Total Company GAAP revenues grow 16%, or 13%
constant currency, to $1.3 billion; GAAP earnings per share (EPS)
of $0.54, adjusted EPS of $0.48
Digital money transfer revenues reach a new
quarterly high of over $265 million with more than $500 million
generated year-to-date
Announced divestiture of Western Union
Business Solutions, supporting the Company’s strategic focus on its
unique, global cross-border money transfer and payments platform
and digital capabilities to serve an array of partners and use
cases
Reaffirms 2021 adjusted financial
outlook
The Western Union Company (NYSE: WU), a global leader in
cross-border, cross-currency money movement and payments, today
reported second quarter financial results and reaffirmed key
components of its 2021 financial outlook, while also updating
certain metrics for the planned termination of the Company’s
pension plan, resulting in the recognition of non-cash expenses,
and the planned divestiture of Western Union Business Solutions. In
its announcement of the planned divestiture, Western Union
separately communicated today that it has reached a definitive
agreement to sell its Business Solutions business to Goldfinch
Partners, LLC (“Goldfinch”) and The Baupost Group (“Baupost”).
The Company’s second quarter revenue of $1.3 billion increased
16% on a reported basis, or 13% constant currency, compared to the
prior year period. While year-over-year revenue growth benefited
from a favorable comparison to the prior year period which was
impacted by COVID-19, sequential quarterly growth was also strong
led by improvement in retail money transfer and sustained growth in
digital money transfer, which grew to a new quarterly high of over
$265 million in revenue.
GAAP EPS in the second quarter was $0.54 compared to $0.39 in
the prior year period. The increase in GAAP EPS was driven by
revenue growth, the gain on an investment sale, and a lower
effective tax rate, partially offset by debt retirement expenses,
compensation-related expenses, and strategic investments in
marketing and technology.
Adjusted EPS was $0.48 compared to $0.41 in the prior year
period and was affected by the same factors impacting GAAP EPS
noted above excluding certain items, which are detailed in the
“Adjustment Items” section of this press release.
President and CEO Hikmet Ersek said, “Our second quarter results
put us on track to achieve our 2021 adjusted financial outlook with
strong top-line trends bolstered by continued growth in our digital
business, which we expect will generate over $1 billion in revenue
this year, and sequential improvement in our retail business. As we
look toward the second half of 2021, while we recognize potential
risks remain, we are optimistic that the business will continue to
deliver solid top-line growth.”
Ersek added, “With the planned sale of Western Union Business
Solutions, we will be fully focused on increasing our penetration
of the global cross-border consumer payments market, expanding our
open platform strategy, which enables us to serve multiple customer
segments and use cases, including through digital partnerships with
financial institutions, telecoms, and technology companies, and
increasing our total addressable market through a Western
Union-branded ecosystem strategy. As the foundation of our
strategy, we will continue to leverage our scalable, global
platform, which is rooted in industry-leading network and
compliance capabilities and our trusted brand.”
CFO Raj Agrawal stated, “We’re pleased with the momentum of our
business as revenues grew 16%. Additionally, we generated adjusted
margins of over 20% while continuing to make strategic investments.
Year-to-date, we have generated strong operating cash flow of
nearly $350 million and have returned more than $340 million to
shareholders through a combination of dividends and share
repurchases. Based on our continued progress, we are affirming key
aspects of our financial outlook and adjusted metrics for 2021
today.”
Q2 Business Highlights
- Consumer-to-Consumer (C2C) transactions increased 15% in the
quarter, while revenues increased 15% on a reported basis, or 12%
constant currency. Within the C2C segment, cross-border money
transfer revenues grew 18%. Transaction growth was led by Europe
and CIS, the Middle East, Latin America and the Caribbean, and U.S.
outbound.
- Digital money transfer revenues increased 22% on a reported
basis, or 19% constant currency, and represented 24% and 36% of
total C2C revenues and transactions, respectively. Digital money
transfer reached new quarterly highs for transactions, principal,
and revenues. Westernunion.com revenue grew 18% on a reported
basis, or 15% constant currency, including cross-border revenue
growth of 23%.
- Westernunion.com average monthly active users for the second
quarter increased 14% year-over-year. Westernunion.com was the most
downloaded mobile app among peer money transfer companies during
the second quarter, according to data provided by mobile app
marketing firm Sensor Tower1.
- Western Union Business Solutions revenues increased 25% on a
reported basis, or 16% constant currency, as the Company cycled
through the impact that COVID-19 had on the business during the
second quarter last year. Other revenues, which consists primarily
of retail bill payments in the U.S. and Argentina and money orders,
increased 8%.
______________________________
1 Data obtained from Sensor Tower App Install Market Share
Report
Q2 Financial Highlights
- The GAAP operating margin in the quarter was 19.8% compared to
19.9% in the prior year period. The decrease in the Company’s GAAP
operating margin was driven by a return to more normalized levels
of spending in 2021 as the Company had curtailed expenses in the
initial phase of COVID-19, with compensation-related expenses and
strategic investments in marketing and technology the primary
contributors to increased expenses in the quarter. The adjusted
operating margin in the quarter was 20.2% compared to 20.4% in the
prior year period and was affected by the same factors impacting
GAAP operating margin noted above excluding certain items, which
are detailed in the “Adjustment Items” section of this press
release.
- The GAAP effective tax rate in the quarter was 14.5% compared
to 16.2% in the prior year period, and the adjusted effective tax
rate was 14.2% in the quarter compared to 15.7% in the prior year
period. The decreases in the Company’s GAAP and adjusted effective
tax rates were primarily due to changes in pre-tax earnings
including differences in the composition between high-tax and
low-tax jurisdictions.
- Cash flow from operating activities was $349 million
year-to-date. The Company returned $171 million to shareholders in
the second quarter consisting of $96 million in dividends and $75
million of share repurchases.
Agreement to Divest Western Union
Business Solutions
Today the Company announced a definitive agreement to sell
Western Union Business Solutions to Goldfinch and Baupost for
approximately $910 million in cash. The Company established Western
Union Business Solutions following the acquisitions of Custom House
in 2009 and Travelex Global Business Payments in 2011. During the
last 12 months ended June 30, 2021, the Business Solution segment
generated $374 million of revenue (representing 7% of total Company
revenue), $64 million of EBITDA, and $33 million of operating
income.
The transaction is expected to close in two stages. In the first
closing, which is expected to be completed in early 2022, Western
Union Business Solutions, excluding the business that is operated
through Western Union International Bank in the European Union and
the United Kingdom, will transfer to an entity controlled by
Goldfinch and Baupost. In the second closing, which is expected to
be completed by late 2022, the remaining Western Union Business
Solutions business operated through Western Union International
Bank will transfer. The Company expects to receive in excess of
$800 million in proceeds, net of tax, from the transaction upon the
first closing2.
