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Wright Express Reports First-Quarter Financial Results

         Company Exceeds Top End of First-Quarter Financial Guidance

SOUTH PORTLAND, Maine, May 2 /PRNewswire-FirstCall/ -- Wright Express Corporation (NYSE: WXS), a leading provider of payment processing and information management services to the U.S. commercial and government fleet industry, today reported financial results for the quarter ended March 31, 2007.

Total revenue for the first quarter of 2007 increased 11% to $71.8 million from $64.6 million for the first quarter of 2006. Net income to common shareholders on a GAAP basis for the first quarter of 2007 was $8.3 million, or $0.20 per diluted share, compared with $11.4 million, or $0.28 per share, for the comparable quarter last year. On a non-GAAP basis, the Company's adjusted net income for the first quarter of 2007 increased 21% to $14.8 million, or $0.36 per diluted share, from $12.3 million, or $0.30 per diluted share, for the year-earlier period.

Wright Express uses fuel-price derivative instruments to mitigate financial risks associated with the variability in fuel prices. For the first quarter of 2007, the Company's GAAP financial results include an unrealized $10.6 million pre-tax, non-cash, mark-to-market loss on these instruments. For the first quarter of 2006, the Company reported an unrealized pre-tax, non-cash, mark-to-market loss of $1.4 million. Exhibit 1 reconciles adjusted net income for the first quarters of 2007 and 2006, which has not been determined in accordance with GAAP, to net income as determined in accordance with GAAP.

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 scheduled payments on the Company's financing debt and 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 disclosure in accordance with GAAP.

    First-Quarter 2007 Performance Metrics

    - Total fuel transactions processed increased 3% from the first quarter of
      2006 to 59.9 million.  Primarily reflecting the conversion to payment
      processing of the Company's ExxonMobil portfolio, payment processing
      transactions increased 16% to 50.6 million, and transaction processing
      transactions decreased 36% to 9.4 million.

    - Average number of vehicles serviced was approximately 4.3 million,
      compared with approximately 4.3 million in the first quarter of 2006.
      The comparability of this metric was affected by the termination of
      inactive vehicles in the private label channel.

    - Average expenditure per payment processing transaction increased 1% to
      $49.32 from $48.63 for the same period last year.

    - Average retail fuel price was $2.43 per gallon, compared with $2.41 per
      gallon for the first quarter a year ago.

    - Total MasterCard purchase volume grew 43% to $385.2 million from $269.4
      million for the comparable period in 2006.

    - Wright Express repurchased approximately 489,000 shares of its common
      stock at a cost of approximately $14 million during the first quarter of
      2007.

    Additional selected non-financial metrics are presented in Exhibit 2.

    Management Comments on the First Quarter

"Overall transaction volume grew 3% this quarter, in line with our expectations," said Michael Dubyak, president and chief executive officer. "At the same time, purchase volume in our MasterCard business and the net payment processing rate in our fleet segment were higher than we expected, and operating expenses were generally consistent with our plan. As a result, first-quarter adjusted net income exceeded the top end of our guidance range. In addition, we were able to implement our share repurchase program, buying back approximately $14 million of the Company's common stock through March 31st."

"Wright Express remains on track for a stronger second half of 2007," said Dubyak. "Our front-end operations -- customer acquisition and activation -- continue to perform well. Although we faced some challenges on the annuity side of our business in the fourth quarter of 2006, they have diminished over the past four months. Looking forward, we expect improvement in transaction volume as we move through the year."

Financial Guidance

Wright Express Corporation is issuing financial guidance for the second quarter of 2007 and updating financial guidance for the full year 2007. The Company's guidance includes a $1.2 million, or $0.03 per share, non-cash charge, net of taxes, to write off previously capitalized costs for its senior credit facility, which is expected to be re-financed in the second quarter of 2007, and excludes the impact of non-cash, mark-to-market adjustments on its fuel-price-related derivative instruments. The fuel prices referenced below are based on the applicable NYMEX futures price:

    - For the second quarter of 2007, revenue in the range of $78 million to
      $83 million.  This is based on an assumed average retail fuel price of
      $2.81 per gallon.

