EX-99.3 4 d470565dex993.htm SELECTED HISTORICAL FINANCIAL AND OPERATING INFORMATION Selected Historical Financial and Operating Information

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   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income

    233,324        150,709        118,150        161,432        172,120        172,591        232,853   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income before income taxes

    208,605        145,082        225,244        195,765        162,635        157,275        213,965   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Income taxes

    74,983        57,453        85,585        68,125        94,780        56,445        113,318   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

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   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income attributable to WEX Inc.

  $ 136,605      $ 115,521      $ 141,216      $ 127,247      $ 75,232      $ 89,819      $ 122,018   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(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                                   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted EBITDA

   $ 255,493      $ 196,333      $ 160,640      $ 147,408      $ 214,177      $ 187,096      $ 282,574   
  

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

(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.

 

2