Corpay (CPAY) 6 Aug 192019 Q2 Earnings call transcript

Greetings, and welcome to the FLEETCOR Technologies Second Quarter 2019 Earnings Conference Call.

As a reminder, this conference call is being recorded.

I would like to turn the conference over to our host, Mr. Jim Egleseder, Head of Investor Relations for FLEETCOR Technologies. Thank you.

sir. begin, may You

and and quarter for me XXXX our Executive Ron everyone, Officer. Chief for today us our Clarke, Officer; Chief and second earnings Chairman Dey, thank afternoon, our joining Financial you today are Eric Good call. With

into Ron is get only for the will queue comments then opportunity from will questions. an Q&A open Eric, that and Following for operator the the announce to the It session. queue

information section found Our be website of at income companies. of earnings in information information including This the Relations and net our non-GAAP the release press net reconciliations conference presenting calculated will to other and financial with diluted previously adjusted historical on income and not today's information, directly our be fleetcor.com. website, appears may in accordance we as information under this can financial non-GAAP described. Throughout adjusted comparable be at revenues, share. per adjusted release GAAP most Investor and Quantitative is than GAAP calculated supplement call, non-GAAP differently

and providing We GAAP both the reconciliations. basis along guidance with on also updated XXXX are non-GAAP

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

on on Form Securities today's available in website Some documents on annual and of Commission. seC.gov. with the on are filed our XX-K our release those X-K are Form These risks and at and Exchange press mentioned report

would With Chairman our call turn Ron? and the CEO. that way, of the to the Ron out like I over Clarke,

second QX beyond on afternoon, for half; cover on quarter our comment joining Good progress preview first, perspective I outlook I'll and third, earnings call. second, thanks subjects: everyone, here, and our report our on plan to results; for continued of the lastly, second Upfront the I'll my I'll strategy; a bit four Jim, acquisition Okay. the front. our thanks. provide I'll

Okay.

than revenue on On our XX% million results in basis, about cash up revenue $XXX like-for-like a We scope EPS expectations, we QX. So our since EPS revenue organic to $X.XX planned up was coming like-for-like of topped nicely also QX. XX%. the up we what reported XX%. basis, accelerated and XXXX. million, midpoint quarter cash macro and million organic marks and cash Both $X That QX approximately to and revenue constant XX%, EPS EPS, in XX% $XXX or higher constant growth call growth revenue highest overall range. reporting our revenue of guidance Notably, in better in the revenue started and than cash up

pleased. quite we're So

of that, growth card fuel X%. organic was Inside our revenue

in each business, In pay XX%; our And up our growth card In nonfuel tags, which spend, corporate quite our good. those nights XX%. exceptional: of revenue, up toll of toll, up lines drive up active XX%, nonfuel XX%. The up business, virtual corporate three XX%. pay, Our X%. room X up of were all lines volume SMB lodging lodging, in

strong very So volume growth.

continued quarter quite good. Our trends in the

versus bookings, year. prior new or sales up XX% Our new

XX%. business at client continued retention steady Our or

segment. X% softness largely in at Our same-store our gift the to sales among came large in retailers but minus due

been store would a push. same have gift, Excluding

over revolver $XXX now million brings sheet, liquidity July Our place. upsizing to in billion. $X good very Xx, balance QX leverage term loan finished our a about and our of

to positioned allocate buybacks in or acquisitions the well second half. capital we're So either to

of growth in QX, quite of X organic summary, XX%. Very in nonfuel one businesses. growth in quarters best the time. volume probably strong So revenue some our Record

And Continued guidance growth profits the top retention of range. above our trends. QX positive and sales

Okay.

outlook for transition half. to Let the me second our

when organic we're better range. rest going time year to to raising cash of growth in unfavorable today, more parts we acquisition card and a interest of confirming last at of $X.XX a that bit growth lower a count So moving last reflects are expecting QX the $XX.XX overall kind revenue XXXX revenue forward. slightly We're But spoke midpoint. driven by guidance offset XX% share full to by year those X% time. contribution or expense than deal forward SOLE same will and of There EPS than our when That fuel assumptions likely and of year. guidance we guidance. macro spoke the higher beat be We're going rest number

So look, all effectively take these when of items net impact. to they in terms year rest zero you together, of

anticipates reminder, sequentially a as rest revenues Also in profits. increases big pretty our year of guidance and both

