Good day ladies and gentlemen and thank you for standing by. Welcome to the FleetCor Technologies, Incorporated Fourth Quarter 2011 Earnings Conference Call. [Operator Instructions] I would now like to turn the conference over to Mr. Eric Dey, Chief Financial Officer.

Good afternoon, everyone, and thank you for joining us today. By now, everyone should have access to our fourth quarter and full year 2011 press release. It can also be found at www.fleetcor.com under the Investor Relations section. Throughout this conference call, we will be presenting non-GAAP financial information, including adjusted revenues and adjusted net income. This information is not calculated in accordance with GAAP and maybe calculated differently than other companies similarly titled non-GAAP information. Quantitative reconciliations of historical non-GAAP financial information to the most directly comparable GAAP information appears in today's press release and on our website as described previously. Also, we are reviewing 2011 guidance on a non-GAAP basis. Finally, before we begin our formal remarks, I need to remind everyone that part of our discussion today will include forward-looking statements. This includes forward-looking statements about our 2011 guidance. They are not guarantees of future performance and therefore, you should not put undue reliance on them. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what we expect. Some of those risks are mentioned in today's 8-K filed with the Security and Exchange Commission. Others are discussed in our Form 10-K, which is available at www.sec.gov. With that out of the way, I would like to turn the call over to Ron Clarke, our Chairman and CEO. Ron?

Okay, Eric, thanks. Hello everyone, and thanks for joining us today. I thought I cover 3 subjects in my opening remarks. First, our Q4 results, second, our 2011 full year results and then finally our 2012 guidance and give you bit of a bridge. So, first off, our Q4 results; if you had a chance to see our earnings release you will see that Q4 was a very good quarter for us. We reported revenue of $140 million, an all-time quarterly high since the founding of the company. We also reported adjusted net income of $47 million and adjusted EPS of $0.56 per share. All of these results were beat against our own internal plan. And from a growth perspective, our Q4 revenue grew over 30% and adjusted net income more than 25%. So, we finished comfortably ahead of our 10% and 20% targets. Now let me shift in to some of the drivers of this Q4 performance. One, we continued rapid growth of our universal card products, our CLC hotel card products and our Russia business. Together these 3 businesses grew revenue a combined 40% for the quarter. So, they continue to grow really, really quickly. Second, the environment continued to help us. Fuel prices were well above prior year levels and US market spreads way above normal for the quarter, adding $3 million to $4 million of incremental revenue. Third, the addition of our Mexico and AllStar acquisitions contributed meaningfully to our Q4 revenue, but very little to our Q4 earnings. And then finally we booked a favorable tax rate for the quarter at 26% as we confirmed a couple of tax rulings that reduced our full year tax liability. Our fourth quarter also produced particularly strong sales finish. Our U.S. sales grew 40% for the quarter and…

Thanks Ron. For the fourth quarter of 2011, we reported revenue of $140.2 million, an increase of 32% from the fourth quarter of 2010. For the fourth quarter, GAAP net income increased 116% to $37.8 million from $17.5 million in the fourth quarter of 2011 or $0.45 per diluted share compared to $0.22 per diluted share in the fourth quarter of 2010. For the full year of 2011, we reported revenue of $519.6 million, an increase of 20% from the full year of 2010. GAAP net income for the full year of 2011 increased 37% to $147.3 million from $107.9 million for the full year of 2010, or $1.76 per diluted share compared to $1.34 per diluted share in 2010. The other financial metrics that we routinely use to measure our business are adjusted revenues and adjusted net income, which we sometimes also refer to cash net income. Adjusted revenues equal our GAAP revenues less merchant commissions. We use adjusted revenues as a basis to evaluate the Company's revenues, net of the commissions that are paid to merchants who participate in certain card programs. Commissions paid to merchants can vary when market spreads fluctuate in much of the same way some of our revenues can vary when market spreads fluctuate. For this reason, we believe the adjusted revenue financial metric is a more effective way to evaluate the Company's performance. The reconciliation of adjusted revenues and adjusted net income to our GAAP numbers are provided and exhibit one of our press release. Adjusted net income is GAAP net income adjusting to eliminate non-cash stock based compensation expense related to share based compensation awards, amortization of deferred financing costs and intangible assets. Amortization of the premium recognized in the purchase receivable and the loss on the early extinguishment of debt. Adjusted…

[Operator Instructions] Our first question comes from the line of Tien-Tsin Huang with JPMorgan.

I guess I’ll ask about the conservatives and then the guidance, just want to take your temperature on that Ron and Eric. If we, because we strip out I guess the AllStar and the Mexico deal, looks like it implies some high-single digit EPS organic growth. Is that accurate? I’m just curious if the macro conservatism that you talked about was enough to bring it down to that level.

Hey, Tien-Tsin, this is Eric. There’s a number of reasons for that. Let me see if I can explain them to you, I guess first if you look at it from a GAAP perspective. Our GAAP net income was actually up about 25% over 2011 and the reason for that is our cash compensation -- our non-cash compensation expense between 2011 and 2012 was actually decreasing. And as a result of that decrease, it actually impacts the adjusted net income on a cash basis. We also have an increase in our number of shares outstanding in 2012 versus 2011, which is also impacting the calculation. Thirdly, the acquisitions that we completed in 2011 have a lower margin than does the rest of our businesses today and obviously as we get into 2011, we’re going to be working on those business to bring those margins more in line with the company’s line average. And then finally, we’ve taken a bit of a conservative view, when we take a look at the macroeconomic environment, looking into 2012 primarily as it relates to FX rates. FX rates are currently running a little bit lower than the average was in 2011 and our average spreads in 2011 were higher than like the last 3-year average. So, we took a little bit more conservative view on those as well. I think those things combined resulted in where we were from a guidance perspective.

