Ladies and gentlemen, thank you for standing by, and welcome to the WEX Fourth Quarter 2016 Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-answer session. Thank you. Mr. Steve Elder, Senior Vice President of Investor Relations, you may begin your conference.

Thank you, Tabitha, and good morning, everybody. With me today is Melissa Smith, our President and CEO; and our CFO, Roberto Simon. The press release we issued earlier this morning is posted in the Investor Relations section of our website at wexinc.com. A copy of the release has also been included in an 8-K that we submitted to the SEC. As a reminder, we will be discussing non-GAAP metrics, specifically adjusted net income during our call. Adjusted net income for this year's fourth quarter excludes unrealized gains and losses on derivative instruments, net foreign currency re-measurement losses, acquisition- and divestiture-related items, stock-based compensation, restructuring and other costs, a one-time vendor settlement cost, debt restructuring and amortization of issuance costs, non-cash adjustments related to our tax receivable agreement, similar adjustments attributable to our non-controlling interest and certain tax-related items. The company provides revenue guidance on a GAAP basis and earnings guidance on a non-GAAP basis as we are unable to predict certain elements that are included in reported GAAP earnings. Please see Exhibit 1 for an explanation and reconciliation of adjusted net income to GAAP net income included in the press release. The adjustments for the contract renegotiation was new in the fourth quarter. Finally, I would also like to remind you that we will discuss forward-looking statements under the Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those forward-looking statements as a result of various factors, including those discussed in our press release and the risk factors identified in our Annual Report on Form 10-K filed with the SEC on February 26, 2016, and our subsequent filings on Form 10-Q. While we may update forward-looking statements in the future, we disclaim any obligations to do so. You should not place undue resilience on these forward-looking statements, all of which speak only as of today. With that, I'll turn the call over to Melissa.

Good morning, everyone, and thank you for joining us today. We're pleased to report a strong fourth quarter and close of the 2016 fiscal year, having delivered top- and bottom-line results ahead of our guidance. Our performance was driven by solid execution across our strategic priorities and positive contributions from all of our segments. We're encouraged by the strength of our organic growth and our progress in integrating EFS and our ability to expand our product offerings. In the quarter, we achieved revenue of $291 million and adjusted net income of $1.28 per share. For the full year 2016, revenue increased 19% to $1 billion, and adjusted net income per share decreased 6% to $4.62 per share. The impact of lower fuel prices and the relative gains from our hedging program created a swing in adjusted net income of $49.3 million after taxes, which is approximately $1.20 per diluted share. In light of the challenging fuel price trends and macroeconomic volatility we faced over the past year, we are pleased to achieve these results. It's clear that the emphasis we placed on providing compelling products with a high standard of customer service is paying off. We had a busy end of the year, closing new business in the pipeline and signing contract renewals with existing customers. Our ability to attract significant new business while extending existing relationships demonstrates the strength of our credibility, brand value, sales force capabilities, and our attractive product offerings. As our results indicate, we've a standout year in 2016 bolstered by strong performance across all lines of business. Turning now to our segment results. Our Fleet Solutions business continues to perform exceptionally well with segment revenue growing 41% in the fourth quarter to $192 million, driven by positive contributions from the acquisition of EFS, solid volume…

Thank you, Melissa. For the fourth quarter of 2016, we reported total revenue of $291 million versus $213 million a year ago and above the high end of our guidance range of $272 million to $282 million. Net income on a GAAP basis for this quarter was $5.3 million or $0.12 per diluted share compared to $20.9 million or $0.54 per diluted share for the same period last year. Our non-GAAP adjustment net income came in at $55.2 million or $1.28 per diluted share, up from $45.2 million or $1.16 per diluted share. Fuel prices in Q4 were in line with last year, but keep in mind that we had approximately $2.1 million after taxes in variable fuel price spreads a year ago. In addition, Q4 2015 results benefit by a $6.5 million after-tax gain from fuel price hedges. In terms of EPS, this is a swing of approximately $0.20. For the full year 2016, revenue increased 19% to $1.02 billion, from $855 million in 2015. On a GAAP basis, net income in 2016 was $1.48 per diluted share compared to $2.62 per diluted share in 2015. On a non-GAAP basis, adjusted net income decreased 6% to $4.62 per diluted share. Fuel prices play a significant role in the decline in earnings year-over-year. The impact of lower fuel prices and the relative gains from our hedging program created a swing in adjusted net income of $49.3 million after taxes, which is approximately $1.20 per diluted share. As Melissa mentioned, execution across the business has driven positive results across all three segments, and we are starting to capture operational efficiencies across the business. Each segment reported double-digit revenue growth in Q4 with Fleet and Health each over 40%. For the full year, total revenue was up 19% with all segments up…

