Corpay (CPAY) 9 May 202007 Q1 Earnings call transcript

Greetings, and welcome to the FLEETCOR Technologies First Quarter 2020 Earnings Conference Call.

As reminder this conference call is being recorded. I would now like to turn the conference over to your host, Mr. Jim Eglseder, Head of Investor Relations for FLEETCOR Technologies. Thank you.

begin. may You

Dey, And our everyone. today for us and joining Ron Good quarter thank XXXX for Eric CEO; and first our me CFO. earnings today Clarke, afternoon, Chairman you our call. are With

under information, including our press the can queue previously Following your the Investor calculated will fleetcor.com. most questions. will non-GAAP the non-GAAP appear queue information Q&A is income open opportunity information not to and net adjusted only calculated be Reconciliations is note, information the announce in financial session. today's at into in for information non-GAAP on operator other described. It we website differently of adjusted comments than companies. and earnings GAAP revenues, of be get financial then net section Ron and supplement our from this accordance historical for directly Throughout diluted both found will may This release Eric, as and income to presenting per that be Relations Please GAAP the our share. with website, release comparable adjusted and call,

future which These materially guarantees and you put could therefore, of differ begin results not I remind that will initiatives and performance, need subject risks actual of to we are development from results acquisitions. them. formal before business everybody and statements today They to our This include our expect. products to and reliance cause are discussion includes statements. and fee Now part forward-looking forward-looking upon should we new remarks, not about what numerous undue uncertainties, expectations regarding

available Ron our report the like on the our press CEO. website over are at of to mentioned the in Ron? These to With our and Some Chairman Exchange www.sec.gov. way, and Clarke, filed with Securities of those I XX-K Form out turn on today's documents Form call Commission. that release on on X-K and and are risks annual would

cover and at crisis. quarter joining opening COVID first, afternoon, to here: our subjects four the thanks plan response on I Good the first to our comment everyone, for and earnings call. I'll

I'll results, lastly, for we're cover third, the businesses QX company. in that in to I'll in trends seeing perspective and the resetting our our share Second, I'll April, priorities my on speak framework

Okay.

Let the situation me what doing response. with begin some remarks COVID about and in we're

companies, many over taken like the Safety. number months. we've actions of So last of a couple

say from plus transitioned So, more priorities. a employee first, our trying looking to running employees more X,XXX ensure way majority communications, we're the for new Zoom, more people's through that work quickly I'd the company, our the safety the worldwide at we cadence to to really we're teleconferences, of our of working home. new establish from employees, model, general work home

products to business in to in we this assure we highest continuity work focused incidents Second some systems client delivered and report on that I'm period. through thing, system continue QX, payment and time. our fewest uptime pleased quite the to

So there. news good

liquidity our a up lines payment on taken credit repurposed focused for cash. We've terms and tightened down about inactive payment We terms. lines, clients or line industries, to to reduced and and We've consolidated Third, shored capacity, we selectively distressed liquidity. billion. loan and credit. We our staff unused shut step reduced collections we've intensity. our raised bridge lastly, $X.X And up we've

the operate learning to initial some success managing how within response and we've this situation it. in phase, So had

Okay.

talk gears our Let a results. me shift QX bit about and

of and X% of cash we XX%. reported So up $XXX million, EPS up revenue $X, QX

revenue in X%, second finished X% place when February grew Our growth contract January $XX revenue, X%, overall our for revenue, lower the our effect. to than million businesses took the and March X% print half shelter the March QX expectations orders revenue revenue about our of began as of quarter. leading in to

of that, XX% growth, revenue toll at Inside coming QX terms at finished X%. at X%, growth in or X% and of organic lodging overall. XX%, like-for-like good In fuel at at call we corporate what revenue pay, quite

by for All declines helped by sudden end softer rate bringing March, businesses and our revenue in shares. tax impacted at below lower high of volume profits outstanding quarter, slightly our Despite there quarter our growth the fewer the in came a softer the late actually were the our of the target. in expectations, rates

COVID. Our in also QX operating trends by affected

declined sales the late same-store softening. X%, predominantly March to Our again related

sales grew market at our began retention Again, stable thankfully, year. late XX%. to But remains distracted new X% the Our client March. versus get last in

pretty So January everything, QX and hold QX. February on us helped in print A the for financial performance. good a given look, good start to

Okay.

trends to the through the Let and turn and our of on a me each. each impact seeing run COVID we're in April make businesses