And Tien-Tsin, it’s Ron. We obviously want to give you a number we can make.

Sure, understood. Did the 10% and 20% still sort of apply here, longer term?

Yes, I think if you strip out all the words that Eric said, you ought to think about the organic businesses comparable with ’11. So we peel back all the detail. I tell you that our view is the businesses are growing basically the same if you kind of chuck out the environment.

Okay, you have cleansed for everything. Okay, understood. Last, just the implied sort of same-store assumption in Europe. I mean, are you seeing things deteriorate there, ignoring FX of course, what’s happening on the ground in Europe?

Tien-Tsin, this is Eric again. Yes, I would say that same-store sales across Central Europe are running, meaning in the UK and our Czech Republic business are running probably flat to down somewhat in 2011 and we expect that trend to continue into 2012.

But I would say here Tien-Tsin, it’s Ron, that we mentioned this in the last, I think in the last call, the nose of the plane is up a bit in the U.S. but it’s not everywhere. The California market is still not great, but I’d say we are on the plus side now in the U.S. fuel card same-store. Finally, that thing is up.

And obviously too, just add onto that, our same-store sales in Russia are actually extremely well. Doing extremely well right now.

And your next question comes from the line of Wayne Johnson with Raymond James.

Could you just comment on the, your guys’ appetite for further acquisitions in South America and could you also just give an indication on kind of the business climate there and I have one follow-up.

Wayne, it’s Ron. High, would be the headline, and again, we like markets with the model setup well, not only of payments early in the cycle, but the model in terms of basically the way the economics work, particularly in Brazil are pretty attractive. So, I’d say both Mexico which you talked about the last time and South America are interesting to us.

Alright. And so on that, so Brazil being the most attractive market, can you give us any sense, do you guys have anything in the pipeline or in your sites?

Yes, I wouldn’t comment on actually a country, but I would say if you pulled up the public comps, there is a couple of public comps, CL and ReadyCard, you can see kind of their growth rates in acquiring and in processing are very good, but we are obviously, I think I have said this repeatedly, we’ve been in the business for 11 years so we know every company basically everywhere and as I've said to you, we are in conversations. We are about trying to buy assets we like to. You should assume if there are people anywhere we are talking to.

And that would include the United States?

Yes, I’d say again it’s less interesting Wayne, as we’ve said before mostly again, because of the market dynamics, right? The country here it’s more penetrated and the model is obviously more competitive, the more players doing what we do here, but again if there was an interesting property here, we would look at it, but I’d say we like the looks of properties in other markets more.

[Operator Instructions] Our next question comes from the line of Phil Stiller with Citi.

On the AllStar acquisition, what was the revenue contribution in the quarter? And then as we think about 2012, can you give us a sense in terms of how much you guys are investing in the platform consolidation there and what kind of long-term savings that should drive?

First Phil, just to remind everybody, we closed the AllStar acquisition on December 13. So, it had very little contribution both from -- well first, from a revenue perspective and it had no contribution from a profitability standpoint as we booked a bunch of deal costs in conjunction with closing the transaction. So, there was nothing from a profit standpoint. And it was single digit millions in total revenue for the quarter -- for the month really.

Phil, it’s Ron. On the second part of the question I’d say the 2 places that we are investing. One is in technology, so the way to think about it is they have some kind of baseline run-rate of what they are spending, right, to run the systems and enhance the systems they have. And we are basically spending money to basically tailor and implement our technology, so that would be kind of an incremental spend this one year. And then same on sales, they basically spend relative to their base significantly less than we do. And so and they use much a narrower set of channels to acquire customers than we do. So, we’re going to both spend more in total and we are going to introduce some new channels, new ways to acquire accounts that they don’t currently use.

You guys have a rough timeframe as to when you could get that business to kind of inline margins relative to the overall business?

I’d say a fair amount of it hinges on the technology, but I’d say that we’re going to obviously go carefully, but I'd say, as we exit this year we’ll probably be 1/3 to 1/2 of the way and probably you get to a year from there we’ll be 2/3 of the way would be kind of a guestimate for you.

Okay, great. On the North American business, you had strong increases in revenue per transaction for third quarter consecutive quarter and it’s been relatively consistent sequentially since that time. Are the comps that much more difficult after we get through the first quarter or you are expecting further increases on that metric, going forward?

Yes, again it’s a mix Phil, its environment right has given some with the higher fuel price or higher spreads, but b, it’s the product mix that we go to, so we’re selling and have converted. We have a lot more of extended network cards that we earn more revenue. So over the prior period, we have a greater mix of higher profit products in our base now. So I think we told you we’re probably 75% of the way through that set of conversion so we expect that to keep rolling into 2012.

Phil, I think to answer your question overall, I think we expect that obviously revenue per transaction to continue to grow on both of our businesses in the U.S. and both internationally as well.

Okay, great. Last question from me, any update on the Shell implementation and when we should expect revenue from that deal?

That’s a good question. I would say we’re on track with the plan at the end of the second quarter. We’re planning to basically go live in the first market. It’s actually a market that Shell has picked in Asia. And then basically kind of as we get into the fall, the plan is to start to implement some other bigger European markets. So kind of starting Q3 and Q4 you should see transactions start to increase from Shell.

[Operator Instructions] And I show no further questions at this time. Ladies and gentlemen, that does conclude our conference for today. Thank you very much for your participation and you may now disconnect.