Third Quarter Results Exceed Top End of Guidance; Consistent Vehicle
Growth and Stability in Credit Portfolio Position Company to Benefit
from Economic Recovery
SOUTH PORTLAND, Maine--(BUSINESS WIRE)--Oct. 28, 2009--
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
three months ended September 30, 2009.
Total revenue for the third quarter of 2009 decreased 20% to $86.6
million from $108.5 million for the third quarter of 2008. Net income to
common shareholders on a GAAP basis was $23.4 million, or $0.60 per
diluted share, compared with $72.3 million, or $1.82 per diluted share,
for the same period last year. On a non-GAAP basis, the Company’s
adjusted net income for the third quarter of 2009 was $24.9 million, or
$0.63 per diluted share, compared with $21.8 million, or $0.55 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
third quarter of 2009, the Company’s GAAP financial results include an
unrealized $100,000 pre-tax, non-cash, mark-to-market loss on these
instruments. For the third quarter of 2008, the Company reported an
unrealized pre-tax, non-cash, mark-to-market gain on these instruments
of $82.4 million.
Exhibit 1 reconciles adjusted net income for the third quarters of 2009
and 2008, 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 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.
Third Quarter 2009 Performance Metrics
-
Average number of vehicles serviced increased 3% from the third
quarter of 2008 to approximately 4.6 million.
-
Total fuel transactions processed declined 7% from the third quarter
of 2008 to 67.1 million. Payment processing transactions decreased 4%
to 53.0 million, and transaction processing transactions decreased 17%
to 14.1 million.
-
Average expenditure per payment processing transaction decreased 35%
from the third quarter of 2008 to $52.50.
-
Average retail fuel price declined 36% to $2.58 per gallon from $4.02
per gallon in the third quarter of 2008.
-
Total MasterCard purchase volume grew 31% to $876 million, from $670
million for the third quarter of 2008.
To provide investors with additional insight into its operational
performance, Wright Express has included in this news release a table of
selected non-financial metrics for the five quarters ended September 30,
2009. This table is presented as Exhibit 2.
Management Comments on the Third Quarter
“Maintaining focus on growth while managing our business effectively
enabled Wright Express to continue delivering strong financial results
this quarter, despite economic conditions that remained less than
ideal,” said Michael Dubyak, Chairman and CEO. “Revenue and adjusted net
income both exceeded the top end of our guidance range.”
“New business again helped offset the contraction in transactions from
our existing customer base, and fleet transaction volume was in line
with our forecast,” Dubyak said. “Several factors contributed to the
positive results this quarter. On the revenue side, we benefited from
higher-than-expected MasterCard purchase volumes, fuel prices and late
fee income. At the same time, we have continued to be successful in
managing credit loss and other operating expenses.”
“Although the macro economy may be showing signs of modest improvement,
the current trends in fleet fueling activity suggest that the recovery
has not yet extended to many of our existing customers,” said Dubyak.
“When it does, the consistent net growth we have achieved in our total
vehicle count sets the stage for a solid rebound in transaction volume.
In the meantime, we will remain focused on providing greater value to
our customers, continuing to gain market share, and deploying our solid
cash flow to further strengthen and diversify our business.”
Financial Guidance
Wright Express Corporation is issuing financial guidance for the fourth
quarter and raising guidance for the full year 2009. In preparing this
guidance, for the fourth quarter of 2009 management is assuming a 5% to
7% year-over-year decline in transaction volume within the Company’s
installed base of customers due to weak economic conditions. The
guidance below further assumes that credit loss for the fourth quarter
of 2009 will range from 25 to 30 basis points. The guidance below does
not reflect the impact of any stock repurchases that may occur in 2009.
