Go to WEX Inc / Home / News / News Details

News Details

View all News

WEX Inc. Reports First Quarter 2021 Financial Results

April 29, 2021

PORTLAND, Maine--(BUSINESS WIRE)-- WEX Inc. (NYSE: WEX), a leading financial technology service provider, today reported financial results for the three months ended March 31, 2021.

“In the first quarter, we delivered strong momentum sequentially, exceeded our revenue expectations and achieved $16.8 billion of total purchase volume, driven by meaningful contributions in all segments. In aggregate, Fleet, Corporate Payments and Health are above pre-pandemic revenue levels. These solid results reflect a number of exciting new wins and renewals as well as a robust pipeline of opportunities that give me confidence in our ability to drive market share gains through the remainder of the year.” said Melissa Smith, WEX’s Chair and Chief Executive Officer.

Ms. Smith added, “In the first quarter, we built upon our strong technology foundation and are accelerating our innovation by integrating our product capabilities across the entire WEX platform and exposing these capabilities through APIs. We continue to find new ways to deliver value to customers and prospects, creating strong new sales momentum which will be coupled with the continued recovery of purchase volume as mobility increases. Importantly, we focused on empowering our employees to grow and thrive in a values-based environment. These efforts, guided by our refreshed strategic pillars, will serve as the foundation of WEX’s next chapter of growth. I’m pleased with the impressive accomplishments made this quarter, which I expect to be just the start of another exciting and pivotal year for WEX.”

First Quarter 2021 Financial Results

Total revenue for the first quarter of 2021 decreased 5% to $410.8 million from $431.7 million for the first quarter of 2020. This revenue decrease in the quarter includes a $1.0 million unfavorable impact from fuel prices and spreads and $3.9 million positive impact from foreign exchange rates.

Net loss attributable to shareholders on a GAAP basis decreased by $13.7 million to a net loss of $2.6 million, or $(0.06) per diluted share, compared with a net loss of $16.3 million, or $(0.37) per diluted share, for the first quarter of 2020. The Company's adjusted net income attributable to shareholders, which is a non-GAAP measure, was $81.3 million for the first quarter of 2021, or $1.79 per diluted share, down 1% per diluted share from $79.7 million or $1.81 per diluted share for the same period last year. See Exhibit 1 for a full explanation and reconciliation of adjusted net (loss) income attributable to shareholders and adjusted net income attributable to shareholders per diluted share to the comparable GAAP measures.

First Quarter 2021 Performance Metrics

  • Average number of vehicles serviced was approximately 15.8 million, an increase of 4% from the first quarter of 2020.
  • Total fuel transactions processed decreased 3% from the first quarter of 2020 to 146.4 million. Payment processing transactions decreased 3% to 118.4 million.
  • Travel and Corporate Solutions' purchase volume decreased 24% to $6.1 billion from $8.0 billion in the first quarter of 2020.
  • Health and Employee Benefit Solutions' average number of Software-as-a-Service (SaaS) accounts in the U.S. grew 7% to 15.5 million from 14.5 million in the first quarter of 2020.

“We carried the strong momentum exiting 2020 through the first quarter as we continued to successfully execute against our refined strategic pillars and position WEX for long-term sustainable growth. Improvements in macro-economic factors, the faster pace of vaccinations and increasing re-openings across WEX’s end markets combined with underlying strength across the business, drove WEX to see sequential improvements and exceed our revenue expectations this quarter,” said Roberto Simon, WEX’s Chief Financial Officer. “Additionally, our balance sheet and liquidity remain healthy with the amended credit facility that closed in April as we prepare to make the strategic acquisitions we have announced. I am encouraged by this strong start to the year and expect these trends to continue.”

Additional Information

Management uses the non-GAAP measures presented within this news release to evaluate the Company's performance on a comparable basis. 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.