Your first question comes from the line of Sanjay Sakhrani with KBW. Steven Kwok - Keefe, Bruyette & Woods, Inc.: This is actually Steven Kwok filling in for Sanjay. Thanks for taking my question. I guess the first one is just around the price modernization that you talk about and some of your customers you're seeing trying to avoid the fees. Can you talk about that a little bit and provide some color around that? Thanks.

Sure. I'll start and Roberto may want to add on to that. What we have experienced over the last year has been – actually, over the last couple of years has been a pattern of when we make some changes to fees typically in a shorter period of time. The customers react to that and they curb their behavior. And then eventually, what we find is that they typically go back to whatever behavior they had historically. And what we're seeing in the first quarter is a little bit more of a sharper change in terms of having people pay more timely. And so, it's just something that we're watching a little bit more than we have in the past because it's a little bit more oversized – overstated and it's not a significantly different change, but it's a little bit different than what we have seen historically.

What I will add also is that we have factored this in our analysis and guidance. And I would like to remind you as well that on the other side, obviously, the reduced risk of credit losses associated now with those timely payments and the reduced borrowing needs will offset some of this potential impact. Steven Kwok - Keefe, Bruyette & Woods, Inc.: Got it. Thanks. And as a follow-up, when we look at the Travel and Corporate segment, how much of the benefit came from EFS on both the revenue side and then on the purchase volume side?

So, what I would say to you is – we just said on the earnings call that the majority of the revenue growth, it was coming from EFS. So, if you look at the numbers, it's around $5 million for the quarter. Volume-wise, it will be around $0.5 billion.

And from a volume perspective, volume is still – it's growing across the board, so a piece of it is coming from the EFS acquisition. But there's also continued strong growth in the underlying portfolio. Steven Kwok - Keefe, Bruyette & Woods, Inc.: Great. And when we look into 2017 like how should we think the volume growth should trend? Should it be at comparable levels that we've seen in the fourth quarter?

So, I would say to you that we expect to continue the volume growth consistently with the 2016 rates. Bear in mind that in 2016, we have to overlap EFS. But for the first half, you should expect this volume growth. Steven Kwok - Keefe, Bruyette & Woods, Inc.: Okay. Great. Thanks for taking my questions.

The next question comes from the line of Glenn Greene with Oppenheimer. Glenn Greene - Oppenheimer & Co., Inc.: Thanks. Good morning. Maybe, Melissa, you could talk about Chevron a little bit more. In terms of the timing, I would say it's sort of an 2018 benefit, but you expect it to be fully converted by the end of 2017. Any way to frame the order of magnitude benefit of it? We sort of know what the loss was on the other side. But maybe just a little bit more color on Chevron and probably more importantly, why do you think you've won it?

