SOUTH PORTLAND, Maine--(BUSINESS WIRE)-- WEX Inc. (NYSE: WEX), a leading provider of corporate payment solutions, today reported financial results for the three months and year ended December 31, 2017.

Fourth Quarter and Full Year 2017 Financial Results

Total revenue for the fourth quarter of 2017 increased 14% year-over-year to $331.3 million as compared with $290.8 million for the fourth quarter of 2016. Net earnings attributable to shareholders on a GAAP basis were $79.8 million, or $1.85 per diluted share, compared with $5.3 million, or $0.12 per diluted share, for the fourth quarter of 2016.

The Company's adjusted net income attributable to shareholders, which is a non-GAAP measure, increased 17% to $64.5 million for the fourth quarter of 2017 from $55.2 million for the same period a year ago. Adjusted net income for the fourth quarter of 2017 was $1.49 compared to $1.28 per diluted share for the same period a year ago. See Exhibit 1 for a full 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 2017, revenue increased 23% to $1.25 billion from $1.02 billion in 2016. Net earnings attributable to shareholders on a GAAP basis were $3.72 per diluted share in 2017 compared to $1.48 per diluted share in 2016. On a non-GAAP basis, adjusted net income attributable to shareholders increased 17% to $5.41 per diluted share from $4.62 per diluted share in 2016.

"We are extremely pleased by our fourth quarter and fiscal year performance, with positive contributions from all three of our segments driving 2017 revenues to record levels,” said Melissa Smith, WEX's president and chief executive officer. “Our relentless approach to executing on our strategic priorities continues to deliver outstanding results and position us for long-term growth.”

Smith continued, “In 2017, we continued to bring new, compelling products to the global marketplace through a deep technical integration with our customers. Our business is more diverse and innovative than ever before, and we are well situated to enhance scalability and capture market share as we head into 2018.”

Fourth Quarter 2017 Performance Metrics

• Average number of vehicles serviced was approximately 11.3 million, an increase of 8% from the fourth quarter of 2016;
• Total fuel transactions processed increased 6% from the fourth quarter of 2016 to 130.8 million. Payment processing transactions increased 9% to 108.8 million;
• U.S. retail fuel price increased 17% to $2.68 per gallon from $2.30 per gallon in the fourth quarter of 2016;
• Travel and Corporate Solutions purchase volume grew 17% to $7.4 billion, from $6.4 billion for the fourth quarter of 2016; and
• Health and Employee Benefits Solutions average number of SaaS accounts in the US grew 29% to 9.8 million from 7.6 million for the fourth quarter of 2016.

Financial Guidance and Assumptions

The Company provides revenue guidance on a GAAP basis and earnings guidance on a non-GAAP basis, due to the uncertainty and indeterminate amount of certain elements that are included in reported GAAP earnings.

• For the first quarter of 2018, WEX expects revenue in the range of $333 million to $343 million and adjusted net income in the range of $72 million to $75 million, or $1.66 to $1.74 per diluted share.
• For the full year 2018, the Company expects revenue in the range of $1.40 billion to $1.44 billion and adjusted net income in the range of $315 million to $332 million, or $7.30 to $7.70 per diluted share.

"Our fourth quarter and fiscal year outperformance reflects our ability to grow organically and leverage our strategic investments. The foundation we have built has never been stronger and will continue to drive better execution as we look to capitalize on additional growth opportunities in the years ahead." said Roberto Simon, WEX's chief financial officer.

First quarter and full year 2018 guidance is based on an assumed average U.S. retail fuel price of $2.70 and $2.65 per gallon, respectively. The fuel prices referenced above are based on the applicable NYMEX futures price. The Company's guidance also assumes that fleet credit loss for first quarter will be in the range of 12 to 17 basis points and the full year will be in the range of 11 to 16 basis points. Our guidance assumes approximately 43 million shares outstanding for the year.

The Company's adjusted net income guidance, which is a non-GAAP measure, excludes unrealized gains and losses on derivative instruments, net foreign currency remeasurement gains and losses and related derivatives, acquisition-related ticking fees, acquisition related intangible amortization, other acquisition and divestiture related items, stock-based compensation, restructuring and other costs, impairment charges, gains or losses on divestitures a one-time contract renegotiation cost, debt restructuring and debt issuance cost amortization, non-cash adjustments related to tax receivable agreement, regulatory reserves, similar adjustments attributed to our non-controlling interest 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 derivative instruments, and acquisition and divestiture related items, which may have a significant impact on our financial results.

