-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, SRv7RpGknEh/DT8HNjRJn86PY3BJGqD+rNDfiem5vwX4SSB7i3b/KJvQU1k9L1yX vaPbShtod4QY8wmX2mANaw== 0000950135-07-004749.txt : 20070807 0000950135-07-004749.hdr.sgml : 20070807 20070807071453 ACCESSION NUMBER: 0000950135-07-004749 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20070807 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Other Events ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20070807 DATE AS OF CHANGE: 20070807 FILER: COMPANY DATA: COMPANY CONFORMED NAME: Wright Express CORP CENTRAL INDEX KEY: 0001309108 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-AUTOMOTIVE REPAIR, SERVICES & PARKING [7500] IRS NUMBER: 010526993 FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-32426 FILM NUMBER: 071029902 BUSINESS ADDRESS: STREET 1: 97 DARLING AVENUE CITY: SOUTH PORTLAND STATE: ME ZIP: 04106 BUSINESS PHONE: (207) 773-8171 MAIL ADDRESS: STREET 1: 97 DARLING AVENUE CITY: SOUTH PORTLAND STATE: ME ZIP: 04106 8-K 1 b66410wce8vk.htm WRIGHT EXPRESS CORPORATION e8vk
 

 
 
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) August 7, 2007 (August 7, 2007)
(WRIGHT EXPRESS LOGO)
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))
 
 

 


 

Item 2.02 Results of Operations and Financial Condition
On August 7, 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 8.01 Other Events.
On August 7, 2007, the Company issued a press release entitled “Wright Express Adds Fuel Inventory Solution with Acquisition of TelaPoint.” A copy of the press release is attached as Exhibit 99.2 and is incorporated by reference in its entirety.
Item 9.01 Financial Statements and Exhibits.
(c) Exhibits.
     
Exhibit No.   Description
99.1*
  Press release of Wright Express Corporation dated August 7, 2007
 
   
99.2*
  Press release of Wright Express Corporation dated August 7, 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: August 7, 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 August 7, 2007
EXHIBIT INDEX
     
Exhibit No.   Description
99.1*
  Press release of Wright Express Corporation dated August 7, 2007
 
   
99.2*
  Press release of Wright Express Corporation dated August 7, 2007
 
* Indicates that exhibit is filed with this report.

 

EX-99.1 2 b66410wcexv99w1.htm EX-99.1 PRESS RELEASE DATED AUGUST 7, 2007 exv99w1
 

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 Second-Quarter Financial Results
Quarterly Earnings Exceed Guidance; Revenue Grows 13%;
TelaPoint Acquisition Expands Range of Services Offered
SOUTH PORTLAND, MAINE — August 7, 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 second quarter ended June 30, 2007.
For the second quarter of 2007, total revenue increased 13% to $86.0 million from $76.2 million in the second quarter of 2006. Net income to common shareholders on a GAAP basis was $18.3 million, or $0.45 per diluted share, compared with $9.9 million, or $0.24 per share, for the comparable quarter last year. On a non-GAAP basis, the Company’s adjusted net income increased 45% to $20.5 million, or $0.50 per diluted share, from $14.1 million, or $0.34 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 second quarter of 2007, the Company’s GAAP financial results include an unrealized $4.0 million pre-tax, non-cash, mark-to-market loss on these instruments. For the second quarter of 2006, the Company reported an unrealized pre-tax, non-cash, mark-to-market loss of $7.5 million. Exhibit 1 reconciles adjusted net income for the second 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 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.
Second-Quarter 2007 Performance Metrics
    Payment processing transactions increased 16% to 53.2 million and transaction processing transactions decreased 34% to 9.9 million, primarily reflecting the conversion to payment processing of the Company’s ExxonMobil portfolio in December 2006. Total fuel transactions processed increased 3% from the second quarter of 2006 to 63.1 million
 
    Average number of vehicles serviced was approximately 4.4 million, compared with approximately 4.3 million in the second quarter of 2006.
 
    Average expenditure per payment processing transaction increased 5% to $60.10 from $57.45 for the same period last year.
 
    Average retail fuel price was $2.95 per gallon, compared with $2.86 per gallon or a 3% increase over the second quarter a year ago.

 


 

    Total MasterCard purchase volume grew 40% to $464.4 million from $332.7 million for the comparable period in 2006.
 