    - Second-quarter 2007 net income, excluding unrealized gain or loss on
      derivative instruments, in the range of $16 million to $17 million, or
      $0.38 to $0.41 per diluted share, based on approximately 41 million
      shares outstanding.

    - For the full year 2007, revenue in the range of $315 million to $325
      million.  This is based on an assumed average retail fuel price of $2.63
      per gallon.

    - Net income for the full year 2007, excluding unrealized gain or loss on
      derivative instruments, in the range of $69 million to $74 million, or
      $1.68 to $1.78 per diluted share, based on approximately 41 million
      shares outstanding.

    Conference Call Details

In conjunction with this announcement, Wright Express will host a conference call today, May 2, at 5:00 p.m. (ET) to discuss the Company's first-quarter financial results and business outlook. The conference call will be webcast live on the Internet, and can be accessed at the "Investor Relations" section of the Company's website (http://www.wrightexpress.com). The live conference call can also be accessed by dialing (800) 289-0569 or (913) 981-5542. A replay of the webcast will be available on the Company's website for approximately three months.

About Wright Express

Wright Express is a leading provider of payment processing and information management services to the U.S. commercial and government vehicle fleet industry. Wright Express provides these services for approximately 295,000 commercial and government fleets containing 4.3 million vehicles. Wright Express markets these services directly as well as through more than 125 strategic relationships, and offers a MasterCard-branded corporate card. The Company employs more than 675 people and maintains its headquarters in South Portland, Maine. For more information about Wright Express, please visit http://www.wrightexpress.com.

This press release contains forward-looking statements, including statements regarding Wright Express Corporation's: expectation of improvement in transaction volume in 2007; anticipated refinancing of its senior credit facility and the likely financial impact; and expectations and guidance for second-quarter, second-half and full-year 2007 results.

These forward-looking statements include a number of risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include: volatility in fuel prices; second-quarter and full-year 2007 fueling patterns; the effect of the Company's fuel-price- related derivative instruments; effects of competition; the potential loss of key strategic relationships; decreased demand for fuel and other vehicle products and services and the effects of general economic conditions on the commercial activity of fleets; the Company's ability to rapidly implement new technology and systems; potential corporate transactions including alliances, mergers, acquisitions and divestitures; changes in interest rates and the other risks and uncertainties included from time to time in the Company's filings with the Securities and Exchange Commission, including the annual report on Form 10-K filed on February 28, 2007, and the Company's other periodic and current reports. Wright Express Corporation undertakes no obligation to update these forward-looking statements at any future date or dates.

    News media contact:
    Jessica Roy
    Wright Express
    207.523.6763
    Jessica_Roy@wrightexpress.com

    Investor contact:
    Steve Elder
    Wright Express
    207.523.7769
    Steve_Elder@wrightexpress.com



                          Wright Express Corporation
     CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
                    (in thousands, except per share data)
                                 (unaudited)

                                                         Three months ended
                                                              March 31,
                                                          2007           2006
    Revenues
      Payment processing revenue                       $54,194        $46,956
      Transaction processing revenue                     3,475          4,210
      Account servicing revenue                          6,180          5,915
      Finance fees                                       5,566          5,238
      Other                                              2,407          2,319

        Total revenues                                  71,822         64,638

    Expenses
      Salary and other personnel                        16,129         14,354
      Service fees                                       3,671          3,040
      Provision for credit losses                        6,263          3,918
      Technology leasing and support                     2,340          1,863
      Occupancy and equipment                            1,594          1,592
      Depreciation and amortization                      3,302          2,514
      Operating interest expense                         6,921          4,607
      Other                                              4,699          3,843

        Total operating expenses                        44,919         35,731

    Operating income                                    26,903         28,907

    Financing interest expense                          (3,130)        (3,728)
    Net realized and unrealized losses on
     derivative instruments                            (10,690)        (7,478)

    Income before income taxes                          13,083         17,701
    Provision for income taxes                           4,746          6,351

    Net income                                           8,337         11,350

      Change in net unrealized loss on
       available-for-sale securities,
       net of tax effect of $5 in 2007 and
       $(41) in 2006                                         8            (63)
      Change in net unrealized gain on interest
       rate swaps, net of tax effect of
       $(120) in 2007 and $86 in 2006                     (173)            68

