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8-K - WEX INC. 8-K - WEX Inc. | a50739321.htm |
Exhibit 99.1
WEX Inc. Reports Third Quarter 2013 Financial Results
Strong revenue and earnings growth driven by double-digit transaction growth and continued purchase volume expansion
SOUTH PORTLAND, Maine--(BUSINESS WIRE)--October 30, 2013--WEX Inc. (NYSE: WEX), a leading provider of corporate payment solutions, today reported financial results for the three months ended September 30, 2013.
Third Quarter Financial Results
Total revenue for the third quarter of 2013 increased 19% to $191.5 million from $161.0 million for the third quarter of 2012. Net income to common shareholders on a GAAP basis was $43.8 million, or $1.12 per diluted share, compared with $14.3 million, or $0.37 per diluted share, for the third quarter last year.
On a non-GAAP basis, the Company's adjusted net income for the third quarter of 2013 increased 20% to $50.4 million, or $1.29 per diluted share, from $42.0 million, or $1.08 per diluted share, for the same period a year ago. See Exhibit 1 for a full reconciliation of adjusted net income.
WEX uses fuel-price derivative instruments to mitigate financial risks associated with the variability in fuel prices in North America. For the third quarter of 2013, the Company's GAAP financial results include an unrealized pre-tax, non-cash, mark-to-market loss of $2.7 million dollars on these instruments.
“We continue to experience momentum throughout our business, driven by the solid execution of our long-term strategy. For the quarter, revenue increased 19% year-over-year and was towards the high-end of our guidance, while adjusted net income, increasing 20%, exceeded our expectations. Our results were driven by robust volume growth, Other Payments growth, foreign exchange rate contributions and expense management,” commented Michael E. Dubyak, WEX’s chairman and chief executive officer.
“We continue to see ongoing expansion in our domestic fleet business as we realize synergies from Fleet One and further bolster our competitive position. Furthermore, investments in our virtual card product are continuing to generate positive returns as we penetrate attractive geographies including Europe, Asia Pacific and South America. Looking towards the future, we expect to continue to leverage the foundations we are building and our dynamic pipeline to drive growth as we close out the year,” concluded Mr. Dubyak.
Third Quarter 2013 Performance Metrics
Where applicable, the performance metrics listed below include activity from Fleet One, acquired October 4, 2012, which positively impacted metrics for the third quarter of 2013.
- Average number of vehicles serviced worldwide was approximately 7.6 million, an increase of 10% from the third quarter of 2012.
- Total fuel transactions processed increased 13% from the third quarter of 2012 to 96.7 million. Payment processing transactions increased 16% to 76.6 million.
- Average expenditure per payment processing transaction increased 16% from the third quarter of 2012 to $85.43.
- U.S. retail fuel price decreased 1% to $3.70 per gallon from $3.74 per gallon in the third quarter of 2012.
- Total corporate card purchase volume grew $771 million, or 24%, to $4.0 billion compared to the third quarter of 2012.
Financial Guidance and Assumptions
“We continue to see considerable strength throughout our business as a result of our strategic focus on our core fleet business, international expansion and growing our virtual card platform. We expect to maintain this momentum in the fourth quarter, and are revising our top- and bottom-line guidance for fiscal 2013 to reflect our results to date, as well as current market conditions. Specifically, we are lowering our revenue guidance, primarily due to lower fuel prices and a slower roll-out of newer customers. At the same time, we are increasing our adjusted net income to reflect our strong earnings results in the third quarter,” said Steve Elder, WEX senior vice president and chief financial officer.
- For the fourth quarter of 2013, WEX expects revenue in the range of $173 million to $178 million and adjusted net income in the range of $41 million to $44 million, or $1.04 to $1.12 per diluted share.
- For the full year 2013, the Company expects revenue in the range of $708 million to $713 million and adjusted net income to be in the range of $171 million to $174 million, or $4.37 to $4.44 per diluted share.
Fourth quarter 2013 guidance is based on an assumed average U.S. retail fuel price of $3.47 per gallon, and approximately 39 million shares outstanding. Full-year 2013 guidance is based on an assumed average U.S. retail fuel price of $3.66 per gallon and approximately 39 million shares outstanding. The fuel prices referenced above are based on the applicable NYMEX futures price. WEX is assuming that exchange rates will remain in the range of the current spot rates.
