WEX Inc. Reports Fourth Quarter and Full Year 2021 Financial Results
PORTLAND, Maine–(BUSINESS WIRE)–WEX Inc. (NYSE: WEX), a leading financial technology service provider, today reported financial results for the three months and year ended December 31, 2021.
Fourth Quarter and Full Year 2021 Financial Results
Total revenue for the fourth quarter of 2021 increased 25% to $497.5 million from $399.0 million for the fourth quarter of 2020. The $98.5 million increase in revenue in the quarter includes a $47.4 million positive impact from higher average fuel prices and foreign exchange rates.
On a GAAP basis, net loss attributable to shareholders for the fourth quarter of 2021 was $11.8 million, or $0.26 per diluted share, compared to a net loss attributable to shareholders of $234.2 million, or $5.30 per diluted share, for the same period a year ago. The Company’s adjusted net income attributable to shareholders, which is a non-GAAP measure, was $116.8 million for the fourth quarter of 2021, or $2.58 per diluted share, up 78% from $64.8 million, or $1.45 per diluted share, for the same period last year. See Exhibit 1 for a full explanation and reconciliation of adjusted net income attributable to shareholders and adjusted net income attributable to shareholders per diluted share to the comparable GAAP measures.
For the full year 2021, revenue increased 19% to $1.85 billion from $1.56 billion in 2020.Net income attributable to shareholders on a GAAP basis was breakeven per diluted share in 2021 compared to a net loss attributable to shareholders of $5.56 per diluted share in 2020. On a non-GAAP basis, adjusted net income per diluted share increased 51% to $9.14 from $6.06 in 2020.
“Overall, 2021 was one of the best years in our history, with record revenue and near record adjusted net income per share. We continued to win new customers and expand our relationships with existing partners across the WEX ecosystem, a testament to our compelling suite of solutions, which are underpinned by global scale and reliability, customer-focused innovation, and specialized focus with rich data,” said Melissa Smith, WEX’s Chair and Chief Executive Officer.
“We entered 2022 with significant momentum, underscored by strong sales and a robust open enrollment season in our health business that exceeded our expectations. At our Investor Day in March, I look forward to introducing two new members of the team, Karen Stroup, our Chief Digital Officer and Carlos Carriedo, our Chief Operating Officer, International and sharing more about our strategic progress and how we intend to unlock the benefits of fully integrated customer relationships across our entire product portfolio.”
Fourth Quarter 2021 Performance Metrics
- Total purchase volume across all segments increased 79% year over year to $25 billion.
- Payment processing transactions increased 12% to 132.9 million.
- Total fuel transactions processed increased 9% from the fourth quarter of 2020 to 161.7 million.
- Average number of vehicles serviced was 16.9 million, an increase of 7% from the fourth quarter of 2020.
- Average U.S. retail fuel price increased to $3.42 per gallon from $2.26 per gallon in the fourth quarter of 2020.
- Health and Employee Benefit Solutions’ average number of Software-as-a-Service (SaaS) accounts in the U.S. grew 12% to 16.2 million from 14.5 million for the fourth quarter of 2020.
- Travel and Corporate Solutions’ purchase volume grew 120% to $10.9 billion from $5.0 billion for the fourth quarter of 2020.
“Both fourth quarter and full year 2021 results exceeded our expectations. Full year revenue was a record high, exceeding 2019 pre-pandemic levels by more than $125 million, driven by growth in each of our segments. We ended 2021 with a great deal of momentum which demonstrates the strength of our organic business,” said Jen Kimball, WEX’s Chief Accounting Officer and Interim Chief Financial Officer. “Looking ahead to 2022, we have high expectations as we continue to drive new customer wins and deepen our existing relationships.”
Financial Guidance
The Company provides revenue guidance on a GAAP basis and earnings guidance on a non-GAAP basis, due to the uncertainty and the indeterminate amount of certain elements that are included in reported GAAP earnings.
- For the first quarter of 2022, the Company expects revenue in the range of $495 million to $505 million and adjusted net income in the range of $117 million to $122 million, or $2.55 to $2.65 per diluted share.