In addition, the Company’s guidance excludes the impact of non-cash,
mark-to-market adjustments on its fuel-price-related derivative
instruments, the amortization of purchased intangibles, asset impairment
charges and adjustments related to the deferred tax asset and related
tax-receivable agreement. The guidance below also excludes the second
quarter gain associated with the settlement of a portion of the
liability under the tax receivable agreement. The fuel prices referenced
below are based on the applicable NYMEX futures price:
-
For the fourth quarter of 2009, the Company expects revenue in the
range of $76.5 million to $81.5 million. This is based on an assumed
average retail fuel price of $2.53 per gallon.
-
For the fourth quarter of 2009, the Company expects adjusted net
income in the range of $20 million to $22 million, or $0.50 to $0.55
per diluted share, based on approximately 39 million shares
outstanding.
-
For the full year 2009, the Company expects revenue in the range of
$311 million to $316 million. This is based on an assumed average
retail fuel price of $2.36 per gallon.
-
For the full year 2009, the Company expects adjusted net income in the
range of $83 million to $85 million, or $2.12 to $2.17 per diluted
share, based on approximately 39 million shares outstanding.
Conference Call Details
In conjunction with this announcement, Wright Express will host a
conference call today, October 28, 2009, at 10:00 a.m. (ET). The
conference call will be webcast live on the Internet, and can be
accessed at the Investor Relations section of the Wright Express
website, www.wrightexpress.com.
The live conference call also can be accessed by dialing (877) 407-5790
or (201) 689-8328. 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 global provider of payment processing and
information management services. Wright Express captures and combines
transaction information from its proprietary network with specialized
analytical tools and purchasing control capabilities in a suite of
solutions that enable fleets to manage their vehicles more effectively.
The Company’s charge cards are used by commercial and government fleets
to purchase fuel and maintenance services for approximately 4.6 million
vehicles. Wright Express markets its services directly to fleets and as
an outsourcing partner for its strategic relationships and franchisees.
The Company’s business portfolio includes a MasterCard-branded corporate
card as well as TelaPoint, a provider of supply chain software solutions
for petroleum distributors and retailers, and Pacific Pride, an
independent fuel distributor franchisee network, as well as
international subsidiaries. For more information about Wright Express,
please visit www.wrightexpress.com.
This press release contains forward-looking statements, including
statements regarding: anticipated increases in transaction volume; focus
on providing value to our customers; gaining market share; deploying
cash flow to further strengthen and diversify our business; and,
earnings guidance. These forward-looking statements include a number of
risks and uncertainties that could cause actual results to differ
materially, including: 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 bank
regulators, or possible changes in banking regulations impacting the
Company’s industrial loan bank and the Company as the corporate parent;
the uncertainties of litigation; the effects of general economics on
fueling patterns and the commercial activity of fleets, as well as other
risks and uncertainties identified in Item 1A of the Company’s Annual
Report for the year ended December 31, 2008, filed on Form 10-K with the
Securities and Exchange Commission on February 27, 2009 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 or
disposition. The forward-looking statements speak only as of the date of
this press 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.
