Total Company GAAP revenues grow to $1.3
billion; GAAP earnings per share (EPS) of $0.57, adjusted
EPS of $0.63
Digital money transfer revenues continue
double-digit growth achieving quarterly highs for
transactions and principal
Advances ecosystem strategy with the launch
of WU Shop and an upcoming pilot of digital banking services
in select countries
Continued strong cash flow generation, with
over $510 million returned to shareholders
year-to-date
The Western Union Company (NYSE: WU), a global leader in
cross-border, cross-currency money movement and payments, today
reported third quarter financial results and updated its 2021 full
year financial outlook.
The Company’s third quarter revenue of $1.3 billion increased 2%
on a reported and constant currency basis. Third quarter growth was
led by digital money transfer, which continued to deliver
double-digit growth, and the Business Solutions segment, partially
offset by retail money transfer due to the slow pace of economic
recovery.
GAAP EPS in the third quarter was $0.57 compared to $0.55 in the
prior year period. The year-over-year increase in GAAP EPS resulted
from revenue growth and lower planned marketing investment,
partially offset by a higher tax rate due to deferred taxes
recorded on the pending sale of Business Solutions and higher
technology investment.
Adjusted EPS in the third quarter was $0.63 compared to $0.57 in
the prior year period. Year-over-year growth in adjusted EPS was
driven by similar factors as above, excluding certain items. For a
full reconciliation between GAAP and Adjusted EPS, please see the
“Adjustment Items” section of this press release.
President and CEO Hikmet Ersek said, “While economic conditions
and industry trends have not fully recovered, third quarter results
highlight the resilience of our millions of customers around the
world, who continue to provide much needed support to loved ones
back home. Our digital business continues to generate strong
revenue growth with $266 million generated in the quarter,
maintaining the record-high level that we achieved in the second
quarter and putting us well on pace to exceed $1 billion in revenue
this year.
Ersek continued, “I am also excited to announce the continued
progress of our ecosystem strategy with the upcoming digital
banking pilot in Germany and Romania, which is on track to launch
by year-end. Additionally, in select countries, we recently
launched WU Shop, a shopping and cash back rewards program,
initially targeting Western Union MyWU loyalty members.”
CFO Raj Agrawal stated, “Year-to-date, we have generated strong
operating cash flow of more than $680 million and have returned
more than $510 million to shareholders through a combination of
dividends and share repurchases.”
Q3 Business Highlights
- Consumer-to-Consumer (C2C) revenues were flat on a reported
basis, or declined 1% constant currency, while transactions
declined 1% during the quarter. Within the C2C segment,
cross-border money transfer revenues grew 1%. Regionally,
transaction growth in Europe and CIS, LACA, and MEASA was offset by
declines in North America and APAC.
- Digital money transfer revenues increased 15% on a reported
basis, or 14% constant currency, and represented 24% and 37% of
total C2C revenues and transactions, respectively. Digital money
transfer reached new quarterly highs for transactions and
principal. Westernunion.com revenue grew 12% on a reported basis,
or 11% constant currency, including cross-border revenue growth of
16%. Westernunion.com growth moderated in the quarter, as expected,
given the significant digital demand the Company experienced in
2020.
- Westernunion.com average monthly active users for the third
quarter increased 8% year-over-year and the Western Union mobile
app was again the most downloaded mobile app among peer money
transfer companies during the third quarter, according to data
provided by mobile app marketing firm Sensor Tower1.
- Western Union Business Solutions revenues increased 31% on a
reported basis, or 28% constant currency, primarily driven by
increased payment services activity and the education vertical as
the business grew over the impact of COVID-19. Other revenues,
which consists primarily of retail bill payments in the U.S. and
Argentina and money orders, increased 3%.
_____________________________
1 Data obtained from Sensor Tower App Install Market Share
Report
Q3 Financial Highlights
- GAAP operating margin in the quarter was 24.8% compared to
22.7% in the prior year period. The adjusted operating margin in
the quarter was 25.2% compared to 23.5% in the prior year period.
The increase in the Company’s GAAP and adjusted operating margins
was driven by revenue growth in the Business Solutions segment and
lower planned marketing investment, partially offset by higher
technology investment, while the GAAP operating margin also
increased as a result of restructuring costs in the prior year
period. For a detailed reconciliation between GAAP and Adjusted
operating margin, please see the “Adjustment Items” section of this
press release.
