DALLAS, May 6, 2021
/PRNewswire/ -- MoneyGram International, Inc. (NASDAQ: MGI)
today reported financial results for its first quarter ended
March 31, 2021.
First Quarter 2021 Business Highlights
"Our customer-centric strategy helped drive a strong start to
the year with money transfer revenue growth accelerating to 12% as
the digital business continues to overperform reaching 32% of total
money transfer transactions at the end of March," said Alex Holmes, MoneyGram Chairman and CEO. "The
underlying momentum in the business combined with the positive
sentiment surrounding the upcoming exit from the DPA, positions the
Company well to refinance its debt in the coming months and
accelerate our digital transformation."
Digital performance in the first quarter was led by MoneyGram's
online direct-to-consumer channel (MGO):
• MGO delivered
a record quarter for customers, transactions and revenue, exceeding
its all-time high achieved in the fourth quarter of 2020
|
|
°
Year-over-year, MGO delivered 119% revenue growth and 102%
transaction growth on the strength of new app downloads and
customer retention rates
|
|
°
Year-over-year, cross-border online revenue grew an impressive 131%
and transactions grew an equally impressive 130%
|
• Total
digital, which includes MGO, reported year-over-year transaction
growth of 86% in the first quarter
|
|
° Digital
revenue reached a new record of $60.4 million for the first quarter
representing a 77% year-over-year revenue growth rate
|
|
° Digital
partnerships delivered transaction growth of 47%
year-over-year
|
|
° Payouts
through account deposit, Visa Direct and mobile wallets increased
128% year-over-year
|
• Digital
transactions accounted for 32% of all money transfer transactions
at the end of March
|
First Quarter 2021 Financial Results, Year-Over-Year
• Total revenue
of $310.1 million increased 7% on a reported basis or an increase
of 3% on a constant currency basis
|
|
° Money
transfer revenue was $285.4 million, up 12%, or 8% on a constant
currency basis, driven by double-digit transaction
growth
|
|
° Investment
revenue was $2.0 million for the quarter representing a decline of
$8.1 million due to lower prevailing interest rates
|
• Gross Profit
was $144.8 million, an increase of $8.3 million driven by strength
of money transfer revenue and offset by the decline in investment
income
|
• Total
operating expenses were $136.4 million, an increase of $13.0
million or 11% including:
|
|
° Transaction
and Operations Support expenses increased $5.4 million or 14% which
were driven by:
|
|
|
▪ The
elimination of the $12.1 million net benefit from Ripple market
development fees generated in the first quarter of 2020 due to the
halting of transactions under the commercial agreement with Ripple
effective early December 2020
|
|
° Compensation
and Benefits were $62.2 million, an increase of $8.8 million
primarily driven by severance expenses
|
• Operating
Income was $8.4 million, a decrease of 36% driven by the
elimination of Ripple market development fees, lower investment
income and severance costs
|
• Net loss of
$15.4 million for the quarter representing an improvement of $6.1
million
|
• Diluted loss
per share was $0.19 and diluted adjusted loss per share was
$0.06
|
• Adjusted
EBITDA decreased 3% to $49.9 million, or 11% on a constant currency
basis driven by the reduction of $17.4 million related to the net
benefit of Ripple market development fees and reduced investment
income due to lower prevailing interest rates
|
Holmes concluded, "As part of the next phase of our digital
transformation and in response to market demand to access our
leading capabilities, we launched a new business line to open our
platform to new customers and use cases. Over the last few years,
we've built an API-driven infrastructure that enables us to
seamlessly scale volume through our global network, and we're
excited about this strategic growth opportunity to monetize our
capabilities in new ways."
