Wright Express Earns 74 Cents Per Share

Wright Express (WXS) reports earnings of 74 cents per share, three cents more than Wall Street’s expectations. The shares are currently up 1.8% today.

Total revenue for the fourth quarter of 2010 increased 38% to $114.9 million from $83.0 million for the fourth quarter of 2009. Fourth quarter 2010 revenue included $17.4 million from Wright Express Australia, which was acquired on September 15, 2010. Net income to common shareholders on a GAAP basis was $18.5 million, or $0.47 per diluted share, compared with $12.1 million, or $0.31 per diluted share, for the fourth quarter last year.

On a non-GAAP basis, the Company’s adjusted net income for the fourth quarter of 2010 increased 32% to $28.8 million, or $0.74 per diluted share, from $22.1 million, or $0.56 per diluted share, for the year-earlier period. For the full year 2010, revenue grew 24% to $390 million from $315 million in 2009. On a GAAP basis, net income was $2.25 per share in 2010 compared to $3.55 last year per diluted share in 2009, which included a pre-tax gain of $136.5 million on the prepayment of the Company’s liability under a tax-receivable agreement. On an adjusted net income basis, earnings grew 26% to $2.75 per share versus $2.18 per share last year.

Wright Express uses fuel-price derivative instruments to mitigate financial risks associated with the variability in fuel prices in North America. For the fourth quarter of 2010, the Company’s GAAP financial results include an unrealized $10 million pre-tax, non-cash, mark-to-market loss on these instruments. See Exhibit 1 for a full reconciliation of adjusted net income.

“We ended 2010 with strong momentum driven by an unrelenting focus on execution underpinned by an improving macro-economic environment. Importantly, the strength of our results for the fourth quarter and full year were broad-based. We saw improving same-store sales, increased payment processing transactions, strong vehicle growth, exceptional growth in our MasterCard business, and Wright Express Australia met expectations. In addition, during the year we selectively invested in our business to enhance our competitive position and capitalize on compelling growth opportunities both domestically and abroad,” said Michael Dubyak, Chairman and CEO. “In 2011, we will build on this momentum and leverage the multiple avenues of growth in front of us by growing our core fleet business, expanding other payment solutions, and broadening our international footprint.”

Wright also says it expects 63 to 69 cents per share for Q1, and $3.17 to $3.37 for all of 2011.

Posted by on February 10th, 2011 at 10:24 am


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