Slide 1: WEX Third Quarter 2020 Earnings
WEX Third Quarter 2020 Earnings October 29, 2020
Slide 2: WEX Forward-Looking Statements
WEX Forward-Looking Statements This earnings information contains forward-looking statements, including statements regarding: financial guidance and potential for providing the same; assumptions underlying the Company's future financial performance; future growth opportunities and expectations; and,
Slide 3: 3Q 2020 Highlights
3Q 2020 Highlights 3Q 2020 Segment Revenue Growth Vs. 3Q 2019 (1) -18% -35% +7% Fleet Travel & Corporate Health & Employee Benefits 3 (1) Represents US Healthcare purchase volume only
Slide 4: Strategic Pillars
Strategic Pillars HIGHLIGHTS FOR THE QUARTER • Several high profile customer wins and contract renewals coupled with strong pipelines in each segment • Continue to execute on technology strategy and continually growing platform of services • Productivity remains high as the majority of employees con
Slide 5: Executing on the WEX Strategy
Executing on the WEX Strategy BUILDING A BEST-IN-CLASS GROWTH LEADING WITH SUPERIOR TECHNOLOGY ENGINE • Making significant progress in multi-year transformation of our technology to a continually growing platform of services • Major milestone in Cloud strategy by largely completing global fleet migr
Slide 6: Weekly Volume Metrics
Weekly Volume Metrics Fleet Payment Processing Gallon Volume & Travel and Corporate Payments Spend Volume Key Updates • October month-to- date domestic fuel price is $2.21 • Expect stabilization through the fourth quarter 6
Slide 7: Weekly Volume Metrics
Weekly Volume Metrics SaaS Account Growth and Health Spend Volume Key Updates • SaaS account growth MTD in October is 10.2% • Expect the trajectory of spend volume to remain steady through the end of the year • Customers begin to spend on elective healthcare procedures and resume a more normal caden
Slide 8: WEX Third Quarter 2020 Financial Results
WEX Third Quarter 2020 Financial Results 8
Slide 9: Company Results - Q3 2020
Company Results - Q3 2020 Q3 Results Continue to Reflect the Impact of COVID-19, with Sequential Improvement from Q2 Results 3Q20 3Q19 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $ 382,116 $ 459,963 $ (77,847) (17) % Net income (loss) attributable to $ (65,840) $ 14,619 $ (80,459) NM shareholders Net income (
Slide 10: Revenue Breakdown - Q3 2020
Revenue Breakdown - Q3 2020 Continued Revenue Growth in Health and Employee Benefit Solutions Segment 3Q20 3Q19 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $382,116 $459,963 ($77,847) (17) % Segment Revenue: Fleet Solutions $228,704 $277,526 ($48,822) (18) % Travel and Corporate Solutions $64,296 $99,128 ($34
Slide 11: Fleet Solutions
Fleet Solutions OTR Business Resilient in Challenging Environment 3Q20 3Q19 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 228,704 277,526 (48,822) (18) % Payment Processing Revenue ($) 102,418 125,288 (22,870) (18) % Finance Fee Revenue ($) 46,129 65,818 (19,689) (30) % All Other Revenue ($) 80,157
Slide 12: Travel and Corporate Solutions
Travel and Corporate Solutions Corporate Payment Customers Return to Growth 3Q20 3Q19 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 64,296 99,128 (34,832) (35) % Payment Processing Revenue ($) 53,239 85,128 (31,889) (37) % All Other Revenue ($) 11,057 14,000 (2,943) (21) % Purchase Volume ($) 4,699,
Slide 13: Health and Employee Benefit Solutions
Health and Employee Benefit Solutions Continued Strong Revenue and SaaS Account Growth in U.S. Health Business 3Q20 3Q19 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 89,116 83,309 5,807 7 % Payment Processing Revenue ($) 15,420 14,340 1,080 8 % Account Servicing Revenue ($) 63,103 56,451 6,652 12 %
Slide 14: Selected Operating Expenses
Selected Operating Expenses Selected Operating Expenses (GAAP) %∆ (In thousands) 3Q20 3Q19 $ ∆ Yr/Yr Yr/Yr Processing costs $ 102,244 $ 98,296 $ 3,948 4 % Service fees $ 10,881 $ 14,905 $ (4,024) (27) % Provision for credit losses $ 12,283 $ 14,847 $ (2,564) (17) % Operating interest $ 5,262 $ 11,50
Slide 15: Tax Rate
Tax Rate Key Updates • ANI tax rate consistent with the prior year quarter • GAAP tax rate unusual due to a decrease in Pre-Tax Income, a shift in jurisdictional earnings and sizable nondeductible expenses primarily related to the sale of Brazilian subsidiary, partially offset by a discrete tax bene
Slide 16: Additional Balance Sheet Items
Additional Balance Sheet Items Key Updates • Corporate cash1 balance was $1.0 billion • Available borrowing capacity of $818 million on line of credit. The Company has agreed to maintain at least $752M of capacity until resolution of the eNett and Optal acquisition as part of the committed financing
Slide 17: Appendix
Appendix 17
Slide 18: WEX Non-GAAP Reconciliation
WEX Non-GAAP Reconciliation Three Months Ended September 30, 2020 2019 per diluted share per diluted share Net (loss) income attributable to shareholders $ (65,840) $ (1.49) $ 14,619 $ 0.33 Unrealized (gain) loss on financial instruments (3,774) (0.09) 5,650 0.13 Net foreign currency remeasurement l
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, loss on sale of a s