Following the transaction, the Company will evaluate options for
the use of proceeds, based on market conditions and opportunities,
and in accordance with its established capital allocation
priorities. These include:
- Reinvestment in the business to drive organic growth;
- Dividends;
- Acquisitions, including technological capabilities that support
our growth strategy; and
- Share repurchases.
Both closings are subject to requisite works council and trade
union consultations, regulatory approvals, and other customary
closing conditions.
______________________________
2 Estimated net proceeds are based on current tax policy and are
subject to certain regulatory and working capital adjustments
2021 Outlook
The Company today reaffirmed its 2021 financial outlook for
revenue growth and its remaining metrics on an adjusted basis. The
Company’s full year GAAP financial outlook was updated to reflect
the impact associated with the planned termination of the Company’s
pension plan and acquisition and divestiture costs associated with
the planned sale of Western Union Business Solutions. The Company’s
frozen pension plan was overfunded by more than $35 million as of
June 30, 2021, which prompted the Company to explore options
related to its termination. The pension plan termination, which is
expected to occur in the fourth quarter of 2021, will result in a
non-cash expense of approximately $110 million on a pre-tax basis
recorded to Other Expense, reducing GAAP EPS by approximately $0.22
as the Company accelerates the recognition of accumulated other
comprehensive losses associated with the plan.
The outlook provided today assumes moderate improvement in
macro-economic conditions as the quarters progress, in-line with
current prevailing macro-economic forecasts, with no material
changes related to the COVID-19 pandemic:
Revenue
GAAP: mid-to-high single digit
increase
Constant currency: mid-single digit
increase, excluding Argentina inflation impact
Operating Profit Margin (GAAP and
Adjusted)
GAAP: Approximately 21% (updated to
reflect additional expected acquisition and divestiture costs)
Adjusted: Approximately 21.5% (no
change from previous outlook)
Effective Tax Rate (GAAP and
Adjusted)
Mid-teens range
EPS
GAAP: In a range of $1.82 - $1.92
(updated to reflect the inclusion of pension plan non-cash
termination expenses and acquisition and divestiture costs)
Adjusted: In a range of $2.00 -
$2.10 (no change from previous outlook)
Adjustment Items
Adjusted operating profit metrics for 2021 periods exclude
acquisition and divestiture costs. Adjusted tax rate and earnings
per share metrics for 2021 periods exclude the following items net
of related taxes, as applicable: acquisition and divestiture costs,
the impact from the gain on an investment sale (second quarter),
debt retirement expenses (second quarter), and non-cash expenses
associated with the planned termination of the Company’s pension
plan (expected in the fourth quarter).
Adjusted operating profit, tax rate, and earnings per share
metrics for 2020 periods exclude restructuring expenses and
acquisition and divestiture costs, net of related taxes, as
applicable.
Although the Company has previously incurred and can reasonably
be expected to incur restructuring costs in the future, these
expenses were specific to the implementation of a global strategy
initiative and the Company has therefore provided adjusted
financial results that exclude these expenses.
Additional Statistics
Additional key statistics for the quarter and historical trends
can be found in the supplemental tables included with this press
release.
All amounts included in the supplemental tables to this press
release are rounded to the nearest tenth of a million, except as
otherwise noted. As a result, the percentage changes and margins
disclosed herein may not recalculate precisely using the rounded
amounts provided.
Non-GAAP Measures
Western Union presents a number of non-GAAP financial measures
because management believes that these metrics provide meaningful
supplemental information in addition to the GAAP metrics and
provide comparability and consistency to prior periods. Constant
currency results assume foreign revenues are translated from
foreign currencies to the U.S. dollar, net of the effect of foreign
currency hedges, at rates consistent with those in the prior
year.
Reconciliations of non-GAAP to comparable GAAP measures are
available in the accompanying schedules and in the “Investor
Relations” section of the Company’s website at
https://ir.westernunion.com.
Environmental, Social, and Governance
(ESG)
Western Union is committed to making a positive impact. For more
details on how Western Union is addressing some of the most
pressing issues facing society, our shared environment, and our
Company, please view our latest ESG report:
https://corporate.westernunion.com/esg
Investor and Analyst Conference Call
and Slide Presentation
The Company will host a conference call and webcast, including
slides, at 4:30 p.m. Eastern Time today. To listen to the
conference call via telephone, dial +1 (888) 317-6003 (U.S.) or +1
(412) 317-6061 (outside the U.S.) ten minutes prior to the start of
the call. The pass code is 3012717.
The conference call and accompanying slides will be available
via webcast at https://ir.westernunion.com. Registration for the
event is required, so please register at least five minutes prior
to the scheduled start time.
A webcast replay will be available at
https://ir.westernunion.com.
Please note: All statements made by Western Union officers on
this call are the property of Western Union and subject to
copyright protection. Other than the replay, Western Union has not
authorized, and disclaims responsibility for, any recording, replay
or distribution of any transcription of this call.
Safe Harbor Compliance Statement for Forward-Looking
Statements
This press release contains certain statements that are
forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are not guarantees
of future performance and involve certain risks, uncertainties, and
assumptions that are difficult to predict. Actual outcomes and
results may differ materially from those expressed in, or implied
by, our forward-looking statements. Words such as "expects,"
"intends," "targets," "anticipates," "believes," "estimates,"
"guides," "provides guidance," "provides outlook," and other
similar expressions or future or conditional verbs such as "may,"
"will," "should," "would," "could," and "might" are intended to
identify such forward-looking statements. Readers of this press
release of The Western Union Company (the "Company," "Western
Union," "we," "our," or "us") should not rely solely on the
forward-looking statements and should consider all uncertainties
and risks discussed in the Risk Factors section and throughout the
Annual Report on Form 10-K for the year ended December 31, 2020.
The statements are only as of the date they are made, and the
Company undertakes no obligation to update any forward-looking
statement.
