8-K

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934

Date of Report (Date of earliest event reported) May 2, 2007 (May 2, 2007)

WRIGHT EXPRESS CORPORATION

(Exact name of registrant as specified in its charter)

Delaware	001-32426	01-0526993
(State or other jurisdiction of	(Commission File Number)	(IRS Employer Identification No.)
incorporation)

97 Darling Avenue, South Portland, ME	04106
Address of principal executive offices	Zip Code

Registrant’s telephone number, including area code (207) 773-8171

(Former name or former address if changes since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

TABLE OF CONTENTS

EX-99.1 Press release of Wright Express Corporation dated May 2, 2007

Item 2.02 Results of Operations and Financial Condition

On May 2, 2007, we issued a press release announcing our first quarter 2007 results. A copy of the press release is attached hereto as Exhibit 99.1, which is incorporated by reference in its entirety.

The information in this item, including Exhibit 99.1, is being furnished, not filed. Accordingly, the information in this item will not be incorporated by reference into any registration statement filed by Wright Express under the Securities Act of 1933, as amended, unless specifically identified therein as being incorporated therein by reference.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits.

Exhibit No.	Description
99.1*	Press release of Wright Express Corporation dated May 2, 2007
*	Indicates that exhibit is filed with this report.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934 the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	WRIGHT EXPRESS CORPORATION
Date: May 2, 2007	By:	/s/ Melissa D. Smith
		Melissa D. Smith
		Senior Vice President, Finance and Chief Financial Officer (principal financial officer)

WRIGHT EXPRESS CORPORATION
CURRENT REPORT ON FORM 8-K
Report Dated May 2, 2007

EXHIBIT INDEX

Exhibit No.	Description
99.1*	Press release of Wright Express Corporation dated May 2, 2007
*	Indicates that exhibit is filed with this report.

EX-99.1

Exhibit 99.1

News media contact:	Investor contact:
Jessica Roy	Steve Elder
Wright Express	Wright Express
207.523.6763	207.523.7769
Jessica_Roy@wrightexpress.com	Steve_Elder@wrightexpress.com

Wright Express Reports First-Quarter Financial Results

Company Exceeds Top End of First-Quarter Financial Guidance

SOUTH PORTLAND, MAINE – May 2, 2007 — Wright Express Corporation (NYSE: WXS), a leading provider of payment processing and information management services to the U.S. commercial and government fleet industry, today reported financial results for the quarter ended March 31, 2007.

Total revenue for the first quarter of 2007 increased 11% to $71.8 million from $64.6 million for the first quarter of 2006. Net income to common shareholders on a GAAP basis for the first quarter of 2007 was $8.3 million, or $0.20 per diluted share, compared with $11.4 million, or $0.28 per share, for the comparable quarter last year. On a non-GAAP basis, the Company’s adjusted net income for the first quarter of 2007 increased 21% to $14.8 million, or $0.36 per diluted share, from $12.3 million, or $0.30 per diluted share, for the year-earlier period.

Wright Express uses fuel-price derivative instruments to mitigate financial risks associated with the variability in fuel prices. For the first quarter of 2007, the Company’s GAAP financial results include an unrealized $10.6 million pre-tax, non-cash, mark-to-market loss on these instruments. For the first quarter of 2006, the Company reported an unrealized pre-tax, non-cash, mark-to-market loss of $1.4 million. Exhibit 1 reconciles adjusted net income for the first quarters of 2007 and 2006, which has not been determined in accordance with GAAP, to net income as determined in accordance with GAAP.

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 scheduled payments on the Company’s financing debt and 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 disclosure in accordance with GAAP.

First-Quarter 2007 Performance Metrics

• Total fuel transactions processed increased 3% from the first quarter of 2006 to 59.9 million. Primarily reflecting the conversion to payment processing of the Company’s ExxonMobil portfolio, payment processing transactions increased 16% to 50.6 million, and transaction processing transactions decreased 36% to 9.4 million.

• Average number of vehicles serviced was approximately 4.3 million, compared with approximately 4.3 million in the first quarter of 2006. The comparability of this metric was affected by the termination of inactive vehicles in the private label channel.

