing costs, FleetCor reported net income of $64.7 million or 77 cents per share in the first quarter of 2013, up 54% year over year.
Quarterly Operational Update
Operating revenues increased 32% year over year to $179.8 million in the reported quarter, surpassing the Zacks Consensus Estimate of $178 billion.
Including merchant commissions, revenues came in at $193.7 million, up 32% year over year. The year-over-year improvement was driven by solid contribution from both the international (up 46.9% year over year) and North America (increasing 21.5% year over year) segment.
Total expenses in the quarter increased 21.7% year over year to $99.4 million.
The magnitude of increase in revenues more than offset the magnitude of increase in total expense, thereby driving FleetCor’s operating income higher over the year-ago numbers. Operating income increased 46.2% year over year to $94.3 million.
Segment wise, operating income at International surged 70% year over year to $44.8 million, while at North America it increased 29.7% year over year to $49.4 million in the fourth quarter.
Earnings before interest tax, depreciation and amortization (EBITDA) increased 42.9% year over year to $108.9 million in the first quarter of 2013.
FleetCor exited the reported quarter with cash and cash equivalents of $224.6 million, down 20.8% year over year.
As of Mar 31, 2013, notes payable and other obligations net current portion were $492 million, up 1.4% from $485 million as of Dec 31, 2012. FleetCor’s total assets and shareholder equity were $2.89 billion and $983 million, respectively, as of Mar 31, 2013.
Net cash outflow from operating activities in the reported quarter was $13.7 million, improving from $113.9 million in the year-ago quarter.
FleetCor expects revenues for 2013 in the range of $810–$820 million.
The company projects adjusted income in the range of $310–$320 million or $3.70–$3.80 per share.
FleetCor currently carries a Zacks Rank #3 (Hold). Other companies in the miscellaneous financial services industry that are worth considering are Daiwa Securities Group Inc. (DSEEY), Grupo Financiero Banorte, S.A.B. de C.V. (GBOOY) and Euronet Worldwide Inc. (EEFT - Snapshot Report), all of which carry a Zacks Rank #2 (Buy).