Possible events or factors that could cause results or
performance to differ materially from those expressed in our
forward-looking statements include the following: (i) events
related to our business and industry, such as: changes in general
economic conditions and economic conditions in the regions and
industries in which we operate, including global economic downturns
and trade disruptions, or significantly slower growth or declines
in the money transfer, payment service, and other markets in which
we operate, including downturns or declines related to
interruptions in migration patterns or other events, such as public
health emergencies, epidemics, or pandemics such as COVID-19, civil
unrest, war, terrorism, or natural disasters, or non-performance by
our banks, lenders, insurers, or other financial services
providers; failure to compete effectively in the money transfer and
payment service industry, including among other things, with
respect to price, with global and niche or corridor money transfer
providers, banks and other money transfer and payment service
providers, including digital, mobile and internet-based services,
card associations, and card-based payment providers, and with
digital currencies and related protocols, and other innovations in
technology and business models; political conditions and related
actions, including trade restrictions and government sanctions, in
the United States and abroad, which may adversely affect our
business and economic conditions as a whole, including
interruptions of United States or other government relations with
countries in which we have or are implementing significant business
relationships with agents, clients, or other partners;
deterioration in customer confidence in our business, or in money
transfer and payment service providers generally; failure to
maintain our agent network and business relationships under terms
consistent with or more advantageous to us than those currently in
place; our ability to adopt new technology and develop and gain
market acceptance of new and enhanced services in response to
changing industry and consumer needs or trends; changes in, and
failure to manage effectively, exposure to foreign exchange rates,
including the impact of the regulation of foreign exchange spreads
on money transfers and payment transactions; any material breach of
security, including cybersecurity, or safeguards of or
interruptions in any of our systems or those of our vendors or
other third parties; cessation of or defects in various services
provided to us by third-party vendors; mergers, acquisitions, and
the integration of acquired businesses and technologies into our
Company, divestitures, and the failure to realize anticipated
financial benefits from these transactions, and events requiring us
to write down our goodwill; decisions to change our business mix;
our ability to realize the anticipated benefits from
restructuring-related initiatives, which may include decisions to
downsize or to transition operating activities from one location to
another, and to minimize any disruptions in our workforce that may
result from those initiatives; failure to manage credit and fraud
risks presented by our agents, clients, and consumers; changes in
tax laws or their interpretation, any subsequent regulation, and
potential related state income tax impacts, and unfavorable
resolution of tax contingencies; adverse rating actions by credit
rating agencies; our ability to protect our trademarks, patents,
copyrights, and other intellectual property rights and to defend
ourselves against potential intellectual property infringement
claims; our ability to attract and retain qualified key employees
and to manage our workforce successfully; material changes in the
market value or liquidity of securities that we hold; restrictions
imposed by our debt obligations; (ii) events related to our
regulatory and litigation environment, such as: liabilities or loss
of business resulting from a failure by us, our agents, or their
subagents to comply with laws and regulations and regulatory or
judicial interpretations thereof, including laws and regulations
designed to protect consumers, or detect and prevent money
laundering, terrorist financing, fraud, and other illicit activity;
increased costs, operational burden or loss of business due to
regulatory initiatives and changes in laws, including changes in
interpretations, resulting in increasing regulations and industry
practices and standards in the United States and abroad, affecting
us, our agents, or their subagents, our external business partners
such as financial institutions, or the banks with which we or our
agents maintain bank accounts needed to provide our services,
including related to anti-money laundering regulations, anti-fraud
measures, our licensing arrangements, customer due diligence, agent
and subagent due diligence, registration and monitoring
requirements, consumer protection requirements, remittances, and
immigration; liabilities, increased costs or loss of business and
unanticipated developments resulting from governmental
investigations and consent agreements with or enforcement actions
by regulators; liabilities resulting from litigation, including
class-action lawsuits and similar matters, and regulatory
enforcement actions, including costs, expenses, settlements, and
judgments; failure to comply with regulations and evolving industry
standards regarding consumer privacy, data use, the transfer of
personal data between jurisdictions, and information security,
including with respect to the General Data Protection Regulation in
the European Union and the California Consumer Privacy Act; failure
to comply with the Dodd-Frank Wall Street Reform and Consumer
Protection Act, as well as regulations issued pursuant to it and
the actions of the Consumer Financial Protection Bureau and similar
legislation and regulations enacted by other governmental
authorities in the United States and abroad related to consumer
protection and derivative transactions; effects of unclaimed
property laws or their interpretation or the enforcement thereof;
failure to maintain sufficient amounts or types of regulatory
capital or other restrictions on the use of our working capital to
meet the changing requirements of our regulators worldwide; changes
in accounting standards, rules and interpretations, or industry
standards affecting our business; and (iii) other events, such as:
