Wright Express sees 3Q profits, revenues jump

By Matt Wickenheiser, BDN Staff
Posted Nov. 02, 2011, at 9:52 a.m.

South Portland-based Wright Express saw revenues jump by 52 percent in the third quarter over the same period last year, fueled by international acquisitions and growth in existing business.

Third quarter revenue this year hit $151.9 million, up from $100.2 million a year ago, under generally accepted accounting principles (GAAP), the company reported Wednesday. Third quarter profits this year were $48.1 million, compared with $20.6 million last year.

On a non-GAAP basis, which takes into account the company’s hedging on fuel prices to mitigate volatility, Wright’s adjusted profits for the third quarter of 2011 increased 38 percent to $38.7 million, from $28.1 million a year ago.

“Our performance this quarter was driven by exceptional growth in our other payment solutions segment, as well as double-digit fleet transaction and vehicle growth. Our execution and focus over the past few years has resulted in greater diversification of our business and has built a foundation for future growth,” said Wright President and CEO Mike Dubyak.

Dubyak told the Bangor Daily News that in September 2010, Wright bought an Australian company. That company’s added performance is a good portion of Wright’s revenue growth, Dubyak said. But, he added, there’s growth in the company’s existing payment solutions sector, as well.

Year over year, the company saw an 83 percent growth in corporate payment cards for different businesses.

“That’s been a great business for us,” he noted.

The company is expanding into managing payroll cards and gift cards, as well, he said. In April, Wright acquired the assets of rapid! PayCard, a privately held Tampa, Fla., company that provides payroll debit cards, e-paystubs and e-W2s.

In the company’s core fleet program, Wright saw a 15 percent growth internationally, and 7 percent growth in North America.

The North American business is largely by taking market share away from competitors, Dubyak said. Business with the base of roughly 300,000 existing client companies in the region is flat year-over-year, he said. But Wright has been talking with some of the core customers about their forecasts, he said.

“As they look forward, they’re slightly more bullish on next year over this year,” said Dubyak.

Looking forward, for the fourth quarter of 2011, Wright Express expects revenue in the range of $135 million to $140 million. For the full year, the company expects revenue in the range of $548 million to $553 million.

Earlier this week, Wright Express was named one of Forbes magazine’s America’s 100 Best Small Companies for 2011, the fourth consecutive year the company has made the list.

Wright Express is headquartered in South Portland and has more than 850 employees in six countries. Wright trades under the symbol WXS on the New York Stock Exchange, and was trading at $45.80 Wednesday morning.

http://bangordailynews.com/2011/11/02/uncategorized/wright-express-sees-3q-profits-revenues-jump/ printed on July 31, 2014