Yeah. We're obviously really excited to be doing business with Chevron. These relationships are built over a number of years. And so, we've been engaged with them for quite some time. They went through a very exhaustive process and as you might imagine with any of the major oil companies, they go through this. They're going through their procurement department with a number of things that they're looking for. And in their conversation that they had with me, the things that stood out as to why we won, they were very focused on growing their portfolio. And I think they felt that they had a lot of confidence walking away that we were going to be a good partner to be able to grow their portfolio with them. They also were very interested in how we interact with our customers and how we think about their brand in the marketplace. And so, that was a big part of the narrative that we had with them, was around specifics of what we could do together to create the growth trajectory that they're looking for in a way that they wanted to grow their business. And so, we're excited – we're talking about 2017 as being an investment year, which is normal across all over our private label contracts regardless of what line of business they're in. We typically go through a period of time where we have to go through data migration and also them ramping up just resources to work on the account including sales and marketing resources. And so, 2017 will be an investment period of time. But then going into 2018, it's going to be meaningfully accretive to our business in 2018 and then for the 10 years following. Glenn Greene - Oppenheimer & Co., Inc.: Okay. And then just sort of a more new ones, but on the travel side, the yield sort of look it was in line, adjusted – in line relative to the third quarter, adjusted for the couple items you called out. But how should we think about it for 2017 given the MasterCard renewal wherein the MasterCard change of the contract and the OTA renewal, how much pressure should we expect on that interchange rate?

So, this is Roberto. I will take the call. Let me start now mentioning that obviously, the first thing is we no longer will have the benefit from MasterCard on our revenue side. And excluding this, our revenue for the segment should be essentially flat. I also mentioned that we have, on a quarterly basis, $2 million to $3 million on the net revenue impact. Also, I will highlight to you that these changes mentioned will put pressure on our net interchange of approximately 15 basis points to 20 basis points in the segment. And finally, what I want to remind as well is it's a very high-margin segment and will continue to be so. Glenn Greene - Oppenheimer & Co., Inc.: Okay.

There is a number of things, and we talked about very specifically in this kind of business because we've got a lot of moving parts. We knew that this business was going to be evolving for us. And so, we went after some pretty significant price changes. And some of those things like the MasterCard contract, a little bit of that is geography of how it gets reclassified in the future. So, it makes the revenue look even more depressed when you look at it comparatively. So, we're trying to be very prescriptive around what the impacts are going to be.

The other thing also I will say to you is, as Melissa mentioned on the call, the timing of how we have implemented those contracts has a small impact in 2017. But if you look at the overall changes, the business is still very profitable and we have been able not to act (37:28) in the contracts at different time. Glenn Greene - Oppenheimer & Co., Inc.: And what are the cost measures you've taken to sort of adjust for the revenue pressure?

The two biggest things were renegotiating the MasterCard agreement which we did earlier in 2016. And then also making changes to the underlying technology contracts that we have in that part of the business. And so, pretty aggressively going after and renegotiating some of the vendor agreements that we have, as well as we're always going to be cautious of the internal cost structure that we have in hiring. Glenn Greene - Oppenheimer & Co., Inc.: Okay. Great. Thank you.

Your next question comes from the line of Tom McCrohan with CLSA.

Hi. I was wondering if you could provide the total aggregate revenue and adjusted net income contribution from EFS in 2016 and what we should be thinking about for 2017?

So, what we had said at the beginning of the transaction is that we expected it to contribute roughly $80 million worth of revenue this year, recognizing that to a half-year of revenue, and we've also said that it's done slightly better than we had expected. And so, from a revenue perspective, it has come in strong and contributed more than we expected. And I would say that's setting us up well as we go into 2017 in terms of making sure that we're getting both the revenue growth as well as the accretion that we anticipated.

So, is there an adjusted net income contribution for 2016 that you could provide us with?

What I would say to you is that 2016 for EFS has been accretive already within just the first six months. And that going into 2017, we saw both – we are on track with the synergies. We are on track with the customer backlog implementation, as well as Melissa said, we are winning new customers into the marketplace. So, overall, obviously for 2017, we should see the numbers even better than 2016. But we are very pleased that during 2016, already the business was accretive for us.

Okay. Great. Thank you. And then on the net processing rate in Fleet, it sounds like – you gave us some good color for Corporate and Travel. What should we be modeling for 2017 for the net processing rate in the Fleet segment?

So, what I would say to you is in the last – now that we overlapped two quarters of EFS and if I recall, we're 1.26% in Q3 and 1.23% in Q4. You should be expecting those numbers going forward, obviously, considering that the fuel prices don't change dramatically.

Okay. Great. Thank you for taking the questions.

