Wright Express (WXS) Q1 2012 Earnings Call May 02, 2012 10:00 AM ET Executives Steve Elder - CCFO & SVP Mike Dubyak - President & CEO Analysts Sanjay Sakhrani - KBW Roman Leal - Goldman Sachs Phil Stiller - Citi Robert Napoli - William Blair Greg Smith - Sterne Agee Tom McCrohan - Janney Tien-tsin Huang - JPMorgan Doug Greiner - Compass Point Presentation Operator
Previous Statements by WXS
» Wright Express' CEO Discusses Q4 2011 Results - Earnings Call Transcript
» Wright Express at JP Morgan Ultimate Services Investor Conference Call Transcript
» Wright Express Corporation's CEO Discusses Q3 2011 Results - Earnings Call Transcript
» Wright Express CEO Discusses Q2 2011 Results - Earnings Call Transcript
With that, I’ll turn the call over to Mike Dubyak.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.
On the new business front we had new signings, up market and we experienced continued momentum in our down market strategy was small to mid-sized fleet wins during the first quarter. The down market pipeline remains robust with small and mid-market fleets. Additionally, we saw fair amount of activity in terms of large fleet contracts including the renewal of the State of Georgia, we also sign 3 year extensions with enterprise fleet management and lease plan both long term co-brand partners.As announced last week, MAPCO Express joined us as a private label partner and will also be offering a co-brand universal card. We believe with our continued success with large fleets and partners is due to our sustained investments in our products and services as well as outstanding customer experience. One of these recent investments is our free mobile app for iPhone and Android devices called Octane which introduced in March. Octane is the industry’s first fuel site locator that incorporates accurate real time transaction based fuel price data and text to speech capabilities. In a nutshell, this app helps people find the nearest fueling locations with the lowest prices based on actual transactions from our broad network. This app demonstrates our continued focus on developing innovative solutions and providing customers with the best possible fleet management tools. We believe this helps drive new business and enhances the value we provide to our customers. Turning now to the second prong of our growth strategy, diversification of our business. During the first quarter our other payment solution segment generated revenue growth of 44%, once again led by our corporate charge card product. Spend volume increased to strong 52% over the prior year to $2.2 billion primarily from our single use electronic credit product in the online travel vertical. Read the rest of this transcript for free on seekingalpha.com