Wright Express Corporation
(NYSE: WXS), a leading provider of value-based business payment processing and information management solutions, today reported financial results for the three months ended June 30, 2012.
Second Quarter Financial Results
Total revenue for the second quarter of 2012 increased 8% to $153.1 million from $141.3 million for the second quarter of 2011. Net income to common shareholders on a GAAP basis was $30.3 million, or $0.78 per diluted share, compared with $40.6 million, or $1.04 per diluted share, for the second quarter last year.
On a non-GAAP basis, the Company's adjusted net income for the second quarter of 2012 increased 10% to $39.1 million, or $1.00 per diluted share, from $35.5 million, or $0.91 per diluted share, for the same period a year ago.
Wright Express uses fuel-price derivative instruments to mitigate financial risks associated with the variability in fuel prices in North America. The Company's GAAP financial results include an unrealized pre-tax, non-cash, mark-to-market gain of $24.6 million dollars for the second quarter of 2012. See Exhibit 1 for a full reconciliation of adjusted net income.
“We are pleased with our second quarter results as steady execution against our multi-pronged growth strategy led to further expansion in our core fleet business and strong performance in our other payments segment,” commented Michael Dubyak, Chairman, President and Chief Executive Officer. “In our fleet business, we drove strong vehicle growth through the signing of new customers, in spite of the sluggish U.S. economy. We also made considerable progress towards diversifying our business as we penetrated new verticals with our single-use virtual card and continued to build out our geographic footprint with the acquisition of CorporatePay. While we foresee fuel prices becoming a headwind in the second half of the year, we remain confident in our long term prospects. Furthermore, we plan to continue to invest in our business as fundamentals remain strong and opportunities for growth persist.”