- For the full year 2022, the Company expects revenue in the range of $2.05 billion to $2.09 billion and adjusted net income in the range of $517 million to $536 million, or $11.20 to $11.60 per diluted share.
As previously disclosed in our 3Q 2021 earnings release, a contract change for one customer beginning in the fourth quarter of 2021 moved revenue presentation from gross to net with no impact to operating income. In the first three quarters of 2021, revenue would have been approximately $52 million lower. The full year impact of this accounting change is reflected in the 2022 guidance above. First quarter and full year 2022 guidance is based on an assumed average U.S. retail fuel prices of $3.52 and $3.55 per gallon, respectively. The fuel prices referenced above are based on the applicable NYMEX futures price from the week of January 31, 2022. Our guidance assumes approximately 48 million fully diluted shares outstanding for the full year.
The Company’s adjusted net income guidance, which is a non-GAAP measure, excludes unrealized gains and losses on financial instruments, net foreign currency gains and losses, changes in fair value of contingent consideration, acquisition-related intangible amortization, other acquisition and divestiture related items, legal settlement, stock-based compensation, other costs, gains and losses on divestitures, impairment charges, debt restructuring and debt issuance cost amortization, similar adjustments attributable to our non-controlling interests and certain tax related items. We are unable to reconcile our adjusted net income guidance to the comparable GAAP measure without unreasonable effort because of the difficulty in predicting the amounts to be adjusted, including, but not limited to, foreign currency exchange rates, unrealized gains and losses on financial instruments, acquisition and divestiture related items and adjustments to the redemption value of a non-controlling interest, which may have a significant impact on our financial results.
Additional Information
Management uses the non-GAAP measures presented within this earnings release to evaluate the Company’s performance on a comparable basis. Management believes that investors may find these measures useful for the same purposes, but cautions that they should not be considered a substitute for, or superior to, disclosure in accordance with GAAP.
To provide investors with additional insight into its operational performance, WEX has included in this earnings release in Exhibit 1, reconciliations of non-GAAP measures referenced in this earnings release; in Exhibit 2, tables illustrating the impact of foreign currency rates and fuel prices for each of our reportable segments for the three and twelve months ended December 31, 2021 and 2020; and in Exhibit 3, a table of selected non-financial metrics for the quarter ended December 31, 2021 and the four preceding quarters. The Company is also providing segment revenue for the three and twelve months ended December 31, 2021 and 2020 in Exhibit 4 and information regarding segment adjusted operating income margin and adjusted operating income margin in Exhibit 5.
Conference Call Details
In conjunction with this announcement, WEX will host a conference call today, February 10, 2022, at 10:00 a.m. (ET). As previously announced, the conference call will be webcast live on the Internet, and can be accessed, along with the accompanying slides, at the Investor Relations section of the WEX website, www.wexinc.com. The live conference call also can be accessed by dialing +1-888-510-2008 or +1-646-960-0306. The Conference ID number is 2237921. A replay of the webcast and the accompanying slides will be available on the Company’s website.
About WEX
WEX (NYSE: WEX) is a leading financial technology service provider. We provide payment solutions to businesses of all sizes across a wide spectrum of sectors, including fleet, corporate payments, travel and health. WEX has offices in 14 countries and employs approximately 5,600 people around the world. Learn more at LinkedIn, Facebook, Instagram, Twitter, and our corporate blog. For more information, visit www.wexinc.com.
