Digital revenue reached an all-time high of
$92 million reaching 44% of money
transfer transactions at the end of the second quarter
Digital transactions increased 36% over the
prior year
DALLAS, Aug. 5, 2022
/PRNewswire/ -- MoneyGram International, Inc. (NASDAQ: MGI) today
reported financial results for its second quarter ended
June 30, 2022.
Second Quarter 2022 Business
Highlights
"Against the backdrop of an increasingly uncertain
macro-economic environment, we delivered 5% year-over-year revenue
growth in the second quarter on a constant currency basis. Results
for the quarter were driven by record digital revenue, partially
offset by continued softness in the walk-in retail business in
certain markets," said Alex Holmes MoneyGram Chairman and CEO. "As
we look ahead to the second half of the year, we anticipate
consumers globally will face challenges as the impact of rising
inflation places more pressure on their disposable incomes.
However, our services also rise in importance during challenging
times. We remain confident in the dedication and loyalty of our
customers to their families abroad, as we look to further support
them by investing in our digital platforms and customer experience
initiatives."
Money Transfer
highlights for the quarter include the following:
|
- Total Money Transfer revenue was $302.5
million, a 0.8% (80 basis points) decrease on a reported basis as
the dollar strengthened against virtually all major currencies.
Money Transfer revenue increased 4% on a constant currency
basis
|
|
-
-
- Total Money Transfer transactions grew 5%
year-over-year
|
|
-
-
- Total Money Transfer transactions and volume
hit an all-time high for the second quarter of 2022
|
|
-
-
- Walmart revenue declined to approximately 7%
of Money Transfer revenue. Without the impact of
Walmart, Money Transfer revenue grew 7%
on a constant currency basis.
|
|
- MoneyGram Online ("MGO") continued its strong
financial performance, a record quarter for revenue, transactions
and volume
|
|
-
-
- Total MGO Money Transfer revenue of $53.3
million representing 13% year-over-year growth
|
|
-
-
- Year-over-year, MGO cross-border online
revenue grew 17% with transactions growing 14%
|
|
-
-
- Active cross-border customer growth continued
its strong momentum increasing 11% year-over-year
|
|
- Total digital, which includes MGO, digital
partners and digital receives, continued its robust performance
reporting year-over-year transaction growth of 36% in the
second quarter
|
|
-
-
- Digital revenue reached an all-time high of
$92 million for the second quarter with an impressive 36%
year-over-year revenue growth rate
|
|
- Digital transactions accelerated from the
first quarter representing 44% of all money transfer transactions
at the end of the second quarter
|
|
Second Quarter 2022
Financial Results, Year-Over-Year
|
- Total revenue of $329.6 million was flat on a
reported basis or an increase of 5% on a constant currency
basis
|
|
-
-
- Total Revenue increased 7% on a constant
currency basis excluding Walmart money
transfer revenue
|
|
-
-
- Money transfer revenue was $302.5 million,
decreasing 0.8% (80 basis points) as the U.S. Dollar strengthened
against major currencies, or a 4% increase on a constant currency
basis, driven by 5% transaction growth
|
|
-
-
- Investment revenue was $5.1 million for the
quarter representing an increase of $3.1 million reflecting higher
prevailing money market interest rates in the quarter
|
|
- Gross Profit was $156.9 million an increase
of $5.3 million driven by the continued shift in mix to higher
margin MGO business
|
|
- Total operating expenses were $139.8 million,
an increase of $10.1 million or 8% driven by higher marketing
expenses, coupled with increased currency conversion charges and FX
losses driven by the strengthening dollar
against major currencies
|
|
- Operating Income was $17.1 million, a
decrease of $4.8 million driven by higher operating expenses
described above
|
|
- Net Income of $3.1 million driven by a $10.4
million reduction in interest expense due to the Company's debt
refinancing in the third quarter of 2021
|
|
- Fully Diluted earnings per share was
$0.03
|
|
- Fully Diluted adjusted earnings per share was
$0.09
|
|
- Adjusted EBITDA decreased 9% on a reported
basis to $50.0 million due to the dollar strengthening against
major currencies, or a decrease of 3% on a constant currency
basis
|
|
-
-
- Eliminating foreign exchange gains or losses
Adjusted EBITDA grew 4% year-over-year
|
|
Balance Sheet and
Liquidity
|
- Cash and cash equivalents were $117.4 million
as of June 30, 2022, compared to $103.7 million as of March 31,
2022
|
|
- Second quarter interest expense was $12.1
million, a decrease of $10.4 million year-over-year or a decline of
46%
|
|
- Capital expenditures were $12.1 million, an
increase of $2.1 million compared to the second quarter of
2021
|
|
Recent Management
Updates
As announced yesterday, Brian
Johnson, who currently serves as Head of Corporate Finance
and Global Treasurer, has been named Chief Financial Officer,
effective September 1, 2022. He
succeeds Larry Angelilli, who has
been appointed Executive Vice Chairman of MoneyGram, effective on
the same date. In this role, Angelilli will help ensure an orderly
transition of the CFO role and assist on external relations and
other strategic matters.
