Wex Inc. · NYSE:WEX
Wex — Q4 2019 Earnings Presentation
21 slides from Wex's earnings presentation, Feb 13, 2020
Slide 1: WEX Fourth Quarter 2019 Earnings
WEX Fourth Quarter 2019 Earnings February 13, 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; future growth opportunities and expectations; expectations for the macro environment; and, anticipa
Slide 3: 4Q2019 Highlights
4Q2019 Highlights Fleet Travel & Corporate Health & Employee Benefits 15.4% 23.8% 8.4% 4Q2019 Segment Revenue Growth Vs. 4Q2018 +69.1% +22.7% +2.7% US Healthcare up 75.5% Note: Q4 2019 revenue reduced by $20.9 million for accounting adjustment with no impact to earnings(1) Represents US Healthcare p
Slide 4: Full Year 2019 Highlights
Full Year 2019 Highlights Fleet Travel & Corporate Health & Employee Benefits 15.5% 7.5% 2019 Segment Revenue Growth Vs. 2018 +48.2% +21.3% +6.5% US Healthcare up 62.3% 11.1% Note: Q4 2019 revenue reduced by $20.9 million for accounting adjustment with no impact to earnings(1) Represents US Healthca
Slide 5: Strategic Pillars 2019 Highlights
Strategic Pillars 2019 HIGHLIGHTS Another record year for Revenue and Adjusted Net IncomeContinued to experience strong organic revenue growth, driven primarily by volumeSuccessful implementation and execution of Shell and Chevron portfoliosCloud migration of North American fleet business with minim
Slide 6: Executing on the WEX Strategy
Executing on the WEX Strategy LEADING WITH SUPERIOR PRODUCTS AND TECHNOLOGY BUILDING A BEST-IN-CLASS GROWTH ENGINE FLEET TRAVEL & CORPORATE HEALTH & EMPLOYEE BENEFITS Implementation of Chevron and Shell portfoliosTransition of North American Fleet business to cloud-based platform completed with mini
Slide 7: WEX Full Year and Fourth Quarter 2019 Financial Results
WEX Full Year and Fourth Quarter 2019 Financial Results
Slide 8: Company Results - Full Year 2019
Company Results - Full Year 2019 (In thousands except per share data) 2019 2018 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $1,723,691 $1,492,639 $231,052 15.5% Net income attributable to shareholders $99,006 $168,295 $(69,289) (41.2)% Net income attributable to shareholders per diluted share $2.26 $3.86 $(1.
Slide 9: Company Results - 4Q 2019
Company Results - 4Q 2019 (In thousands except per share data) 4Q19 4Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $440,045 $381,196 $58,849 15.4% Net income attributable to shareholders $54,446 $21,257 $33,189 156.1% Net income attributable to WEX Inc. per diluted share $1.24 $0.49 $0.75 153.1% Adjusted ne
Slide 10: Revenue Breakdown - 4Q 2019
Revenue Breakdown - 4Q 2019 4Q19 4Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Revenue $440,045 $381,196 $58,849 15.4% Segment Revenue Fleet Solutions $260,773 $253,794 $6,979 2.7% Travel and Corporate Solutions $95,700 $77,991 $17,709 22.7% Health and Employee Benefit Solutions $83,572 $49,411 $34,161 69.1% Robus
Slide 11: Fleet Solutions
Fleet Solutions 4Q19 4Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 260,773 253,794 6,979 2.7% Payment Processing Revenue ($) 103,831 129,084 (25,253) (19.6)% Finance Fee Revenue ($) 71,015 50,092 20,923 41.8% All Other Revenue ($) 85,927 74,618 11,309 15.2% Payment Processing Transactions 126,6
Slide 12: Travel and Corporate Solutions
Travel and Corporate Solutions 4Q19 4Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 95,700 77,991 17,709 22.7% Payment Processing Revenue ($) 80,986 52,878 28,108 53.2% All Other Revenue ($) 14,714 25,113 (10,399) (41.4)% Purchase Volume ($) 9,635,211 8,210,863 1,424,348 17.3% Net Interchange Rat
Slide 13: Health and Employee Benefit Solutions
Health and Employee Benefit Solutions 4Q19 4Q18 $ ∆ Yr/Yr % ∆ Yr/Yr Total Segment Revenue ($) 83,572 49,411 34,161 69.1% Payment Processing Revenue ($) 14,395 11,966 2,429 20.3% Account Servicing Revenue ($) 57,142 27,627 29,515 106.8% All Other Revenue ($) 12,035 9,818 2,217 22.6% Purchase Volume *
Slide 14: Selected Operating Expenses
Selected Operating Expenses Processing costs increased primarily due to acquisition-related impacts.Fleet credit losses at 18.5 basis points with higher losses in the small fleet OTR business General and Administrative expenses increased due to higher legal costs related to our acquisitions and high
Slide 15: Tax Rate Key Updates
Tax Rate Key Updates Full year ANI tax rate of 25.1%
Slide 16: Additional Balance Sheet Items
Additional Balance Sheet Items Key Updates Corporate cash1 balance was approximately $370 millionRemaining borrowing capacity of $769 million on credit facilityUsed cash from operations to reduce Financing Debt2 by $65M during Q4 2019Leverage ratio 3.5X, up from 3.1X in Q4 last year due to four acqu
Slide 17: Guidance
Guidance 1Q2020 OUTLOOK ∆ Yr/Yr FY2020 OUTLOOK ∆ Yr/Yr Revenue (in millions) $445 - $455 17% - 19% $1,860 - $1,900 7% - 9% Adjusted Net Income1 (in millions) $95 - $99 27% - 32% $447 - $464 11% - 15% Adjusted Net Income Earnings per Diluted Share1 $2.15 - $2.25 25% - 31% $10.15 - $10.55 10% - 15% Do
Slide 18: 2020 Guidance Bridge at the Midpoint
2020 Guidance Bridge at the Midpoint
Slide 19: Appendix
Appendix oS.
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 gains and losses, acquisition-related intangible amortization, other acquisition and divestiture related items, stock-based compensation, restruc
Slide 21: WEX Non-GAAP Reconciliation
WEX Non-GAAP Reconciliation Three Months Ended December 31, Three Months Ended December 31, Year Ended December 31, Year Ended December 31, 2019 2019 2018 2018 2019 2019 2018 2018 (In thousands except per share data) per diluted share per diluted share per dilutedshare per dilutedshare per diluted s