- The GAAP effective tax rate in the quarter was 20.2% compared
to 12.4% in the prior year period, and the adjusted effective tax
rate was 13.7% in the quarter compared to 12.7% in the prior year
period. The increase in the Company’s GAAP effective tax rate was
due to deferred taxes recorded on the pending sale of Business
Solutions.
- Cash flow from operating activities was $686 million
year-to-date. The Company returned $170 million to shareholders in
the third quarter consisting of $95 million in dividends and $75
million of share repurchases.
2021 Outlook
The Company updated its financial outlook for 2021, which was
previously reported on August 4. GAAP and constant currency revenue
were revised to reflect recent business trends and macroeconomic
conditions. Additionally, EPS ranges were narrowed with adjusted
EPS revised to the higher end of the range, while GAAP EPS was
revised slightly downward to reflect the recorded deferred taxes
related to the pending sale of Business Solutions.
The outlook provided today assumes the macroeconomic environment
in the fourth quarter will be similar to the third quarter:
Revenue
GAAP: approximately 150 basis
points higher than constant currency revenue growth (previously
mid-to-high single digit increase)
Constant currency (excluding the impact
of Argentina inflation): approximately 3% to 4% growth
(previously mid-single digit increase)
Operating Profit Margin (GAAP and
Adjusted)
GAAP: approximately 21% (no
change)
Adjusted: approximately 21.5% (no
change)
Effective Tax Rate (GAAP and
Adjusted)
Mid-teens range (no change)
EPS
GAAP: in a range of $1.80 - $1.85
(previously $1.82 - $1.92)
Adjusted: in a range of $2.05 -
$2.10 (previously $2.00 - $2.10)
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), Business Solutions
change in permanent reinvestment tax assertion (third 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 1830095.
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 approximately
600,000 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*
3Q20
4Q20
FY2020
1Q21
2Q21
3Q21
YTD 3Q21
Consolidated Metrics Consolidated revenues (GAAP) - YoY %
change
(4
)
%
(3
)
%
(9
)
%
2
%
16
%
2
%
6
%
Consolidated revenues (non-GAAP, constant currency and excluding
Speedpay and Paymap) - YoY % change (a)
(1
)
%
(1
)
%
(3
)
%
2
%
13
%
2
%
5
%
Consolidated operating margin (GAAP)
22.7
%
17.9
%
20.0
%
19.2
%
19.8
%
24.8
%
21.3
%
Consolidated operating margin, excluding restructuring-related
expenses and acquisition and divestiture costs (non-GAAP) (b)
23.5
%
18.8
%
20.8
%
19.3
%
20.2
%
25.2
%
21.6
%
EBITDA margin (non-GAAP) (c)
27.0
%
22.3
%
24.7
%
23.7
%
24.1
%
28.8
%
25.5
%
Consumer-to-Consumer (C2C) Segment Metrics Revenues
(GAAP) - YoY % change
(1
)
%
0
%
(4
)
%
4
%
15
%
0
%
6
%
Revenues (non-GAAP, constant currency) - YoY % change (e)
0
%
0
%
(3
)
%
2
%
12
%
(1
)
%
4
%
Transactions (in millions)
77.3
78.4
290.5
73.0
78.0
76.6
227.6
Transactions - YoY % change
6
%
6
%
0
%
9
%
15
%
(1
)
%
7
%
Total principal ($- billions) $
26.9
$
26.7
$
96.1
$
25.7
$
27.9
$
27.7
$
81.3
Principal per transaction, as reported - YoY % change
13
%
14
%
9
%
15
%
11
%
4
%
9
%
Principal per transaction (constant currency) - YoY % change (f)
14
%
13
%
10
%
12
%
8
%
3
%
7
%
Cross-border principal, as reported - YoY % change
23
%
24
%
12
%
28
%
29
%
4
%
19
%