MoneyGram also announced that Anna
Greenwald, who currently serves as Chief Readiness Officer,
has been appointed Chief Operating Officer, effective immediately.
In addition to her existing responsibilities, which include
oversight of global go-to-market, product, customer care, agent
network oversight and engagement and global regulatory exam
readiness, Greenwald will also assume responsibility for the global
IT organization.
Recent Merger Updates
MoneyGram and Madison Dearborn Partners, LLC ("MDP") continue to
make progress toward completing the closing conditions of the
previously announced merger transaction. To date, money transmitter
regulators in 32 U.S. states and territories have provided their
approval or non-objection of the transaction. All supplemental U.S.
state filings have been submitted. The required pre-transaction
notifications and applications to international money transmitter
regulators have been made or are on track to be filed shortly, and
the parties continue to engage with the regulators.
As previously disclosed, the waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired
and MoneyGram stockholders have overwhelmingly approved the
transaction. The parties have submitted all applicable foreign
antitrust and Foreign Direct Investment filings.
The transaction is expected to close in the fourth quarter of
2022, subject to customary closing conditions, including receipt of
certain regulatory approvals.
About MoneyGram International,
Inc.
MoneyGram International, Inc. (NASDAQ: MGI), a global leader in
the evolution of digital P2P payments, delivers innovative
financial solutions to connect the world's communities. 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 over 150 million people
in the last five years. The Company leverages its modern, mobile,
and API-driven platform and collaborates with the world's top
brands to serve consumers through its direct-to-consumer digital
channel, global retail network, and embedded finance business for
enterprise customers. MoneyGram is also a leader in pioneering
cross-border payment innovation and blockchain-enabled settlement.
For more information, please visit ir.moneygram.com, follow
@MoneyGram on social media, and explore the website and mobile app
through moneygram.com.
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 work stoppages, lockdowns,
shelter-in-place, or restricted movement guidelines, service delays
and 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 continue to grow our Digital Channel, including
through our direct-to-consumer digital business, MoneyGram
Online;
- a security or privacy breach in systems, networks or databases
on which we rely;
- current and proposed regulations addressing consumer privacy
and data use and security;
- 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 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;
- disruptions to our computer systems and data centers and our
ability to effectively operate and adapt our technology;
- the ability of us and our agents to maintain adequate banking
relationships;
- 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 high degree of leverage and substantial debt service
obligations, significant debt covenant requirements and our ability
to comply with such requirements;
- our below investment-grade credit rating;
- our ability to maintain sufficient capital;
