WEX income rises 5% in 2Q
WEX Inc., the South Portland-based international provider of corporate payment services, reported today an adjusted net income of $41.1 million for the second quarter of 2013, which is up $2 million or 5% over the $39.1 million reported for the same period a year ago.
Net income to common shareholders on a generally accepted accounting principles basis was $42.2 million, or $1.08 per diluted share, compared with $30.3 million, or $0.78 per diluted share, for the second quarter last year.
Total revenues for the second quarter increased to $178.3 million, up 16% from the $153.1 million reported a year ago.
Both increases build on the momentum of the company’s first quarter performance, which included a better-than-expected 18% increase in revenues over the first quarter of 2012, from $140.1 million to $165.4 million.
Michael E. Dubyak, WEX chairman and CEO, cited the company’s long-term agreement to provide private label and co-branded universal fleet card services to CITGO Petroleum Corp. as one example of “key business wins” that are helping to drive the company’s continuing growth. The new program, announced in late June, illustrates the way in which WEX is expanding its core fleet card services into long-term partnerships with private labels.
“It speaks to our value proposition,” Dubyak said. “They know we have strong products and strong customer-satisfaction ratings.”
As was true in the first quarter, he said, WEX’s purchase of Fleet One last October and its continued expansion in the travel “virtual card” markets within Europe, the Asia-Pacific rim and South America, also contributed to the company’s second quarter growth.
For the full year, WEX expects its 2013 revenues to be in the range of $718 million to $728 million, with adjusted net income to be in the range of $167 million to $171 million, or $4.27 to $4.37 per diluted share.
WEX President Melissa Smith — who Dubyak credited today as being “the strategic architect”of WEX’s travel business going international — said the company will continue to make acquisitions that will help it expand in both existing and new markets and continue to grow.
“We feel bullish,” Dubyak agreed. “We’re putting a lot in place that provides a strong foundation for growth.”
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