• Average expenditure per payment processing transaction increased 1% to $49.32 from $48.63 for the same period last year.

• Average retail fuel price was $2.43 per gallon, compared with $2.41 per gallon for the first quarter a year ago.

• Total MasterCard purchase volume grew 43% to $385.2 million from $269.4 million for the comparable period in 2006.

• Wright Express repurchased approximately 489,000 shares of its common stock at a cost of approximately $14 million during the first quarter of 2007.

Additional selected non-financial metrics are presented in Exhibit 2.

Management Comments on the First Quarter

“Overall transaction volume grew 3% this quarter, in line with our expectations,” said Michael Dubyak, president and chief executive officer. “At the same time, purchase volume in our MasterCard business and the net payment processing rate in our fleet segment were higher than we expected, and operating expenses were generally consistent with our plan. As a result, first-quarter adjusted net income exceeded the top end of our guidance range. In addition, we were able to implement our share repurchase program, buying back approximately $14 million of the Company’s common stock through March 31^st.”

“Wright Express remains on track for a stronger second half of 2007,” said Dubyak. “Our front-end operations – customer acquisition and activation – continue to perform well. Although we faced some challenges on the annuity side of our business in the fourth quarter of 2006, they have diminished over the past four months. Looking forward, we expect improvement in transaction volume as we move through the year.”

Financial Guidance

Wright Express Corporation is issuing financial guidance for the second quarter of 2007 and updating financial guidance for the full year 2007. The Company’s guidance includes a $1.2 million, or $0.03 per share, non-cash charge, net of taxes, to write off previously capitalized costs for its senior credit facility, which is expected to be re-financed in the second quarter of 2007, and excludes the impact of non-cash, mark-to-market adjustments on its fuel-price-related derivative instruments. The fuel prices referenced below are based on the applicable NYMEX futures price:

• For the second quarter of 2007, revenue in the range of $78 million to $83 million. This is based on an assumed average retail fuel price of $2.81 per gallon.

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• Second-quarter 2007 net income, excluding unrealized gain or loss on derivative instruments, in the range of $16 million to $17 million, or $0.38 to $0.41 per diluted share, based on approximately 41 million shares outstanding.

• For the full year 2007, revenue in the range of $315 million to $325 million. This is based on an assumed average retail fuel price of $2.63 per gallon.

• Net income for the full year 2007, excluding unrealized gain or loss on derivative instruments, in the range of $69 million to $74 million, or $1.68 to $1.78 per diluted share, based on approximately 41 million shares outstanding.

Conference Call Details

In conjunction with this announcement, Wright Express will host a conference call today, May 2, at 5:00 p.m. (ET) to discuss the Company’s first-quarter financial results and business outlook. The conference call will be webcast live on the Internet, and can be accessed at the “Investor Relations” section of the Company’s website (www.wrightexpress.com). The live conference call can also be accessed by dialing (800) 289-0569 or (913) 981-5542. A replay of the webcast will be available on the Company’s website for approximately three months.

About Wright Express

Wright Express is a leading provider of payment processing and information management services to the U.S. commercial and government vehicle fleet industry. Wright Express provides these services for approximately 295,000 commercial and government fleets containing 4.3 million vehicles. Wright Express markets these services directly as well as through more than 125 strategic relationships, and offers a MasterCard-branded corporate card. The Company employs more than 675 people and maintains its headquarters in South Portland, Maine. For more information about Wright Express, please visit http://www.wrightexpress.com.

This press release contains forward-looking statements, including statements regarding Wright Express Corporation’s: expectation of improvement in transaction volume in 2007; anticipated refinancing of its senior credit facility and the likely financial impact; and expectations and guidance for second quarter, second-half and full-year 2007 results.