Cross-border principal (constant currency) - YoY % change (g)
24
%
23
%
13
%
26
%
25
%
3
%
17
%
Operating margin
24.6
%
20.5
%
21.9
%
19.6
%
20.7
%
24.3
%
21.6
%
Digital money transfer revenues (GAAP) - YoY % change (1)
45
%
36
%
38
%
45
%
22
%
15
%
25
%
Digital money transfer foreign currency translation impact (j)
1
%
(1
)
%
0
%
(1
)
%
(3
)
%
(1
)
%
(1
)
%
Digital money transfer revenues (non-GAAP, constant currency) - YoY
% change (1)
46
%
35
%
38
%
44
%
19
%
14
%
24
%
Digital money transfer transactions - YoY % change
96
%
83
%
81
%
77
%
33
%
19
%
38
%
westernunion.com revenues (GAAP) - YoY % change (gg)
33
%
27
%
27
%
38
%
18
%
12
%
21
%
westernunion.com foreign currency translation impact (j)
(1
)
%
(1
)
%
0
%
(1
)
%
(3
)
%
(1
)
%
(1
)
%
westernunion.com revenues (non-GAAP, constant currency) - YoY %
change (gg)
32
%
26
%
27
%
37
%
15
%
11
%
20
%
westernunion.com transactions - YoY % change (gg)
53
%
56
%
44
%
55
%
18
%
9
%
24
%
C2C Segment Regional Metrics - YoY % change NA region
revenues (GAAP) (aa), (bb)
0
%
(3
)
%
(3
)
%
0
%
4
%
(2
)
%
1
%
NA region foreign currency translation impact (j)
1
%
0
%
0
%
1
%
0
%
0
%
0
%
NA region revenues (non-GAAP, constant currency) (aa), (bb)
1
%
(3
)
%
(3
)
%
1
%
4
%
(2
)
%
1
%
NA region transactions (aa), (bb)
1
%
(1
)
%
(3
)
%
1
%
3
%
(5
)
%
0
%
EU & CIS region revenues (GAAP) (aa), (cc)
3
%
3
%
(2
)
%
8
%
18
%
(3
)
%
7
%
EU & CIS region foreign currency translation impact (j)
(2
)
%
(3
)
%
(1
)
%
(4
)
%
(8
)
%
(2
)
%
(4
)
%
EU & CIS region revenues (non-GAAP, constant currency) (aa),
(cc)
1
%
0
%
(3
)
%
4
%
10
%
(5
)
%
3
%
EU & CIS region transactions (aa), (cc)
24
%
23
%
13
%
28
%
26
%
3
%
18
%
MEASA region revenues (GAAP) (aa), (dd)
2
%
1
%
(2
)
%
1
%
19
%
(2
)
%
5
%
MEASA region foreign currency translation impact (j)
0
%
(1
)
%
0
%
(1
)
%
(1
)
%
0
%
0
%
MEASA region revenues (non-GAAP, constant currency) (aa), (dd)
2
%
0
%
(2
)
%
0
%
18
%
(2
)
%
5
%
MEASA region transactions (aa), (dd)
15
%
12
%
7
%
13
%
22
%
2
%
12
%
LACA region revenues (GAAP) (aa), (ee)
(21
)
%
(9
)
%
(22
)
%
3
%
70
%
25
%
28
%
LACA region foreign currency translation impact (j)
13
%
11
%
11
%
5
%
(2
)
%
1
%
2
%
LACA region revenues (non-GAAP, constant currency) (aa), (ee)
(8
)
%
2
%
(11
)
%
8
%
68
%
26
%
30
%
LACA region transactions (aa), (ee)
(21
)
%
(13
)
%
(20
)
%
(8
)
%
42
%
10
%
12
%
APAC region revenues (GAAP) (aa), (ff)
4
%
8
%
(3
)
%
9
%
20
%
1
%
9
%
APAC region foreign currency translation impact (j)
1
%
(2
)
%
0
%
(6
)
%
(7
)
%
(2
)
%
(5
)
%
APAC region revenues (non-GAAP, constant currency) (aa), (ff)
5
%
6
%
(3
)
%
3
%
13
%
(1
)
%
4
%
APAC region transactions (aa), (ff)
(6
)
%
(3
)
%
(10
)
%
(2
)
%
3
%
(13
)
%
(5
)
%
% of C2C Revenue NA region revenues (aa), (bb)
38
%
37
%
38
%
37
%
37
%
37
%
37
%
EU & CIS region revenues (aa), (cc)
33
%
33
%
33
%
33
%
33
%
32
%
33
%
MEASA region revenues (aa), (dd)
16
%
15
%
15
%
16
%
15
%
15
%
15
%
LACA region revenues (aa), (ee)
7
%
8
%
8
%
8
%
9
%
9
%
9
%
APAC region revenues (aa), (ff)
6
%
7
%
6
%
6
%
6
%
7
%
6
%
Digital money transfer revenues (aa)
21
%
21
%
20
%
23
%
24
%
24
%
24
%
Business Solutions Segment Metrics Revenues (GAAP) -
YoY % change
(11
)
%
(8
)
%
(8
)
%
(2
)
%
25
%
31
%
17
%
Revenues (non-GAAP, constant currency) - YoY % change (h)
(13
)
%
(11
)
%
(8
)
%
(8
)
%
16
%
28
%
11
%
Operating margin
10.5
%
(0.2