Okay.

transition of our me to update Let over beyond strategy. an

and can our to idea, more lodging clients the This increases network the to clients and in spend card us the things. they to our revenues us. purchase in utility with up offer reminder, toll opening existing our incremental simple: and the adding results locations by for which quite As a spend fuel, programs or opportunity of

added quarter. of our This we So count contributed to approximately brings set clients beyond X% fuel growth incremental X% in QX. beyond beyond fuel, new here client the in active the in to of revenue beyond X,XXX That clients fuel our X,XXX. about U.S., fuel

seems adjacent mobility us to do idea like we We're our us. a coming from Still added account network. And overall In our with ago. targeting our purchases of new locations initiative, eligible network lots clear quite about months single about the we and making on lodging continue to beyond Lodging. about of couple So monitor and XXX,XXX do. our a expanded fuel clients of in X% proprietary business half to clients captured room to June, XX,XXX hotel of But trends the that card XX,XXX nights existing supplier helpful. the credit to fuel starting be carefully. it

hopeful year forecast, on network expanded X% we're lodging to add our that incremental the of growth about revenue end. could business based our SMB So by

growing. XXX,XXX for tripled our XXX,XXX network in the locations beyond initiative, to had And March. we've June, gas Brazil the instance, expanded toll, adoption network locations of as and and to transactions At XX,XXX in In drive-through our we about is over grew approximately transactions station XXXX McDonald's, at in now the exit transactions X,XXX nearly we acquisition we're terms time today. in expecting That X,XXX of December. from McDonald's parking,

in sales significantly we from urban added user We QX. signed big a That's X,XXX importantly, call of So our are Very approximately QX. also in up nontoll, that users, growing. new what urban tags we pickup. or new XX,XXX

conclusion the the gaining traction. is in Adoption's contribution business, So growing. accelerating, our and revenue every beyond is strategy new

touch acquisitions. on our acquisition pipeline. that is two SOLE, the up recently a Nvoicepay Last we and transactions closed, and also Okay. update on I'll brief provide

last to card, we we every payables, And announce or XXX% for on our earnings help clients strengthen of in acquisition deal, full that that call. even check. Nvoicepay, ACH, their rationale in IP, were primary So via payment modality: that's delighted monthly again invoices. which pay integrated paper The our position supplier

our owned outlined transition $X.XX the So dilutive we've QX Nvoicepay. progress the accretive in It's on that SOLE in to Nvoicepay QX. approximately we at Payroll grown payroll XX% about about SOLE, and first is and we made we size tuck-in. of advanced card days the closed We've payroll synergies annually. has July card revenue acquisition we've from that XX X/X in existing the X. the a Card expect good SOLE historically close, business

add-on as it a an like reasons. for we couple So

distribution expect combination business platform via existing as that our ratable in segment. partner we consolidate then SMB to our And complementary further our developed to synergies that it's more it's or First, we processors focuses it the with sell second, accounts. relationships. penetrate and channel payroll existing network And significant bank tech and a pretty SMB on

be So in expect to SOLE XXXX. accretive

tuck-in pipeline, acquisition in still one liquidity them. plenty pursue businesses. of each terms and In earlier, lodging opportunities, mentioned close pipeline, of I We've to got three And pay got fuel, corporate as our we've active. our

of in very and with So again, ahead QX a profits expectations. closing, good our revenues

planning step-ups We're revenues year is of and in rest profits. sequential Our outlook good.

The Our both be We're capturing those to hold. of is expect also accretive adoption, progressing the acquisitions, starting earnings. becoming accelerating recent contribution, Client beyond of to two more XXXX and and synergies nicely. integration strategy to deals meaningful. take revenue our

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

and you, Thank good Ron, afternoon, everyone.

