Corporate payment services provider Wex Inc. of South Portland said in-house growth throughout all of its business units led to double-digit increases in both revenue and net income in the third quarter compared with a year earlier.
The company reported Wednesday that its revenue for the third quarter was $324 million, up 12.6 percent from revenue of $287.8 million in the third quarter of 2016.
Wex reported quarterly adjusted net income of $61.5 million, or $1.43 per share, up 14.4 percent from $1.25 per share a year earlier. When not adjusted for one-time credits and charges, the company’s net income for the third quarter was $34 million, or 79 cents per share, up 72 percent from $19.7 million, or 46 cents per share, in the third quarter of 2016.
According to investor website Seeking Alpha, Wex’s adjusted net income of $1.43 per share beat analysts’ expectations by 2 cents per share.
Wex President and CEO Meliss Smith noted that, unlike in prior quarters, none of the company’s growth in the third quarter came from mergers and acquisitions.
“All of the growth was organic,” she said. “We didn’t have any M&A activity at that time.”
Smith said Wex hasn’t done any major acquisitions since purchasing Nashville, Tennessee-based competitor Electronic Funds Source for nearly $1.5 billion in the third quarter of 2016. Before that, the company had been on a buying spree.
Smith said Wednesday that the company’s focus this year has been on paying down debt and completing the integration of Electronic Funds Source.
Meanwhile, Wex has seen steady growth in its fleet vehicle fuel payments, travel and corporate solutions, and health and employee benefits services divisions.
“Our growth engine remains strong, due to contributions from all of our business segments,” Smith said.
Wex has about 2,300 employees worldwide, including more than 850 in Maine.
The company recently announced plans to relocate its headquarters to downtown Portland in 2019 while retaining a major presence in South Portland.
J. Craig Anderson can be contacted at 791-6390 or at:
Twitter: @jcraiganderson
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