Balance Sheet and Liquidity
• Cash and cash
equivalents was $152.8 million at quarter-end compared to $131.0
million as of the end of the first quarter 2020
|
• First quarter
interest expense was $22.3 million and capital expenditures were
$11.2 million
|
Department of Justice Update
MoneyGram also reported positive developments as it nears the
end of the term of its Deferred Prosecution Agreement
("DPA"). Earlier this week, MoneyGram and the government
filed a joint status report with the court in which the parties
confirmed that MoneyGram has satisfied its financial obligations
under the DPA and that the independent compliance monitor has
certified to MoneyGram and the government that MoneyGram's
anti-fraud and anti-money laundering compliance program meets the
standard set forth in the DPA.
In addition, the joint status report states that on May 10, 2021, MoneyGram intends to certify to the
government that the Company has fulfilled its obligations under the
DPA, and that after the government receives this certification, and
provided that the Company has otherwise complied with the DPA, the
Government will move to dismiss the matter underlying the DPA
within 45 days of May 10, 2021.
Second Quarter 2021 Outlook
The Company is providing the following outlook for the quarter
ending June 30, 2021:
The Company anticipates total revenue in the range of
$315 to $325
million based on continuing growth in its money transfer
business. This range includes a potential impact of up to
$10 million related to the
introduction of new competition in the Walmart Marketplace, the
rollout of which began at the end of April.
The Company anticipates Adjusted EBITDA in the range of
$50 to $55
million. This range considers the revenue trends described
above and no benefit from Ripple incentive fees, which were
$8.8 million in the second quarter of
2020.
Conference Call
MoneyGram International will host a conference call on
May 7, at 9:00
a.m. ET, to discuss its results. Alex Holmes, Chairman and CEO and Larry Angelilli, CFO will host the call.
Participant Dial-In
Numbers:
|
U.S.:
|
1-800-239-9838
|
International:
|
1-929-477-0402
|
Webcast:
|
public.viavid.com/index.php?id=144463
|
|
|
Replay:
|
U.S 1-844-512-2921 or
International 1-412-317-6671
|
Replay ID:
|
7162032
|
Replay is available
through May 14, 2021, 11:59 p.m. ET
|
About MoneyGram International, Inc.
MoneyGram is leading the evolution of digital P2P payments. With
a purpose-driven strategy to mobilize the movement of money, a
strong culture of fintech innovation, and leading customer-centric
capabilities, MoneyGram has grown to serve nearly 150 million
people across the globe over the last five years.
The Company leverages its modern, mobile, and API-driven
platform and collaborates with the world's leading brands to serve
consumers through MoneyGram Online (MGO), its direct-to-consumer
digital business, its global retail network and its emerging
embedded finance business for enterprise customers, MoneyGram as a
Service.
For more information, please visit ir.moneygram.com and follow
@MoneyGram.
Forward-Looking Statements
This communication contains forward-looking statements which are
protected as forward-looking statements under the Private
Securities Litigation Reform Act of 1995 that are not limited to
historical facts, but reflect MoneyGram's current beliefs,
expectations or intentions regarding future events and speak only
as of the date they are made. Words such as "may," "might," "will,"
"could," "should," "would," "expect," "plan," "project," "intend,"
"anticipate," "believe," "estimate," "predict," "potential,"
"pursuant," "target," "forecast," "outlook," "continue,"
"currently," and similar expressions are intended to identify such
forward-looking statements. The statements in this communication
that are not historical statements are forward-looking statements
within the meaning of the federal securities laws. Specific
forward-looking statements include, among others, statements
regarding the Company's projected results of operations and
specific factors expected to impact the Company's results of
operations. Forward-looking statements are subject to numerous
risks and uncertainties that are difficult to predict and many of
which are beyond MoneyGram's control, which could cause actual
results to differ materially from the results expressed or implied
by the statements.