catastrophic events; and management’s ability to identify and
manage these and other risks.
About Western Union
The Western Union Company (NYSE: WU) is a global leader in
cross-border, cross-currency money movement and payments. Western
Union’s platform provides seamless cross-border flows and its
leading global financial network bridges more than 200 countries
and territories and over 130 currencies. We connect businesses,
financial institutions, governments, and consumers through one of
the world’s widest reaching networks, accessing billions of bank
accounts, millions of digital wallets and cards, and more than
550,000 retail locations. Western Union connects the world to bring
boundless possibilities within reach. For more information, visit
www.westernunion.com.
WU-G
THE WESTERN UNION COMPANY KEY
STATISTICS (Unaudited)
Notes*
2Q20
3Q20
4Q20
FY2020
1Q21
2Q21
YTD 2Q21
Consolidated Metrics Consolidated revenues (GAAP) - YoY %
change
(17
)
%
(4
)
%
(3
)
%
(9
)
%
2
%
16
%
8
%
Consolidated revenues (non-GAAP, constant currency and excluding
Speedpay and Paymap) - YoY % change (a)
(11
)
%
(1
)
%
(1
)
%
(3
)
%
2
%
13
%
7
%
Consolidated operating margin (GAAP)
19.9
%
22.7
%
17.9
%
20.0
%
19.2
%
19.8
%
19.5
%
Consolidated operating margin, excluding restructuring-related
expenses and acquisition and divestiture costs (non-GAAP) (b)
20.4
%
23.5
%
18.8
%
20.8
%
19.3
%
20.2
%
19.8
%
EBITDA margin (non-GAAP) (c)
25.0
%
27.0
%
22.3
%
24.7
%
23.7
%
24.1
%
23.9
%
Consumer-to-Consumer (C2C) Segment Metrics Revenues
(GAAP) - YoY % change
(12
)
%
(1
)
%
0
%
(4
)
%
4
%
15
%
9
%
Revenues (non-GAAP, constant currency) - YoY % change (e)
(11
)
%
0
%
0
%
(3
)
%
2
%
12
%
7
%
Transactions (in millions)
68.0
77.3
78.4
290.5
73.0
78.0
151.0
Transactions - YoY % change
(8
)
%
6
%
6
%
0
%
9
%
15
%
12
%
Total principal ($- billions) $
21.9
$
26.9
$
26.7
$
96.1
$
25.7
$
27.9
$
53.6
Principal per transaction, as reported - YoY % change
7
%
13
%
14
%
9
%
15
%
11
%
13
%
Principal per transaction (constant currency) - YoY % change (f)
9
%
14
%
13
%
10
%
12
%
8
%
10
%
Cross-border principal, as reported - YoY % change
1
%
23
%
24
%
12
%
28
%
29
%
28
%
Cross-border principal (constant currency) - YoY % change (g)
3
%
24
%
23
%
13
%
26
%
25
%
25
%
Operating margin
21.8
%
24.6
%
20.5
%
21.9
%
19.6
%
20.7
%
20.2
%
Digital money transfer revenues (GAAP) - YoY % change (1)
48
%
45
%
36
%
38
%
45
%
22
%
32
%
Digital money transfer foreign currency translation impact (j)
2
%
1
%
(1
)
%
0
%
(1
)
%
(3
)
%
(2
)
%
Digital money transfer revenues (non-GAAP, constant currency) - YoY
% change (1)
50
%
46
%
35
%
38
%
44
%
19
%
30
%
Digital money transfer transactions - YoY % change
96
%
96
%
83
%
81
%
77
%
33
%
51
%
westernunion.com revenues (GAAP) - YoY % change (gg)
33
%
33
%
27
%
27
%
38
%
18
%
27
%
westernunion.com foreign currency translation impact (j)
1
%
(1
)
%
(1
)
%
0
%
(1
)
%
(3
)
%
(3
)
%
westernunion.com revenues (non-GAAP, constant currency) - YoY %
change (gg)
34
%
32
%
26
%
27
%
37
%
15
%
24
%
westernunion.com transactions - YoY % change (gg)
50
%
53
%
56
%
44
%
55
%
18
%
34
%
C2C Segment Regional Metrics - YoY % change NA region
revenues (GAAP) (aa), (bb)
(6
)
%
0
%
(3
)
%
(3
)
%
0
%
4
%
2
%
NA region foreign currency translation impact (j)
1
%
1
%
0
%
0
%
1
%
0
%
0
%
NA region revenues (non-GAAP, constant currency) (aa), (bb)
(5
)
%
1
%
(3
)
%
(3
)
%
1
%
4
%
2
%
NA region transactions (aa), (bb)
(7
)
%
1
%
(1
)
%
(3
)
%
1
%
3
%
2
%
EU & CIS region revenues (GAAP) (aa), (cc)
(10
)
%
3
%
3
%
(2
)
%
8
%
18
%
13
%
EU & CIS region foreign currency translation impact (j)
1
%
(2
)
%
(3
)
%
(1
)
%
(4
)
%
(8
)
%
(6
)
%
EU & CIS region revenues (non-GAAP, constant currency) (aa),
(cc)
(9
)
%
1
%
0
%
(3
)
%
4
%
10
%
7
%
EU & CIS region transactions (aa), (cc)
4
%
24
%
23
%
13
%
28
%
26
%
27
%
MEASA region revenues (GAAP) (aa), (dd)
(13
)
%
2
%
1
%
(2
)
%
1
%
19
%
9
%
MEASA region foreign currency translation impact (j)
1
%
0
%
(1
)
%
0
%
(1
)
%
(1
)
%
(1
)
%
MEASA region revenues (non-GAAP, constant currency) (aa), (dd)
(12
)
%
2
%
0
%
(2
)
%
0
%
18
%
8
%
MEASA region transactions (aa), (dd)
(1
)
%
15
%
12
%
7
%
13
%
22
%
17
%
LACA region revenues (GAAP) (aa), (ee)
(45
)
%
(21
)
%
(9
)
%
(22
)
%
3
%
70
%
29
%
LACA region foreign currency translation impact (j)
10
%
13
%
11
%
11
%
5
%
(2
)
%
3
%
LACA region revenues (non-GAAP, constant currency) (aa), (ee)
(35
)
%
(8
)
%
2
%
(11
)
%
8
%
68
%
32
%
LACA region transactions (aa), (ee)
(41
)
%
(21
)
%
(13
)
%
(20
)
%
(8
)
%
42
%
13
%
APAC region revenues (GAAP) (aa), (ff)
(14
)
%
4
%
8
%
(3
)
%
9
%
20
%
14
%
APAC region foreign currency translation impact (j)
1
%
1
%
(2
)
%
0
%
(6
)
%
(7
)
%
(6
)
%
APAC region revenues (non-GAAP, constant currency) (aa), (ff)
(13
)
%
5
%
6
%
(3
)
%
3
%
13
%
8
%
APAC region transactions (aa), (ff)
(18
)
%
(6
)
%
(3
)
%
(10
)
%
(2
)
%
3
%
0
%
% of C2C Revenue NA region revenues (aa), (bb)
41
%
38
%
37
%
38
%
37
%
37
%
37
%
EU & CIS region revenues (aa), (cc)
32
%
33
%
33
%
33
%
33
%
33
%
33
%
MEASA region revenues (aa), (dd)
15
%
16
%
15
%
15
%
16
%
15
%
15
%
LACA region revenues (aa), (ee)
6
%
7
%
8
%
8
%
8
%
9
%
9
%
APAC region revenues (aa), (ff)
6
%
6
%
7
%
6
%
6
%
6
%
6
%
Digital money transfer revenues (aa)
22
%
21
%
21
%
20
%
23
%
24
%
23
%
Business Solutions Segment Metrics Revenues (GAAP) -
YoY % change
(17
)
%
(11
)
%
(8
)
%
(8
)
%
(2
)
%
25
%
10
%
Revenues (non-GAAP, constant currency) - YoY % change (h)
(15
)
%
(13
)
%
(11
)
%
(8
)
%
(8
)
%
16
%
3
%
Operating margin
1.6
%
10.5
%
(0.2
)
%
6.9
%
13.1
%
10.9
%
12.0
%
Other (primarily bill payments businesses in Argentina
and the United States and money orders) Revenues (GAAP) - YoY %
change
(56
)
%
(33
)
%
(29
)
%
(48
)
%
(18
)
%
8
%
(7
)
%
Operating margin
21.9
%
20.0
%
15.8
%
21.2
%
22.6
%
16.2
%
19.4
%
% of Total Company Revenue (GAAP)
Consumer-to-Consumer segment revenues
88
%
88
%
88
%
87
%
87
%
87
%
87
%
Business Solutions segment revenues
7
%
7
%
7
%
8
%
8
%
8
%
8
%
Other revenues
5
%
5
%
5
%
5
%
5
%
5
%
5
%
______________________________
(1)
Represents revenue from transactions conducted and funded through
westernunion.com and transactions initiated on internet and mobile
applications hosted by the Company’s third-party white label or
co-branded digital partners.
*
See the “Notes to Key Statistics” section of the press release for
the applicable Note references and the reconciliation of non-GAAP
financial measures, unless already reconciled herein.