)
%
6.9
%
13.1
%
10.9
%
32.9
%
19.8
%
Other (primarily bill payments businesses in Argentina
and the United States and money orders) Revenues (GAAP) - YoY %
change
(33
)
%
(29
)
%
(48
)
%
(18
)
%
8
%
3
%
(4
)
%
Operating margin
20.0
%
15.8
%
21.2
%
22.6
%
16.2
%
18.3
%
19.0
%
% of Total Company Revenue (GAAP)
Consumer-to-Consumer segment revenues
88
%
88
%
87
%
87
%
87
%
86
%
87
%
Business Solutions segment revenues
7
%
7
%
8
%
8
%
8
%
9
%
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 websites 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 Nine Months Ended
September 30, September 30,
2021
2020
% Change
2021
2020
% Change
Revenues
$
1,286.3
$
1,258.5
2
%
$
3,786.0
$
3,563.2
6
%
Expenses:
Cost of services
720.1
721.7
0
%
2,181.1
2,067.3
6
%
Selling, general, and administrative
247.6
251.6
(2
)
%
798.6
755.7
6
%
Total expenses (a)
967.7
973.3
(1
)
%
2,979.7
2,823.0
6
%
Operating income
318.6
285.2
12
%
806.3
740.2
9
%
Other income/(expense):
Interest income
0.4
0.5
(21
)
%
1.1
2.9
(62
)
%
Interest expense
(25.7
)
(28.2
)
(9
)
%
(79.7
)
(90.4
)
(12
)
%
Other income/(expense), net
(1.8
)
3.5
(b)
26.8
3.4
(b)
Total other expense, net
(27.1
)
(24.2
)
11
%
(51.8
)
(84.1
)
(38
)
%
Income before income taxes
291.5
261.0
12
%
754.5
656.1
15
%
Provision for income taxes
58.8
32.4
81
%
117.5
88.9
32
%
Net income
$
232.7
$
228.6
2
%
$
637.0
$
567.2
12
%
Earnings per share:
Basic
$
0.57
$
0.56
2
%
$
1.56
$
1.38
13
%
Diluted
$
0.57
$
0.55
4
%
$
1.55
$
1.37
13
%
Weighted-average shares outstanding:
Basic
406.3
411.6
409.1
412.5
Diluted
408.0
414.6
411.3
415.5
(a)
For the three and nine months ended September 30, 2020, the
Company incurred $9.1 million and $24.8 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 nine months ended September 30, 2020, $0.8
million and $2.5 million, respectively, were included within Cost
of services. For the three and nine months ended September 30,
2020, $8.3 million and $22.3 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) September 30,
December 31,
2021
2020
Assets Cash and cash equivalents $
1,003.4
$
1,428.2
Settlement assets
3,007.1
3,821.4
Property and equipment, net of accumulated depreciation of $644.2
and $659.9, respectively
131.5
150.4
Goodwill
2,034.6
2,566.6
Other intangible assets, net of accumulated amortization of $723.9
and $1,044.6, respectively
441.0
505.0
Other assets
761.2
1,024.7
Assets held for sale (a)
1,492.2
—
Total assets $
8,871.0
$
9,496.3
Liabilities and stockholders' equity Liabilities:
Accounts payable and accrued liabilities $
442.9
$
500.9
Settlement obligations
3,007.1
3,821.4
Income taxes payable
864.7
928.9
Deferred tax liability, net
206.4
188.9
Borrowings
2,852.6
3,067.2
Other liabilities
273.3
802.4
Liabilities associated with assets held for sale (a)
855.4
—
Total liabilities
8,502.4
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; 403.6
shares and 411.2 shares issued and outstanding as of September 30,
2021 and December 31, 2020, respectively
4.0
4.1
Capital surplus
927.9
885.1
Accumulated deficit
(436.6
)
(543.1
)
Accumulated other comprehensive loss
(126.7
)
(159.5
)
Total stockholders' equity
368.6
186.6
Total liabilities and stockholders' equity $
8,871.0
$
9,496.3
(a)
Includes balances associated with the Company's Business
Solutions business, which were held for sale as of September 30,
2021.