These risks and uncertainties include, but are not limited
to:
• the impact of
the COVID-19 pandemic or future pandemics on our business,
including the potential for work stoppages, lockdowns,
shelter-in-place, or restricted movement guidelines, service
delays, lower consumer and commercial activity;
|
• our ability
to compete effectively;
|
• our ability
to maintain key agent or biller relationships, or a reduction in
business or transaction volume from these relationships, including
our largest agent, Walmart, whether through the introduction by
Walmart of additional competing "white label" branded money
transfer products or otherwise;
|
• our ability
to manage fraud risks from consumers or agents;
|
• the ability
of us and our agents and other commercial relationships to comply
with U.S. and international laws and regulations;
|
• litigation or
investigations involving us or our agents and other commercial
relationships, which could result in material settlements, fines or
penalties, termination of contracts, other administrative actions
or lawsuits and negative publicity;
|
• regulations
addressing consumer privacy, data use and security;
|
• our ability
to successfully develop and timely introduce new and enhanced
products and services and our investments in new products, services
or infrastructure changes;
|
• our ability
to manage risks associated with our international sales and
operations;
|
• our offering
of money transfer services through agents in regions that are
politically volatile;
|
• changes in
tax laws or an unfavorable outcome with respect to the audit of our
tax returns or tax positions, or a failure by us to establish
adequate reserves for tax events;
|
• our
substantial debt service obligations, significant debt covenant
requirements and credit ratings;
|
• major bank
failure or sustained financial market illiquidity, or illiquidity
at our clearing, cash management and custodial financial
institutions;
|
• the ability
of us and our agents to maintain adequate banking
relationships;
|
• a security or
privacy breach in systems, networks or databases on which we rely
and disruptions to our computer network systems and data
centers;
|
• weakness in
economic conditions, in both the U.S. and global
markets;
|
• a significant
change, material slow down or complete disruption of international
migration patterns;
|
• the financial
health of certain European countries or the secession of a country
from the European Union;
|
• our ability
to manage credit risks from our agents and official check financial
institution consumers;
|
• our ability
to adequately protect our brand and intellectual property rights
and to avoid infringing on the rights of others;
|
• our ability
to manage risks related to the operation of retail locations and
the acquisition or start-up of businesses;
|
• any
restructuring actions and cost reduction initiatives that we
undertake may not deliver the expected results and these actions
may adversely affect our business;
|
• our capital
structure;
|
• and
uncertainties described in the "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" sections of MoneyGram's public period reports filed
with the U.S. Securities and Exchange Commission (the SEC),
including MoneyGram's annual report on Form 10-K for the year ended
December 31, 2020, and subsequent quarterly reports on Form
10-Q.
|
Additional information concerning factors that could cause
actual results to differ materially from those in the
forward-looking statements is contained from time to time in
MoneyGram's SEC filings. MoneyGram's SEC filings may be obtained by
contacting MoneyGram, through MoneyGram's web site at
ir.moneygram.com or through the SEC's Electronic Data Gathering and
Analysis Retrieval System ("EDGAR") at www.sec.gov. MoneyGram
undertakes no obligation to publicly update or revise any
forward-looking statement.
Non-GAAP Measures
In addition to results presented in accordance with accounting
principles generally accepted in the
United States (GAAP), this news release and related tables
include certain non-GAAP financial measures, including a
presentation of EBITDA (earnings before interest, taxes,
depreciation and amortization, including agent signing bonus
amortization), Adjusted EBITDA (EBITDA adjusted for certain
significant items), Adjusted EBITDA margin, Adjusted Free Cash Flow
(Adjusted EBITDA less cash interest, cash taxes and cash payments
for capital expenditures and agent signing bonuses), constant
currency measures (which assume that amounts denominated in foreign
currencies are translated to the U.S. dollar at rates consistent
with those in the prior year), diluted adjusted income (loss) per
share and adjusted net income. In addition, we present adjusted
operating income and adjusted operating margin for our two
reporting segments. The following tables include a full
reconciliation of non-GAAP financial measures to the related GAAP
financial measures. The equivalent GAAP financial measures for
projected results are not provided, and projected results do not
reflect the potential impact of certain non-GAAP adjustments, which
include (but in future periods, may not be limited to) stock-based,
contingent and incentive compensation costs; compliance enhancement
program costs; direct monitor costs; legal and contingent matter
costs; restructuring and reorganization costs; currency changes;
and the tax effect of such items. We cannot reliably predict or
estimate if and when these types of costs, adjustments or changes
may occur or their impact to our financial statements. Accordingly,
a reconciliation of the non-GAAP financial measures to the
equivalent GAAP financial measures for projected results is not
available.
