SOUTH PORTLAND, Maine--(BUSINESS WIRE)--Nov. 20, 2013--
WEX Inc. (NYSE: WEX), a leading provider of corporate payment solutions,
announced today that it has extended its existing fuel-price risk
management program through the second quarter of 2015.
On November 15, 2013, the Company purchased instruments to cover a
portion of its anticipated domestic fuel-price-related earnings exposure
for the fourth quarter of 2014 and the first and second quarters of
2015. At this time, WEX has hedged approximately: 60% of its
fourth-quarter 2014 exposure, 40% of its first-quarter 2015 exposure and
20% of its second-quarter 2015 exposure. Going forward, the Company
intends to hedge approximately 60% of its 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 November purchase locked in a fuel price range
of approximately $3.34 to $3.40 per gallon. The following table states
the approximate range of the collar and percentage of fuel-price-related
earnings exposure:
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Q4
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Q1
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Q2
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Q3
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Q4
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Q1
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Q2
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2013
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2014
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2014
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2014
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2014
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2015
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2015
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Average low end of range
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$3.36
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$3.38
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$3.36
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$3.37
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$3.34
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$3.32
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$3.34
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Average top end of range
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$3.42
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$3.44
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$3.42
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$3.43
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$3.40
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$3.38
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$3.40
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Approximate % locked in
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60%*
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60%**
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60%**
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60%**
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60%**
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40%**
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20%**
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*At the time of execution, 2013 hedges were established without
consideration of Fleet One volumes (WEX acquired Fleet One in October
2012).
**2014 and 2015 hedges have been established with consideration of Fleet
One volumes.
About WEX Inc.
WEX Inc. (NYSE: WEX) is a leading provider of corporate payment
solutions. From its roots in fleet card payments beginning in 1983, WEX
has expanded the scope of its business into a multi-channel provider of
corporate payment solutions representing more than 7.6 million
cardholders and offering exceptional payment security and control across
a wide spectrum of business sectors. The Company’s operations include
WEX Bank, Fleet One, Pacific Pride, rapid! PayCard, Wright Express
Australia, Wright Express New Zealand and CorporatePay Limited, England,
as well as a majority equity position in UNIK S.A., Brazil. WEX and its
subsidiaries employ more than 1,400 associates. For more information
about WEX, please visit http://www.wexinc.com.
This news release contains forward-looking statements, including
statements regarding WEX's belief that it has purchased instruments to
cover varying percentages of its anticipated fuel-price-related earnings
exposure through the second quarter of 2015; intention to hedge
approximately 60% 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. When used in this press release, the words "may," "will,"
"could," "anticipate," "plan," "continue," "project," "intend,"
"estimate," "believe," "expect" and similar expressions are intended to
identify forward-looking statements, although not all forward-looking
statements contain such words. The following factors, among others,
could cause actual results to differ materially from those contained in
forward-looking statements made in this news release: the effects of
general economic conditions on fueling patterns and the commercial
activity of fleets; the effects of the Company's international business
expansion and integration efforts and any failure of those efforts; the
impact and range of credit losses; breaches of the Company's technology
systems and any resulting negative impact on our reputation liability,
or loss of relationships with customers or merchants; the Company's
failure to successfully integrate the businesses it has acquired; 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 banking and securities
regulators, or possible changes in banking regulations impacting the
Company's industrial bank and the Company as the corporate parent; the
impact of foreign currency exchange rates on the Company's operations,
revenue and income; changes in interest rates; financial loss if the
Company determines it necessary to unwind its derivative instrument
position prior to the expiration of a contract; the incurrence of
impairment charges if our assessment of the fair value of certain of our
reporting units changes; the uncertainties of litigation; as well as
other risks and uncertainties identified in Item 1A of the Company's
Annual Report on Form 10-K filed with SEC on March 1, 2013 and any
subsequent securities filings. Our forward-looking statements and these
factors do not reflect the potential future impact of any merger,
acquisition or disposition. The forward-looking statements speak only as
of the date of the initial filing of this news release and undue
reliance should not be placed on these statements. We disclaim any
obligation to update any forward-looking statements as a result of new
information, future events or otherwise.
Source: WEX Inc.
WEX Inc.
News media contact:
Jessica Roy, 207-523-6763
Jessica.Roy@wexinc.com
or
Investor
contact:
Michael E. Thomas, 207-523-6743
Michael.Thomas@wexinc.com