WEX Inc. (NYSE: WXS), a leading international provider of physical, digital and virtual corporate card payment solutions, today reported financial results for the three months ended September 30, 2012.
Third Quarter Financial Results
Total revenue for the third quarter of 2012 increased 6% to $161.0 million from $151.9 million for the third quarter of 2011. Net income to common shareholders on a GAAP basis was $14.3 million, or $0.37 per diluted share, compared with $48.1 million, or $1.23 per diluted share, for the third quarter last year. The current quarter’s net income on a GAAP basis included $16.2 million of impairment costs related to the Company’s Australian prepaid business which was excluded from adjusted net income.
On a non-GAAP basis, the Company's adjusted net income for the third quarter of 2012 increased 9% to $42.0 million, or $1.08 per diluted share, from $38.7 million, or $0.99 per diluted share, for the same period a year ago. Adjusted net income for the third quarter of 2012 included a charge related to a retroactive tax law change in Australian tax legislation that was enacted in the third quarter. Third quarter adjusted net income also included deal and integration related costs associated with the previously announced acquisitions of Fleet One and UNIK, which were not accounted for in the Company’s prior full-year 2012 guidance. Together these items reduced earnings approximately $0.10 per share.WEX uses fuel-price derivative instruments to mitigate financial risks associated with the variability in fuel prices in North America. For the third quarter of 2012, the Company's GAAP financial results include an unrealized $12.8 million dollar pre-tax, non-cash, mark-to-market loss on these instruments. See Exhibit 1 for a full reconciliation of adjusted net income. “WEX delivered third quarter results that were consistent with our expectations driven by continued execution against our long-term growth strategy. In our fleet segment, card growth increased 6% over the prior year, better positioning the Company for future growth as the economic environment improves. In addition, we fortified our competitive stance through our acquisition of Fleet One,” said Michael Dubyak, Chairman, President and Chief Executive Officer.