To provide investors with additional insight into its operational performance, WEX has included in this news release in Exhibit 1, reconciliations of non-GAAP measures referenced in this news release, in Exhibit 2, tables illustrating the impact of foreign currency rates and fuel prices for each of our reportable segments for the three months ended March 31, 2021, and in Exhibit 3, a table of selected non-financial metrics for the quarter ended March 31, 2021 and four preceding quarters. The Company is also providing segment revenue for the three months ended March 31, 2021 and 2020 in Exhibit 4 and information regarding segment adjusted operating income margin and adjusted operating income margin in Exhibit 5.

Conference Call Details

In conjunction with this announcement, WEX will host a conference call today, April 29, 2021, at 10:00 a.m. (EDT). As previously announced, the conference call will be webcast live on the Internet, and can be accessed along with the accompanying slides at the Investor Relations section of the WEX website, www.wexinc.com. The live conference call also can be accessed by dialing (866) 324-3683 or (509) 844-0959. The Conference ID number is 2378288. A replay of the webcast and the accompanying slides will be available on the Company's website.

About WEX

Powered by the belief that complex payment systems can be made simple, WEX (NYSE: WEX) is a leading financial technology service provider across a wide spectrum of sectors, including fleet, travel and healthcare. WEX operates in more than 10 countries and in more than 20 currencies through more than 5,200 associates around the world. WEX fleet cards offer approximately 16 million vehicles exceptional payment security and control; purchase volume in travel and corporate solutions was $20.9 billion in 2020; and the WEX Health financial technology platform helps more than 33 million consumers better manage healthcare expenses. For more information, visit www.wexinc.com.

Forward-Looking Statements

This earnings release contains forward-looking statements, including statements regarding: assumptions underlying the Company's future financial performance, future operations; future growth opportunities and expectations; expectations for future revenue performance, future impacts from areas of investment, expectations for the macro environment; and, expectations for volumes. Any statements that are not statements of historical facts may be deemed to be forward-looking statements. When used in this earnings release, the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “project” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially, including: the extent to which the coronavirus (COVID-19) pandemic and measures taken in response thereto impact our business, results of operations and financial condition in excess of current expectations; the effects of general economic conditions, including those caused by the effects of COVID-19, on fueling patterns as well as payment and transaction processing activity; the impact of foreign currency exchange rates on the Company’s operations, revenue and income; changes in interest rates; the impact of fluctuations in fuel prices, including the impact of any reductions in fuel prices and the resulting impact on our revenues and net income; changes or limitations on interchange fees; failure to comply with the applicable requirements of MasterCard or Visa contracts and rules; the effects of the Company’s business expansion and acquisition efforts; potential adverse changes to business or employee relationships, including those resulting from the completion of an acquisition; competitive responses to any acquisitions; uncertainty of the expected financial performance of the combined operations following completion of an acquisition; the failure to complete or successfully integrate the Company’s acquisitions or the ability to realize anticipated synergies and cost savings from such transactions; unexpected costs, charges or expenses resulting from an acquisition, specifically including the recent eNett and Optal acquisitions; the Company’s failure to successfully acquire, integrate, operate and expand commercial fuel card programs; the failure of corporate investments to result in anticipated strategic value; the impact and size of credit losses; the impact of changes to the Company’s credit standards; breaches of the Company’s technology systems or those of our third-party service providers and any resulting negative impact on our reputation, liabilities or relationships with customers or merchants; the Company’s failure to maintain or renew key commercial agreements; failure to expand the Company’s technological capabilities and service offerings as rapidly as the Company’s competitors; failure to successfully implement the Company’s information technology strategies and capabilities in connection with its technology outsourcing and insourcing arrangements and any resulting cost associated with that failure; the actions of regulatory bodies, including banking and securities regulators, or possible changes in banking or financial regulations impacting the Company’s industrial bank, the Company as the corporate parent or other subsidiaries or affiliates; legal, regulatory, political and economic uncertainty surrounding the United Kingdom’s departure from the European Union and the resulting trade agreement; the impact of the future transition from LIBOR as a global benchmark to a replacement rate; the impact of the Company’s recently amended and restated credit agreement and its presently outstanding notes on our operations; the impact of increased leverage on the Company’s operations, results or borrowing capacity generally, and as a result of acquisitions specifically; the impact of sales or dispositions of significant amounts of our outstanding common stock into the public market, or the perception that such sales or dispositions could occur; the possible dilution to our stockholders caused by the issuance of additional shares of common stock or equity-linked securities, whether as result of our convertible notes or otherwise; 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 our annual report on Form 10-K for the year ended December 31, 2020, filed with the Securities and Exchange Commission on March 1, 2021. The Company's forward-looking statements do not reflect the potential future impact of any alliance, merger, acquisition, disposition or stock repurchases. The forward-looking statements speak only as of the date of this earnings 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.