|
WRIGHT EXPRESS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(in thousands, except per share data)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30,
|
|
Nine months ended
September 30,
|
|
|
|
|
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment processing revenue
|
|
|
|
|
|
|
$
|
59,871
|
|
$
|
83,685
|
|
$
|
158,657
|
|
$
|
241,205
|
|
|
Transaction processing revenue
|
|
|
|
|
|
|
|
4,538
|
|
|
5,326
|
|
|
13,199
|
|
|
14,561
|
|
|
Account servicing revenue
|
|
|
|
|
|
|
|
9,540
|
|
|
7,645
|
|
|
27,807
|
|
|
22,656
|
|
|
Finance fees
|
|
|
|
|
|
|
|
8,790
|
|
|
8,109
|
|
|
23,133
|
|
|
23,179
|
|
|
Other
|
|
|
|
|
|
|
|
3,193
|
|
|
2,958
|
|
|
8,930
|
|
|
8,704
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total service revenues
|
|
|
|
|
|
|
|
85,932
|
|
|
107,723
|
|
|
231,726
|
|
|
310,305
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hardware and equipment sales
|
|
|
|
|
|
|
|
710
|
|
|
808
|
|
|
2,718
|
|
|
2,410
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
|
|
|
|
|
86,642
|
|
|
108,531
|
|
|
234,444
|
|
|
312,715
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salary and other personnel
|
|
|
|
|
|
|
|
18,680
|
|
|
14,604
|
|
|
54,792
|
|
|
50,038
|
|
|
Service fees
|
|
|
|
|
|
|
|
7,291
|
|
|
4,923
|
|
|
19,447
|
|
|
15,629
|
|
|
Provision for credit losses
|
|
|
|
|
|
|
|
5,667
|
|
|
9,325
|
|
|
12,469
|
|
|
30,544
|
|
|
Technology leasing and support
|
|
|
|
|
|
|
|
2,424
|
|
|
2,100
|
|
|
6,821
|
|
|
6,478
|
|
|
Occupancy and equipment
|
|
|
|
|
|
|
|
1,960
|
|
|
1,933
|
|
|
6,317
|
|
|
5,783
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
5,359
|
|
|
5,216
|
|
|
15,942
|
|
|
14,642
|
|
|
Operating interest expense
|
|
|
|
|
|
|
|
2,759
|
|
|
9,581
|
|
|
10,889
|
|
|
27,667
|
|
|
Cost of hardware and equipment sold
|
|
|
|
|
|
|
|
638
|
|
|
668
|
|
|
2,394
|
|
|
2,101
|
|
|
Other
|
|
|
|
|
|
|
|
5,518
|
|
|
5,779
|
|
|
17,331
|
|
|
17,415
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
|
|
|
|
|
50,296
|
|
|
54,129
|
|
|
146,402
|
|
|
170,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
|
|
|
36,346
|
|
|
54,402
|
|
|
88,042
|
|
|
142,418
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing interest expense
|
|
|
|
|
|
|
|
(1,355
|
)
|
|
(3,006
|
)
|
|
(5,423
|
)
|
|
(9,123
|
)
|
|
Loss on foreign currency transactions
|
|
|
|
|
|
|
|
(16
|
)
|
|
—
|
|
|
(28
|
)
|
|
—
|
|
|
Gain on settlement of portion of amounts due under tax receivable
agreement
|
|
|
|
|
|
—
|
|
|
—
|
|
|
136,485
|
|
|
—
|
|
|
Net realized and unrealized gains (losses) on fuel price derivatives
|
|
|
|
|
|
|
3,687
|
|
|
66,034
|
|
|
(13,770
|
)
|
|
(31,876
|
)
|
|
Increase in amount due under tax receivable agreement
|
|
|
|
|
|
|
—
|
|
|
(9,159
|
)
|
|
(570
|
)
|
|
(9,159
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
|
|
|
|
|
|
38,662
|
|
|
108,271
|
|
|
204,736
|
|
|
92,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
|
|
|
|
15,299
|
|
|
35,927
|
|
|
77,206
|
|
|
29,771
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
|
|
|
|
23,363
|
|
|
72,344
|
|
|
127,530
|
|
|
62,489
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in available-for-sale securities, net of tax effect of $(42)
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$(63) in 2009 and $10 and $(24) in 2008
