Wright Express Q1 shares increase as profit drops
Wright Express, a South Portland payment processer for commercial and government vehicle fleets, has reported a 24% decline in net income for the first quarter of 2009. However, the company's shares increased 18%, to $24.08 in midday trading as the profits beat Wall Street expectations, according to the Associated Press. Shares have traded between $8.21 and $34.75 in the past 52 weeks, the AP said.
Total revenues fell 26% to $69.2 million from $92.9 million in the first quarter of 2008. Net income on a non-GAAP basis fell nearly 7% in the first quarter to $16.3 million from $17.4 million, according to a company press release. The non-GAAP - or generally accepted accounting principles - numbers more accurately reflect the company's performance, because they do not take into account unrealized gains from fuel price derivatives. Net income on a GAAP basis was $11 million, compared with $14.5 million for the same quarter a year earlier, the release states.
Fleet transaction volumes eroded year-over-year as expected, but credit losses were reduced through improved collections practices, Michael Dubyak, the company's chairman and CEO, said in the release.
For the second quarter of 2009, the company expects revenues between $66 million and $72 million.
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