Total Revenue for the Quarter Increased
30%
WEX Inc. (NYSE:WEX), a leading provider of corporate payment
solutions, today reported financial results for the three months
ended June 30, 2017.
Second Quarter 2017 Financial Results
Total revenue for the second quarter of 2017 increased 30% to
$303.9 million from $233.9 million for the second quarter of 2016.
During the quarter, higher fuel prices positively impacted revenue
by $8.1 million when compared to the prior year period.
Net earnings attributable to shareholders on a GAAP basis
increased $4.5 million to $17.1 million, or $0.40 per diluted
share, compared with $12.6 million, or $0.32 per diluted share, for
the second quarter of 2016. The Company's adjusted net income
attributable to shareholders, which is a non-GAAP measure, was
$54.2 million for the second quarter of 2017, or $1.26 per diluted
share, up 15% from $1.10 per diluted share for the same period last
year. See Exhibit 1 for a full explanation and reconciliation of
adjusted net income attributable to shareholders and adjusted net
income attributable to shareholders per diluted share to the
comparable GAAP measures.
“Today we posted a very strong quarter, highlighted by a top
line beat and bottom line results at the top of our guidance
range,” said Melissa Smith, WEX’s president and chief executive
officer. “All three segments contributed to our impressive
performance this quarter and delivered better than anticipated
organic revenue growth.”
Smith continued, “I am pleased that our products and service
offerings are resonating with customers and new business prospects
in the various markets we serve. We look forward to a successful
remainder of 2017, as we continue the momentum generated in the
first half of the year.”
Second Quarter 2017 Performance Metrics
- Average number of vehicles serviced
worldwide was approximately 10.9 million, an increase of 13% from
the second quarter of 2016.
- Total fuel transactions processed
increased 24% from the second quarter 2016 to 130.0 million.
Payment processing transactions increased 15% to 108.1
million.
- Average expenditure per payment
processing transaction was $68.43, which represents an increase of
23% from the second quarter of 2016.
- U.S. retail fuel price increased 5% to
$2.41 per gallon from $2.29 per gallon in the second quarter of
2016.
- Total Travel and Corporate Solutions
card purchase volume grew 37% to $7.7 billion, from $5.6 billion in
the second quarter of 2016.
- Total Health and Employee Benefits
Solutions purchase volume increased 7% to $1.1 billion in second
quarter of 2017.
Financial Guidance and Assumptions
The Company provides revenue guidance on a GAAP basis and
earnings guidance on a non-GAAP basis, due to the uncertainty and
indeterminate amount of certain elements that are included in
reported GAAP earnings.
- For the full year 2017, the Company
expects revenue in the range of $1.20 billion to $1.22 billion and
adjusted net income in the range of $221 million to $230 million,
or $5.15 to $5.35 per diluted share.
- For the third quarter of 2017, WEX
expects revenue in the range of $302 million to $312 million and
adjusted net income in the range of $58 million to $61 million, or
$1.35 to $1.42 per diluted share.
“I am encouraged by our disciplined execution this quarter,
which resulted in strong organic growth, repricing of our debt and
the EFS integration progressing ahead of schedule. The organization
is well-positioned for continued growth driven by the strength of
our underlying business, coupled with our ability to leverage our
investments and create further synergies,” said Roberto Simon,
WEX's chief financial officer.
Third quarter 2017 guidance is based on an assumed average U.S.
retail fuel price of $2.33 per gallon. Full-year 2017 guidance is
based on an assumed average U.S. retail fuel price of $2.36 per
gallon. The fuel prices referenced above are based on the
applicable NYMEX futures price. Our guidance assumes approximately
43 million shares outstanding for the third quarter and full year
2017.
The Company's guidance also assumes that third quarter 2017
fleet credit loss will range between 18 and 23 basis points, and
full year 2017 fleet credit loss will range between 18 and 22 basis
points.
The Company's adjusted net income guidance, which is a non-GAAP
measure, excludes unrealized gains and losses on derivative
instruments, net foreign currency remeasurement gains and losses,
acquisition-related ticking fees, acquisition-related intangible
amortization, other acquisition and divestiture related items,
stock-based compensation, restructuring and other costs, an
impairment charge, debt issuance cost amortization, similar
adjustments attributed to our non-controlling interest and certain
tax related items. We are unable to reconcile our adjusted net
income guidance to the comparable GAAP measure without unreasonable
effort because of the difficulty in predicting the amounts to be
adjusted, including but not limited to foreign currency exchange
rates, unrealized gains and losses on derivative instruments, and
acquisition and divestiture related items, which may have a
significant impact on our financial results.