THE WESTERN UNION COMPANY CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited) (in
millions) Nine Months Ended September 30,
2021
2020
Cash flows from operating activities Net income $
637.0
$
567.2
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation
38.4
46.3
Amortization
121.9
123.2
Gain on the sale of noncontrolling interest in a private company
(47.9
)
—
Other non-cash items, net
124.2
106.4
Increase/(decrease) in cash resulting from changes in: Other assets
(78.3
)
(11.5
)
Accounts payable and accrued liabilities
(27.9
)
(142.7
)
Income taxes payable
(61.7
)
(97.6
)
Other liabilities
(19.7
)
(5.7
)
Net cash provided by operating activities
686.0
585.6
Cash flows from investing activities Payments for
capitalized contract costs
(94.7
)
(51.7
)
Payments for internal use software
(59.1
)
(30.1
)
Purchases of property and equipment
(26.4
)
(24.5
)
Proceeds from the sale of former corporate headquarters
—
44.2
Proceeds from the sale of noncontrolling interest in a private
company
50.9
—
Regulatory deposit made to purchase a noncontrolling interest in
stc Bank
(200.0
)
—
Other investing activities
(3.6
)
(6.6
)
Net cash used in investing activities
(332.9
)
(68.7
)
Cash flows from financing activities Cash dividends and
dividend equivalents paid
(288.7
)
(277.8
)
Common stock repurchased
(235.8
)
(238.0
)
Net proceeds from/(repayments of) commercial paper
40.0
(195.0
)
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
1.7
Other financing activities
—
(0.7
)
Net cash used in financing activities
(745.5
)
(709.8
)
Net change in cash, cash equivalents, and restricted cash
(392.4
)
(192.9
)
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),
(b) $
1,055.0
$
1,263.9
(a)
As of September 30, 2021 and 2020, the Company had $8.6
million and $12.5 million of restricted cash, respectively.
(b)
As of September 30, 2021, Cash of $43.0 million was included
in Assets held for sale on the Company's Condensed Consolidated
Balance Sheets related to the Company's Business Solutions
business.
THE WESTERN UNION COMPANY SUMMARY SEGMENT
DATA (Unaudited) (in millions) Three Months
Ended Nine Months Ended September 30,
September 30,
2021
2020
% Change
2021
2020
% Change
Revenues: Consumer-to-Consumer $
1,104.5
$
1,106.5
0
%
$
3,282.5
$
3,098.5
6
%
Business Solutions
116.8
89.1
31
%
312.6
266.9
17
%
Other (a)
65.0
62.9
3
%
190.9
197.8
(4
)
%
Total consolidated revenues $
1,286.3
$
1,258.5
2
%
$
3,786.0
$
3,563.2
6
%
Segment operating income: Consumer-to-Consumer $
268.2
$
272.4
(2
)
%
$
708.1
$
695.1
2
%
Business Solutions
38.4
9.4
(c)
61.9
24.6
(c) Other (a)
12.0
12.5
(6
)
%
36.3
45.3
(20
)
%
Total segment operating income
318.6
294.3
8
%
806.3
765.0
5
%
Restructuring-related expenses (b)
—
(9.1
)
(c)
—
(24.8
)
(c) Total consolidated operating income $
318.6
$
285.2
12
%
$
806.3
$
740.2
9
%
Segment operating income margin Consumer-to-Consumer
24.3
%
24.6
%
(0.3
)
%
21.6
%
22.4
%
(0.8
)
%
Business Solutions
32.9
%
10.5
%
22.4
%
19.8
%
9.2
%
10.6
%
Other (a)
18.3
%
20.0
%
(1.7
)
%
19.0
%
22.9
%
(3.9
)
%
(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 September 30, 2021 Notes Revenues
OperatingIncome IncomeBefore IncomeTaxes Provision
