WEX(US:WEX)2024-04-25 18:23Financial Performance - Total revenues for the three months ended March 31, 2024, were $652.7 million, an increase from $612.0 million in the same period of 2023, representing a growth of 6.5%[157] - Net income for the first quarter of 2024 was $65.8 million, slightly down from $68.0 million in the prior year, resulting in a net income per diluted share of $1.55 compared to $1.56[157] - Adjusted net income for the first quarter of 2024 was $146.7 million, up from $145.8 million in the same period last year, with adjusted net income per diluted share increasing to $3.46 from $3.31[157] - Total segment adjusted operating income increased to $274.9 million in Q1 2024 from $252.5 million in Q1 2023[194] Revenue Breakdown - In the Mobility segment, total revenues decreased by $3.3 million to $339.0 million, primarily due to a decline in finance fee revenue, which fell by 13% to $70.0 million[160] - Corporate Payments total revenues increased by $17.7 million to $122.5 million for the first quarter of 2024, representing a 17% growth compared to the same period in 2023[172] - Payment processing revenue in Corporate Payments rose by $13.1 million to $103.2 million, a 15% increase year-over-year[172] - Total Benefits revenue increased by $26.3 million to $191.2 million for the first quarter of 2024, reflecting a 16% growth compared to the prior year[177] Operating Expenses - General and administrative expenses rose by $3.3 million to $31.4 million, largely due to increased employee costs from the Payzer acquisition[171] - Sales and marketing expenses increased by $5.0 million to $57.2 million, also attributed to higher employee costs following the Payzer acquisition[171] - Financing interest expense increased by $7.4 million to $(60.3) million, primarily due to higher borrowings and interest rates[183] Cash Flow and Liquidity - Operating cash flow for Q1 2024 was reported at $(153.3) million, a decrease from $27.1 million in Q1 2023[196] - The company had cash and cash equivalents of $779.6 million as of March 31, 2024, including $176.0 million in corporate cash[197] - Adjusted free cash flow for Q1 2024 was $(204.5) million, compared to $(61.4) million in Q1 2023[196] - Cash used for operating activities increased by $180.4 million year-over-year, totaling $(153.3) million for the three months ended March 31, 2024, compared to $27.1 million in the same period of 2023[202][204] Borrowings and Debt - As of March 31, 2024, the company had outstanding term loan principal borrowings of $2,230.4 million and borrowings of $929.8 million on the Revolving Credit Facility[200] - The company accessed $760.0 million of temporary capital under the BTFP, pledging investment securities with a par value of $832.7 million as collateral[200] - As of March 31, 2024, WEX Bank could borrow up to a maximum amount of $150.6 million from the Federal Reserve Bank Discount Window, with no borrowings outstanding on this line of credit[201] Compliance and Regulatory Matters - WEX Bank is subject to a consent order from the FDIC requiring improvements to its compliance management program, but this is not expected to materially affect operations or financial results[213]