THE
WESTERN UNION COMPANY CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (Unaudited) (in
millions, except per share amounts)
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
% Change
2021
2020
% Change
Revenues $
1,289.7
$
1,114.7
16
%
$
2,499.7
$
2,304.7
8
%
Expenses: Cost of services
755.0
662.2
14
%
1,461.0
1,345.6
9
%
Selling, general, and administrative
279.8
230.7
21
%
551.0
504.1
9
%
Total operating expenses (a)
1,034.8
892.9
16
%
2,012.0
1,849.7
9
%
Operating income
254.9
221.8
15
%
487.7
455.0
7
%
Other income/(expense): Interest income
0.3
0.8
(59
)
%
0.7
2.4
(70
)
%
Interest expense
(25.6
)
(29.3
)
(13
)
%
(54.0
)
(62.2
)
(13
)
%
Other income/(expense), net
30.5
(0.1
)
(b)
28.6
(0.1
)
(b) Total other income/(expense), net
5.2
(28.6
)
(b)
(24.7
)
(59.9
)
(59
)
%
Income before income taxes
260.1
193.2
35
%
463.0
395.1
17
%
Provision for income taxes
37.6
31.3
20
%
58.7
56.5
4
%
Net income $
222.5
$
161.9
37
%
$
404.3
$
338.6
19
%
Earnings per share: Basic $
0.54
$
0.39
38
%
$
0.98
$
0.82
20
%
Diluted $
0.54
$
0.39
38
%
$
0.98
$
0.81
21
%
Weighted-average shares outstanding: Basic
409.3
411.5
410.5
412.9
Diluted
411.5
413.6
412.9
415.9
______________________________ (a) For the three and six months
ended June 30, 2020, the Company incurred $5.2 million and $15.7
million, respectively, of expenses related to its restructuring
plan, the majority of which were related to consulting service
fees, severance, and other costs. For the three and six months
ended June 30, 2020, $0.8 million and $1.7 million, respectively,
were included within Cost of services. For the three and six months
ended June 30, 2020, $4.4 million and $14.0 million, respectively,
were included within Selling, general, and administrative. (b)
Calculation not meaningful.
THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions, except per share amounts)
June 30,
December 31,
2021
2020
Assets Cash and cash equivalents $
1,061.4
$
1,428.2
Settlement assets
3,636.8
3,821.4
Property and equipment, net of accumulated depreciation of $672.8
and $659.9, respectively
141.4
150.4
Goodwill
2,566.6
2,566.6
Other intangible assets, net of accumulated amortization of
$1,089.6 and $1,044.6, respectively
499.7
505.0
Other assets
1,072.2
1,024.7
Total assets $
8,978.1
$
9,496.3
Liabilities and stockholders' equity Liabilities: Accounts
payable and accrued liabilities $
499.9
$
500.9
Settlement obligations
3,636.8
3,821.4
Income taxes payable
861.2
928.9
Deferred tax liability, net
187.7
188.9
Borrowings
2,996.8
3,067.2
Other liabilities
509.4
802.4
Total liabilities
8,691.8
9,309.7
Stockholders' equity: Preferred stock, $1.00 par value; 10
shares authorized; no shares issued
—
—
Common stock, $0.01 par value; 2,000 shares authorized; 407.0
shares and 411.2 shares issued and outstanding as of June 30, 2021
and December 31, 2020, respectively
4.1
4.1
Capital surplus
919.5
885.1
Accumulated deficit
(498.0
)
(543.1
)
Accumulated other comprehensive loss
(139.3
)
(159.5
)
Total stockholders' equity
286.3
186.6
Total liabilities and stockholders' equity $
8,978.1
$
9,496.3
THE WESTERN UNION COMPANY CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited) (in
millions)
Six Months Ended
June 30,
2021
2020
Cash flows from operating activities Net income $
404.3
$
338.6
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation
26.0
32.0
Amortization
83.0
83.3
Gain on the sale of shares held as a minority investor
(47.9
)
—
Other non-cash items, net
80.1
63.9
Increase/(decrease) in cash, resulting from changes in: Other
assets
(84.5
)
(16.6
)
Accounts payable and accrued liabilities
(29.8
)
(130.9
)
Income taxes payable
(66.5
)
(19.2
)
Other liabilities
(15.2
)
(3.3
)
Net cash provided by operating activities
349.5
347.8
Cash flows from investing activities Payments for
capitalized contract costs
(82.2
)
(46.0
)
Payments for internal use software
(45.2
)
(22.3
)
Purchases of property and equipment
(17.9
)
(15.9
)
Proceeds from the sale of former corporate headquarters
—
44.2
Proceeds from the sale of shares held as a minority investor
50.9
—
Regulatory deposit made to purchase the ownership interest in stc
pay
(200.0
)
—
Other investing activities
(2.9
)
(4.2
)
Net cash used in investing activities
(297.3
)
(44.2
)
Cash flows from financing activities Cash dividends and
dividend equivalents paid
(193.5
)
(184.9
)
Common stock repurchased
(160.5
)
(237.7
)
Net proceeds from/(repayments of) commercial paper
185.0
(145.0
)
Net proceeds from issuance of borrowings
891.7
—
Principal payments on borrowings
(1,150.0
)
—
Make-whole premium on early extinguishment of debt
(14.3
)
—
Proceeds from exercise of options
11.6
1.5
Other financing activities
4.0
(0.7
)
Net cash used in financing activities
(426.0
)
(566.8
)
Net change in cash, cash equivalents, and restricted cash
(373.8
)
(263.2
)
Cash, cash equivalents, and restricted cash at beginning of period
1,447.4
1,456.8
Cash, cash equivalents, and restricted cash at end of period (a) $
1,073.6
$
1,193.6
__________________________ (a) As of June 30, 2021 and 2020, the
Company had $12.2 and $12.0 million, respectively, of restricted
cash.
THE WESTERN UNION COMPANY SUMMARY SEGMENT DATA
(Unaudited) (in millions)
Three Months Ended
Six Months Ended
June 30,
June 30,
2021
2020
% Change
2021
2020
% Change
Revenues: Consumer-to-Consumer $
1,127.1
$
976.6
15
%
$
2,178.0
$
1,992.0
9
%
Business Solutions
99.3
79.4
25
%
195.8
177.8
10
%
Other (a)
63.3
58.7
8
%
125.9
134.9
(7
)
%
Total consolidated revenues $
1,289.7
$
1,114.7
16
%
$
2,499.7
$
2,304.7
8
%
Segment operating income: Consumer-to-Consumer $
233.8
$
212.8
10
%
$
439.9
$
422.7
4
%
Business Solutions
10.9
1.3
(c)
23.5
15.2
55
%
Other (a)
10.2
12.9
(20
)
%
24.3
32.8
(25
)
%
Total segment operating income
254.9
227.0
12
%
487.7
470.7
4
%
Restructuring-related expenses (b)
—
(5.2
)
(c)
—
(15.7
)
(c) Total consolidated operating income $
254.9
$
221.8
15
%
$
487.7
$
455.0
7
%
Segment operating income margin Consumer-to-Consumer
20.7
%
21.8
%
(1.1
)
%
20.2
%
21.2
%
(1.0
)
%
Business Solutions
10.9
%
1.6
%
9.3
%
12.0
%
8.5
%
3.5
%
Other (a)
16.2
%
21.9
%
(5.7
)
%
19.4
%
24.3
%
(4.9
)
%
______________________________ (a) Other primarily includes the
Company’s bill payment services which facilitate payments from
consumers to businesses and other organizations and the Company’s
money order services. (b) Restructuring-related expenses have been
excluded from the measurement of segment operating income provided
to the chief operating decision maker for purposes of assessing
segment performance and decision making with respect to resource
allocation. (c) Calculation not meaningful.