Your next question comes from the line of Jim Schneider with Goldman Sachs. James Schneider - Goldman Sachs & Co.: Good morning. Thanks for taking my question. Apologies if I missed it before, but can you maybe talk about the same-store sales trends you're seeing right now and whether you're seeing a substantial uptick from what you saw a couple quarters ago and what you expect over the course of the year?

Sure. It's Melissa. So, same-store sales, if you look at the fourth quarter, was actually only down 2%. So, it's a little bit better than what we have seen in the rest of the year. I think some of that is – if you look at the segment that we were getting hit the hardest on related to oil and gas and that's becoming a smaller part of the business and so, some of that is just kind of a lapping effect. But on the positive side, there was actually growth in the construction trades which had dropped to a negative number over the proceeding couple of quarters and so, I think that is a good sign if you look at kind of the overall economy. Many of the other FSC codes were negative but you're starting to see a few of them go into the positive category. And in terms of how we thought about it when we put together 2017, we look at that as being a slight headwind for us as we factor this guidance for 2017, similar to what we would have experienced in this last quarter. James Schneider - Goldman Sachs & Co.: That's helpful. Thanks. And then, you mentioned increased costs relative to implementation on both Chevron and Exxon, if I am not mistaken. But what are the costs related to Exxon? Was there any new programs costs given you already had them as a customer?

Yeah. So, we actually did add and extend the relationship with Exxon so that we're doing more services in Canada with them. In addition to that, we've agreed to ramp up our investment and self-marketing and the relationship with them because of what we see as a good opportunity in the marketplace based on the history of what we have. And so, whenever you do that, you have a year that have an investment associated with that. But we typically see a pretty quick return. James Schneider - Goldman Sachs & Co.: And then just very quickly, can you maybe talk about the accretion you'd expect roughly for the Esso Europe contract for this year relative to, I think you, maybe just recently broke even on that?

Yeah. So, let me give you, according 2016, we already had a positive operating income for the WEX portfolio. And as I said during the call, I mean, for 2017, we're going to continue having improvement both from the back office consolidation and some pricing modernization. And we are going to have as well for 2017 this positive trend on the margin side. What you also have to think is obviously, as we move ahead for the future, one of the things that's important is that this is – I mean, the margin should be like a private label portfolio. James Schneider - Goldman Sachs & Co.: Thank you.

Your next question comes from the line of Ramsey El-Assal with Jefferies.

I was wondering if you could help us understand how you're feeling about your organic growth profile in 2017 and beyond. Where does it stand now? I know you set out some long-term targets that included organic growth and acquired growth. But just curious of your updated views.

Yeah. We feel great about our organic growth. If you look at 2016, if you exclude the impact of FX and fuel prices, we grew 13% organically. So, really strong year in 2016. That sets us up well going into 2017. And we talked about the fact we're going to have some geography issues within the virtual business, which will have a little bit of a softening impact of that going into 2017. But across the rest of the business, we've got really good trajectory and then bringing in volume in every part of our business. We are continuing to get benefits from the pricing changes that we've made, not just within Fleet domestically but we're doing internationally. And we've got some great contract signings that are ramping into the business, so we feel good about the overall organic growth of the business.

Okay. Terrific. And then, on the pricing and specifically regarding the late fee that you increased that you started to roll in 2016. How should we think about where you are in that? As I recall, there's a direct implementation and then you kind of go back to ground and test. And then there's an indirect customer implementation, and I know you'd mentioned you're monitoring your customers sort of reaction to the increase. But where are we at in the cycle? I mean, should we expect a continued tailwind from that going into the beginning of next year or is it largely through, or how should we think about that?

So, I said that we went through infected our (45:58) portfolios, the ones that we directly control and that's the portfolio that we've been monitoring. We're also then engaging in conversations with some of our partners and ultimately, we want to make sure that we're doing and making changes with our partners that are conducive to how they want their brand to be perceived in the marketplace as well. So, it's a balancing act to the conversation that we have with them. But I think actually more importantly is that we have set ourselves up more systematically to think about pricing. We've changed the underlying infrastructure to think about pricing in a much more strategic and systemized level, so that we do anticipate we're going to have further benefit. We do think that you've got this big pop of some of the changes that we've made and we'll continue to get some tailwinds as that annualizes this year. But as we do our longer range planning and as we've thought about the numbers we gave out for 2017, we do anticipate continued benefit from further pricing modernization over the next several years.

