Exhibit 99.3
SELECTED HISTORICAL CONSOLIDATED FINANCIAL AND OPERATING INFORMATION
The following tables set forth our selected consolidated historical financial information for the periods ended and as of the dates indicated. You should read the following historical financial information along with the consolidated financial statements and related notes included in Item 8 of our annual report on Form 10-K for the year ended December 31, 2011 and Item 1 of our quarterly report on Form 10-Q for the quarter ended September 30, 2012. The financial information included in the tables below as of December 31, 2010 and 2011 and for the years ended December 31, 2009 through 2011 is derived from the audited financial statements included in our annual report on Form 10-K for the fiscal year ended December 31, 2011. Our selected consolidated historical financial data as of December 31, 2008 and 2009 and for the year ended December 31, 2008 is derived from audited financial statements, included in our annual reports on Form 10-K for the years ended December 31, 2009 and 2008. The financial information as of and for the nine months ended September 30, 2011 and September 30, 2012 is derived from the unaudited financial statements and the financial information included in our quarterly report on Form 10-Q for the fiscal quarter ended September 30, 2012.
The summary consolidated financial data for the twelve months ended September 30, 2012 have been calculated by adding our historical financial data for the year ended December 31, 2011 and the nine months ended September 30, 2012 and subtracting our historical financial data for the nine months ended September 30, 2011.
Our results for the periods ended September 30, 2012 are not necessarily indicative of the results that may be expected for the entire year. Historical results are not necessarily indicative of results that may be expected for any future period.
Year Ended December 31, | Nine Months Ended September 30, | Twelve Months Ended September 30, 2012 | ||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2012 | 2011 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Income statement data | ||||||||||||||||||||||||||||
Total revenues | $ | 553,076 | $ | 390,406 | $ | 315,203 | $ | 388,159 | $ | 454,153 | $ | 413,240 | $ | 593,989 | ||||||||||||||
Salary and other personnel | 104,610 | 87,364 | 75,123 | 66,969 | 87,501 | 79,492 | 112,619 | |||||||||||||||||||||
Service fees | 70,202 | 46,368 | 27,666 | 20,361 | 74,046 | 51,978 | 92,270 | |||||||||||||||||||||
Provision for credit losses | 27,527 | 19,838 | 17,715 | 45,021 | 14,874 | 20,464 | 21,937 | |||||||||||||||||||||
Technology leasing and support | 15,423 | 12,881 | 9,327 | 8,510 | 13,718 | 11,851 | 17,290 | |||||||||||||||||||||
Occupancy and equipment | 11,803 | 8,654 | 8,718 | 9,159 | 9,062 | 8,846 | 12,019 | |||||||||||||||||||||
Depreciation and amortization | 45,369 | 29,893 | 21,930 | 20,123 | 50,591 | 33,644 | 62,316 | |||||||||||||||||||||
Operating interest expense | 5,453 | 5,370 | 10,253 | 29,570 | 3,430 | 4,188 | 4,695 | |||||||||||||||||||||
Other(1) | 39,365 | 29,329 | 26,321 | 27,014 | 28,811 | 30,186 | 37,990 | |||||||||||||||||||||
Total operating expenses | 319,752 | 239,697 | 197,053 | 226,727 | 282,033 | 240,649 | 361,136 | |||||||||||||||||||||
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Operating income | 233,324 | 150,709 | 118,150 | 161,432 | 172,120 | 172,591 | 232,853 | |||||||||||||||||||||
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Financing interest expense | (11,676 | ) | (5,314 | ) | (6,210 | ) | (11,859 | ) | (6,877 | ) | (9,087 | ) | (9,466 | ) | ||||||||||||||
Net (loss) gain on foreign currency transactions | (459 | ) | 7,145 | (40 | ) | — | (312 | ) | (363 | ) | (408 | ) | ||||||||||||||||
Gain on settlement of portion of amounts due under tax receivable agreement | — | — | 136,485 | — | — | — | — | |||||||||||||||||||||
Net realized and unrealized losses on fuel price derivatives | (11,869 | ) | (7,244 | ) | (22,542 | ) | 55,206 | (12,046 | ) | (4,991 | ) | (18,924 | ) | |||||||||||||||
Decrease in tax refund due to former shareholder of RD Card Holdings Australia | — | — | — | 9,750 | — | 9,750 | ||||||||||||||||||||||
Increase in amount due under tax receivable agreement | (715 | ) | (214 | ) | (599 | ) | (9,014 | ) | — | (875 | ) | 160 | ||||||||||||||||
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Income before income taxes | 208,605 | 145,082 | 225,244 | 195,765 | 162,635 | 157,275 | 213,965 | |||||||||||||||||||||
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Income taxes | 74,983 | 57,453 | 85,585 | 68,125 | 94,780 | 56,445 | 113,318 | |||||||||||||||||||||
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Net income before noncontrolling interest | 133,622 | 87,629 | 139,659 | 127,640 | 67,855 | 100,830 | 100,647 | |||||||||||||||||||||
Less: Net earnings from noncontrolling interest | — | — | — | (14 | ) | — | (14 | ) | ||||||||||||||||||||
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Net earnings attributable to WEX Inc. | $ | 133,622 | $ | 87,629 | $ | 139,659 | $ | 127,640 | $ | 67,869 | $ | 100,830 | $ | 100,661 | ||||||||||||||
Changes in available-for-sale securities, net of tax | 108 | 69 | 76 | (4 | ) | 114 | 144 | 78 | ||||||||||||||||||||
Changes in interest rate swaps, net of tax | 308 | (192 | ) | 1,560 | (319 | ) | 60 | 252 | 116 | |||||||||||||||||||
Foreign currency translation | 2,567 | 28,015 | (79 | ) | (70 | ) | 7,189 | (11,407 | ) | 21,163 | ||||||||||||||||||