Additional Information

Management uses the non-GAAP measures presented within this news 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.

WEX historically used fuel-price derivative instruments to mitigate financial risks associated with the variability in fuel prices in North America. Starting with the second quarter of 2016, there are no longer any fuel price related derivatives outstanding.

To provide investors with additional insight into its operational performance, WEX has included in this news release in Exhibit 2, a table illustrating the impact of foreign currency translations and fuel prices for each of our operating segments for the three and twelve months ended December 31, 2017 and 2016, and in Exhibit 3, a table of selected non-financial metrics for the five quarters ended December 31, 2017. The Company is also providing selected segment revenue information for the three and twelve months ended December 31, 2017 and 2016 in Exhibit 4.

Conference Call Details

In conjunction with this announcement, WEX will host a conference call today, February 21, 2018, at 9:00 a.m. (ET). As previously announced, the conference call will be webcast live on the Internet, and can be accessed, along with the accompanying investor presentation, at the Investor Relations section of the WEX website, http://www.wexinc.com. The live conference call also can be accessed by dialing (866) 334-7066 or (973) 935-8463. The Conference ID number is 5389608. A replay of the webcast along with the accompanying investor presentation will be available on the Company's website.

About WEX Inc.

WEX Inc. (NYSE: WEX) is a leading provider of corporate payment solutions. From its roots in fleet card payments beginning in 1983, WEX has expanded the scope of its business into a multi-channel provider of corporate payment solutions representing 11.3 million vehicles and offering exceptional payment security and control across a wide spectrum of business sectors. WEX serves a global set of customers and partners through its operations around the world, with offices in the United States, Australia, New Zealand, Brazil, the United Kingdom, Italy, France, Germany, Norway, and Singapore. WEX and its subsidiaries employ more than 3,300 associates. The Company has been publicly traded since 2005, and is listed on the New York Stock Exchange under the ticker symbol “WEX.” For more information, visit www.wexinc.com and follow WEX on Twitter at @WEXIncNews.

Forward-Looking Statements

This news release contains forward-looking statements, including statements regarding: financial guidance; assumptions underlying the Company's financial guidance; and, management’s expectations for future growth opportunities, scalability and market expansion. Any statements that are not statements of historical facts may be deemed to be forward-looking statements. When used in this news release, the words "may," "could," "anticipate," "plan," "continue," "project," "intend," "estimate," "believe," "expect" 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 effects of general economic conditions on fueling patterns as well as payment and transaction processing activity; the impact of foreign currency exchange rates on the Company’s operations, revenue and income; changes in interest rates; the impact of fluctuations in fuel prices; the effects of the Company’s business expansion and acquisition efforts; 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 ability to successfully integrate the Company's acquisitions; the ability to realize anticipated synergies and cost savings; unexpected costs, charges or expenses resulting from an acquisition; the Company's failure to successfully operate and expand ExxonMobil's European and Asian commercial fuel card programs; the failure of corporate investments to result in anticipated strategic value; the impact and size of credit losses; the impact of changes to the Company's credit standards; breaches of the Company’s technology systems or those of our third-party service providers and any resulting negative impact on our reputation, liabilities or relationships with customers or merchants; the Company’s failure to maintain or renew key agreements; failure to expand the Company’s technological capabilities and service offerings as rapidly as the Company’s competitors; failure to successfully implement the Company's information technology strategies and capabilities in connection with its technology outsourcing and insourcing arrangements and any resulting cost associated with that failure; 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 impact of the Company’s outstanding notes on its operations; the impact of increased leverage on the Company's operations, results or borrowing capacity generally, and as a result of acquisitions specifically; the incurrence of impairment charges if our assessment of the fair value of certain of our 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, 2016, filed on Form 10-K with the Securities and Exchange Commission on March 6, 2017 and our quarterly report on Form 10-Q for the three months ended March 31, 2017 filed with the Securities and Exchange Commission on May 8, 2017. 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
INCOME
(in thousands, except per share data)
(unaudited)
				Three months ended December 31,											Year ended December 31,
				2017					2016						2017					2016
Revenues
Payment processing revenue				$	145,732				$	137,300					$	569,166				$	520,619
Account servicing revenue				78,032					60,242						276,570					211,012
Finance fee revenue				51,246					46,592						187,582					138,940
Other revenue				56,295					46,706						217,230					147,889
Total revenues				331,305					290,840						1,250,548					1,018,460
Expenses
Salary and other personnel				101,727					79,521						363,444					286,298
Restructuring				340					(140		)				7,139					7,486
Service fees				33,831					36,955						149,137					173,052
Provision for credit losses				13,221					13,498						61,148					33,348
Technology leasing and support				11,934					13,077						52,179					47,602
Occupancy and equipment				8,377					6,723						27,729					25,820
Depreciation and amortization				53,296					50,270						203,724					141,651
Operating interest expense				7,788					6,897						24,482					12,386
Cost of hardware and equipment				1,121					693						4,314					3,122
Impairment charges and asset write-offs				27,996					—						44,171					—
Gain on divestiture				(20,958		)			—						(20,958		)			—
Other				25,418					35,548						94,769					92,567
Total operating expenses				264,091					243,042						1,011,278					823,332
Operating income				67,214					47,798						239,270					195,128
Financing interest expense				(25,618		)			(26,378		)				(107,067		)			(113,418		)
Net foreign currency (loss) gain				(3,659		)			(24,898		)				29,919					(7,665		)
Net unrealized gains on interest rate swap agreements				2,163					12,908						1,314					12,908
Net realized and unrealized gains on fuel price derivatives				—					—						—					711
Non-cash adjustments related to tax receivable agreement				15,259					(395		)				15,259					(563		)
Income before income taxes				55,359					9,035						178,695					87,101
Income taxes				(24,235		)			5,895						19,525					29,625
Net income				79,594					3,140						159,170					57,476
Less: Net loss from non-controlling interest				(210		)			(2,148		)				(1,096		)			(3,161		)
Net earnings attributable to shareholders				$	79,804				$	5,288					$	160,266				$	60,637
Net earnings attributable to shareholders per share:
Basic				$	1.86				$	0.12					$	3.73				$	1.49
Diluted				$	1.85				$	0.12					$	3.72				$	1.48
Weighted average common shares outstanding:
Basic				43,020					42,841						42,977					40,809
Diluted				43,158					43,072						43,105					40,914