The Company's guidance also assumes that fourth quarter 2013 fleet credit loss will range between 9 and 14 basis points, and that fleet credit loss for full year 2013 will range between 7 to 9 basis points.
Given the anticipated approval of the MasterCard/Visa merchant litigation settlement, the Company’s full-year guidance assumes a negative impact to the Company’s interchange rate, which is expected to be approximately 10 basis points for an 8 month period and began on July 29, 2013.
The Company's guidance does not reflect the impact of any future stock repurchases that may occur in 2013, or the impact potential foreign exchange rate fluctuations may have on results. In addition, this guidance excludes the impact of non-cash, mark-to-market adjustments on the Company's fuel-price-related derivative instruments and the amortization of purchased intangibles as well as the related tax impacts.
Additional Information
Exhibit 1 reconciles adjusted net income, which has not been determined in accordance with GAAP, to net income as determined in accordance with GAAP for the three and nine months ended September 30, 2013 and 2012.
Management uses the non-GAAP measures presented within this news release to evaluate the Company's performance on a comparable basis, to eliminate the volatility associated with its derivative instruments and to measure the amount of cash that is available for making payments on the Company's financing debt and for discretionary purposes. Management believes that investors may find these measures useful for the same purposes, but cautions that they should not be considered a substitute for, or superior to, disclosure in accordance with GAAP.
To provide investors with additional insight into its operational performance, WEX has included in this news release a table of selected non-financial metrics for the five quarters ended September 30, 2013. This table is presented as Exhibit 2. The Company is also providing selected segment review information for the three and nine months ended September 30, 2013 and 2012 in Exhibit 3.
Conference Call Details
In conjunction with this announcement, WEX will host a conference call today, October 30, 2013, at 10:00 a.m. (ET). As previously announced, the conference call will be webcast live on the Internet, and can be accessed at the Investor Relations section of the WEX website, http://www.wexinc.com. The live conference call also can be accessed by dialing (866) 334-7066 or (973) 935-8463. A replay of the webcast will be available on the Company's website.
About WEX Inc.
WEX Inc. (NYSE: WEX) is a leading provider of corporate payment solutions. From its roots in fleet card payments beginning in 1983, WEX has expanded the scope of its business into a multi-channel provider of corporate payment solutions representing more than 7.6 million cardholders and offering exceptional payment security and control across a wide spectrum of business sectors. The Company’s operations include WEX Bank, Fleet One, Pacific Pride, rapid! PayCard, Wright Express Australia, Wright Express New Zealand and CorporatePay Limited, England, as well as a majority equity position in UNIK S.A., Brazil. WEX and its subsidiaries employ more than 1,400 associates. For more information about WEX, please visit http://www.wexinc.com.
Forward-Looking Statements
This news release contains forward-looking statements, including statements regarding: financial guidance; assumptions underlying the Company's financial guidance; management’s expectations for future growth opportunities; and, confidence in future performance. Any statements that are not statements of historical facts may be deemed to be forward-looking statements. When used in this news release, the words "may," "could," "anticipate," "plan," "continue," "project," "intend," "estimate," "believe," "expect" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially, including: the effects of general economic conditions on fueling patterns and the commercial activity of fleets; the effects of the Company’s business expansion and acquisition efforts; the Company’s failure to successfully integrate the businesses it has acquired; the failure of corporate investments to result in anticipated strategic value; the impact and range of credit losses; breaches of the Company’s technology systems and any resulting negative impact on our reputation, liability, or loss of relationships with customers or merchants; fuel price volatility; the Company’s failure to maintain or renew key agreements; failure to expand the Company’s technological capabilities and service offerings as rapidly as the Company’s competitors; the actions of regulatory bodies, including banking and securities regulators, or possible changes in banking regulations impacting the Company’s industrial bank and the Company as the corporate parent; the impact of foreign currency exchange rates on the Company’s operations, revenue and income; changes in interest rates; the impact of the Company’s outstanding bonds on its operations; financial loss if the Company determines it necessary to unwind its derivative instrument position prior to the expiration of a contract; the incurrence of impairment charges if our assessment of the fair value of certain of our reporting units changes; the uncertainties of litigation; as well as other risks and uncertainties identified in Item 1A. of the Company's annual report on Form 10-K filed with the Securities and Exchange Commission on March 1, 2013 and the Company's subsequent periodic and current reports. The Company's forward-looking statements and these factors do not reflect the potential future impact of any alliance, merger, acquisition, disposition or stock repurchases. The forward-looking statements speak only as of the date of this news release and undue reliance should not be placed on these statements. The Company disclaims any obligation to update any forward-looking statements as a result of new information, future events or otherwise.
