Q1 2015 U.S. Fleet Card Issuer Performance Snapshot

Navigator Edition: May 2015
By: Brian Rutland and Jacob Armijo

As the only two fleet card issuers currently publicly traded, FleetCor and WEX financials provide a lens into fleet card performance.  As shown in Figure 1, First Annapolis tracks various metrics to analyze the performance of their fleet card programs.  FleetCor posted significant growth in the first quarter of 2015, primarily due to its acquisition of Comdata in late 2014, while WEX’s performance was impacted by decreased fuel prices.

FleetCor: FleetCor’s North America revenues, excluding the SVS business from the Comdata acquisition, increased 4% from the three months ended December 31, 2014, to $256 million in the three months ended March 31, 2015.  The increase was primarily driven by the impact of acquisitions completed in 2014 and organic growth in certain payment programs.  Revenue per transaction, excluding the SVS business, decreased 2% to $3.07 from $3.13 in the first quarter of 2014. This decrease was caused by lower fuel prices during the quarter versus the prior year quarter, partially offset by higher spread margins, and the mix impact of the Comdata acquisition, excluding SVS, which has revenue per transaction products that generate lower than the historical FleetCor average.

FleetCor’s operating margin decreased 17% from the three months ended March 31, 2014, primarily due to the impact of increased operating expenses associated with Comdata, including increased depreciation and amortization.  The decrease was also a result of increased stock based compensation expenses and lower fuel prices.

WEX: WEX’s Fleet Payment Solutions revenues decreased 5% from the three months ended March 31, 2014 to $128 million in the three months ended March 31, 2015.  The decrease was primarily attributed to a 29% decrease in the average domestic price per gallon of fuel in 2015 as compared to 2014. This decrease was partially offset by an increase in payment processing volume related to the European fleet business as well as growth in the WEX Telematics business and additional factoring and late fee revenue.

WEX’s operating margin decreased significantly in the three months ended March 31, 2015, primarily due to increased operating expenses resulting from, among other things, the acquisition of the Esso portfolio in Europe and organization restructuring costs.

Figure 1: Fleet Card Issuer Performance Q1 2015

Figure-1_-Fleet-Card-Issuer-Performance-Q1-20151 FleetCor revenues are for the North America segment only. 2 WEX revenues are for the Fleet Payment Solutions segment only. 3 FleetCor revenue excludes SVS business from the Comdata acquisition, calculated by taking revenue per transaction excluding SVS ($3.07) * number of transactions excluding SVS (84 million); Total revenue including SVS = $298 million. 4 FleetCor transactions exclude 301 million SVS transactions. 5 Charge-off values are annualized, and represent the entire business. FleetCor Charge-offs include international business. FleetCor Charge-off calculation is Write-offs / the sum of Gross Domestic AR, Gross Domestic Securitized AR, and Gross Foreign AR. WEX Charge-off calculation is Charge-offs / AR. 6 FleetCor Operating Margin includes SVS business.

For more information, please contact Brian Rutland, Associate,; or Jacob Armijo, Analyst,, both specializing in Commercial Payments.

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