So first fuel. is up

So in here year last in fuel are to volumes April. North America, XX% behind XX% our

our fuel like business looks trucking declines essential off. local. our businesses bit America Our leveling holding it than up of services, a North better Because are volume are many our

fees, Our very our is to margins than by that's than volume. weaker the down Europe the depending in because better be America the In white orders. particular, cardholders think North Business revenue US, the tends in than international will quite proportion fuel because some there revenues bit revenue bit to or a remain and wide. shelter-in-place a April is to mostly April volumes, of we fixed a who be XX% on fuel XX% better the are North the bit both shutdown collar in fuel Generally, was and is here. have have more them than revenue here card card been America fuel UK, also be earlier of nature, helped and as market, fees, by it international particular in expect in in because fuel greater a impacted volume, spreads business, which

pay. up, next Okay, corporate

level virtual versus lots off in to client fixed. we're our about volumes of So Again, as April volumes there probably card corporate pay, our year. in off XX% is AP prior expecting

full up office, it's service, be resonating. full our to business, AP capability, which with cross-border automation the outsourcing of to a the process due extraordinary expect Eric the a ongoing and grow - which cover take in to we And to news some AP volatility. detail our loss the cross-border ability outside mostly loss did business, in We up and business continuing his The will remote April. in bit April, good credit in Some hold remarks. in currency

to business. our lodging Turning

in workforce be April. We about business expect to our XX% prior versus core year down

their workers this Our don't They And construction even to to drive rooms reminder, workforce travelers to as need hotels. lodging a rail, environment. truckers, our just most their of continue in hotels. fly

business our in the down in way bright crew airlines a their somewhere business. range Brazil toll, canceled much as us. a airline of April, Travelliance or fortunately, will smaller new spot lodging for Brazil. of lodging flights, be part much, XX%-plus Our most

that's So despite even toll and slightly flat up, transactions being roughly or down revenue be we because revenues expect in are to toll subscription-based. toll primarily April,

Lastly, our redemption. as expected about much brick-and-mortar April many closed, of business our clients card gift temporarily business the to are moving XX% activity of be retail to digital down that in in

a conclusions So here. few

bit quite impacts Our April by volume business. revenue a vary and

XX% our range and or some of not XX% impacted impacted the the down So to some XX% down much, some plus range. in impacted business

in important, of a loss. begin proportion We to responders, what by do look not prior most because COVID affected, through XX% our cardholders see XX% we impacted volumes We represent client they first to on expect of We to April year. they truckers, business. Also the it thus overall the of to do April. And essential expect Fortunately, are our businesses is construction, smaller many rail, come flatten. most behind do. most sequentially our doing softness, as workers, workers, right healthcare decline far volume keep client revenue

lastly, a can it other continue and XX% EBITDA side. could at on these make generate And distressed So cash news to we're we business back good of that levels even money the come so volume.

framing the to now priorities over company's things. we're transition me let and how Okay,

basically a looked environment. here reset of at priorities the we've changing based on So

think four decent volumes continuity, Initially, report phase behaviors. already: The expenses. So we're are safety, way this had are two, to the learning We've the phase, us and Phase under and at earlier. well of we're and I again, shutdown down I all the now, liquidity Phase in we've priorities which one, again actions new to taken success business respond credit. situation, had response are the phase, where here. outlined place and

out digital aligned particularly So different expenses surge better down contact, we're can, we come to the We're working side. technology exclusively need modifying volumes. how industries, we we're to other prospects, cutting message. selling targeting we'll Selling, moving that the where and almost protecting, where our we current and but capabilities get to our sell, makes when sense, repositioning changing system it

and work, to that future, a others sense it different then businesses to Projects. We're other of lots things reopen day. that progress So delaying selling. we we a a to control re-evaluating pushing where rely project projects work forward look begin phase can while recover. and lastly, projects our begin to on And to to makes

here acquisitions just message chase there that plan maybe, weren't be that phase, is phase, So we'll to ready. the recovery we'll before. In maybe

get COVID's we the other that from benefit take side. may can also some We behaviors advantage on new of

distressed think passenger working, transactions, about payroll you're cash, gate AP service of checks. versus versus and example, remote versus cards the agents, on think pay when outsourcing think And payroll emphasis think for the mobile office. tolls then electronic outside applications our even So automation touchless paper, to bills visiting

be may we positioned some we businesses get better recovery of that when side. is in hope the to So our the

We're never our like approaches, things, We're situation. make So of will of levels, And a our our place plans, will in of gradual and to been through as of be you, the and sales in to the the sense can we back before. some expense closing, I operate many ready. at the through bring essential continuing crisis. hopeful best year. an clients, least the go-to-market business look, our effort work this tell business progress reopening clients our continue in will that return in our serve priorities, and the which we've our But to you, that to we're project process we to normal replanning like

call let Eric on me to over additional quarter. the back So with to some Eric? that, details provide turn the

