IMGCAP(1)]
Express Corp., a payment-processing company for commercial and government vehicle fleets, today reported adjusted net income of $22.4 million for the second quarter ended June 30, down slightly from $22.5 million a year ago. Total revenue was $78.6 million, down 29.3% from $111.2 million. The company's provision for credit losses during the quarter was $2.6 billion, down 75.9% from $10.8 million a year ago. Total operating expenses were $46.3 million, down 23.2% from $60.3 million. South Portland, Maine-based Wright Express served an average of 4.7 million vehicles during the quarter, up 4.4% from 4.5 million during the same quarter last year. Wright processed 66.1 million fuel transactions, down 9.3% from 72.9 million. On MasterCard-branded Wright Express cards, purchase volume was $771 million, up 23.8% from $623 million a year ago. The net interchange rate on those transactions was 1.11%, up four basis points from 1.07%. Revenue from processing those MasterCard-branded payments rose 28.4%, to $8.6 million from $6.7 million. Although the company continues to operate in a "difficult" business environment, lower credit costs helped to offset the decline in revenue during the quarter, Michael Dubyak, Wright chairman and CEO, said in a statement. For the full year, the company forecasts a 7% to 10% decline in transaction volume compared with 2008 because of the weak economy.