THE WESTERN UNION
COMPANY NOTES TO KEY STATISTICS (in millions, unless
indicated otherwise) (Unaudited) Western Union’s
management believes the non-GAAP financial measures presented
provide meaningful supplemental information regarding the Company’s
operating results to assist management, investors, analysts, and
others in understanding the Company’s financial results and to
better analyze trends in the Company’s underlying business because
they provide consistency and comparability to prior periods.
A non-GAAP financial measure should not be considered in isolation
or as a substitute for the most comparable GAAP financial measure.
A non-GAAP financial measure reflects an additional way of viewing
aspects of the Company’s operations that, when viewed with the
Company’s GAAP results and the reconciliation to the corresponding
GAAP financial measure, provides a more complete understanding of
the Company’s business. Users of the financial statements are
encouraged to review the Company’s financial statements and
publicly-filed reports in their entirety and not to rely on any
single financial measure. A reconciliation of non-GAAP financial
measures to the most directly comparable GAAP financial measures is
included below, where not previously reconciled above.
Three
Months Ended June 30, 2021 Notes Revenues
OperatingIncome IncomeBeforeIncome Taxes Provision
forIncome Taxes Net Income DilutedEarningsper
Share (in millions, except per share amounts) Reported results
(GAAP) $
1,289.7
$
254.9
$
260.1
$
37.6
$
222.5
$
0.54
Acquisition and divestiture costs and related tax benefit (n)
—
5.6
5.6
1.3
4.3
0.01
Gain on investment sale and related tax expense (o)
—
—
(47.9
)
(8.3
)
(39.6
)
(0.10
)
Debt extinguishment costs and related tax benefit (p)
—
—
14.8
2.5
12.3
0.03
Adjusted results (non-GAAP) $
1,289.7
$
260.5
$
232.6
$
33.1
$
199.5
$
0.48
Foreign currency translation impact (j)
(29.4
)
Revenues, constant currency adjusted (non-GAAP) $
1,260.3
Three Months Ended June 30, 2020 Notes
Revenues OperatingIncome IncomeBeforeIncome
Taxes Provision forIncome Taxes Net Income
DilutedEarningsper Share (in millions, except per share
amounts) Reported results (GAAP) $
1,114.7
$
221.8
$
193.2
$
31.3
$
161.9
$
0.39
Restructuring related expenses and related tax benefit (m)
—
5.2
5.2
(0.3
)
5.5
0.02
Acquisition and divestiture costs and related tax benefit (n)
—
0.7
0.7
0.1
0.6
—
Adjusted results (non-GAAP) $
1,114.7
$
227.7
$
199.1
$
31.1
$
168.0
$
0.41
Quarter over quarter growth/(decline) (GAAP)
16
%
15
%
35
%
20
%
37
%
38
%
Quarter over quarter growth/(decline) (non-GAAP)
13
%
14
%
17
%
6
%
19
%
17
%
Six Months Ended June 30, 2021 Notes
Revenues OperatingIncome IncomeBeforeIncome
Taxes Provision forIncome Taxes Net Income
DilutedEarningsper Share (in millions, except per share
amounts) Reported results (GAAP) $
2,499.7
$
487.7
$
463.0
$
58.7
$
404.3
$
0.98
Acquisition and divestiture costs and related tax benefit (n)
—
6.5
6.5
1.5
5.0
0.02
Gain on investment sale and related tax expense (o)
—
—
(47.9
)
(8.3
)
(39.6
)
(0.10
)
Debt extinguishment costs and related tax benefit (p)
—
—
14.8
2.5
12.3
0.03
Adjusted results (non-GAAP) $
2,499.7
$
494.2
$
436.4
$
54.4
$
382.0
$
0.93
Foreign currency translation impact (j)
(30.3
)
Revenues, constant currency adjusted (non-GAAP) $
2,469.4
Six Months Ended June 30, 2020 Notes
Revenues OperatingIncome IncomeBeforeIncome
Taxes Provision forIncome Taxes Net Income
DilutedEarningsper Share (in millions, except per share
amounts) Reported results (GAAP) $
2,304.7
$
455.0
$
395.1
$
56.5
$
338.6
$
0.81
Restructuring related expenses and related tax benefit (m)
—
15.7
15.7
1.0
14.7
0.04
Acquisition and divestiture costs and related tax benefit (n)
—
0.7
0.7
0.1
0.6
—
Adjusted results (non-GAAP) $
2,304.7
$
471.4
$
411.5
$
57.6
$
353.9
$
0.85
Year over year growth/(decline) (GAAP)
8
%
7
%
17
%
4
%
19
%
21
%
Year over year growth/(decline) (non-GAAP)
7
%
5
%
6
%
(6
)
%
8
%
9
%
THE WESTERN UNION COMPANY
NOTES TO KEY STATISTICS (in millions, unless indicated otherwise)
(Unaudited)
Notes
2Q20
3Q20
4Q20
FY2020
1Q21
2Q21
YTD 2Q21
Consolidated Metrics (a) Revenues (GAAP) $
1,114.7
$
1,258.5
$
1,271.8
$
4,835.0
$
1,210.0
$
1,289.7
$
2,499.7
Foreign currency translation impact (j)
46.4
41.1
22.4
157.2
(0.9
)
(29.4
)
(30.3
)
Revenues (non-GAAP, constant currency) $
1,161.1
$
1,299.6
$
1,294.2
$
4,992.2
$
1,209.1
$
1,260.3
$
2,469.4
Prior year revenues (GAAP) $
1,340.5
$
1,306.9
$
1,307.7
$
5,292.1
$
1,190.0
$
1,114.7
$
2,304.7
Less prior year revenues from Speedpay and Paymap divestitures (k)
(38.8
)
N/A
N/A
(130.7
)
N/A
N/A
N/A
Prior year revenues, adjusted for divestitures (non-GAAP) $
1,301.7
$
1,306.9
$
1,307.7
$
5,161.4
$
1,190.0
$
1,114.7
$
2,304.7
Revenues (GAAP) - YoY % Change
(17
)
%
(4
)
%
(3
)
%
(9
)
%
2
%
16
%
8
%
Revenues, constant currency and adjusted for divestitures
(non-GAAP) - YoY % Change
(11
)
%
(1
)
%
(1
)
%
(3
)
%
2
%
13
%
7
%
(b) Operating income (GAAP) $
221.8
$
285.2
$
227.1
$
967.3
$
232.8
$
254.9
$
487.7
Restructuring-related expenses (m)
5.2
9.1
12.0
36.8
N/A
N/A
N/A
Acquisition and divestiture costs (n)
0.7
1.5
