Wex Inc. · NYSE:WEX
Wex — Q1 2019 Earnings Presentation
20 slides from Wex's earnings presentation, May 2, 2019
Slide 1: WEX First Quarter 2019 Earnings
WEX First Quarter 2019 Earnings May 2, 2019
Slide 2: Forward-Looking Statements
WEX Forward-Looking Statements This earnings presentation contains forward-looking statements, including statements regarding: financial guidance; assumptions underlying the Company's financial guidance; future growth opportunities; expectations for customer conversions; profitability; technology ad
Slide 3: 1Q2019 Highlights
1Q2019 Highlights Fleet Travel & Corporate Health & Employee Benefits 8% (9)% 4% 1Q2019 Segment Revenue Growth Vs. 1Q2018 +19% +22% +1% US Healthcare up 31%
Slide 4: Strategic Pillars: Highlights for the Quarter
Strategic Pillars HIGHLIGHTS FOR THE QUARTER Great start to 2019 on heels of record results in 2018Transition of Shell portfolio completed; Chevron on track to complete by end of Q2Completed acquisitions of Discovery Benefits and Noventis; announced EG Fleet Continued rollout of Clearview Snap analy
Slide 5: Executing on the WEX Strategy
Executing on the WEX Strategy FLEET TRAVEL & CORPORATE HEALTH & EMPLOYEE BENEFITS Onboarding Shell portfolio completedOnboarding Chevron portfolio on track for Q2 completionDriver Dash pilot with large merchant 45% increase in SmartHub mobile app utilizationOptimization of marketing tools leading to
Slide 6: Corporate Payments Spotlight
Corporate Payments Spotlight Optimize payment workflows for buyers and suppliers End Customers Channels WEX Value U.S. Businesses Direct to Corporate Financial Institutions Technology Partners Scale$60B in spend volume OptionalityNetworks and products AgilityModern technology Global ReachSettlements
Slide 7: WEX First Quarter 2019 Financial Results
WEX First Quarter 2019 Financial Results
Slide 8: Company Results - Q1 2019
Company Results - Q1 2019 1Q19 1Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $381,876 $354,028 $27,848 7.9% Net income attributable to shareholders $16,134 $51,970 $(35,836) (69.0)% Net income attributable to WEX Inc. per diluted share $0.37 $1.20 $(0.83) (69.2)% Adjusted net income attributable to shareho
Slide 9: Revenue Breakdown - Q1 2019
Revenue Breakdown - Q1 2019 1Q19 1Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $381,876 $354,028 $27,848 7.9% Segment Revenue Fleet Solutions $232,782 $230,365 $2,417 1.0% Travel and Corporate Solutions $81,648 $66,779 $14,869 22.3% Health and Employee Benefit Solutions $67,446 $56,884 $10,562 18.6% Double
Slide 10: Fleet Solutions
Fleet Solutions 1Q19 1Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 232,782 230,365 2,417 1.0% Payment Processing Revenue ($) 107,408 106,978 430 0.4% Finance Fee Revenue ($) 45,864 43,604 2,260 5.2% All Other Revenue ($) 79,510 79,783 (273) (0.3)% Payment Processing Transactions 115,404 109,827
Slide 11: Travel and Corporate Solutions
Travel and Corporate Solutions 1Q19 1Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 81,648 66,779 14,869 22.3% Payment Processing Revenue ($) 59,998 44,777 15,221 34.0% All Other Revenue ($) 21,650 22,002 (352) (1.6)% Purchase Volume ($) 8,405,661 7,940,543 465,118 5.9% Net Interchange Rate (%) 0
Slide 12: Health and Employee Benefit Solutions
Health and Employee Benefit Solutions 1Q19 1Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 67,446 56,884 10,562 18.6% Payment Processing Revenue ($) 19,392 16,699 2,693 16.1% Account Servicing Revenue ($) 37,262 27,025 10,237 37.9% All Other Revenue ($) 10,792 13,160 (2,368) (18.0)% Purchase Volu
Slide 13: Selected Operating Expenses and Margins
Selected Operating Expenses and Margins Processing costs are up mainly due to acquisitions and Shell/Chevron portfoliosFleet credit loss was 15.7 basis points from 12.5G&A up primarily for acquisitionsSales and marketing expenses up mainly due to Shell/Chevron, acquisitions and partner rebates (In t
Slide 14: Tax Rate
Tax Rate Key Updates ANI tax rate down slightly from Q1 2018 due to mix of US vs foreign earnings
Slide 15: Additional Balance Sheet Items
Additional Balance Sheet Items Key Updates Corporate cash1 balance was $96.5 million Borrowing capacity of $547 million on line of creditTotal financing debt includes $50 million deferred payment for DBI acquisition which will paid Jan 2020Leverage ratio was 4.0, due to recent acquisition activityIn
Slide 16: Guidance
Guidance 2Q2019 OUTLOOK ∆ Yr/Yr FY2019 OUTLOOK ∆ Yr/Yr Revenue (in millions) $438 - $443 18% - 19% $1,705 - $1,745 15% - 17% Adjusted Net Income1 (in millions) $97 - $100 8% - 11% $399 - $416 12% - 17% Adjusted Net Income Earnings per Diluted Share1 $2.22 - $2.28 7% - 10% $9.10 - $9.50 11% - 16% Dom
Slide 17: Appendix
Appendix eS.
Slide 18: WEX Non-GAAP Reconciliation
WEX Non-GAAP Reconciliation Three Months Ended March 31, Three Months Ended March 31, 2019 2019 2018 2018 (in thousands except per share data) per diluted share per diluted share per dilutedshare per dilutedshare Net income attributable to shareholders $ 16,134 $ 0.37 $ 51,970 $ 1.20 Unrealized loss
Slide 19: WEX Non-GAAP Reconciliation
WEX Non-GAAP Reconciliation Three Months Ended March 31, Three Months Ended March 31, (In thousands) 2019 2019 2018 2018 Operating income (GAAP) $ 68,935 $ 83,859 Acquisition-related intangible amortization 33,888 35,236 Other acquisition and divestiture related items 9,780 637 Debt restructuring 4,
Slide 20: 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