DALLAS, May 1, 2020
/PRNewswire/ -- MoneyGram International, Inc. (NASDAQ: MGI)
today reported financial results for its first quarter ending
March 31, 2020.
"I'd first like to offer my heartfelt appreciation to our
employees and partners whose tireless efforts, combined with our
leading digital capabilities, allowed us to provide uninterrupted
service to our customers during these unprecedented times," said
MoneyGram Chairman and CEO Alex
Holmes. "We were encouraged by the strong start to the
quarter with transaction growth in all channels accelerating from
the fourth quarter. The pandemic caused sudden and significant
global disruption and MoneyGram certainly was not immune. At the
onset of COVID-19, our Walk-In Channel experienced a significant
downturn, while in contrast, our Digital Channel continued its
positive momentum as consumers increasingly value the ease and
convenience of our leading offerings."
First Quarter 2020 Highlights, Year Over Year
- Achieved positive global money transfer transaction growth for
the quarter, with walk-in growth rates negatively impacted
post-COVID-19
|
|
All
Channels
|
|
Digital
Channel
|
|
Walk-In
Channel
|
Pre-COVID-19, Jan. 1
- Mar. 15*
|
|
6%
|
|
56%
|
|
(1)%
|
Post-COVID-19, Mar.
16 - Mar. 31*
|
|
(18)%
|
|
58%
|
|
(29)%
|
Total first quarter
2020
|
|
2%
|
|
57%
|
|
(6)%
|
|
|
|
|
|
|
|
* The Pre- and
Post-COVID-19 growth rates are approximate and are presented for
illustrative purposes only. Total first quarter
2020 rates are as-reported.
|
- Reported 57% Digital transaction growth for the quarter,
marking a continued acceleration from the fourth quarter 2019.
Performance was driven by market expansion, high customer retention
rates, and strong demand for the MoneyGram app
-
- As the crisis unfolded, MoneyGram quickly shifted its marketing
and operational focus to its online and digital capabilities to
ensure customers were able to continue to seamlessly send and
receive money from the safety of their own homes, in more than 70
countries
- At quarter end, Digital transactions accounted for 18% of all
money transfer transactions, and this percentage has grown
significantly to 28% in the first 27 days of April
- MoneyGram Online, comprising 73% of the Digital business,
remained a key driver, with transaction growth of 60% for the
quarter, and 66% in the post-COVID period, powered by:
-
- Triple-digit growth in both the U.S. Outbound and International
markets
- App downloads increasing 46%
- App transaction growth exceeding 200%
- Improvements in customer retention rates of 23%, and monthly
active customers of 40%
- Transactions sent direct-to-account or wallet increased 80%,
and in April these growth rates have improved further to more than
triple digits
- MoneyGram continued to expand its global network, launching
services with a number of important partners in key regions:
-
- In India, with Ebix to expand
retail distribution coverage and Federal Bank to expand account
deposit capabilities
- In the growing Middle East
market, with Etisalat, LuLu Financial Holdings, and Al Rajhi Bank
to expand digital and physical presence
First Quarter 2020 Financial Results, Year Over Year
- Total revenue was $290.9 million,
a decline of 8% or 7% on a constant currency basis
-
- Money transfer revenue was $255.9
million, down 6% or 5% on a constant currency basis
- Investment revenue was $10.1
million for the quarter
- Total operating expenses of $277.8
million improved $29.0 million
or 9%, which included a $12.1 million
benefit composed of Ripple market development fees of $16.6 million, partially offset by related
transaction and trading expenses of $4.5
million
- Net loss was $21.5 million,
including $10.1 million of additional
non-cash tax expense from an increased deferred tax asset valuation
allowance
- Diluted loss per share was $0.28,
including $0.13 per share for the
change in tax valuation allowance, and adjusted diluted loss per
share was $0.05
- Adjusted EBITDA increased 3%, or 4% on a constant currency
basis, to $51.5 million and Adjusted
EBITDA margin improved 180 basis points to 17.7%
- Adjusted Free Cash Flow was $(3.3)
million
"The COVID-19 crisis has been devastating to so many people and
businesses and I am proud of how we have responded," Holmes said,
noting immediate steps MoneyGram took to preserve value in response
to the pandemic:
- Implementing its global Business Continuity Plans
- Establishing employee support initiatives including mandatory
work from home arrangements
- Reducing expenses and preserving cash
- Conducting proactive outreach to governmental and regulatory
bodies
- Proactively managing fraud prevention program to protect
consumers from coronavirus-related financial scams
- Alerting and directing consumers to the website and app, and
encouraging direct-to-account transfers
"While no one can predict the duration of the pandemic,
MoneyGram is well positioned to play a key role in, and benefit
from, the resurgence when the global economy unfreezes and people
begin freely moving again."