Thank through and the for remarks the to second my first quarter about some for discussion expectations Ron. as I you, can be additional allow Q&A. I'll regular going your results quickly as quarter

loss XX% trading supplement, currency the the agricultural are business. to to impact of compared in entering results one-off decreased very voluntary the all X% Due pandemic, of million. so decreased income first GAAP from XX% FX large up risk. resulting diluted quarter $XXX.X share here. space The $XXX.X to XX% the hedging, income whereas liquidation. from I'd through our a note reported you of of XXXX per of details foreign also or take of experienced does GAAP a Cambridge commodity $X.XX I impact in payments. COVID-XX comes our quarter from was $X.XX of $XXX.X quarter bad And the them Cambridge to diluted approximately the business in a extraordinary XXXX, quarter, revenue per loss of share first large quarter million, customer that debt in net our first million international approximately earnings onetime I'd not from comes XXXX. a making XX% won't that the For again the the first to from $X.XX first in the go related XXXX. million net remind in Cambridge client million revenue in $XX.X receivable $XXX.X we Included

transactions position with a calls. inability or a are their This bankruptcy margin and by customer's covered and to loss offsetting to credit AP back-to-back books banks. due cover Our is

in While bad of overview the loss. acquisition to third supplement of as of of loss provision as recovery debt have believe we for related XXXX. customer quarter a business. the Cambridge million $XX.X process, liquidation X.X% a million this detailed or it revenue impact this in for any included the do per was some due far through Please than full data, on percentage Also as share impairment have view our back telematics chance debt a we one-off see to We future $X.XX event determined the there first of business investment appropriate to we earnings recovery. minority loss onetime including diluted $XX in has is of our to XXXX of charge the take of uncertainty a truly quarter a a periods for experienced of less our as prior as a this bad the

press that first quarter million one quarter of $X.XX the customer last share Exhibit impairment $XXX.X XX% net net first in in first first GAAP to increased to XX%, XX% Excluding net XX% the diluted adjusted provided release. financial is period the charge, numbers our per the and income per income diluted net and to reconciliation impact will adjusted of share the versus XXXX XXXX. net of income and $XXX.X per same increased the Non-GAAP onetime and quarter of to metrics of share income we XXXX. for increased share income in loss discussing, XXXX increased Adjusted quarter diluted the our the be adjusted net in year. adjusted to And income in net million compared diluted $X compared per of income

believe with specifically were the impacted negative precisely First macroeconomic negatively impact neutral revenue calculate quarter. mostly we the a The although we the of fuel quarter impact for was slightly real changes, environment macro was $X full Brazilian finally, reflect quarter. million. FX down prices of pound exchange of by And quarter. negative the quarter lower the believe mostly year-over-year spreads We impact in million million favorable year-over-year to driven Fuel cannot the the approximately of about a $XX in And UK had XXXX. from it XXXX first results and foreign compared by rates, approximately when revenue. these $XX

Now the statement. moving income down

in Excluding quarter XXXX the debt primarily quarter compared the onetime $XXX.X and our XX% up The increase currency XXXX. of to impact to in first with million expenses loss million bad was of were due $XXX.X business, the expense. for trading total first acquisitions of operating the foreign

loss, operating were of of compared XX% a onetime As revenues, excluding expenses, XX.X% first the quarter to approximately total the in XXXX. percentage

impact the onetime XXXX. eight $XX.X Interest basis quarter the first $XX.X of to first due X% first customer million was additional in world million the associated bad COVID-XX. in in in additional in by amortization a Depreciation with buybacks. in first quarter a of due of quarter of Included quarter million the of nine expected points $XX.X was or million loss, the reserve expense Excluding to points expense The decreased first impact impact the debt quarter in losses $XX XXXX. around the foreign credit interest the to of XXXX to due the quarter first of decrease for million compared or related and basis of million to to share partially offset unhedged the $XX.X XXXX. expense exchange compared the impact debt, XXXX was the LIBOR million in of to rates. primarily The expense to portion $XX.X of borrowing decreases primarily our $XX.X from decrease decreased was of X%

first Our for of effective XXXX of quarter for XXXX. the XX.X% was rate first to tax the quarter XX.X% compared

tax booked option the of XXXX. compensation tax first tax of the exercises. charge purposes rate the due of effective onetime to the on XX.X% the Excluding impact additional was XX.X% in primarily to the for effective compared quarter quarter rate decrease and expense loss first in impairment the XXXX, XXXX our of quarter was for customer first in The stock

in restricted customer cash. Now We million Approximately the of primarily sheet. and consists ended $X,XXX,XXX,XXX balance $XXX is with total to quarter the turning deposits.