0.3
2.5
0.9
5.6
6.5
Operating income, adjusted (non-GAAP) $
227.7
$
295.8
$
239.4
$
1,006.6
$
233.7
$
260.5
$
494.2
Operating margin (GAAP)
19.9
%
22.7
%
17.9
%
20.0
%
19.2
%
19.8
%
19.5
%
Operating margin, adjusted (non-GAAP)
20.4
%
23.5
%
18.8
%
20.8
%
19.3
%
20.2
%
19.8
%
(c) Operating income (GAAP) $
221.8
$
285.2
$
227.1
$
967.3
$
232.8
$
254.9
$
487.7
Depreciation and amortization
57.1
54.2
56.1
225.6
53.4
55.6
109.0
EBITDA (non-GAAP) (l) $
278.9
$
339.4
$
283.2
$
1,192.9
$
286.2
$
310.5
$
596.7
Operating margin (GAAP)
19.9
%
22.7
%
17.9
%
20.0
%
19.2
%
19.8
%
19.5
%
EBITDA margin (non-GAAP)
25.0
%
27.0
%
22.3
%
24.7
%
23.7
%
24.1
%
23.9
%
(d) Effective tax rate (GAAP)
16
%
12
%
11
%
13
%
10
%
14
%
13
%
Impact from restructuring-related expenses (m)
0
%
1
%
1
%
0
%
N/A
N/A
N/A
Impact from acquisition and divestiture costs (n)
0
%
0
%
0
%
0
%
0
%
0
%
0
%
Impact from gain on investment sale (o)
N/A
N/A
N/A
N/A
N/A
0
%
(1
)
%
Impact from debt extinguishment costs (p)
N/A
N/A
N/A
N/A
N/A
0
%
0
%
Effective tax rate, adjusted (non-GAAP)
16
%
13
%
12
%
13
%
10
%
14
%
12
%
C2C Segment Metrics (e) Revenues (GAAP) $
976.6
$
1,106.5
$
1,121.5
$
4,220.0
$
1,050.9
$
1,127.1
$
2,178.0
Foreign currency translation impact (j)
18.4
11.1
(1.2
)
41.2
(11.1
)
(32.1
)
(43.2
)
Revenues (non-GAAP, constant currency) $
995.0
$
1,117.6
$
1,120.3
$
4,261.2
$
1,039.8
$
1,095.0
$
2,134.8
Prior year revenues (GAAP) $
1,112.9
$
1,113.0
$
1,125.0
$
4,407.8
$
1,015.4
$
976.6
$
1,992.0
Revenues (GAAP) - YoY % change
(12
)
%
(1
)
%
0
%
(4
)
%
4
%
15
%
9
%
Revenues (non-GAAP, constant currency) - YoY % change
(11
)
%
0
%
0
%
(3
)
%
2
%
12
%
7
%
(f) Principal per transaction, as reported ($- dollars) $
322
$
348
$
341
$
331
$
353
$
357
$
355
Foreign currency translation impact ($- dollars) (j)
7
1
(2
)
2
(7
)
(10
)
(9
)
Principal per transaction (constant currency) ($- dollars) $
329
$
349
$
339
$
333
$
346
$
347
$
346
Prior year principal per transaction, as reported ($- dollars) $
303
$
307
$
300
$
303
$
308
$
322
$
315
Principal per transaction, as reported - YoY % change
7
%
13
%
14
%
9
%
15
%
11
%
13
%
Principal per transaction (constant currency) - YoY % change
9
%
14
%
13
%
10
%
12
%
8
%
10
%
(g) Cross-border principal, as reported ($- billions) $
20.7
$
25.5
$
25.3
$
90.6
$
24.5
$
26.6
$
51.1
Foreign currency translation impact ($- billions) (j)
0.4
—
(0.1
)
0.6
(0.5
)
(0.7
)
(1.2
)
Cross-border principal (constant currency) ($- billions) $
21.1
$
25.5
$
25.2
$
91.2
$
24.0
$
25.9
$
49.9
Prior year cross-border principal, as reported ($- billions) $
20.5
$
20.6
$
20.5
$
80.7
$
19.1
$
20.7
$
39.8
Cross-border principal, as reported - YoY % change
1
%
23
%
24
%
12
%
28
%
29
%
28
%
Cross-border principal (constant currency) - YoY % change
3
%
24
%
23
%
13
%
26
%
25
%
25
%
Business Solutions Segment Metrics (h) Revenues
(GAAP) $
79.4
$
89.1
$
89.2
$
356.1
$
96.5
$
99.3
$
195.8
Foreign currency translation impact (j)
2.0
(1.9
)
(2.4
)
(0.1
)
(5.6
)
(7.2
)
(12.8
)
Revenues (non-GAAP, constant currency) $
81.4
$
87.2
$
86.8
$
356.0
$
90.9
$
92.1
$
183.0
Prior year revenues (GAAP) $
95.6
$
100.6
$
97.0
$
388.8
$
98.4
$
79.4
$
177.8
Revenues (GAAP) - YoY % change
(17
)
%
(11
)
%
(8
)
%
(8
)
%
(2
)
%
25
%
10
%
Revenues (non-GAAP, constant currency) - YoY % change
(15
)
%
(13
)
%
(11
)
%
(8
)
%
(8
)
%
16
%
3
%
(i) Operating income/(loss) (GAAP) $
1.3
$
9.4
$
(0.2
)
$
24.4
$
12.6
$
10.9
$
23.5
Depreciation and amortization
9.3
9.3
8.1
36.1
6.9
6.8
13.7
EBITDA (non-GAAP) (l) $
10.6
$
18.7
$
7.9
$
60.5
$
19.5
$
17.7
$
37.2
Operating income margin (GAAP)
1.6
%
10.5
%
(0.2
)
%
6.9
%
13.1
%
10.9
%
12.0
%
EBITDA margin (non-GAAP)
13.2
%
21.1
%
8.8
%
17.0
%
20.2
%
17.8
%
19.0
%
2021 Consolidated Outlook Metrics Range
Earnings per share (GAAP) ($- dollars) $
1.82
$
1.92
Pension plan termination charge (q)
0.22
0.22
Gain on an investment sale (o)
(0.10
)
(0.10
)
Debt extinguishment costs (p)
0.03
0.03
Acquisition and divestiture costs (n)
0.03
0.03
Earnings per share, adjusted, excluding the expected termination of
pension plan, gain on an investment sale, debt extinguishment
costs, and acquisition and divestiture costs (non-GAAP) ($-
dollars) $
2.00
$
2.10
Operating margin (GAAP)
21.0
%
Impact from acquisition and divestiture costs (n)
0.5
%
Operating margin, adjusted, excluding acquisition and divestiture
costs (non-GAAP)
21.5
%
THE WESTERN UNION COMPANY NOTES TO KEY STATISTICS
(in millions, unless indicated otherwise) (Unaudited)
Non-GAAP related notes:
(j)
Represents the impact from the fluctuation in exchange rates
between all foreign currency denominated amounts and the United
States dollar. Constant currency results exclude any benefit or
loss caused by foreign exchange fluctuations between foreign
currencies and the United States dollar, net of foreign currency
hedges, which would not have occurred if there had been a constant
exchange rate. The Company believes that this measure provides
management and investors with information about revenue results and
trends that eliminates currency volatility while increasing the
comparability of the Company's underlying results and trends.
