DALLAS, Oct. 28, 2021 /PRNewswire/ -- MoneyGram
International, Inc. (NASDAQ: MGI) today reported financial results
for its third quarter ended September 30,
2021.
Third Quarter 2021 Business Highlights
"Consumers continue to value our digital-first strategy, as
we delivered another strong quarter of digital growth and
cross-border payment innovation. Our direct-to-consumer channel,
MGO, reached a record high in volume and delivered incredibly
strong revenue growth of 34% compared to last year, and 229% growth
compared to 2019. Digital now represents 34% of money transfer
transactions and we're on track to reach our goal of digital
transactions representing 50% of all transactions by 2024." said
Alex Holmes, MoneyGram Chairman and
CEO. "As we enter the next stage of our digital
expansion, we are continuously focused on meeting consumer demand
with a broader set of direct-to-consumer offerings. Our recently
announced partnership with Stellar Development Foundation and
Circle's USDC stablecoin for blockchain based payments, is a bold
step in meeting the demands of a new fast-growing global consumer
base. This partnership is further evidence of our leadership in
pioneering innovative digital payment technologies."
Money Transfer highlights for the quarter include the
following:
• Total Money
Transfer revenue was $296.1 million, in-line with prior year's
performance, or 2% decrease on a constant currency basis, and grew
5% compared to the third quarter of 2019
|
|
ο Total Money
Transfer transactions grew 4% and increased 15% compared to the
third quarter of 2019
|
• MGO continued
its strong financial performance in the third quarter recording a
record quarter for volume
|
|
ο Total MGO
Money Transfer revenue increased to $46.9 million representing 34%
year-over-year growth
|
|
ο Year-over-year, MGO
cross-border online revenue continued to grow at an accelerated
pace increasing 35% with transactions growing 37%
|
|
ο Active cross-border
customer growth continued its strong momentum increasing 31%
year-over-year
|
|
ο US MGO continued to
represent the Company's largest money transfer source of both
revenue and transactions in the world
|
|
ο Five MGO country
sites now account for over 50% of their respective country's total
money transfer transactions
|
• Total digital,
which includes MGO, digital partners and digital receives,
continued its robust performance reporting year-over-year
transaction growth of 29% in the third quarter
|
|
ο Digital revenue
reached a new all-time high of $70 million for the third
quarter with an impressive 28% year-over-year revenue growth
rate
|
|
ο Digital partnership
transactions delivered a solid 17% year-over-year growth
rate
|
|
ο Transactions
received into accounts, cards and mobile wallets increased 63%
year-over-year
|
• Digital
transactions accounted for 34% of all money transfer transactions
at the end of the third quarter
|
Third Quarter 2021 Financial Results, Year-Over-Year
• Total revenue
of $319.6 million decreased 1% on a reported basis
or a decrease of 2% on a constant currency basis
|
|
ο Money transfer
revenue was $296.1 million, in-line with last year's
performance, or 2% on a constant currency basis, driven by 4%
transaction growth
|
|
ο Investment revenue
was $1.9 million for the quarter representing a decline of
$1.1 million due to lower prevailing interest rates
|
• Gross Profit was
$149.1 million an increase of $0.4 million driven by the
continued shift in mix to higher margin MGO business
|
• Total operating
expenses were $122.3 million, an increase of
$10.2 million or 9% including:
|
|
ο Transaction and
Operations Support expenses increased $14.8 million or 61%
which was driven by:
|
|
|
♦ The absence of the
$8.9 million Ripple net benefit generated in the third quarter of
2020
|
|
|
♦ The absence of the
$6.3 million foreign exchange gain generated in the third quarter
of 2020
|
|
ο Compensation and
Benefits was $53.8 million, a decrease of $2.5 million as the
Company begins to recognize the full benefits from its
restructuring this year
|
• Operating Income
was $26.8 million, a decrease of $9.8 million driven by the
absence of $8.9 million of Ripple net benefit and a $6.3 million
foreign exchange gain generated in the third quarter
2020
|
• Net loss of $15.6
million partly driven by a non-recurring $33.6 million debt
