Slide 1: WEX Inc. First Quarter 2016 Earnings Call
WEX INC. First Quarter 2016 Earnings Call April 27, 2016
Slide 2: Forward-Looking Statements
2 The attached materials and our commentary relating to those materials contain statements about future plans and expectations, which constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward looking statements are generally stated
Slide 3: Performance Highlights
Performance Highlights 3 FINANCIAL SUMMARY STRATEGY PERFORMANCE OF FLEET SOLUTIONS PERFORMANCE OF HEALTH AND EMPLOYEE BENEFIT SOLUTIONS PERFORMANCE OF TRAVEL AND CORPORATE SOLUTIONS OUTLOOK
Slide 4: Financial Summary
Financial Summary 4 Excluding continued macroeconomic headwinds, drove strong growth across the businessLeveraged the scale of our global network through efficient operationsFocused on profitability through execution of cost management programs Exceeded revenue and ANI guidance 1Q16($) 1Q15($) ∆ YR/
Slide 5: 3-Pillar Strategy for Growth and Margin Expansion
3-Pillar Strategy for Growth and Margin Expansion ACCELERATE GROWTHIN CORE VERTICALS CAPTURE EFFICIENCIES AND NEW SCALING OPPORTUNITIES DEVELOP AND DRIVE MARKET-LEADING, GLOBAL OFFERINGS Our recent actions demonstrate our ability to pursue the three strategies in tandem, and this success has driven
Slide 6: Fleet Solutions Segment Performance
Fleet Solutions Segment Performance 6 Continued to modernize pricing structure Deepened relationships with domestic Fleet customers Domestic same store sales pressure First Quarter Highlights Second Quarter Outlook 1Q16($) 1Q15($) ∆ Yr/Yr Total Segment Revenue 121,074 128,490 -5.8% Payment processin
Slide 7: Travel and Corporate Solutions Segment Performance
Travel and Corporate Solutions Segment Performance 7 (in thousands, except for net interchange rate) Generated strong volume growth globally New volume tier with major customers triggering higher rebates Asia virtual expansion on track with signing of new customer, C-Trip First Quarter Highlights Se
Slide 8: Health and Employee Benefit Solutions Segment
*Domestic purchase volume only (in thousands) 8 1Q16($) 1Q15($) ∆ Yr/Yr Total Segment Revenue 39,712 30,722 29.3% Total Revenue – FX Adjusted 41,331 30,722 34.5% Purchase Volume* 1,092,552 889,569 22.8% First Quarter Highlights Second Quarter Outlook Successful enrollment season and platform user ex
Slide 9: Guidance and Assumptions
Guidance and Assumptions 9 (in millions, except per share data) 2Q16 Outlook FY16 Outlook Revenue $216 - $226 $879 - $909 Adj. Net Income $37.0 - $40.0 $158 - $170 Adj. EPS $0.96 - $1.04 $4.07 - $4.37 Fleet Credit Loss 7 - 12 bps 10 - 15 bps Domestic Fuel Prices $2.20 per gallon $2.14 per gallon Adj
Slide 10: WEX Appendix
WEX Appendix WEX LISTED NYSE 10
Slide 11: FX and PPG Adjusted Revenue by Segment
11 FX and PPG Adjusted Revenue by Segment(in thousands)(unaudited) Three months ended March 31, 2016 vs 2015 % change 2016 2015 % Change Excluding FX Excluding PPG Excluding FX/PPG Fleet Solutions Revenue $121,074 $128,490 -5.8% -4.1% 6.6% 8.2% Travel and Corporate Solutions Revenue 45,142 43,073 4.
Slide 12: Reconciliation of Total FX and PPG Adjusted Revenue to GAAP Revenue
12 Reconciliation of Total FX and PPGAdjusted Revenue to GAAP Revenue(in thousands)(unaudited) Fleet Solutions Revenue Travel and Corporate Solutions Revenue Health and Employee Benefit Solutions Revenue Total Revenue Three months ended March 31, 2016 2015 2016 2015 2016 2015 2016 2015 Reported reve
Slide 13: Reconciliation of ANI to ANI Adjusted for FX and PPG
13 Reconciliation of ANI to ANI Adjusted for FX and PPG(in thousands)(unaudited) Three months ended March 31, 2016 2015 % Change Adjusted net income attributable to WEX Inc. $37,581 $46,218 -18.7% FX adjustment $1,734 - Tax impact of FX adjustment (631) - FX adjustment, net of tax 1,103 - Adjusted n
Slide 14: Adjusted net income FX and PPG basis explanation
To determine adjusted net income on a FX adjusted basis, revenue and expenses from entities whose functional currency is not denominated in U.S. dollars, as well as revenue and variable expenses from purchase volume transacted in non-US denominated currencies, were translated using the weighted aver
Slide 15: Adjusted net income non-GAAP rationale
Although adjusted net income is not calculated in accordance with generally accepted accounting principles (GAAP), this measure is integral to the Company's reporting and planning processes. The Company considers this measure integral because it eliminates the non-cash volatility associated with the
Slide 16: Stock-based compensation and restructuring charges
Stock-based compensation is different from other forms of compensation, as it is a non-cash expense. For example, a cash salary generally has a fixed and unvarying cash cost. In contrast, the expense associated with an equity-based award is generally unrelated to the amount of cash ultimately receiv