approximately on million to bridge also $XXX availability on maximize $XXX We April the our revolver a in company's closed liquidity. of order million undrawn loan in have and

So in we believe to adequate COVID we the total, have storm. weather liquidity

approximately purchased facilities As million in we $XXX borrowed average XXXX, price billion of our securitization in $XXX. the and facility. outstanding for shares XX, X had on credit quarter our $XXX an of We first million March $X,XXX at million

million under We current have our approximately capacity repurchase $XXX in authorization. remaining

EBITDA, ratio of which credit level under as times was four EBITDA is covenant our our our X.XX below calculated leverage March As agreement. XXXX, well times of XX,

XXXX. of spent approximately $XX the during Finally, CapEx on million first we quarter

outlook second the Now the the year. quarter balance to of and turning for

businesses that very have been to want remind than our some I resilient, First, COVID-XX, others. more by our everyone businesses although are all impacted

recurring As revenue a nature. reminder, our business primarily models are in

We customer have diversified and broad geographies. very base across industries a businesses and

activity the the Second, of second resumption guidance. in There of volumes we and uncertainty be regarding the around year. rest is to our suspending could world quarter are full accurately the predict much business simply too our year

of March March, and follows. impacted respectively. approximately January the COVID-XX data first year, February ahead result, And March. volumes for was as impact revenue at versus prior was months April mid-month. X% In X% prior up were in Some or in the the X% year. our revenue of trending were year. expectations in as a X% of and revenue approximately two of quarter ahead quarter, are the the year, of before Revenues first our And for only revenue ahead was tracking prior Through

the expected floors reopen. approximately to as Our expectations to is versus for April starts begin and to volumes XX% be in April gradually world their respective down year. are prior recover hit to revenue

the and quarters. volumes starts should in expect earnings build terms will quarter second up revenue. to the volume year, said, it for lowest higher that fourth And We the throughout resulting With and questions. in we'll that economy operator, of be in open share the and third recover, as the revenue per

now take Thank a you, Instructions] sir. Tien-Tsin with We'll question from JPMorgan. [Operator Huang

the pressures And good line about protect a I'll and are the digest from thanks just on the asking info control. you afternoon. thinking might you you here. What by Hi, some here to you here what called can lot out? bottom side – on and do for cost to that of levers the expense the start macro all outlook

that. save you profits way going a to it not our versus careful be revenues, We'll a over-dial volume Tien-Tsin. selling Hey, we're on so say it's related plan bit. flex clip about capital also the or and profitability, things be probably system X%. But to target business, tech I'd things, our turn your on in And to things. Ron. can't of quite we're would that probably

mentioned that. you then expect Yeah, M&A. And I

set do trigger we to world Ron, and bit, changing the are just here. to move little willing appetite, see valuation, your With deals wait Or opportunities up the maybe you some in a deals? the a on opens pull Are mode?

never Tien-Tsin, think, you, say we a this game-changer. I'd - is telling I'm I think

You've complaints prices and about expectations up and the few money heard driving stuff. in our ongoing space people seller last and free the years

I I of think heard, impact to companies lots companies some have interested or obviously that be in, think valuations. there'll heard we're assets

for on that people more side. have credit with the compete and us more think problems I will deals

thinking. kind long period I'll think of some for time I'd six high. That's a have time, really but So coveted new that of to deal of say probably assets spending call I chance lots is We're you, we've of that five as time. what some or may There opening. personally

So I would say high.

it. Stay you. well, Got guys. Thank

now We'll from question next Ryan take our of with Cary America. Bank

Hi, question. And guys. my well. Appreciate you hope I taking you're

little rather up like question. investment than more side your the bit side. a sounds on volume following Just It variable saves are Tien-Tsin's cost on the

IT you are spend sales in called Is still on that And expectations from track? planning on step-up think IT XXXX. $XXX-plus in range So million-ish expenses still in last you the and incremental discussed the you quarter? I out

it's Ryan, Yes, Ron.

sales it, little of XX%, expense, So XX%. to to XX%. circa that's production, a right. We kind it, built grow call We call grow plans try sales slower, sales

the to do So yeah, plan that. we built

say on of right? that field we're Some a people money get also takes the obviously, some build the good and time side. I cautious form lower it really marketing in physical telesales takes you headcount commissions. really care with of group. the being stuff that I'd and shows of kinds group a super all trade of we lead think on reach pulled long itself, that. and said, the of gen But back goals, good It like to some don't If back production

as even not think quite and the I honestly reduce or so of replace we're reluctant move to that And through we year. kind to refill

the play to game long trying clearly we're on selling. So

urban toll And XX%. quarter? of trends quarter? And you the there can out? some say surprised about Got growth the in anything the in Was calling you the to Thanks. you was it. toll particular I users business saw growth little about the organic a in of talk slowed new worth anything

