Wright Express CEO Discusses Q1 2012 Results - Earnings Call Transcript
With that, I’ll turn the call over to Mike Dubyak.
Good morning everyone and thanks for joining us. I am pleased to announce another great quarter for Wright Express. For the first quarter revenue increased 17% to $140 million well-adjusted income rose 22% to $0.91 per diluted share both in-line with our guidance.
During the first quarter we saw continued organic growth in our fleet business with consolidated payment processing transactions up 3% over the prior year and vehicle growth of 13% primarily driven from the launch of BP Australia in the second quarter of 2011. We also saw very strong performance from our corporate charge card product in our other payment solution segment. As spend volume increased 52% year-over-year, overall we are executing well and these results underscore the strength of our growth strategy to expand our America’s fleet business, diversify our revenue streams and build out our international presence.
During the first quarter we made further progress in expanding our America’s fleet business, despite choppy economic indicators the macro environment has remained largely stable which coincides with what we are seeing in our existing customer base or same store sales trends. Our existing customer base or same store sales were down approximately 0.5% compared to Q1, 2011.Looking at our portfolio by SIC code, our two biggest concentrations business services and construction were both slightly positive for the quarter relative to the first quarter of 2011. As was transportation, however, nearly all other SICs were down compared to the prior year. Our existing customer base for the first quarter had relatively steady performance with fourth quarter trends. Looking regionally the South-West was once again the strongest region. Consequently, growth in our core fleet business is been driven by new business wins, a testament to our innovative products, strong customer service and proprietary technology.
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