    Comprehensive income                                $8,172        $11,355

    Earnings per share:
      Basic                                              $0.21          $0.28
      Diluted                                            $0.20          $0.28

    Weighted average common shares outstanding:
      Basic                                             40,347         40,245
      Diluted                                           41,069         40,983




                          Wright Express Corporation
                    CONDENSED CONSOLIDATED BALANCE SHEETS
                    (in thousands, except per share data)

                                                    March 31,     December 31,
                                                      2007            2006
                                                  (unaudited)
    Assets
      Cash and cash equivalents                      $20,108        $35,060
      Accounts receivable (less reserve for
       credit losses of $10,125 in 2007 and
       $9,749 in 2006)                               911,785        802,165
      Available-for-sale securities                    7,766          8,023
      Property, equipment and capitalized
       software, net                                  43,506         39,970
      Deferred income taxes, net                     371,654        377,276
      Intangible assets                                2,421          2,421
      Goodwill                                       272,861        272,861
      Other assets                                    13,663         13,239

    Total assets                                  $1,643,764     $1,551,015

    Liabilities and Stockholders' Equity
      Accounts payable                              $353,359       $297,102
      Accrued expenses                                18,877         26,065
      Income taxes payable                                 -            813
      Deposits                                       387,801        394,699
      Borrowed federal funds                          94,244         65,396
      Revolving line-of-credit facility               45,000         20,000
      Term loan, net                                 119,115        129,760
      Derivative instruments, at fair value           15,115          4,524
      Other liabilities                                4,633          1,170
      Amounts due to Avis under tax receivable
       agreement                                     416,743        418,359
      Preferred stock; 10,000 shares authorized:
        Series A non-voting convertible,
         redeemable preferred stock; 0.1 shares
         issued and outstanding                       10,000         10,000

      Total liabilities                            1,464,887      1,367,888

    Commitments and contingencies

    Stockholders' Equity
      Common stock $0.01 par value; 175,000
       shares authorized, 40,557 in 2007 and
       40,430 in 2006 issued                             406            404
      Additional paid-in capital                      91,059         89,325
      Retained earnings                              101,599         93,262
      Other comprehensive income, net of tax:
        Net unrealized loss on available-for-
         sale securities                                 (90)           (98)
        Net unrealized gain on interest rate swaps        61            234

      Accumulated other comprehensive income             (29)           136
      Less treasury stock at cost, 489 shares
       in 2007 and no shares in 2006                 (14,158)             -

      Total stockholders' equity                     178,877        183,127

    Total liabilities and stockholders' equity    $1,643,764     $1,551,015




                          Wright Express Corporation
               CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
                                (in thousands)
                                 (unaudited)

                                                          Three months ended
                                                               March 31,
                                                          2007           2006
    Cash flows from operating activities
      Net income                                        $8,337        $11,350
      Adjustments to reconcile net income to net cash
      (used for) provided by operating activities:
        Change in net unrealized loss on derivative
         instruments                                    10,591          1,426
        Stock-based compensation                         1,001            707
        Depreciation and amortization                    3,742          2,804
        Deferred taxes                                   5,737          5,556
        Provision for credit losses                      6,263          3,918
        Loss on disposal and impairment of property
         and equipment                                       -              5
        Changes in operating assets and liabilities:
          Accounts receivable                         (115,883)       (78,612)
          Other assets                                    (150)           351
          Accounts payable                              56,257         69,317
          Accrued expenses                              (7,251)        (4,759)
          Income taxes                                  (1,465)             -
          Other liabilities                                623            873
          Amounts due to Avis                           (1,616)             -

      Net cash (used for) provided by operating
       activities                                      (33,814)        12,936

    Cash flows from investing activities
      Purchases of property and equipment               (3,998)        (2,655)
      Purchases of available-for-sale securities           (35)           (33)
      Maturities of available-for-sale securities          305         14,623

      Net cash (used for) provided by investing
       activities                                       (3,728)        11,935

    Cash flows from financing activities
      Excess tax benefits from equity instrument
       share-based payment arrangements                    843            162

      Payments in lieu of issuing shares of common
       stock                                              (809)          (682)
      Proceeds from stock option exercises                 764            483

      Net decrease in deposits                          (6,898)       (53,896)
      Net increase in borrowed federal funds            28,848          9,677