Additional Information
Management uses the non-GAAP measures presented within this news
release to evaluate the Company's performance on a comparable
basis. 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.
WEX historically used fuel-price derivative instruments to
mitigate financial risks associated with the variability in fuel
prices in North America. Starting with the second quarter of 2016,
there were no longer any fuel price related derivatives
outstanding.
To provide investors with additional insight into its
operational performance, WEX has included in this news release in
Exhibit 2, a table illustrating the impact of foreign currency
translations and fuel prices for each of our operating segments for
the three and six months ended June 30, 2017 and 2016, and in
Exhibit 3, a table of selected non-financial metrics for the five
quarters ended June 30, 2017. The Company is also providing
selected segment revenue information for the three and six months
ended June 30, 2017 and 2016 in Exhibit 4.
Conference Call Details
In conjunction with this announcement, WEX will host a
conference call today, July 27, 2017, 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.
The Conference ID number is 45414833. 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 10
million vehicles and offering exceptional payment security and
control across a wide spectrum of business sectors. WEX serves a
global set of customers and partners through its operations around
the world, with offices in the United States, Australia, New
Zealand, Brazil, the United Kingdom, Italy, France, Germany,
Norway, and Singapore. WEX and its subsidiaries employ more than
2,700 associates. The Company has been publicly traded since 2005,
and is listed on the New York Stock Exchange under the ticker
symbol “WEX.” For more information, visit www.wexinc.com and follow
WEX on Twitter at @WEXIncNews.
Forward-Looking Statements
This news release contains forward-looking statements, including
statements regarding: management’s expectations for future
corporate performance; financial guidance; and, assumptions
underlying the Company's financial guidance. 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 as well as payment and transaction processing activity;
the impact of foreign currency exchange rates on the Company’s
operations, revenue and income; changes in interest rates; the
impact of fluctuations in fuel prices; the effects of the Company’s
business expansion and acquisition efforts; potential adverse
changes to business or employee relationships, including those
resulting from the completion of an acquisition; competitive
responses to any acquisitions; uncertainty of the expected
financial performance of the combined operations following
completion of an acquisition; the ability to successfully integrate
the Company's acquisitions, including Electronic Funds Source LLC's
operations and employees; the ability to realize anticipated
synergies and cost savings; unexpected costs, charges or expenses
resulting from an acquisition; the Company's failure to
successfully operate and expand ExxonMobil's European and Asian
commercial fuel card programs; the failure of corporate investments
to result in anticipated strategic value; the impact and size of
credit losses; the impact of changes to the Company's credit
standards; breaches of the Company’s technology systems or those of
our third-party service providers and any resulting negative impact
on our reputation, liabilities or relationships with customers or
merchants; 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; failure to successfully implement the Company’s
information technology strategies and capabilities in connection
with its technology outsourcing and insourcing arrangements and any
resulting cost associated with that failure; the actions of
regulatory bodies, including banking and securities regulators, or
possible changes in banking or financial regulations impacting the
Company’s industrial bank, the Company as the corporate parent or
other subsidiaries or affiliates; the impact of the Company’s
outstanding notes on its operations; the impact of increased
leverage on the Company's operations, results or borrowing capacity
generally, and as a result of acquisitions specifically; 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 our Annual Report for the year ended
December 31, 2016, filed on Form 10-K with the Securities and
Exchange Commission on March 6, 2017 and our Quarterly Report on
Form 10-Q for the three months ended March 31, 2017 filed with the
Securities and Exchange Commission on May 8, 2017. The Company's
forward-looking statements 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 earnings 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.