Forward-Looking Statements
This earnings release contains forward-looking statements, including statements regarding: assumptions underlying the Company’s future financial performance, future operations; future growth opportunities and expectations; expectations for future revenue performance, future impacts from areas of investment, expectations for the macro environment; and, expectations for volumes. Any statements that are not statements of historical facts may be deemed to be forward-looking statements. When used in this earnings release, the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may,” “plan,” “project,” “will” and similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain such words. These forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially, including: the extent to which the coronavirus (COVID-19) pandemic and measures taken in response thereto impact the Company’s employees, business, results of operations and financial condition in excess of current expectations, particularly with respect to demand for worldwide travel; the impact of fluctuations in fuel prices and fuel spreads in the Company’s international markets, including the resulting impact on the Company’s revenues and net income; the failure to maintain or renew key customer and partner agreements and relationships, or to maintain volumes under such agreements; breaches of, or other issues with, the Company’s technology systems or those of its third-party service providers and any resulting negative impact on its reputation, liabilities or relationships with customers or merchants; the actions of regulatory bodies, including banking and securities regulators, or possible changes in banking or financial regulations impacting the Company’s industrial bank, the Company as the corporate parent or other subsidiaries or affiliates; the failure to comply with the applicable requirements of MasterCard or Visa contracts and rules; the effects of general economic conditions, including a decline in demand for fuel, travel related, services, or healthcare services, and payment and transaction processing activity; failure to expand the Company’s technological capabilities and service offerings as rapidly as the Company’s competitors; changes in interest rates and the rate of inflation; the ability to attract and retain employees; limitations on or compression of interchange fees; the impact and size of credit losses; the success of the Company’s recently announced Executive Leadership Team and strategic reorganization; the effects of the Company’s business expansion and acquisition efforts; the failure of corporate investments to result in anticipated strategic value; the failure to comply with the Treasury Regulations applicable to non-bank custodians; potential adverse changes to business or employee relationships, including those resulting from the completion of an acquisition; competitive responses to any acquisitions; uncertainty of the expected financial performance of the combined operations following completion of an acquisition; the failure to complete or successfully integrate the Company’s acquisitions or to realize anticipated synergies and cost savings from such acquisitions; unexpected costs, charges, or expenses resulting from an acquired company or business; the impact of changes to the Company’s credit standards; the impact of foreign currency exchange rates on the Company’s operations, revenue and income; the impact of the future transition from LIBOR as a global benchmark to a replacement rate; the impact of the Company’s debt instruments on the Company’s operations; the impact of leverage on the Company’s operations, results or borrowing capacity generally, and as a result of acquisitions specifically; the impact of sales or dispositions of significant amounts of the Company’s outstanding common stock into the public market, or the perception that such sales or dispositions could occur; the possible dilution to the Company’s stockholders caused by the issuance of additional shares of common stock or equity-linked securities, whether as result of the Company’s convertible notes or otherwise; the incurrence of impairment charges if the Company’s assessment of the fair value of certain of its reporting units changes; the uncertainties of litigation; as well as other risks and uncertainties identified in Item 1A of our annual report for the year ended December 31, 2020, filed on Form 10-K with the Securities and Exchange Commission on March 1, 2021 and Item 1A of our quarterly reports for the quarters ended June 30, 2021 and September 30, 2021, filed on Forms 10-Q with the Securities and Exchange Commission on August 4, 2021 and November 9, 2021, respectively. The Company’s forward-looking statements do not reflect the potential future impact of any alliance, merger, acquisition, disposition or stock repurchases. The forward-looking statements speak only as of the date of this earnings release and undue reliance should not be placed on these statements. The Company disclaims any obligation to update any forward-looking statements as a result of new information, future events or otherwise.
