Digital revenue reached an all-time high of
$98.6 million and digital
transactions reached 47% of money transfer transactions at the end
of the fourth quarter
Digital transactions increased 47% in the
fourth quarter over the prior year
DALLAS, Feb. 24,
2023 /PRNewswire/ -- MoneyGram International,
Inc. (NASDAQ: MGI) today reported financial results for its fourth
quarter ended December 31, 2022.
Fourth Quarter Business Highlights
"MoneyGram reported strong results in the fourth quarter,
rounding out a milestone year for the company and our innovative
digital cross-border platform," said Alex
Holmes, MoneyGram Chairman and CEO. "In 2022, we greatly
expanded our digital footprint by launching new products and
services, engaging in partnerships with some of the top global
fintechs and introducing our leading digital capabilities to
additional markets around the world. We also further strengthened
our position as a leader in cross-border payment innovation and
blockchain settlement through new initiatives, including the launch
of a first-of-its-kind global on/off-ramp service for digital
wallets."
Money transfer highlights for the quarter include the
following:
|
•
|
Total money transfer
revenue was $303.4 million, an increase of $1.2 million when
compared to the same quarter in 2021. While revenues were largely
flat, they continued to be negatively impacted by a strengthening
U.S. dollar. On a constant currency basis, money transfer revenue
was up 5% compared to the prior year period.
|
|
◦
|
Total money transfer
transactions grew 8% year-over-year;
|
|
◦
|
Total money transfer
volume grew 10% on a constant currency basis;
|
|
◦
|
Walmart revenue
declined to approximately 6% of money transfer revenue. Excluding
the impact of Walmart, the money transfer revenue grew 8% on a
constant currency basis.
|
|
•
|
MoneyGram Online
("MGO") continued its strong financial performance.
|
|
◦
|
Total MGO money
transfer revenue was $52.9 million, representing 6% year-over-year
growth or 10% on a constant currency basis.
|
|
◦
|
Year-over-year, MGO
cross-border online revenue grew 9%, with transactions growing
14%;
|
|
◦
|
Active cross-border
customer growth continued its strong momentum increasing 11%
year-over-year;
|
|
◦
|
MGO transactions now
account for 25% of 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
47% in the fourth quarter.
|
|
◦
|
Digital revenue reached
an all-time high of $98.6 million for the fourth quarter with an
impressive 33% year-over-year revenue growth rate. This represents
12 consecutive quarters of double-digit revenue growth for our
digital business
|
Fourth Quarter Financial Results,
Year-Over-Year
|
•
|
Total revenue was
$342.1 million, an increase of $17.5 million or 5%. On a constant
currency basis, total revenue increased by 10%
year-over-year;
|
|
◦
|
Excluding the impact of
Walmart, total revenue increased 13% on a constant currency
basis;
|
|
◦
|
Total revenue growth
included an increase in investment revenue of $17.1 million,
driven by higher prevailing short-term U.S. interest rates in the
quarter.
|
|
•
|
Gross profit was
$160.6 million, an increase of $6.6 million or 4% driven by
top-line revenue growth led by higher investment
revenue;
|
|
•
|
Total operating
expenses were $125.5 million, a decrease of $11.9 million or 9%
driven primarily from higher legal accruals related to the NYDFS
and CFPB matters that were recorded in the fourth quarter of
2021;
|
|
•
|
Operating Income was
$35.1 million, an increase of $18.5 million or 111% which
benefited from the lower operating expenses as described above,
coupled with the improved gross profit driven by top-line revenue
growth and higher investment income earned from rising interest
rates;
|
|
•
|
Net Income was $21.8
million, an increase of $17.6 million or 419% driven by each of the
factors more fully described above;
|
|
•
|
Fully diluted earnings
per share was $0.22;
|
|
•
|
Fully diluted adjusted
earnings per share was $0.23;
|
|
•
|
Adjusted EBITDA
increased 4% on a reported basis to $63.6 million, or an increase
of 12% on a constant currency basis;
|
|
|
Full-Year Financial Results, Year-Over-Year
|
•
|
Total revenue was
$1,310.1 million, an increase of 2% on a reported basis or an
increase of 6% on a constant currency basis
|
|
◦
|
Money transfer revenue
was $1,190.3 million, largely flat with the prior year, but
increased 5% on a constant currency basis driven by 6%
transaction growth
|
|
◦
|
Investment revenue was
$37.9 million for the year representing an increase of $30.1
million due to higher prevailing interest rates
|
|
•
|
Gross Profit was $619.9
million, an increase of $20.4 million driven by top-line revenue
growth and higher investment revenue.