WEX INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(in thousands, except per share data)

(unaudited)

 

 

Three months ended March 31,

 

2021

 

2020

Revenues

 

 

 

Payment processing revenue

$

188,389

 

 

$

204,037

 

Account servicing revenue

118,623

 

 

113,840

 

Finance fee revenue

52,153

 

 

55,927

 

Other revenue

51,592

 

 

57,875

 

Total revenues

410,757

 

 

431,679

 

Cost of services

 

 

 

Processing costs

109,762

 

 

104,917

 

Service fees

11,146

 

 

13,754

 

Provision for credit losses

5,059

 

 

33,987

 

Operating interest

2,624

 

 

8,385

 

Depreciation and amortization

29,194

 

 

24,789

 

Total cost of services

157,785

 

 

185,832

 

General and administrative

86,431

 

 

62,036

 

Sales and marketing

78,347

 

 

68,782

 

Depreciation and amortization

37,653

 

 

40,200

 

Operating income

50,541

 

 

74,829

 

Financing interest expense

(33,284

)

 

(32,031

)

Net foreign currency loss

(2,755

)

 

(28,727

)

Net unrealized gain (loss) on financial instruments

7,033

 

 

(32,047

)

Income (loss) before income taxes

21,535

 

 

(17,976

)

Income tax benefit

(1,670

)

 

(5,707

)

Net income (loss)

23,205

 

 

(12,269

)

Less: Net income from non-controlling interests

726

 

 

1,363

 

Net income (loss) attributable to WEX Inc.

$

22,479

 

 

$

(13,632

)

Change in value of redeemable non-controlling interest

(25,044

)

 

(2,624

)

Net loss attributable to shareholders

$

(2,565

)

 

$

(16,256

)

 

 

 

 

Net loss attributable to shareholders per share:

 

 

 

Basic

$

(0.06

)

 

$

(0.37

)

Diluted

$

(0.06

)

 

$

(0.37

)

Weighted average common shares outstanding:

 

 

 

Basic

44,343

 

 

43,416

 

Diluted

44,343

 

 

43,416

 

WEX INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(in thousands)

(unaudited)

 

 

March 31,
2021

 

December 31,
2020

Assets

 

 

 

Cash and cash equivalents

$

561,199

 

 

$

852,033

 

Restricted cash

412,451

 

 

477,620

 

Accounts receivable

2,506,479

 

 

1,993,329

 

Securitized accounts receivable, restricted

133,280

 

 

93,236

 

Prepaid expenses and other current assets

95,002

 

 

86,629

 

Total current assets

3,708,411

 

 

3,502,847

 

Property, equipment and capitalized software

182,911

 

 

188,340

 

Goodwill and other intangible assets

4,172,402

 

 

4,240,150

 

Investment securities

36,832

 

 

37,273

 

Deferred income taxes, net

21,050

 

 

17,524

 

Other assets

195,127

 

 

197,227

 

Total assets

$

8,316,733

 

 

$

8,183,361

 

