WEX (WEX) 8-K Wright Express Reports First Quarter 2012 Financial Results

Exhibit 99.1

Wright Express Reports First Quarter 2012 Financial Results

Continued execution against multi-pronged growth strategy drives strong top- and bottom-line growth

SOUTH PORTLAND, Maine--(BUSINESS WIRE)--May 2, 2012--Wright Express Corporation (NYSE: WXS), a leading provider of value-based business payment processing and information management solutions, today reported financial results for the three months ended March 31, 2012.

First Quarter Financial Results

Total revenue for the first quarter of 2012 increased 17% to $140.1 million from $120.1 million for the first quarter of 2011. Net income to common shareholders on a GAAP basis was $23.2 million, or $0.59 per diluted share, compared with $12.1 million, or $0.31 per diluted share, for the first quarter last year.

On a non-GAAP basis, the Company's adjusted net income for the first quarter of 2012 increased 22% to $35.6 million, or $0.91 per diluted share, from $29.2 million, or $0.75 per diluted share, for the same period a year ago.

Wright Express uses fuel-price derivative instruments to mitigate financial risks associated with the variability in fuel prices in North America. The Company's GAAP financial results include an unrealized pre-tax, non-cash, mark-to-market loss of $13.6 million dollars for the first quarter of 2012. See Exhibit 1 for a full reconciliation of adjusted net income.

“Our performance in the first quarter, where we achieved revenue growth of 17% and adjusted net income growth of 22%, reflected our continued execution against our three-pronged growth strategy,” commented Michael Dubyak, Chairman, President and Chief Executive Officer. “During the quarter we made greater progress in expanding our core fleet business, with new business wins driving organic growth. Furthermore, we saw strong performance from our corporate charge card product and took additional steps to capitalize on increasing international market acceptance to accelerate the growth of this successful product. Looking ahead, with positive momentum in the business we feel optimistic about the long-term direction of our business given the growth platforms we have established.”

First Quarter 2012 Performance Metrics

• Average number of vehicles serviced worldwide was approximately 6.7 million, an increase of 13% from the first quarter of 2011.
• Total fuel transactions processed increased 8% from the first quarter of 2011 to 79.3 million. Payment processing transactions increased 3% to 60.6 million; transaction processing transactions increased 31% to 18.7 million.
• Average expenditure per domestic payment processing transaction increased 13% from the first quarter of 2011 to $73.29.
• Domestic retail fuel price increased 10% to $3.72 per gallon from $3.38 per gallon in the first quarter of 2011.
• Total corporate card purchase volume grew 52% to $2.2 billion, from $1.4 billion for the first quarter of 2011.

Financial Guidance and Assumptions

“We continue to solidly execute against our strategy, which is driving broad-based growth across the business. Our updated guidance for the full-year 2012 reflects our expectation for continued strength, as well as faster growth in our Other Payments Solutions Segment, higher fuel prices and ongoing investments in the business to support our future growth,” said Steve Elder, Senior Vice President and Chief Financial Officer.

• For the second quarter of 2012, Wright Express expects revenue in the range of $145 million to $150 million and adjusted net income in the range of $36 million to $38 million, or $0.92 to $0.98 per diluted share.
• For the full-year 2012, the Company expects revenue in the range of $602 million to $617 million and adjusted net income to be in the range of $160 million to $168 million, or $4.10 to $4.30 per diluted share.

Second quarter 2012 guidance is based on an assumed average U.S. retail fuel price of $3.93 per gallon, and approximately 39 million shares outstanding. Full-year 2012 guidance is based on an assumed average U.S. retail fuel price of $3.72 per gallon and approximately 39 million shares outstanding. In addition, the fuel prices referenced above are based on the applicable NYMEX futures price. Wright Express is assuming the exchange rate of the Australian dollar will remain at a premium to the US dollar. The Company's guidance also assumes that second quarter 2012 domestic fleet credit loss will range between 9 to 14 basis points, and that domestic fleet credit loss for full-year 2012 will range between 10 and 15 basis points. The Company also expects the improved credit loss guidance will be offset by a reduction in finance fee revenue.