Balance Sheet Highlights
Cash and cash equivalents on hand at quarter end were
$131.0 million compared to
$146.8 million at the end of 2019. As
of March 31, 2020, the Company had
$23.0 million drawn on its revolving
credit facility with approximately $12.0
million undrawn. First quarter interest expense was
$23.8 million and capital
expenditures were $10.1 million.
Second Quarter 2020 Outlook Update
As a result of the uncertainty created by the COVID-19 pandemic,
the Company is not providing a second quarter outlook.
Conference Call
MoneyGram International will host a conference call on
May 1, at 9:00
a.m. ET, to discuss its results. Alex Holmes, Chairman and CEO, and Larry Angelilli, CFO, will host the call.
Participant Dial-In
Numbers:
|
U.S.:
|
1-800-263-0877
|
International:
|
1-646-828-8143
|
Webcast:
|
public.viavid.com/index.php?id=139088
|
|
|
Replay:
|
U.S 1-844-512-2921 or
International 1-412-317-6671
|
Replay ID:
|
8211570
|
Replay is available
through May 8, 2020, 11:59 p.m. ET
|
About MoneyGram International, Inc.
MoneyGram is a global leader in cross-border P2P payments and
money transfers. Its consumer-centric capabilities enable family
and friends to quickly and affordably send money in more than 200
countries and territories, with over 70 countries now digitally
enabled.
MoneyGram leverages its modern, mobile, and API-driven platform
and collaborates with the world's leading brands to serve millions
of people each year through both its walk-in business and its
direct-to-consumer digital business.
With a strong culture of innovation and a relentless focus on
utilizing technology to deliver the world's best customer
experience, MoneyGram is leading the evolution of digital P2P
payments.
For more information, please visit MoneyGram.com and follow
@MoneyGram.
Forward-Looking Statements
This communication contains forward-looking statements which are
protected as forward-looking statements under the Private
Securities Litigation Reform Act of 1995 that are not limited to
historical facts, but reflect MoneyGram's current beliefs,
expectations or intentions regarding future events. Words such as
"may," "will," "could," "should," "expect," "plan," "project,"
"intend," "anticipate," "believe," "estimate," "predict,"
"potential," "pursuant," "target," "continue," and similar
expressions are intended to identify such forward-looking
statements. The statements in this communication that are not
historical statements are forward-looking statements within the
meaning of the federal securities laws. Specific forward-looking
statements include, among others, statements regarding the
company's projected results of operations, specific factors
expected to impact the company's results of operations, and the
expected restructuring and reorganization program results.
Forward-looking statements are subject to numerous risks and
uncertainties, many of which are beyond MoneyGram's control, which
could cause actual results to differ materially from the results
expressed or implied by the statements.