Liabilities and Stockholders’ Equity

 

 

 

Accounts payable

$

1,123,018

 

 

$

778,207

 

Accrued expenses

321,081

 

 

362,472

 

Restricted cash payable

412,451

 

 

477,620

 

Short-term deposits

1,043,457

 

 

911,395

 

Short-term debt, net

354,298

 

 

152,730

 

Other current liabilities

53,440

 

 

58,429

 

Total current liabilities

3,307,745

 

 

2,740,853

 

Long-term debt, net

2,508,311

 

 

2,874,113

 

Long-term deposits

118,591

 

 

148,591

 

Deferred income taxes, net

198,790

 

 

220,122

 

Other liabilities

152,454

 

 

164,546

 

Total liabilities

6,285,891

 

 

6,148,225

 

Commitments and contingencies

 

 

 

Redeemable non-controlling interest

142,616

 

 

117,219

 

Stockholders’ Equity

 

 

 

Total WEX Inc. stockholders’ equity

1,875,149

 

 

1,904,895

 

Non-controlling interest

13,077

 

 

13,022

 

Total stockholders’ equity

1,888,226

 

 

1,917,917

 

Total liabilities and stockholders’ equity

$

8,316,733

 

 

$

8,183,361

 

Exhibit 1

Reconciliation of Non-GAAP Measures

(in thousands, except per share data)

(unaudited)

 

Reconciliation of GAAP Net (Loss) Income Attributable to Shareholders to Adjusted Net Income Attributable to Shareholders

 

 

Three Months Ended March 31,

 

2021

 

2020

 

 

 

per diluted share

 

 

 

per diluted share

Net loss attributable to shareholders

$

(2,565

)

 

$

(0.06

)

 

$

(16,256

)

 

$

(0.37

)

Unrealized (gain) loss on financial instruments

(7,033

)

 

(0.16

)

 

32,047

 

 

0.74

 

Net foreign currency remeasurement loss

2,755

 

 

0.06

 

 

28,727

 

 

0.66

 

Acquisition–related intangible amortization

42,454

 

 

0.96

 

 

42,538

 

 

0.98

 

Other acquisition and divestiture related items

14,796

 

 

0.33

 

 

7,942

 

 

0.18

 

Stock–based compensation

18,943

 

 

0.43

 

 

11,820

 

 

0.27

 

Other costs

12,237

 

 

0.28

 

 

2,240

 

 

0.05

 

Debt restructuring and debt issuance cost amortization

5,092

 

 

0.11

 

 

2,082

 

 

0.05

 

ANI adjustments attributable to non–controlling interests

23,800

 

 

0.54

 

 

2,224

 

 

0.05

 

Tax related items

(29,205

)

 

(0.66

)

 

(33,680

)

 

(0.78

)

Dilutive impact of stock awards1

 

 

(0.04

)

 

 

 

(0.02

)

Adjusted net income attributable to shareholders

$

81,274

 

 

$

1.79

 

 

$

79,684

 

 

$

1.81

 

1 As the Company reported a net loss for the three months ended March 31, 2021 and 2020 under U.S. Generally Accepted Accounting Principles (“GAAP”), the diluted weighted average shares outstanding equals the basic weighted average shares outstanding for those periods. The non-GAAP adjustments described above resulted in adjusted net income attributable to shareholders (versus a loss on a GAAP basis) for the first quarters of 2021 and 2020. Therefore, dilutive common stock equivalents have been included in the calculation of adjusted diluted weighted average shares outstanding to arrive at adjusted per share data.

