WEX Inc. - FORM 8-K - EX-99.3 - SELECTED HISTORICAL FINANCIAL AND OPERATING INFORMATION

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file	filename
8-K - FORM 8-K - WEX Inc.	d470565d8k.htm
EX-99.2 - RISK FACTORS - WEX Inc.	d470565dex992.htm
EX-99.4 - UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - WEX Inc.	d470565dex994.htm
EX-99.1 - DESCRIPTION OF BUSINESS - WEX Inc.	d470565dex991.htm

Exhibit 99.3

SELECTED HISTORICAL CONSOLIDATED FINANCIAL AND OPERATING INFORMATION

The following tables set forth our selected consolidated historical financial information for the periods ended and as of the dates indicated. You should read the following historical financial information along with the consolidated financial statements and related notes included in Item 8 of our annual report on Form 10-K for the year ended December 31, 2011 and Item 1 of our quarterly report on Form 10-Q for the quarter ended September 30, 2012. The financial information included in the tables below as of December 31, 2010 and 2011 and for the years ended December 31, 2009 through 2011 is derived from the audited financial statements included in our annual report on Form 10-K for the fiscal year ended December 31, 2011. Our selected consolidated historical financial data as of December 31, 2008 and 2009 and for the year ended December 31, 2008 is derived from audited financial statements, included in our annual reports on Form 10-K for the years ended December 31, 2009 and 2008. The financial information as of and for the nine months ended September 30, 2011 and September 30, 2012 is derived from the unaudited financial statements and the financial information included in our quarterly report on Form 10-Q for the fiscal quarter ended September 30, 2012.

The summary consolidated financial data for the twelve months ended September 30, 2012 have been calculated by adding our historical financial data for the year ended December 31, 2011 and the nine months ended September 30, 2012 and subtracting our historical financial data for the nine months ended September 30, 2011.

Our results for the periods ended September 30, 2012 are not necessarily indicative of the results that may be expected for the entire year. Historical results are not necessarily indicative of results that may be expected for any future period.


	Year Ended December 31,												Nine Months Ended September 30,						Twelve Months Ended September 30, 2012
	2011			2010			2009			2008			2012			2011			Twelve Months Ended September 30, 2012
	(In thousands)
Income statement data
Total revenues	$	553,076		$	390,406		$	315,203		$	388,159		$	454,153		$	413,240		$	593,989
Salary and other personnel		104,610			87,364			75,123			66,969			87,501			79,492			112,619
Service fees		70,202			46,368			27,666			20,361			74,046			51,978			92,270
Provision for credit losses		27,527			19,838			17,715			45,021			14,874			20,464			21,937
Technology leasing and support		15,423			12,881			9,327			8,510			13,718			11,851			17,290
Occupancy and equipment		11,803			8,654			8,718			9,159			9,062			8,846			12,019
Depreciation and amortization		45,369			29,893			21,930			20,123			50,591			33,644			62,316
Operating interest expense		5,453			5,370			10,253			29,570			3,430			4,188			4,695
Other(1)		39,365			29,329			26,321			27,014			28,811			30,186			37,990
Total operating expenses		319,752			239,697			197,053			226,727			282,033			240,649			361,136

Operating income		233,324			150,709			118,150			161,432			172,120			172,591			232,853

Financing interest expense		(11,676	)		(5,314	)		(6,210	)		(11,859	)		(6,877	)		(9,087	)		(9,466	)
Net (loss) gain on foreign currency transactions		(459	)		7,145			(40	)		—			(312	)		(363	)		(408	)
Gain on settlement of portion of amounts due under tax receivable agreement		—			—			136,485			—			—			—			—
Net realized and unrealized losses on fuel price derivatives		(11,869	)		(7,244	)		(22,542	)		55,206			(12,046	)		(4,991	)		(18,924	)
Decrease in tax refund due to former shareholder of RD Card Holdings Australia		—			—			—						9,750			—			9,750
Increase in amount due under tax receivable agreement		(715	)		(214	)		(599	)		(9,014	)		—			(875	)		160

Income before income taxes		208,605			145,082			225,244			195,765			162,635			157,275			213,965

Income taxes		74,983			57,453			85,585			68,125			94,780			56,445			113,318

Net income before noncontrolling interest		133,622			87,629			139,659			127,640			67,855			100,830			100,647
Less: Net earnings from noncontrolling interest		—			—			—						(14	)		—			(14	)

Net earnings attributable to WEX Inc.	$	133,622		$	87,629		$	139,659		$	127,640		$	67,869		$	100,830		$	100,661
Changes in available-for-sale securities, net of tax		108			69			76			(4	)		114			144			78
Changes in interest rate swaps, net of tax		308			(192	)		1,560			(319	)		60			252			116
Foreign currency translation		2,567			28,015			(79	)		(70	)		7,189			(11,407	)		21,163

Comprehensive income attributable to WEX Inc.	$	136,605		$	115,521		$	141,216		$	127,247		$	75,232		$	89,819		$	122,018

(1)	Included in Other is advertising, marketing, postage and shipping and communications expenses.