|
|
•
|
Total operating
expenses were $526.7 million, an increase of
$0.9 million:
|
|
◦
|
Transaction and
Operations Support expenses increased $8.1 million, or 5%
which was driven by:
|
|
|
•
|
A return to
pre-pandemic spending levels in areas such as marketing and
employee related business travel
|
|
|
•
|
Higher transaction
costs associated with the pending merger; and partially offset
by
|
|
|
•
|
Higher legal accruals
related to the NYDFS and CFPB matters which were recorded in the
fourth quarter of 2021
|
|
◦
|
Compensation and
Benefits was $228.0 million, and largely flat with
2021
|
|
◦
|
Depreciation and
Amortization was $51.7 million, down $5.3 million from
2021 due mostly to the migration away from physical hardware and
software and into more cloud-based solutions
|
|
•
|
Operating Income was
$93.2 million, an increase of $19.5 million driven by the
factors described above
|
|
•
|
Net income of $34.2
million as compared to a net loss of $37.9 million in 2021. During
2021, we incurred a $44.1 million loss on the early extinguishment
of our then outstanding indebtedness as a result our successful
refinancing.
|
|
•
|
Diluted earnings per
share was $0.34
|
|
•
|
Diluted adjusted
earnings per share was $0.52
|
|
•
|
Adjusted EBITDA
decreased 2% to $217.4 million, but increased 5% on a constant
currency basis
|
Holmes concluded, "This year, we remain confident in our
innovative digital growth strategy, and we are energized to
continue to accelerate our strategic goals. The company is on track
to capture growth from new global customer segments through a more
expansive set of fintech offerings, while reshaping our Brand
position through our title partnership with MoneyGram Haas F1 Team.
We also look forward to closing our previously announced
transaction with Madison Dearborn Partners by the end of Q1/early
Q2 and can't wait for the exciting year ahead."
Balance Sheet and Liquidity
- Cash and cash equivalents were $172.1
million as of December 31,
2022, compared to $155.2
million as of December 31,
2021;
- Fourth quarter interest expense was $14.2 million, an increase of $2.5 million year-over-year or an increase of 21%
due to higher prevailing interest rates.
- Capital expenditures were $13.6
million, a decrease of $3.6
million compared to the fourth quarter of 2021.
Recent Merger Updates
MoneyGram and Madison Dearborn Partners, LLC ("MDP") are close
to finalizing the previously announced acquisition of MoneyGram by
affiliates of MDP. Money transmission regulators in all
applicable U.S. states and territories have provided their approval
or non-objection of the transaction. In addition, the parties have
obtained all but one approval from international money transmission
regulators and have received approval from the Financial Conduct
Authority (FCA) in the United
Kingdom and the National Bank of Belgium where MoneyGram holds its European
license.
Once the final international money transmission regulatory
approval is obtained from the Reserve Bank of India, and the waiting period has expired
under the renewed HSR filing, the parties will engage in a
financing marketing period. Under the terms of the merger
agreement, there will be a marketing period of fifteen consecutive
business days and the transaction will close a few business days
thereafter.