We believe that these non-GAAP financial measures provide useful
information to investors because they are an indicator of the
strength and performance of ongoing business operations. These
calculations are commonly used as a basis for investors, analysts
and other interested parties to evaluate and compare the operating
performance and value of companies within our industry. Finally,
EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Free Cash
Flow, constant currency, diluted adjusted income (loss) per share
and adjusted net income (loss) figures are financial and
performance measures used by management in reviewing results of
operations, forecasting, allocating resources or establishing
employee incentive programs. Although MoneyGram believes the above
non-GAAP financial measures enhance investors' understanding of its
business and performance, these non-GAAP financial measures should
not be considered in isolation or as substitutes for the
accompanying GAAP financial measures.
Description of Tables
Table One
|
-
|
Condensed
Consolidated Statements of Operations
|
Table Two
|
-
|
Segment
Results
|
Table
Three
|
-
|
Segment
Reconciliations
|
Table Four
|
-
|
Reconciliation of
Certain Non-GAAP Measures to Relevant GAAP Measures - EBITDA,
Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash
Flow
|
Table Five
|
-
|
Reconciliation of
Certain Non-GAAP Measures to Relevant GAAP Measures - Adjusted Net
Loss and Adjusted Diluted EPS
|
Table Six
|
-
|
Condensed
Consolidated Balance Sheets
|
Table
Seven
|
-
|
Condensed
Consolidated Statements of Cash Flows
|
CONTACTS
|
|
|
Investor
Relations:
|
|
Media
Relations:
|
214-979-1400
|
|
Stephen
Reiff
|
InvestorRelations@moneygram.com
|
|
media@moneygram.com
|
TABLE
ONE
|
MONEYGRAM
INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
|
|
|
|
(Amounts in
millions, except percentages and
per share
data)
|
|
Three Months Ended
March 31,
|
|
2021
vs
|
|
2021
|
|
2020
|
|
2020
|
|
|
|
|
|
|
|
REVENUE
|
|
|
|
|
|
|
Fee and other
revenue
|
|
$
|
308.1
|
|
|
$
|
280.8
|
|
|
$
|
27.3
|
|
Investment
revenue
|
|
2.0
|
|
|
10.1
|
|
|
(8.1)
|
|
Total
revenue
|
|
310.1
|
|
|
290.9
|
|
|
19.2
|
|
|
|
|
|
|
|
|
Total revenue change,
as reported
|
|
7
|
%
|
|
(8)
|
%
|
|
|
Total revenue change,
constant currency
|
|
3
|
%
|
|
(7)
|
%
|
|
|
|
|
|
|
|
|
|
COST OF
REVENUE
|
|
|
|
|
|
|
Commissions and other
fee expense
|
|
149.9
|
|
|
143.2
|
|
|
6.7
|
|
Investment commissions
expense
|
|
0.2
|
|
|
3.0
|
|
|
(2.8)
|
|
Direct transaction
expense
|
|
15.2
|
|
|
8.2
|
|
|
7.0
|
|
Total cost of
revenue
|
|
165.3
|
|
|
154.4
|
|
|
10.9
|
|
GROSS
PROFIT
|
|
144.8
|
|
|
136.5
|
|
|
8.3
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
Compensation and
benefits
|
|
62.2
|
|
|
53.4
|
|
|
8.8
|
|
Transaction and
