SOUTH PORTLAND, Maine, Dec 06, 2010 (BUSINESS WIRE) --
Wright Express Corporation (NYSE: WXS) announced today that it has
extended its existing fuel-price risk management program through the
second quarter of 2012.
On December 1, 2010, the Company purchased instruments to cover a
portion of its anticipated domestic fuel-price-related earnings exposure
for the fourth quarter of 2011 and first and second quarters of 2012. At
this time, Wright Express has hedged approximately 80% of its estimated
domestic exposure through the fourth quarter of 2011, approximately 53%
of its first-quarter 2012 estimated domestic exposure and approximately
27% of its second-quarter 2012 estimated domestic exposure. Going
forward, the Company intends to hedge approximately 80% of its
anticipated domestic 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 December 1 purchase locked in a fuel price range
of approximately $2.98 to $3.04 per gallon. The following table states
the approximate range of the collar and percentage of fuel-price-related
earnings exposure:
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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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Q1
2012
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Q2
2012
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Average low end of range
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2.77
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2.87
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2.93
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2.97
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2.95
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2.98
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Average top end of range
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2.83
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2.93
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2.99
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3.03
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3.01
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3.04
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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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53%
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27%
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About Wright Express
Wright
Express is a global provider of business payment processing and
information management solutions. The company's fleet, corporate, and
prepaid payment solutions give customers unparalleled security and
control across a wide spectrum of business sectors around the world. The
company's subsidiaries include Wright Express Financial Services,
TelaPoint, Pacific Pride, Wright Express International, Wright Express
Prepaid Cards Australia, and Wright Express Fuel Cards Australia. Wright
Express and its subsidiaries employ more than 850 associates in five
countries. 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: belief that it has
purchased instruments to cover varying percentages of its anticipated
domestic fuel-price-related earnings exposure through the second quarter
of 2012; intention to hedge approximately 80% of its domestic
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 and cash flows. 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