- weakness in economic conditions,including recession and
inflation, in both the U.S. and global markets;
- the financial health of certain European countries or the
secession of a country from the European Union;
- a significant change, material slow down or complete disruption
of international migration patterns;
- 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;
- major bank failure or sustained financial market illiquidity,
or illiquidity at our clearing, cash management and custodial
financial institutions;
- 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 ability to manage credit risks from our agents and official
check financial institution customers;
- 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;
- risks relating to the proposed Merger (as defined in the form
8-K filed on February 15, 2022),
including the possibility that the consummation of the Merger could
be delayed or not completed, and the effect of announcement or
pendency of the Merger on our business; 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, 2021, 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
|
|
Sydney
Schoolfield
|
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
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
REVENUE
|
|
|
|
|
|
|
|
|
Fee and other
revenue
|
|
$
324.5
|
|
$
327.3
|
|
$ 630.0
|
|
$ 635.4
|
Investment
revenue
|
|
5.1
|
|
2.0
|
|
7.2
|
|
4.0
|
Total
revenue
|
|
329.6
|
|
329.3
|
|
637.2
|
|
639.4
|
|
|
|
|
|
|
|
|
|
Total revenue change,
constant currency
|
|
5 %
|
|
13 %
|
|
3 %
|
|
8 %
|
|
|
|
|
|
|
|
|
|
COST OF
REVENUE
|
|
|
|
|
|
|
|
|
Commissions and other
fee expense
|
|
156.5
|
|
161.3
|
|
305.2
|
|
311.2
|
Investment commissions
expense
|
|
2.4
|
|
0.2
|
|
2.8
|
|
0.4
|
Direct transaction
expense
|
|
13.8
|
|
16.2
|
|
26.1
|
|
31.4
|
Total cost of
revenue
|
|
172.7
|
|
177.7
|
|
334.1
|
|
343.0
|
GROSS
PROFIT
|
|
156.9
|
|
151.6
|
|
303.1
|
|
296.4
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
59.3
|
|
59.0
|
|
115.8
|
|
121.2
|
Transaction and
operations support
|
|
53.3
|
|
40.3
|
|
98.4
|
|
83.7
|
Occupancy, equipment
and supplies
|
|
15.1
|
|
16.3
|
|
29.6
|
|
31.8
|
Depreciation and
amortization
|
|
12.1
|
|
14.1
|
|
24.3
|
|
29.4
|
Total operating
expenses
|
|
139.8
|
|
129.7
|
|
268.1
|
|
266.1
|
OPERATING
INCOME
|
|
17.1
|
|
21.9
|
|
35.0
|
|
30.3
|
Other
expenses
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
12.1
|
|
22.5
|
|
23.0
|
|
44.8
|
Loss on early
extinguishment of debt
|
|
—
|
|
10.3
|
|
—
|
|
10.3
|
Other non-operating
expense
|
|
1.1
|
|
0.8
|
|
2.0
|
|
1.8
|
Total other
expenses
|
|
13.2
|
|
33.6
|
|
25.0
|
|
56.9
|
Income (loss) before
income taxes
|
|
3.9
|
|
(11.7)
|
|
10.0
|
|
(26.6)
|
Income tax expense
(benefit)
|
|
0.8
|
|
(0.6)
|
|
1.8
|
|
(0.1)
|
NET INCOME
(LOSS)
|
|
$
3.1
|
|
$ (11.1)
|
|
$
8.2
|
|
$ (26.5)
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER
COMMON SHARE
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.03
|
|
$ (0.13)
|
|
$ 0.09
|
|
$ (0.32)
|
Diluted
|
|
$
0.03
|
|
$ (0.13)
|
|
$ 0.08
|
|
$ (0.32)
|
|
|
|
|
|
|
|
|
|
Weighted-average
outstanding common shares and
equivalents used in computing earnings (loss) per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
96.6
|
|
87.2
|
|
96.2
|
|
83.4
|
Diluted
|
|
100.2
|
|
87.2
|
|
100.0
|
|
83.4
|
|
TABLE
TWO
|
MONEYGRAM
INTERNATIONAL, INC.