net the net benefit sale the quarter second million. in $XXX.X to our the company Masternaut reported XXXX. investment million $X.XX quarter from quarter Masternaut XXXX, our XXXX. income of sale recorded $X.XX allowed second of numbers $X.XX revenue $XXX XX% income loss the Both quarter to these income share reported a capital For diluted per the XX% income per from in second to compared million NexTraq XXXX. sale impact increased recognized from we to against was XX% GAAP benefit of offset of diluted of of And of in the million, $XX million of the the which capital with GAAP to of The previously share. GAAP net up increased net a of $XXX.X associated share of tax gain investment, the GAAP third and include of per in $XXX.X the

for our to the income is the income share, X increased And income income X% that discussing period to provided the press compared reconciliation quarter share net net million for in metrics diluted $XXX.X be adjusted $X.XX net $XXX.X second we'll $X.XX XX% last of which financial second quarter million adjusted compared Adjusted in per to the Exhibit diluted numbers of XXXX. net share per GAAP net diluted adjusted release. adjusted year. Non-GAAP per of income to same are and in to XXXX in increased

year-over-year of to and had calculate were was although the the a environment rates of $XX impact our compared line second of quarter we to reflected quarter. Brazil million $XX with due it revenue impacted about in approximately a The in spreads the results XXXX, quarter due which quarter. fuel negative quarter, negatively And finally, these in million we impact year-over-year changes, precisely when impact primarily macro believe unfavorable better $X we to the cannot from Fuel lower U.K. in believe foreign in with the was Second second and impact the prices exchange by revenue, favorable million negative million primarily positive expectations. rates slightly macroeconomic $X approximately the

macroeconomic quarter. revenue impact the major second growth adjusting in XXXX, our during businesses. our growth the of all solid in quarter Chevron for was XX% after was out deconversion card card driven well categories and the fuel business product growth approximately by performed of X%, and Organic most Organic the of environment the fuel

our both of contributed during up which in was business, The fuel grew grew and about beyond of payments well in business, perform was to quarter, driven approximately corporate growth. initiatives by growth and XX% XX% XX%. continues the X points quarter. card category our cross-border The Our organically payments the which excess in corporate virtual

up by Our more toll revenue. and primarily sales, was tag initiatives XX% toll new rate driven business beyond organically, toll

Our emergency-related $X million approximately roughly and you second lodging business a would of print XX% basis up was from adjust XX% have if XXXX. been the up out quarter on in revenue the

in very quarter. the So strong very another business, all in all, resulting for organic in quarter our nonfuel good growth performance

income XXXX. to operations. were Total quarter primarily The the the down X.X% with in due growth $XXX.X of $XXX.X up million to moving XXXX the Now quarter and for was million expenses our second operating in normal compared increase of acquisitions statement. second

late Included the percentage second $XX.X or expenses XXXX basis XXXX. points due in second U.S. As to second revenues, losses in quarter operating in were transitioning begin XX.X% X total basis stations expenses primarily million and card of in XX.X% Fuel XXXX. were higher-than-normal fuel fraud are The losses businesses. our for and million to X $XX technology compared the of improve XXXX. the in PIN as operating quarter of a card quarter chip credit fraud or credit to points of approximately should U.S. of fuel compared losses to XXXX

buybacks completed expense the in from of $XX.X to The due Depreciation recent of the to throughout in increased in primarily second and of quarter XXXX, to acquisitions primarily XXXX. million $XX.X increases increase compared impact million amortization due was interest second LIBOR. share expense in of XXXX. expense XXXX and increased the second quarter the The million in Interest $XX.X for X% acquisitions additional increase million was XXXX. quarter borrowing in to $XX.X XX% to

second for quarter rate XXXX was to And to of tax if the second XX.X%. our tax of the XX.X% compared have effective quarter benefit the X.X% negative XXXX. related Our sale out adjust effective for a tax the would been of rate Masternaut, you

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

billion revolver loans XX, availability. undrawn our on approximately $X.XXX term of million and XXXX, As in and $XXX June had outstanding we

$XXX completed of the of had our million We Term the to facility securitization of a quarter. also in end end million upsizing $XXX facility. A Subsequent loan at the the borrowed our quarter, we

We use funds facility now $X.X we repurchases our credit stock. to additional revolving availability. down share the facility. these use for We initially of pay acquisitions billion will And the funds and to plan future in have or securitization approximately

and facility leverage As June purposes. of which corporate our ratio cash temporarily intend pay credit the calculated and securitization covenant excess use We acquisitions facility below level other maintain is balance XXXX, future XX, on Xx agreement. liquidity down to under and EBITDA X.Xx our to our was of well EBITDA, for revolving our credit as our flow

