Wex Inc. · NYSE:WEX
Wex — Q2 2019 Earnings Presentation
19 slides from Wex's earnings presentation, Aug 1, 2019
Slide 1: WEX Second Quarter 2019 Earnings
WEX Second Quarter 2019 Earnings August 1, 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 and expectations; profitability; technology advances; and, market ex
Slide 3: 2Q2019 Highlights
2Q2019 Highlights Fleet Travel & Corporate Health & Employee Benefits Up 19% Up 10% Up 8% 2Q2019 Segment Revenue Growth Vs. 2Q2018 +55% +21% +11% US Healthcare up 72%
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 segmentsTransition of Shell and Chevron portfolios completedCompleted acquisition of Go Fuel Card in Europe on July 1Clearview Snap analytics now in use at more than 8,000 customersDriver Dash
Slide 5: Executing on the WEX Strategy
Executing on the WEX Strategy FLEET TRAVEL & CORPORATE HEALTH & EMPLOYEE BENEFITS Chevron portfolio conversion completedDriver Dash live at ExxonMobil and Shell locations Closed acquisition of fuel card business from EG Group in EuropeMore than 8,000 customers using Clearview analytics platformDigit
Slide 6: WEX Second Quarter 2019 Financial Results
WEX Second Quarter 2019 Financial Results
Slide 7: Company Results - Q2 2019
Company Results - Q2 2019 2Q19 2Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $441,807 $370,798 $71,009 19.2% Net income attributable to shareholders $13,807 $38,424 $(24,617) (64.1)% Net income attributable to WEX Inc. per diluted share $0.32 $0.88 $(0.56) (63.6)% Adjusted net income attributable to shareh
Slide 8: Revenue Breakdown - Q2 2019
Revenue Breakdown - Q2 2019 2Q19 2Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $441,807 $370,798 $71,009 19.2% Segment Revenue Fleet Solutions $267,314 $241,412 $25,902 10.7% Travel and Corporate Solutions $91,350 $75,764 $15,586 20.6% Health and Employee Benefit Solutions $83,143 $53,622 $29,521 55.1% Dou
Slide 9: Fleet Solutions
Fleet Solutions 2Q19 2Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 267,314 241,412 25,902 10.7% Payment Processing Revenue ($) 120,717 112,895 7,822 6.9% Finance Fee Revenue ($) 62,385 45,188 17,197 38.1% All Other Revenue ($) 84,212 83,329 883 1.1% Payment Processing Transactions 127,986 115,9
Slide 10: Travel and Corporate Solutions
Travel and Corporate Solutions 2Q19 2Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 91,350 75,764 15,586 20.6% Payment Processing Revenue ($) 77,273 51,289 25,984 50.7% All Other Revenue ($) 14,077 24,475 (10,398) (42.5)% Purchase Volume ($) 10,047,934 8,930,421 1,117,513 12.5% Net Interchange Ra
Slide 11: Health and Employee Benefit Solutions
Health and Employee Benefit Solutions 2Q19 2Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 83,143 53,622 29,521 55.1% Payment Processing Revenue ($) 16,836 14,554 2,282 15.7% Account Servicing Revenue ($) 54,669 26,702 27,967 104.7% All Other Revenue ($) 11,638 12,366 (728) (5.9)% Purchase Volume
Slide 12: Selected Operating Expenses and Margins
Selected Operating Expenses and Margins Processing costs are up mainly due to acquisitions and increased volumeFleet credit loss was 13.9 basis points from 11.2 G&A up due to stock comp, debt restructuring and M&A activitySales and marketing expenses up mainly due to Shell/Chevron, acquisitions and
Slide 13: Tax Rate
Tax Rate Key Updates ANI tax rate in line with the prior year
Slide 14: Additional Balance Sheet Items
Additional Balance Sheet Items Key Updates Corporate cash1 balance was $357 million Available borrowing capacity of $720 million on line of creditIncreased capacity and extended Term B maturity in May 2019Leverage ratio 3.8XSignificant mitigation of interest rate risk - approximately 65% of Financin
Slide 15: Guidance
Guidance 3Q2019 OUTLOOK ∆ Yr/Yr FY2019 OUTLOOK ∆ Yr/Yr Revenue (in millions) $455 - $465 18% - 20% $1,720 - $1,750 16% - 18% Adjusted Net Income1 (in millions) $110 - $115 13% - 18% $399 - $410 12% - 15% Adjusted Net Income Earnings per Diluted Share1 $2.52 - $2.62 13% - 17% $9.10 - $9.35 11% - 14%
Slide 16: Appendix
Appendix eS .
Slide 17: Adjusted Net Income Reconciliation
Three Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, (In thousands) 2019 2019 2018 2018 2019 2019 2018 2018 Net income attributable to shareholders $ 13,807 $ 38,424 $ 29,941 $ 90,394 Unrealized loss (gain) on financial instruments 21,516 (2,706
Slide 18: WEX Non-GAAP Reconciliation
WEX Non-GAAP Reconciliation Three Months Ended June 30, Three Months Ended June 30, Six Months Ended June 30, Six Months Ended June 30, (In thousands) 2019 2019 2018 2018 2019 2019 2018 2018 Operating income (GAAP) $ 94,737 $ 100,424 $ 163,672 $ 184,283 Acquisition-related intangible amortization 39
Slide 19: 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