Reconciliation of GAAP Operating Income to Total Segment Adjusted Operating Income and Adjusted Operating Income

 

 

Three Months Ended March 31,

 

2021

 

2020

Operating income

$

50,541

 

 

$

74,829

 

Unallocated corporate expenses

16,209

 

 

16,543

 

Acquisition-related intangible amortization

42,454

 

 

42,538

 

Other acquisition and divestiture related items

14,796

 

 

7,942

 

Stock-based compensation

18,943

 

 

11,820

 

Other costs

12,237

 

 

2,240

 

Debt restructuring costs

637

 

 

78

 

Total segment adjusted operating income

$

155,817

 

 

$

155,990

 

Unallocated corporate expenses

(16,209

)

 

(16,543

)

Adjusted operating income

$

139,608

 

 

$

139,447

 

The Company's non-GAAP adjusted net income excludes unrealized gains and losses on financial instruments, net foreign currency gains and losses, acquisition-related intangible amortization, other acquisition and divestiture related items, stock-based compensation, other costs, debt restructuring and debt issuance cost amortization, adjustments attributable to our non-controlling interests and certain tax related items.

The Company's non-GAAP adjusted operating income excludes acquisition-related intangible amortization, other acquisition and divestiture related items, stock-based compensation, other costs, and debt restructuring costs. Total segment adjusted operating income incorporates these same adjustments and further excludes unallocated corporate expenses.

Although adjusted net income, adjusted operating income and total segment adjusted operating income are not calculated in accordance with GAAP, these non-GAAP measures are integral to the Company's reporting and planning processes and the chief operating decision maker of the Company uses segment adjusted operating income to allocate resources among our operating segments. The Company considers these measures integral because they exclude the above specified items that the Company's management excludes in evaluating the Company's performance. 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 financial instruments, including interest rate swap agreements and investment securities, 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 these financial instruments. Additionally, the non-cash mark-to-market adjustments on financial instruments are difficult to forecast accurately, making comparisons across historical and future quarters difficult to evaluate.
  • Net foreign currency gains and losses primarily result from the remeasurement to functional currency of cash, accounts receivable and accounts payable balances, certain intercompany notes denominated in foreign currencies and any gain or loss on foreign currency hedges relating to these items. The exclusion of these items helps management compare changes in operating results between periods that might otherwise be obscured due to currency fluctuations.
  • The Company considers certain acquisition-related costs, including investment banking fees, warranty and indemnity insurance, certain integration related expenses and amortization of acquired intangibles, as well as gains and losses from divestitures, to be unpredictable, dependent on factors that may be outside of our control and unrelated to the continuing operations of the acquired or divested business or the Company. In addition, the size and complexity of an acquisition, which often drives the magnitude of acquisition-related costs, may not be indicative of such future costs. The Company believes that excluding acquisition-related costs and gains or losses of divestitures facilitates the comparison of our financial results to the Company's historical operating results and to other companies in our industry.
  • Stock-based compensation is different from other forms of compensation as it is a non-cash expense. For example, a cash salary generally has a fixed and unvarying cash cost. In contrast, the expense associated with an equity-based award is generally unrelated to the amount of cash ultimately received by the employee, and the cost to the Company is based on a stock-based compensation valuation methodology and underlying assumptions that may vary over time.
  • We exclude certain other costs when evaluating our continuing business performance when such items are not consistently occurring and do not reflect expected future operating expense, nor provide insight into the fundamentals of current or past operations of our business. These include costs related to certain identified initiatives (including technology initiatives) to further streamline the business, improve the Company's efficiency, create synergies, and globalize the Company's operations, all with an objective to improve scale and efficiency and increase profitability going forward. For the three months ended March 31, 2021, other costs additionally include a penalty of $10.3 million incurred on termination of a contract. For the three months ended March 31, 2020, other costs include certain costs incurred in association with COVID-19, including the cost of providing additional health, welfare and technological support to our employees as they work remotely.
  • Debt restructuring and debt issuance cost amortization are unrelated to the continuing operations of the Company. Debt restructuring costs are not consistently occurring and do not reflect expected future operating expense, nor do they provide insight into the fundamentals of current or past operations of our business. In addition, since debt issuance cost amortization is dependent upon the financing method, which can vary widely company to company, we believe that excluding these costs helps to facilitate comparison to historical results as well as to other companies within our industry.
  • The adjustments attributable to non-controlling interests, including adjustments to the redemption value of a non-controlling interest and non-cash adjustments related to the tax receivable agreement, have no significant impact on the ongoing operations of the business.
  • The tax related items are the difference between the Company’s U.S. GAAP tax provision and a pro forma tax provision based upon the Company’s adjusted net income before taxes as well as the impact from certain discrete tax items. The methodology utilized for calculating the Company’s adjusted net income tax provision is the same methodology utilized in calculating the Company’s U.S. GAAP tax provision.
  • The Company does not allocate certain corporate expenses to our operating segments, as these items are centrally controlled and are not directly attributable to any reportable segment.