forIncome Taxes NetIncome DilutedEarnings
perShare (in millions, except per share amounts) Reported
results (GAAP) $
1,286.3
$
318.6
$
291.5
$
58.8
$
232.7
$
0.57
Acquisition and divestiture costs and related tax benefit (n)
—
5.5
5.5
1.0
4.5
0.01
Gain on investment sale and related tax expense (o)
—
—
—
(1.5
)
1.5
—
Debt extinguishment costs and related tax benefit (p)
—
—
—
0.5
(0.5
)
—
Change in permanent reinvestment assertion related to the pending
sale of Business Solutions (r)
—
—
—
(18.1
)
18.1
0.05
Adjusted results (non-GAAP) $
1,286.3
$
324.1
$
297.0
$
40.7
$
256.3
$
0.63
Foreign currency translation impact (j)
(2.8
)
Revenues, constant currency adjusted (non-GAAP) $
1,283.5
Three Months Ended September 30, 2020
Notes
Revenues
Operating Income
Income Before Income
Taxes
Provision for Income
Taxes
Net Income
Diluted Earnings per
Share
(in millions, except per share amounts) Reported results (GAAP) $
1,258.5
$
285.2
$
261.0
$
32.4
$
228.6
$
0.55
Restructuring related expenses and related tax benefit (m)
—
9.1
9.1
1.7
7.4
0.02
Acquisition and divestiture costs and related tax benefit (n)
—
1.5
1.5
0.4
1.1
—
Adjusted results (non-GAAP) $
1,258.5
$
295.8
$
271.6
$
34.5
$
237.1
$
0.57
Quarter over quarter growth/(decline) (GAAP)
2
%
12
%
12
%
81
%
2
%
4
%
Quarter over quarter growth/(decline) (non-GAAP)
2
%
10
%
9
%
18
%
8
%
11
%
Nine Months Ended September 30, 2021
Notes Revenues OperatingIncome IncomeBefore
IncomeTaxes Provision forIncome Taxes NetIncome
DilutedEarnings perShare (in millions, except per share
amounts) Reported results (GAAP) $
3,786.0
$
806.3
$
754.5
$
117.5
$
637.0
$
1.55
Acquisition and divestiture costs and related tax benefit (n)
—
12.0
12.0
2.5
9.5
0.02
Gain on investment sale and related tax expense (o)
—
—
(47.9
)
(9.8
)
(38.1
)
(0.10
)
Debt extinguishment costs and related tax benefit (p)
—
—
14.8
3.0
11.8
0.03
Change in permanent reinvestment assertion related to the pending
sale of Business Solutions (r)
—
—
—
(18.1
)
18.1
0.05
Adjusted results (non-GAAP) $
3,786.0
$
818.3
$
733.4
$
95.1
$
638.3
$
1.55
Foreign currency translation impact (j)
(33.1
)
Revenues, constant currency adjusted (non-GAAP) $
3,752.9
Nine Months Ended September 30, 2020 Notes
Revenues OperatingIncome IncomeBefore
IncomeTaxes Provision forIncome Taxes NetIncome
DilutedEarnings perShare (in millions, except per share
amounts) Reported results (GAAP) $
3,563.2
$
740.2
$
656.1
$
88.9
$
567.2
$
1.37
Restructuring related expenses and related tax benefit (m)
—
24.8
24.8
2.7
22.1
0.05
Acquisition and divestiture costs and related tax benefit (n)
—
2.2
2.2
0.5
1.7
—
Adjusted results (non-GAAP) $
3,563.2
$
767.2
$
683.1
$
92.1
$
591.0
$
1.42
Year over year growth/(decline) (GAAP)
6
%
9
%
15
%
32
%
12
%
13
%
Year over year growth/(decline) (non-GAAP)
5
%
7
%
7
%
3
%
8
%
9
%
THE WESTERN UNION
COMPANY
NOTES TO KEY
STATISTICS
(in millions, unless indicated
otherwise)
(Unaudited)
Notes
3Q20
4Q20
FY2020
1Q21
2Q21
3Q21
YTD 3Q21
Consolidated Metrics (a) Revenues (GAAP) $
1,258.5
$
1,271.8
$
4,835.0
$
1,210.0
$
1,289.7
$
1,286.3
$
3,786.0
Foreign currency translation impact (j)
41.1
22.4
157.2
(0.9
)
(29.4
)
(2.8
)
(33.1
)
Revenues (non-GAAP, constant currency) $
1,299.6
$
1,294.2
