Q3 2014 U.S. Fleet Card Issuer Performance Snapshot


Navigator Edition: January 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 seen in Figure 1, First Annapolis tracks various metrics to analyze the performance of their fleet card programs.

FleetCor: FleetCor’s North American revenues increased 35.6% from the three months ended September 30, 2013, to $156.3 million in the three months ended September 30, 2014. The increase was primarily due to the impact of acquisitions completed in 2013, organic growth driven by increases in volume and revenue per transaction, and the impact of the macroeconomic environment. Revenue per transaction increased primarily due to the impact of higher fuel spread margins and the impact of acquisitions completed in 2013.

FleetCor’s operating margin decreased 1.7% from the three months ended September 30, 2013, primarily due to the impact of increased stock based compensation expense, the majority of which is recorded in the North American segment.

In August, 2014, FleetCor signed a definitive agreement to acquire Comdata Inc. from Ceridian LLC for $3.45 billion. The deal closed in Q4 2014 and will expand FleetCor’s North American business into the Over-the-Road fleet card market and the virtual payments space.

WEX: WEX’s Fleet Payment Solutions revenues increased 5.6% from the three months ended September 30, 2013 to $144.5 million in the three months ended September 30, 2014. This increase was primarily due to the organic growth of the domestic fleet business, growth in the WEX Telematics business, growth in the number of fleet customers, additional factoring revenue and higher late fees, and international expansion of fuel related products.

WEX’s expenses increased in the three months ended September 30, 2014, but these increases were offset by increased revenues, resulting in a 34.9% operating income increase from the three months ended September 30, 2013.

Figure 1: Fleet Card Issuer Performance Q3 2014

Fig_-1_Fleet-Card-Issuer-Performance-Q3-20141 FleetCor revenues are for the North America segment only.
2 WEX revenues are for the Fleet Payment Solutions segment only.
3 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, brian.rutland@firstannapolis.com.

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