|
|
|
|
|
|
|
|
78
|
|
|
19
|
|
|
115
|
|
|
(42
|
)
|
|
Changes in interest rate swaps, net of tax effect of $(96) and $(912)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
in 2009 and $277 and $210 in 2008
|
|
|
|
|
|
|
|
167
|
|
|
495
|
|
|
1,575
|
|
|
367
|
|
|
Foreign currency translation
|
|
|
|
|
|
|
197
|
|
|
(15
|
)
|
|
23
|
|
|
(23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income
|
|
|
|
|
|
|
$
|
23,805
|
|
$
|
72,843
|
|
$
|
129,243
|
|
$
|
62,791
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
$
|
0.61
|
|
$
|
1.86
|
|
$
|
3.33
|
|
$
|
1.60
|
|
|
Diluted
|
|
|
|
|
|
|
$
|
0.60
|
|
$
|
1.82
|
|
$
|
3.25
|
|
$
|
1.57
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
38,217
|
|
|
38,831
|
|
|
38,324
|
|
|
38,999
|
|
|
Diluted
|
|
|
|
|
|
|
|
39,351
|
|
|
39,730
|
|
|
39,359
|
|
|
39,920
|
|
|
|
|
WRIGHT EXPRESS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September 30,
2009
|
|
December 31,
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
$
|
15,904
|
|
$
|
183,117
|
|
|
Accounts receivable (less reserve for credit losses of $9,113 in
2009 and $18,435 in 2008)
|
|
|
|
|
911,455
|
|
|
702,225
|
|
|
Income taxes receivable
|
|
|
|
|
—
|
|
|
7,903
|
|
|
Available-for-sale securities
|
|
|
|
|
10,938
|
|
|
12,533
|
|
|
Fuel price derivatives, at fair value
|
|
|
|
|
20,149
|
|
|
49,294
|
|
|
Property, equipment and capitalized software (net of accumulated
depreciation of
|
|
|
|
|
|
|
|
|
|
|
$68,556 in 2009 and $57,814 in 2008)
|
|
|
|
|
45,385
|
|
|
44,864
|
|
|
Deferred income taxes, net
|
|
|
|
|
182,816
|
|
|
239,957
|
|
|
Goodwill
|
|
|
|
|
315,244
|
|
|
315,230
|
|
|
Other intangible assets, net
|
|
|
|
|
36,101
|
|
|
39,922
|
|
|
Other assets
|
|
|
|
|
17,869
|
|
|
16,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
$
|
1,555,861
|
|
$
|
1,611,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
$
|
348,883
|
|
$
|
249,067
|
|
|
Accrued expenses
|
|
|
|
|
28,506
|
|
|
34,931
|
|
|
Income taxes payable
|
|
|
|
|
160
|
|
|
—
|
|
|
Deposits
|
|
|
|
|
421,982
|
|
|
540,146
|
|
|
Borrowed federal funds
|
|
|
|
|
40,300
|
|
|
—
|
|
|
Revolving line-of-credit facility
|
|
|
|
|
165,700
|
|
|
170,600
|
|
|
Other liabilities
|
|
|
|
|
1,696
|
|
|
3,083
|
|
|
Amounts due under tax receivable agreement
|
|
|
|
|
110,460
|
|
|
309,366
|
|
|
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
|
|
|
|
|
1,127,687
|
|
|
1,317,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
Common stock $0.01 par value; 175,000 shares authorized, 41,102 in
2009
|
|
|
|
|
|
|
|
|
|
|
and 40,966 in 2008 shares issued; 38,131 in 2009 and 38,244 in 2008
shares outstanding
|
|
|
|
|
411
|
|
|
410
|
|
|
Additional paid-in capital
|
|
|
|
|
110,895
|
|
|
100,359
|
|
|
Retained earnings
|
|
|
|
|
400,009
|
|
|
272,479
|
|
|
Other comprehensive loss, net of tax:
|
|
|
|
|
|
|
|
|
|
|
Net unrealized loss on available-for-sale securities
|
|
|
|
|
62
|
|
|
(53
|
)
|
|
Net unrealized loss on interest rate swaps
|
|
|
|
|
(161
|
)
|
|
(1,736
|
)
|
|
Net foreign currency translation adjustment
|
|
|
|
|
(32
|
)
|
|
(55
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive loss
|
|
|
|
|
(131
|
)
|
|
(1,844
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less treasury stock at cost, 2,971 shares in 2009 and 2,722 shares