      Net borrowings (repayments) on revolving line
       of credit                                        25,000         (1,000)
      Repayments on term loan                          (11,000)        (5,500)
      Purchase of shares of treasury stock             (14,158)             -

      Net cash provided by (used for) financing
       activities                                       22,590        (50,756)

    Net change in cash and cash equivalents            (14,952)       (25,885)
    Cash and cash equivalents, beginning of period      35,060         44,994

    Cash and cash equivalents, end of period           $20,108        $19,109

    Supplemental cash flow information:
      Interest paid                                     $9,636         $8,584
      Income taxes (received) paid                       $(368)          $380

      Significant non-cash transactions:
        Capitalized software licensing agreement        $2,840              -



                                  Exhibit 1

                          Wright Express Corporation
           Reconciliation of Adjusted Net Income to GAAP Net Income
                              First Quarter 2007
                                (in thousands)
                                 (unaudited)

                                      Three months ended    Three months ended
                                         March 31, 2007       March 31, 2006

    Adjusted net income                      $14,797              $12,266
    Non-cash, mark-to-market
     adjustments on derivative
     instruments                             (10,591)              (1,426)
    Tax impact of unrealized losses            4,131                  510
    GAAP net income                           $8,337              $11,350

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 derivative instruments. 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 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; and

    - 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.

For the same reasons, Wright Express 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 Wright Express may not be comparable to similarly titled measures employed by other companies.



                                  Exhibit 2
                          Wright Express Corporation
                        Selected Non Financial Metrics

                           Q1 2007*   Q4 2006    Q3 2006    Q2 2006    Q1 2006
    Fleet Payment
     Processing Revenue:
    Payment processing
     transactions (000s)    50,559     45,075     46,800     45,998     43,459
    Gallons per payment
     processing
     transaction              20.3       20.6       20.2       20.1       20.2
    Payment processing
     gallons of fuel
     (000s)              1,024,847    926,605    944,458    924,343    876,917
    Average fuel price       $2.43       2.37       2.87       2.86       2.41
    Payment processing
     $ of fuel (000s)  $ 2,493,781  2,194,543  2,712,120  2,642,456  2,113,614
    Net payment
     processing rate         1.99%      2.13%      2.02%      2.03%      2.06%
    Fleet payment
     processing revenue
     (000s)                $49,607     46,647     54,841     53,590     43,597

    MasterCard Payment
     Processing Revenue:
    MasterCard purchase
     volume (000s)        $385,153    332,934    365,739    332,706    269,361
    Net interchange rate     1.19%      1.23%      1.21%      1.23%      1.25%
    MasterCard payment
     processing revenue
     (000s)                 $4,587      4,089      4,416      4,105      3,357


    Definitions:

Payment processing transactions represents the total number of purchases made by fleets that have a payment processing relationship with Wright Express.

Payment processing gallons of fuel represents the total number of gallons of fuel purchased by fleets that have a payment processing relationship with Wright Express.

Payment processing $ of fuel represents the total dollar value of the fuel purchased by fleets that have a payment processing relationship with Wright Express.

Net payment processing rate represents the percentage of the dollar value of each payment processing transaction that Wright Express records as revenue from merchants less any discounts given to fleets or strategic relationships.

MasterCard purchase volume represents the total dollar value of all transactions that use a Wright Express MasterCard-branded product.

Net interchange rate represents the percentage of the dollar value of each MasterCard transaction that Wright Express records as revenue less any discounts given to customers.

* Q1 2007 results are affected by the conversion of the ExxonMobil

portfolio to a payment processing relationship.

SOURCE  Wright Express Corporation
    -0-                             05/02/2007
    /CONTACT:  News media contact - Jessica Roy, +1-207-523-6763,
Jessica_Roy@wrightexpress.com; or Investor contact - Steve Elder,
+1-207-523-7769, Steve_Elder@wrightexpress.com , both of Wright Express/
    /Web site:  http://www.wrightexpress.com /
    (WXS)

CO:  Wright Express Corporation
ST:  Maine
IN:  FIN TRN
SU:  ERN CCA ERP

JB
-- NEW101 --
0833 05/02/2007 16:05 EDT http://www.prnewswire.com