|
SEGMENT
RESULTS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Global Funds
Transfer
|
|
|
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Money transfer
revenue
|
|
$
302.5
|
|
$
304.9
|
|
$
586.8
|
|
$ 590.3
|
Bill payment
revenue
|
|
9.6
|
|
10.4
|
|
18.9
|
|
21.2
|
Total
revenue
|
|
312.1
|
|
315.3
|
|
605.7
|
|
611.5
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
170.2
|
|
177.5
|
|
331.2
|
|
342.6
|
Gross
profit
|
|
$
141.9
|
|
$
137.8
|
|
$
274.5
|
|
$ 268.9
|
|
|
|
|
|
|
|
|
|
Money transfer revenue
change, constant currency
|
|
4 %
|
|
16 %
|
|
3 %
|
|
12 %
|
|
|
|
|
|
|
|
|
|
Financial Paper
Products
|
|
|
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months
Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Money order
revenue
|
|
$
10.6
|
|
$
10.6
|
|
$ 21.1
|
|
$ 21.0
|
Official check
revenue
|
|
6.9
|
|
3.4
|
|
10.4
|
|
6.9
|
Total
revenue
|
|
17.5
|
|
14.0
|
|
31.5
|
|
27.9
|
|
|
|
|
|
|
|
|
|
Investment commissions
expense
|
|
2.5
|
|
0.2
|
|
2.9
|
|
0.4
|
Gross profit
(1)
|
|
$
15.0
|
|
$
13.8
|
|
$ 28.6
|
|
$ 27.5
|
(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
June 30,
|
|
Six Months Ended
June 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
$
3.9
|
|
$ (11.7)
|
|
$ 10.0
|
|
$
(26.6)
|
Interest
expense
|
|
12.1
|
|
22.5
|
|
23.0
|
|
44.8
|
Depreciation and
amortization
|
|
12.1
|
|
14.1
|
|
24.3
|
|
29.4
|
Signing bonus
amortization
|
|
13.5
|
|
14.7
|
|
27.4
|
|
29.0
|
EBITDA
|
|
41.6
|
|
39.6
|
|
84.7
|
|
76.6
|
|
|
|
|
|
|
|
|
|
Significant items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
Stock-based,
contingent, incentive compensation and other
|
|
5.4
|
|
1.5
|
|
8.2
|
|
3.3
|
Merger-related
costs
|
|
1.1
|
|
—
|
|
4.8
|
|
—
|
Severance and related
costs
|
|
1.0
|
|
—
|
|
1.0
|
|
0.2
|
Legal and contingent
matters
|
|
0.7
|
|
(0.1)
|
|
1.3
|
|
—
|
Restructuring and
reorganization costs
|
|
0.3
|
|
2.2
|
|
(1.0)
|
|
8.1
|
Direct monitor
costs
|
|
(0.1)
|
|
1.1
|
|
—
|
|
4.9
|
Loss on early
extinguishment of debt
|
|
—
|
|
10.3
|
|
—
|
|
10.3
|
Compliance enhancement
program
|
|
—
|
|
0.2
|
|
—
|
|
1.3
|
Adjusted
EBITDA
|
|
$ 50.0
|
|
$ 54.8
|
|
$ 99.0
|
|
$
104.7
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
(1)
|
|
15.2 %
|
|
16.6 %
|
|
15.5 %
|
|
16.4 %
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
change, constant
currency adjusted
|
|
(3) %
|
|
(12) %
|
|
(1) %
|
|
(11) %
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$ 50.0
|
|
$ 54.8
|
|
$ 99.0
|
|
$
104.7
|
Cash payments for
interest
|
|
(5.9)
|
|
(27.1)
|
|
(22.5)
|
|
(39.0)
|
Cash (payments)
refunds for taxes, net
|
|
(3.0)
|
|
(1.5)
|
|
(6.3)
|
|
1.2
|
Cash payments for
capital expenditures
|
|
(12.1)
|
|
(10.0)
|
|
(22.4)
|
|
(21.2)
|
Cash payments for
agent signing bonuses
|
|
(6.9)
|
|
(9.7)
|
|
(21.6)
|
|
(22.7)
|
Adjusted Free Cash
Flow
|
|
$ 22.1
|
|
$
6.5
|
|
$ 26.2
|
|
$ 23.0
|
|
|
|
|
|
|
|
|
|
(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
June 30,
|
|
Six Months Ended
June 30,
|
(Amounts in
millions, except per share data)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
3.1
|
|
$
(11.1)
|
|
$
8.2
|
|
$
(26.5)
|
Total adjustments
(1)
|
|
8.4
|
|
15.2
|
|
14.3
|
|
28.1
|
Tax impacts of
adjustments (2)
|
|
(1.9)
|
|
(3.5)
|
|
(3.3)
|
|
(6.5)
|
Valuation allowance
(3)
|
|
(0.4)
|
|
—
|
|
(1.1)
|
|
1.0
|
Adjusted net
income
|
|
$
9.2
|
|
$
0.6
|
|
$
18.1
|
|
$
(3.9)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per common share