The Company's guidance does not reflect the impact of any stock repurchases that may occur in 2012. In addition, this guidance excludes the impact of non-cash, mark-to-market adjustments on the Company's fuel-price-related derivative instruments and the amortization of purchased intangibles.

Additional Information

Exhibit 1 reconciles adjusted net income, which has not been determined in accordance with GAAP, to net income as determined in accordance with GAAP for the first quarters of 2012 and 2011.

Management uses the non-GAAP measures presented within this news release to evaluate the Company's performance on a comparable basis to eliminate the volatility associated with its derivative instruments and to measure the amount of cash that is available for making payments on the Company's financing debt and for discretionary purposes. 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.

To provide investors with additional insight into its operational performance, Wright Express has included in this news release a table of selected non-financial metrics for the five quarters ended March 31, 2012. This table is presented as Exhibit 2. The Company is also providing selected segment review information for the three months ending March 31, 2012 and 2011 in Exhibit 3.

Conference Call Details

In conjunction with this announcement, Wright Express will host a conference call today, May 2, 2012, at 10:00 a.m. (ET). As previously announced, the conference call will be webcast live on the Internet, and can be accessed at the Investor Relations section of the Wright Express website, http://www.wrightexpress.com. The live conference call also can be accessed by dialing (866) 334-7066 or (973) 935-8463. A replay of the webcast will be available on the Company's website.

About Wright Express

Wright Express (NYSE:WXS) is a leading provider of value-based, business payment processing and information management solutions. The Company's fleet, corporate and prepaid payment solutions provide its more than 350,000 customers with unparalleled security and control across a wide spectrum of business sectors. The Company's operations include Wright Express Financial Services, Pacific Pride, Wright Express Prepaid Cards Australia and Wright Express Fuel Cards Australia. Wright Express and its subsidiaries employ more than 900 associates in six countries. For more information about Wright Express, please visit wrightexpress.com.

Forward Looking Statement

This press release contains forward-looking statements, including statements regarding: financial guidance; assumptions underlying the Company's financial guidance; management’s expectations for the Company’s performance in 2012 and beyond; management’s expectations for future performance against corporate strategy; expectations for efforts to continue growth; and, confidence in future performance. Any statements that are not statements of historical facts may be deemed to be forward-looking statements. When used in this earnings release, the words "may," "could," "anticipate," "plan," "continue," "project," "intend," "estimate," "believe," "expect" and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially, including: the effects of general economic conditions on fueling patterns and the commercial activity of fleets; the effects of the Company’s international business expansion and integration efforts and any failure of those efforts; the impact and range of credit losses; breaches of the Company’s technology systems and any resulting negative impact on our reputation liability, or loss of relationships with customers or merchants; the Company’s failure to successfully integrate the businesses it has acquired; fuel price volatility; the Company’s failure to maintain or renew key agreements; failure to expand the Company’s technological capabilities and service offerings as rapidly as the Company’s competitors; the actions of regulatory bodies, including banking and securities regulators, or possible changes in banking regulations impacting the Company’s industrial bank and the Company as the corporate parent; the impact of foreign currency exchange rates on the Company’s operations, revenue and income; changes in interest rates; financial loss if the Company determines it necessary to unwind its derivative instrument position prior to the expiration of a contract; the incurrence of impairment charges if our assessment of the fair value of certain of our reporting units changes; the uncertainties of litigation; as well as other risks and uncertainties identified in Item 1A of the Company's Annual Report for the year ended December 31, 2011, filed on Form 10-K with the Securities and Exchange Commission on February 28, 2012 and the Company's subsequent periodic and current reports. The Company's forward-looking statements and these factors do not reflect the potential future impact of any alliance, merger, acquisition, disposition or stock repurchases. The forward-looking statements speak only as of the date of this press release and undue reliance should not be placed on these statements. The Company disclaims any obligation to update any forward-looking statements as a result of new information, future events or otherwise.