WEX INC.
CONSOLIDATED BALANCE SHEETS
(in thousands, except per share data)
(unaudited)
				December 31,
				2017					2016
Assets
Cash and cash equivalents				$	508,072				$	190,930
Accounts receivable (net of allowances of $30,207 in 2017 and $21,454 in 2016)				2,527,840					2,054,701
Securitized accounts receivable, restricted				150,235					97,417
Income taxes receivable				—					10,765
Available-for-sale securities				23,358					23,525
Property, equipment and capitalized software (net of accumulated depreciation of $264,928 in2017 and $228,336 in 2016)				163,908					167,278
Deferred income taxes, net				7,752					6,934
Goodwill				1,876,132					1,838,441
Other intangible assets (net of accumulated amortization of $392,827 in 2017 and $254,142 in2016)				1,154,047					1,265,468
Other assets				327,831					341,638
Total assets				$	6,739,175				$	5,997,097
Liabilities and Stockholders’ Equity
Accounts payable				$	811,362				$	617,118
Accrued expenses				323,222					331,579
Income taxes payable				1,076					—
Deposits				1,293,854					1,118,823
Securitized debt				126,901					84,323
Revolving line-of-credit facility and term loans, net				1,707,064					1,599,291
Deferred income taxes, net				119,283					152,906
Notes outstanding, net				396,269					395,534
Other debt				194,737					125,755
Amounts due under tax receivable agreement				20,273					47,302
Other liabilities				24,576					18,719
Total liabilities				5,018,617					4,491,350
Commitments and contingencies
Stockholders’ Equity
Common stock $0.01 par value; 175,000 shares authorized; 47,352 shares issued in 2017 and 47,173in 2016; 43,022 shares outstanding in 2017 and 42,841 in 2016				473					472
Additional paid-in capital				569,319					547,627
Retained earnings				1,404,683					1,244,271
Accumulated other comprehensive loss				(90,795		)			(122,839		)
Treasury stock at cost; 4,428 shares in 2017 and 2016				(172,342		)			(172,342		)
Total WEX Inc. stockholders' equity				1,711,338					1,497,189
Non-controlling interest				9,220					8,558
Total stockholders’ equity				1,720,558					1,505,747
Total liabilities and stockholders’ equity				$	6,739,175				$	5,997,097