|
WEX INC. CONSOLIDATED STATEMENTS OF OPERATIONS (in thousands, except per share data) (unaudited) |
|||||||||||||||
|
|
Three months ended December 31, |
|
Year ended December 31, |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
Revenues |
|
|
|
|
|
|
|
||||||||
|
Payment processing revenue |
$ |
231,049 |
|
|
$ |
176,316 |
|
|
$ |
858,990 |
|
|
$ |
698,891 |
|
|
Account servicing revenue |
|
137,514 |
|
|
|
113,720 |
|
|
|
526,858 |
|
|
|
449,456 |
|
|
Finance fee revenue |
|
75,902 |
|
|
|
53,578 |
|
|
|
255,323 |
|
|
|
198,523 |
|
|
Other revenue |
|
53,073 |
|
|
|
55,376 |
|
|
|
209,371 |
|
|
|
212,999 |
|
|
Total revenues |
|
497,538 |
|
|
|
398,990 |
|
|
|
1,850,542 |
|
|
|
1,559,869 |
|
|
Cost of services |
|
|
|
|
|
|
|
||||||||
|
Processing costs |
|
135,693 |
|
|
|
111,889 |
|
|
|
482,870 |
|
|
|
419,041 |
|
|
Service fees |
|
13,653 |
|
|
|
12,954 |
|
|
|
52,804 |
|
|
|
47,289 |
|
|
Provision for credit losses |
|
12,966 |
|
|
|
11,592 |
|
|
|
45,114 |
|
|
|
78,443 |
|
|
Operating interest |
|
2,138 |
|
|
|
3,659 |
|
|
|
9,157 |
|
|
|
23,810 |
|
|
Depreciation and amortization |
|
28,293 |
|
|
|
28,477 |
|
|
|
112,164 |
|
|
|
104,592 |
|
|
Total cost of services |
|
192,743 |
|
|
|
168,571 |
|
|
|
702,109 |
|
|
|
673,175 |
|
|
General and administrative |
|
81,418 |
|
|
|
94,677 |
|
|
|
326,878 |
|
|
|
292,109 |
|
|
Sales and marketing |
|
72,901 |
|
|
|
78,566 |
|
|
|
319,078 |
|
|
|
266,684 |
|
|
Depreciation and amortization |
|
42,117 |
|
|
|
38,427 |
|
|
|
160,477 |
|
|
|
157,334 |
|
|
Legal settlement |
|
— |
|
|
|
162,500 |
|
|
|
— |
|
|
|
162,500 |
|
|
Impairment charges |
|
— |
|
|
|
53,378 |
|
|
|
— |
|
|
|
53,378 |
|
|
Loss on sale of subsidiary |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46,362 |
|
|
Operating income (loss) |
|
108,359 |
|
|
|
(197,129 |
) |
|
|
342,000 |
|
|
|
(91,673 |
) |
|
Financing interest expense |
|
(30,172 |
) |
|
|
(55,267 |
) |
|
|
(128,422 |
) |
|
|
(157,080 |
) |
|
Net foreign currency (loss) gain |
|
(964 |
) |
|
|
6,190 |
|
|
|
(12,339 |
) |
|
|
(25,783 |
) |
|
Change in fair value of contingent consideration |
|
4,800 |
|
|
|
— |
|
|
|
(40,100 |
) |
|
|
— |
|
|
Other income |
|
— |
|
|
|
491 |
|
|
|
3,617 |
|
|
|
491 |
|
|
Net unrealized gains (losses) on financial instruments |
|
19,720 |
|
|
|
5,079 |
|
|
|
39,190 |
|
|
|
(27,036 |
) |
|
Income (loss) before income taxes |
|
101,743 |
|
|
|
(240,636 |
) |
|
|
203,946 |
|
|
|
(301,081 |
) |
|
Income tax provision (benefit) |
|
50,883 |
|
|
|
(16,745 |
) |
|
|
67,807 |
|
|
|
(20,597 |
) |
|
Net income (loss) |
|
50,860 |
|
|
|
(223,891 |
) |
|
|
136,139 |
|
|
|
(280,484 |
) |
|
Less: Net (loss) income from non-controlling interests |
|
(253 |
) |
|
|
184 |
|
|
|
846 |
|
|
|
3,466 |
|
|
Net income (loss) attributable to WEX Inc. |
|
51,113 |
|
|
|
(224,075 |
) |
|
|
135,293 |
|
|
|
(283,950 |
) |
|
Change in value of redeemable non-controlling interest |
|
(62,873 |
) |
|
|
(10,125 |
) |
|
|
(135,156 |
) |
|
|
40,312 |
|
|
Net (loss) income attributable to shareholders |
$ |
(11,760 |
) |
|
$ |
(234,200 |
) |
|
$ |
137 |
|
|
$ |
(243,638 |
) |
|
|
|
|
|
|
|
|
|
||||||||
|
Net (loss) income attributable to shareholders per share: |
|
|
|
|
|
|
|
||||||||
|
Basic |
$ |
(0.26 |
) |
|
$ |
