SOUTH PORTLAND, Maine--(BUSINESS WIRE)--WEX Inc. (NYSE:WEX), a leading provider of corporate payment solutions, today reported financial results for the three months ended June 30, 2016.

Second Quarter 2016 Financial Results

Total revenue for the second quarter of 2016 increased 9.5% to $233.9 million from $213.7 million for the second quarter of 2015. During the quarter, fuel prices and foreign currency translations negatively impacted revenue by $13.6 million and $2.2 million, respectively, when compared to the prior year period.

Net earnings attributable to WEX Inc. on a GAAP basis decreased $13.9 million to $12.6 million, or $0.32 per diluted share, compared with $26.5 million, or $0.68 per diluted share, for the second quarter 2015. On a non-GAAP basis, the Company's adjusted net income attributable to WEX Inc. for the second quarter of 2016 decreased to $42.1 million, or $1.08 per diluted share, which is above the high end of our guidance range, from $48.3 million, or $1.25 per diluted share, for the same period last year. See Exhibit 1 for a full explanation and reconciliation of adjusted net income attributable to WEX Inc. and adjusted net income attributable to WEX Inc. per diluted share to the GAAP measures.

“I am pleased to announce a strong second quarter, which exceeded expectations. Our results were driven by continued focus on organic growth opportunities across our core verticals and execution against our strategic priorities. As recently announced, we closed the Electronic Funds Source (EFS) acquisition on July 1, which represents a significant milestone for our fleet business. We believe the benefits of the combination are compelling, including the opportunity to drive scale and value creation,” said Melissa Smith, WEX’s president and chief executive officer.

Smith continued, “Overall, we feel very good about where we stand at the halfway mark this year. Our organic growth engine has proven to be resilient over the years and will become even stronger as we further integrate our newly acquired businesses and pursue new inorganic opportunities. As we enter the second half of the year, I am confident that our momentum will continue as we focus on advancing our market position globally, enhancing our innovative product offering and maintaining our industry leading customer service.”

Second Quarter 2016 Performance Metrics

• Average number of vehicles serviced worldwide was approximately 9.6 million, a decrease of 2% from the second quarter of 2015. The decline in vehicles serviced is due to the divestiture of Pacific Pride.
• Total fuel transactions processed increased 2% from the second quarter 2015 to 104.9 million. Payment processing transactions increased 9% to 94.2 million.
• Average expenditure per payment processing transaction decreased 19% from the second quarter of 2015 to $55.61.
• U.S. retail fuel price decreased 16% to $2.29 per gallon from $2.74 per gallon from the second quarter of 2015.
• Total Travel and Corporate Solution card purchase volume grew 14% to $5.6 billion, from $4.9 billion from the second quarter of 2015.

Financial Guidance and Assumptions

The Company provides revenue guidance on a GAAP basis and earnings guidance on a non-GAAP basis, due to the uncertainty and indeterminate amount of certain elements that are included in reported GAAP results.

• For the third quarter of 2016, WEX expects revenue in the range of $272 million to $282 million and adjusted net income in the range of $46 million to $49 million, or $1.07 to $1.14 per diluted share.
• For the full year 2016, the Company expects revenue in the range of $975 million to $1 billion and adjusted net income in the range of $171 million to $179 million, or $4.17 to $4.37 per diluted share.

Third quarter 2016 guidance is based on an assumed average U.S. retail fuel price of $2.22 per gallon, excluding the impact of EFS. Full-year 2016 guidance is based on an assumed average U.S. retail fuel price of $2.16 per gallon, also excluding EFS. The fuel prices referenced above are based on the applicable NYMEX futures price. Our guidance assumes approximately 43 million shares outstanding for the third and fourth quarters.

The Company's guidance also assumes that third quarter 2016 fleet credit loss will range between 9 and 14 basis points, and full year 2016 fleet credit loss will range between 10 and 15 basis points, excluding EFS.

The Company's non-GAAP adjusted net income guidance excludes acquisition and divestiture related items, stock-based compensation, restructuring costs, net foreign currency remeasurement gains and losses, similar adjustments attributed to our non-controlling interest and certain tax related items.

Additional Information

Management uses the non-GAAP measures presented within this news release to evaluate the Company's performance on a comparable basis. Management believes that investors may find these measures useful for the same purposes, but cautions that they should not be considered a substitute for, or superior to, disclosure in accordance with GAAP.

WEX has historically used fuel-price derivative instruments to mitigate financial risks associated with the variability in fuel prices in North America. Starting with the second quarter of 2016, there are no longer any fuel price related derivatives outstanding.

To provide investors with additional insight into its operational performance, WEX has included in this news release in Exhibit 2, a table illustrating the impact of foreign currency translations and fuel prices for each of our operating segments for the three and six months ended June 30, 2016 and 2015, and in Exhibit 3, a table of selected non financial metrics for the five quarters ended June 30, 2016. The Company is also providing selected segment revenue information for the three months ended June 30, 2016 and 2015 in Exhibit 4.

About WEX Inc.

WEX Inc. (NYSE: WEX) is a leading provider of corporate payment solutions. From its roots in fleet card payments beginning in 1983, WEX has expanded the scope of its business into a multi-channel provider of corporate payment solutions representing approximately 10 million vehicles and offering exceptional payment security and control across a wide spectrum of business sectors. WEX serves a global set of customers and partners through its operations around the world, with offices in the United States, Australia, New Zealand, Brazil, the United Kingdom, Italy, France, Germany, Norway, and Singapore. WEX and its subsidiaries employ more than 2,500 associates. The Company has been publicly traded since 2005, and is listed on the New York Stock Exchange under the ticker symbol “WEX.” For more information, visit www.wexinc.com and follow WEX on Twitter at @WEXIncNews.