    Wright Express repurchased approximately 210,000 shares of its common stock at a cost of approximately $6.5 million during the second quarter of 2007.
Additional selected non-financial metrics are presented in Exhibit 2.
Management Comments
“Our financial results this quarter were strong with adjusted net income exceeding the top end of our guidance,” said Michael Dubyak, president and chief executive officer. “This also was an excellent quarter from a business standpoint, with solid demand for fleet cards and transaction volume in line with expectations, as well as continued outstanding performance in MasterCard.”
“Our direct and co-brand sales channels are doing well, and we posted another strong quarter of growth in our heavy truck segment,” Dubyak said. “In addition, sequential trends in our private label channel were positive in the second quarter, suggesting the turnaround we forecasted for this line of business is under way.”
“We expect the acquisition of TelaPoint, which we announced today, to provide Wright Express with an incremental revenue stream as well as an expansion of the range of services we offer, especially to fuel merchants,” said Dubyak. “TelaPoint’s browser-based software product transforms fuel merchants, distributors of all sizes and many commercial fleets - anyone with fuel storage tanks - into sales prospects for a Wright Express fuel inventory solution. This is an attractive, value-added complement to the fleet card relationship we have traditionally enjoyed with these key customers.”
“Looking forward, we remain confident about our prospects for the second half of the year,” Dubyak said. “Transaction volume in our core business met internal expectations this quarter and our pipeline of new business is favorable. We continue to execute successfully on our strategy to capture a larger share of total U.S. fleet spend while developing other opportunities to grow our revenue organically. The new credit facility we put in place during the quarter will give us additional flexibility for future acquisitions and to repurchase shares, while significantly reducing the cost of our debt. At the same time, as demonstrated by TelaPoint, we continue to seek opportunities for alliances, mergers or acquisitions that can accelerate our overall growth and/or enhance our strategic position.”

2


 

Financial Guidance
Wright Express Corporation is issuing financial guidance for the third quarter of 2007 and updating financial guidance for the full year 2007. The Company’s guidance excludes the impact of non-cash, mark-to-market adjustments on its fuel-price-related derivative instruments, as well as the amortization of intangibles purchased in connection with the acquisition of TelaPoint. The fuel prices referenced below are based on the applicable NYMEX futures price:
    For the third quarter of 2007, revenue in the range of $83 million to $88 million. This is based on an assumed average retail fuel price of $2.97 per gallon.
 
    Third-quarter 2007 adjusted net income, excluding unrealized gain or loss on derivative instruments and amortization of purchased intangibles, in the range of $20 million to $22 million, or $0.50 to $0.53 per diluted share, based on approximately 41 million shares outstanding.
 
    For the full year 2007, revenue in the range of $320 million to $330 million. This is based on an assumed average retail fuel price of $2.77 per gallon.
 
    Net income for the full year 2007, excluding unrealized gain or loss on derivative instruments and amortization of purchased intangibles, in the range of $74 million to $77 million, or $1.82 to $1.88 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, August 7, at 9:00 a.m. (ET) to discuss the Company’s second-quarter financial results, the TelaPoint acquisition 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) 479-1628 or (719) 457-2729. 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 4.4 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.

3


 

This press release contains forward-looking statements, including statements regarding Wright Express Corporation’s: expectation of continued improvement in total transaction volume and transaction volume in the private label channel; expectation of an incremental revenue stream and expansion in the Company’s range of services resulting from the acquisition of TelaPoint; expectation that the new credit facility will provide additional flexibility for future acquisitions, the repurchase shares and a reduction in the cost of debt; expectation of continued successful execution of the Company’s strategy to capture a larger share of total U.S. fleet spend while developing other opportunities to grow our revenue organically; and guidance for third-quarter 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; third-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 corporate transactions including alliances, mergers, acquisitions and divestitures; the risks associated with the profitability and integration of TelaPoint, Inc.’s operations; 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.