WEX INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF INCOME |
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(in thousands, except per share data) |
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(unaudited) |
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Three months ended |
Nine months ended |
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2013 | 2012 | 2013 | 2012 | |||||||||||||
Revenues | ||||||||||||||||
Fleet payment solutions | $ | 136,874 | $ | 117,877 | $ | 393,953 | $ | 341,709 | ||||||||
Other payment solutions | 54,651 | 43,090 | 141,227 | 112,444 | ||||||||||||
Total revenues | 191,525 | 160,967 | 535,180 | 454,153 | ||||||||||||
Expenses | ||||||||||||||||
Salary and other personnel | 41,469 | 28,823 | 122,193 | 87,501 | ||||||||||||
Service fees | 29,352 | 28,968 | 79,765 | 74,046 | ||||||||||||
Provision for credit losses | 5,015 | 5,647 | 13,686 | 14,874 | ||||||||||||
Technology leasing and support | 6,799 | 4,577 | 18,712 | 13,718 | ||||||||||||
Occupancy and equipment | 3,822 | 3,032 | 11,818 | 9,062 | ||||||||||||
Depreciation, amortization and impairment | 14,160 | 27,877 | 43,268 | 50,591 | ||||||||||||
Operating interest expense | 976 | 1,243 | 3,205 | 3,430 | ||||||||||||
Cost of hardware and equipment sold | 1,055 | 759 | 3,266 | 2,270 | ||||||||||||
Other | 10,984 | 8,764 | 33,763 | 26,541 | ||||||||||||
Total operating expenses | 113,632 | 109,690 | 329,676 | 282,033 | ||||||||||||
Operating income | 77,893 | 51,277 | 205,504 | 172,120 | ||||||||||||
Financing interest expense | (7,369 | ) | (2,302 | ) | (22,077 | ) | (6,877 | ) | ||||||||
Gain (loss) on foreign currency transactions | 2,968 | 180 | 1,708 | (312 | ) | |||||||||||
Net realized and unrealized loss on fuel price derivatives |
(3,640 |
) |
(14,026 |
) |
(2,781 |
) |
(12,046 |
) |
||||||||
Decrease in tax refund due to former shareholders of RD Card Holdings Australia | — | — | — | 9,750 | ||||||||||||
Decrease in amount due under tax receivable agreement | 150 | — | 150 | — | ||||||||||||
Income before income taxes | 70,002 | 35,129 | 182,504 | 162,635 | ||||||||||||
Income taxes | 26,224 | 20,845 | 68,097 | 94,780 | ||||||||||||
Net income | 43,778 | 14,284 | 114,407 | 67,855 | ||||||||||||
Less: Net loss from noncontrolling interest | (60 | ) | (14 | ) | (333 | ) | (14 | ) | ||||||||
Net earnings attributable to WEX Inc. | $ | 43,838 | $ | 14,298 | $ | 114,740 | $ | 67,869 | ||||||||
Net earnings attributable to WEX Inc. per share: | ||||||||||||||||
Basic | $ | 1.12 | $ | 0.37 | $ | 2.95 | $ | 1.75 | ||||||||
Diluted | $ | 1.12 | $ | 0.37 | $ | 2.93 | $ | 1.74 | ||||||||
Weighted average common shares outstanding: | ||||||||||||||||
Basic | 38,978 | 38,793 | 38,934 | 38,832 | ||||||||||||
Diluted | 39,081 | 38,995 | 39,102 | 39,084 | ||||||||||||
WEX INC. |
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CONDENSED CONSOLIDATED BALANCE SHEETS |
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(in thousands, except per share data) |
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(unaudited) |
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September 30, |
December 31, |
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(As Adjusted) | ||||||||
Assets | ||||||||
Cash and cash equivalents | $ | 391,171 | $ | 197,662 | ||||
Accounts receivable (less reserve for credit losses of $8,954 in 2013 and $11,709 in 2012) | 1,913,614 | 1,556,275 | ||||||
Available-for-sale securities | 16,208 | 16,350 | ||||||
Fuel price derivatives, at fair value | 488 | — | ||||||
Property, equipment and capitalized software (net of accumulated depreciation of $139,684 in 2013 and $125,659 in 2012) | 70,097 | 60,097 | ||||||
Deferred income taxes, net | 92,693 |