extinguishment expense related to the Company's debt refinancing
completed in the third quarter
|
• Diluted loss per
share was $0.16
|
• Diluted adjusted
earnings per share was $0.13
|
• Adjusted EBITDA
decreased 18% to $56.5 million, or 21% on a constant currency
basis
|
|
ο Adjusted EBITDA,
excluding the $8.9 million in Ripple incentives and $6.3 million
foreign exchange gain generated in the third quarter of 2020, was
5% higher year-over-year
|
• Adjusted Free Cash
Flow was $33.5 million, an increase of $8.1 million driven by a
$15.6 million reduction in cash interest expense and an $11.8
million decrease in agent cash sign-on bonus payments
|
Balance Sheet and Liquidity
• Cash and cash
equivalents were $152.6 million at quarter-end, compared to $117.0
million at the end of the second quarter of 2021
|
• Third quarter
interest expense was $13.0 million, a decrease of $10.0 million or
a decline of 43% compared to the third quarter of 2020
|
|
ο Interest expense
does not reflect the full benefit of the Company's recent debt
refinancing as it was completed mid-quarter on July 21,
2021
|
• Capital
expenditures were $10.2 million, a decrease of $0.5 million
compared to the third quarter of 2020
|
Fourth Quarter 2021 Outlook
The Company is providing the following outlook for the quarter
ending December 31, 2021:
Revenue: Approximately $325
million
- Considers normal seasonality, ongoing digital growth, and the
uncertainties concerning COVID-19
- Embedded in this projection is an assumed revenue growth rate
of 30%+ for MGO
Adjusted EBITDA: Approximately $60
million
- Considers revenue trends and no benefit from Ripple
incentives
- Implies an Adjusted EBITDA margin of 18.5%, a sequential
quarter improvement from 17.7% in Q3
Adjusted Free Cash Flow: Approximately $24 million
- Delivering growth of approximately 24% year-over-year
Conference Call
MoneyGram International will host a conference call on
October 29, 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.:
|
1-866-288-0540
|
International:
|
1-646-828-8144
|
Webcast:
|
https://viavid.webcasts.com/starthere.jsp?ei=1507507&tp_key=53b0a905ac
|
|
|
Replay:
|
U.S 1-844-512-2921 or
International 1-412-317-6671
|
Replay ID:
|
3522682
|
Replay is available
through Friday, November 5, 2021, 11:59 p.m. ET
|
About MoneyGram International, Inc.
MoneyGram is leading the evolution of digital P2P payments. With
a purpose-driven strategy to mobilize the movement of money, a
strong culture of fintech innovation, and leading customer-centric
capabilities, MoneyGram has grown to serve nearly 150 million
people across the globe over the last five years.
The Company leverages its modern, mobile, and API-driven
platform and collaborates with the world's leading brands to serve
consumers through MoneyGram Online (MGO), its direct-to-consumer
digital business, its global retail network and its emerging
embedded finance business for enterprise customers, MoneyGram as a
Service.
For more information, please visit ir.moneygram.com and follow
@MoneyGram.
Forward-Looking Statements
This communication contains forward-looking statements which are
protected as forward-looking statements under the Private
Securities Litigation Reform Act of 1995 that are not limited to
historical facts, but reflect MoneyGram's current beliefs,
expectations or intentions regarding future events and speak only
as of the date they are made. Words such as "may," "might," "will,"
"could," "should," "would," "expect," "plan," "project," "intend,"
"anticipate," "believe," "estimate," "predict," "potential,"
"pursuant," "target," "forecast," "outlook," "continue,"
"currently," and similar expressions are intended to identify such
forward-looking statements. The statements in this communication
that are not historical statements are forward-looking statements
within the meaning of the federal securities laws. Specific
forward-looking statements include, among others, statements
regarding the Company's projected results of operations and
specific factors expected to impact the Company's results of
operations. Forward-looking statements are subject to numerous
risks and uncertainties that are difficult to predict and many of
which are beyond MoneyGram's control, which could cause actual
results to differ materially from the results expressed or implied
by the statements.
