Published: July 29, 2009
Wright Express Reports Second Quarter 2009 Financial Results
SOUTH PORTLAND, Maine - (BUSINESS WIRE) - Wright Express Corporation (NYSE: WXS), a leading provider of payment
processing and information management services to the U.S. commercial
and government fleet industry, today reported financial results for the
three months ended June 30, 2009.
Total revenue for the second quarter of 2009 decreased 29% to $78.6
million from $111.2 million for the second quarter of 2008. Net income
to common shareholders on a GAAP basis was $93.2 million, or $2.36 per
diluted share, compared with a net loss of $24.4 million, or $0.63 per
share, for the same period last year.
On a non-GAAP basis, the Company's adjusted net income for the second
quarter of 2009 was $22.4 million, or $0.57 per diluted share, compared
with $22.4 million, or $0.57 per diluted share, for the year-earlier
period. In addition to previously excluded items, adjusted net income
for the second quarter of 2009 excludes a pre-tax gain of $136.5 million
on the previously announced $51 million prepayment of the Company's
future liability under an existing tax-receivable agreement.
Wright Express uses fuel-price derivative instruments to mitigate
financial risks associated with the variability in fuel prices. For the
second quarter of 2009, the Company's GAAP financial results include an
unrealized $22.6 million pre-tax, non-cash, mark-to-market loss on these
instruments. For the second quarter of 2008, the Company reported an
unrealized pre-tax, non-cash, mark-to-market loss of $74.1 million.
Exhibit 1 reconciles adjusted net income for the second quarters of 2009
and 2008, which has not been determined in accordance with GAAP, to net
income as determined in accordance with GAAP.
Management uses the non-GAAP measures presented within this news release
to evaluate the Company's performance on a comparable basis, to
eliminate the volatility associated with its derivative instruments and
to measure the amount of cash that is available for making payments on
the Company's financing debt and for discretionary purposes. Management
believes that investors may find these measures useful for the same
purposes, but cautions that they should not be considered a substitute
for disclosure in accordance with GAAP.
Second Quarter 2009 Performance Metrics
-
Average number of vehicles serviced increased 5% from the second
quarter of 2008 to approximately 4.7 million.
-
Total fuel transactions processed declined 9% from the second quarter
of 2008 to 66.1 million. Payment processing transactions decreased 8%
to 51.6 million, and transaction processing transactions decreased 14%
to 14.5 million.
-
Average expenditure per payment processing transaction decreased 40%
from the second quarter of 2008 to $47.37.
-
Average retail fuel price declined 41% to $2.33 per gallon from $3.96
per gallon in the second quarter of 2008.
-
Total MasterCard purchase volume grew 24% to $771 million, from $623
million for the second quarter of 2008.
To provide investors with additional insight into its operational
performance, Wright Express has included in this news release a table of
selected non-financial metrics for the five quarters ended June 30,
2009. This table is presented as Exhibit 2.
Management Comments on the Second Quarter
"Our second-quarter results were clearly better than we anticipated,
with revenue and adjusted net income both exceeding the high end of our
guidance range," said Michael Dubyak, Chairman and CEO. "Reduced credit
loss was a key factor, reflecting strong performances by our credit
granting and collections areas for the second consecutive quarter. Our
results also benefited from higher-than-expected revenues, primarily
reflecting a rise in average fuel price."
"We continue to execute well in a difficult business climate," Dubyak
said. "Leveraging our financial strength and customer value proposition,
we are competing for new business aggressively and continuing to gain
market share. Our sales force again outpaced the recession-driven
erosion in our existing customer base, and our total average vehicle
count grew 5% from the second quarter last year."
"Growth in our customer base, coupled with strict cost containment, is
enabling us to continue to produce strong results in the business," said
Dubyak. "As a result, we have been able to steadily invest in
diversification as well as fleet card growth opportunities. Our
diversification efforts continued to perform well in the second quarter,
helping offset the effects of the economic contraction in our core
markets."