$
4,992.2
$
1,209.1
$
1,260.3
$
1,283.5
$
3,752.9
Prior year revenues (GAAP) $
1,306.9
$
1,307.7
$
5,292.1
$
1,190.0
$
1,114.7
$
1,258.5
$
3,563.2
Less prior year revenues from Speedpay and Paymap divestitures (k)
N/A
N/A
(130.7
)
N/A
N/A
N/A
N/A
Prior year revenues, adjusted for divestitures (non-GAAP) $
1,306.9
$
1,307.7
$
5,161.4
$
1,190.0
$
1,114.7
$
1,258.5
$
3,563.2
Revenues (GAAP) - YoY % Change
(4
)
%
(3
)
%
(9
)
%
2
%
16
%
2
%
6
%
Revenues, constant currency and adjusted for divestitures
(non-GAAP) - YoY % Change
(1
)
%
(1
)
%
(3
)
%
2
%
13
%
2
%
5
%
(b) Operating income (GAAP) $
285.2
$
227.1
$
967.3
$
232.8
$
254.9
$
318.6
$
806.3
Restructuring-related expenses (m)
9.1
12.0
36.8
N/A
N/A
N/A
N/A
Acquisition and divestiture costs (n)
1.5
0.3
2.5
0.9
5.6
5.5
12.0
Operating income, adjusted (non-GAAP) $
295.8
$
239.4
$
1,006.6
$
233.7
$
260.5
$
324.1
$
818.3
Operating margin (GAAP)
22.7
%
17.9
%
20.0
%
19.2
%
19.8
%
24.8
%
21.3
%
Operating margin, adjusted (non-GAAP)
23.5
%
18.8
%
20.8
%
19.3
%
20.2
%
25.2
%
21.6
%
(c) Operating income (GAAP) $
285.2
$
227.1
$
967.3
$
232.8
$
254.9
$
318.6
$
806.3
Depreciation and amortization
54.2
56.1
225.6
53.4
55.6
51.3
160.3
EBITDA (non-GAAP) (l) $
339.4
$
283.2
$
1,192.9
$
286.2
$
310.5
$
369.9
$
966.6
Operating margin (GAAP)
22.7
%
17.9
%
20.0
%
19.2
%
19.8
%
24.8
%
21.3
%
EBITDA margin (non-GAAP)
27.0
%
22.3
%
24.7
%
23.7
%
24.1
%
28.8
%
25.5
%
(d) Effective tax rate (GAAP)
12
%
11
%
13
%
10
%
14
%
20
%
16
%
Impact from change in permanent reinvestment assertion related to
the pending sale of Business Solutions (r)
N/A
N/A
N/A
N/A
N/A
(6
)
%
(3
)
%
Impact from restructuring-related expenses (m)
1
%
1
%
0
%
N/A
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
0
%
0
%
0
%
Impact from debt extinguishment costs (p)
N/A
N/A
N/A
N/A
0
%
0
%
0
%
Effective tax rate, adjusted (non-GAAP)
13
%
12
%
13
%
10
%
14
%
14
%
13
%
C2C Segment Metrics (e) Revenues (GAAP) $
1,106.5
$
1,121.5
$
4,220.0
$
1,050.9
$
1,127.1
$
1,104.5
$
3,282.5
Foreign currency translation impact (j)
11.1
(1.2
)
41.2
(11.1
)
(32.1
)
(9.4
)
(52.6
)
Revenues (non-GAAP, constant currency) $
1,117.6
$
1,120.3
$
4,261.2
$
1,039.8
$
1,095.0
$
1,095.1
$
3,229.9
Prior year revenues (GAAP) $
1,113.0
$
1,125.0
$
4,407.8
$
1,015.4
$
976.6
$
1,106.5
$
3,098.5
Revenues (GAAP) - YoY % change
(1
)
%
0
%
(4
)
%
4
%
15
%
0
%
6
%
Revenues (non-GAAP, constant currency) - YoY % change
0
%
0
%
(3
)
%
2
%
12
%
(1
)
%
4
%
(f) Principal per transaction, as reported ($- dollars) $
348
$
341
$
331
$
353
$
357
$
361
$
357
Foreign currency translation impact ($- dollars) (j)
1
(2
)
2
(7
)
(10
)
(1
)
(6
)
Principal per transaction (constant currency) ($- dollars) $
349
$
339
$
333
$
346
$
347
$
360
$
351
Prior year principal per transaction, as reported ($- dollars) $
307
$
300
$
303
$
308
$
322
$
348
$
327
Principal per transaction, as reported - YoY % change
13
%
14
%
9
%
15
%
11
%
4
%
9
%
Principal per transaction (constant currency) - YoY % change
14
%
13
%
10
%
12
%
8
%
3
%
7
%
(g) Cross-border principal, as reported ($- billions) $
25.5
$
25.3
$
90.6
$
24.5
$
26.6
$
26.5
$
77.6
Foreign currency translation impact ($- billions) (j)
—
(0.1
)
0.6
(0.5
)
(0.7
)