in 2008
|
|
|
|
|
(83,010
|
)
|
|
(76,742
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
|
|
428,174
|
|
|
294,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
|
$
|
1,555,861
|
|
$
|
1,611,855
|
|
|
|
|
WRIGHT EXPRESS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine months ended
September 30,
|
|
|
|
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
|
|
$
|
127,530
|
|
$
|
62,489
|
|
|
Adjustments to reconcile net income to net cash (used for) provided
by operating activities:
|
|
|
|
|
|
|
|
|
|
|
Fair value change of fuel price derivatives
|
|
|
|
|
29,145
|
|
|
(4,652
|
)
|
|
Stock-based compensation
|
|
|
|
|
4,339
|
|
|
3,914
|
|
|
Depreciation and amortization
|
|
|
|
|
16,413
|
|
|
14,950
|
|
|
Loss on sale of available for sale securities
|
|
|
|
|
15
|
|
|
—
|
|
|
Gain on settlement of portion of amounts due under tax receivable
agreement
|
|
|
|
|
(136,485
|
)
|
|
—
|
|
|
Deferred taxes
|
|
|
|
|
56,166
|
|
|
5,594
|
|
|
Provision for credit losses
|
|
|
|
|
12,470
|
|
|
30,544
|
|
|
Loss on disposal of property and equipment
|
|
|
|
|
45
|
|
|
66
|
|
|
Impairment of internal-use software
|
|
|
|
|
421
|
|
|
—
|
|
|
Changes in operating assets and liabilities, net of effects of
acquisitions in 2008:
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
(221,619
|
)
|
|
(293,517
|
)
|
|
Other assets
|
|
|
|
|
(1,530
|
)
|
|
(3,192
|
)
|
|
Accounts payable
|
|
|
|
|
99,795
|
|
|
193,593
|
|
|
Accrued expenses
|
|
|
|
|
(3,990
|
)
|
|
(1,621
|
)
|
|
Income taxes
|
|
|
|
|
14,964
|
|
|
2,057
|
|
|
Other liabilities
|
|
|
|
|
(1,409
|
)
|
|
(1,356
|
)
|
|
Amounts due under tax receivable agreement
|
|
|
|
|
(62,421
|
)
|
|
(4,502
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used for) provided by operating activities
|
|
|
|
|
(66,151
|
)
|
|
4,367
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
|
(13,129
|
)
|
|
(12,339
|
)
|
|
Purchase of available-for-sale securities
|
|
|
|
|
(120
|
)
|
|
(4,259
|
)
|
|
Maturities of available-for-sale securities
|
|
|
|
|
1,871
|
|
|
927
|
|
|
Sale of available-for-sale securities
|
|
|
|
|
7
|
|
|
—
|
|
|
Purchase of trade name
|
|
|
|
|
—
|
|
|
(44
|
)
|
|
Acquisitions, net of cash acquired
|
|
|
|
|
—
|
|
|
(41,526
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used for investing activities
|
|
|
|
|
(11,371
|
)
|
|
(57,241
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
Excess tax benefits from equity instrument share-based payment
arrangements
|
|
|
|
|
—
|
|
|
140
|
|
|
Repurchase of share-based awards to satisfy tax withholdings
|
|
|
|
|
(921
|
)
|
|
(2,076
|
)
|
|
Proceeds from stock option exercises
|
|
|
|
|
212
|
|
|
415
|
|
|
Net (decrease) increase in deposits
|
|
|
|
|
(118,164
|
)
|
|
66,650
|
|
|
Net increase in borrowed federal funds
|
|
|
|
|
40,300
|
|
|
23,305
|
|
|
Net change in revolving line-of-credit facility
|
|
|
|
|
(4,900
|
)
|
|
12,800
|
|
|
Loan origination fees paid for revolving line-of-credit facility
|
|
|
|
|
—
|
|
|
(1,556
|
)
|
|
Purchase of shares of treasury stock
|
|
|
|
|
(6,268
|
)
|
|
(31,391
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used for) provided by financing activities
|
|
|
|
|
(89,741
|
)
|
|
68,287
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