(5.30 |
) |
|
$ |
— |
|
|
$ |
(5.56 |
) |
|
Diluted |
$ |
(0.26 |
) |
|
$ |
(5.30 |
) |
|
$ |
— |
|
|
$ |
(5.56 |
) |
|
Weighted average common shares outstanding: |
|
|
|
|
|
|
|
||||||||
|
Basic |
|
44,880 |
|
|
|
44,210 |
|
|
|
44,718 |
|
|
|
43,842 |
|
|
Diluted |
|
44,880 |
|
|
|
44,210 |
|
|
|
45,312 |
|
|
|
43,842 |
|
|
WEX INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands) (unaudited) |
|||||
|
|
December 31, |
||||
|
|
2021 |
|
2020 |
||
|
Assets |
|
|
|
||
|
Cash and cash equivalents |
$ |
588,923 |
|
$ |
852,033 |
|
Restricted cash |
|
667,915 |
|
|
477,620 |
|
Accounts receivable |
|
2,891,242 |
|
|
1,993,329 |
|
Investment securities |
|
948,677 |
|
|
— |
|
Securitized accounts receivable, restricted |
|
125,186 |
|
|
93,236 |
|
Prepaid expenses and other current assets |
|
77,569 |
|
|
86,629 |
|
Total current assets |
|
5,299,512 |
|
|
3,502,847 |
|
Property, equipment and capitalized software |
|
179,531 |
|
|
188,340 |
|
Goodwill and other intangible assets |
|
4,551,353 |
|
|
4,240,150 |
|
Investment securities |
|
39,650 |
|
|
37,273 |
|
Deferred income taxes, net |
|
5,635 |
|
|
17,524 |
|
Other assets |
|
231,147 |
|
|
197,227 |
|
Total assets |
$ |
10,306,828 |
|
$ |
8,183,361 |
|
Liabilities and Stockholders’ Equity |
|
|
|
||
|
Accounts payable |
$ |
1,021,911 |
|
$ |
778,207 |
|
Accrued expenses |
|
476,971 |
|
|
362,472 |
|
Restricted cash payable |
|
668,014 |
|
|
477,620 |
|
Short-term deposits |
|
2,026,420 |
|
|
911,395 |
|
Short-term debt, net |
|
155,769 |
|
|
152,730 |
|
Other current liabilities |
|
50,614 |
|
|
58,429 |
|
Total current liabilities |
|
4,399,699 |
|
|
2,740,853 |
|
Long-term debt, net |
|
2,695,365 |
|
|
2,874,113 |
|
Long-term deposits |
|
652,214 |
|
|
148,591 |
|
Deferred income taxes, net |
|
192,965 |
|
|
220,122 |
|
Other liabilities |
|
273,706 |
|
|
164,546 |
|
Total liabilities |
|
8,213,949 |
|
|
6,148,225 |
|
|
|
|
|
||
|
Redeemable non-controlling interest |
|
254,106 |
|
|
117,219 |
|
Stockholders’ Equity |
|
|
|
||
|
Total WEX Inc. stockholders’ equity |
|
1,838,773 |
|
|
1,904,895 |
|
Non-controlling interest |
|
— |
|
|
13,022 |
|
Total stockholders’ equity |
|
1,838,773 |
|
|
1,917,917 |
|
Total liabilities and stockholders’ equity |
$ |
10,306,828 |
|
$ |
8,183,361 |
|
Exhibit 1 |
|||||||||||||||
|
Reconciliation of Non – GAAP Measures |
|||||||||||||||
|
Reconciliation of GAAP Net (Loss) Income Attributable to Shareholders to Adjusted Net Income Attributable to Shareholders |
|||||||||||||||
|
(in thousands, except per share data) (unaudited) |
|||||||||||||||
|
|
Three Months Ended December 31, |
||||||||||||||
|
|
2021 |
|
2020 |
||||||||||||
|
|
|
|
per diluted share |
|
|
|
per diluted share |
||||||||
|
Net (loss) income attributable to shareholders |
$ |
(11,760 |
) |
|
$ |
(0.26 |
) |
|
$ |
(234,200 |
) |
|
$ |
(5.30 |
) |
|
Unrealized gains on financial instruments |
|
(19,720 |
) |
|
|
(0.44 |
) |
|
|
(5,079 |
) |
|
|
(0.11 |
) |
|
Net foreign currency loss (gain) |
|
964 |
|
|
|
0.02 |
|
|
|
(6,190 |
) |
|
|
(0.14 |
) |
|
Acquisition-related intangible amortization |
|
46,981 |
|
|
|
1.05 |
|
|
|
43,297 |
|
|
|
0.98 |
|
|
Other acquisition and divestiture related items |
|
8,035 |
|
|
|
0.18 |
|
|
|
21,782 |
|
|
|