CapEx quarter during second million Finally, the in we approximately XXXX. spent of $XX.X

the update for XXXX. the outlook onto for Now

First, midpoint to in SOLE at Financial, $XX our quarter early are acquisition our July. and revenue raising year second the the full million which reflect outperformance we guidance of closed

the also acquisition of tax net reflect quarter addition are quarter impact and our GAAP Financial. We second guidance the of benefit the Masternaut-related beat net income the SOLE share our in per income to to diluted in raising GAAP and

diluted raising to to reflect share the adjusted are our quarter compared We our at per also results expectations. our by to income net midpoint guidance second $XX.XX $X.XX

moving we year Also, few in guidance. a balance expect of the parts our

rates. to of For slightly fuel unfavorable worse our and impact expect the prior due to guidance foreign the prices exchange we primarily balance than be macro the year, lower

slightly year. higher the to initiatives balance also the which slightly impacts and primarily due impacts implemented expect Partially the share shares. will over acquisitions, favorable LIBOR a share primarily of lower interest offsetting interest increase our price, calculation in of be count to fully impact which of the diluted expense planning rates an will be due We and accretive these

guidance. net in our balance of earnings to our call and total, second additional quarter puts the regarding in Please of terms guidance. these So information taken zero year takes on impact our to financial for supplement refer

the be net million; $X.XX; guidance $XX.XX. per net million and be to and billion; income of $XXX between out revenues to adjusted diluted share be billion $X.XX income between share income be is that to $X.XXX between with way, to adjusted between income net and $XX.XX diluted between follows: $XXX and billion billion; So $X.XX net and our $X.XX and be total as $X.XXX to per

in in Some the the of below of of XXXX in fuel; the retail preparing fuel balance made U.S. the we to following: for $X.XX includes those assumptions weighted guidance price the spread not partnership July average; year rates material equal disclosed. the the already the tax have and market of exchange to businesses to XX.X prices the of per related slightly gallon approximately XX%; of as for sensitive XX% equal to or the XX, average to million outstanding; foreign agreements interest to million; no diluted XXXX; acquisitions a day million $XXX seven average between new impact shares fully $XXX expense rate movement

third XXXX, adjusted of income we the expecting of net the range share quarter in diluted per to for finally, be to $X are And $X.XX.

open said, for that we'll questions. with up And operator, it

Instructions]. [Operator

Our of first question from Togut ISI. comes David Evercore the with line

half some With of the XX% are that guide expecting just for X% with QX growth in you the conservatism? revenue and your back revenue to organic Or growth in organic is XX%, deceleration year? staying XXXX at

of have this It's our things. continue like businesses Yes. One, it's into second perform, obviously, actually accelerate is more Eric. get I the we tougher to a to expect Dave, comps. mean, as we couple we half.

the business in half well. accelerated our second of year last has So year, the as

growth tougher organic an but growth overall expecting comps from again then perspective. we're accelerated just So

gift out, don't also which We've second call Ron. got great looking we not to other, the those David, and be in the the super it's half.

still the probably lines, X% So nonfuel double to that digits in for XX% number.

XX%. any then the in just to specific there, from It it. like growth the corporate And on seems up you're back cross-border payments Got starting assumptions benefit half?

with start QX could the QX. Yes. and They still two probably in

Got MasterCard what second in for quarter? the the rate it. fuel the card growth And then was

it Hold up, on We're one second. looking Dave.

I if in low was the think percentage, I... XX it

still up high. was pretty No. It

at look we'll that... Dave, So

call I in up includes circa, business. front The it QX, Dave, local the for our of XX business combo, we and don't me, the have but which business. looking local was MasterCard. in that split It I'm at Fuelman our it's range.

a just The we final the And in key XX% acceleration question. in drivers it. quick sales growth Got in to bookings quarter, that any QX? what saw new second from

was mentioned I that two All years again. rocking payments there sales almost was page. Brazil, I'm corporate or looking up just were again sales ago think I good. It The XX% And launched channels the the prior at pretty over we year. new blockbuster. three the look

that's just way, So way up.

say the two those I'd pulling are So the rest.

of comes Huang the from with question next Our JPMorgan. Tien-Tsin line

the So you with started anything. with just of can hitting it's curious to, high like fair up, the said, reporting you growth that you on across of it would up, you It to new say seems since sort organic the there? to focus what greater lot you I'm organic broader like Ron, organization revenue Is want sales stay accelerating, a metric, if and Just you're to that if right areas. it retention point accelerating? attribute

Yes.