(k)
On May 9, 2019, the Company completed the sale of its United States
electronic bill payments business known as “Speedpay” to ACI
Worldwide Corp. and ACW Worldwide, Inc. ("ACI") for approximately
$750 million in cash. In addition, on May 6, 2019, the Company
completed the sale of Paymap Inc. ("Paymap"), which provides
electronic mortgage bill payment services, for contingent
consideration and immaterial cash proceeds received at closing.
Both Speedpay and Paymap were included as a component of "Other" in
the Company’s segment reporting. 2019 revenues have been adjusted
to exclude the carved out financial information for Speedpay and
Paymap to compare the year-over-year revenue change. These
financial measures are non-GAAP measures and should not be
considered a substitute for the GAAP measures. The Company has
included this information because management believes that
presenting these measures as adjusted to exclude divestitures will
provide investors with a more meaningful comparison of results
within the periods presented.
(l)
Earnings before Interest, Taxes, Depreciation, and Amortization
(“EBITDA”) results from taking operating income and adjusting for
depreciation and amortization expenses. EBITDA results provide an
additional performance measurement calculation which helps
neutralize the operating income effect of assets acquired in prior
periods.
(m)
Represents impact from expenses incurred in connection with an
overall restructuring plan, approved by the Board of Directors on
August 1, 2019, to improve the Company's business processes and
cost structure by reducing headcount and consolidating various
facilities. While certain of these expenses are identifiable to the
Company's business segments, primarily to the Company's
Consumer-to-Consumer segment, they have been excluded from the
measurement of segment operating income provided to the Chief
Operating Decision Maker for purposes of assessing segment
performance and decision making with respect to resource
allocation. These expenses are therefore excluded from the
Company's segment operating income results. While these expenses
are specific to this initiative, the types of expenses related to
this initiative are similar to expenses that the Company has
previously incurred and can reasonably be expected to incur in the
future. The Company believes that, by excluding the effects of
these charges that can impact operating trends, management and
investors are provided with a measure that increases the
comparability of the Company's underlying operating results. As of
December 31, 2020, all expenses associated with this plan have been
incurred.
(n)
Represents the impact from expenses incurred in connection with the
Company's acquisition and divestiture activity, including for the
review and closing of these transactions. Although the Company's
acquisition and divestiture costs incurred in the first quarter of
2021 were not material, they have been included for comparative
purposes. The Company believes that, by excluding the effects of
these charges that can impact operating trends, management and
investors are provided with a measure that increases the
comparability of the Company's underlying operating results.
(o)
On April 12, 2021, the Company sold a substantial majority of the
shares it held as a minority investor in a private company for cash
proceeds of $50.9 million. As a result, the Company recorded a
pre-tax gain of approximately $48 million to Other
income/(expense), net, in the second quarter of 2021. The gain on
the sale and the income taxes on the gain have been removed from
adjusted results. Management believes that presenting the Company's
2021 earnings per share outlook as adjusted to exclude this gain
will provide investors with a more meaningful comparison of results
with the historical periods presented.
(p)
On April 1, 2021, the Company repaid $500 million of aggregate
principal amount of 3.6% unsecured notes due in 2022 and incurred
approximately $14.8 million of costs, excluding accrued interest,
in connection with the repayment. The cost associated with the
repayment was recorded to Other income/(expense), net, in the
second quarter of 2021. The costs associated with the payment and
related tax benefit have been removed from adjusted results.
Management believes that presenting the Company's 2021 earnings per
share outlook as adjusted to exclude these costs will provide
investors with a more meaningful comparison of results with the
historical periods presented.
(q)
The Company expects to settle and terminate its frozen defined
benefit pension plan in the fourth quarter of 2021. The Company's
2021 earnings per share outlook has been adjusted to exclude the
impact of this expected settlement and termination, which will
primarily include the recognition of non-cash actuarial losses
currently recorded in accumulated other comprehensive loss.
Management believes that presenting the Company's 2021 earnings per
share outlook as adjusted to exclude the impact of the settlement
and termination will provide investors with a more meaningful
comparison of results with the historical periods presented.
Other notes:
(aa)
Geographic split for transactions and revenue, including
transactions initiated digitally, as earlier defined, is determined
entirely based upon the region where the money transfer is
initiated.
(bb)
Represents the North America (United States and Canada) (“NA”)
region of the Company's Consumer-to-Consumer segment.
(cc)
Represents the Europe and the Russia/Commonwealth of Independent
States (“EU & CIS”) region of the Company's
Consumer-to-Consumer segment.
(dd)
Represents the Middle East, Africa, and South Asia (“MEASA”) region
of the Company's Consumer-to-Consumer segment, including India and
certain South Asian countries, which consist of Bangladesh, Bhutan,
Maldives, Nepal, and Sri Lanka.
(ee)
Represents the Latin America and the Caribbean (“LACA”) region of
the Company's Consumer-to-Consumer segment, including Mexico.
(ff)
Represents the East Asia and Oceania (“APAC”) region of the
Company's Consumer-to-Consumer segment.
(gg)
Represents transactions conducted and funded through websites and
mobile applications marketed under the Company's brands
(“westernunion.com”).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210804006040/en/
Media Relations: Claire Treacy +1(720) 332-0652
Claire.treacy@westernunion.com
Investor Relations: Brad Windbigler +1(720) 332-2510
brad.windbigler@westernunion.com
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