WRIGHT EXPRESS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (in thousands, except per share data) (unaudited)
			Three months ended March 31,
			2012			2011
Revenues
	Fleet payment solutions			$	109,147		$	98,534
	Other payment solutions				30,975			21,556
		Total revenues			140,122			120,090
Expenses
	Salary and other personnel				28,715			25,694
	Service fees				20,308			13,010
	Provision for credit losses				5,043			5,659
	Technology leasing and support				4,267			3,934
	Occupancy and equipment				2,816			3,265
	Depreciation and amortization				11,317			10,969
	Operating interest expense				1,111			1,278
	Cost of hardware and equipment sold				727			1,051
	Other				7,855			9,058
		Total operating expenses			82,159			73,918
Operating income					57,963			46,172
Financing interest expense					(2,285	)		(2,439	)
(Loss) gain on foreign currency transactions					(20	)		488
Net realized and unrealized losses on fuel price derivatives					(18,812	)		(25,175	)
Income before income taxes					36,846			19,046
Provision for income taxes					13,610			6,931
Net income					23,236			12,115
Other comprehensive income
Changes in available-for-sale securities, net of tax effect
	of $(10) in 2012 and $(7) in 2011				(16	)		(12	)
Changes in interest rate swaps, net of tax effect
	of $35 in 2012 and $41 in 2011				60			70
Foreign currency translation, net of tax effect of $(28) in 2012 and $37 in 2011					8,002			7,683
Total other comprehensive income				$	31,282		$	19,856
Earnings per share:
	Basic			$	0.60		$	0.31
	Diluted			$	0.59		$	0.31
Weighted average common shares outstanding:
	Basic				38,820			38,516
	Diluted				39,123			38,872

WRIGHT EXPRESS CORPORATION CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands, except per share data) (unaudited)
				March 31, 2012			December 31, 2011
Assets
	Cash and cash equivalents			$	30,443		$	25,791
	Accounts receivable (less reserve for credit losses of $10,724 in 2012 and $11,526 in 2011)				1,555,035			1,323,915
	Income taxes receivable				714			7,755
	Available-for-sale securities				16,751			17,044
	Fuel price derivatives, at fair value				—			410
	Property, equipment and capitalized software (net of accumulated depreciation of
		$113,026 in 2012 and $109,133 in 2011)			60,973			62,078
	Deferred income taxes, net				141,664			143,524
	Goodwill				554,771			549,504
	Other intangible assets, net				105,627			109,656
	Other assets				48,063			38,383
Total assets				$	2,514,041		$	2,278,060
Liabilities and Stockholders' Equity
	Accounts payable			$	553,401		$	409,226
	Accrued expenses				50,721			54,738
	Deposits				706,739			693,654
	Borrowed federal funds				47,226			6,900
	Revolving line-of-credit facilities and term loan				288,400			295,300
	Amounts due under tax receivable agreement				92,763			92,763
	Fuel price derivatives, at fair value				13,560			415
	Other liabilities				16,287			15,749
	Total liabilities				1,769,097			1,568,745
	Commitments and contingencies
	Stockholders' Equity
		Common stock $0.01 par value; 175,000 shares authorized, 42,431 in 2012
			and 42,252 in 2011 shares issued; 38,949 in 2012 and 38,765 in 2011 shares outstanding		424			423
		Additional paid-in capital			150,628			146,282
		Retained earnings			656,625			633,389
		Other comprehensive income (loss), net of tax:
			Net unrealized gain on available-for-sale securities		184			200
			Net unrealized loss on interest rate swaps		—			(60	)
			Net foreign currency translation adjustment		38,450			30,448
		Accumulated other comprehensive income			38,634			30,588
		Less treasury stock at cost, 3,566 shares in 2012 and 2011			(101,367	)		(101,367	)
	Total stockholders' equity				744,944			709,315
Total liabilities and stockholders' equity				$	2,514,041		$	2,278,060