a it's it's I'd a mix things. good couple obviously. question, One I think is Tien-Tsin. say

to bigger lines your So makes the less bigger done deals we've because that knitting months. grow. last And have on TAMs the XX the we more focus businesses big with to point, had, XX starting in here then having nonfuel right have second, me,

today's things have I think brought both of So in those focus more business.

your to much maybe exit beyond a have And I the now. how front, just we bookings have that and Could curious, you target get better? I'm it, bookings rate? on know. initiatives? of to Do much then know assign X% asked for Good David could Cool. the You

se say new per the don't a sales of for our over it the up, step But We call into It's beyond quarters. next, the I'd or of things those to a bit actually again, hope two manual kind is buckets keep yet. call book bookings it, system. point another Yes.

the XX,XXX going the to here. mentioned, we clients fuel. second like under We're So to the half. still start first they're We're turn building, XX through other as attention to beyond I We're chasing the our to on move up just X,XXX.

the So stay on beyond tolls, same more, Hopefully, the lodging. same on tuned. beyond

getting clearly, progress. keep as picking stats definitely more. to it's few of contribute So I give up. bases it tried But those should a that bigger,

And on That's one, payroll. Okay. last just quickly useful.

back your a there, that just bit I'm going focus think just little roots the corporate potentially for to bigger it Or your I Ron, really is enhancing payments outlook? a curious, was company?

Yes, that space, number We're product. like a consolidation. payment of employee it of another a not might be. assets processing ADP, again, all in given payroll kind la because there's those We it's and independent

I mean into that. key But work processors. bid be got some could we may the sales obviously, a that I it's get this like liked because SMB, it we with here. think So There which And payroll model we Tien-Tsin. to one like, it. really we it's on, trigger to pulled processors, loose assets XXX%

that like mid card space So more business in the idea payroll of we building the in than the large. or SMB

the and the really just being lot, a because So of it that we could we business. it synergies bring we liked afford could in

head little nice like. a direction that helps a it's So in we add-on that us

[Operator Instructions].

question with next Goldman line from comes Jim the Sachs. Our of Schneider

incremental was color X points more maybe could you beyond on quarter. for said wondering I fuel. last it you statistical bit progress a throw little I was the if believe

of in or on that the uplift exiting this on last quarter, spend about taking clients the you X about us -- kind to quarter? to give the of about that confirm the additional up offer, sense of said you XXXX? just points. of more you year the kind And metrics think was are acceleration, point so any acceptance it or is XX% this Can of terms a kind statement that I of of to provided a relative statement X you

Eric. is Yes. Jim, this

base fuel beyond add the continue to customers more to of the bucket. We

We've beyond last eventually. acceptance again, So actually I I X,XXX X,XXX that clients that accelerating call, end beyond about of accelerated remember about in the -- that fuel the capability. still using from about to had example, the if acceptance think at the were said customers we at guess XXX,XXX as looking you of to an clients And QX. we we're

we're getting So to do slowly that.

we this category fuel so. least as you'll get I goal beyond At that into at or another that's So think accelerate XXXX, see by point. our point

to Ron, to it's Jim, just add it.

kind the fuel, So that use term beyond use of there's we that before when I mentioned under we we different think cases stick that umbrella.

internally a back clients we card, example, add try for right, when have and card already AP. let go call companion to that them we would we to card, So fuel the buy

third And construction different have go a to use fuel have use and the have then to driver put the vertical to we like case it to We literally try clients and of sell want when a out a twofer to trucking and the card payroll product trucking a construction card. company and thing on we go we when the as who buy debit supplies.

incremental utility So of cases the spend use every incremental those client, incremental obviously, revenue. client, the one for by creates

lift amounts the if last XX% And so by I of call, will, referenced vary, those applications. you in they the to

card probably range. in the construction card XX% payroll probably probably XX%, range, the companion the in is the and So that or card XX% XX% is

case. it by use basically So varies

we're think of use I keeping clients. is is everybody right? to these working, leave it's with Each building. We're message the adding cases But trying clients. one We're

think comment to you of my we're should now a of we up year, so Eric's is And as actually is But there's of comparison lot this period. it's it's the to growing, a working. And that it going saying, it, to headline next idea another get the prior like and QX points point. point, think adding, I call into, was about couple growth. And

maybe you're Or the Nvoicepay additional channel the on of and to of do saying corporate and desire activity comment whether overall the kind specifically things the channels on That's seeing comment some in software you're generation payments kind maybe itself kind lead the and of see then of side that the particularly space? about partners, And acquire assets sales opportunity. there you just and your you great color. giving sales of software talk versus have through maybe