"We also continue to execute successfully on our goal of deploying our
consistently healthy cash flow to create the greatest possible value
over time," Dubyak said. "In the second quarter we capitalized on an
opportunity to further this goal by using $51 million in cash to prepay
a portion of our tax receivable liability. We expect this transaction to
deliver a cash payback in less than four years while adding between $10
million and $15 million to our cash flow for the next 12 years."
"Although the recession and slowdown in fleet activity remain with us,
the strength of the Wright Express franchise positions us for a
continued recovery when the economy rebounds and businesses begin to
expand," said Dubyak. "Until then, we will stay focused on aggressively
managing the factors within our control and continuing to deliver solid
financial results."
Financial Guidance
Wright Express Corporation is issuing financial guidance for the third
quarter and raising guidance for the full year 2009. In preparing this
guidance, for the remainder of the year management is assuming 7% to 10%
year-over-year declines in transaction volume within the Company's
installed base of customers due to weak economic conditions. The
guidance below further assumes that credit loss for the full year 2009
will range from 18 to 23 basis points. The guidance below does not
reflect the impact of any stock repurchases that may occur in 2009.
In addition, the Company's guidance excludes the impact of non-cash,
mark-to-market adjustments on its fuel-price-related derivative
instruments, the amortization of purchased intangibles, and adjustments
related to the deferred tax asset and related tax-receivable agreement.
The guidance below also excludes the gain associated with the settlement
of a portion of the liability under the tax receivable agreement. The
fuel prices referenced below are based on the applicable NYMEX futures
price:
-
For the third quarter of 2009, the Company expects revenue in the
range of $78 million to $83 million. This is based on an assumed
average retail fuel price of $2.39 per gallon.
-
For the third quarter of 2009, the Company expects adjusted net income
in the range of $21 million to $23 million, or $0.54 to $0.59 per
diluted share, based on approximately 39 million shares outstanding.
-
For the full year 2009, the Company expects revenue in the range of
$300 million to $310 million. This is based on an assumed average
retail fuel price of $2.26 per gallon.
-
For the full year 2009, the Company expects adjusted net income in the
range of $77 million to $81 million, or $1.94 to $2.04 per diluted
share, based on approximately 39 million shares outstanding.
Conference Call Details
In conjunction with this announcement, Wright Express will host a
conference call today, July 29, 2009, at 10:00 a.m. (ET). The conference
call will be webcast live on the Internet, and can be accessed at the
Investor Relations section of the Wright Express website, www.wrightexpress.com.
The live conference call also can be accessed by dialing (877) 407-5790
or (201) 689-8328. A replay of the webcast will be available on the
Company's website for approximately three months.
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: expectations for the cash payback on the
prepayment of a portion of the tax receivable agreement; positioning of
the Company to capitalize on an economic recovery; and, the Company's
focus on financial results. These forward-looking statements include a
number of risks and uncertainties that could cause actual results to
differ materially, including: 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 the
Company's Annual Report for the year ended December 31, 2008, filed on
Form 10-K with the Securities and Exchange Commission on February 27,
2009 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.