50
|
|
|
(23
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
|
|
(167,213
|
)
|
|
15,390
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
183,117
|
|
|
43,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
|
|
$
|
15,904
|
|
$
|
58,409
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow information
|
|
|
|
|
|
|
|
|
|
|
Interest paid
|
|
|
|
$
|
24,978
|
|
$
|
34,890
|
|
|
Income taxes paid
|
|
|
|
$
|
6,075
|
|
$
|
22,222
|
|
|
|
|
Exhibit 1
Wright Express Corporation
Reconciliation of Adjusted Net Income to GAAP Net Income
Third Quarter 2009
(in thousands)
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
September 30, 2009
|
|
Three months ended
September 30, 2008
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted net income
|
|
$
|
24,898
|
|
|
$
|
21,786
|
|
|
Unrealized gains (losses) on fuel price derivatives
|
|
|
(100
|
)
|
|
|
82,372
|
|
|
Amortization of acquired intangible assets
|
|
|
(1,264
|
)
|
|
|
(1,313
|
)
|
|
Tax impact
|
|
|
(171
|
)
|
|
|
(30,501
|
)
|
|
GAAP net income
|
|
$
|
23,363
|
|
|
$
|
72,344
|
|
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, and excludes the
amortization of purchased intangibles. 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;
-
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 has no impact on the
day-to-day operations of the business.
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 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q3 2009
|
|
Q2 2009
|
|
Q1 2009
|
|
Q4 2008
|
|
Q3 2008
|
|
Fleet Payment Processing Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment processing transactions (000s)
|
|
|
53,036
|
|
|
51,579
|
|
|
49,297
|
|
|
51,509
|
|
|
55,519
|
|
|
Gallons per payment processing transaction
|
|
|
20.4
|
|
|
20.4
|
|
|
20.3
|
|
|
20.3
|
|
|
20.1
|
|
|
Payment processing gallons of fuel (000s)
|
|
|
1,080,678
|
|
|
1,050,835
|
|
|
1,003,189
|
|
|
1,047,627
|
|
|
1,115,908
|
|
|
Average fuel price
|
|
$
|
2.58
|
|
|
2.33
|
|
|
2.00
|
|
|
2.59
|
|
|
4.02
|
|
|
Payment processing $ of fuel (000s)
|
|
$
|
2,784,619
|
|
|
2,443,482
|
|
|
2,010,123
|
|
|
2,713,812
|
|
|
4,488,293
|
|
|
Net payment processing rate
|
|
|
1.80
|
%
|
|
1.85
|
%
|
|
1.94
|
%
|
|
1.86
|
%
|
|
1.71
|
%
|
|
Fleet payment processing revenue (000s)
|
|
$
|
50,211
|
|
|
45,205
|
|
|
38,988
|
|
|
50,407
|
|
|
76,802
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Payment Processing Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard purchase volume (000s)
|
|
$
|
875,752
|
|
|
771,469
|
|
|
649,048
|
|
|
585,967
|
|
|
670,137
|
|
|
Net interchange rate
|
|
|
1.10
|
%
|
|
1.11
|
%
|
|
0.93
|
%
|
|
0.99
|
%
|
|
1.03
|
%
|
|
MasterCard payment processing revenue (000s)
|
|
$
|
9,660
|
|
|
8,589
|
|
|
6,004
|
|
|
5,830
|
|
|
6,883
|
|
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 average 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 average percentage of the dollar
value of each MasterCard transaction that Wright Express records as
revenue less any discounts given to customers.
Source: Wright Express Corporation
News media contact:
Wright Express
Jessica Roy,
207-523-6763
Jessica_Roy@wrightexpress.com
or
Investor
contact:
Wright Express
Steve Elder, 207-523-7769
Steve_Elder@wrightexpress.com