(0.2
)
(1.4
)
Cross-border principal (constant currency) ($- billions) $
25.5
$
25.2
$
91.2
$
24.0
$
25.9
$
26.3
$
76.2
Prior year cross-border principal, as reported ($- billions) $
20.6
$
20.5
$
80.7
$
19.1
$
20.7
$
25.5
$
65.3
Cross-border principal, as reported - YoY % change
23
%
24
%
12
%
28
%
29
%
4
%
19
%
Cross-border principal (constant currency) - YoY % change
24
%
23
%
13
%
26
%
25
%
3
%
17
%
Business Solutions Segment Metrics (h) Revenues
(GAAP) $
89.1
$
89.2
$
356.1
$
96.5
$
99.3
$
116.8
$
312.6
Foreign currency translation impact (j)
(1.9
)
(2.4
)
(0.1
)
(5.6
)
(7.2
)
(3.1
)
(15.9
)
Revenues (non-GAAP, constant currency) $
87.2
$
86.8
$
356.0
$
90.9
$
92.1
$
113.7
$
296.7
Prior year revenues (GAAP) $
100.6
$
97.0
$
388.8
$
98.4
$
79.4
$
89.1
$
266.9
Revenues (GAAP) - YoY % change
(11
)
%
(8
)
%
(8
)
%
(2
)
%
25
%
31
%
17
%
Revenues (non-GAAP, constant currency) - YoY % change
(13
)
%
(11
)
%
(8
)
%
(8
)
%
16
%
28
%
11
%
(i) Operating income/(loss) (GAAP) $
9.4
$
(0.2
)
$
24.4
$
12.6
$
10.9
$
38.4
$
61.9
Depreciation and amortization
9.3
8.1
36.1
6.9
6.8
2.4
16.1
EBITDA (non-GAAP) (l) $
18.7
$
7.9
$
60.5
$
19.5
$
17.7
$
40.8
$
78.0
Operating income margin (GAAP)
10.5
%
(0.2
)
%
6.9
%
13.1
%
10.9
%
32.9
%
19.8
%
EBITDA margin (non-GAAP)
21.1
%
8.8
%
17.0
%
20.2
%
17.8
%
34.9
%
25.0
%
2021 Consolidated Outlook Metrics
Range Revenues (GAAP)
4.5
%
5.5
%
Foreign currency translation impact, excluding Argentina inflation
(j)
(1.5
)
%
(1.5
)
%
Revenues, constant currency adjusted, excluding Argentina inflation
(non-GAAP)
3.0
%
4.0
%
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
%
Range Earnings per share (GAAP) ($- dollars) $
1.80
$
1.85
Pension plan termination charge (q)
0.23
0.23
Gain on an investment sale (o)
(0.09
)
(0.09
)
Debt extinguishment costs (p)
0.03
0.03
Acquisition and divestiture costs (n)
0.03
0.03
Change in permanent reinvestment assertion related to the pending
sale of Business Solutions (r)
0.05
0.05
Earnings per share, adjusted, excluding the expected termination of
pension plan, gain on an investment sale, debt extinguishment
costs, acquisition and divestiture costs, and change in permanent
reinvestment assertion related to the pending sale of Business
Solutions (non-GAAP) ($- dollars) $
2.05
$
2.10
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. The
Company ceased depreciation and amortization for its Business
Solutions business during the three months ended September 30,
2021, as this business was held for sale. (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. 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.
(r) Represents the tax impact from changes to certain of the
Company's permanent reinvestment assertions related to its decision
to classify its Business Solutions business as held for sale in the
third quarter of 2021. Management believes that presenting the
Company's effective tax rates, earnings per share, and related
outlooks as adjusted to exclude the impact of the changes in the
permanent reinvestment assertions 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/20211102006037/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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