SOUTH PORTLAND, Maine, Apr 20, 2010 (BUSINESS WIRE) --Wright Express Corporation (NYSE: WXS) announced today that it has
extended its existing fuel-price risk management program through the
fourth quarter of 2011.
On April 15, 2010, the Company purchased instruments to cover its
anticipated fuel-price-related earnings exposure for the second, third
and fourth quarters of 2011. At this time, Wright Express has hedged 80%
of its exposure through the second quarter of 2011, 53% of its
third-quarter 2011 exposure and 27% of its fourth-quarter 2011 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 April 15 purchase locked in a fuel price range
of approximately $3.03 to $3.09 per gallon. The following table states
the approximate range of the collar and percentage of fuel-price-related
earnings exposure:
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Q2
2010
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Q3
2010
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Q4
2010
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Q1
2011
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Q2
2011
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Q3
2011
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Q4
2011
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Average low end of range
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3.17
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3.03
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2.69
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2.77
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2.87
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2.94
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3.03
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Average top end of range
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3.23
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3.09
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2.75
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2.83
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2.93
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3.00
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3.09
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Approximate % locked in
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80%
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80%
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80%
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80%
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80%
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53%
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27%
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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,TelaPoint, a provider of supply chain software solutions for
petroleum distributors and retailers, Pacific Pride, an independent fuel
distributor franchisee network, and 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 2011;
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: 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 our Annual Report for the year ended December 31, 2009,
filed on Form 10-K with the Securities and Exchange Commission on
February 26, 2010 and the Company's other 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.
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