CONDENSED CONSOLIDATED STATEMENTS OF
INCOME
(in thousands, except per share
data)
(unaudited)
Three months ended June 30,
Six months ended June
30,
2017 2016 2017
2016 Revenues Payment processing revenue
$ 141,354 $ 126,080
$ 277,732 $ 237,136
Account servicing revenue
65,677 47,433
127,216
91,955 Finance fee revenue
42,085 32,704
85,457
56,210 Other revenue
54,768 27,719
104,836 54,563 Total revenues
303,884 233,936
595,241 439,864
Expenses
Salary and other personnel
85,811 66,662
169,396
130,072 Restructuring
1,676 3,506
2,160 5,095 Service
fees
37,351 45,924
74,101 82,683 Provision for credit
losses
16,082 6,443
28,313 10,360 Technology leasing
and support
14,101 10,932
26,617 22,008 Occupancy and
equipment
6,459 6,113
12,826 11,825 Depreciation and
amortization
49,961 23,109
99,199 45,373 Operating
interest expense
4,464 1,505
9,312 2,891 Cost of
hardware and equipment sold
1,098 665
2,127 1,570
Impairment charge
16,175 —
16,175 — Other expenses
23,125 17,442
46,682
35,225 Total operating expenses
256,303
182,301
486,908 347,102
Operating income
47,581 51,635
108,333 92,762
Financing interest expense
(28,547 ) (30,418 )
(55,695 ) (51,976 ) Net foreign currency gain (loss)
10,525 (4,823 )
18,967 11,301 Net unrealized loss on
interest rate swap agreements
(2,264 ) —
(699
) — Net realized and unrealized gain on fuel price
derivatives
— —
—
711 Income before income taxes
27,295 16,394
70,906 52,798 Income taxes
10,655 4,482
25,190 17,665
Net income
16,640 11,912
45,716 35,133 Less: Net loss from
non-controlling interest
(450 ) (655 )
(775 ) (520 )
Net earnings attributable to
shareholders $ 17,090 $ 12,567
$ 46,491 $ 35,653
Net
earnings attributable to WEX Inc. per share: Basic
$
0.40 $ 0.32
$ 1.08 $ 0.92 Diluted
$
0.40 $ 0.32
$ 1.08 $ 0.92
Weighted average
common shares outstanding: Basic
43,002 38,806
42,937 38,781 Diluted
43,060 38,857
43,090
38,850
WEX INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(in thousands, except per share
data)
(unaudited)
June 30, 2017 December 31,2016
Assets Cash and cash equivalents
$ 219,001 $
190,930 Accounts receivable (less reserve for credit losses of
$26,758 in 2017 and $20,092 in 2016)
2,478,703 2,054,701
Securitized accounts receivable, restricted
98,186 97,417
Income taxes receivable
2,926 10,765 Available-for-sale
securities
23,653 23,525 Property, equipment and capitalized
software (net of accumulated depreciation of $251,074 in 2017 and
$228,336 in 2016)
177,399 167,278 Deferred income taxes, net
13,354 6,934 Goodwill
1,808,192 1,838,441 Other
intangible assets (net of accumulated amortization of $334,394 in
2017 and $254,143 in 2016)
1,192,093 1,265,468 Other assets
335,452 341,638
Total assets $
6,348,959 $ 5,997,097
Liabilities and
Stockholders’ Equity Accounts payable
$ 727,587 $
617,118 Accrued expenses
320,243 331,579 Deposits
1,122,671 1,118,823 Securitized debt
104,525 84,323
Revolving line of credit facilities and term loans, net
1,740,201 1,599,291 Deferred income taxes, net
139,802 152,906 Notes outstanding, net
395,902
395,534 Other debt
149,063 125,755 Amounts due under tax
receivable agreement
41,403 47,302 Other liabilities
27,921 18,719
Total liabilities
4,769,318 4,491,350 Commitments and contingencies
Stockholders’ Equity Common stock $0.01 par value; 175,000
shares authorized; 47,343 shares issued in 2017 and 47,173 in 2016;
42,915 shares outstanding in 2017 and 42,841 in 2016
473 472
Additional paid-in capital
552,733 547,627 Non-controlling
interest
8,324 8,558 Retained earnings
1,291,022
1,244,271 Accumulated other comprehensive loss
(100,569
) (122,839 ) Treasury stock at cost; 4,428 shares in 2017
and 2016
(172,342 ) (172,342 )
Total stockholders’
equity 1,579,641 1,505,747
Total
liabilities and stockholders’ equity $ 6,348,959
$ 5,997,097
Exhibit 1
Reconciliation of GAAP Net Earnings
Attributable to Shareholders to Adjusted Net Income Attributable to
Shareholders
(in thousands, excepts per share
data)
(unaudited)
Three months ended June 30, 2017
2016
per diluted share
per dilutedshare
Net earnings attributable to shareholders $
17,090 $ 0.40 $ 12,567 $
0.32 Unrealized losses on derivative instruments
2,264
0.05 — — Net foreign currency remeasurement (gain) loss
(10,525 ) (0.24 ) 4,823 0.12
Acquisition-related ticking fees
— — 19,511 0.50
Acquisition-related intangible amortization
38,114
0.89 12,565 0.32 Other acquisition and divestiture related
items
239 0.01 2,179 0.06 Stock-based compensation
7,414 0.17 4,870 0.13 Restructuring and other costs
2,398 0.06 5,985 0.15 Impairment charge
16,175
0.38 — — Debt issuance cost amortization
2,209
0.05 771 0.02 ANI adjustments attributable to
non-controlling interest
(156 ) — (930 ) (0.02
) Tax related items
(21,022 ) (0.49
) (19,775 ) (0.51 )