For the same reasons, WEX believes that adjusted net income, adjusted operating income and total segment adjusted operating income may also be useful to investors when evaluating the Company's performance. However, because adjusted net income, adjusted operating income and total segment adjusted operating income are non-GAAP measures, they should not be considered as a substitute for, or superior to, net income, operating income or cash flows from operating activities as determined in accordance with GAAP. In addition, adjusted net income, adjusted operating income and total segment adjusted operating income as used by WEX may not be comparable to similarly titled measures employed by other companies.

Exhibit 2

Impact of Certain Macro Factors on Reported Revenue and Adjusted Net Income

(in thousands, except per share data)

(unaudited)

 

The table below shows the impact of certain macro factors on reported revenue:

 

 

Segment Revenue Results

 

Fleet Solutions

 

Travel and Corporate
Solutions

 

Health and Employee
Benefit Solutions

 

Total WEX Inc.

 

Three months ended March 31,

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

Reported revenue

$

243,837

 

 

$

249,847

 

 

$

70,642

 

 

$

84,359

 

 

$

96,278

 

 

$

97,473

 

 

$

410,757

 

 

$

431,679

 

FX impact (favorable) / unfavorable

$

(3,626

)

 

$

 

 

$

(305

)

 

$

 

 

$

 

 

$

 

 

$

(3,931

)

 

$

 

PPG impact (favorable) / unfavorable

$

966

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

966

 

 

$

 

To determine the impact of foreign exchange translation (“FX”) on revenue, revenue from entities whose functional currency is not denominated in U.S. dollars, as well as revenue from purchase volume transacted in non-U.S. denominated currencies, were translated using the weighted average exchange rates for the same period in the prior year, exclusive of revenue derived from 2020 acquisitions for one year following the acquisition dates.

To determine the impact of price per gallon of fuel (“PPG”) on revenue, revenue subject to changes in fuel prices was calculated based on the average retail price of fuel for the same period in the prior year for the portion of our business that earns revenue based on a percentage of fuel spend, exclusive of revenue derived from 2020 acquisitions for one year following the acquisition dates. For the portions of our business that earn revenue based on margin spreads, revenue was calculated utilizing the comparable margin from the prior year.

The table below shows the impact of certain macro factors on Adjusted Net Income:

 

Segment Estimated Earnings Impact

 

Fleet Solutions

 

Travel and Corporate
Solutions

 

Health and Employee
Benefit Solutions

 

Three months ended March 31,

 

2021

 

2020

 

2021

 

2020

 

2021

 

2020

FX impact (favorable) / unfavorable

$

(1,689

)

 

$

 

 

$

(136

)

 

$

 

 

$

 

 

$

 

PPG impact (favorable) / unfavorable

$

486

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

 

To determine the estimated earnings impact of FX on revenue and expenses from entities whose functional currency is not denominated in U.S. dollars, as well as revenue and variable expenses from purchase volume transacted in non-U.S. denominated currencies, amounts were translated using the weighted average exchange rates for the same period in the prior year, net of tax, exclusive of revenue and expenses derived from 2020 acquisitions for one year following the acquisition dates.