121,007 |
||||||
Goodwill | 824,307 | 848,248 | ||||||
Other intangible assets, net | 209,074 | 241,950 | ||||||
Other assets | 139,805 | 90,538 | ||||||
Total assets | $ | 3,657,457 | $ |
3,132,127 |
||||
Liabilities and Stockholders’ Equity | ||||||||
Accounts payable | $ | 706,927 | $ | 527,838 | ||||
Accrued expenses | 79,754 |
67,681 |
||||||
Income taxes payable | 14,228 |
10,038 |
||||||
Deposits | 1,158,196 | 890,345 | ||||||
Borrowed federal funds | — | 48,400 | ||||||
Revolving line-of-credit facilities and term loan | 288,750 | 621,000 | ||||||
Deferred income taxes, net | 11,464 | 18,407 | ||||||
Notes outstanding | 400,000 | — | ||||||
Amounts due under tax receivable agreement | 79,705 | 86,550 | ||||||
Fuel price derivatives, at fair value | 983 | 1,729 | ||||||
Other liabilities | 15,822 | 20,546 | ||||||
Total liabilities | 2,755,829 |
2,292,534 |
||||||
Commitments and contingencies | ||||||||
Redeemable noncontrolling interest | 19,762 | 21,662 | ||||||
Stockholders’ Equity | ||||||||
Common stock $0.01 par value; 175,000 shares authorized; 42,897 in 2013 and 42,586 in 2012 shares issued; 38,982 in 2013 and 38,908 in 2012 shares outstanding | 429 | 426 | ||||||
Additional paid-in capital | 166,615 | 162,470 | ||||||
Retained earnings | 845,051 | 730,311 | ||||||
Accumulated other comprehensive income | 337 | 37,379 | ||||||
Less treasury stock at cost; 4,007 shares in 2013 and 3,766 in 2012 | (130,566 | ) | (112,655 | ) | ||||
Total stockholders’ equity | 881,866 | 817,931 | ||||||
Total liabilities and stockholders’ equity | $ | 3,657,457 | $ |
3,132,127 |
||||
WEX INC. |
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CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
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(in thousands) |
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(unaudited) |
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Nine months ended |
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2013 |
2012 |
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Cash flows from operating activities | ||||||||
Net income | $ | 114,407 | $ | 67,855 | ||||
Adjustments to reconcile net income to net cash provided by (used for) operating activities: | ||||||||
Fair value change of fuel price derivatives | (1,234 | ) | 1,841 | |||||
Stock-based compensation | 6,882 | 8,806 | ||||||
Depreciation, amortization and impairment | 45,021 | 35,604 | ||||||
Goodwill impairment | — | 16,171 | ||||||
Deferred taxes |
23,207 |
35,392 | ||||||
Provision for credit losses | 13,686 | 14,874 | ||||||
Loss on disposal of property, equipment and capitalized software | 637 | — | ||||||
Changes in operating assets and liabilities, net of effects of acquisition: | ||||||||
Accounts receivable | (384,715 | ) | (306,350 | ) | ||||
Other assets | (39,289 | ) | (55,572 | ) | ||||
Accounts payable | 185,284 | 163,203 | ||||||
Accrued expenses |
13,030 |
(5,755 | ) | |||||
Income taxes |
5,463 |
16,904 | ||||||
Other liabilities | (826 | ) | (12,034 | ) | ||||
Amounts due under tax receivable agreement | (6,841 | ) | (6,245 | ) | ||||
Net cash used for operating activities | (25,288 | ) | (25,306 | ) | ||||
Cash flows from investing activities | ||||||||
Purchases of property, equipment and capitalized software | (30,122 | ) | (21,796 | ) | ||||
Purchases of available-for-sale securities | (1,704 | ) | (224 | ) | ||||
Maturities of available-for-sale securities | 1,065 | 1,228 | ||||||
Acquisitions, net of cash | — | (26,217 | ) | |||||
Net cash used for investing activities | (30,761 | ) | (47,009 | ) | ||||
Cash flows from financing activities | ||||||||
Excess tax benefits from equity instrument share-based payment arrangements | 6,509 | 3,049 | ||||||
