WEX posts 10% total revenue gain in first quarter
WEX Inc., an international fleet card and corporate payment services company based in South Portland, posted a 10.1% gain in total revenue for the first quarter, reporting today that it increased to $182.1 million from $165.4 million for the first quarter of 2013.
In its first quarter earnings statement, WEX reported that net income on a generally accepted accounting principles basis was $36.5 million, compared with $28.7 million for the first quarter last year. On a non-GAAP basis, the company’s adjusted net income for the first quarter increased 4% to $41.6 million, or $1.06 per diluted share, from $39.8 million, or $1.02 per diluted share, for the same period a year ago.
In a telephone interview with Mainebiz this morning, WEX President and CEO Melissa Smith said the strong first quarter results reflected “growth in all areas of our business,” including an expansion of international business that included the integration of ExxonMobil’s European card portfolio during the quarter. Smith said the company’s acquisition of ExxonMobil’s European operations in nine countries is on track to be completed by the fourth quarter of 2014 or the first quarter of 2015.
“We’re hitting all the milestones, we’re getting all the regulatory approvals we need,” Smith said, noting that the acquisition has secured merger clearance from the European Commission.
In a separate announcement made today, WEX reported that it has signed an agreement with ExxonMobil to manage the customer service, collections and processing of the Esso commercial fleet card in Singapore, Hong Kong and Macau and the Mobil fleet card in Guam and Saipan.
Smith told Mainebiz the agreement builds on WEX’s business relationships with ExxonMobil in the U.S., Canada and Europe and represents a continuing expansion of the company’s “international footprint” and its long-term growth strategy of adding the Asia-Pacific region to its international portfolio.
At the same time, Smith said this year’s first quarter earnings “were driven by organic growth from our domestic fleet business” and “new portfolios beginning to come online” — unlike some quarterly earnings reports in recent years that were driven more by new revenues coming from recent acquisitions.
“There’s a lot of ‘block and tackle’ working going on to build our business in ways that will accelerate our growth organically,” she said. “For 2014, our focus remains on increasing our growth, enhancing scale, and making targeted international investments.”
In the press release announcing its Q1 earnings, WEX reported:
• Average number of vehicles serviced worldwide was approximately 7.8 million, an increase of 4.1% from the first quarter of 2013.
• Total fuel transactions processed increased 5.7% from the first quarter of 2013 to 92.6 million. Payment processing transactions increased 6.7% to 73.3 million.
• Average expenditure per payment processing transaction decreased 2% from the first quarter of 2013 to $85.94.
• U.S. retail fuel price decreased 3% to $3.64 per gallon from $3.76 per gallon in the first quarter of 2013.
• Total corporate card purchase volume grew 39% to $3.7 billion, from $2.6 billion for the first quarter of 2013.
Founded in 1983 as a provider of fuel cards for vehicle fleets, WEX and its subsidiaries now employ more than 1,400 people worldwide.
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