Exhibit 1
Reconciliation of GAAP Net Earnings Attributable to Shareholders to Adjusted Net Income Attributable to
Shareholders
(in thousands, except per share data)
(unaudited)
				Three months ended December 31,
				2017												2016
										per dilutedshare												per dilutedshare
Net earnings attributable to shareholders				$	79,804					$	1.85					$	5,288					$	0.12
Unrealized gains on derivative instruments				(2,163			)			(0.05			)			(12,908			)			(0.30			)
Net foreign currency remeasurement loss				3,659						0.08						24,898						0.58
Acquisition-related intangible amortization				39,207						0.91						38,763						0.90
Other acquisition and divestiture related items				1,620						0.04						1,185						0.03
Stock-based compensation				8,133						0.19						5,430						0.13
Restructuring and other costs				960						0.02						2,306						0.05
Impairment charges and asset write-offs				27,996						0.65						—						—
Gain on divestiture				(20,958			)			(0.49			)			—						—
Vendor settlement				—						—						15,500						0.36
Debt restructuring and debt issuance cost amortization				2,069						0.05						2,024						0.05
Non-cash adjustments related to tax receivable agreement				(15,259			)			(0.35			)			395						0.01
ANI adjustments attributable to non-controlling interest				(401			)			(0.01			)			(1,383			)			(0.03			)
Tax related items				(60,196			)			(1.39			)			(26,329			)			(0.61			)
Adjusted net income attributable to shareholders				$	64,471					$	1.49					$	55,169					$	1.28
			Year ended December 31,
			2017										2016
								per dilutedshare												per dilutedshare
Net earnings attributable to shareholders			$	160,266				$		3.72			$			60,637				$		1.48
Unrealized gains on derivative instruments			(1,314			)		(0.03				)	(7,901					)		(0.19				)
Net foreign currency remeasurement (gain) loss			(29,919			)		(0.69				)	7,665							0.19
Acquisition-related ticking fees			—					—					30,045							0.73
Acquisition-related intangible amortization			153,810					3.57					97,829							2.39
Other acquisition and divestiture related items			5,000					0.12					20,879							0.51
Stock-based compensation			30,487					0.71					19,742							0.48
Restructuring and other costs			11,129					0.26					13,995							0.34
Impairment charges and asset write-offs			44,171					1.02					—							—
Gain on divestiture			(20,958			)		(0.49				)	—							—
Vendor settlement			—					—					15,500							0.38
Debt restructuring and debt issuance cost amortization			10,519					0.24					12,673							0.31
Non-cash adjustments related to tax receivable agreement			(15,259			)		(0.35				)	563							0.01
ANI adjustments attributable to non-controlling interests			(1,563			)		(0.04				)	(2,583					)		(0.06				)
Tax related items			(113,327			)		(2.63				)	(79,834					)		(1.95				)
Adjusted net income attributable to shareholders			$	233,042				$		5.41			$			189,210				$		4.62

The Company's non-GAAP adjusted net income excludes unrealized gains and losses on derivatives, net foreign currency remeasurement gains and losses, acquisition-related ticking fees, acquisition-related intangible amortization, other acquisition and divestiture related items, stock-based compensation, restructuring and other costs, gain on divestiture, a one time vendor settlement, debt restructuring and debt issuance cost amortization, non-cash adjustments related to tax receivable agreement, similar adjustments attributed to our non-controlling interest and certain tax related items. In addition, for the three months and year ended December 31, 2017, we have excluded certain impairment charges and asset write-offs as described below.

Although adjusted net income is not calculated in accordance with generally accepted accounting principles (“GAAP”), this non-GAAP measure is integral to the Company's reporting and planning processes and the chief operating decision maker of the Company uses adjusted operating income to allocate resources among our operating segments The Company considers this measure integral because it excludes specified items that the Company's management excludes in evaluating the Company's performance. Specifically, in addition to evaluating the Company's performance on a GAAP basis, management evaluates the Company's performance on a basis that excludes the above items because:

• Exclusion of the non-cash, mark-to-market adjustments on derivative instruments, including fuel price related derivatives and interest rate swap agreements, helps management identify and assess trends in the Company's underlying business that might otherwise be obscured due to quarterly non-cash earnings fluctuations associated with these derivative contracts.
• Net foreign currency gains and losses primarily result from the remeasurement to functional currency of cash, receivable and payable balances, certain intercompany notes denominated in foreign currencies and any gain or loss on foreign currency hedges relating to these items. The exclusion of these items helps management compare changes in operating results between periods that might otherwise be obscured due to currency fluctuations.
• The Company considers certain acquisition-related costs, including certain financing costs, ticking fees, investment banking fees, warranty and indemnity insurance, certain integration related expenses and amortization of acquired intangibles, as well as gains and losses from divestitures to be unpredictable, dependent on factors that may be outside of our control and unrelated to the continuing operations of the acquired or divested business or the Company. During the year ended December 31, 2017, the Company determined that our Telapoint business did not align with the long-term strategy of our core Fleet business and as result sold the net assets of the business. In prior periods not reflected above, the Company has adjusted for goodwill impairments and acquisition related asset impairments. In addition, the size and complexity of an acquisition, which often drives the magnitude of acquisition-related costs, may not be indicative of such future costs. The Company believes that excluding acquisition-related costs and gains or losses of divestitures facilitates the comparison of our financial results to the Company's historical operating results and to other companies in our industry.
• Stock-based compensation is different from other forms of compensation, as it is a non-cash expense. For example, a cash salary generally has a fixed and unvarying cash cost. In contrast, the expense associated with an equity-based award is generally unrelated to the amount of cash ultimately received by the employee, and the cost to the Company is based on a stock-based compensation valuation methodology and underlying assumptions that may vary over time.
• Restructuring and other costs are related to employee termination benefits from certain identified initiatives to further streamline the business, improve the Company's efficiency, create synergies and to globalize the Company's operations, all with an objective to improve scale and increase profitability going forward. We exclude these items when evaluating our continuing business performance as such items are not consistently occurring and do not reflect expected future operating expense, nor provide insight into the fundamentals of current or past operations of our business.
• Impairment charges and asset write-offs represent non-cash asset write-offs related to the following:
  • Impairment of certain prepaid services following a strategic decision to in-source certain technology functions.
  • Impairments of certain payment processing software following the acquisition of AOC and as part of our ongoing platform consolidation strategy, designed to ensure we continue to deliver superior technology to our customers.
  • These charges do not reflect recurring costs that are relevant to our continuing operations. The Company believes that excluding these nonrecurring expenses facilitates the comparison of our financial results to the Company's historical operating results and to other companies in our industry.
• Vendor settlement represents a payment made in 2016 in exchange for the release of potential claims related to insourcing certain technology, and does not reflect recurring costs that would be relevant to the continuing operations of the Company. The Company believes that excluding this nonrecurring expense facilitates the comparison of our financial results to the Company's historical operating results and to other companies in our industry.
• Debt restructuring and debt issuance cost amortization are non-cash items that are unrelated to the continuing operations of the Company. Debt restructuring costs are not consistently occurring and do not reflect expected future operating expense, nor provide insight into the fundamentals of current or past operations of our business. In addition, since debt issuance cost amortization is dependent upon the financing method which can vary widely company to company, we believe that excluding these costs helps to facilitate comparison to historical results as well as to other companies within our industry.
• The adjustments attributable to non-controlling interests, including adjustments to the redemption value of a non-controlling interest, and the non-cash adjustments related to tax receivable agreement have no significant impact on the ongoing operations of the business.
• The tax related items are the difference between the Company’s U.S. GAAP tax provision and a pro forma tax provision based upon the Company’s adjusted net income before taxes as well as the impact from certain discrete tax items including various impacts from the tax reform act passed in December 2017. The methodology utilized for calculating the Company’s adjusted net income tax provision is the same methodology utilized in calculating the Company’s U.S. GAAP tax provision.

For the same reasons, WEX believes that adjusted net income may also be useful to investors as one means of evaluating the Company's performance. However, because adjusted net income is a non-GAAP measure, it should not be considered as a substitute for, or superior to, net income, operating income or cash flows from operating activities as determined in accordance with GAAP. In addition, adjusted net income as used by WEX may not be comparable to similarly titled measures employed by other companies.

