Wright Express sales down, but income rises
Despite a significant drop in revenue, Wright Express in South Portland said today its net income for the second quarter was $93.2 million, beating its own and Wall Street's expectations.
The company reported its second-quarter revenues were $78.6 million, a 29% decrease from the same period last year, which was blamed on lower fuel prices. However, the company's revenues were still well ahead of the company's projected range of $66 million to $72 million and ahead of Wall Street expectations of $74.5 million.
Wright Express' $93.2 million net income on a GAAP basis is compared to a net loss of $24.4 million for the same period last year. The company's GAAP results include a one-time gain of $136.5 million related to the prepayment of a future liability.
Because it uses fuel price derivate instruments to mitigate the risks related to the volatility of fuel prices, the company also reports adjusted net income, a non-GAAP number. Its ANI for the second quarter was $22.4 million, or 57 cents per share, unchanged from the same period last year, but ahead of its projected range of 38 cents to 43 cents per share and ahead of Wall Street expectations of 40 cents per share. The ANI excludes that one-time gain of $136.5 million included in the net income. For more on Wright Express, read a profile of the company, "Driving force," from the May 18, 2009, issue of Mainebiz.
"Our second-quarter results were clearly better than we anticipated, with revenue and adjusted net income both exceeding the high end of our guidance range," said Michael Dubyak, the company's chairman and CEO, in the report. "Reduced credit loss was a key factor, reflecting strong performances by our credit granting and collections areas for the second consecutive quarter. Our results also benefited from higher-than-expected revenues, primarily reflecting a rise in average fuel price."
For the third quarter, Wright Express expects revenue in the range of $78 million to $83 million, based on an average retail fuel price of $2.39 per gallon, and adjusted net income in the range of $21 million to $23 million. For the full year, the company expects revenue in the range of $300 million to $310 million, based on an average retail fuel price of $2.26 per gallon, and adjusted net income in the range of $77 million to $81 million.
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