These risks and uncertainties include, but are not limited
to:
- the impact of the COVID-19 outbreak or future epidemics on our
business, including the potential for work stoppages, lockdowns,
shelter-in-place, or restricted movement guidelines, service
delays, lower consumer and commercial activity;
- our ability to compete effectively;
- our ability to maintain key agent or biller relationships, or a
reduction in business or transaction volume from these
relationships, including our largest agent, Walmart, whether
through the introduction by Walmart of additional competing "white
label" branded money transfer products or otherwise;
- our ability to manage fraud risks from consumers or
agents;
- the ability of us and our agents to comply with U.S. and
international laws and regulations;
- litigation or investigations involving us or our agents;
- uncertainties relating to compliance with the Amended DPA
entered into with the U.S. federal government and the effect of the
Amended DPA on our reputation and business and our ability to make
payments required under the Amended DPA;
- regulations addressing consumer privacy, data use and
security;
- our ability to successfully develop and timely introduce new
and enhanced products and services and our investments in new
products, services or infrastructure changes;
- our ability to manage risks associated with our international
sales and operations;
- our offering of money transfer services through agents in
regions that are politically volatile;
- changes in tax laws or an unfavorable outcome with respect to
the audit of our tax returns or tax positions, or a failure by us
to establish adequate reserves for tax events;
- our substantial debt service obligations, significant debt
covenant requirements and credit ratings;
- major bank failure or sustained financial market illiquidity,
or illiquidity at our clearing, cash management and custodial
financial institutions;
- the ability of us and our agents to maintain adequate banking
relationships;
- a security or privacy breach in systems, networks or databases
on which we rely and disruptions to our computer network systems
and data centers;
- weakness in economic conditions, in both the U.S. and global
markets;
- a significant change, material slow down or complete disruption
of international migration patterns;
- the financial health of certain European countries or the
secession of a country from the European Union;
- our ability to manage credit risks from our agents and official
check financial institution consumers;
- our ability to adequately protect our brand and intellectual
property rights and to avoid infringing on the rights of
others;
- our ability to manage risks related to the operation of retail
locations and the acquisition or start-up of businesses;
- any restructuring actions and cost reduction initiatives that
we undertake may not deliver the expected results and these actions
may adversely affect our business;
- our capital structure;
- and uncertainties described in the "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" sections of MoneyGram's public reports filed
with the Securities and Exchange Commission (the "SEC"), including
MoneyGram's annual report on Form 10-K for the year ended
December 31, 2019.
Additional information concerning factors that could cause
actual results to differ materially from those in the
forward-looking statements is contained from time to time in
MoneyGram's SEC filings. MoneyGram's SEC filings may be obtained by
contacting MoneyGram, through MoneyGram's web site at
ir.moneygram.com or through the SEC's Electronic Data Gathering and
Analysis Retrieval System ("EDGAR") at http://www.sec.gov.
MoneyGram undertakes no obligation to publicly update or revise any
forward-looking statement.
Non-GAAP Measures
In addition to results presented in accordance with accounting
principles generally accepted in the
United States ("GAAP"), this news release and related tables
include certain non-GAAP financial measures, including a
presentation of EBITDA (earnings before interest, taxes,
depreciation and amortization, including agent signing bonus
amortization), Adjusted EBITDA (EBITDA adjusted for certain
significant items), Adjusted EBITDA margin, Adjusted Free Cash Flow
(Adjusted EBITDA less cash interest, cash taxes and cash payments
for capital expenditures and agent signing bonuses), constant
currency measures (which assume that amounts denominated in foreign
currencies are translated to the U.S. dollar at rates consistent
with those in the prior year), adjusted diluted earnings per share
and adjusted net income. In addition, we present adjusted operating
income and adjusted operating margin for our two reporting
segments. The following tables include a full reconciliation of
non-GAAP financial measures to the related GAAP financial measures.
The equivalent GAAP financial measures for projected results are
not provided, and projected results do not reflect the potential
impact of certain non-GAAP adjustments, which include (but in
future periods, may not be limited to) stock-based, contingent and
incentive compensation costs, compliance enhancement program costs,
direct monitor costs, legal and contingent matter costs,
restructuring and reorganization costs, currency changes and the
tax effect of such items. We cannot reliably predict or estimate if
and when these types of costs, adjustments or changes may occur or
their impact to our financial statements. Accordingly, a
reconciliation of the non-GAAP financial measures to the equivalent
GAAP financial measures for projected results is not available.