WRIGHT EXPRESS CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (in thousands) (unaudited)
		Three months ended March 31,
			2012			2011
Cash flows from operating activities
	Net income	$	23,236		$	12,115
	Adjustments to reconcile net income to net cash (used for) provided by operating activities:
	Fair value change of fuel price derivatives		13,555			20,818
	Stock-based compensation		3,424			2,260
	Depreciation and amortization		11,667			12,203
	Deferred taxes		1,908			507
	Provision for credit losses		5,043			5,659
	Changes in operating assets and liabilities, net of effects of acquisition:
	Accounts receivable		(233,962	)		(262,024	)
	Other assets		(9,864	)		(2,899	)
	Accounts payable		143,296			171,689
	Accrued expenses		(4,041	)		(6,424	)
	Income taxes		7,205			1,744
	Other liabilities		295			(176	)
	Net cash used for operating activities		(38,238	)		(44,528	)
Cash flows from investing activities
	Purchases of property and equipment		(4,968	)		(6,423	)
	Purchases of available-for-sale securities		(80	)		(1,761	)
	Maturities of available-for-sale securities		347			233
	Acquisition of ReD - adjustment, net of cash acquired		—			429
	Acquisition of rapid!, net of earn out		—			(8,081	)
	Net cash used for investing activities		(4,701	)		(15,603	)
Cash flows from financing activities
	Excess tax benefits from equity instrument share-based payment arrangements		2,244			3,008
	Repurchase of share-based awards to satisfy tax withholdings		(2,608	)		(1,540	)
	Proceeds from stock option exercises		1,287			2,300
	Net change in deposits		13,085			128,018
	Net change in borrowed federal funds		40,326			(59,484	)
	Repayments on term loan		(2,500	)		—
	Net change in revolving line-of-credit facility		(4,400	)		5,800
	Net cash provided by financing activities		47,434			78,102
Effect of exchange rate changes on cash and cash equivalents			157			(154	)
Net increase in cash and cash equivalents			4,652			17,817
Cash and cash equivalents, beginning of period			25,791			18,045
Cash and cash equivalents, end of period		$	30,443		$	35,862
Supplemental cash flow information
	Interest paid	$	3,319		$	3,281
	Income taxes paid	$	2,248		$	1,656
Significant non-cash transaction
	Acquisition of rapid! – estimated earn out	$	—		$	10,000
	Reduction to rapid! – estimated earn out	$	839			—

Exhibit 1 Reconciliation of Adjusted Net Income to GAAP Net Income First Quarter 2012 and 2011 (in thousands) (unaudited)
	Three months ended March 31,
	2012			2011
Adjusted net income	$	35,567		$	29,166
Unrealized gains (losses) on fuel price derivatives		(13,555	)		(20,818	)
Amortization of acquired intangible assets		(5,086	)		(5,565	)
Tax impact		6,310			9,332
Net income	$	23,236		$	12,115

Although adjusted net income is not calculated in accordance with generally accepted accounting principles (GAAP), this measure is integral to the Company's reporting and planning processes. The Company considers this measure integral because it eliminates the non-cash volatility associated with the fuel price related derivative instruments, and excludes the amortization of purchased intangibles, the net impact of tax rate changes on the Company's deferred tax asset and related changes in the tax-receivable agreement. Specifically, in addition to evaluating the Company's performance on a GAAP basis, management evaluates the Company's performance on a basis that excludes the above items because:

• Exclusion of the non-cash, mark-to-market adjustments on fuel-price related derivative instruments helps management identify and assess trends in the Company's underlying business that might otherwise be obscured due to quarterly non-cash earnings fluctuations associated with fuel-price derivative contracts;
• The non-cash, mark-to-market adjustments on derivative instruments are difficult to forecast accurately, making comparisons across historical and future quarters difficult to evaluate; and
• The amortization of purchased intangibles has no impact on the operations of the business.

For the same reasons, Wright Express believes that adjusted net income may also be useful to investors as one means of evaluating the Company's performance. However, because adjusted net income is a non-GAAP measure, it should not be considered as a substitute for, or superior to, net income, operating income or cash flows from operating activities as determined in accordance with GAAP. In addition, adjusted net income as used by Wright Express may not be comparable to similarly titled measures employed by other companies.

