FleetCor Technologies Inc. (NYSE: FLT) announced Thursday second-quarter net income of $158.5 million, or $1.83 per share, a 37% year-over-year decline compared to 2019.
The Atlanta-based commercial fuel-card and business-payment systems provider also posted second-quarter revenue of $525.1 million, a decrease of 19% compared to 2019.
Second-quarter revenue fell 18% short of Wall Street expectations of $535.8 million, while its earnings per share of $1.83 beat expectations by 23 cents.
The COVID-19 pandemic had a significant impact on results, but the company was “pleased with our ability to manage our operating expenses during the quarter,” said FleetCor CEO Ron Clarke.
“We’re delighted honestly with our Q2 credit loss results, which came in at $21 million, which was about our original loss plan,” Clarke said. “We quickly tried to strengthen our liquidity back at the beginning of the quarter.”
Clarke said the company stepped up collections intensity, repatriated cash and secured a bridge loan.
“Today liquidity is quite good at $1.9 billion and a leverage ratio of 2.6 times,” Clarke said.
FleetCor sells a range of customized fleet and lodging payment programs and offers card products to purchase fuel, lodging, food, toll, transportation, and related products and services at participating locations.
The company employs around 8,700 people and provides commercial card services in more than 100 countries.
Second-quarter revenue from FleetCor’s fuel-card program decreased 15% to $250 million. Fuel transactions revenue declined by 20%, to $99.7 million. Corporate payments revenue declined 17.4% to $92.6 million.
The company also reported toll revenue decreased 25%, to $65 million. Gift revenue fell 26%, to $26.5 million.
The United States was FleetCor’s largest market, generating $335 million in revenue during the second quarter, a 13.8% decline compared to 2019.
Second-quarter revenue from Brazil fell 28%, to $75 million, while United Kingdom revenue fell 30%, to $49 million. Other countries generated second-quarter revenue of $66 million.
Company officials said because of the uncertainty caused by the pandemic, they will not be providing a financial outlook for the remainder of 2020.
Click for more FreightWaves articles by Noi Mahoney.
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