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
December 31,
|
|
Year Ended
December 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
REVENUE
|
|
|
|
|
|
|
|
|
|
Fee and other
revenue
|
|
$ 323.1
|
|
$
322.7
|
|
$ 1,272.2
|
|
$ 1,275.8
|
|
Investment
revenue
|
|
19.0
|
|
1.9
|
|
37.9
|
|
7.8
|
|
Total
revenue
|
|
342.1
|
|
324.6
|
|
1,310.1
|
|
1,283.6
|
|
|
|
|
|
|
|
|
|
|
Total revenue change,
constant currency
|
|
10 %
|
|
1 %
|
|
6 %
|
|
4 %
|
|
|
|
|
|
|
|
|
|
|
COST OF
REVENUE
|
|
|
|
|
|
|
|
|
|
Commissions and other
fee expense
|
|
151.8
|
|
156.9
|
|
610.7
|
|
622.7
|
|
Investment commissions
expense
|
|
11.9
|
|
0.2
|
|
21.9
|
|
0.9
|
|
Direct transaction
expense
|
|
17.8
|
|
13.5
|
|
57.6
|
|
60.5
|
|
Total cost of
revenue
|
|
181.5
|
|
170.6
|
|
690.2
|
|
684.1
|
|
GROSS
PROFIT
|
|
160.6
|
|
154.0
|
|
619.9
|
|
599.5
|
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
56.4
|
|
52.8
|
|
228.0
|
|
227.8
|
|
Transaction and
operations support
|
|
39.9
|
|
56.3
|
|
187.2
|
|
179.1
|
|
Occupancy, equipment
and supplies
|
|
15.5
|
|
14.8
|
|
59.8
|
|
61.9
|
|
Depreciation and
amortization
|
|
13.7
|
|
13.5
|
|
51.7
|
|
57.0
|
|
Total operating
expenses
|
|
125.5
|
|
137.4
|
|
526.7
|
|
525.8
|
|
OPERATING
INCOME
|
|
35.1
|
|
16.6
|
|
93.2
|
|
73.7
|
|
Other
expenses
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
14.2
|
|
11.7
|
|
49.4
|
|
69.5
|
|
Loss on early
extinguishment of debt
|
|
—
|
|
0.2
|
|
—
|
|
44.1
|
|
Other non-operating
expense
|
|
1.2
|
|
0.9
|
|
4.0
|
|
3.7
|
|
Total other
expenses
|
|
15.4
|
|
12.8
|
|
53.4
|
|
117.3
|
|
Income (loss) before
income taxes
|
|
19.7
|
|
3.8
|
|
39.8
|
|
(43.6)
|
|
Income tax expense
(benefit)
|
|
(2.1)
|
|
(0.4)
|
|
5.6
|
|
(5.7)
|
|
NET INCOME
(LOSS)
|
|
$ 21.8
|
|
$ 4.2
|
|
$
34.2
|
|
$ (37.9)
|
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER
COMMON SHARE
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$ 0.23
|
|
$ 0.04
|
|
$
0.35
|
|
$ (0.42)
|
|
Diluted
|
|
$ 0.22
|
|
$ 0.04
|
|
$
0.34
|
|
$ (0.42)
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
outstanding common shares and equivalents used in computing
earnings (loss) per share
|
|
|
|
|
|
|
|
|
|
Basic
|
|
96.8
|
|
95.6
|
|
96.4
|
|
89.7
|
|
Diluted
|
|
100.3
|
|
99.6
|
|
100.1
|
|
89.7
|
|
|
TABLE
TWO
|
|
MONEYGRAM
INTERNATIONAL, INC.