These forward-looking statements include a number of risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include: volatility in fuel prices; second-quarter and full-year 2007 fueling patterns; the effect of the Company’s fuel-price-related derivative instruments; effects of competition; the potential loss of key strategic relationships; decreased demand for fuel and other vehicle products and services and the effects of general economic conditions on the commercial activity of fleets; the Company’s ability to rapidly implement new technology and systems; potential

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corporate transactions including alliances, mergers, acquisitions and divestitures; changes in interest rates and the other risks and uncertainties included from time to time in the Company’s filings with the Securities and Exchange Commission, including the annual report on Form 10-K filed on February 28, 2007, and the Company’s other periodic and current reports. Wright Express Corporation undertakes no obligation to update these forward-looking statements at any future date or dates.

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Wright Express Corporation
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(in thousands, except per share data)
(unaudited)

	Three months ended
	March 31,
	2007			2006
Revenues
Payment processing revenue	$	54,194		$	46,956
Transaction processing revenue		3,475			4,210
Account servicing revenue		6,180			5,915
Finance fees		5,566			5,238
Other		2,407			2,319
Total revenues		71,822			64,638
Expenses
Salary and other personnel		16,129			14,354
Service fees		3,671			3,040
Provision for credit losses		6,263			3,918
Technology leasing and support		2,340			1,863
Occupancy and equipment		1,594			1,592
Depreciation and amortization		3,302			2,514
Operating interest expense		6,921			4,607
Other		4,699			3,843
Total operating expenses		44,919			35,731
Operating income		26,903			28,907
Financing interest expense		(3,130	)		(3,728	)
Net realized and unrealized losses on derivative instruments		(10,690	)		(7,478	)
Income before income taxes		13,083			17,701
Provision for income taxes		4,746			6,351
Net income		8,337			11,350
Change in net unrealized loss on available-for-sale securities, net of tax effect of $5 in 2007 and $(41) in 2006		8			(63	)
Change in net unrealized gain on interest rate swaps, net of tax effect of $(120) in 2007 and $86 in 2006		(173	)		68
Comprehensive income	$	8,172		$	11,355
Earnings per share:
Basic	$	0.21		$	0.28
Diluted	$	0.20		$	0.28
Weighted average common shares outstanding:
Basic		40,347			40,245
Diluted		41,069			40,983

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Wright Express Corporation
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)

	March 31, 2007			December 31,
	(unaudited)			2006
Assets
Cash and cash equivalents	$	20,108		$	35,060
Accounts receivable (less reserve for credit losses of $10,125 in 2007 and $9,749 in 2006)		911,785			802,165
Available-for-sale securities		7,766			8,023
Property, equipment and capitalized software, net		43,506			39,970
Deferred income taxes, net		371,654			377,276
Intangible assets		2,421			2,421
Goodwill		272,861			272,861
Other assets		13,663			13,239
Total assets	$	1,643,764		$	1,551,015
Liabilities and Stockholders’ Equity
Accounts payable	$	353,359		$	297,102
Accrued expenses		18,877			26,065
Income taxes payable		—			813
Deposits		387,801			394,699
Borrowed federal funds		94,244			65,396
Revolving line-of-credit facility		45,000			20,000
Term loan, net		119,115			129,760
Derivative instruments, at fair value		15,115			4,524
Other liabilities		4,633			1,170
Amounts due to Avis under tax receivable agreement		416,743			418,359
Preferred stock; 10,000 shares authorized:
Series A non-voting convertible, redeemable preferred stock; 0.1 shares issued and outstanding		10,000			10,000
Total liabilities		1,464,887			1,367,888
Commitments and contingencies
Stockholders’ Equity
Common stock $0.01 par value; 175,000 shares authorized, 40,557 in 2007 and 40,430 in 2006 issued.		406			404
Additional paid-in capital		91,059			89,325
Retained earnings		101,599			93,262
Other comprehensive income, net of tax:
Net unrealized loss on available-for-sale securities		(90	)		(98	)
Net unrealized gain on interest rate swaps		61			234
Accumulated other comprehensive income		(29	)		136
Less treasury stock at cost, 489 shares in 2007 and no shares in 2006		(14,158	)		—
Total stockholders’ equity		178,877			183,127
Total liabilities and stockholders’ equity	$	1,643,764		$	1,551,015

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Wright Express Corporation
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)