Okay.

What I will add for you is just reiterate what Melissa said, that especially on the first half, because of the tailwind of 2016, we should expect higher growth rates on the Fleet. And then as we move to the second half, we will have this more tailor-made changes and be more systematic on how we do those new price increases.

Okay. Last one for me is the perfunctory any news on Europe question that you guided before there...

Yeah. Europe's interesting. We talked a little bit more about Asia this time because as we think about our international platform, we've had some really great success in winning business in the Asia marketplace. Europe, I've said all along, it's a long play. And it certainly has been rolling out that way this year. And so, we still feel good about the market. We still think of it as a long-term play for us, and we feel really good about the prospects that we have in that pipeline. But I would say more broadly than just Europe that we have also within Asia.

Let me ask you in a slightly different way very quickly. Is your – is the pipeline of outsourcing opportunities in Europe changing at all? Is it increasing, in other words? Are there new opportunities that are – are there visibilities in new opportunities, or is it really just a static set of kind of deals that you've been looking for quite some time and you're waiting for this to kind of ripen up?

I think the really big ones or more known and just are taking time to, as you say, ripen. And if you look within our U.S. portfolio the number of private label contracts that aren't just major oils. And so, that part is less static and as we are in the marketplace and developing the pipelines that we have. And again, that's also true as you get outside of Europe and to some of the markets from the mid-sized oil companies, too, are also prospects for us.

Fantastic. Thanks for taking my questions.

Your next question comes from the line of Bob Napoli with William Blair. Robert Paul Napoli - William Blair & Co. LLC: Good morning. Just the first question on the range of EPS for next year, $5.10 to $5.50. Which are the biggest swing factors that you're watching and that would bring you to either the low-end or the high-end? Obviously, oil prices I think are – excluding oil prices or foreign currency because I don't think you've built that into there?

Yeah. Bob, good morning. This is Robert. Robert Paul Napoli - William Blair & Co. LLC: Good morning.

I would say to you there's a couple of things. Number one, interest rates, because as we have been seeing in the last few months, there is a lot of volatility on the interest rates with a factor, as I said, 40 to 65 basis points on our guidance. So, depending on how these trends, higher or lower, there could be some impact there. The second thing is how quick we can implement and ramp up the resources now with Chevron and ExxonMobil. They may give up some benefit earlier than we expect. That's another area where we should be focused. And finally, being cautious on the credit loss guidance, which is between the 30 basis points and 15 basis points range. We had a good starting of the first, call it, six weeks, but is an area also to watch for 2017.

The only other thing I'd add to that is when we go to any year because we are growing our business organically, we always have a bogey in there of how much we have to ramp for new business. And so, that's something that can cause a swing in any particular year. Typically, the majority of the revenue is booked, but you still have this variability that enters into based on what you have for open business. And so, some of that depends on timing of when it ramps, which sometimes you control and sometimes you don't 100% control it. Robert Paul Napoli - William Blair & Co. LLC: Okay. And then just on the Healthcare and Employee Benefits segment. You said Brazil was up over 100%. Is that constant currency? What was it constant currency? How much was the revenue out of Brazil now that it's growing and becoming a lot more material, and what do you expect that segment to grow at by piece?

Yeah. Bob, let me answer for you. So, both revenue ex-FX or with the currencies was over at 100%. So, we had a very good quarter. We have been ramping up since, I would say, Q3. Revenue starts growing significantly faster and have accelerated in Q4. But it's both with considering FX rates and at actual rates too. Robert Paul Napoli - William Blair & Co. LLC: Okay. And then the amount of revenue from Brazil and the expected continued – in the fourth quarter and your thoughts on the growth of...