These risks and uncertainties include, but are not limited
to:
- the impact of the COVID-19 pandemic or future pandemics on our
business, including the potential for work stoppages, lockdowns,
shelter-in-place, or restricted movement guidelines, service
delays, lower consumer and commercial activity;
- our ability to compete effectively;
- our ability to maintain key agent or biller relationships, or a
reduction in business or transaction volume from these
relationships, including with our largest agent, Walmart, through
its introduction of additional competing white label 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 law and regulations;
- litigation and regulatory proceedings involving us or our
agents and other commercial relationships, which could result in
material settlements, fines or penalties, revocation of required
licenses or registrations, termination of contracts, other
administrative actions or lawsuits and negative publicity;
- current and proposed regulations addressing consumer privacy
and 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, including exchange rates among
currencies;
- our offering of money transfer services through agents in
regions that are politically volatile or, in a limited number of
cases, that may be subject to certain OFAC restrictions;
- changes in tax laws or unfavorable outcomes of tax positions we
take, or a failure by us to establish adequate reserves for tax
events;
- our high degree of leverage and substantial debt service
obligations, and our ability to comply with the requirements under
our debt agreements;
- 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;
- 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
- the risks and uncertainties described in the "Risk Factors" and
"Management's Discussion and Analysis of Financial Condition and
Results of Operations" sections of MoneyGram's public period
reports filed with the U.S. Securities and Exchange Commission (the
SEC), including MoneyGram's annual report on Form 10-K for the year
ended December 31, 2020, and
subsequent quarterly reports on Form 10-Q.
Additional information concerning factors that could cause
actual results to differ materially from those in the
forward-looking statements is contained from time to time in
MoneyGram's SEC filings. MoneyGram's SEC filings may be obtained by
contacting MoneyGram, through MoneyGram's web site at
ir.moneygram.com or through the SEC's Electronic Data Gathering and
Analysis Retrieval System ("EDGAR") at www.sec.gov. MoneyGram
undertakes no obligation to publicly update or revise any
forward-looking statement.
Non-GAAP Measures
In addition to results presented in accordance with accounting
principles generally accepted in the
United States (GAAP), this news release and related tables
include certain non-GAAP financial measures, including a
presentation of EBITDA (earnings before interest, taxes,
depreciation and amortization, including agent signing bonus
amortization), Adjusted EBITDA (EBITDA adjusted for certain
significant items), Adjusted EBITDA margin, Adjusted Free Cash Flow
(Adjusted EBITDA less cash interest, cash taxes and cash payments
for capital expenditures and agent signing bonuses), constant
currency measures (which assume that amounts denominated in foreign
currencies are translated to the U.S. dollar at rates consistent
with those in the prior year), diluted adjusted income (loss) per
share and adjusted net income. In addition, we present gross profit
for our two reporting segments. The following tables include a full
reconciliation of non-GAAP financial measures to the related GAAP
financial measures. The equivalent GAAP financial measures for
projected results are not provided, and projected results do not
reflect the potential impact of certain non-GAAP adjustments, which
include (but in future periods, may not be limited to) stock-based,
contingent and incentive compensation costs; compliance enhancement
program costs; direct monitor costs; legal and contingent matter
costs; restructuring and reorganization costs; currency changes;
and the tax effect of such items. We cannot reliably predict or
estimate if and when these types of costs, adjustments or changes
may occur or their impact to our financial statements. Accordingly,
a reconciliation of the non-GAAP financial measures to the
equivalent GAAP financial measures for projected results is not
available.
We believe that these non-GAAP financial measures provide useful
information to investors because they are an indicator of the
strength and performance of ongoing business operations. These
calculations are commonly used as a basis for investors, analysts
and other interested parties to evaluate and compare the operating
performance and value of companies within our industry. Finally,
EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Free Cash
Flow, constant currency, diluted adjusted income (loss) per share
and adjusted net income (loss) figures are financial and
performance measures used by management in reviewing results of
operations, forecasting, allocating resources or establishing
employee incentive programs. Although MoneyGram believes the above
non-GAAP financial measures enhance investors' understanding of its
business and performance, these non-GAAP financial measures should
not be considered in isolation or as substitutes for the
accompanying GAAP financial measures.