Adjusted net income
attributable to shareholders $ 54,200 $
1.26 $ 42,566 $ 1.10
Six months ended June
30,
2017 2016
per diluted share
per dilutedshare
Net earnings attributable to shareholders $
46,491 $ 1.08 $ 35,653 $ 0.92 Unrealized
losses on derivative instruments
699 0.02 5,007 0.13
Net foreign currency remeasurement gain
(18,967 )
(0.44 ) (11,301 ) (0.29 ) Acquisition-related ticking
fees
— — 30,045 0.77 Acquisition-related intangible
amortization
76,093 1.77 25,211 0.65 Other
acquisition and divestiture related items
2,374 0.06
6,944 0.18 Stock-based compensation
13,871 0.32 9,113
0.23 Restructuring and other costs
4,145 0.10 7,574
0.19 Impairment charge
16,175 0.38 — — Debt issuance
cost amortization
4,163 0.10 1,543 0.04 ANI
adjustments attributable to non-controlling interest
(955
) (0.02 ) (861 ) (0.02 ) Tax related items
(37,001 ) (0.86 ) (28,291
) (0.73 )
Adjusted net income attributable to
shareholders $ 107,088 $ 2.49 $
80,637 $ 2.08
The Company's non-GAAP adjusted net income excludes unrealized
gains and losses on derivatives, net foreign currency remeasurement
gains and losses, acquisition-related ticking fees,
acquisition-related intangible amortization, other acquisition and
divestiture related items, stock-based compensation, restructuring
and other costs, debt issuance cost amortization, similar
adjustments attributed to our non-controlling interest and certain
tax related items. In addition, for the second quarter of 2017, we
have excluded an impairment charge related to the insourcing of
certain technology functions from a third party.
Although adjusted net income is not calculated in accordance
with generally accepted accounting principles (GAAP), this non-GAAP
measure is integral to the Company's reporting and planning
processes and the chief operating decision maker of the Company
uses pre-tax adjusted income to allocate resources. The Company
considers this measure integral because it excludes specified items
that the Company's management excludes in evaluating the Company's
performance. 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 derivative instruments, including
fuel price related derivatives and interest rate swap agreements,
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 these
derivative contracts.
- Net foreign currency gains and losses
primarily result from the remeasurement to functional currency of
cash, receivable and payable balances, certain intercompany notes
denominated in foreign currencies and any gain or loss on foreign
currency hedges relating to these items. The exclusion of these
items helps management compare changes in operating results between
periods that might otherwise be obscured due to currency
fluctuations.
- The Company considers certain
acquisition-related costs, including certain financing costs,
ticking fees, investment banking fees, warranty and indemnity
insurance, certain integration related expenses and amortization of
acquired intangibles, as well as gains and losses from divestitures
to be unpredictable, dependent on factors that may be outside of
our control and unrelated to the continuing operations of the
acquired or divested business or the Company. In prior periods not
reflected above, the Company has adjusted for goodwill impairments
and acquisition related asset impairments. In addition, the size
and complexity of an acquisition, which often drives the magnitude
of acquisition-related costs, may not be indicative of such future
costs. The Company believes that excluding acquisition-related
costs and gains or losses of divestitures facilitates the
comparison of our financial results to the Company's historical
operating results and to other companies in our industry.
- Stock-based compensation is different
from other forms of compensation, as it is a non-cash expense. For
example, a cash salary generally has a fixed and unvarying cash
cost. In contrast, the expense associated with an equity-based
award is generally unrelated to the amount of cash ultimately
received by the employee, and the cost to the Company is based on a
stock-based compensation valuation methodology and underlying
assumptions that may vary over time.
- Restructuring costs are related to
employee termination benefits from certain identified initiatives
to further streamline the business, improve the Company's
efficiency, create synergies, and to globalize the Company's
operations, all with an objective to improve scale and increase
profitability going forward. We exclude these items when evaluating
our continuing business performance as such items are not
consistently occurring and do not reflect expected future operating
expense, nor provide insight into the fundamentals of current or
past operations of our business.