To determine the estimated earnings impact of PPG, revenue and certain variable expenses impacted by changes in fuel prices were adjusted based on the average retail price of fuel for the same period in the prior year for the portion of our business that earns revenue based on a percentage of fuel spend, net of applicable taxes, exclusive of revenue and expenses derived from 2020 acquisitions for one year following the acquisition dates. For the portions of our business that earn revenue based on margin spreads, revenue was adjusted to the comparable margin from the prior year, net of non-controlling interests and applicable taxes.

Exhibit 3

Selected Non-Financial Metrics

(unaudited)

 

Q1 2021

 

Q4 2020

 

Q3 2020

 

Q2 2020

 

Q1 2020

Fleet Solutions:

 

 

 

 

 

 

 

 

 

Payment processing transactions (000s) (1)

118,389

 

 

118,287

 

 

120,900

 

 

103,086

 

 

121,591

 

Payment processing gallons of fuel (000s) (2)

3,233,943

 

 

3,265,927

 

 

3,247,507

 

 

2,830,265

 

 

3,123,066

 

Average US fuel price (US$ / gallon)

$

2.72

 

 

$

2.26

 

 

$

2.23

 

 

$

2.07

 

 

$

2.57

 

Payment processing $ of fuel (000s) (3)

$

9,176,960

 

 

$

7,767,530

 

 

$

7,609,098

 

 

$

6,135,265

 

 

$

8,412,642

 

Net payment processing rate (4)

1.20

%

 

1.27

%

 

1.35

%

 

1.47

%

 

1.35

%

Payment processing revenue (000s)

$

110,577

 

 

$

98,954

 

 

$

102,419

 

 

$

90,147

 

 

$

113,323

 

Net late fee rate (5)

0.45

%

 

0.54

%

 

0.48

%

 

0.57

%

 

0.56

%

Late fee revenue (000s) (6)

$

41,150

 

 

$

41,901

 

 

$

36,232

 

 

$

35,071

 

 

$

46,740

 

Travel and Corporate Solutions:

 

 

 

 

 

 

 

 

 

Purchase volume (000s) (7)

$

6,107,675

 

 

$

4,968,321

 

 

$

4,699,737

 

 

$

3,168,064

 

 

$

8,041,112

 

Net interchange rate (8)

0.94

%

 

1.26

%

 

1.13

%

 

1.37

%

 

0.87

%

Payment solutions processing revenue (000s)

$

57,248

 

 

$

62,376

 

 

$

53,239

 

 

$

43,261

 

 

$

70,268

 

Health and Employee Benefit Solutions:

 

 

 

 

 

 

 

 

 

Purchase volume (000s) (9)

$

1,484,226

 

 

$

1,074,977

 

 

$

1,120,786

 

 

$

1,017,318

 

 

$

1,592,313

 

Average number of SaaS accounts (000s) (10)

15,513

 

 

14,502

 

 

14,599

 

 

14,487

 

 

14,458

 

Definitions and explanations:

(1) Payment processing transactions represents the total number of purchases made by fleets that have a payment processing relationship with WEX.

(2) Payment processing gallons of fuel represents the total number of gallons of fuel purchased by fleets that have a payment processing relationship with WEX.

(3) Payment processing dollars of fuel represents the total dollar value of the fuel purchased by fleets that have a payment processing relationship with WEX.

(4) Net payment processing rate represents the percentage of the dollar value of each payment processing transaction that WEX records as revenue from merchants, less certain discounts given to customers and network fees.

(5) Net late fee rate represents late fee revenue as a percentage of fuel purchased by fleets that have a payment processing relationship with WEX.

(6) Late fee revenue represents fees charged for payments not made within the terms of the customer agreement based upon the outstanding customer receivable balance.

(7) Purchase volume represents the total dollar value of all WEX issued transactions that use WEX corporate card products and virtual card products.