We believe that these non-GAAP financial measures provide useful
information to investors because they are an indicator of the
strength and performance of ongoing business operations. These
calculations are commonly used as a basis for investors, analysts
and other interested parties to evaluate and compare the operating
performance and value of companies within our industry. Finally,
EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Free Cash
Flow, constant currency, adjusted diluted earnings per share and
adjusted net income figures are financial and performance measures
used by management in reviewing results of operations, forecasting,
allocating resources or establishing employee incentive programs.
Although MoneyGram believes the above non-GAAP financial measures
enhance investors' understanding of its business and performance,
these non-GAAP financial measures should not be considered in
isolation or as substitutes for the accompanying GAAP financial
measures.
Description of Tables
Table One
|
-
|
Condensed
Consolidated Statements of Operations
|
Table Two
|
-
|
Segment
Results
|
Table
Three
|
-
|
Segment
Reconciliations
|
Table Four
|
-
|
Reconciliation of
Certain Non-GAAP Measures to Relevant GAAP Measures - EBITDA,
Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash
Flow
|
Table Five
|
-
|
Reconciliation of
Certain Non-GAAP Measures to Relevant GAAP Measures - Adjusted Net
Income and Adjusted Diluted EPS
|
Table Six
|
-
|
Condensed
Consolidated Balance Sheets
|
Table
Seven
|
-
|
Condensed
Consolidated Statements of Cash Flows
|
CONTACTS
|
|
|
Investor
Relations:
|
|
Media
Relations:
|
214-979-1400
|
|
Stephen
Reiff
|
InvestorRelations@moneygram.com
|
|
media@moneygram.com
|
TABLE
ONE
|
MONEYGRAM
INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
|
|
|
|
(Amounts in
millions, except percentages and per share data)
|
|
Three Months
Ended
March 31,
|
|
2020
vs
|
|
2020
|
|
2019
|
|
2019
|
|
|
|
|
|
|
|
REVENUE
|
|
|
|
|
|
|
Fee and other
revenue
|
|
$
|
280.8
|
|
|
$
|
301.0
|
|
|
$
|
(20.2)
|
|
Investment
revenue
|
|
10.1
|
|
|
14.4
|
|
|
(4.3)
|
|
Total
revenue
|
|
290.9
|
|
|
315.4
|
|
|
(24.5)
|
|
|
|
|
|
|
|
|
Total revenue change,
as reported
|
|
(8)
|
%
|
|
(17)
|
%
|
|
|
Total revenue change,
constant currency
|
|
(7)
|
%
|
|
(15)
|
%
|
|
|
|
|
|
|
|
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
Total commissions and
direct transaction expenses
|
|
154.4
|
|
|
160.9
|
|
|
(6.5)
|
|
Compensation and
benefits
|
|
53.4
|
|
|
59.4
|
|
|
(6.0)
|
|
Transaction and
operations support (1)
|
|
38.0
|
|
|
52.1
|
|
|
(14.1)
|
|
Occupancy, equipment
and supplies
|
|
14.9
|
|
|
15.4
|
|
|
(0.5)
|
|
Depreciation and
amortization
|
|
17.1
|
|
|
19.0
|
|
|
(1.9)
|
|
Total operating
expenses
|
|
277.8
|
|
|
306.8
|
|
|
(29.0)
|
|
OPERATING
INCOME
|
|
13.1
|
|
|
8.6
|
|
|
4.5
|
|
Other
expenses
|
|
|
|
|
|
|
Interest
expense
|
|
23.8
|
|
|
13.9
|
|
|
9.9
|
|
Other non-operating
expense
|
|
1.1
|
|
|
1.6
|
|
|
(0.5)
|
|
Total other
expenses
|
|
24.9
|
|
|
15.5
|
|
|
9.4
|
|
Loss before income
taxes
|
|
(11.8)
|
|
|
(6.9)
|
|
|
(4.9)
|
|
Income tax
expense
|
|
9.7
|
|
|
6.6
|
|
|
3.1
|
|
NET
LOSS
|
|
$
|
(21.5)
|
|
|
$
|
(13.5)
|
|
|
$
|
(8.0)
|
|
|
|
|
|
|
|
|
Basic and diluted
loss per common share
|
|
$
|
(0.28)
|
|
|
$
|
(0.21)
|
|
|
$
|
(0.07)
|
|
|
|
|
|
|
|
|
Basic and diluted
weighted-average outstanding common shares and equivalents used in
computing loss per share
|
|
77.4
|
|
|
64.8
|
|
|
12.6
|
|
|
|
|
|
|
|
|
(1) Three months
ended March 31, 2020, includes Ripple market development fees of
$16.6 million, partially offset by related transaction and trading
expenses of $4.5 million.