- Impairment charge represents a non-cash
asset write-off related to our strategic decision to in-source
certain technology functions. This charge does not reflect
recurring costs that would be relevant to our continuing
operations. The Company believes that excluding this nonrecurring
expense facilitates the comparison of our financial results to the
Company's historical operating results and to other companies in
our industry.
- Debt issuance cost amortization is a
non-cash item and is unrelated to the continuing operations of the
Company. Because these costs are dependent upon the financing
method which can vary widely company to company, we believe that
excluding these costs helps to facilitate comparison to historical
results as well as to other companies within our industry.
- The adjustments attributable to
non-controlling interests, including adjustments to the redemption
value of a non-controlling interest, and the non-cash adjustments
related to tax receivable agreement have no significant impact on
the ongoing operations of the business.
- The tax related items are 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 as well as the impact from certain discrete tax items.
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.
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 table below shows the impact of certain macro factors on
reported revenue:
Exhibit 2
Segment Revenue Results
(in thousands)
(unaudited)
Fleet Solutions
Travel and Corporate
Solutions
Health and Employee Benefit
Solutions
Total WEX Inc. Three months ended June 30,
2017 2016
2017
2016
2017
2016
2017 2016 Reported revenue
$ 200,304 143,960
$ 55,000
$ 53,336
$ 48,580 $ 36,640
$
303,884 $ 233,936 FX impact (favorable) /
unfavorable
366 —
1,018 —
(717 ) —
667 — PPG impact (favorable) / unfavorable
(8,147 ) —
—
—
— —
(8,147 ) —
Six months ended
June 30, 2017 2016
2017 2016
2017
2016
2017 2016 Reported
revenue
$ 391,127 265,034
$ 102,713 $
98,478
$ 101,401 $ 76,352
$ 595,241 $
439,864 FX impact (favorable) / unfavorable
447 —
1,933 —
(2,578 ) —
(198 ) —
PPG impact (favorable) / unfavorable
(23,578
) —
— —
— —
(23,578
) —
To determine the impact of foreign exchange translation (“FX”)
on revenue, revenue from entities whose functional currency is not
denominated in U.S. dollars, as well as revenue from purchase
volume transacted in non-U.S. denominated currencies, were
translated using the weighted average exchange rates for the same
period in the prior year.
To determine the impact of price per gallon of fuel (“PPG”) on
revenue, revenue variable to changes in fuel prices was calculated
based on the average retail price of fuel for the same period in
the prior year for the portion of our business that earns revenue
based on a percentage of fuel spend. For the portions of our
business that earns revenue based on margin spreads, revenue was
calculated utilizing the comparable margin from the prior year.
The table below shows the impact of certain macro factors on
Adjusted Net Income:
Segment Estimated Earnings Impact
(in thousands)
(unaudited)
Fleet Solutions
Travel and Corporate
Solutions
Health and Employee Benefit
Solutions
Three months ended June 30, 2017
2016
2017 2016
2017 2016 FX impact (favorable) / unfavorable
$ 65 —
$ 267 —
$
(116 ) — PPG impact (favorable) / unfavorable
(4,653 ) —
— —
— —
Six months
ended June 30, 2017 2016
2017 2016
2017
2016 FX impact (favorable) / unfavorable
$ 121 —
$ 521 —
$ (423 ) — PPG impact
(favorable) / unfavorable
(13,528 ) —
— —
— — Realized gain on hedge settlement
—
3,636
— —
—
—
To determine the estimated earnings impact of FX, revenue and
expenses from entities whose functional currency is not denominated
in U.S. dollars, as well as revenue and variable expenses from
purchase volume transacted in non-US denominated currencies, were
translated using the weighted average exchange rates for the same
period in the prior year, net of tax and non-controlling interest
where applicable.
To determine the estimated earnings impact of PPG, revenue and
certain variable expenses impacted by changes in fuel prices, were
adjusted based on the average retail price of fuel for the same
period in the prior year for the portion of our business that earns
revenue based on a percentage of fuel spend, net of applicable
taxes. For the portions of our business that earn revenue based on
margin spreads, revenue was adjusted to the comparable margin from
the prior year, net of non-controlling interest and applicable
taxes.
