SOUTH PORTLAND, Maine--(BUSINESS WIRE)--Jun. 8, 2009--
Wright Express Corporation (NYSE: WXS) announced today that it has
resumed purchases under its existing fuel-price risk management program
through the fourth quarter of 2010.
On June 2, 2009, the Company purchased instruments to cover its
anticipated fuel-price-related earnings exposure for the last three
quarters of 2010. At this time, Wright Express has hedged 90% of its
anticipated exposure through the fourth quarter of 2009, 80% of its
first-half 2010 exposure, 53% of its third-quarter 2010 exposure and 27%
of its fourth-quarter 2010 exposure. Going forward, the Company intends
to hedge approximately 80% of its fuel-price-related earnings exposure
in every quarter, on a rolling basis.
The instruments are designed to enhance the visibility and
predictability of the Company's future earnings. The program uses
instruments that create a "costless collar" based upon both the U.S.
Department of Energy's weekly diesel fuel price index and NYMEX unleaded
gasoline contracts. The June 2 purchase locked in a fuel price range of
approximately $2.65 to $2.71 per gallon. The following table states the
approximate range of the collar and percentage of fuel-price-related
earnings exposure:
|
|
|
|
|
Q2
|
|
|
|
|
Q3
|
|
|
|
|
Q4
|
|
|
|
|
Q1
|
|
|
|
|
Q2
|
|
|
|
|
Q3
|
|
|
|
|
Q4
|
|
|
|
|
|
|
2009
|
|
|
|
|
2009
|
|
|
|
|
2009
|
|
|
|
|
2010
|
|
|
|
|
2010
|
|
|
|
|
2010
|
|
|
|
|
2010
|
|
|
Average low end of range
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.67
|
|
|
|
|
2.86
|
|
|
|
|
3.02
|
|
|
|
|
3.25
|
|
|
|
|
3.17
|
|
|
|
|
3.22
|
|
|
|
|
2.65
|
|
|
Average top end of range
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2.73
|
|
|
|
|
2.92
|
|
|
|
|
3.08
|
|
|
|
|
3.31
|
|
|
|
|
3.23
|
|
|
|
|
3.28
|
|
|
|
|
2.71
|
|
|
Approximate % locked in
|
|
|
|
90
|
%
|
|
|
|
90
|
%
|
|
|
|
90
|
%
|
|
|
|
80
|
%
|
|
|
|
80
|
%
|
|
|
|
53
|
%
|
|
|
|
27
|
%
|
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 4.7 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 Wright Express Corporation's: belief that it has
purchased instruments to cover varying percentages of its anticipated
fuel-price-related earnings exposure through the fourth quarter of 2010;
intention to hedge approximately 80% of its fuel-price-related earnings
exposure in every quarter, on a rolling basis; and belief that the
instruments will enhance the visibility and predictability of the
Company's future earnings. 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; 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; the effects of general economic conditions on the commercial
activity of fleets; the Company's ability to rapidly implement new
technology and systems; changes in interest rates; and, the other risks
and uncertainties outlined in the Company's filings with the Securities
and Exchange Commission, including the annual report on Form 10-K filed
with the SEC on February 27, 2009 and its subsequent filings with the
SEC. Wright Express Corporation undertakes no obligation to update these
forward-looking statements at any future date or dates.
Source: Wright Express Corporation
Wright Express
News media contact:
Jessica Roy, 207-523-6763
Jessica_Roy@wrightexpress.com
or
Investor
contact:
Steve Elder, 207-523-7769
Steve_Elder@wrightexpress.com