Description of Tables
Table One
|
-
|
Condensed
Consolidated Statements of Operations
|
Table Two
|
-
|
Segment
Results
|
Table
Three
|
-
|
Reconciliation of
Certain Non-GAAP Measures to Relevant GAAP Measures - EBITDA,
Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash
Flow
|
Table Four
|
-
|
Reconciliation of
Certain Non-GAAP Measures to Relevant GAAP Measures - Adjusted Net
Income and Adjusted Diluted EPS
|
Table Five
|
-
|
Condensed
Consolidated Balance Sheets
|
Table Six
|
-
|
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
September 30,
|
|
2021
vs
|
|
Nine Months
Ended
September 30,
|
|
2021
vs
|
|
2021
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
|
2020
|
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
Fee and other
revenue
|
|
$
|
317.7
|
|
|
$
|
320.2
|
|
|
$
|
(2.5)
|
|
$
|
953.1
|
|
|
$
|
876.5
|
|
|
$
|
76.6
|
|
Investment
revenue
|
|
1.9
|
|
|
3.0
|
|
|
(1.1)
|
|
5.9
|
|
|
17.4
|
|
|
(11.5)
|
|
Total
revenue
|
|
319.6
|
|
|
323.2
|
|
|
(3.6)
|
|
959.0
|
|
|
893.9
|
|
|
65.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue change,
as reported
|
|
(1)
|
%
|
|
—
|
%
|
|
|
|
7
|
%
|
|
(7)
|
%
|
|
|
Total revenue change,
constant currency
|
|
(2)
|
%
|
|
(1)
|
%
|
|
|
|
4
|
%
|
|
(7)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
COST OF
REVENUE
|
|
|
|
|
|
|
|
|
|
|
|
|
Commissions and other
fee expense
|
|
154.6
|
|
|
161.3
|
|
|
(6.7)
|
|
465.8
|
|
|
445.9
|
|
|
19.9
|
|
Investment commissions
expense
|
|
0.3
|
|
|
0.2
|
|
|
0.1
|
|
0.7
|
|
|
3.4
|
|
|
(2.7)
|
|
Direct transaction
expense
|
|
15.6
|
|
|
13.0
|
|
|
2.6
|
|
47.0
|
|
|
32.5
|
|
|
14.5
|
|
Total cost of
revenue
|
|
170.5
|
|
|
174.5
|
|
|
(4.0)
|
|
513.5
|
|
|
481.8
|
|
|
31.7
|
|
GROSS
PROFIT
|
|
149.1
|
|
|
148.7
|
|
|
0.4
|
|
445.5
|
|
|
412.1
|
|
|
33.4
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
53.8
|
|
|
56.3
|
|
|
(2.5)
|
|
175.0
|
|
|
162.9
|
|
|
12.1
|
|
Transaction and
operations support (1)
|
|
39.1
|
|
|
24.3
|
|
|
14.8
|
|
122.8
|
|
|
83.6
|
|
|
39.2
|
|
Occupancy, equipment
and supplies
|
|
15.3
|
|
|
15.6
|
|
|
(0.3)
|
|
47.1
|
|
|
44.7
|
|
|
2.4
|
|
Depreciation and
amortization
|
|
14.1
|
|
|
15.9
|
|
|
(1.8)
|
|
43.5
|
|
|
49.2
|
|
|
(5.7)
|
|
Total operating
expenses
|
|
122.3
|
|
|
112.1
|
|
|
10.2
|
|
388.4
|
|
|
340.4
|
|
|
48.0
|
|
OPERATING
INCOME
|
|
26.8
|
|
|
36.6
|
|
|
(9.8)
|
|
57.1
|
|
|
71.7
|
|
|
(14.6)
|
|
Other
expenses
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
13.0
|
|
|
23.0
|
|
|
(10.0)
|
|
57.8
|
|
|
69.5
|
|
|
(11.7)
|
|
Loss on early
extinguishment of debt
|
|
33.6
|
|
|
—
|
|
|
33.6
|
|
43.9
|
|
|
—
|
|
|
43.9
|
|
Other non-operating
expense
|
|
1.0
|
|
|
1.1
|
|
|
(0.1)
|
|
2.8
|
|
|
3.4
|
|
|
(0.6)
|
|
Total other
expenses
|
|
47.6
|
|
|
24.1
|
|
|
23.5
|
|
104.5
|
|
|
72.9
|
|
|
31.6
|
|
(Loss) income before
income taxes
|
|
(20.8)
|
|
|
12.5
|
|
|
(33.3)
|
|
(47.4)
|
|
|
(1.2)
|
|
|
(46.2)
|
|
Income tax (benefit)
expense
|
|
(5.2)
|
|
|
1.6
|
|
|
(6.8)
|
|
(5.3)
|
|
|
14.0
|
|
|
(19.3)
|
|
NET (LOSS)
INCOME
|
|
$
|
(15.6)
|
|
|
$
|
10.9
|
|
|
$
|
(26.5)
|
|
$
|
(42.1)
|