|
TABLE
TWO
|
MONEYGRAM
INTERNATIONAL, INC.
|
SEGMENT
RESULTS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Funds
Transfer
|
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months
Ended
March 31,
|
|
2020
vs
|
|
2020
|
|
2019
|
|
2019
|
Money transfer
revenue
|
|
$
|
255.9
|
|
|
$
|
273.3
|
|
|
$
|
(17.4)
|
|
Bill payment
revenue
|
|
13.4
|
|
|
15.9
|
|
|
(2.5)
|
|
Total
revenue
|
|
$
|
269.3
|
|
|
$
|
289.2
|
|
|
$
|
(19.9)
|
|
|
|
|
|
|
|
|
Commissions and
direct transaction expenses
|
|
$
|
151.3
|
|
|
$
|
154.3
|
|
|
$
|
(3.0)
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
6.7
|
|
|
$
|
1.1
|
|
|
$
|
5.6
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
2.5
|
%
|
|
0.4
|
%
|
|
|
|
|
|
|
|
|
|
Money transfer
revenue change, as reported
|
|
(6)
|
%
|
|
(19)
|
%
|
|
|
Money transfer
revenue change, constant currency
|
|
(5)
|
%
|
|
(16)
|
%
|
|
|
|
|
|
|
|
|
|
Financial Paper
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months
Ended
March 31,
|
|
2020
vs
|
|
2020
|
|
2019
|
|
2019
|
Money order
revenue
|
|
$
|
12.1
|
|
|
$
|
13.9
|
|
|
$
|
(1.8)
|
|
Official check
revenue
|
|
9.5
|
|
|
12.3
|
|
|
(2.8)
|
|
Total
revenue
|
|
$
|
21.6
|
|
|
$
|
26.2
|
|
|
$
|
(4.6)
|
|
|
|
|
|
|
|
|
Total commissions
expense
|
|
$
|
3.1
|
|
|
$
|
6.6
|
|
|
$
|
(3.5)
|
|
|
|
|
|
|
|
|
Operating
income
|
|
$
|
7.0
|
|
|
$
|
8.2
|
|
|
$
|
(1.2)
|
|
|
|
|
|
|
|
|
Operating
margin
|
|
32.4
|
%
|
|
31.3
|
%
|
|
|
|
|
|
|
|
|
|
TABLE
THREE
|
MONEYGRAM
INTERNATIONAL, INC.