Repurchase of share-based awards to satisfy tax withholdings | (10,917 | ) | (2,941 | ) | ||||
Proceeds from stock option exercises | 1,671 | 1,862 | ||||||
Net change in deposits | 267,859 | 512,456 | ||||||
Net change in borrowed federal funds | (48,400 | ) | (6,900 | ) | ||||
Other financing debt | (3,003 | ) | (19,560 | ) | ||||
Loan origination fee | (12,023 | ) | — | |||||
Borrowings on notes outstanding | 400,000 | — | ||||||
Net activity on 2011 revolving line-of-credit | (438,500 | ) | 12,200 | |||||
Net activity on 2011 term loan | (182,500 | ) | (7,500 | ) | ||||
Net activity on 2013 term loan | 288,750 | — | ||||||
Purchase of shares of treasury stock | (17,911 | ) | (11,288 | ) | ||||
Net cash provided by financing activities | 251,535 | 481,378 | ||||||
Effect of exchange rate changes on cash and cash equivalents | (1,977 | ) | 449 | |||||
Net change in cash and cash equivalents | 193,509 | 409,512 | ||||||
Cash and cash equivalents, beginning of period | 197,662 | 25,791 | ||||||
Cash and cash equivalents, end of period | $ | 391,171 | $ | 435,303 | ||||
Supplemental cash flow information | ||||||||
Interest paid | $ | 20,291 | $ | 9,676 | ||||
Income taxes paid | $ | 33,013 | $ | 39,455 | ||||
Significant non-cash transactions | ||||||||
Reduction of rapid! – estimated earn out | $ | — | $ | 839 | ||||
Acquisition of UNIK - estimated earn out | $ | — | $ | 991 | ||||
Increase in UNIK – estimated earn out | $ | 198 | $ | — | ||||
Exhibit 1 |
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Reconciliation of Adjusted Net Income to GAAP Net Earnings |
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Three and Nine Months Ended September 30, 2013 and 2012 |
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(in thousands) |
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(unaudited) |
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Three months ended |
Nine months ended |
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2013 | 2012 | 2013 | 2012 | |||||||||||||
Adjusted net income WEX Inc. | $ | 50,422 | $ | 42,035 | $ | 129,790 | $ | 116,681 | ||||||||
Unrealized (loss) gains on fuel price derivatives | (2,733 | ) | (12,849 | ) | 1,234 | (1,841 | ) | |||||||||
Amortization of acquired intangible assets | (8,051 | ) | (5,411 | ) | (24,564 | ) | (15,481 | ) | ||||||||
Goodwill impairment | — | (16,171 | ) | — | (16,171 | ) | ||||||||||
Deferred loan costs associated with the extinguishment of debt | — | — | (1,004 | ) | — | |||||||||||
Non-cash adjustments related to tax receivable agreement | 150 | — | 150 | — | ||||||||||||
Change in tax refund due to former shareholders of RD Card Holdings Australia | — | — | — | 9,750 | ||||||||||||
Other adjustments related to Fleet One acquisition | 658 | — | 658 | — | ||||||||||||
ANI adjustments attributable to noncontrolling interest | 313 | 77 | 971 | 77 | ||||||||||||
Tax impact | 3,079 | 6,617 | 7,505 | (25,146 | ) | |||||||||||
Net earnings attributable to WEX Inc. | $ | 43,838 | $ | 14,298 | $ | 114,740 | $ | 67,869 | ||||||||
Although adjusted net income is not calculated in accordance with generally accepted accounting principles (GAAP), this measure is integral to the Company's reporting and planning processes. The Company considers this measure integral because it eliminates the non-cash volatility associated with the fuel price related derivative instruments, and excludes the amortization of purchased intangibles as well as the goodwill impairment, deferred loan costs associated with the extinguishment of debt, the net impact of tax rate changes on the Company's deferred tax asset and related changes in the tax-receivable agreements including the former shareholder of RD Card Holdings Australia, adjustments related to the acquisition of Fleet One and adjustments attributable to noncontrolling interest. Specifically, in addition to evaluating the Company's performance on a GAAP basis, management evaluates the Company's performance on a basis that excludes the above items because:
- Exclusion of the non-cash, mark-to-market adjustments on fuel-price related derivative instruments helps management identify and assess trends in the Company's underlying business that might otherwise be obscured due to quarterly non-cash earnings fluctuations associated with fuel-price derivative contracts;
- The non-cash, mark-to-market adjustments on derivative instruments are difficult to forecast accurately, making comparisons across historical and future quarters difficult to evaluate; and
- The amortization of purchased intangibles as well as the goodwill impairment, deferred loan costs associated with the extinguishment of debt, the net impact of tax rate changes on the Company's deferred tax asset and related changes in the tax-receivable agreements including the former shareholder of RD Card Holdings Australia, adjustments related to the acquisition of Fleet One and adjustments attributable to noncontrolling interest have no impact on the ongoing operations of the business.
For the same reasons, WEX believes that adjusted net income may also be useful to investors as one means of evaluating the Company's performance. However, because adjusted net income is a non-GAAP measure, it should not be considered as a substitute for, or superior to, net income, operating income or cash flows from operating activities as determined in accordance with GAAP. In addition, adjusted net income as used by WEX may not be comparable to similarly titled measures employed by other companies.
The tax impact of the foregoing adjustments is the difference between the Company’s U.S. GAAP tax provision and a pro forma tax provision based upon the Company’s adjusted net income before taxes. The methodology utilized for calculating the Company’s adjusted net income tax provision is the same methodology utilized in calculating the Company’s U.S. GAAP tax provision.
Exhibit 2 |
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Selected Non-Financial Metrics |
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Q3 2013 | Q2 2013 | Q1 2013 | Q4 2012 | Q3 2012 | |||||||
Fleet Payment Solutions – Payment Processing Revenue: | |||||||||||
Payment processing transactions (000s) |
76,578 |
73,797 |
68,742 |
70,091 |
66,155 | ||||||
Gallons per payment processing transaction |
22.7 |
22.8 |
22.8 |
22.7 |
19.3 | ||||||
Payment processing gallons of fuel (000s) |
1,737,069 |
1,684,050 |
1,567,230 |
1,592,347 |
1,274,798 | ||||||
Average US fuel price (US$ / gallon) |
$ |
3.70 |
3.70 |
3.76 |
3.69 |
3.74 | |||||
Average Australian fuel price (US$ / gallon) | $ |
5.30 |
5.23 |
5.75 |
5.82 |
5.42 | |||||
Payment processing $ of fuel (000s) |
$ |
6,542,052 |
6,330,221 |
6,011,767 |
6,083,379 |
4,868,631 | |||||
Net payment processing rate* |
1.40% |
1.40% |
1.38% |
1.40% |
1.62% | ||||||
Fleet payment processing revenue (000s) |
$ |
91,273 |
88,422 |
83,194 |
85,371 |
78,803 | |||||
Other Payment Solutions – Payment Processing Revenue:** | |||||||||||
Payment solutions purchase volume (000s) |
$ |
3,953,513 |
3,181,931 |
2,635,062 |
2,494,508 |
3,182,032 | |||||
Net interchange rate |
0.95% |
0.99% |
0.96% |
0.94% |
0.90% | ||||||
Payment solutions processing revenue (000s) |
$ |
37,349 |
31,467 |
25,238 |
23,322 |
28,544 | |||||
*The decline in the net payment process rate during Q4 2012 is primarily
due to the acquisition of Fleet One in October of 2012.