operations support (1)
|
|
43.4
|
|
|
38.0
|
|
|
5.4
|
|
Occupancy, equipment
and supplies
|
|
15.5
|
|
|
14.9
|
|
|
0.6
|
|
Depreciation and
amortization
|
|
15.3
|
|
|
17.1
|
|
|
(1.8)
|
|
Total operating
expenses
|
|
136.4
|
|
|
123.4
|
|
|
13.0
|
|
OPERATING
INCOME
|
|
8.4
|
|
|
13.1
|
|
|
(4.7)
|
|
Other
expenses
|
|
|
|
|
|
|
Interest
expense
|
|
22.3
|
|
|
23.8
|
|
|
(1.5)
|
|
Other non-operating
expense
|
|
1.0
|
|
|
1.1
|
|
|
(0.1)
|
|
Total other
expenses
|
|
23.3
|
|
|
24.9
|
|
|
(1.6)
|
|
Loss before income
taxes
|
|
(14.9)
|
|
|
(11.8)
|
|
|
(3.1)
|
|
Income tax
expense
|
|
0.5
|
|
|
9.7
|
|
|
(9.2)
|
|
NET
LOSS
|
|
$
|
(15.4)
|
|
|
$
|
(21.5)
|
|
|
$
|
6.1
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per common share
|
|
$
|
(0.19)
|
|
|
$
|
(0.28)
|
|
|
$
|
0.09
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted-average outstanding common shares and equivalents used in
computing loss per common share
|
|
79.6
|
|
|
77.4
|
|
|
2.2
|
|
|
|
|
|
|
|
|
(1) Three months
ended March 31, 2020, includes Ripple market development fees of
$16.6 million offset by related transaction and trading expenses of
$4.5 million.
|
TABLE
TWO
|
MONEYGRAM
INTERNATIONAL, INC.
|
SEGMENT
RESULTS
|
(Unaudited)
|
|
|
|
|
|
|
|
Global Funds
Transfer
|
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months Ended
March 31,
|
|
2021
vs
|
|
2021
|
|
2020
|
|
2020
|
Money transfer
revenue
|
|
$
|
285.4
|
|
|
$
|
255.9
|
|
|
$
|
29.5
|
|
Bill payment
revenue
|
|
10.8
|
|
|
13.4
|
|
|
(2.6)
|
|
Total
revenue
|
|
$
|
296.2
|
|
|
$
|
269.3
|
|
|
$
|
26.9
|
|
|
|
|
|
|
|
|
Commissions and other
fee and direct transaction expenses
|
|
$
|
165.1
|
|
|
$
|
151.3
|
|
|
$
|
13.8
|
|
Gross
profit
|
|
$
|
131.1
|
|
|
$
|
118.0
|
|
|
$
|
13.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
6.0
|
|
|
$
|
6.7
|
|
|
$
|
(0.7)
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
2.0
|
%
|
|
2.5
|
%
|
|
|
|
|
|
|
|
|
|
Money transfer revenue
change, as reported
|
|
12
|
%
|
|
(6)
|
%
|
|
|
Money transfer revenue
change, constant currency
|
|
8
|
%
|
|
(5)
|
%
|
|
|
|
|
|
|
|
|
|
Financial Paper
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months Ended
March 31,
|
|
2021
vs
|
|
2021
|
|
2020
|
|
2020
|
Money order
revenue
|
|
$
|
10.4
|
|
|
$
|
12.1
|
|
|
$
|
(1.7)
|
|
Official check
revenue
|
|
3.5
|
|
|
9.5
|
|
|
(6.0)
|
|
Total
revenue
|
|
$
|
13.9
|
|
|
$
|
21.6
|
|
|
$
|
(7.7)
|
|
|
|
|
|
|
|
|
Investment
commissions expense
|
|
$
|
0.2
|
|
|
$
|
3.1
|
|
|
$
|
(2.9)
|
|
Gross
profit
|
|
$
|
13.7
|
|
|
$
|
18.5
|
|
|
$
|
(4.8)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
2.5
|
|
|
$
|
7.0
|
|
|
$
|
(4.5)
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
18.0
|
%
|
|
32.4
|
%
|
|
|
|
|
|
|
|
|
|
TABLE
THREE
|
MONEYGRAM
INTERNATIONAL, INC.