|
SEGMENT
RECONCILIATIONS
|
(Unaudited)
|
|
|
|
|
|
|
|
Global Funds
Transfer
|
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months
Ended
March 31,
|
|
2020
vs
|
|
2020
|
|
2019
|
|
2019
|
|
|
|
|
|
|
|
Revenue (as
reported)
|
|
$
|
269.3
|
|
|
$
|
289.2
|
|
|
$
|
(19.9)
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
|
$
|
15.7
|
|
|
$
|
12.3
|
|
|
$
|
3.4
|
|
|
|
|
|
|
|
|
Legal and contingent
matters
|
|
(0.3)
|
|
|
—
|
|
|
(0.3)
|
|
Restructuring and
reorganization costs
|
|
(0.5)
|
|
|
(3.6)
|
|
|
3.1
|
|
Compliance
enhancement program
|
|
(1.6)
|
|
|
(1.1)
|
|
|
(0.5)
|
|
Direct monitor
costs
|
|
(4.8)
|
|
|
(4.1)
|
|
|
(0.7)
|
|
Stock-based
compensation expense
|
|
(1.8)
|
|
|
(2.4)
|
|
|
0.6
|
|
Total
adjustments
|
|
(9.0)
|
|
|
(11.2)
|
|
|
2.2
|
|
|
|
|
|
|
|
|
Operating income (as
reported)
|
|
$
|
6.7
|
|
|
$
|
1.1
|
|
|
$
|
5.6
|
|
|
|
|
|
|
|
|
Adjusted operating
margin
|
|
5.8
|
%
|
|
4.3
|
%
|
|
|
Total
adjustments
|
|
(3.3)
|
%
|
|
(3.9)
|
%
|
|
|
Operating margin (as
reported)
|
|
2.5
|
%
|
|
0.4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Paper
Products
|
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months
Ended
March 31,
|
|
2020
vs
|
|
2020
|
|
2019
|
|
2019
|
|
|
|
|
|
|
|
Revenue (as
reported)
|
|
$
|
21.6
|
|
|
$
|
26.2
|
|
|
$
|
(4.6)
|
|
|
|
|
|
|
|
|
Adjusted operating
income
|
|
$
|
7.6
|
|
|
$
|
8.8
|
|
|
$
|
(1.2)
|
|
|
|
|
|
|
|
|
Compliance
enhancement program
|
|
(0.4)
|
|
|
(0.4)
|
|
|
—
|
|
Stock-based
compensation expense
|
|
(0.2)
|
|
|
(0.2)
|
|
|
—
|
|
Total
adjustments
|
|
(0.6)
|
|
|
(0.6)
|
|
|
—
|
|
|
|
|
|
|
|
|
Operating income (as
reported)
|
|
$
|
7.0
|
|
|
$
|
8.2
|
|
|
$
|
(1.2)
|
|
|
|
|
|
|
|
|
Adjusted operating
margin
|
|
35.2
|
%
|
|
33.6
|
%
|
|
|
Total
adjustments
|
|
(2.8)
|
%
|
|
(2.3)
|
%
|
|
|
Operating margin (as
reported)
|
|
32.4
|
%
|
|
31.3
|
%
|
|
|
|
|
|
|
|
|
|
TABLE
FOUR
|
MONEYGRAM
INTERNATIONAL, INC.
|
RECONCILIATION OF
CERTAIN NON-GAAP MEASURES TO RELEVANT GAAP MEASURES
|
EBITDA, ADJUSTED
EBITDA, ADJUSTED EBITDA MARGIN AND ADJUSTED FREE CASH
FLOW
|
(Unaudited)
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months
Ended
March 31,
|
|
2020
vs
|
|
2020
|
|
2019
|
|
2019
|
|
|
|
|
|
|
|
Loss before income
taxes
|
|
$
|
(11.8)
|
|
|
$
|
(6.9)
|
|
|
$
|
(4.9)
|
|
Interest
expense
|
|
23.8
|
|
|
13.9
|
|
|
9.9
|
|
Depreciation and
amortization
|
|
17.1
|
|
|
19.0
|
|
|
(1.9)
|
|
Signing bonus
amortization
|
|
12.5
|
|
|
11.7
|
|
|
0.8
|
|
EBITDA
|
|
41.6
|
|
|
37.7
|
|
|
3.9
|
|
|
|
|
|
|
|
|
Significant items