Yes. working. they're I all mean I think

getting Our much I business, the side. own we're on marketing better direct think

So teeing more softball, more leagues. we're up

that's reasons direct our one So of growing. business the is

of lots in partners, channel our investing respective know super. think money They're ones guys doing of that I the some their are are that channels. private you really

we're getting doubled Same of their business. So after and We the investment on larger benefit in thing growth. our the sales down FX accounts. went

we're our the numbers seeing in So that the per that even dollars if -- the account new sales account account now up. count is same, the way are

business, and idea with an packages, ADP to stuff, serve of construction this and of So the I'd fashion machine their board. accounting so corporate partners part that of is idea couple model our in pay selling in whole ERPs, the there, of leverage that is joint working Nvoicepay working dealers this have working core car a pay across which And working is integrated the well. say the quite almost we big with ERP clients

literally, the there. it's across board, So Jim, is selling the working

line Bob the from William with comes question next of Napoli Our Blair.

that currently A follow-up -- year. going to payments so opportunity level it is you what be -- that on drive surprised the But thought guess, mean of automation The of business me, that be accretive end of are not to are should at you that much you, business. the to year? accretive seems end be it the it Nvoicepay, multiples that it I sooner to is? -- big than piece, like of I the Ron, is you by AP how knowing large. to Should the be? Nvoicepay is investing the that the corporate And

Yes.

So not. more back our or or as It's or based for sales merchants spending grab we're to they easy is flipping I the low-hanging would presume IT the to we're contracts, trying dilutive Bob, fruit investments. synergies actually even take around acceleration. more It's half. move and second we We car investment. their that the down accretive from say, that marketing money penetration and XXX,XXX merchant lay on have don't on version into grabbing We're example, that get it up. It's is dial than XXX,XXX or that simple, can

point that's one. So

mean, turning you we try get that's Point massive. the ACH it's cardable payable it AP, two which or tran this. TAM all again something. of It's is, can really The the is business monetize something spend, areas, and per yes, half is -- the this or know of opportunity I fee into if to

not you about on a read into or what's shouldn't not any that that. understanding lot us accretion So comments investing

Then you mentioned I acquisitions side, obviously guess, to guaranteed that I are Or expect pipeline that M&A mean three But are, the should I larger transactions? close. have Or you are you expect to of how mean the close, the not before -- I on you -- stock? end you back -- we in be do of visibility do they some on those year? are guess, deals buying the would

the or the later? our size they on when number of There's timing. deal. of now pipeline, categories that the There's we're right? There's the tried comment dimensions, a to we Again, there's in. Are

sheets things, where along little to the far or along So near to way things we're term we a flavor just provide in. bit trying around in of we're where sign

have we're tuck-in kind on I things what close comment XX And next call, of that three, size, exploring my transformational close of as in hundreds of the not days then probably things some as in or $XX million. kind not that dollars, of will that are have are not pipeline in. always, near in that we we billion, not is either the millions would the So larger $X

guess, Eric, couple, year-to-date, of done we've three. I is kind headline like the three, So a

three tuck-ins. Yes,

think good after and enhanced in obviously something And liquidity, half. larger. you of you ratio one the probably think I go or would to we're as know, second spot more those given should two would our happen that kind things of in leverage a

and a tries on we're and to that the game we've to getting to basic improve and place business, them. businesses we're had time in So buy the a focus knitting

should you to expect So to we're try do continuing that that.

Our the with next Barclays. from question comes line Ramsey of El-Assal

I of to that think the type addressable incredibly multiple business, partner McDonald's in thing statistic I And McDonald's. this as McDonald's the Brazil. effectively beyond the tolls the that? were ramping results those of impressive. that mean mean is sort a we had should drive-through McDonald's of there? you threw merchants offering, that are of market you where wanted time is in the how impressive that think QSR the How like over about really like subsegment of I about ask about can market? performance unique In we just

Ramsey, Ron. it's

the I you're it right about think thinking way.

merchants interested parking are pretty press is, X on had and in base. this this idea our the obviously customer got we've So and users we've million that that fueling hey, are drive-through and

think I it there's as couple the has of a not shockingly, McDonald's. that more of every of parking, And in categories. added so three I mentioned, piloting. owned and lined we've those locations people this up first incremental whatever We've And fundamentally one been thousand fueling thing years

parking So we biggest up in signed the parking, next operator.

