June 24, 2018
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WEX posts 6 percent 3Q revenue increase; looks to keep growing

Contributed photo | BDN
Contributed photo | BDN
Michael Dubyak, CEO of Wright Express in South Portland.
By Whit Richardson, BDN Staff

SOUTH PORTLAND, Maine — WEX Inc., the payment processing company in South Portland formerly known as Wright Express, reported third-quarter revenue today of $161 million, a 6 percent increase from the same quarter last year.

The company predicts its year-end revenue will be between $616 million and $623 million. If on the low end of that estimate, it will represent an 11.4 percent increase from 2011 revenue of $553 million and a nearly 58 percent increase from 2010 revenue of $390 million.

However, the company’s core business segment, providing fuel cards and payment solutions for vehicle fleets, only grew by 1.4 percent, which reflects a sluggish economy, CEO Michael Dubyak said on Wednesday morning.

“But the good news is we keep diversifying and adding new opportunities for growth,” he said.

The company has made several acquisitions over the past year, including the $27.5 million purchase of U.K.-based CorporatePay, which provides corporate prepaid services to the travel industry; the nearly $22 million investment in a Brazilian company that provides payroll cards and other payment processing services for the retail, government and transportation sectors; and the $369 million purchase of Tennessee-based Fleet One.

It now employs 1,300 people worldwide, including 620 in Maine, Dubyak said.

WEX has adapted its expertise in providing payment solutions to other markets, having moved into the travel market by offering virtual payment solutions to companies like Expedia and Priceline, and targeting the health insurance market, Dubyak said.

PaySpan is a company that processes $38 billion worth of payments for medical insurance companies, Dubyak said. “If we can just get a piece of that with them — and they’re very bullish on it — we could move aggressively into the medical field.”

The recent name change to WEX reflects the company’s attempt “to reposition the brand” to reflect the fact it provides more than fleet fuel cards now, Dubyak said. Today, 27 percent of its revenue comes from non-fleet cards, whereas in 2007 that number would have been less than 10 percent, he said.

Dubyak also confirmed the company is actively looking for a new headquarters, though he said the company is committed to staying in Maine. The company is housed in three separate buildings, but would like to consolidate on one campus, Dubyak said. It might mean moving to another location or renovating its current location, he said.

“We’re looking at options and what suits our growth plans in the future,” he said.

The company’s net income on its $161 million third-quarter revenue was $14.3 million, compared to $48.1 million the same quarter last year. The drop was due to various costs associated with its Australian business and $12.8 million in losses on fuel price derivatives it uses to mitigate fluctuations in the fuel market.

The company also releases adjusted net income figures, which increased 9 percent to $42 million from $38.7 million for the same period a year ago.

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