impacting EBITDA:
|
|
|
|
|
|
|
Direct monitor
costs
|
|
4.8
|
|
|
4.1
|
|
|
0.7
|
|
Compliance enhancement
program
|
|
2.0
|
|
|
1.5
|
|
|
0.5
|
|
Stock-based
compensation
|
|
2.0
|
|
|
2.6
|
|
|
(0.6)
|
|
Restructuring and
reorganization costs
|
|
0.5
|
|
|
3.5
|
|
|
(3.0)
|
|
Legal and contingent
matters
|
|
0.4
|
|
|
0.6
|
|
|
(0.2)
|
|
Severance and related
costs
|
|
0.2
|
|
|
0.1
|
|
|
0.1
|
|
Adjusted
EBITDA
|
|
$
|
51.5
|
|
|
$
|
50.1
|
|
|
$
|
1.4
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin (1)
|
|
17.7
|
%
|
|
15.9
|
%
|
|
1.8
|
%
|
|
|
|
|
|
|
|
Adjusted EBITDA
change, as reported
|
|
3
|
%
|
|
|
|
|
Adjusted EBITDA
change, constant currency adjusted
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
51.5
|
|
|
$
|
50.1
|
|
|
$
|
1.4
|
|
Cash payments for
interest
|
|
(17.6)
|
|
|
(12.8)
|
|
|
(4.8)
|
|
Cash payments for
taxes, net of refunds
|
|
(2.1)
|
|
|
(1.2)
|
|
|
(0.9)
|
|
Cash payments for
capital expenditures
|
|
(10.1)
|
|
|
(12.7)
|
|
|
2.6
|
|
Cash payments for
agent signing bonuses
|
|
(25.0)
|
|
|
(10.1)
|
|
|
(14.9)
|
|
Adjusted Free Cash
(Outflow) Flow
|
|
$
|
(3.3)
|
|
|
$
|
13.3
|
|
|
$
|
(16.6)
|
|
|
|
|
|
|
|
|
(1) Adjusted EBITDA
margin is calculated as Adjusted EBITDA divided by total
revenue.
|
TABLE
FIVE
|
MONEYGRAM
INTERNATIONAL, INC.
|
RECONCILIATION OF
CERTAIN NON-GAAP MEASURES TO RELEVANT GAAP MEASURES
|
ADJUSTED NET
INCOME AND ADJUSTED DILUTED EPS
|
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
March 31,
|
(Amounts in
millions, except per share data)
|
|
2020
|
|
2019
|
|
|
|
|
|
Net loss
|
|
$
|
(21.5)
|
|
|
$
|
(13.5)
|
|
Total adjustments
(1)
|
|
9.9
|
|
|
12.4
|
|
Tax impacts of
adjustments (2)
|
|
(2.3)
|
|
|
(2.8)
|
|
Valuation allowance
(3)
|
|
10.1
|
|
|
—
|
|
Adjusted net
loss
|
|
$
|
(3.8)
|
|
|
$
|
(3.9)
|
|
|
|
|
|
|
|
|
|
|
|
Diluted loss per
common share
|
|
$
|
(0.28)
|
|
|
$
|
(0.21)
|
|
|
|
|
|
|
Diluted adjustments
per common share
|
|
0.23
|
|
|
0.15
|
|
|
|
|
|
|
Diluted adjusted loss
per common share
|
|
$
|
(0.05)
|
|
|
$
|
(0.06)
|
|
|
|
|
|
|
Diluted
weighted-average outstanding common shares and
equivalents
|
|
77.4
|
|
|
64.8
|
|
|
|
|
|
|
|
(1) See summary of
adjustments in Table Four - EBITDA, Adjusted EBITDA, Adjusted
EBITDA Margin and Adjusted Free Cash Flow.
|
(2) Tax rates used to
calculate the tax expense impact are based on the nature and
jurisdiction of each adjustment.
|
(3) In the first
quarter of 2020, the Company recorded beginning-of-the-year
valuation allowance of $10.1 million on its U.S. deferred tax
assets.
