Wex Inc. · NYSE:WEX
Wex — Q1 2020 Earnings Presentation
19 slides from Wex's earnings presentation, May 7, 2020
Slide 1: WEX First Quarter 2020 Earnings
WEX First Quarter 2020 Earnings May 7, 2020
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 and the potential for providing the same; future growth opportunities and expectations; and, market
Slide 3: 1Q2020 Highlights
(1) Represents US Healthcare purchase volume only 1Q2020 Highlights 1Q2020 Segment Revenue Growth Vs. 1Q2019 Fleet Travel & Corporate Health & Employee Benefits Up 13% Up 5% Down 3% +45% +3% +7% (1)
Slide 4: COVID-19 Response & Business Continuity
Implemented work-from-home policy and quickly put necessary tools and processes in place to effectively support a remote workforceContinued to seamlessly provide quality products and services to customers, many of whom are the essential workers keeping the country runningIntroduced new technologies
Slide 5: Recent Cost Actions & Capital Planning
Cut discretionary costsEliminated many open positions across the organizationReduced U.S. workforce by 2% and furloughed 3% and implemented other international measures Reduced executive team and Board compensation temporarily by 10% - 20% Recent Cost Actions & Capital Planning Recently implemented
Slide 6: Q2 Early Look: April Volume Trends
Q2 Early Look: April Volume Trends Additional April metrics:Corporate Payments spend volume:DOWN 5%US Healthcare SAAS accounts:UP 16%US Fuel prices:$2.04
Slide 7: WEX Continues to Win in the Market
WEX Continues to Win in the Market RECENT WINS AND RENEWALS CONTINUING TO SERVE AND SUPPORT OUR CUSTOMERS Existing customers continue to look to WEX for their payments and financial technology needsFirst responders, federal agencies, and truckers who are keeping the supply chain moving during these
Slide 8: WEX First Quarter 2020 Financial Results
WEX First Quarter 2020 Financial Results
Slide 9: Company Results - Q1 2020
Company Results - Q1 2020 1Q20 1Q19 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $431,679 $381,876 $49,803 13% Net (loss) income attributable to shareholders $(16,256) $16,134 $(32,390) NM Net (loss) income attributable to WEX Inc. per diluted share $(0.37) $0.37 $(0.74) NM Adjusted net income attributable to
Slide 10: Revenue Breakdown - Q1 2020
Revenue Breakdown - Q1 2020 1Q20 1Q19 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $431,679 $381,876 $49,803 13% Segment Revenue: Fleet Solutions $249,847 $232,782 $17,065 7% Travel and Corporate Solutions $84,359 $81,648 $2,711 3% Health and Employee Benefit Solutions $97,473 $67,446 $30,027 45% Revenue growt
Slide 11: Fleet Solutions
Fleet Solutions 1Q20 1Q19 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 249,847 232,782 17,065 7% Payment Processing Revenue ($) 113,323 107,408 5,915 6% Finance Fee Revenue ($) 55,342 45,864 9,478 21% All Other Revenue ($) 81,182 79,510 1,672 2% Payment Processing Transactions 121,591 115,404 6,187
Slide 12: Travel and Corporate Solutions
Travel and Corporate Solutions 1Q20 1Q19 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 84,359 81,648 2,711 3% Payment Processing Revenue ($) 70,268 59,998 10,270 17% All Other Revenue ($) 14,091 21,650 (7,559) (35)% Purchase Volume ($) 8,041,112 8,405,661 (364,549) (4)% Net Interchange Rate (%) 0.87
Slide 13: Health and Employee Benefit Solutions
Health and Employee Benefit Solutions 1Q20 1Q19 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 97,473 67,446 30,027 45% Payment Processing Revenue ($) 20,446 19,392 1,054 5% Account Servicing Revenue ($) 63,569 37,262 26,307 71% All Other Revenue ($) 13,458 10,792 2,666 25% Purchase Volume * ($) 1,59
Slide 14: Selected Operating Expenses
Selected Operating Expenses Processing costs up mainly due to acquisitionsProvision for credit losses up mainly due to CECL implementation that added $9 million of expense Operating interest down due to lower interest ratesG&A down due to M&A activity, restructuring and remediation costs in prior ye
Slide 15: Tax Rate Key Updates
Tax Rate Key Updates ANI tax rate in line with the prior year quarter
Slide 16: Additional Balance Sheet Items
Additional Balance Sheet Items Key Updates Corporate cash1 balance was $504 million Available borrowing capacity of $769 million on line of creditLeverage ratio of 3.5X, unchanged from year-endSignificant mitigation of interest rate risk - approximately 66% of Financing Debt2 at effectively fixed ra
Slide 17: Appendix
Appendix oS.
Slide 18: WEX Non-GAAP Reconciliation
WEX Non-GAAP Reconciliation Three Months Ended March 31, Three Months Ended March 31, 2020 2020 2019 2019 per diluted share per diluted share per dilutedshare per dilutedshare Net (loss) income attributable to shareholders $ (16,256 ) $ (0.37 ) $ 16,134 $ 0.37 Unrealized loss on financial instrument
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 gains and losses, acquisition-related intangible amortization, other acquisition and divestiture related items, stock-based compensation, other c