Q4 2014 U.S. Fleet Card Issuer Performance Snapshot

Navigator Edition: April 2015
By: Brian Rutland

As the only two fleet card issuers currently publicly owned, 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. During a period that was widely considered to have historically low fuel prices on an inflation-adjusted basis, both issuers continued to perform at reasonable operating margins even as a portion of each issuer’s merchant-related revenues are ad valorem (i.e., based on a percentage of the transaction dollar amount).

FleetCor: FleetCor’s North America revenues increased 96.8% from the three months ended December 31, 2013, to $246.7 million in the three months ended December 30, 2014. The increase was driven largely by the impact of the Comdata acquisition completed in November 2014. Revenue per transaction also increased, primarily due to the acquisition of Comdata, which has higher revenue per transaction products in comparison to FleetCor’s other North American business.

FleetCor’s operating margin decreased 17.8% from the three months ended December 31, 2013, primarily due to the impact of increased stock based compensation expense, the majority of which is recorded in the North America segment, as well as incremental one-time deal related expenses of $26.6 million primarily incurred related to the acquisition of Comdata during 2014.

WEX: WEX’s Fleet Payment Solutions revenues increased 2.2% from the three months ended December 31, 2013 to $136.4 million in the three months ended December 31, 2014. This increase was the result of multiple factors, including:

  • Organic growth of the domestic fleet business;
  • Growth from the Esso portfolio acquisition in Europe;
  • Growth in the WEX Telematics business;
  • Growth in the number of fleet customers;
  • An increase in minimum late fee charges and factoring revenue; and
  • Higher accounts receivable balances as a result of higher transaction volumes.

WEX’s operating margin decreased in the three months ended December 31, 2014, primarily due to the increased expenses resulting from the acquisition of the Esso portfolio in Europe and an increase in their provision for credit losses.

Figure 1: Fleet Card Issuer Performance Q4 2014

Fig-1_-Fleet-Card-Issuer-Performance-Q4-20141 FleetCor revenues are for the North America segment only.
2 WEX revenues are for the Fleet Payment Solutions segment only.
3 FleetCor transactions exclude 270 million SVS transactions from the Comdata acquisition.
4 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.
Note: some growth rates may slightly differ from rates seen in the public filings due to rounding.
Source: FleetCor and WEX public filings.

For more information, please contact Brian Rutland, Associate,, specializing in Commercial Payments.

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