** Excludes
payment processing revenue from rapid! PayCard and UNIK
Definitions and explanations:
Payment processing transactions represents the total number of purchases made by fleets that have a payment processing relationship with WEX.
Payment processing gallons of fuel represents the total number of gallons of fuel purchased by fleets that have a payment processing relationship with WEX.
Payment processing $ of fuel represents the total dollar value of the fuel purchased by fleets that have a payment processing relationship with WEX.
Net payment processing rate represents the percentage of the dollar value of each payment processing transaction that WEX records as revenue from merchants less any discounts given to fleets or strategic relationships.
Payment solutions purchase volume represents the total dollar value of all transactions that use corporate charge card products including single use account products.
Net interchange rate represents the percentage of the dollar value of each transaction that WEX records as revenue less any discounts given to customers.
Exhibit 3 |
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Segment Revenue Information |
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Three and Nine Months Ended September 30, 2013 and 2012 |
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(in thousands) |
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(unaudited) |
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Fleet Payment Solutions |
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(in thousands) |
Three months ended |
Increase |
Nine months ended |
Increase | |||||||||||||||||||||||
2013 | 2012 | Amount | Percent | 2013 | 2012 | Amount | Percent | ||||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Payment processing revenue | $ | 91,273 | $ | 78,803 | $ | 12,470 | 16 | % | $262,889 | $ | 231,109 | $ | 31,780 | 14 | % | ||||||||||||
Transaction processing revenue | 5,044 | 4,097 | 947 | 23 | % | 14,551 | 12,235 | 2,316 | 19 | % | |||||||||||||||||
Account servicing revenue | 19,069 | 17,657 | 1,412 | 8 | % | 56,247 | 48,592 | 7,655 | 16 | % | |||||||||||||||||
Finance fees | 15,688 | 12,604 | 3,084 | 24 | % | 42,669 | 35,422 | 7,247 | 20 | % | |||||||||||||||||
Other | 5,800 | 4,716 | 1,084 | 23 | % | 17,597 | 14,351 | 3,246 | 23 | % | |||||||||||||||||
Total revenues | 136,874 | 117,877 | 18,997 | 16 | % | 393,953 | 341,709 | 52,244 | 15 | % | |||||||||||||||||
Other Payment Solutions |
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Three months ended |
Increase (decrease) |
Nine months ended |
Increase (decrease) | ||||||||||||||||||||||||
(in thousands) | 2013 | 2012 | Amount | Percent | 2013 | 2012 | Amount | Percent | |||||||||||||||||||
Revenues | |||||||||||||||||||||||||||
Payment processing revenue | $ | 39,314 | $ | 29,653 | $ | 9,661 | 33 | % | $ | 99,941 | $ | 75,731 | $ | 24,210 | 32 | % | |||||||||||
Transaction processing revenue | 1,000 | 1,531 | (531 | ) | (35 | )% | 3,763 | 5,128 | (1,365 | ) |
(27 |
)% |
|||||||||||||||
Account servicing revenue | 3,092 | 1,627 | 1,465 | 90 | % | 8,383 | 3,891 | 4,492 | 115 | % | |||||||||||||||||
Finance fees | 1,618 | 521 | 1,097 | 211 | % | 4,777 | 840 | 3,937 | 469 | % | |||||||||||||||||
Other | 9,627 | 9,758 | (131 | ) | (1 | )% | 24,363 | 26,854 | (2,491 | ) | (9 | )% | |||||||||||||||
Total revenues | 54,651 | 43,090 | 11,561 | 27 | % | 141,227 | 112,444 | 28,783 | 26 | % |
CONTACT:
WEX Inc.
News media contact:
Jessica
Roy, 207-523-6763
Jessica.Roy@wexinc.com
or
Investor
Relations contact:
Michael E. Thomas, 207-523-6743
Michael.Thomas@wexinc.com