Yes.

reason We're in So out that result first mid-teens it would second couple it. the it's still of with quite XX%. But the happy really of I'd good not a close March a to of all, be call it's thing of to half this things. pencil

the First, we and the side on transactions there. bit soften spend, get particularly did did a BXB on paid

tags a And pushed the So clipped some tag the to compete volume of other at couple our COVID is the the the guy the build they then the year points that with thing at to end. that, leads end of to offer free banks.

month so have probably we what kind rolling We be have our off sitting couple of next I'll another - And or QX call in we'll of tags two. free percent the results. of in

kind two the nicks be would of on those the So number.

or you quarter you're say tolls that urban And can trends about the of anything just the growth seeing? new in

bit, Can you up - you broke a say Ryan?

I apologize.

Just metrics in new usage around users anything tag around any there. quarter urban the toll the or

terms In urban of sales usage?

Yes. I mean, handy. Urban don't I have down. tags. it's that

think have targeted number, back to kind call of XX,XXX some I XX,XXX get to have any I'll a it, handy. to we quarter. don't I you,

Great. taking questions. for Thanks my

our with question from take Sanjay next now Sakhrani KBW. We'll

stuff? first the going business. Thanks, confidence well. quarter to from guess the question on inflect much inside of comments how the second you the gives of that the have I you second volume more is defensive cyclical quarter? the mix the Can appreciate on areas guys mentioned we're some Ron, I what weakest. in you businesses these and being defensive glad just And you all of your talk about is versus the you the I'm disclosures are

bit of Yeah. learning. bottoming, our I than to yesterday. virtually texture planing, what all we week, big the if reports. I a got set just are So businesses I point. supplement, We confidence put a I We've And had And of have you at will, it think appears got review mean, right? in us this we've think, another that analysis, more think out. the we from sequential the we comes daily from

what to business a So actually the we're seen few bit. starting guys you of anything, to I think haven't tick up see tiny a

in June we May than the I, I will smidge of best off better think quoted guess bottoming. that is we, our that the Eric April. be around and set prior XX%-ish is what So probably and year. we're April comment a And

So then be tick is world if if, better. in the fact, the happening, QX, clearly, up reopens, will

will our guess is QX the be worst. So best

Okay. do I And you mean, Can feel health you you that areas about that certain Ron, is if the the portfolio be pretty prolonged mentioned, feel you just also about there's do talk of given your the at defensive strong, health? portfolio a mix. economic downturn? like of the general might risk how

Yeah. the the I mean, Sanjay, get I have chart and tried, we that haves with think nots. to into

like business a So that affected none, same that's I and think every you portfolio. guys the follow, some I inside some FLEETCOR And thing think the are lot.

we page that and And we the trough. on that so of have longest businesses have would the think probably weakest

out again, So called page, that our... we clients for is example, that

Sanjay, It's supplement. Page XX, the earnings in

So be lodging we relies would planes Sanjay, be, airline longest crew recent the that the the think, that fundamentally flying I couple, softest, the acquisition and on would the did flying.

some some the gift off, to those of is those I those So one today, if would again softness. the go that card extent I while. will off weakest. But closed the businesses, of business, of And a couple out think and for is, of I'd message go other say don't ones, brick-and-mortar BK, then that thing's the we've impact retail be be for I it got know, think, XX% business, stays

thirds XX to three driving five, a of card fuel client drivers two what these drive set. a used versus with it's or they So four

of come kind clients back, to kind And of if back, the so back. the come thing ability come for we the

a the are healthy that say that clients of green, happy again. obviously, got the of of kind for the I'd to sitting kind we've then few are businesses, get waiting in that are there, got And the rest days. rest we've so And the

I'd couple longer the back workforce. I kind the the our a because of say out than I be come their nature essential other that curve think to a I out, way and couple I service So of rest couple should a on have back call called of think

you, guys. Thank Great.