0.49 |
|
|
Legal settlement |
|
— |
|
|
|
— |
|
|
|
162,500 |
|
|
|
3.68 |
|
|
Stock-based compensation |
|
13,779 |
|
|
|
0.31 |
|
|
|
20,782 |
|
|
|
0.47 |
|
|
Other costs |
|
7,518 |
|
|
|
0.17 |
|
|
|
5,084 |
|
|
|
0.12 |
|
|
Impairment charge |
|
— |
|
|
|
— |
|
|
|
53,378 |
|
|
|
1.21 |
|
|
Debt restructuring and debt issuance cost amortization |
|
2,336 |
|
|
|
0.05 |
|
|
|
30,074 |
|
|
|
0.68 |
|
|
Change in fair value of contingent consideration |
|
(4,800 |
) |
|
|
(0.11 |
) |
|
|
— |
|
|
|
— |
|
|
ANI adjustments attributable to non-controlling interest |
|
62,176 |
|
|
|
1.39 |
|
|
|
9,191 |
|
|
|
0.21 |
|
|
Tax related items |
|
11,264 |
|
|
|
0.25 |
|
|
|
(35,788 |
) |
|
|
(0.81 |
) |
|
Dilutive impact of stock awards1 |
|
— |
|
|
|
(0.03 |
) |
|
|
— |
|
|
|
(0.03 |
) |
|
Adjusted net income attributable to shareholders |
$ |
116,773 |
|
|
$ |
2.58 |
|
|
$ |
64,831 |
|
|
$ |
1.45 |
|
|
|
Year Ended December 31, |
||||||||||||||
|
|
2021 |
|
2020 |
||||||||||||
|
|
|
|
per diluted share |
|
|
|
per diluted share |
||||||||
|
Net income (loss) attributable to shareholders |
$ |
137 |
|
|
$ |
— |
|
|
$ |
(243,638 |
) |
|
$ |
(5.56 |
) |
|
Unrealized (gains) losses on financial instruments |
|
(39,190 |
) |
|
|
(0.86 |
) |
|
|
27,036 |
|
|
|
0.62 |
|
|
Net foreign currency loss |
|
12,339 |
|
|
|
0.27 |
|
|
|
25,783 |
|
|
|
0.59 |
|
|
Acquisition-related intangible amortization |
|
181,694 |
|
|
|
4.01 |
|
|
|
171,144 |
|
|
|
3.90 |
|
|
Other acquisition and divestiture related items |
|
36,916 |
|
|
|
0.81 |
|
|
|
57,787 |
|
|
|
1.32 |
|
|
Legal settlement |
|
— |
|
|
|
— |
|
|
|
162,500 |
|
|
|
3.71 |
|
|
Stock-based compensation |
|
76,550 |
|
|
|
1.70 |
|
|
|
65,841 |
|
|
|
1.50 |
|
|
Other costs |
|
23,171 |
|
|
|
0.52 |
|
|
|
13,064 |
|
|
|
0.30 |
|
|
Loss on sale of subsidiary |
|
— |
|
|
|
— |
|
|
|
46,362 |
|
|
|
1.06 |
|
|
Impairment charge |
|
— |
|
|
|
— |
|
|
|
53,378 |
|
|
|
1.22 |
|
|
Debt restructuring and debt issuance cost amortization |
|
21,768 |
|
|
|
0.48 |
|
|
|
40,063 |
|
|
|
0.91 |
|
|
Change in fair value of contingent consideration |
|
40,100 |
|
|
|
0.88 |
|
|
|
— |
|
|
|
— |
|
|
ANI adjustments attributable to non-controlling interests |
|
132,030 |
|
|
|
2.91 |
|
|
|
(42,910 |
) |
|
|
(0.98 |
) |
|
Tax related items |
|
(71,458 |
) |
|
|
(1.58 |
) |
|
|
(108,086 |
) |
|
|
(2.47 |
) |
|
Dilutive impact of stock awards1 |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(0.06 |
) |
|
Adjusted net income attributable to shareholders |
$ |
414,057 |
|
|
$ |
9.14 |
|
|
$ |
268,324 |
|
|
$ |
6.06 |
|
1 As the Company reported net losses for the fourth quarters of 2021 and 2020 and year ended December 31, 2020, the diluted weighted average shares outstanding equal the basic weighted average shares outstanding for those periods under U.S. Generally Accepted Accounting Principles (“GAAP”). The non-GAAP adjustments described above resulted in adjusted net income attributable to shareholders (versus a loss on a GAAP basis) for the fourth quarters of 2021 and 2020 and the year ended December 31, 2020. Therefore, dilutive common stock equivalents have been included in the calculation of adjusted diluted weighted average shares outstanding to arrive at adjusted per share data.