|
SEGMENT
RECONCILIATIONS
|
(Unaudited)
|
|
|
|
|
|
|
|
Global Funds
Transfer
|
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months Ended
March 31,
|
|
2021
vs
|
|
2021
|
|
2020
|
|
2020
|
|
|
|
|
|
|
|
Revenue (as
reported)
|
|
$
|
296.2
|
|
|
$
|
269.3
|
|
|
$
|
26.9
|
|
|
|
|
|
|
|
|
Operating income (as
reported)
|
|
$
|
6.0
|
|
|
$
|
6.7
|
|
|
$
|
(0.7)
|
|
|
|
|
|
|
|
|
Legal and contingent
matters
|
|
—
|
|
|
0.3
|
|
|
(0.3)
|
|
Restructuring and
reorganization costs
|
|
5.7
|
|
|
0.5
|
|
|
5.2
|
|
Compliance
enhancement program
|
|
0.9
|
|
|
1.6
|
|
|
(0.7)
|
|
Direct monitor
costs
|
|
3.8
|
|
|
4.8
|
|
|
(1.0)
|
|
Stock-based
compensation expense
|
|
1.7
|
|
|
1.8
|
|
|
(0.1)
|
|
Total
adjustments
|
|
12.1
|
|
|
9.0
|
|
|
3.1
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
|
$
|
18.1
|
|
|
$
|
15.7
|
|
|
$
|
2.4
|
|
|
|
|
|
|
|
|
Operating margin (as
reported)
|
|
2.0
|
%
|
|
2.5
|
%
|
|
|
Total
adjustments
|
|
4.1
|
%
|
|
3.3
|
%
|
|
|
Adjusted operating
margin
|
|
6.1
|
%
|
|
5.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Paper
Products
|
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months Ended
March 31,
|
|
2021
vs
|
|
2021
|
|
2020
|
|
2020
|
|
|
|
|
|
|
|
Revenue (as
reported)
|
|
$
|
13.9
|
|
|
$
|
21.6
|
|
|
$
|
(7.7)
|
|
|
|
|
|
|
|
|
Operating income (as
reported)
|
|
$
|
2.5
|
|
|
$
|
7.0
|
|
|
$
|
(4.5)
|
|
|
|
|
|
|
|
|
Restructuring and
reorganization costs
|
|
0.2
|
|
|
—
|
|
|
0.2
|
|
Compliance
enhancement program
|
|
0.2
|
|
|
0.4
|
|
|
(0.2)
|
|
Stock-based
compensation expense
|
|
0.1
|
|
|
0.2
|
|
|
(0.1)
|
|
Total
adjustments
|
|
0.5
|
|
|
0.6
|
|
|
(0.1)
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
|
$
|
3.0
|
|
|
$
|
7.6
|
|
|
$
|
(4.6)
|
|
|
|
|
|
|
|
|
Operating margin (as
reported)
|
|
18.0
|
%
|
|
32.4
|
%
|
|
|
Total
adjustments
|
|
3.6
|
%
|
|
2.8
|
%
|
|
|
Adjusted operating
margin
|
|
21.6
|
%
|
|
35.2
|
%
|
|
|
|
|
|
|
|
|
|
TABLE
FOUR
|
MONEYGRAM
INTERNATIONAL, INC.