|
|
SEGMENT
RESULTS
|
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
Global Funds
Transfer
|
|
|
|
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Money transfer
revenue
|
|
$
303.4
|
|
$
302.2
|
|
$ 1,190.3
|
|
$ 1,189.2
|
|
Bill payment
revenue
|
|
8.8
|
|
9.1
|
|
35.6
|
|
39.6
|
|
Total
revenue
|
|
312.2
|
|
311.3
|
|
1,225.9
|
|
1,228.8
|
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
169.5
|
|
170.4
|
|
668.2
|
|
683.2
|
|
Gross
profit
|
|
$
142.7
|
|
$
140.9
|
|
$
557.7
|
|
$ 545.6
|
|
|
|
|
|
|
|
|
|
|
Money transfer revenue
change, constant currency
|
|
5 %
|
|
2 %
|
|
5 %
|
|
6 %
|
|
|
|
|
|
|
|
|
|
|
Financial Paper
Products
|
|
|
|
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months
Ended
December 31,
|
|
Year Ended
December 31,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
Money order
revenue
|
|
$
11.9
|
|
$
9.9
|
|
$ 44.1
|
|
$ 40.9
|
|
Official check
revenue
|
|
18.0
|
|
3.4
|
|
40.1
|
|
13.9
|
|
Total
revenue
|
|
29.9
|
|
13.3
|
|
84.2
|
|
54.8
|
|
|
|
|
|
|
|
|
|
|
Investment commissions
expense
|
|
12.0
|
|
0.2
|
|
22.0
|
|
0.9
|
|
Gross profit
(1)
|
|
$
17.9
|
|
$
13.1
|
|
$ 62.2
|
|
$ 53.9
|
|
(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
December 31,
|
Year Ended
December 31,
|
|
2022
|
|
2021
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
$ 19.7
|
|
$
3.8
|
$ 39.8
|
|
$
(43.6)
|
|
Interest
expense
|
|
14.2
|
|
11.7
|
49.4
|
|
69.5
|
|
Depreciation and
amortization
|
|
13.7
|
|
13.5
|
51.7
|
|
57.0
|
|
Signing bonus
amortization
|
|
9.6
|
|
13.6
|
50.1
|
|
56.4
|
|
EBITDA
|
|
57.2
|
|
42.6
|
191.0
|
|
139.3
|
|
|
|
|
|
|
|
|
|
Significant items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
Stock-based,
contingent, incentive compensation and other
|
|
4.1
|
|
2.4
|
15.8
|
|
7.3
|
|
Merger-related
costs
|
|
1.4
|
|
—
|
7.7
|
|
—
|
|
Severance and related
costs
|
|
0.6
|
|
—
|
1.9
|
|
0.2
|
|
Legal and contingent
matters
|
|
0.2
|
|
14.0
|
1.9
|
|
14.1
|
|
Restructuring and
reorganization costs
|
|
0.1
|
|
1.1
|
(0.9)
|
|
9.4
|
|
Loss on early
extinguishment of debt
|
|
—
|
|
0.2
|
—
|
|
44.1
|
|
Compliance enhancement
program
|
|
—
|
|
0.7
|
—
|
|
2.9
|
|
Direct monitor
costs
|
|
—
|
|
—
|
—
|
|
4.9
|
|
Adjusted
EBITDA
|
|
$ 63.6
|
|
$ 61.0
|
$
217.4
|
|
$
222.2
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
(1)
|
|
18.6 %
|
|
18.8 %
|
16.6 %
|
|
17.3 %
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
change, constant
currency adjusted
|
|
12 %
|
|
(4) %
|
5 %
|
|
(12) %
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$ 63.6
|
|
$ 61.0
|
$
217.4
|
|
$
222.2
|
|
Cash payments for
interest
|
|
(8.0)
|
|
(5.2)
|
(47.5)
|
|
(51.8)
|
|
Cash (payments)
refunds for taxes, net
|
|
(4.7)
|
|
(5.2)
|
(13.7)
|
|
(5.7)
|
|
Cash payments for
capital expenditures
|
|
(13.6)
|
|
(10.0)
|
(53.8)
|
|
(41.4)
|
|
Cash payments for
agent signing bonuses
|
|
(14.0)
|
|
(9.8)
|
(36.9)
|
|
(36.0)
|
|
Adjusted Free Cash
Flow
|
|
$ 23.3
|
|
$ 30.8
|
$ 65.5
|
|
$ 87.3
|
|
|
|
|
|
|
|
|
|
(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
December 31,
|
|
Year Ended
December 31,
|
|
(Amounts in
millions, except per share data)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
21.8
|
|
$
4.2
|
|
$
34.2
|
|
$
(37.9)
|
|
Total adjustments
(1)
|
|
6.4
|
|
18.4
|
|
26.4
|
|
82.9
|
|
Tax impacts of
adjustments (2)