|
|
$
|
(15.2)
|
|
|
$
|
(26.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(LOSS) EARNINGS
PER COMMON SHARE
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
(0.16)
|
|
|
$
|
0.14
|
|
|
$
|
(0.30)
|
|
$
|
(0.48)
|
|
|
$
|
(0.20)
|
|
|
$
|
(0.28)
|
|
Diluted
|
|
$
|
(0.16)
|
|
|
$
|
0.12
|
|
|
$
|
(0.28)
|
|
$
|
(0.48)
|
|
|
$
|
(0.20)
|
|
|
$
|
(0.28)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
outstanding common
shares and equivalents used in
computing (loss) earnings per share
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
96.0
|
|
|
77.9
|
|
|
18.1
|
|
87.7
|
|
|
77.7
|
|
|
10.0
|
|
Diluted
|
|
96.0
|
|
|
88.7
|
|
|
7.3
|
|
87.7
|
|
|
77.7
|
|
|
10.0
|
|
(1) The three and
nine months ended September 30, 2020 include Ripple market
development fees of $9.3 million and $41.0 million,
respectively, partially offset by related transaction
and trading expenses of $0.4 million and $11.2 million,
respectively.
|
TABLE
TWO
|
MONEYGRAM
INTERNATIONAL, INC.
|
SEGMENT
RESULTS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Global Funds
Transfer
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months
Ended
September 30,
|
|
2021
vs
|
|
Nine Months
Ended
September 30,
|
|
2021
vs
|
|
2021
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
|
2020
|
Money transfer
revenue
|
|
$
|
296.1
|
|
|
$
|
297.6
|
|
|
$
|
(1.5)
|
|
|
$
|
886.4
|
|
|
$
|
806.6
|
|
|
$
|
79.8
|
Bill payment
revenue
|
|
9.9
|
|
|
11.0
|
|
|
(1.1)
|
|
|
31.1
|
|
|
35.2
|
|
|
(4.1)
|
Total
revenue
|
|
$
|
306.0
|
|
|
$
|
308.6
|
|
|
$
|
(2.6)
|
|
|
$
|
917.5
|
|
|
$
|
841.8
|
|
|
$
|
75.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
$
|
170.2
|
|
|
$
|
174.4
|
|
|
$
|
(4.2)
|
|
|
$
|
512.8
|
|
|
$
|
478.4
|
|
|
$
|
34.4
|
Gross
profit
|
|
$
|
135.8
|
|
|
$
|
134.2
|
|
|
$
|
1.6
|
|
|
$
|
404.7
|
|
|
$
|
363.4
|
|
|
$
|
41.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Money transfer revenue
change,
as reported
|
|
(1)
|
%
|
|
5
|
%
|
|
|
|
10
|
%
|
|
(4)
|
%
|
|
|
Money transfer revenue
change,
constant currency
|
|
(2)
|
%
|
|
4
|
%
|
|
|
|
7
|
%
|
|
(4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Paper
Products
|
|
|
|
|
|
|
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months
Ended
September 30,
|
|
2021
vs
|
|
Nine Months
Ended
September 30,
|
|
2021
vs
|
|
2021
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
|
2020
|
Money order
revenue
|
|
$
|
10.0
|
|
|
$
|
10.4
|
|
|
$
|
(0.4)
|
|
|
$
|
31.0
|
|
|
$
|
33.3
|
|
|
$
|
(2.3)
|
Official check
revenue
|
|
3.6
|
|
|
4.2
|
|
|
(0.6)
|
|
|
10.5
|
|
|
18.8
|
|
|
(8.3)
|
Total
revenue
|
|
$
|
13.6
|
|
|
$
|
14.6
|
|
|
$
|
(1.0)
|
|
|
$
|
41.5
|
|
|
$
|
52.1
|
|
|
$
|
(10.6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment
commissions expense
|
|
$
|
0.3
|
|
|
$
|
0.1
|
|
|
$
|
0.2
|
|
|
$
|
0.7
|
|
|
$
|
3.4
|
|
|
$
|
(2.7)
|
Gross profit
(1)
|
|
$
|
13.3
|
|
|
$
|
14.5
|
|
|
$
|
(1.2)
|
|
|
$
|
40.8
|
|
|
$
|
48.7
|
|
|
$
|
(7.9)
|
(1) In
periods of extremely low interest rates, it is possible for
commissions to be close to zero, resulting in abnormally high gross
margin.