Trevor take Jefferies. now our with We'll question next from Williams

alluded Ron, sales prepared corporate the to side thanks. you Good afternoon, on Hi, ask I guys. that your payments, to more in On remarks. wanted

that business. cycles process implementation most now, wondering sales the with me how wrong, in and long and that's working people Because Just assumption, is selling remotely that correct I'm impacted are fairly please my if periods. I'm these

So the pre-booking much signed just growth prior progress as what about that you come looks we XXXX? like revenue should of lot think a next Just customers expecting how there. to year's the be of in guys in from year, we and new

Trevor. Yeah,

on current year. totally You're right

in business, I called particularly was sold out most pay we've new prior card before accounts call corporate the of revenue to core from think somewhere, that XX%. virtual the in year, the XX% it business, the

revenue but contracted XXXX. XXXX of sales not is from off the So driven in implemented

second So way, of still question, on March. your we're in all I'd this thing us say surprised finding our right? So

have and can't large right? We we're it to. a marketing changed, You plan plan sales and shows have and closing used trade and got we not visiting accounts like

this how seems say, rates close, just kind high, is being these or do, call right? been the it people. to what but to in I'd if is to unclear receptivity appointments. What contact people We'll times, into can taken have hands time sell, the there's how they're like the And marketing a taken these say we of think I'd are I So repositioning call, okay. contact the have more people and still their some days of on kinder of XX anything,

So yet. we'll just know of sales thought, fix be have sales in a in where I'd are whether just to or on kind say don't we way say we be probably softer. going done a XX can whether I'd days, different

trended any through And just wondering PPP think just expect we work Eric, hoping month-to-date, customers? payment through and of starting just comments how appreciate as But then the to some was your may or your the losses Thanks. if maybe really flex whether Okay. on on earnest, then with change color where April, in about we in seen need after smaller to trough the QX? fleet you've hit, losses as in credit, up in actual that's more patterns And No, just we to to loans remarks. prepared especially in I helpful. more that's delinquencies either credits get to some come

Trevor, Ron. it's

and it's the good surprising would me second thing Let let way. the part. so I to a then the first I'll in comment on take most far, and say surprising Eric part us

So can this imagine, liquidity thing student and collections. to we did you hit, when work body on right credit

worthy, we've so range going aging. that and a at got rates then looks delinquent roll system trip people And how monitoring

And businesses. up way. I'd say have in it's but that benchmarked it's all so our up, of any in so not up kind we of meaningful it's say I'd

the the be stimulus we've So hey, it phoenix gotten Sand too this did money kind good. looks pretty actually said the credit is, going call that the new the get The assignment that, from how okay. now, are in spend balances risk point dropping, to and of collections early benefit through look? But makes prices. this it thing, me if fuel and and fact it to it AR obviously, between the And our on last a we're smaller smaller. we Hey, you lower volumes to effectively lower stock. and

so sand, thing, this, far, So say I'd this one good. the phoenix on so

seen going it And dramatic billion. end to that little the thought look worse. year, worse. magnitude lot. then at the it's particularly so progress two particularly a in March. well, at $X.X at bit kind little of nothing look a moved and April, week-to-week, Brazil we've AR in balance buckets. he the as really $X.X AR changed the indicated, I of AR, of some And And We've about had that, Obviously, a have about fuel lot. just at kind nothing to Trevor, down add And track we of to our billion at buckets, in of it that But if the this in of of seen we hasn't tick bit we're SMB at is billion, of of up was you to kind closely tick of look been be. we a we're we in US, is balances about We the again, very whole aging to exactly what end these aging the $X.X aging a which a don't the end obviously our points, And know, in surprised Eric. some the Ron the category to category, a we little in it the Yeah. take and up little

of AR risk remaining the AR we sheer the that because the the better is So getting just amount profile of outstanding have. also of

I all, pretty good in think in all So shape. we're

were take practices, on some of we And the I sooner. we things, have first it. reserve do pretty lot collect a think of done and we're money the that things some did eye and changed a we'd bit some the to close a keeping at to conservative our end we've of of quarter

to place. off we're okay an I So think

just banks me don't let Trevor, we terms and compete like add, thing. with We on other And compete one people.

the So quality a and convenience the company we had a the for on time this on in on products tech and to compete long product. of

we short have terms our daily, And daily, of I so book, insured. weekly. tons think, of have tons In we of Europe, half is

on So debit we we tons where collect have carve internationally basically the we through, pull money. direct

kinds small range, the X% you've And of trip those got so very, rates in very in delinquency. cases,

this set again I So old structurally when up. we how thing intently of a month book when we've ago feel we studied got the our pretty good think started,

I It's the guys. color. appreciate really Thank you, helpful.