4


 

WRIGHT EXPRESS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND
COMPREHENSIVE INCOME
(in thousands, except per share data)
(unaudited)
                                 
    Three months ended     Six months ended  
    June 30,     June 30,  
    2007     2006     2007     2006  
 
Revenues
                               
Payment processing revenue
  $ 66,973     $ 57,693     $ 121,167     $ 104,649  
Transaction processing revenue
    3,652       4,343       7,127       8,553  
Account servicing revenue
    6,328       5,926       12,508       11,841  
Finance fees
    6,566       5,243       12,132       10,481  
Other
    2,454       2,959       4,861       5,278  
 
                               
 
                       
Total revenues
    85,973       76,164       157,795       140,802  
 
                               
Expenses
                               
Salary and other personnel
    15,699       15,196       31,828       29,550  
Service fees
    3,440       3,377       7,111       6,417  
Provision for credit losses
    3,043       2,302       9,306       6,220  
Technology leasing and support
    2,262       1,934       4,602       3,797  
Occupancy and equipment
    1,502       1,703       3,096       3,295  
Depreciation and amortization
    3,338       2,692       6,640       5,206  
Operating interest expense
    8,946       6,042       15,867       10,649  
Other
    5,096       4,406       9,795       8,249  
 
                               
 
                       
Total operating expenses
    43,326       37,652       88,245       73,383  
 
                               
 
                       
Operating income
    42,647       38,512       69,550       67,419  
 
                               
Financing interest expense
    (3,001 )     (3,666 )     (6,131 )     (7,394 )
Loss on extinguishment of debt
    (1,572 )         (1,572 )      
Net realized and unrealized losses on derivative instruments
    (9,639 )     (20,509 )     (20,329 )     (27,987 )
 
                               
 
                       
Income before income taxes
    28,435       14,337       41,518       32,038  
Provision for income taxes
    10,106       4,481       14,852       10,832  
 
                               
 
                       
Net income
    18,329       9,856       26,666       21,206  
 
                               
Change in net unrealized loss on available-for-sale securities, net of tax effect of $(53) and $(48) in 2007 and $(21) and $(62) in 2006
    (95 )     (55 )     (87 )     (118 )
Change in net unrealized gain on interest rate swaps, net of tax effect of $(42) and $(162) in 2007 and $(49) and $37 in 2006
    (61 )     (20 )     (234 )     48  
 
                               
 
                       
Comprehensive income
  $ 18,173     $ 9,781     $ 26,345     $ 21,136  
 
                       
 
                               
Earnings per share:
                               
Basic
  $ 0.46     $ 0.24     $ 0.66     $ 0.53  
Diluted
  $ 0.45     $ 0.24     $ 0.65     $ 0.52  
 
                               
Weighted average common shares outstanding:
                               
Basic
    39,995       40,331       40,170       40,288  
Diluted
    41,084       41,086       40,853       41,035  

5


 

WRIGHT EXPRESS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
                 
    June 30,        
    2007     December 31,  
    (unaudited)       2006  
 
Assets
               
Cash and cash equivalents
  $ 32,937     $ 35,060  
Accounts receivable (less reserve for credit losses of $9,453 in 2007 and $9,749 in 2006)
    1,134,266       802,165  
Available-for-sale securities
    7,443       8,023  
Property, equipment and capitalized software, net
    44,823       39,970  
Deferred income taxes, net
    365,956       377,276  
Intangible assets
    2,421       2,421  
Goodwill
    272,861       272,861  
Other assets
    18,385       13,239  
 
               
 
           
Total assets
  $ 1,879,092     $ 1,551,015  
 
           
 
               
Liabilities and Stockholders’ Equity
               
Accounts payable
  $ 433,184     $ 297,102  
Accrued expenses
    21,831       26,065  
Income taxes payable
          813  
Deposits
    599,751       394,699  
Borrowed federal funds
    25,350       65,396  
Revolving line-of-credit facilities
    164,600       20,000  
Term loan, net
          129,760  
Derivative instruments, at fair value
    19,106       4,524  
Other liabilities
    4,350       1,170  
Amounts due to Avis under tax receivable agreement
    407,315       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
    1,685,487       1,367,888  
 
               
Stockholders’ Equity
               
Common stock $0.01 par value; 175,000 shares authorized, 40,668 in 2007 and 40,430 in 2006 issued
    407       404  
Additional paid-in capital
    94,098       89,325  
Retained earnings
    119,928       93,262  
Other comprehensive income, net of tax:
               
Net unrealized loss on available-for-sale securities
    (185 )     (98 )
Net unrealized gain on interest rate swaps
          234  
 
               
 
           
Accumulated other comprehensive income
    (185 )     136  
Less treasury stock at cost, 699 shares in 2007 and no shares in 2006
    (20,643 )      
 
               
 
           
Total stockholders’ equity
    193,605       183,127  
 
               
 
           
Total liabilities and stockholders’ equity
  $ 1,879,092     $ 1,551,015  
 
           

