WEX Inc. Q2 2024 10-Q Filed

TL;DR

WEX Q2 10-Q is in! Revenue details for Payment Processing, Account Servicing, and Finance Fees are out, showing performance vs. last year.

AI Summary

WEX Inc. filed its 10-Q for the period ending June 30, 2024. The filing details financial performance across its Payment Processing, Account Servicing, and Finance Fee revenue segments for the second quarter and the first half of the year, comparing them to the same periods in 2023. Specific revenue figures for these segments are provided, indicating the company's operational and financial standing.

Why It Matters

This filing provides investors and analysts with the latest financial results for WEX Inc., crucial for understanding the company's revenue trends and overall financial health in the business services sector.

Risk Assessment

Risk Level: medium — The filing contains detailed financial data and segment revenues, which are critical for assessing the company's performance and potential risks.

Key Numbers

• 2024-06-30 — Reporting Period End Date (Indicates the end of the fiscal quarter for which financial data is reported.)
• 2024-07-25 — Filing Date (The date the 10-Q was officially submitted to the SEC.)

Key Players & Entities

• WEX Inc. (company) — Filer of the 10-Q report
• 2024-06-30 (date) — End of the reporting period
• 2024-07-25 (date) — Date of filing
• Portland, ME (location) — Company's business and mailing address

FAQ

Key Financial Figures

• $0.01 — ange on which registered Common Stock, $0.01 par value WEX New York Stock Exchange
• $310.0 million — 027 in an aggregate principal amount of $310.0 million with a 6.5 percent interest rate, issue

Filing Documents

• wex-20240630.htm (10-Q) — 2428KB
• wex20240630ex311.htm (EX-31.1) — 9KB
• wex20240630ex312.htm (EX-31.2) — 9KB
• wex20240630ex321.htm (EX-32.1) — 4KB
• wex20240630ex322.htm (EX-32.2) — 4KB
• wex-20240630_g1.jpg (GRAPHIC) — 805KB
• 0001309108-24-000175.txt ( ) — 13243KB
• wex-20240630.xsd (EX-101.SCH) — 62KB
• wex-20240630_cal.xml (EX-101.CAL) — 94KB
• wex-20240630_def.xml (EX-101.DEF) — 326KB
• wex-20240630_lab.xml (EX-101.LAB) — 761KB
• wex-20240630_pre.xml (EX-101.PRE) — 546KB
• wex-20240630_htm.xml (XML) — 2214KB

—FINANCIAL INFORMATION

PART I—FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements Condensed Consolidated Statements of Operations for the Three and Six Months Ended June 3 0 , 2024 and 2023 (unaudited) 7 Condensed Consolidated Statements of Comprehensive Income for the Three and Si x Months Ended June 30 , 2024 and 2023 (unaudited) 8 Condensed Consolidated Balance Sheets as of June 30 , 2024 (unaudited) and December 31, 2023 9 Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended March 31 and J une 30 , 2024 and 2023 (unaudited) 10 Condensed Consolidated Statements of Cash Flows for the Six Months Ended June 30 , 2024 and 2023 (unaudited) 12 Notes to Condensed Consolidated Financial Statements 14

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations 37

Quantitative and Qualitative Disclosures About Market Risk

Item 3. Quantitative and Qualitative Disclosures About Market Risk 52

Controls and Procedures

Item 4. Controls and Procedures 52

—OTHER INFORMATION

PART II—OTHER INFORMATION

Legal Proceedings

Item 1. Legal Proceedings 52

Risk Factors

Item 1A. Risk Factors 53

Unregistered Sales of Equity Securities and Use of Proceeds

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds 53

Exhibits

Item 6. Exhibits 54 SIGNATURE 2 Table of Contents Unless otherwise indicated or required by the context, the terms "we," "us," "our," "WEX," or the "Company," in this Quarterly Report on Form 10–Q refers to WEX Inc. and all of its subsidiaries that are consolidated under Generally Accepted Accounting Principles in the United States. FORWARD–LOOKING STATEMENTS The Private Securities Litigation Reform Act of 1995 provides a "safe harbor" for statements that are forward-looking and are not statements of historical facts. This Quarterly Report on Form 10-Q includes forward-looking statements including, but not limited to, statements about management's plans and goals. Any statements in this Quarterly Report that are not statements of historical facts are forward-looking statements. When used in this Quarterly Report, the words "anticipate," "believe," "continue," "could," "estimate," "expect," "intend," "may," "plan," "project," "will," "positions," "confidence," and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. Forward-looking statements relate to our future plans, objectives, expectations and intentions and are not historical facts and accordingly involve known and unknown risks and uncertainties and other factors that may cause the actual results or performance to be materially different from future results or performance expressed or implied by these forward-looking statements. The following factors, among others, could cause actual results to differ materially from those contained in forward-looking statements made in this Quarterly Report and in oral statements made by our authorized officers: the impact of fluctuations in demand for fuel and the volatility and prices of fuel, including fuel spreads in the Company's international markets, and the resulting impact on the Company's margins, revenues, and net income; the effects of general economic conditions, incl

- FINANCIAL INFORMATION

PART I - FINANCIAL INFORMATION

Financial Statements

Item 1. Financial Statements. WEX Inc. Condensed Consolidated Statements of Operations (in millions, except per share data) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Revenues Payment processing revenue $ 318.4 $ 300.5 $ 620.4 $ 588.6 Account servicing revenue 168.6 152.9 341.9 313.6 Finance fee revenue 77.8 76.4 148.1 157.1 Other revenue 108.7 91.5 215.8 174.0 Total revenues 673.5 621.3 1,326.1 1,233.3 Cost of services Processing costs 163.8 149.7 332.9 295.3 Service fees 20.8 17.9 41.8 36.2 Provision for credit losses 20.6 22.7 43.0 68.1 Operating interest 25.7 19.5 49.2 32.3 Depreciation and amortization 32.8 25.2 64.0 50.4 Total cost of services 263.8 235.0 530.9 482.3 General and administrative 101.0 106.2 189.5 195.1 Sales and marketing 93.7 78.9 179.0 158.8 Depreciation and amortization 46.9 41.8 94.0 83.4 Operating income 168.1 159.4 332.6 313.7 Financing interest expense, net of financial instruments ( 59.9 ) ( 40.2 ) ( 120.2 ) ( 93.1 ) Change in fair value of contingent consideration ( 1.7 ) ( 1.2 ) ( 3.4 ) ( 3.0 ) Net foreign currency loss ( 0.4 ) ( 0.2 ) ( 13.0 ) ( 1.6 ) Income before income taxes 106.1 117.8 196.1 216.0 Income tax expense 29.1 22.5 53.4 52.7 Net income $ 77.0 $ 95.3 $ 142.7 $ 163.3 Net income per share: Basic $ 1.85 $ 2.22 $ 3.42 $ 3.80 Diluted $ 1.83 $ 2.20 $ 3.38 $ 3.76 Weighted average common shares outstanding: Basic 41.7 42.9 41.8 43.0 Diluted 42.0 43.4 42.2 43.5 See notes to the unaudited condensed consolidated financial statements. 7 Table of Contents PART I WEX Inc. Condensed Consolidated Statements of Comprehensive Income (in millions) (unaudited) Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Net income $ 77.0 $ 95.3 $ 142.7 $ 163.3 Other comprehensive (loss) income, net of tax: Unrealized loss on available-for-sale debt securities ( 9.5 ) ( 29.9 ) ( 35.2 ) ( 7.7 ) Foreign currency translation 4.8 5.5

View Full Filing

View this 10-Q filing on SEC EDGAR