|
WRIGHT EXPRESS CORPORATION
|
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
|
(in thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30,
|
|
Six months ended
June 30,
|
|
|
|
|
|
|
|
|
|
2009
|
|
2008
|
|
2009
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment processing revenue
|
|
|
|
|
|
|
$
|
53,794
|
|
$
|
86,909
|
|
$
|
98,786
|
|
$
|
157,520
|
|
|
Transaction processing revenue
|
|
|
|
|
|
|
|
4,363
|
|
|
5,255
|
|
|
8,661
|
|
|
9,235
|
|
|
Account servicing revenue
|
|
|
|
|
|
|
|
9,308
|
|
|
7,589
|
|
|
18,267
|
|
|
15,011
|
|
|
Finance fees
|
|
|
|
|
|
|
|
7,279
|
|
|
7,419
|
|
|
14,343
|
|
|
15,070
|
|
|
Other
|
|
|
|
|
|
|
|
2,938
|
|
|
3,021
|
|
|
5,737
|
|
|
5,746
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total service revenues
|
|
|
|
|
|
|
|
77,682
|
|
|
110,193
|
|
|
145,794
|
|
|
202,582
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Revenues
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Hardware and equipment sales
|
|
|
|
|
|
|
|
944
|
|
|
1,045
|
|
|
2,008
|
|
|
1,602
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenues
|
|
|
|
|
|
|
|
78,626
|
|
|
111,238
|
|
|
147,802
|
|
|
204,184
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salary and other personnel
|
|
|
|
|
|
|
|
18,259
|
|
|
18,316
|
|
|
36,112
|
|
|
35,434
|
|
|
Service fees
|
|
|
|
|
|
|
|
5,974
|
|
|
5,860
|
|
|
12,156
|
|
|
10,706
|
|
|
Provision for credit losses
|
|
|
|
|
|
|
|
2,567
|
|
|
10,823
|
|
|
6,802
|
|
|
21,219
|
|
|
Technology leasing and support
|
|
|
|
|
|
|
|
2,237
|
|
|
2,206
|
|
|
4,397
|
|
|
4,378
|
|
|
Occupancy and equipment
|
|
|
|
|
|
|
|
1,969
|
|
|
1,998
|
|
|
4,357
|
|
|
3,850
|
|
|
Depreciation and amortization
|
|
|
|
|
|
|
|
5,338
|
|
|
4,935
|
|
|
10,583
|
|
|
9,426
|
|
|
Operating interest expense
|
|
|
|
|
|
|
|
3,314
|
|
|
9,278
|
|
|
8,130
|
|
|
18,086
|
|
|
Cost of hardware and equipment sold
|
|
|
|
|
|
|
|
763
|
|
|
928
|
|
|
1,756
|
|
|
1,433
|
|
|
Other
|
|
|
|
|
|
|
|
5,833
|
|
|
5,946
|
|
|
11,813
|
|
|
11,636
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total operating expenses
|
|
|
|
|
|
|
|
46,254
|
|
|
60,290
|
|
|
96,106
|
|
|
116,168
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
|
|
|
|
|
|
|
|
32,372
|
|
|
50,948
|
|
|
51,696
|
|
|
88,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing interest expense
|
|
|
|
|
|
|
|
(2,048
|
)
|
|
(3,016
|
)
|
|
(4,068
|
)
|
|
(6,117
|
)
|
|
Loss on foreign currency transactions
|
|
|
|
|
|
|
|
(12
|
)
|
|
-
|
|
|
(12
|
)
|
|
-
|
|
|
Gain on settlement of portion of amounts due under tax receivable
agreement
|
|
|
|
|
|
|
|
136,485
|
|
|
-
|
|
|
136,485
|
|
|
-
|
|
|
Net realized and unrealized losses on fuel price derivatives
|
|
|
|
|
|
|
|
(18,110
|
)
|
|
(87,336
|
)
|
|
(17,457
|
)
|
|
(97,910
|
)
|
|
Increase in amount due under tax receivable agreement
|
|
|
|
|
|
|
|
-
|
|
|
-
|
|
|
(570
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income (loss) before income taxes
|
|
|
|
|
|
|
|
148,687
|
|
|
(39,404
|
)
|
|
166,074
|
|
|
(16,011
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
|
|
|
|
|
55,497
|
|
|
(15,021
|
)
|
|
61,907
|
|
|
(6,156
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
|
|
|
93,190
|
|
|
(24,383
|
)
|
|
104,167
|
|
|
(9,855