6


 

WRIGHT EXPRESS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands)
(unaudited)
                 
    Six months ended  
    June 30,  
    2007     2006  
 
Cash flows from operating activities
               
Net income
  $ 26,666     $ 21,206  
Adjustments to reconcile net income to net cash used for operating activities:
               
Change in net unrealized loss on derivative instruments
    14,582       8,888  
Stock-based compensation
    2,146       1,553  
Depreciation and amortization
    7,223       5,766  
Loss on extinguishment of debt
    1,572        
Deferred taxes
    11,530       6,365  
Provision for credit losses
    9,306       6,220  
Loss on disposal and impairment of property and equipment
          5  
Changes in operating assets and liabilities:
               
Accounts receivable
    (341,407 )     (244,945 )
Other assets
    (1,995 )     1,744  
Accounts payable
    136,082       141,746  
Accrued expenses
    (4,305 )     (2,476 )
Income taxes
    (4,277 )      
Other liabilities
    308       832  
Amounts due to Avis
    (11,044 )     (9,479 )
 
               
 
           
Net cash used for operating activities
    (153,613 )     (62,575 )
 
               
Cash flows from investing activities
               
Purchases of property and equipment
    (8,621 )     (6,216 )
Purchases of available-for-sale securities
    (70 )     (66 )
Maturities of available-for-sale securities
    515       14,777  
 
               
 
           
Net cash (used for) provided by investing activities
    (8,176 )     8,495  
 
               
Cash flows from financing activities
               
Excess tax benefits from equity instrument share-based payment arrangements
    1,613       251  
Payments in lieu of issuing shares of common stock
    (1,152 )     (682 )
Proceeds from stock option exercises
    2,240       1,229  
Net increase in deposits
    205,052       76,065  
Net decrease in borrowed federal funds
    (40,046 )     (29,677 )
Net borrowings on 2007 revolving line-of-credit facility
    164,600        
Loan origination fees paid for 2007 revolving line-of-credit facility
    (998 )      
Net repayments on 2005 revolving line-of-credit facility
    (20,000 )     (5,000 )
Repayments on term loan
    (131,000 )     (16,500 )
Purchase of shares of treasury stock
    (20,643 )      
 
               
 
           
Net cash provided by financing activities
    159,666       25,686  
 
               
 
           
Net change in cash and cash equivalents
    (2,123 )     (28,394 )
Cash and cash equivalents, beginning of period
    35,060       44,994  
 
               
 
           
Cash and cash equivalents, end of period
  $ 32,937     $ 16,600  
 
           
 
               
Supplemental cash flow information:
               
Interest paid
  $ 20,309     $ 17,362  
Income taxes (received) paid
  $ 5,871     $ 925  
 
               
Significant non-cash transactions:
               
Capitalized software licensing agreement
  $ 2,872     $  

7


 

Exhibit 1
Wright Express Corporation
Reconciliation of Adjusted Net Income to GAAP Net Income
Second Quarter 2007
(in thousands)
(unaudited)
                 
    Three months ended     Three months ended  
    June 30, 2007     June 30, 2006  
Adjusted net income
  $ 20,454     $ 14,121  
Non-cash, mark-to-market adjustments on derivative instruments
    (3,991 )     (7,462 )
Tax impact of mark to market adjustments
    1,866       3,197  
     
GAAP net income
  $ 18,329     $ 9,856  
     
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.
Going forward, the Company will exclude the amortization of purchased intangibles from its adjusted net income.

8


 

Exhibit 2
Wright Express Corporation
Selected Non Financial Metrics
                                         
    Q2 2007*   Q1 2007*   Q4 2006   Q3 2006   Q2 2006
Fleet Payment Processing Revenue:
                                       
Payment processing transactions (000s)
    53,181       50,559       45,075       46,800       45,998  
Gallons per payment processing transaction
    20.3       20.3       20.6       20.2       20.1  
Payment processing gallons of fuel (000s)
    1,082,132       1,024,847       926,605       944,458       924,343  
Average fuel price
  $ 2.95       2.43       2.37       2.87       2.86  
Payment processing $ of fuel (000s)
  $ 3,196,224       2,493,781       2,194,543       2,712,120       2,642,456  
Net payment processing rate
    1.93 %     1.99 %     2.13 %     2.02 %     2.03 %
Fleet payment processing revenue (000s)
  $ 61,777       49,607       46,647       54,841       53,590  
 
                                       
MasterCard Payment Processing Revenue:
                                       
MasterCard purchase volume (000s)
  $ 464,425       385,153       332,934       365,739       332,706  
Net interchange rate
    1.12 %     1.19 %     1.23 %     1.21 %     1.23 %
MasterCard payment processing revenue (000s)
  $ 5,197       4,587       4,089       4,416       4,105  
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.
 