|
|
TABLE
THREE
|
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
September 30,
|
|
2021
vs
|
|
Nine Months
Ended
September 30,
|
|
2021
vs
|
|
2021
|
|
2020
|
|
2020
|
|
2021
|
|
2020
|
|
2020
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Loss) income before
income taxes
|
|
$
|
(20.8)
|
|
|
$
|
12.5
|
|
|
$
|
(33.3)
|
|
|
$
|
(47.4)
|
|
|
$
|
(1.2)
|
|
|
$
|
(46.2)
|
|
Interest
expense
|
|
13.0
|
|
|
23.0
|
|
|
(10.0)
|
|
|
57.8
|
|
|
69.5
|
|
|
(11.7)
|
|
Depreciation and
amortization
|
|
14.1
|
|
|
15.9
|
|
|
(1.8)
|
|
|
43.5
|
|
|
49.2
|
|
|
(5.7)
|
|
Signing bonus
amortization
|
|
13.8
|
|
|
14.6
|
|
|
(0.8)
|
|
|
42.8
|
|
|
39.7
|
|
|
3.1
|
|
EBITDA
|
|
20.1
|
|
|
66.0
|
|
|
(45.9)
|
|
|
96.7
|
|
|
157.2
|
|
|
(60.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Significant items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on early
extinguishment of debt
|
|
33.6
|
|
|
—
|
|
|
33.6
|
|
|
43.9
|
|
|
—
|
|
|
43.9
|
|
Stock-based,
contingent and incentive
compensation
|
|
1.6
|
|
|
1.5
|
|
|
0.1
|
|
|
4.9
|
|
|
5.1
|
|
|
(0.2)
|
|
Compliance enhancement
program
|
|
0.9
|
|
|
0.5
|
|
|
0.4
|
|
|
2.2
|
|
|
3.7
|
|
|
(1.5)
|
|
Restructuring and
reorganization
costs
|
|
0.2
|
|
|
(0.2)
|
|
|
0.4
|
|
|
8.3
|
|
|
1.0
|
|
|
7.3
|
|
Legal and contingent
matters
|
|
0.1
|
|
|
—
|
|
|
0.1
|
|
|
0.1
|
|
|
0.6
|
|
|
(0.5)
|
|
Direct monitor
costs
|
|
—
|
|
|
1.0
|
|
|
(1.0)
|
|
|
4.9
|
|
|
8.9
|
|
|
(4.0)
|
|
Severance and related
costs
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.2
|
|
|
0.2
|
|
|
—
|
|
Adjusted
EBITDA
|
|
$
|
56.5
|
|
|
$
|
68.8
|
|
|
$
|
(12.3)
|
|
|
$
|
161.2
|
|
|
$
|
176.7
|
|
|
$
|
(15.5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
margin (1)
|
|
17.7
|
%
|
|
21.3
|
%
|
|
(3.6)
|
%
|
|
16.8
|
%
|
|
19.8
|
%
|
|
(3.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
change, as
reported
|
|
(18)
|
%
|
|
|
|
|
|
(9)
|
%
|
|
|
|
|
Adjusted EBITDA
change, constant currency adjusted
|
|
(21)
|
%
|
|
|
|
|
|
(15)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$
|
56.5
|
|
|
$
|
68.8
|
|
|
$
|
(12.3)
|
|
|
$
|
161.2
|
|
|
$
|
176.7
|
|
|
$
|
(15.5)
|
|
Cash payments for
interest
|
|
(7.6)
|
|
|
(23.2)
|
|
|
15.6
|
|