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Changes in available-for-sale securities, net of tax effect of
$(11) and $21 in 2009 and $(62) and $(34) in 2008
|
|
|
|
|
|
|
|
(20
|
)
|
|
(113
|
)
|
|
37
|
|
|
(61
|
)
|
|
Changes in interest rate swaps, net of tax effect of $410 and $816
in 2009 and $589 and $(67) in 2008
|
|
|
|
|
|
|
|
708
|
|
|
1,054
|
|
|
1,408
|
|
|
(128
|
)
|
|
Foreign currency translation
|
|
|
|
|
|
|
|
(150
|
)
|
|
2
|
|
|
(174
|
)
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comprehensive income (loss)
|
|
|
|
|
|
|
$
|
93,728
|
|
$
|
(23,440
|
)
|
$
|
105,438
|
|
$
|
(10,052
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings (loss) per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
$
|
2.43
|
|
$
|
(0.63
|
)
|
$
|
2.71
|
|
$
|
(0.25
|
)
|
|
Diluted
|
|
|
|
|
|
|
$
|
2.36
|
|
$
|
(0.63
|
)
|
$
|
2.65
|
|
$
|
(0.25
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
|
|
|
|
38,418
|
|
|
38,857
|
|
|
38,378
|
|
|
39,084
|
|
|
Diluted
|
|
|
|
|
|
|
|
39,517
|
|
|
38,857
|
|
|
39,356
|
|
|
39,084
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WRIGHT EXPRESS CORPORATION
|
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
|
(in thousands, except per share data)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
2009
|
|
December 31,
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
|
|
$
|
24,318
|
|
$
|
183,117
|
|
|
Accounts receivable (less reserve for credit losses of $6,362 in
2009 and $18,435 in 2008)
|
|
|
|
|
|
903,170
|
|
|
702,225
|
|
|
Income taxes receivable
|
|
|
|
|
|
4,359
|
|
|
7,903
|
|
|
Available-for-sale securities
|
|
|
|
|
|
11,137
|
|
|
12,533
|
|
|
Fuel price derivatives, at fair value
|
|
|
|
|
|
20,249
|
|
|
49,294
|
|
|
Property, equipment and capitalized software (net of accumulated
depreciation of $65,829 in 2009 and $57,814 in 2008)
|
|
|
|
|
|
45,261
|
|
|
44,864
|
|
|
Deferred income taxes, net
|
|
|
|
|
|
187,957
|
|
|
239,957
|
|
|
Goodwill
|
|
|
|
|
|
315,168
|
|
|
315,230
|
|
|
Other intangible assets, net
|
|
|
|
|
|
37,315
|
|
|
39,922
|
|
|
Other assets
|
|
|
|
|
|
18,685
|
|
|
16,810
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
|
|
|
$
|
1,567,619
|
|
$
|
1,611,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
|
|
|
$
|
366,189
|
|
$
|
249,067
|
|
|
Accrued expenses
|
|
|
|
|
|
24,592
|
|
|
34,931
|
|
|
Deposits
|
|
|
|
|
|
406,165
|
|
|
540,146
|
|
|
Borrowed federal funds
|
|
|
|
|
|
48,153
|
|
|
-
|
|
|
Revolving line-of-credit facility
|
|
|
|
|
|
191,800
|
|
|
170,600
|
|
|
Other liabilities
|
|
|
|
|
|
1,464
|
|
|
3,083
|
|
|
Amounts due under tax receivable agreement
|
|
|
|
|
|
112,354
|
|
|
309,366
|
|
|
Preferred stock; 10,000 shares authorized:
|
|
|
|
|
|
|
|
|
|
|
|
Series A non-voting convertible, redeemable preferred stock; 0.1
shares issued and outstanding
|
|
|
|
|
|
10,000
|
|
|
10,000
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
|
|
|
1,160,717
|
|
|
1,317,193
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
Common stock $0.01 par value; 175,000 shares authorized, 41,086 in
2009 and 40,966 in 2008 shares issued; 38,282 in 2009 and 38,244
in 2008 shares outstanding
|
|
|
|
|
|
411
|
|
|
410
|
|
|
Additional paid-in capital
|
|
|
|
|
|
109,178
|
|
|
100,359
|
|
|
Retained earnings
|
|
|
|
|
|
376,646
|
|
|
272,479
|
|
|
Other comprehensive loss, net of tax:
|
|
|
|
|
|
|
|
|
|
|
|
Net unrealized loss on available-for-sale securities
|
|
|
|
|
|
(16
|
)
|
|
(53
|
)
|
|
Net unrealized loss on interest rate swaps
|
|
|
|
|
|
(328
|
)
|
|
(1,736
|
)
|
|
Net foreign currency translation adjustment
|
|
|
|
|
|
(229
|
)
|
|
(55
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated other comprehensive loss
|
|
|
|
|
|
(573
|
)
|
|
(1,844
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Less treasury stock at cost, 2,804 shares in 2009 and 2,722 shares
in 2008
|
|
|
|
|
|
(78,760
|
)
|
|
(76,742
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total stockholders' equity
|
|
|
|
|
|
406,902
|
|
|
294,662
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and stockholders' equity
|
|
|
|
|
$
|
1,567,619
|
|
$
|
1,611,855
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
WRIGHT EXPRESS CORPORATION
|
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six months ended
June 30,
|
|
|
|
|
|
|
|
|
|
2009
|
|
|
2008
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
|
|
|
|
|
$
|
104,167
|
|
$
|
(9,855
|
)
|
|
Adjustments to reconcile net income (loss) to net cash used for
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
Fair value change of fuel price derivatives
|
|
|
|
|
|
29,045
|
|
|
77,720
|
|
|
Stock-based compensation
|
|
|
|
|
|
2,862
|
|
|
2,831
|
|
|
Depreciation and amortization
|
|
|
|
|
|
10,897
|
|
|
9,577
|
|
|
Gain on settlement of portion of amounts due under tax receivable
agreement
|
|
|
|
|
|
(136,485
|
)
|
|
-
|
|
|
Deferred taxes
|
|
|
|
|
|
51,163
|
|
|
(18,098
|
)
|
|
Provision for credit losses
|
|
|
|
|
|
6,802
|
|
|
21,219
|
|
|
Loss on disposal of property and equipment
|
|
|
|
|
|
31
|
|
|
62
|
|
|
Impairment of internal-use software
|
|
|
|
|
|
421
|
|
|
-
|
|
|
Changes in operating assets and liabilities, net of effects of
acquisition in 2008:
|
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable
|
|
|
|
|
|
(207,724
|
)
|
|
(494,489
|
)
|
|
Other assets
|
|
|
|
|
|
(2,189
|
)
|
|
(2,003
|
)
|
|
Accounts payable
|
|
|
|
|
|
117,109
|
|
|
286,776
|
|
|
Accrued expenses
|
|
|
|
|
|
(8,154
|
)
|
|
(4,606
|
)
|
|
Income taxes
|
|
|
|
|
|
10,353
|
|
|
4,166
|
|
|
Other liabilities
|
|
|
|
|
|
(1,627
|
)
|
|
(1,137
|
)
|
|
Amounts due under tax receivable agreement
|
|
|
|
|
|
(9,527
|
)
|
|
(9,107
|
)
|
|
Settlement of portion of amounts due under tax receivable agreement
|
|
|
|
|
|
(51,000
|
)
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used for operating activities
|
|
|
|
|
|
(83,856
|
)
|
|
(136,944
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
|
|
|
Purchases of property and equipment
|
|
|
|
|
|
(8,904
|
)
|
|
(8,660
|
)
|
|
Reinvestment of dividends on available-for-sale securities
|
|
|
|
|
|
(81
|
)
|
|
-
|
|
|
Purchase of available-for-sale securities
|
|
|
|
|
|
-
|
|
|
(1,589
|
)
|
|
Maturities of available-for-sale securities
|
|
|
|
|
|
1,535
|
|
|
858
|
|
|
Acquisition, net of cash acquired
|
|
|
|
|
|
-
|
|
|
(31,540
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash used for investing activities
|
|
|
|
|
|
(7,450
|
)
|
|
(40,931
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
|
|
|
Excess tax benefits from equity instrument share-based payment
arrangements
|
|
|
|
|
|
-
|
|
|
112
|
|
|