*   2007 results are affected by the conversion of the ExxonMobil portfolio to a payment processing relationship.

9

EX-99.2 3 b66410wcexv99w2.htm EX-99.2 PRESS RELEASE DATED AUGUST 7, 2007 exv99w2
 

Exhibit 99.2
     
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 Adds Fuel Inventory Solution with Acquisition of
TelaPoint
Transaction Expands Services Offered to Merchants, Distributors and Fleets
In Conjunction with Announcement of Second-Quarter Financial Results, Wright Express
to Discuss Transaction on Conference Call at 9:00 a.m. ET
SOUTH PORTLAND, MAINE – August 7, 2007 – Wright Express Corporation (NYSE: WXS) today announced that it has acquired privately held TelaPoint, Inc. for approximately $40 million in cash, financed through the Company’s existing credit facility. TelaPoint is a leading provider of browser-based supply chain software solutions for petroleum distributors and fuel retailers.
Founded in 1999 and based in Louisville, Kentucky, TelaPoint was the first browser-based software company to provide business-to-business applications focused exclusively on information solutions for oil companies and the petroleum distributor market. The TelaPoint application suite enables convenience stores and fuel outlets to improve the efficiency of their fuel replenishment, buying and administrative operations.
Operating on a software-as-a-service business model, TelaPoint generates the majority of its revenue on a recurring basis from monthly site fees, which creates strong visibility into future revenues. TelaPoint’s customers include more than 20,000 retail and wholesale fueling sites across the country, and the company has relationships with approximately 250 petroleum carriers.
TelaPoint is a rapidly growing and profitable business. Revenues for 2008 are forecasted to be approximately $8 million. Wright Express expects the acquisition to be slightly accretive, excluding the amortization of purchased intangibles, in the first 12 months of combined operations and have no impact on the Company’s margins.
Management Comments
“TelaPoint is an excellent strategic fit for Wright Express — an innovative company that provides us with a new product we can sell into markets we know well,” said Michael Dubyak, president and chief executive officer of Wright Express. “TelaPoint’s browser-based application suite will broaden and strengthen our portfolio of information solutions, offering us potential to diversify our revenues. At the same time, we expect TelaPoint’s products to further secure our position with merchants, distributors and fleets by adding value to their relationships with Wright Express.”

 


 

Michael Dahlem, chief executive officer of TelaPoint said, “We are delighted to be part of the Wright Express organization. We believe that our combined product offerings will create added value for the customers of both companies.”
“TelaPoint will operate as a standalone company and remain headquartered at its existing facility in Louisville,” said Dubyak. “TelaPoint has a talented workforce and management team. We expect the TelaPoint organization to maintain its record of strong growth and play a key role as we continue to diversify our revenue stream.”
Conference Call Details
Wright Express will host a conference call today, August 7, 2007, at 9:00 a.m. (ET) to discuss the Company’s second-quarter 2007 financial results and the TelaPoint acquisition. A live webcast of this conference call will be available at the “Investor Relations” section of the Company’s website (www.wrightexpress.com). The live conference call can also be accessed by dialing (800) 479-1628 or (719) 457-2729. 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 4.4 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 www.wrightexpress.com.
This press release contains forward-looking statements, including statements regarding Wright Express Corporation’s: expectation that TelaPoint is a rapidly growing and profitable business; forecasted revenues for TelaPoint in 2008; expectation that the acquisition will be slightly accretive excluding the amortization of purchased intangibles, in the first 12 months of combined operations and have no impact on Wright Express’ margins; expectation that TelaPoint’s browser-based application suite will broaden and strengthen its portfolio of information solutions and potentially diversify revenues; expectation that TelaPoint’s products secure Wright Express’ position with merchants, distributors and fleets by adding value to their relationships with Wright Express.
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; third-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 corporate transactions including alliances, mergers, acquisitions and divestitures; the risks associated with the integration and profitability of TelaPoint, Inc.’s operations; 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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