|
(46.6)
|
|
|
(57.6)
|
|
|
11.0
|
|
Cash payments for
taxes, net of
refunds
|
|
(1.7)
|
|
|
5.8
|
|
|
(7.5)
|
|
|
(0.5)
|
|
|
3.3
|
|
|
(3.8)
|
|
Cash payments for
capital
expenditures
|
|
(10.2)
|
|
|
(10.7)
|
|
|
0.5
|
|
|
(31.4)
|
|
|
(30.6)
|
|
|
(0.8)
|
|
Cash payments for
agent signing
bonuses
|
|
(3.5)
|
|
|
(15.3)
|
|
|
11.8
|
|
|
(26.2)
|
|
|
(45.0)
|
|
|
18.8
|
|
Adjusted Free Cash
Flow
|
|
$
|
33.5
|
|
|
$
|
25.4
|
|
|
$
|
8.1
|
|
|
$
|
56.5
|
|
|
$
|
46.8
|
|
|
$
|
9.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Adjusted EBITDA
margin is calculated as Adjusted EBITDA divided by total
revenue.
|
TABLE
FOUR
|
MONEYGRAM
INTERNATIONAL, INC.
|
RECONCILIATION OF
CERTAIN NON-GAAP MEASURES TO RELEVANT GAAP MEASURES
|
ADJUSTED NET
INCOME AND ADJUSTED DILUTED EPS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
(Amounts in
millions, except per share data)
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
|
|
|
|
|
|
|
|
Net loss
|
|
$
|
(15.6)
|
|
|
$
|
10.9
|
|
|
$
|
(42.1)
|
|
|
$
|
(15.2)
|
|
Total adjustments
(1)
|
|
36.4
|
|
|
2.8
|
|
|
64.5
|
|
|
19.5
|
|
Tax impacts of
adjustments (2)
|
|
(8.4)
|
|
|
(0.9)
|
|
|
(14.9)
|
|
|
(4.5)
|
|
Valuation allowance
(3)
|
|
—
|
|
|
1.2
|
|
|
1.0
|
|
|
11.3
|
|
Adjusted net income
(loss)
|
|
$
|
12.4
|
|
|
$
|
14.0
|
|
|
$
|
8.5
|
|
|
$
|
11.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted (loss)
earnings per common share
|
|
$
|
(0.16)
|
|
|
$
|
0.12
|
|
|
$
|
(0.48)
|
|
|
$
|
(0.20)
|
|
|
|
|
|
|
|
|
|
|
Diluted adjustments
per common share
|
|
0.29
|
|
|
0.04
|
|
|
0.58
|
|
|
0.34
|
|
|
|
|
|
|
|
|
|
|
Diluted adjusted
earnings per common share
|
|
$
|
0.13
|
|
|
$
|
0.16
|
|
|
$
|
0.10
|
|
|
$
|
0.14
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average outstanding common shares
and equivalents
|
|
96.0
|
|
|
88.7
|
|
|
87.7
|
|
|
77.7
|
|
|
|
|
|
|
|
|
|
|
|
(1) See summary of
adjustments in Table Three - EBITDA, Adjusted EBITDA, Adjusted
EBITDA Margin and Adjusted Free Cash Flow.
|
(2) Tax rates used to
calculate the tax expense impact are based on the nature and
jurisdiction of each adjustment.
|
(3) Valuation
allowance recorded for deferred tax assets existing at the
beginning of the year.