now Stanley. We'll our Wald with Steven take Morgan next from question

Thanks caught to expand Are or be in of other you out landscape this own you're in areas. could if maybe to you your with all, and that or start here. payments. high up and of for taking to be And your this as to corporate expanding? expand since starting of other payments, you areas you if been maybe solve terms the and could corporate my in we three opportunities has inclined But maybe there M&A actively about evening. at offering serve you months watching level, across in where of some less that out we good at in you the it ago? changed Maybe never or disruptions the offerings of you payments looking a at maybe of what if you're on today want Could higher it any talk watching terms and opportunity about areas. feel for the experience changed corporate downturn sort as can Ron, for, just the question. talked you And side what BXB the opportunities looking

we a of is I business or expect the is of a might of next context lots the spend or IT that good payments lots that It's in year over the question. and trends sheltering great No. COVID and place. this reason mean, the corporate two, payables And leases the is think or and AP, fixed, stuff. contracts

to turned bills off. have paid get get services so or And

a corporate added more. stuff bunch I'd I'd and say anything, we've and pay if we to for if even it so years, like it. invested business it And say, of and like built this five we anything,

probably forward is. Maybe stays the it stays a where versus more bit, the a I little bit think kind of mobility of whereas stuff. AP defensive kind it's going depressed mobility

that anything, So elevates segment I'd for higher a it probably us. notch even say think, if I'd

Understood. growth also quarters that the a about with payroll eight, last quick bouncing slide, the I services. think of But card trouble you corporate restated the and prior last to follow-up. XX%. growth of disclosed don't terms to that slide guys looking or talked from your like called in Maybe you sort you segment you back from there, to not. think just of that was area know you the the out I prior adjustments? in payments I I out those that What the was quarter ex was disruption year's if looking pulled a

Eric, do you know?

is But some. if in Yeah. revenue. in revenue to so was have that. XX% down my on the brought have looking business, did is rest track guess, a if probably XX% you circa chart schedule. know, we card it XX% I off number payroll stuck Trevor, don't the again, for I'm of the volume the I range. business down number. know in Yeah. for I And it April, a would think it's the payroll I it the don't target that the

get what in with first was the to quarter. it you Steven, back I'll

Okay, you. great. Thank

Christiansen our We'll with next from now Pete question take Citi.

for know fleet was I I job years Good wondering fantastic And there. Ron, to plus the the you of, be in would small perhaps thought last terms experiences share credit ago, guess, downturn I guys. just was of on small that XX from different least the fleet thanks it I back at and but wondering great in if some you company would had side, you. you conduct, side, the you, hear Thank from helpful. just FLEETCOR is completely a if the that attrition could

this Eric. is Yeah,

are If comment which XXXX then. 'XX. I were we a you back look 'XX, business, But and what company on mostly fuel your the in little today I'll back mean, we bit and to a than we is different to completely XXXX back point, had

So we when volumes soften we that into pretty were downturn, did significantly. see

So high. same-store saw ran it digits, was don't a we little the kind Bad up bit. in from of squeaked kind of sales in And the debt so peak pretty debt, I mid-single back of probably remember probably exact high numbers, mid- We to softness and the it kind but XXXX basis its in at then. teens 'XX. basis XX range point bad a XX, it in escalated point standpoint the to

card then. the of in fuel segment. debt still business kind kind volumes in That's the the down of we kind doubled have single bad digits, the of So that high

retailers you have Are what partner changes be walk there Can That's I a of availability is a if there business, been or that does high-profile us breakage as you then would funds? helpful. look like Right. card couple through And lately. of gift of that? at happens filing helpful. in that the Anything

Ron. It's Pete. Yeah,

don't will, system, we manager. we really We're right? much move really retailers in if mostly risk you program business, So and accounting a for take money, don't our because gift an credit

one credit the place in where that risk shipments. So is card there's in

If put or on give to so card we if you're the it to and one us and at logo to it it would send go the the we order, whatever, and XX you, Macy's be pay make Macy's you right? the it stock to we you you card XX place, so have that then So and ship March a Goods on us Sporting March don't. and and maker take for that you, you,

And so our is that that the on thing stuff that have guy good pretty that chased news all hit. when hard business this runs

of put those many of shipments very notice least We're kind we now, challenged going very, to right exposure, little him fortunately. I that have at So again. a we're doing to card things not term. short of lot And retailers, not do on

we're So probably place pretty good I'd there. in a say

Right. Thanks, Ron.

