Wex Inc. · NYSE:WEX
Wex — Q3 2019 Earnings Presentation
18 slides from Wex's earnings presentation, Oct 31, 2019
Slide 1: WEX Third Quarter 2019 Earnings
WEX Third Quarter 2019 Earnings October 31, 2019
Slide 2: Forward-Looking Statements
WEX Forward-Looking Statements These earnings materials contain forward-looking statements, including statements regarding: financial guidance; assumptions underlying the Company's financial guidance; future growth opportunities and expectations; and, market opportunities. Any statements that are no
Slide 3: 3Q2019 Highlights
3Q2019 Highlights Fleet Travel & Corporate Health & Employee Benefits Up 19% Up 16% Up 10% 3Q2019 Segment Revenue Growth Vs. 3Q2018 +54% +20% +11% US Healthcare up 73%
Slide 4: Strategic Pillars: Highlights for the Quarter
Strategic Pillars HIGHLIGHTS FOR THE QUARTER Revenue growth of 19% with double-digit growth in each of the segmentsSuccessful migration of North American fleet platform to cloud completedStrong travel and corporate payments volume growth of 20%Impressive momentum in U.S. Health business generating r
Slide 5: Executing on the WEX Strategy
Executing on the WEX Strategy FLEET TRAVEL & CORPORATE HEALTH & EMPLOYEE BENEFITS NA Fleet platform cloud migration executed successfully allowing for increased speed to market, stability, scalability, functionalityClearview continues to be an important contributor to product differentiationDriverDa
Slide 6: WEX Third Quarter 2019 Financial Results
WEX Third Quarter 2019 Financial Results
Slide 7: Company Results - Q3 2019
Company Results - Q3 2019 3Q19 3Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $459,963 $386,617 $73,346 19% Net income attributable to shareholders $14,619 $56,644 $(42,025) (74)% Net income attributable to WEX Inc. per diluted share $0.33 $1.30 $(0.97) (75)% Adjusted net income attributable to shareholders
Slide 8: Revenue Breakdown - Q3 2019
Revenue Breakdown - Q3 2019 3Q19 3Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $459,963 $386,617 $73,346 19% Segment Revenue Fleet Solutions $277,526 $249,569 $27,957 11% Travel and Corporate Solutions $99,128 $82,810 $16,318 20% Health and Employee Benefit Solutions $83,309 $54,238 $29,071 54% Double digi
Slide 9: Fleet Solutions
Fleet Solutions 3Q19 3Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 277,526 249,569 27,957 11% Payment Processing Revenue ($) 125,288 116,023 9,265 8% Finance Fee Revenue ($) 65,818 51,644 14,174 27% All Other Revenue ($) 86,420 81,902 4,518 6% Payment Processing Transactions 135,236 117,680 17,
Slide 10: Travel and Corporate Solutions
Travel and Corporate Solutions 3Q19 3Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 99,128 82,810 16,318 20% Payment Processing Revenue ($) 85,128 54,345 30,783 57% All Other Revenue ($) 14,000 28,465 (14,465) (51)% Purchase Volume ($) 11,543,605 9,620,787 1,922,818 20% Net Interchange Rate (%) 0
Slide 11: Health and Employee Benefit Solutions
Health and Employee Benefit Solutions 3Q19 3Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 83,309 54,238 29,071 54% Payment Processing Revenue ($) 14,340 12,503 1,837 15% Account Servicing Revenue ($) 56,451 26,818 29,633 110% All Other Revenue ($) 12,518 14,917 (2,399) (16)% Purchase Volume * ($
Slide 12: Selected Operating Expenses
(in thousands) 3Q19 3Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Processing costs $98,296 $81,190 $17,106 21% Service Fees $14,905 $13,818 $ 1,087 8% Provision for credit losses $14,847 $22,549 $(7,702) (34)% Operating interest $11,508 $10,268 $ 1,240 12% General and administrative $65,423 $51,126 $14,297 28% Sales and
Slide 13: Tax Rate Key Updates
Tax Rate Key Updates ANI tax rate in line with the prior quarters
Slide 14: Additional Balance Sheet Items
Additional Balance Sheet Items Key Updates Corporate cash1 balance was $219 million Available borrowing capacity of $719 million on line of creditLeverage ratio 3.7XSignificant mitigation of interest rate risk - approximately 65% of Financing Debt at effectively fixed rates 1 Corporate cash is calcu
Slide 15: Guidance
Guidance 4Q2019 OUTLOOK ∆ Yr/Yr FY2019 OUTLOOK ∆ Yr/Yr Revenue (in millions) $452 - $462 19% - 21% $1,736 - $1,746 17% - 17% Adjusted Net Income1 (in millions) $110 - $114 20% - 24% $399 - $403 12% - 13% Adjusted Net Income Earnings per Diluted Share1 $2.51 - $2.61 19% - 24% $9.10 - $9.20 11% - 12%
Slide 16: Appendix
Appendix go.
Slide 17: WEX Non-GAAP Reconciliation
WEX Non-GAAP Reconciliation Three Months Ended September 30, Three Months Ended September 30, 2019 2019 2018 2018 per diluted share per diluted share per dilutedshare per dilutedshare Net income attributable to shareholders $ 14,619 $ 0.33 $ 56,644 $ 1.30 Unrealized loss (gain) on financial instrume
Slide 18: WEX Non-GAAP Reconciliation
WEX Non-GAAP Reconciliation The Company's non-GAAP adjusted net income excludes unrealized gains and losses on financial instruments, net foreign currency remeasurement gains and losses, acquisition-related intangible amortization, other acquisition and divestiture related items, stock-based compens