|
RECONCILIATION OF
CERTAIN NON-GAAP MEASURES TO RELEVANT GAAP MEASURES
|
EBITDA, ADJUSTED
EBITDA, ADJUSTED EBITDA MARGIN AND ADJUSTED FREE CASH
FLOW
|
(Unaudited)
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months Ended
March 31,
|
|
2021
vs
|
|
2021
|
|
2020
|
|
2020
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
$
|
(14.9)
|
|
|
$
|
(11.8)
|
|
|
$
|
(3.1)
|
|
Interest
expense
|
|
22.3
|
|
|
23.8
|
|
|
(1.5)
|
|
Depreciation and
amortization
|
|
15.3
|
|
|
17.1
|
|
|
(1.8)
|
|
Signing bonus
amortization
|
|
14.3
|
|
|
12.5
|
|
|
1.8
|
|
EBITDA
|
|
37.0
|
|
|
41.6
|
|
|
(4.6)
|
|
|
|
|
|
|
|
|
Significant items
impacting EBITDA:
|
|
|
|
|
|
|
Restructuring and
reorganization costs
|
|
5.9
|
|
|
0.5
|
|
|
5.4
|
|
Direct monitor
costs
|
|
3.8
|
|
|
4.8
|
|
|
(1.0)
|
|
Stock-based,
contingent and incentive compensation
|
|
1.8
|
|
|
2.0
|
|
|
(0.2)
|
|
Compliance enhancement
program
|
|
1.1
|
|
|
2.0
|
|
|
(0.9)
|
|
Severance and related
costs
|
|
0.2
|
|
|
0.2
|
|
|
—
|
|
Legal and contingent
matters
|
|
0.1
|
|
|
0.4
|
|
|
(0.3)
|
|
Adjusted
EBITDA
|
|
$
|
49.9
|
|
|
$
|
51.5
|
|
|
$
|
(1.6)
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin (1)
|
|
16.1
|
%
|
|
17.7
|
%
|
|
(1.6)
|
%
|
|
|
|
|
|
|
|
Adjusted EBITDA
change, as reported
|
|
(3)
|
%
|
|
|
|
|
Adjusted EBITDA
change, constant
currency adjusted
|
|
(11)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
49.9
|
|
|
$
|
51.5
|
|
|
$
|
(1.6)
|
|
Cash payments for
interest
|
|
(11.9)
|
|
|
(17.6)
|
|
|
5.7
|
|
Cash payments for
taxes, net of refunds
|
|
2.7
|
|
|
(2.1)
|
|
|
4.8
|
|
Cash payments for
capital expenditures
|
|
(11.2)
|
|
|
(10.1)
|
|
|
(1.1)
|
|
Cash payments for
agent signing bonuses
|
|
(13.0)
|
|
|
(25.0)
|
|
|
12.0
|
|
Adjusted Free Cash
Flow
|
|
$
|
16.5
|
|
|
$
|
(3.3)
|
|
|
$
|
19.8
|
|
|
|
|
|
|
|
|
(1) Adjusted EBITDA
margin is calculated as Adjusted EBITDA divided by total
revenue.
|
TABLE
FIVE
|
MONEYGRAM
INTERNATIONAL, INC.
|
RECONCILIATION OF
CERTAIN NON-GAAP MEASURES TO RELEVANT GAAP MEASURES
|
ADJUSTED NET LOSS
AND ADJUSTED DILUTED EPS
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months Ended
March 31,
|
(Amounts in
millions, except per share data)
|
|
2021
|
|
2020
|
|
|
|
|
|
Net loss
|
|
$
|
(15.4)
|
|
|
$
|
(21.5)
|
|
Total adjustments
(1)
|
|
12.9
|
|
|
9.9
|
|
Tax impacts of
adjustments (2)
|
|
(3.0)
|
|
|
(2.3)
|
|
Valuation allowance
(3)
|
|
1.0
|
|
|
10.1
|
|
Adjusted net
loss
|
|
$
|
(4.5)
|
|
|
$
|
(3.8)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings loss
per common share
|
|
$
|
(0.19)
|
|
|
$
|
(0.28)
|
|
|
|
|
|
|
Diluted adjustments
per common share
|
|
0.13
|
|
|
0.23
|
|
|
|
|
|
|
Diluted adjusted loss
per common share
|
|
$
|
(0.06)
|
|
|
$
|
(0.05)
|
|
|
|
|
|
|
Diluted
weighted-average outstanding common shares
and equivalents
|
|
79.6
|
|
|
77.4
|
|
|
|
|
|
|
|
(1) See summary of
adjustments in Table Four - EBITDA, Adjusted EBITDA, Adjusted
EBITDA Margin and Adjusted Free Cash Flow.
|
(2) Tax rates used to
calculate the tax expense impact are based on the nature and
jurisdiction of each adjustment.