|
TABLE
FIVE
|
MONEYGRAM
INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
|
|
(Amounts in
millions, except share data)
|
|
September 30,
2021
|
|
December 31,
2020
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
152.6
|
|
|
$
|
196.1
|
|
Settlement
assets
|
|
3,606.0
|
|
|
3,702.9
|
|
Property and
equipment, net
|
|
134.8
|
|
|
148.1
|
|
Goodwill
|
|
442.2
|
|
|
442.2
|
|
Right-of-use
assets
|
|
52.7
|
|
|
55.1
|
|
Other
assets
|
|
95.6
|
|
|
129.7
|
|
Total
assets
|
|
$
|
4,483.9
|
|
|
$
|
4,674.1
|
|
LIABILITIES
|
|
|
|
|
Payment service
obligations
|
|
$
|
3,606.0
|
|
|
$
|
3,702.9
|
|
Debt, net
|
|
801.9
|
|
|
857.8
|
|
Pension and other
postretirement benefits
|
|
71.0
|
|
|
74.5
|
|
Lease
liabilities
|
|
56.6
|
|
|
59.1
|
|
Accounts payable and
other liabilities
|
|
134.3
|
|
|
216.8
|
|
Total
liabilities
|
|
4,669.8
|
|
|
4,911.1
|
|
STOCKHOLDERS'
DEFICIT
|
|
|
|
|
Common stock, $0.01
par value, 162,500,000 shares authorized,
92,209,763 and 72,530,770 shares
issued, 91,664,034 and 72,517,539
shares outstanding at September 30,
2021 and December 31, 2020,
respectively
|
|
0.9
|
|
|
0.7
|
|
Additional paid-in
capital
|
|
1,398.0
|
|
|
1,296.0
|
|
Retained
loss
|
|
(1,517.5)
|
|
|
(1,475.3)
|
|
Accumulated other
comprehensive loss
|
|
(63.6)
|
|
|
(58.4)
|
|
Treasury stock:
545,729 and 13,231 shares at September 30, 2021 and
December 31, 2020,
respectively
|
|
(3.7)
|
|
|
—
|
|
Total stockholders'
deficit
|
|
(185.9)
|
|
|
(237.0)
|
|
Total liabilities and
stockholders' deficit
|
|
$
|
4,483.9
|
|
|
$
|
4,674.1
|
|
TABLE
SIX
|
MONEYGRAM
INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
|
|
Nine Months Ended
September 30,
|
(Amounts in
millions)
|
|
2021
|
|
2020
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net loss
|
|
$
|
(42.1)
|
|
|
$
|
(15.2)
|
|
Adjustments to
reconcile net loss to net cash (used in) provided by operating
activities:
|
|
41.5
|
|
|
67.4
|
|
Net cash (used in)
provided by operating activities
|
|
(0.6)
|
|
|
52.2
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Payments for capital
expenditures
|
|
(31.4)
|
|
|
(30.6)
|
|
Net cash used in
investing activities
|
|
(31.4)
|
|
|
(30.6)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Transaction costs for
issuance and amendment of debt
|
|
(6.5)
|
|
|
—
|
|
Proceeds from issuance
of debt
|
|
807.8
|
|
|
—
|
|
Principal payments on
debt
|
|
(889.9)
|
|
|
(4.8)
|
|
Prepayment call
premium
|
|
(16.5)
|
|
|
—
|
|
Proceeds from
revolving credit facility
|
|
—
|
|
|
23.0
|
|
Payments on revolving
credit facility
|
|
—
|
|
|
(23.0)
|
|
Net proceeds from
stock issuance
|
|
97.3
|
|
|
—
|
|
Payments to tax
authorities for stock-based compensation
|
|
(3.7)
|
|
|
(0.7)
|
|
Net cash used in
financing activities
|
|
(11.5)
|
|
|
(5.5)
|
|
NET CHANGE IN CASH
AND CASH EQUIVALENTS
|
|
(43.5)
|
|
|
16.1
|
|
CASH AND CASH
EQUIVALENTS—Beginning of year
|
|
196.1
|
|
|
146.8
|
|
CASH AND CASH
EQUIVALENTS—End of period
|
|
$
|
152.6
|
|
|
$
|
162.9
|
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multimedia:https://www.prnewswire.com/news-releases/moneygram-international-reports-third-quarter-2021-results-301411581.html
SOURCE MoneyGram