The tax impact of the foregoing adjustments is the difference between the Company's GAAP tax provision and a pro forma tax provision based upon the Company's adjusted net income before taxes. The methodology utilized in calculating the Company's adjusted net income tax provision is the same methodology utilized in calculating the Company's GAAP tax provision.

Exhibit 2 Selected Non-Financial Metrics
		Q1 2012	Q4 2011	Q3 2011	Q2 2011	Q1 2011
Fleet Payment Solutions – Payment Processing Revenue:
Payment processing transactions (000s)		60,557	60,598	65,230	63,187	58,913
Gallons per payment processing transaction		19.5	19.6	19.3	19.2	19.1
Payment processing gallons of fuel (000s)		1,178,090	1,185,522	1,261,088	1,214,032	1,127,019
Average US fuel price (US$ / gallon)	$	3.72	3.53	3.70	3.86	3.38
Average Australian fuel price (US$ / gallon)	$	5.80	5.45	5.50	5.70	5.32
Payment processing $ of fuel (000s)	$	4,503,698	4,304,150	4,778,493	4,787,730	3,913,085
Net payment processing rate		1.64%	1.66%	1.64%	1.64%	1.68%
Fleet payment processing revenue (000s)	$	73,855	71,276	78,381	78,444	65,655
Other Payment Solutions – Payment Processing Revenue:*
Payment solutions purchase volume (000s)	$	2,189,578	2,018,097	2,404,668	1,900,736	1,435,965
Net interchange rate		0.90%	0.98%	0.99%	0.97%	1.01%
Payment solutions processing revenue (000s)	$	19,747	19,845	23,723	18,502	14,563

*Excludes prepaid payroll card

Notes:

Payment processing transaction and vehicle count data, as well as related calculated metrics associated with this data, for Q1 2011 reflects information provided from an improved business intelligence reporting process that was implemented in Q2 2011. These changes did not impact the Company’s revenue or earnings.

Definitions and explanations:

Payment processing transactions represents the total number of purchases made by fleets that have a payment processing relationship with Wright Express.

Payment processing gallons of fuel represents the total number of gallons of fuel purchased by fleets that have a payment processing relationship with Wright Express.

Payment processing $ of fuel represents the total dollar value of the fuel purchased by fleets that have a payment processing relationship with Wright Express.

Net payment processing rate represents the percentage of the dollar value of each payment processing transaction that Wright Express records as revenue from merchants less any discounts given to fleets or strategic relationships.

Payment solutions purchase volume represents the total dollar value of all transactions that use corporate charge card products including single use account products.

Net interchange rate represents the percentage of the dollar value of each MasterCard transaction that Wright Express records as revenue less any discounts given to customers.

Exhibit 3 Segment Revenue Information Three Months Ended March 31, 2012 and 2011 (in thousands) (unaudited)
Fleet Payment Solutions
			Three months ended March 31,				Increase (decrease)
				2012		2011	Amount			Percent
Revenues
	Payment processing revenue		$	73,855	$	65,655	$	8,200		12	%
	Transaction processing revenue			3,981		3,876		105		3	%
	Account servicing revenue			15,454		13,809		1,645		12	%
	Finance fees			11,189		10,006		1,183		12	%
	Other			4,668		5,188		(520	)	(10	)%
		Total revenues		109,147		98,534		10,613		11	%

Other Payment Solutions
		Three months ended March 31,				Increase (decrease)
(in thousands)			2012		2011	Amount		Percent
Revenues
	Payment processing revenue	$	20,165	$	14,563	$	5,602	38	%
	Transaction processing revenue		2,038		1,888		150	8	%
	Account servicing revenue		1,044		240		804	335	%
	Finance fees		172		127		45	35	%
	Other		7,556		4,738		2,818	59	%
	Total revenues		30,975		21,556		9,419	44	%

CONTACT:
News media contact:
Wright Express
Jessica Roy, 207-523-6763
Jessica_Roy@wrightexpress.com
or
Investor contact:
Wright Express
Michael E. Thomas, 207-523-6743
Michael_Thomas@wrightexpress.com