The table below shows the impact of certain macro factors on reported revenue:

Exhibit 2
Segment Revenue Results
(in thousands)
(unaudited)
				Fleet Solutions									Travel and Corporate Solutions								Health and Employee Benefit Solutions								Total WEX Inc.
				Three months ended December 31,
				2017					2016				2017				2016				2017				2016				2017				2016
Reported revenue				$	219,761				192,269				$60,308				$53,454				$51,236				$45,117				$331,305				$	290,840
FX impact(favorable) /unfavorable				(1,935		)			—				(1,022	)			—				(156	)			—				(3,113	)			—
PPG impact(favorable) /unfavorable				(11,614		)			—				—				—				—				—				(11,614	)			—
				Year ended December 31,
				2017					2016				2017				2016				2017				2016				2017				2016
Reported revenue				$	822,966				642,061				$224,047				$215,247				$203,535				$161,152				$1,250,548				$	1,018,460
FX impact(favorable) /unfavorable				(2,619		)			—				433				—				(2,969	)			—				(5,155	)			—
PPG impact(favorable) /unfavorable				(43,212		)			—				—				—				—				—				(43,212	)			—

To determine the impact of foreign exchange translation (“FX”) on revenue, revenue from entities whose functional currency is not denominated in U.S. dollars, as well as revenue from purchase volume transacted in non-US denominated currencies, were translated using the weighted average exchange rates for the same period in the prior year.

To determine the impact of price per gallon of fuel (“PPG”) on revenue, revenue variable to changes in fuel prices was calculated based on the average retail price of fuel for the same period in the prior year for the portion of our business that earns revenue based on a percentage of fuel spend. For the portions of our business that earn revenue based on margin spreads, revenue was calculated utilizing the comparable margin from the prior year.

The table below shows the impact of certain macro factors on adjusted net income:

Segment Estimated Earnings Impact
(in thousands)
(unaudited)
				Fleet Solutions										Travel and Corporate Solutions										Health and Employee Benefit Solutions
				Three months ended December 31,
				2017					2016					2017					2016					2017					2016
FX impact (favorable) / unfavorable				$	(400	)			—					$	(373	)			—					$	(47	)			—
PPG impact (favorable) / unfavorable				(6,727		)			—					—					—					—					—
Realized gain on hedge settlement				$	—				$	—				$	—				$	—				$	—				$	—
				Year ended December 31,
				2017					2016					2017					2016					2017					2016
FX impact (favorable) / unfavorable				$	(530	)			—					$	(96	)			—					$	(524	)			—
PPG impact (favorable) / unfavorable				(24,896		)			—					—					—					—					—
Realized gain on hedge settlement				$	—				$	3,636				$	—				$	—				$	—				$	—

To determine the estimated earnings impact of FX, revenue and expenses from entities whose functional currency is not denominated in U.S. dollars, as well as revenue and variable expenses from purchase volume transacted in non-US denominated currencies, were translated using the weighted average exchange rates for the same period in the prior year, net of tax.

To determine the estimated earnings impact of PPG, revenue and certain variable expenses impacted by changes in fuel prices, were adjusted based on the average retail price of fuel for the same period in the prior year for the portion of our business that earns revenue based on a percentage of fuel spend, net of applicable taxes. For the portions of our business that earn revenue based on margin spreads, revenue was adjusted to the comparable margin from the prior year, net of non-controlling interest and applicable taxes.

Exhibit 3
Selected Non-Financial Metrics
				Q4 2017					Q3 2017					Q2 2017					Q1 2017					Q4 2016
Fleet Solutions:
Payment processing transactions (000s)				108,767					110,047					108,134					102,765					99,662
Payment processing gallons of fuel (000s)				2,877,971					2,905,700					2,907,875					2,775,590					2,731,994
Average US fuel price (US$ / gallon)				$	2.68				$	2.51				$	2.41				$	2.40				$	2.30
Payment processing $ of fuel (000s)				$	8,119,619				$	7,688,750				$	7,399,901				$	7,080,117				$	6,672,281
Net payment processing rate				1.18		%			1.17		%			1.18		%			1.22		%			1.23		%
Payment processing revenue (000s)				$	95,948				$	90,270				$	87,678				$	86,262				$	81,767
Net late fee rate				0.44		%			0.42		%			0.39		%			0.42		%			0.48		%
Late fee revenue (000s)				$	35,510				$	32,077				$	28,713				$	29,463				$	31,928
Travel and Corporate Solutions:
Purchase volume (000s)				$	7,405,045				$	8,662,533				$	7,676,935				$	6,599,797				$	6,351,741
Net interchange rate				0.53		%			0.51		%			0.52		%			0.53		%			0.71		%
Payment solutions processing revenue (000s)				$	39,332				$	44,177				$	40,276				$	34,875				$	45,390
Health and Employee Benefit Solutions:
Purchase volume (000s)				$	887,511				$	955,652				$	1,126,854				$	1,347,219				$	803,045
Average number of SaaS accounts (000s)				9,774					9,566					8,934					8,576					7,551

Definitions and explanations:

Payment processing transactions represents the total number of purchases made by fleets that have a payment processing relationship with WEX.