Yeah. What I would say to you is that we expect a high growth from Brazil. I would say probably a bit more than on the high teens. That's directionally where we should expect. And from a quarter revenue point of view, we have around – in a full year, it's around $20 million. Robert Paul Napoli - William Blair & Co. LLC: Okay. And then just last question on your expectations kind of by segment over the medium to long term for organic growth rates, for Fleet, Travel and Corporate Benefits and then the Health and Employee Benefit business.

So, Roberto gave a few of those numbers.

Yes.

And I always hesitate to give you, like, very specific numbers. But... Robert Paul Napoli - William Blair & Co. LLC: But just kind of a range, like longer term, not just for 2017.

Yeah. I said, years don't ever play out – right. But we've said in the WEX Health business organically, we're still saying that it's a high-teen growth rate business. And in the Fleet business, we've seen growth, double-digit growth. And I would say that business is to get the ultimate (53:16) typically more of a single-digit grower. But we've been able to show much more growth than that and we feel pretty good about the trajectory we're on in Fleet. And then on the corporate payment side of the business, 2017 will be a little bit of an unusual year for us. But if you look at the longer term growth trajectory, we're still seeing spend volume growth in the high-teens, if not higher than that business. Robert Paul Napoli - William Blair & Co. LLC: Great. Thank you. Appreciate it.

The next question comes from the line of Tien-Tsin Huang with JPMorgan.

Hi. Thanks. Good morning. I was just curious, Melissa, how would you sort of characterize your size, your sort of new sales bookings performance in 2016, and what are your thoughts on 2017?

I felt great about 2016. I think part of why I feel so strongly about 2016 is that it was coming literally from every part of the business and all over the world. And so, the pipeline development was very strong. I feel like people stayed really disciplined and focused. And some of the wins, I think, we're never going to talk about because they're smaller in size that are just being generated deep in the organization, but we also had some really big marquee names that we added on in 2016. And so, felt really good about that. And I would say, going into 2017, I feel equally bullish that we have a number of really great prospects in the pipeline and we're going to continue to just stay disciplined. We've got a great sales force globally that have been and is knocking it down, as well as the relationship management groups that we have that have been doing contract renewals.

Good. That sounds like you can replenish it. That's great. Just a quick follow-up, just taking the tech piece in-house, the charge seem quite high. Is that indicative of the savings to come from initiating that move in-house?

So, let me tell you that the expense that you are talking about pertains to our resolution and clarification of a past obligation and an extension of an agreement with a long-term technology partner. I also said on the call that we should see savings from 2018 and beyond. So, directionally, you can get the 2017 between some internal and this partner, we're going to be more or less on the same pace.

Okay. All right. Thank you.

And your next question comes from the line of Tim Willi with Wells Fargo.

Thanks, and good morning. I apologize, I hopped on a bit late. But I was wondering if you could just talk a bit about the competitive dynamics you see in the Over The Road marketplace just in terms of either down – sort of downstream efforts to more than mom-and-pop world? Or just any additional opportunities you're seeing now that you own EFS? And I know you guys have talked about some benefits of owning a bank that you can crank to that franchise and just sort of how that's all playing out, any thoughts you have?

Yeah. So, we talked about a number of contract wins that we had specifically in the Over The Road marketplace. I would say that the market conditions are similar that it's a competitive marketplace. And so, there are contract takeaways when we're winning in that space. And part of why we win is the underlying technology with – the part that made EFS particularly attractive among many things that there was the underlying technology. The flexibility of the systems that they have and their ability to meet market needs and appear to be highly customizable to the customers, that it has been attractive in the marketplace, and so we feel we have really good momentum there. And then, we should mention the ability to combine that with our bank and lending capability that we have is really great when you get into some of the smaller accounts which is where we historically had played. And so, there has been really good momentum and I think the combining of the EFS business along with our Fleet One historical brand has been a good momentum shift for us.

Great. That's all I have. Everything else have been answered. Thanks very much.

We have reached the time for our allotted questions. I'll turn it back over to the presenters for closing remarks.

I just wanted to say thank you, guys, for joining us again this quarter and we look for forward to speaking with you next quarter.