	Year Ended December 31,								As of September 30,
	2011		2010		2009		2008		2012		2011
	(In thousands)
Balance sheet data
Cash and cash equivalents(1)	$	25,791	$	18,045	$	39,304	$	183,117	$	435,303	$	42,077
Accounts receivable (less reserve for credit losses)		1,323,915		1,160,482		844,152		702,225		1,630,699		1,512,343
Total assets		2,278,060		2,097,951		1,499,662		1,611,855		3,062,433		2,474,080
Accounts payable		409,226		379,855		283,149		249,067		586,941		525,920
Deposits		693,654		529,800		423,287		540,146		1,206,114		700,766
Borrowed federal funds		6,900		59,484		71,723		—		—		68,713
Revolving line-of-credit facilities and term loan		295,300		407,300		128,000		170,600		300,000		360,200
Total liabilities		1,568,745		1,538,944		1,058,346		1,317,193		2,256,283		1,813,795
Total stockholders’ equity		709,315		559,007		441,316		294,662		784,037		660,285

(1)

During the second and third quarters of 2012, we received NOW account deposits. As of September 30, 2012, we had $678.8 million of NOW account deposits outstanding. These deposits were in excess of our operating cash requirements to fund account receivables, which resulted in a large cash balance on our balance sheet as of September 30, 2012. We anticipate this balance to decline based on historical patterns of the NOW account deposits and scheduled maturities of our deposits. See “Risk Factors —Risks Related to Our Company — Our business is dependent on several key strategic relationships, the loss of which could adversely affect our results of operations”.


	Year Ended December 31,								Nine Months Ended September 30,				Twelve Months Ended September
	2011		2010		2009		2008		2012		2011		30, 2012
	(In thousands)
Other financial data
Adjusted EBITDA(1)	$	255,493	$	196,333	$	160,640	$	147,408	$	214,177	$	187,096	$	282,574

(1)

Adjusted EBITDA is a non-GAAP measure defined as net income plus income taxes, financing interest expense and depreciation and amortization, as well as certain other supplementary adjustments set forth below. See “Use of Non-GAAP Financial Information.” Adjusted EBITDA is not a recognized term under GAAP and does not purport to be an alternative to net income as a measure of operating performance. Additionally, Adjusted EBITDA is not intended to be a measure of cash flow available for management’s discretionary use, as it does not consider certain cash requirements such as interest payments, tax payments and debt service requirements. Adjusted EBITDA is reconciled to net income, the most closely comparable GAAP measure, as follows:


	Year Ended December 31,												Nine Months Ended September 30,						Twelve Months Ended September 30, 2012
	2011			2010			2009			2008			2012			2011			Twelve Months Ended September 30, 2012
	(In thousands)
Net income	$	133,622		$	87,629		$	139,659		$	127,640		$	67,869		$	100,830		$	100,661
Income taxes		74,983			57,453			85,585			68,125			94,780			56,445			113,318
Financing interest expense		11,676			5,314			6,210			11,859			6,877			9,087			9,466
Depreciation and amortization		45,369			29,893			21,930			20,123			50,591			33,644			62,316
Other non-cash charges/(income)		715			—			(135,886	)(1)		10,552			(9,750	)		875			(9,910	)
Non-recurring charges or expenses incurred as transaction costs in connection with permitted acquisitions		—			5,845			—			—			1,970			—			1,970
Unrealized losses/(gains) in connection with fuel derivative instruments		(10,872	)		17,029			43,142			(90,891	)		1,840			(13,785	)		4,753
Non-recurring cash income or gain to extent included in consolidated net income		—			(6,830	)		—			—			—			—			—

Adjusted EBITDA	$	255,493		$	196,333		$	160,640		$	147,408		$	214,177		$	187,096		$	282,574

(1)

On June 26, 2009, the Company entered into a Tax Receivable Prepayment Agreement with Realogy Holdings Corp. (“Realogy”), pursuant to which the Company paid Realogy $51 million, including bank fees and legal expenses, as prepayment in full to settle the Company’s remaining obligations to Realogy under the Tax Receivable Agreement dated February 22, 2005 among the Company, Cendant Corporation and Cartus Corporation. These obligations were previously recorded at $187.5 million and this transaction resulted in a book gain to the Company of $136.5 million in the second quarter of 2009.

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