Payment processing gallons of fuel represents the total number of gallons of fuel purchased by fleets that have a payment processing relationship with WEX.

Payment processing dollars of fuel represents the total dollar value of the fuel purchased by fleets that have a payment processing relationship with WEX.

Net payment processing rate represents the percentage of the dollar value of each payment processing transaction that WEX records as revenue from merchants less any discounts given to fleets or strategic relationships.

Net late fee rate represents late fee revenue as a percentage of fuel purchased by fleets that have a payment processing relationship with WEX.

Late fee revenue represents fees charged for payments not made within the terms of the customer agreement based upon the outstanding customer receivable balance.

Purchase volume in the Travel and Corporate Solutions segment represents the total dollar value of all transactions that use WEX corporate card products and virtual card products.

Net interchange rate represents the percentage of the dollar value of each transaction that WEX records as revenue less any discounts given to customers.

Purchase volume in the Health and Employee Benefit Solutions segment represents the total US dollar value of all transactions where interchange is earned by WEX.

Average number of Health and Employee Benefit Solutions accounts represents the number of active flexible spending, health savings and reimbursement accounts.

Exhibit 4
Segment Revenue Information
Fourth Quarter and Full Year Ended 2017 and 2016
(in thousands)
(unaudited)
Fleet Solutions
				Three months endedDecember 31,									Increase (decrease)									Year endedDecember 31,									Increase (decrease)
				2017				2016					Amount				Percent					2017				2016					Amount				Percent
Revenues
Payment processing revenue				$	95,948			$	81,767				$	14,181			17		%			$	360,158			$	297,900				$	62,258			21		%
Account servicing revenue				42,845				36,706					6,139				17		%			165,083				127,106					37,977				30		%
Finance fee revenue				45,582				38,884					6,698				17		%			159,336				124,725					34,611				28		%
Other revenue				35,386				34,912					474				1		%			138,389				92,330					46,059				50		%
Total revenues				$	219,761			$	192,269				$	27,492			14		%			$	822,966			$	642,061				$	180,905			28		%
Travel and Corporate Solutions
				Three months endedDecember 31,									Increase (decrease)									Year endedDecember 31,									Increase (decrease)
				2017				2016					Amount				Percent					2017				2016					Amount				Percent
Revenues
Payment processing revenue				$	39,332			$	45,390				$	(6,058	)		(13	)%				$	158,660			$	175,762				$	(17,102	)		(10	)%
Account servicing revenue				7,003				396					6,607				1,668	%				7,531				1,247					6,284				504	%
Finance fee revenue				291				307					(16		)		(5	)%				760				643					117				18	%
Other revenue				13,682				7,361					6,321				86	%				57,096				37,595					19,501				52	%
Total revenues				$	60,308			$	53,454				$	6,854			13	%				$	224,047			$	215,247				$	8,800			4	%
Health and Employee Benefit Solutions
				Three months endedDecember 31,									Increase (decrease)									Year endedDecember 31,									Increase (decrease)
				2017				2016					Amount				Percent					2017				2016					Amount				Percent
Revenues
Payment processing revenue				$	10,452			$	10,144				$	308			3	%				$	50,348			$	46,957				$	3,391			7		%
Account servicing revenue				28,184				23,141					5,043				22	%				103,956				82,660					21,296				26		%
Finance fee revenue				5,373				7,401					(2,028		)		(27	)%				27,486				13,572					13,914				103		%
Other revenue				7,227				4,431					2,796				63	%				21,745				17,963					3,782				21		%
Total revenues				$	51,236			$	45,117				$	6,119			14	%				$	203,535			$	161,152				$	42,383			26		%

View source version on businesswire.com: http://www.businesswire.com/news/home/20180221005368/en/

News Media:

WEX Inc.

Jessica Roy, 207-523-6763

[email protected]

or

Investors:

WEX Inc.

Steve Elder, 207-523-7769

[email protected]

Source: WEX Inc.

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Wex, Inc. (WEX) Tops Q4 EPS by 4cFebruary 21, 2018 6:33 AM