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Comprehensive income attributable to WEX Inc. | $ | 136,605 | $ | 115,521 | $ | 141,216 | $ | 127,247 | $ | 75,232 | $ | 89,819 | $ | 122,018 | ||||||||||||||
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(1) | Included in Other is advertising, marketing, postage and shipping and communications expenses. |
1
Year Ended December 31, | As of September 30, | |||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2012 | 2011 | |||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||
Balance sheet data | ||||||||||||||||||||||||
Cash and cash equivalents(1) | $ | 25,791 | $ | 18,045 | $ | 39,304 | $ | 183,117 | $ | 435,303 | $ | 42,077 | ||||||||||||
Accounts receivable (less reserve for credit losses) | 1,323,915 | 1,160,482 | 844,152 | 702,225 | 1,630,699 | 1,512,343 | ||||||||||||||||||
Total assets | 2,278,060 | 2,097,951 | 1,499,662 | 1,611,855 | 3,062,433 | 2,474,080 | ||||||||||||||||||
Accounts payable | 409,226 | 379,855 | 283,149 | 249,067 | 586,941 | 525,920 | ||||||||||||||||||
Deposits | 693,654 | 529,800 | 423,287 | 540,146 | 1,206,114 | 700,766 | ||||||||||||||||||
Borrowed federal funds | 6,900 | 59,484 | 71,723 | — | — | 68,713 | ||||||||||||||||||
Revolving line-of-credit facilities and term loan | 295,300 | 407,300 | 128,000 | 170,600 | 300,000 | 360,200 | ||||||||||||||||||
Total liabilities | 1,568,745 | 1,538,944 | 1,058,346 | 1,317,193 | 2,256,283 | 1,813,795 | ||||||||||||||||||
Total stockholders’ equity | 709,315 | 559,007 | 441,316 | 294,662 | 784,037 | 660,285 |
(1) | During the second and third quarters of 2012, we received NOW account deposits. As of September 30, 2012, we had $678.8 million of NOW account deposits outstanding. These deposits were in excess of our operating cash requirements to fund account receivables, which resulted in a large cash balance on our balance sheet as of September 30, 2012. We anticipate this balance to decline based on historical patterns of the NOW account deposits and scheduled maturities of our deposits. See “Risk Factors —Risks Related to Our Company — Our business is dependent on several key strategic relationships, the loss of which could adversely affect our results of operations”. |
Year Ended December 31, | Nine Months Ended September 30, | Twelve Months Ended September | ||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2012 | 2011 | 30, 2012 | ||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Other financial data | ||||||||||||||||||||||||||||
Adjusted EBITDA(1) | $ | 255,493 | $ | 196,333 | $ | 160,640 | $ | 147,408 | $ | 214,177 | $ | 187,096 | $ | 282,574 |
(1) | Adjusted EBITDA is a non-GAAP measure defined as net income plus income taxes, financing interest expense and depreciation and amortization, as well as certain other supplementary adjustments set forth below. See “Use of Non-GAAP Financial Information.” Adjusted EBITDA is not a recognized term under GAAP and does not purport to be an alternative to net income as a measure of operating performance. Additionally, Adjusted EBITDA is not intended to be a measure of cash flow available for management’s discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. Adjusted EBITDA is reconciled to net income, the most closely comparable GAAP measure, as follows: |
Year Ended December 31, | Nine Months Ended September 30, | Twelve Months Ended September 30, 2012 | ||||||||||||||||||||||||||
2011 | 2010 | 2009 | 2008 | 2012 | 2011 | |||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||
Net income | $ | 133,622 | $ | 87,629 | $ | 139,659 | $ | 127,640 | $ | 67,869 | $ | 100,830 | $ | 100,661 | ||||||||||||||
Income taxes | 74,983 | 57,453 | 85,585 | 68,125 | 94,780 | 56,445 | 113,318 | |||||||||||||||||||||
Financing interest expense | 11,676 | 5,314 | 6,210 | 11,859 | 6,877 | 9,087 | 9,466 | |||||||||||||||||||||
Depreciation and amortization | 45,369 | 29,893 | 21,930 | 20,123 | 50,591 | 33,644 | 62,316 | |||||||||||||||||||||
Other non-cash charges/(income) | 715 | — | (135,886 | )(1) | 10,552 | (9,750 | ) | 875 | (9,910 | ) | ||||||||||||||||||
Non-recurring charges or expenses incurred as transaction costs in connection with permitted acquisitions | — | 5,845 | — | — | 1,970 | — | 1,970 | |||||||||||||||||||||
Unrealized losses/(gains) in connection with fuel derivative instruments | (10,872 | ) | 17,029 | 43,142 | (90,891 | ) | 1,840 | (13,785 | ) | 4,753 | ||||||||||||||||||
Non-recurring cash income or gain to extent included in consolidated net income | — | (6,830 | ) | — | — | — | — | — | ||||||||||||||||||||
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Adjusted EBITDA | $ | 255,493 | $ | 196,333 | $ | 160,640 | $ | 147,408 | $ | 214,177 | $ | 187,096 | $ | 282,574 | ||||||||||||||
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(1) | On June 26, 2009, the Company entered into a Tax Receivable Prepayment Agreement with Realogy Holdings Corp. (“Realogy”), pursuant to which the Company paid Realogy $51 million, including bank fees and legal expenses, as prepayment in full to settle the Company’s remaining obligations to Realogy under the Tax Receivable Agreement dated February 22, 2005 among the Company, Cendant Corporation and Cartus Corporation. These obligations were previously recorded at $187.5 million and this transaction resulted in a book gain to the Company of $136.5 million in the second quarter of 2009. |
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