|
(3) Valuation
allowance recorded for deferred tax assets existing at the
beginning of the year.
|
TABLE
SIX
|
MONEYGRAM
INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
|
|
(Amounts in
millions, except share data)
|
|
March 31,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
152.8
|
|
|
$
|
196.1
|
|
Settlement
assets
|
|
3,667.0
|
|
|
3,702.9
|
|
Property and
equipment, net
|
|
142.7
|
|
|
148.1
|
|
Goodwill
|
|
442.2
|
|
|
442.2
|
|
Right-of-use
assets
|
|
54.5
|
|
|
55.1
|
|
Other
assets
|
|
128.4
|
|
|
129.7
|
|
Total
assets
|
|
$
|
4,587.6
|
|
|
$
|
4,674.1
|
|
LIABILITIES
|
|
|
|
|
Payment service
obligations
|
|
$
|
3,667.0
|
|
|
$
|
3,702.9
|
|
Debt, net
|
|
858.8
|
|
|
857.8
|
|
Pension and other
postretirement benefits
|
|
75.0
|
|
|
74.5
|
|
Lease
liabilities
|
|
58.0
|
|
|
59.1
|
|
Accounts payable and
other liabilities
|
|
188.0
|
|
|
216.8
|
|
Total
liabilities
|
|
4,846.8
|
|
|
4,911.1
|
|
STOCKHOLDERS'
DEFICIT
|
|
|
|
|
Common stock, $0.01
par value, 162,500,000 shares authorized, 80,273,419 and 72,530,770
shares issued, 79,741,398 and 72,517,539 shares outstanding at
March 31, 2021 and December 31, 2020, respectively
|
|
0.8
|
|
|
0.7
|
|
Additional paid-in
capital
|
|
1,297.8
|
|
|
1,296.0
|
|
Retained
loss
|
|
(1,490.8)
|
|
|
(1,475.3)
|
|
Accumulated other
comprehensive loss
|
|
(63.4)
|
|
|
(58.4)
|
|
Treasury stock:
532,021 and 13,231 shares at March 31, 2021 and December 31, 2020,
respectively
|
|
(3.6)
|
|
|
—
|
|
Total stockholders'
deficit
|
|
(259.2)
|
|
|
(237.0)
|
|
Total liabilities and
stockholders' deficit
|
|
$
|
4,587.6
|
|
|
$
|
4,674.1
|
|
|
|
|
|
|
TABLE
SEVEN
|
MONEYGRAM
INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
|
|
Three Months Ended
March 31,
|
(Amounts in
millions)
|
|
2021
|
|
2020
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net loss
|
|
$
|
(15.4)
|
|
|
$
|
(21.5)
|
|
Adjustments to
reconcile net loss to net cash used in operating
activities:
|
|
(11.5)
|
|
|
(4.9)
|
|
Net cash used in
operating activities
|
|
(26.9)
|
|
|
(26.4)
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Payments for capital
expenditures
|
|
(11.2)
|
|
|
(10.1)
|
|
Net cash used in
investing activities
|
|
(11.2)
|
|
|
(10.1)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Principal payments on
debt
|
|
(1.6)
|
|
|
(1.6)
|
|
Proceeds from
revolving credit facility
|
|
—
|
|
|
23.0
|
|
Payments to tax
authorities for stock-based compensation
|
|
(3.6)
|
|
|
(0.7)
|
|
Net cash (used in)
provided by financing activities
|
|
(5.2)
|
|
|
20.7
|
|
NET CHANGE IN CASH
AND CASH EQUIVALENTS
|
|
(43.3)
|
|
|
(15.8)
|
|
CASH AND CASH
EQUIVALENTS—Beginning of year
|
|
196.1
|
|
|
146.8
|
|
CASH AND CASH
EQUIVALENTS—End of period
|
|
$
|
152.8
|
|
|
$
|
131.0
|
|
|
|
|
|
|
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SOURCE MoneyGram