Ramsey next El-Assal take We'll our question with from Barclays.

in have and kind end the are of That broad know hunker just question. you you feel marketplace? in very that any teaching going investment? bets product you of questions. terms thanks taking could on, that's But crisis guys. are everything out of you term a reassessing your thinking where you terms it's I invest there where contemplate geography. terms it the on changes line, down future? the be there will lessons of in sort come And some like across might be Hi, of have Are might with or longer it's look in of Or what place priorities the Ron, other is trying to relatively do intact? business through we changing today, my given kind business you that if for in today, that this could you'll more

all could like Ramsey. in I look we're That's call, I'd processing this think will yes, I world future a be, what But question, say, for think of No. what really months, be changes. the months. the six like good three on there'll sure, us

with the we're On the employee fuel, and things. portfolio happy say side, categories toll like then kind that things, of the three super obviously, payable got, we and four card lodging the the I'd we've

there's businesses oh, less. like in nothing So where I'm going I those four oh, the like go, we feel to

said comments. in my of I some As

lot going our actually what this by is around the I mean are those a like functional be our changes And policies side. credit. our My thing. that on I is will some categories constructs sense of to of be helped think and by that

around approach Our selling. is

full part time, around is approach Our time.

if world thinking the that stick still in a with this this if stays it I now back might this say, things there's learned think we've lot there's goes kinds we early. the it's through or we're going to world going of world I'd of way think to be all way was, I some even

answer. better be have stuff XX a I But sure, that bunch in different, we'll ask question there we for you sure. think of a days, again do If for will me

if of terms give your Just missed Okay. same-store you the of also, a could same-store was sometimes wondering bit this out side. performance? I the businesses you us parse some And me I within verticals can before, on in forgive underlying but little sales on of color and incremental sales

but there I'll Eric the last tell drop is right, all X% a was of lot Yes. weeks. obviously, kind two that the

a like that given obviously, that April that rock, So data you. dropped shown the means we've

is what's volume I our people that to taking So just want softness prepare down.

you So different you're going to to... hear number want But a QX. much in

just by offset the overall, the Ron saw saw the little our saw includes X% you as can payments two, three X%, to happen I month What soft, TA of the which business that also was Yes. additional came was clients as because and there softness we also a strengthen X% business, we don't was to bit range. a But that kind up a little up Ramsey. bit of was we in have the soft a indicated you last imagine, was lot which probably give was, in color, a bit Brazil and March. that actually the X% in added. mean, that overall little off of lodging in the of we've we products our That But fuel that that forget, corporate weeks and well, soft. was business, strength

of would that was it So where well. but you the and of kind it's a as would you of mixed bag, strength a thought be think softness where kind be bit would it the

Thanks terrific. guys. much so That's

Evercore question ISI. And we'll with take from our David Togut next

revenue Thank customer been the you high XX% has the historically appreciate and Ron, I a of squeezing XX% for business. of to strength thanks it. in. me retention

XX.X%. the at first closed quarter You

can into the in trough, you look XX% QX, maintain to retention likely revenue which you As called the range? customer XX% as you've

question. it's I'd know. David, we a good say don't

the rate casualty function be to honestly clients our of what help in bit I think and BK a it's of base. a the going among rate is the client

And retention is function of number lot the so mix. of a a aggregate

the type rates growth very versus like payables retention growth, and that then size, of have We have based small of even kinds enterprise businesses spend of different on business clients.

businesses be client in then already where credit. I So I have answer. represent probably and guess business, more the casualties it our will don't we'll is go out lower base likely because which the of know

per of weak, revenue business a of year, that to having if you is X% client. closing, not said, hey, the getting XX% lose simplistically half the or third again, the getting the be creditworthiness our So business the or business back, we business

guess to in yes, is So the my that's quarter. probably going up go some

thing, this to once get you we us there's through that would that that again, lower. Now me get nothing that base, take structural concerns

I Understood. see.

apologize final addressed capital quick if a you I and question, allocation this priorities. but as Just earlier, looking at

in of first the You $XXX stock million bought very quarter so back you're active.

$XXX at be you share Or capital? left on come down? in Do seller Will million the possibly looking have be repurchase deploying husbanding mode You acquisitions? you expectations will the in environment, more of authorization. cash toward repurchases more this

question. mode. good another Dan, Eric we're let preserve say Yes. a But comment in I'll too. I'd

on or until are heartbeat are we Board, other in cushion the a liquidity. of and precaution. Board, this I other all see that the see told kinds with of We side We the We want the side. we agreed maximum company want a the the got

not two. back or next will buying shares we quarter the be So over

we're pattern But this, On little I'd sooner the of whole I bit comes later. like probably think, we that a for a on side, other a a in there's side, of while. I might the out pull said, if something deals bit unique than the trigger say

stay and healthy. safe and thanks Understood,

too. You

no conference any presenters telephone closing additional or remarks.. back like this time. questions to at for are there over our turn further And I'd to the

the being for on call. thanks Guys,

Let any you have Have night. additional anything else. you a good if us questions, need if know

again, does And all your presentation. once thank that for conclude participation. We you today’s

disconnect. may You now