Exhibit 3Selected Non-Financial Metrics
(unaudited)
Q2 2017 Q1 2017 Q4 2016 Q3 2016
Q2 2016
Fleet Solutions – Payment Processing Revenue:
Payment processing transactions (000s)
108,134 102,765 99,662 102,947 94,155 Gallons per payment
processing transaction
26.9 27.0 27.4 27.0 22.6 Payment
processing gallons of fuel (000s)
2,907,875 2,775,590
2,731,994 2,776,622 2,126,372 Average US fuel price (US$ / gallon)
$ 2.41 $ 2.40 $ 2.30 $ 2.24 $ 2.29 Average Australian
fuel price (US$ / gallon)
$ 3.65 $ 3.76 $ 3.50 $ 3.45
$ 3.29 Payment processing $ of fuel (000s)
$
7,399,901 $ 7,080,117 $ 6,672,281 $ 6,593,406 $ 5,236,151
Net payment processing rate
1.18 % 1.22 % 1.23 % 1.26
% 1.35 % Payment processing revenue (000s)
$ 87,678 $
86,262 $ 81,767 $ 83,132 $ 70,711
Travel and Corporate Solutions
– Payment Processing Revenue: Purchase volume (000s)
$
7,676,935 $ 6,599,797 $ 6,351,741 $ 7,138,956 $ 5,595,326
Net interchange rate
0.52 % 0.53 % 0.71 % 0.74 % 0.77
% Payment processing revenue (000s)
$ 40,276 $ 34,875
$ 45,390 $ 52,551 $ 43,194
Health and Employee Benefit
Solutions: Purchase volume (000s)
$ 1,126,854 $
1,347,219 $ 803,045 $ 875,598 $ 1,051,839
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 dollars 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.
Purchase volume in the Travel and Corporate Solutions segment
represents the total dollar value of all transactions that use WEX
corporate card products and virtual card 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.
Purchase volume in the Health and Employee Benefit Solutions
segment represents the total US dollar value of all transactions
where interchange is earned by WEX.
Exhibit 4
Segment Revenue Information
(in thousands)
(unaudited)
Fleet Solutions
Three months ended June
30,
Increase (decrease)
Six months ended June
30,
Increase (decrease) 2017 2016
Amount Percent
2017 2016 Amount Percent
Revenues Payment processing revenue
$ 87,678 $ 70,711 $ 16,967 24.0 %
$
173,940 $ 133,001 $ 40,939 30.8 % Account servicing revenue
41,311 27,548 13,763 50.0 %
77,380 52,986 24,394 46.0
% Finance fee revenue
36,552 30,674 5,878 19.2 %
72,981 52,611 20,370 38.7 % Other revenue
34,763
15,027 19,736 131.3 %
66,826 26,436 40,390 152.8 %
Total revenues
$ 200,304 $ 143,960 $ 56,344 39.1 %
$ 391,127 $ 265,034 $ 126,093 47.6 %
Travel and Corporate
Solutions
Three months ended June
30,
Increase (decrease)
Six months ended June
30,
Increase (decrease) 2017 2016
Amount Percent
2017 2016 Amount Percent
Revenues Payment processing revenue
$ 40,276 $ 43,194 $ (2,918 ) (6.8 )%
$
75,151 $ 77,820 $ (2,669 ) (3.4 )% Account servicing revenue
167 337 (170 ) (50.4 )%
322 610 (288 ) (47.2 )%
Finance fee revenue
159 145 14 9.7 %
382 221 161 72.9
% Other revenue
14,398 9,660 4,738
49.0 %
26,858 19,827
7,031 35.5 % Total revenues
$ 55,000 $ 53,336
$ 1,664 3.1 %
$ 102,713 $ 98,478 $ 4,235 4.3 %
Health and Employee Benefit
Solutions
Three months ended June
30,
Increase (decrease)
Six months ended June
30,
Increase (decrease) 2017 2016
Amount Percent
2017 2016 Amount Percent
Revenues Payment processing revenue
$ 13,400 $ 12,175 $ 1,225 10.1 %
$
28,641 $ 26,315 $ 2,326 8.8 % Account servicing revenue
24,199 19,548 4,651 23.8 %
49,514 38,359 11,155 29.1
% Finance fee revenue
5,374 1,885 3,489 185.1 %
12,094 3,378 8,716 258.0 % Other revenue
5,607
3,032 2,575 84.9 %
11,152 8,300
2,852 34.4 % Total revenues
$ 48,580 $
36,640 $ 11,940 32.6 %
$ 101,401 $ 76,352 $ 25,049
32.8 %
View source
version on businesswire.com: http://www.businesswire.com/news/home/20170727005333/en/
News media:WEX Inc.Jessica Roy, 207-523-6763Jessica.Roy@wexinc.comorInvestors:WEX
Inc.Steve Elder, 207-523-7769Steve.Elder@wexinc.com
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