added Carrefour. we are we've talk signed about decent announced, sign out think we've got fueling, thing, on in the haven't we've all added signed there have install to idea. we've up four that I a that even but in we've teed And We've which three footprints. or more things drive-through, got as factory And Nissan two And more. of drive-through have other we in manufacturers soon with vehicles. it, and new same their that a where stickers start now we the as reaching kind

the McDonald's of people next set at what's drive-through happening to So proof built. gas a a concept, in key relay can you station the this is get of or I nothing to think when

message it's to it to -- again, early, working but and you expect it's really keep is that we out. trying the we're rolling thing the So give

about lot I -- of alternative Great. a to wanted the ask in in networks. That's terms a completely movement question industry terrific. separate been there's

announcement. Fed the got You've

both into moving all capabilities of the global payments and MasterCard kind kind talking degree. of got potentially meaning some even Obviously, mega of type about and merchants and honest rails. Fiserv are Visa FIS alternative to You've

possess You've the network capabilities you that thinking side. on Can terms most in that alluded particularly your that you the payments updated there corporate maybe path, comment of some run in have kind you might past those to on be lines? kind of alternative along the assets of

Yes.

digital. we beginning to the I said merchants think want from we this that get

call and they've of We've that data that on XXX do creating this built a business a ACH-plus funding rails merchants okay, some our MasterCard a merchants some say, the say, earlier we got up network. internally provide cardable, of we exploring. is of So the stuff bit and what to to network, only what and of digitize a some or those sign incremental to and X,XXX maybe some heads are idea we to when other so that XXX? we pay, scratch and we're let's we could And realize bit something merchants

it's a is think what I Ramsey, grab, we land And now. said

that and mostly But it Nvoicepay merchants those up to we're going getting cardable. on or of back particularly you XXX So over signing and first digitize the own should and more clients the with trying by with MasterCard. unserved are focused merchants time really as think network about our Visa

next from with Humphrey. comes Robinson SunTrust of Our question the Turner line Oscar

fuel if those seeing customers My you're on beyond then the existing is time. cards more shift just cards? beyond wondering fuel. to Are question typically other over cards And spend fuel-related replacing

it's Oscar, Yes, Ron.

the of question, first the on So no. part

So generally, open we cards. toggle the simply

on card we programs. have control parameters, So the parameters

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towards. follow-up a that about the Okay. or Do of on longer-term those spend you're are significantly? working beyond any think some enough, is and That's helpful. tolls, think growth the just would of about I -- question initiatives guess you marketing attractive fuel you maybe it's A just like initiatives high-level stepping given margins up

a Yes. mean I good it's think really question. I

give part to this. a me of answer kind let two So

gave the that anything, first for profit is, anticipates guidance growth. The the a if faster half one second Eric

and our print, half macro think at look think you print our if was X, our So I adjusted first XX. [indiscernible] print, I print was cash EPS

numbers guidance Eric those of the up. in expect $XX.XX, We both that gave, to go

XX%, a print output is EPS growth think of macro-neutral our which is I cash step-up in our XX.

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that take investment other or And are e-mails and search can longer so things some like you of like on and our forms telesales a that marketing button and then ones push like build. field words people-intensive to

hire just a in can't brand-new XXX You people quarter.

probably the answer up better. can sales that AP it faster still marketing will stepped extent is the step going it our in think Every in I we and We to be thing So somewhere we this corporate get pay year, investment. up between.

step my But won't to it we'll think is I continue go I overboard, again, message. we up. guess,

Merrill Our Ryan of comes of line next question the Cary with from Bank America Lynch.

way is there sense growth I'm business. it the a is toll to initiatives? beyond the I from wanted contribution still toll organic a just parse look is out the trying legacy When get from the to quarter, to on large at versus obviously ask contribution toll if enough business beyond early, in move we While the needle. the XX% toll to

us. again? broke you question the Sorry, repeat kind you up of Can on

to these mover. and momentum enough sense behind it be needle Yes. potentially we to there enough great it's large organic of kind I'm all just toll trying all if these a rate could move -- if overall for revenue to if when of get growth see the growth, not, the is large toll, needle beyond be a

people that category, to buy than a that are we're I people want toll mean, those also I toll really they continuously in the they fastfood, can that tags as over we marketing to using to buy buy of beyond over want our product parking. now an other first use million meaning that to investment actually lot toll sort and Yes. toll other as example. indicated spend I to have stepping and thing, want -- cards things the as mean roads we're product they buy Ron toll in the have they fuel And X think but like earlier. fuel don't up