	Three months ended
	March 31,
	2007			2006
Cash flows from operating activities
Net income	$	8,337		$	11,350
Adjustments to reconcile net income to net cash (used for) provided by operating activities:
Change in net unrealized loss on derivative instruments		10,591			1,426
Stock-based compensation		1,001			707
Depreciation and amortization		3,742			2,804
Deferred taxes		5,737			5,556
Provision for credit losses		6,263			3,918
Loss on disposal and impairment of property and equipment		—			5
Changes in operating assets and liabilities:
Accounts receivable		(115,883	)		(78,612	)
Other assets		(150	)		351
Accounts payable		56,257			69,317
Accrued expenses		(7,251	)		(4,759	)
Income taxes		(1,465	)		—
Other liabilities		623			873
Amounts due to Avis		(1,616	)		—
Net cash (used for) provided by operating activities		(33,814	)		12,936
Cash flows from investing activities
Purchases of property and equipment		(3,998	)		(2,655	)
Purchases of available-for-sale securities		(35	)		(33	)
Maturities of available-for-sale securities		305			14,623
Net cash (used for) provided by investing activities		(3,728	)		11,935
Cash flows from financing activities
Excess tax benefits from equity instrument share-based payment arrangements		843			162
Payments in lieu of issuing shares of common stock		(809	)		(682	)
Proceeds from stock option exercises		764			483
Net decrease in deposits		(6,898	)		(53,896	)
Net increase in borrowed federal funds		28,848			9,677
Net borrowings (repayments) on revolving line of credit		25,000			(1,000	)
Repayments on term loan		(11,000	)		(5,500	)
Purchase of shares of treasury stock		(14,158	)		—
Net cash provided by (used for) financing activities		22,590			(50,756	)
Net change in cash and cash equivalents		(14,952	)		(25,885	)
Cash and cash equivalents, beginning of period		35,060			44,994
Cash and cash equivalents, end of period	$	20,108		$	19,109
Supplemental cash flow information:
Interest paid	$	9,636		$	8,584
Income taxes (received) paid	$	(368	)	$	380
Significant non-cash transactions:
Capitalized software licensing agreement	$	2,840			—

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Exhibit 1

Wright Express Corporation
Reconciliation of Adjusted Net Income to GAAP Net Income
First Quarter 2007

(in thousands)
(unaudited)

	Three months ended			Three months ended
	March 31, 2007			March 31, 2006
Adjusted net income	$	14,797		$	12,266
Non-cash, mark-to-market adjustments on derivative instruments		(10,591	)		(1,426	)
Tax impact of unrealized losses		4,131			510
GAAP net income	$	8,337		$	11,350

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 derivative instruments. 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 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; and

• 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.

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.

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Exhibit 2

Wright Express Corporation
Selected Non Financial Metrics

	Q1 2007*			Q4 2006			Q3 2006			Q2 2006			Q1 2006
Fleet Payment Processing Revenue:
Payment processing transactions (000’s)		50,559			45,075			46,800			45,998			43,459
Gallons per payment processing transaction		20.3			20.6			20.2			20.1			20.2
Payment processing gallons of fuel (000’s)		1,024,847			926,605			944,458			924,343			876,917
Average fuel price		2.43		$	2.37			2.87			2.86			2.41
Payment processing $ of fuel (000’s)		2,493,781		$	2,194,543			2,712,120			2,642,456			2,113,614
Net payment processing rate		1.99	%		2.13	%		2.02	%		2.03	%		2.06	%
Fleet payment processing revenue (000’s)		49,607		$	46,647			54,841			53,590			43,597
MasterCard Payment Processing Revenue:
MasterCard purchase volume (000’s)		385,153		$	332,934			365,739			332,706			269,361
Net interchange rate		1.19	%		1.23	%		1.21	%		1.23	%		1.25	%
MasterCard payment processing revenue (000’s)		4,587		$	4,089			4,416			4,105			3,357

Definitions:

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.

MasterCard purchase volume represents the total dollar value of all transactions that use a Wright Express MasterCard branded product.

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.

* Q1 2007 results are affected by the conversion of the ExxonMobil portfolio to a payment processing relationship.

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