WEX ends 2013 with $361.5 million of cash, increased Q4 revenue of 8%

By Lisa Kerner

Charlotte, N.C., Feb. 5 - WEX Inc. ended its fourth quarter with cash and cash equivalents of $361.5 million, compared to $197.7 million for the prior-year period.

However, the amount was down from $391 million at the end of the third quarter, said chief financial officer Steve Elder during the company's earnings conference call on Wednesday.

The subsequent decline was attributed to seasonal bank deposits, according to Elder.

At Dec. 31, WEX had $685 million on its revolving line of credit, term loan and notes, as well as a leverage ratio of 2.1 times.

Newly appointed president and chief executive officer Melissa Smith said WEX posted "strong results" for the quarter and the full year.

Fourth-quarter revenue was up 8% year over year at $182.3 million. Full-year revenue was up 15% at $717.5 million.

Net income to common shareholders on a GAAP basis was $34.5 million, or $0.88 per diluted share, compared with $29.1 million, or $0.74 per diluted share, for the fourth quarter 2012.

For the full year, net income to common shareholders on a GAAP basis was $3.82 per diluted share in 2013 compared to $2.48 per diluted share in 2012.

"As we look ahead to 2014, our priorities are to position the company for accelerated long-term growth, enhance scale across the organization and focus on further globalizing our business by making targeted investments," said Smith.

WEX expects its anticipated acquisition of ExxonMobil's Esso European card portfolio to provide the company with a significant footprint for its fleet business in Europe.

Looking ahead, WEX expects first-quarter 2014 revenue in the range of $168 million to $175 million and adjusted net income in the range of $39 million to $42 million, or $1.00 to $1.07 per diluted share.

WEX is targeting full-year 2014 revenue in the range of $751 million to $771 million and adjusted net income to be in the range of $184 million to $191 million, or $4.70 to $4.90 per diluted share.

South Portland, Maine-based WEX is a provider of corporate card payment solutions.

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