|
Reconciliation of GAAP Operating Income to Total Segment Adjusted Operating Income and Adjusted Operating Income (in thousands) (unaudited) |
|||||||||||||||
|
|
Three Months Ended December 31, |
|
Year Ended December 31, |
||||||||||||
|
|
2021 |
|
2020 |
|
2021 |
|
2020 |
||||||||
|
Operating income |
$ |
108,359 |
|
|
$ |
(197,129 |
) |
|
$ |
342,000 |
|
|
$ |
(91,673 |
) |
|
Unallocated corporate expenses |
|
23,858 |
|
|
|
17,625 |
|
|
|
78,218 |
|
|
|
62,938 |
|
|
Acquisition-related intangible amortization |
|
46,981 |
|
|
|
43,297 |
|
|
|
181,694 |
|
|
|
171,144 |
|
|
Other acquisition and divestiture related items |
|
8,035 |
|
|
|
26,680 |
|
|
|
40,533 |
|
|
|
57,787 |
|
|
Legal settlement |
|
— |
|
|
|
162,500 |
|
|
|
— |
|
|
|
162,500 |
|
|
Loss on sale of subsidiary |
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
46,362 |
|
|
Stock-based compensation |
|
13,779 |
|
|
|
20,782 |
|
|
|
76,550 |
|
|
|
65,841 |
|
|
Other costs |
|
7,518 |
|
|
|
5,575 |
|
|
|
23,171 |
|
|
|
13,555 |
|
|
Debt restructuring costs |
|
129 |
|
|
|
10 |
|
|
|
6,185 |
|
|
|
535 |
|
|
Impairment charge |
|
— |
|
|
|
53,378 |
|
|
|
— |
|
|
|
53,378 |
|
|
Total segment adjusted operating income |
$ |
208,659 |
|
|
$ |
132,718 |
|
|
$ |
748,351 |
|
|
$ |
542,367 |
|
|
Unallocated corporate expenses |
|
(23,858 |
) |
|
|
(17,625 |
) |
|
|
(78,218 |
) |
|
|
(62,938 |
) |
|
Adjusted operating income |
$ |
184,801 |
|
|
$ |
115,093 |
|
|
$ |
670,133 |
|
|
$ |
479,429 |
|
The Company’s non-GAAP adjusted net income excludes unrealized gains and losses on financial instruments, net foreign currency gains and losses, change in fair value of contingent consideration, acquisition-related intangible amortization, other acquisition and divestiture related items, legal settlement, stock-based compensation, other costs, loss on sale of subsidiary, impairment charges, debt restructuring and debt issuance cost amortization, similar adjustments attributable to our non-controlling interests and certain tax related items.
The Company’s non-GAAP adjusted operating income excludes acquisition-related intangible amortization, other acquisition and divestiture related items, legal settlement, loss on sale of subsidiary, stock-based compensation, other costs, debt restructuring costs and impairment charges. Total segment adjusted operating income incorporates these same adjustments and further excludes unallocated corporate expenses.
Contacts
News media:
WEX Inc.
Jessica Roy, 207-523-6763
Jessica.Roy@wexinc.com
or
Investor:
WEX Inc.
Steve Elder, 207-523-7769
Steve.Elder@wexinc.com