|
TABLE
SIX
|
MONEYGRAM
INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
|
|
(Amounts in
millions, except share data)
|
|
March 31,
2020
|
|
December 31,
2019
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
131.0
|
|
|
$
|
146.8
|
|
Settlement
assets
|
|
2,944.5
|
|
|
3,237.0
|
|
Property and
equipment, net
|
|
169.6
|
|
|
176.1
|
|
Goodwill
|
|
442.2
|
|
|
442.2
|
|
Other
assets
|
|
208.4
|
|
|
182.9
|
|
Total
assets
|
|
$
|
3,895.7
|
|
|
$
|
4,185.0
|
|
LIABILITIES
|
|
|
|
|
Payment service
obligations
|
|
$
|
2,944.5
|
|
|
$
|
3,237.0
|
|
Debt, net
|
|
877.5
|
|
|
850.3
|
|
Pension and other
postretirement benefits
|
|
76.8
|
|
|
77.5
|
|
Accounts payable and
other liabilities
|
|
264.6
|
|
|
260.6
|
|
Total
liabilities
|
|
4,163.4
|
|
|
4,425.4
|
|
STOCKHOLDERS'
DEFICIT
|
|
|
|
|
Participating
convertible preferred stock - series D, $0.01 par value, 200,000
shares authorized, 71,282 issued at March 31, 2020 and December 31,
2019
|
|
183.9
|
|
|
183.9
|
|
Common stock, $0.01
par value, 162,500,000 shares authorized, 65,061,090 shares issued
at March 31, 2020 and December 31, 2019
|
|
0.7
|
|
|
0.7
|
|
Additional paid-in
capital
|
|
1,118.8
|
|
|
1,116.9
|
|
Retained
loss
|
|
(1,488.5)
|
|
|
(1,460.1)
|
|
Accumulated other
comprehensive loss
|
|
(70.3)
|
|
|
(63.5)
|
|
Treasury stock:
1,630,770 and 2,329,906 shares at March 31, 2020 and
December 31, 2019, respectively
|
|
(12.3)
|
|
|
(18.3)
|
|
Total stockholders'
deficit
|
|
(267.7)
|
|
|
(240.4)
|
|
Total liabilities and
stockholders' deficit
|
|
$
|
3,895.7
|
|
|
$
|
4,185.0
|
|
|
|
|
|
|
TABLE
SEVEN
|
MONEYGRAM
INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
|
|
Three Months
Ended
March 31,
|
(Amounts in
millions)
|
|
2020
|
|
2019
|
CASH FLOWS FROM
OPERATING ACTIVITIES
|
|
|
|
|
Net loss
|
|
$
|
(21.5)
|
|
|
$
|
(13.5)
|
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities
|
|
(4.9)
|
|
|
13.8
|
|
Net cash (used in)
provided by operating activities
|
|
(26.4)
|
|
|
0.3
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES
|
|
|
|
|
Purchases of property
and equipment
|
|
(10.1)
|
|
|
(12.7)
|
|
Net cash used in
investing activities
|
|
(10.1)
|
|
|
(12.7)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES
|
|
|
|
|
Principal payments on
debt
|
|
(1.6)
|
|
|
(2.5)
|
|
Proceeds from
revolving credit facility
|
|
23.0
|
|
|
—
|
|
Payments to tax
authorities for stock-based compensation
|
|
(0.7)
|
|
|
(0.7)
|
|
Net cash provided by
(used in) financing activities
|
|
20.7
|
|
|
(3.2)
|
|
NET CHANGE IN CASH
AND CASH EQUIVALENTS
|
|
(15.8)
|
|
|
(15.6)
|
|
CASH AND CASH
EQUIVALENTS—Beginning of period
|
|
146.8
|
|
|
145.5
|
|
CASH AND CASH
EQUIVALENTS—End of period
|
|
$
|
131.0
|
|
|
$
|
129.9
|
|
|
|
|
|
|
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SOURCE MoneyGram