Repurchase of share-based awards to satisfy tax withholdings
|
|
|
|
|
|
(899
|
)
|
|
(2,076
|
)
|
|
Proceeds from stock option exercises
|
|
|
|
|
|
47
|
|
|
356
|
|
|
Net (decrease) increase in deposits
|
|
|
|
|
|
(133,981
|
)
|
|
128,637
|
|
|
Net increase in borrowed federal funds
|
|
|
|
|
|
48,153
|
|
|
66,816
|
|
|
Net change in revolving line-of-credit facility
|
|
|
|
|
|
21,200
|
|
|
19,500
|
|
|
Loan origination fees paid for revolving line-of-credit facility
|
|
|
|
|
|
-
|
|
|
(1,556
|
)
|
|
Purchase of shares of treasury stock
|
|
|
|
|
|
(2,018
|
)
|
|
(29,345
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash (used for) provided by financing activities
|
|
|
|
|
|
(67,498
|
)
|
|
182,444
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effect of exchange rate changes on cash and cash equivalents
|
|
|
|
|
|
5
|
|
|
(8
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net change in cash and cash equivalents
|
|
|
|
|
|
(158,799
|
)
|
|
4,561
|
|
|
Cash and cash equivalents, beginning of period
|
|
|
|
|
|
183,117
|
|
|
43,019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents, end of period
|
|
|
|
|
$
|
24,318
|
|
$
|
47,580
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental cash flow information
|
|
|
|
|
|
|
|
|
|
|
|
Interest paid
|
|
|
|
|
$
|
19,755
|
|
$
|
24,437
|
|
|
Income taxes paid
|
|
|
|
|
$
|
390
|
|
$
|
7,318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Exhibit 1
|
|
|
|
Wright Express Corporation
|
|
Reconciliation of Adjusted Net Income to GAAP Net Income
|
|
Second Quarter 2009
|
|
|
|
(in thousands)
|
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
Three months ended
June 30, 2009
|
|
|
Three months ended
June 30, 2008
|
|
|
|
|
|
|
|
|
Adjusted net income
|
|
$
|
22,413
|
|
|
|
$
|
22,445
|
|
|
Non-cash, mark-to-market adjustments on derivative instruments
|
|
|
(22,574
|
)
|
|
|
|
(74,145
|
)
|
|
Amortization of purchased intangibles
|
|
|
(1,248
|
)
|
|
|
|
(1,172
|
)
|
|
Gain on extinguishment of liability
|
|
|
136,485
|
|
|
|
|
--
|
|
|
Tax impact of mark-to-market adjustments and amortization of
purchased intangibles
|
|
|
(41,886
|
)
|
|
|
|
28,489
|
|
|
GAAP net income (loss)
|
|
$
|
93,190
|
|
|
|
$
|
(24,383
|
)
|
Although adjusted net income is not calculated in accordance with
generally accepted accounting principles (GAAP), this measure is
integral to the Company's reporting and planning processes. The Company
considers this measure integral because it eliminates the non-cash
volatility associated with the derivative instruments, and excludes the
amortization of purchased intangibles, the net impact of tax rate
changes on the Company's deferred tax asset and related changes in the
tax-receivable agreement and the gains on the extinguishment of a
portion of the tax receivable agreements. 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 derivative
instruments 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 fuel-price
derivative contracts;
-
The non-cash, mark-to-market adjustments on derivative instruments are
difficult to forecast accurately, making comparisons across historical
and future quarters difficult to evaluate; and
-
The amortization of purchased intangibles and extinguishment of
liability have no impact on the day-to-day operations of the business.
