Wright Express Extends Its Existing Fuel-Price Risk Management Program
SOUTH PORTLAND, Maine(BUSINESS WIRE)April 20, 2010Wright Express Corporation (NYSE: WXS) announced today that it has extended its existing fuel-price risk management program through the fourth quarter of 2011.
On April 15, 2010, the Company purchased instruments to cover its anticipated fuel-price-related earnings exposure for the second, third and fourth quarters of 2011. At this time, Wright Express has hedged 80% of its exposure through the second quarter of 2011, 53% of its third-quarter 2011 exposure and 27% of its fourth-quarter 2011 exposure. Going forward, the Company intends to hedge approximately 80% of its fuel-price-related earnings exposure in every quarter on a rolling basis.
The instruments are designed to enhance the visibility and predictability of the Companys future earnings. The program uses instruments that create a costless collar based upon both the U.S. Department of Energys weekly diesel fuel price index and NYMEX unleaded gasoline contracts. The April 15 purchase locked in a fuel price range of approximately $3.03 to $3.09 per gallon. The following table states the approximate range of the collar and percentage of fuel-price-related earnings exposure:
| Q2 | Q3 | Q4 | Q1 | Q2 | Q3 | Q4 | ||||||||||||||||||||||
| 2010 | 2010 | 2010 | 2011 | 2011 | 2011 | 2011 | ||||||||||||||||||||||
Average low end of range |
3.17 | 3.03 | 2.69 | 2.77 | 2.87 | 2.94 | 3.03 | |||||||||||||||||||||
Average top end of range |
3.23 | 3.09 | 2.75 | 2.83 | 2.93 | 3.00 | 3.09 | |||||||||||||||||||||
Approximate % locked in |
80 | % | 80 | % | 80 | % | 80 | % | 80 | % | 53 | % | 27 | % | ||||||||||||||
About Wright Express
Wright Express is a leading global provider of payment processing and information management
services. Wright Express captures and combines transaction information from its proprietary network
with specialized analytical tools and purchasing control capabilities in a suite of solutions that
enable fleets to manage their vehicles more effectively. The Companys charge cards are used by
commercial and government fleets to purchase fuel and maintenance services for approximately 4.6
million vehicles. Wright Express markets its services directly to fleets and as an outsourcing
partner for its strategic relationships and franchisees. The Companys business portfolio includes
a MasterCard-branded corporate card,TelaPoint, a provider of supply chain software solutions for
petroleum distributors and retailers, Pacific Pride, an independent fuel distributor franchisee
network, and international subsidiaries. For more information about Wright Express, please visit
www.wrightexpress.com.
This press release contains forward-looking statements, including statements regarding Wright Express Corporations: belief that it has purchased instruments to cover varying percentages of its anticipated fuel-price-related earnings exposure through the fourth quarter of 2011; intention to hedge approximately 80% of its fuel-price-related earnings exposure in every quarter, on a rolling basis; and belief that the instruments will enhance the visibility and predictability of the Companys future earnings. These forward-looking statements include a number of risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include: fuel price volatility; the Companys failure to maintain or renew key agreements; failure to expand the Companys technological capabilities and service offerings as rapidly as the Companys competitors; the actions of regulatory bodies, including bank regulators, or possible changes in banking regulations impacting the Companys industrial loan bank and the Company as the corporate parent; the uncertainties of litigation; the effects of general economics on fueling patterns and the commercial activity of fleets, as well as other risks and uncertainties identified in Item 1A of our Annual Report for the year ended December 31, 2009, filed on Form 10-K with the Securities and Exchange Commission on February 26, 2010 and the Companys other periodic and current reports. The Companys forward-looking statements and these factors do not reflect the potential future impact of any alliance, merger, acquisition or disposition. The forward-looking statements speak only as of the date of this press 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.
CONTACT: Wright Express
News media contact:
Jessica Roy, 207-523-6763
JessicaRoy@wrightexpress.com
or
Investor contact:
Steve Elder, 207-523-7769
SteveElder@wrightexpress.com
SOURCE: Wright Express Corporation