(8) Net interchange rate represents the percentage of the dollar value of each payment processing transaction that WEX records as revenue from merchants, less certain discounts given to customers and network fees.

(9) Purchase volume represents the total US dollar value of all transactions where interchange is earned by WEX.

(10) Average number of Health and Employee Benefit Solutions accounts represents the number of active Consumer Directed Health, COBRA, and billing accounts on our SaaS platforms in the United States.

Exhibit 4

Segment Revenue Information

(in thousands)

(unaudited)

 

 

Three months ended
March 31,

Increase (decrease)

Fleet Solutions

2021

2020

Amount

Percent

Revenues

 

 

 

 

Payment processing revenue

$

110,576

$

113,323

$

(2,747

)

(2

)%

Account servicing revenue

 

39,991

 

39,208

 

783

 

2

%

Finance fee revenue

 

51,840

 

55,342

 

(3,502

)

(6

)%

Other revenue

 

41,430

 

41,974

 

(544

)

(1

)%

Total revenues

$

243,837

$

249,847

$

(6,010

)

(2

)%

 

 

Three months ended
March 31,

Increase (decrease)

Travel and Corporate Solutions

2021

2020

Amount

Percent

Revenues

 

 

 

Payment processing revenue

$

57,248

$

70,268

$

(13,020

)

(19

)%

Account servicing revenue

 

10,687

 

11,063

 

(376

)

(3

)%

Finance fee revenue

 

294

 

535

 

(241

)

(45

)%

Other revenue

 

2,413

 

2,493

 

(80

)

(3

)%

Total revenues

$

70,642

$

84,359

$

(13,717

)

(16

)%

 

 

Three months ended
March 31,

Increase (decrease)

Health and Employee Benefit Solutions

2021

2020

Amount

Percent

Revenues

 

 

 

Payment processing revenue

$

20,565

$

20,446

$

119

 

1

%

Account servicing revenue

 

67,945

 

63,569

 

4,376

 

7

%

Finance fee revenue

 

19

 

50

 

(31

)

(62

)%

Other revenue

 

7,749

 

13,408

 

(5,659

)

(42

)%

Total revenues

$

96,278

$

97,473

$

(1,195

)

(1

)%

Exhibit 5

Segment Adjusted Operating Income and Adjusted Operating Income Margin Information

(in thousands)

(unaudited)

 

 

Segment Adjusted Operating Income

 

Segment Adjusted Operating Income
Margin(1)

 

Three Months Ended March 31,

 

Three Months Ended March 31,

 

2021

 

2020

 

2021

 

2020

Fleet Solutions

$

118,258

 

 

$

104,608

 

 

48.5

%

 

41.9

%

Travel and Corporate Solutions

$

7,015

 

 

$

21,915

 

 

9.9

%

 

26.0

%

Health and Employee Benefit Solutions

$

30,544

 

 

$

29,467

 

 

31.7

%

 

30.2

%

Total segment adjusted operating income

$

155,817

 

 

$

155,990

 

 

37.9

%

 

36.1

%

(1) Segment adjusted operating income margin is derived by dividing segment adjusted operating income by the revenue of the corresponding segment (or the entire Company in the case of total segment adjusted operating income). See Exhibit 1 for a reconciliation of segment adjusted operating income to GAAP operating income.

 

 

 

Three Months Ended March 31,

 

2021

 

2020

Adjusted operating income

$

139,608

 

 

$

139,447

 

Adjusted operating income margin (1)

34.0

%

 

32.3

%

(1) Adjusted operating income margin is derived by dividing adjusted operating income by revenue of the entire Company. See Exhibit 1 for a reconciliation of adjusted operating income to GAAP operating income.

News media contact:
WEX Inc.
Jessica Roy, 207-523-6763
Jessica.Roy@wexinc.com
or
Investor contact:
WEX Inc.
Steve Elder, 207-523-7769
Steve.Elder@wexinc.com

Source: WEX Inc.

Multimedia Files:

View all News