WEX Inc. (NYSE:WEX) Q4 2019 Earnings Conference Call - Final Transcript

Feb 13, 2020 • 09:00 am ET


WEX Inc. (NYSE:WEX) Q4 2019 Earnings Conference Call - Final Transcript


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Ladies and gentlemen, thank you for standing by, and welcome to the WEX Fourth Quarter 2019 Earnings Call. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Mr. Steve Elder. You may begin.

Steve Elder

Thank you, operator. Good morning, everyone. With me today is Melissa Smith, our President and CEO; and our CFO, Roberto Simon. The press release we issued earlier today and a slide deck to walk through our prepared remarks have been posted to the Investor Relations section of our website at wexinc.com. A copy of the release and the slide deck have also been included in 8-Ks we submitted to the SEC. As a reminder, we will be discussing a non-GAAP metric, specifically, adjusted net income attributable to shareholders, which we refer to as adjusted net income or ANI. Adjustments for this year's fourth quarter and full year to arrive at this metric include: unrealized gains and losses on financial instruments; net foreign currency remeasurement gains and losses; acquisition-related intangible amortization; other acquisition and divestiture-related items; stock-based compensation; restructuring and other costs; debt restructuring and debt issuance cost amortization; noncash adjustments related to our tax receivable agreement and similar adjustments attributable to noncontrolling interests; and certain tax-related items as applicable. The company provides revenue guidance on a GAAP basis and earnings guidance on a non-GAAP basis as we are unable to predict certain elements that are included in reported GAAP results.

Please see Exhibit one of the press release for an explanation and reconciliation of adjusted net income attributable to shareholders to GAAP net income attributable to shareholders. I would also like to remind you that we will discuss forward-looking statements under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those forward-looking statements as a result of various factors, including those discussed in our press release and the risk factors identified in our annual report on Form 10-K filed with the SEC on March 18, 2019, and subsequent SEC filings. While we may update forward-looking statements in the future, we disclaim any obligations to do so. You should not place undue reliance on these forward-looking statements, all of which speak only as of today.

With that, I'll turn the call over to Melissa Smith.

Melissa Smith

Good morning, everyone, and thank you for joining us today. I'm pleased to report that we had a very strong end to the year, and our performance this quarter capped another record year for WEX. We finished 2019 with strong momentum, highlighted by growth and effective execution in each of our business segments. Solid organic growth, combined with our recent strategic acquisitions, has further strengthened our foundation for sustainable growth and sets us up nicely as we enter 2020. Turning first to our quarterly performance on slide three. We delivered earnings results at the top end of our guidance range for Q4. Revenue grew 15% to $440 million compared to last year driven by another quarter of very strong growth in our Travel