|
|
$
0.03
|
|
$
(0.13)
|
|
$
0.08
|
|
$
(0.32)
|
|
|
|
|
|
|
|
|
|
Diluted adjustments per
common share
|
|
0.06
|
|
0.14
|
|
0.10
|
|
0.27
|
|
|
|
|
|
|
|
|
|
Diluted adjusted
earnings (loss) per common share
|
|
$
0.09
|
|
$
0.01
|
|
$
0.18
|
|
$
(0.05)
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average outstanding common shares
and
equivalents
|
|
100.2
|
|
87.2
|
|
100.0
|
|
83.4
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
June 30,
2022
|
|
December 31,
2021
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
|
$
117.4
|
|
$
155.2
|
Settlement
assets
|
|
3,654.1
|
|
3,591.4
|
Property and equipment,
net
|
|
131.0
|
|
133.9
|
Goodwill
|
|
442.2
|
|
442.2
|
Right-of-use
assets
|
|
47.1
|
|
52.6
|
Other assets
|
|
112.9
|
|
101.2
|
Total
assets
|
|
$
4,504.7
|
|
$
4,476.5
|
LIABILITIES
|
|
|
|
|
Payment service
obligations
|
|
$
3,654.1
|
|
$
3,591.4
|
Debt, net
|
|
786.0
|
|
786.7
|
Pension and other
postretirement benefits
|
|
65.3
|
|
67.1
|
Lease
liabilities
|
|
50.2
|
|
56.3
|
Accounts payable and
other liabilities
|
|
134.0
|
|
160.0
|
Total
liabilities
|
|
4,689.6
|
|
4,661.5
|
STOCKHOLDERS'
DEFICIT
|
|
|
|
|
Common stock, $0.01 par
value, 162,500,000 shares authorized,
98,568,391 and 92,305,011 shares issued, 96,368,394
and 90,725,982
shares outstanding at June 30, 2022 and December 31,
2021,
respectively
|
|
1.0
|
|
0.9
|
Additional paid-in
capital
|
|
1,408.3
|
|
1,400.3
|
Retained
loss
|
|
(1,505.3)
|
|
(1,513.4)
|
Accumulated other
comprehensive loss
|
|
(72.3)
|
|
(62.8)
|
Treasury stock:
2,199,997 and 1,579,029 shares at June 30, 2022 and
December 31, 2021, respectively
|
|
(16.6)
|
|
(10.0)
|
Total stockholders'
deficit
|
|
(184.9)
|
|
(185.0)
|
Total liabilities and
stockholders' deficit
|
|
$
4,504.7
|
|
$
4,476.5
|
TABLE
SIX
|
MONEYGRAM
INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
|
|
Six Months Ended
June 30,
|
(Amounts in
millions)
|
|
2022
|
|
2021
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
(loss)
|
|
$
8.2
|
|
$
(26.5)
|
Adjustments to
reconcile net income (loss) to net cash used in operating
activities:
|
|
(11.3)
|
|
(18.4)
|
Net cash used in
operating activities
|
|
(3.1)
|
|
(44.9)
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Payments for capital
expenditures
|
|
(22.4)
|
|
(21.2)
|
Proceeds from
available-for-sale investments
|
|
0.3
|
|
0.5
|
Purchases of
interest-bearing investments
|
|
(369.1)
|
|
(210.8)
|
Proceeds from
interest-bearing investments
|
|
368.0
|
|
209.4
|
Purchase of equity
investments
|
|
(4.0)
|
|
—
|
Net cash used in
investing activities
|
|
(27.2)
|
|
(22.1)
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Principal payments on
debt
|
|
(2.0)
|
|
(103.2)
|
Prepayment call
premium
|
|
—
|
|
(4.0)
|
Change in receivables,
net
|
|
(350.4)
|
|
(31.8)
|
Change in payment
service obligations
|
|
62.7
|
|
(95.7)
|
Net proceeds from
stock issuance
|
|
—
|
|
97.6
|
Payments to tax
authorities for stock-based compensation
|
|
(6.6)
|
|
(3.6)
|
Net cash used in
financing activities
|
|
(296.3)
|
|
(140.7)
|
NET CHANGE IN CASH
AND CASH EQUIVALENTS AND SETTLEMENT
CASH AND CASH EQUIVALENTS
|
|
(326.6)
|
|
(207.7)
|
CASH AND CASH
EQUIVALENTS AND SETTLEMENT CASH AND CASH
EQUIVALENTS—Beginning of year
|
|
2,050.9
|
|
2,079.3
|
CASH AND CASH
EQUIVALENTS AND SETTLEMENT CASH AND CASH
EQUIVALENTS—End of period
|
|
$
1,724.3
|
|
$
1,871.6
|
|
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SOURCE MoneyGram