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as which a -- well. Nissan, indicated, as And brand, directly for we're into install a major toll tags who's boon the Ron starting manufactured, obviously be some starting vehicle going to with car with to to us partner it's major is as the

some So seeing sales over we're growth start and going time to our as as investment increases up yes, time. steps in and marketing accelerated over acceptance

to we're more going So to customers. start to sell

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parking, probably company reason in if has every Ron. don't and XXX% less it's I'd again XX the whatever, covers or -- of all primarily add to every yet and hey, It land, obviously what there been than gas just drive-through. years. said, the it's is really say every every we Ryan, said. every XX, the in around, have QX, I'd X%, tollbooth you the toll And simplistically locations, station Eric

gas percentage of We stations drive-throughs. tiny and have

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people. in a to build We're And way mobility interesting network more a so these race that's game. the to

in both Was to kind more were assets? And payments the Nvoicepay, is process either of which to the of rate is of from performance strong and then contribution Cambridge Clearly, Got corporate or switching integrated there either quarter. of the of side of the it. business. of into the growth the very growth third strong Comdata is being both believe in stand-alone integrated? the any I Or this

front end, mean right? a against on I it's you But tiny. businesses the the weed. it's that grew about, problem is or two small, think like So I XXX%. grew Well, talked the other XX% thing it

standalone as help selling way capability got obviously, business, to and it. we've a So it's more

growing out because bought say It but I'd top the two faster of now. growing bigger. by was But are already you is headline the the numbers quickly quickly. and it, we core just thing way that coming that you both it's from So growing bottom you're quoting, before things we're called most

Got which know rates it. integrating Comdata But It due you're that caused accelerate, Cambridge integration I growth wasn't like assets? Nvoicepay. or the the to prior or to expand to

No.

and some sales we've done ERP both. Some the think of on it we've told rates. is. that you done side and It merchant Again, I things our like we the people things with some is there's

quarter. The a to things flat number minus I has over put sequential to thing So we said, moved the plus in of already. course like three from, of the two

number bottom. we top quite it's that just quoted. driving the So It's overall and nicely XX% moving not

comes Our of Peter the from question next Citibank. line Christiansen with

questions. outperformance, guys. two have I Nice

onto wanted some as gains strategy could And about bit you well? digital. front. quite initiatives quarters productivity lot that on last you're if to of First, I towards update a that seeing that marketing of talked you couple Ron, on the shifting of see the of extend what an just you kind have or beyond a efficiency

another question, global great which record yes. a were Peter, digital we of contribution. our sales XX%, That's up had Inside results,

in I XX%. U.S. now has the think surpassed digital

coming digital. then whole I started digital becomes into the to applications from sales new think our b, the And that XX% the seamless are U.S. of it's process XX% all to digital. we in crunch thing

unlike So dramatically we're I click-through, think digital can that way in And is way to enabling we BXB how to sort to around the step that it, more outreach between up science but I think And that last thing, -- over keep question, or still the productive. in the trying our faster room more invest because early and I'd people you can applications on in say then as still pages the years. digital I'd say the three as landing digital your we're still go. well and there's two, that still sophistication it

So It's getting more, more sophisticated. more better, runway I there. there's producing still but think

particularly in I lately, on helpful. shipping That's some And there's been the guess, some negative press side. then truckers, of the

guys there? what OTR. are on helpful. your That pockets wondering seeing Just you any of weakness be would And

our we of in and say But globally QX it in helped OnRoad sure trucking saw for beyond push, it a negative some negative. of X% here the growth a it we there. It's it or our I'd call we initiative, because think I'd more quoted gone our has I revenue have call business QX. in fuel partly sales in soft. same-store same-store business I underlying that call what saw segment. zero. actually It initiative say we Yes. for the

minus business trucking If was, minus gift it, that, or of call you kick out I our inside think two. card our one

that really seeing softness of industry kind the we're the same has. So

and this the a And call. the have questions. that's all day. we Everyone, for Ladies great time ends have gentlemen,