WEX Inc. logs 6% revenue growth in Q3
WEX Inc., the $553 million South Portland fleet card company formerly known as Wright Express Inc., reported today a 6% increase in total revenue for the third quarter, rising to $161 million from $151.9 million in the third quarter of 2011.
Net income to shareholders on a GAAP basis came in at $14.3 million for the quarter, compared to $48.1 million a year ago. On a non-GAAP basis, the company's adjusted net income for the third quarter increased 9% to $42 million, up from $38.7 million for the same period a year ago.
Michael Dubyak, WEX chairman, president and CEO, told Mainebiz today that the lower net income figures reflected "deal and integration related costs" associated with its recent acquisitions of Fleet One and UNIK, as well as the cost of a "retroactive tax law change" in Australia, where the company purchased the fleet and prepaid card business assets of Retail Decisions for $318 million in September 2010.
Other than the Australian tax law change, Dubyak said the net income adjustments related to the company's many recent acquisitions were "one-time deal costs."
Over the long-term, he said, those acquisitions will diversify and expand the company's opportunities in both the domestic and international markets.
"We made further headway globalizing our virtual card for the travel industry," Dubyak said in a release announcing the third quarter earnings. "We also purchased an equity stake in UNIK, which expands our international footprint into Latin America and, more importantly, opens up opportunities to extend our paycard presence and move into the fleet card market in Brazil."
Overall, Dubyak said the company's acquisitions establish "a solid and differentiated platform for building long-term growth."
On a separate note, Dubyak said the response to the new corporate name and logo announced last week has been "very positive."
If the company achieves its fourth-quarter revenue projections, Dubyak anticipates WEX will close the 2012 fiscal year with revenues in the range of $616 million to $623 million.
That expectation is around $75 million more than year-end revenues for 2011, when the company reported a 42% revenue increase, totaling $553 million.
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