For the same reasons, Wright Express believes that adjusted net income
may also be useful to investors as one means of evaluating the Company's
performance. However, because adjusted net income is a non-GAAP measure,
it should not be considered as a substitute for, or superior to, net
income as determined in accordance with GAAP. In addition, adjusted net
income as used by Wright Express may not be comparable to similarly
titled measures employed by other companies.
|
Exhibit 2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Wright Express Corporation
|
|
Selected Non-Financial Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Q2 2009
|
|
Q1 2009
|
|
Q4 2008
|
|
Q3 2008
|
|
Q2 2008
|
|
Fleet Payment Processing Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Payment processing transactions (000s)
|
|
|
|
51,579
|
|
|
49,297
|
|
|
51,509
|
|
|
55,519
|
|
|
55,940
|
|
|
Gallons per payment processing transaction
|
|
|
|
20.4
|
|
|
20.3
|
|
|
20.3
|
|
|
20.1
|
|
|
19.9
|
|
|
Payment processing gallons of fuel (000s)
|
|
|
|
1,050,835
|
|
|
1,003,189
|
|
|
1,047,627
|
|
|
1,115,908
|
|
|
1,112,153
|
|
|
Average fuel price
|
|
|
$
|
2.33
|
|
|
2.00
|
|
|
2.59
|
|
|
4.02
|
|
|
3.96
|
|
|
Payment processing $ of fuel (000s)
|
|
|
$
|
2,443,482
|
|
|
2,010,123
|
|
|
2,713,812
|
|
|
4,488,293
|
|
|
4,403,377
|
|
|
Net payment processing rate
|
|
|
|
1.85
|
%
|
|
1.94
|
%
|
|
1.86
|
%
|
|
1.71
|
%
|
|
1.82
|
%
|
|
Fleet payment processing revenue (000s)
|
|
|
$
|
45,205
|
|
|
38,988
|
|
|
50,407
|
|
|
76,802
|
|
|
80,217
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard Payment Processing Revenue:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MasterCard purchase volume (000s)
|
|
|
$
|
771,469
|
|
|
649,048
|
|
|
585,967
|
|
|
670,137
|
|
|
622,844
|
|
|
Net interchange rate
|
|
|
|
1.11
|
%
|
|
0.93
|
%
|
|
0.99
|
%
|
|
1.03
|
%
|
|
1.07
|
%
|
|
MasterCard payment processing revenue (000s)
|
|
|
$
|
8,589
|
|
|
6,004
|
|
|
5,830
|
|
|
6,883
|
|
|
6,692
|
|
Definitions:
Payment processing transactions represents the total number of purchases
made by fleets that have a payment processing relationship with Wright
Express.
Payment processing gallons of fuel represents the total number of
gallons of fuel purchased by fleets that have a payment processing
relationship with Wright Express.
Payment processing $ of fuel represents the total dollar value of the
fuel purchased by fleets that have a payment processing relationship
with Wright Express.
Net payment processing rate represents the percentage of the dollar
value of each payment processing transaction that Wright Express records
as revenue from merchants less any discounts given to fleets or
strategic relationships.
MasterCard purchase volume represents the total dollar value of all
transactions that use a Wright Express MasterCard-branded product.
Net interchange rate represents the percentage of the dollar value of
each MasterCard transaction that Wright Express records as revenue less
any discounts given to customers.
News media contact:
Wright Express
Jessica Roy,
207-523-6763
Jessica_Roy@wrightexpress.com
or
Investor
contact:
Wright Express
Steve Elder, 207-523-7769
Steve_Elder@wrightexpress.com
Copyright © 2012, Business Wire, Inc., All rights reserved. Copyright © 2012, NewsBlaze, Daily News
|
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