|
|
(0.2)
|
|
(1.0)
|
|
(5.2)
|
|
(15.9)
|
|
Valuation allowance
(3)
|
|
(4.7)
|
|
0.2
|
|
(3.3)
|
|
1.2
|
|
Adjusted net
income
|
|
$
23.3
|
|
$
21.8
|
|
$
52.1
|
|
$
30.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per common share
|
|
$
0.22
|
|
$
0.04
|
|
$
0.34
|
|
$
(0.42)
|
|
|
|
|
|
|
|
|
|
|
Diluted adjustments per
common share
|
|
0.01
|
|
0.18
|
|
0.18
|
|
0.76
|
|
|
|
|
|
|
|
|
|
|
Diluted adjusted
earnings (loss) per common share
|
|
$
0.23
|
|
$
0.22
|
|
$
0.52
|
|
$
0.34
|
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average outstanding common shares
and
equivalents
|
|
100.3
|
|
99.6
|
|
100.1
|
|
89.7
|
|
|
|
|
|
|
|
|
|
|
|
(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)
|
|
December 31,
2022
|
|
December 31,
2021
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
172.1
|
|
$
155.2
|
|
Settlement
assets
|
|
3,607.2
|
|
3,591.4
|
|
Property and equipment,
net
|
|
134.5
|
|
133.9
|
|
Goodwill
|
|
442.2
|
|
442.2
|
|
Right-of-use
assets
|
|
42.5
|
|
52.6
|
|
Other assets
|
|
106.7
|
|
101.2
|
|
Total
assets
|
|
$
4,505.2
|
|
$
4,476.5
|
|
LIABILITIES
|
|
|
|
|
|
Payment service
obligations
|
|
$
3,607.2
|
|
$
3,591.4
|
|
Debt, net
|
|
785.4
|
|
786.7
|
|
Pension and other
postretirement benefits
|
|
53.3
|
|
67.1
|
|
Lease
liabilities
|
|
45.4
|
|
56.3
|
|
Accounts payable and
other liabilities
|
|
159.7
|
|
160.0
|
|
Total
liabilities
|
|
4,651.0
|
|
4,661.5
|
|
STOCKHOLDERS'
DEFICIT
|
|
|
|
|
|
Common stock, $0.01 par
value, 162,500,000 shares authorized, 98,964,065 and 92,305,011
shares issued,
96,626,432 and 90,725,982 shares outstanding at December 31, 2022
and December 31, 2021, respectively
|
|
1.0
|
|
0.9
|
|
Additional paid-in
capital
|
|
1,415.3
|
|
1,400.3
|
|
Retained
loss
|
|
(1,479.2)
|
|
(1,513.4)
|
|
Accumulated other
comprehensive loss
|
|
(64.9)
|
|
(62.8)
|
|
Treasury stock:
2,337,633 and 1,579,029 shares at December 31, 2022 and December
31, 2021, respectively
|
|
(18.0)
|
|
(10.0)
|
|
Total stockholders'
deficit
|
|
(145.8)
|
|
(185.0)
|
|
Total liabilities and
stockholders' deficit
|
|
$
4,505.2
|
|
$
4,476.5
|
|
TABLE
SIX
|
|
MONEYGRAM
INTERNATIONAL, INC.
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
|
(Unaudited)
|
|
|
|
|
|
Year Ended December
31,
|
|
(Amounts in
millions)
|
|
2022
|
|
2021
|
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
|
Net income
(loss)
|
|
$
34.2
|
|
$
(37.9)
|
|
Adjustments to
reconcile net income (loss) to net cash provided by operating
activities:
|
|
51.5
|
|
75.0
|
|
Net cash provided by
operating activities
|
|
85.7
|
|
37.1
|
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
|
Payments for capital
expenditures
|
|
(53.8)
|
|
(41.4)
|
|
Proceeds from
available-for-sale investments
|
|
0.6
|
|
0.8
|
|
Purchases of
interest-bearing investments
|
|
(956.4)
|
|
(768.0)
|
|
Proceeds from
interest-bearing investments
|
|
951.0
|
|
766.6
|
|
Purchase of equity
investments
|
|
(4.0)
|
|
(5.0)
|
|
Sale of equity
investments
|
|
—
|
|
2.5
|
|
Net cash used in
investing activities
|
|
(62.6)
|
|
(44.5)
|
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
|
Transaction costs for
issuance and amendment of debt
|
|
—
|
|
(6.6)
|
|
Proceeds from issuance
of debt
|
|
—
|
|
807.8
|
|
Principal payments on
debt
|
|
(4.0)
|
|
(905.9)
|
|
Prepayment call
premium
|
|
—
|
|
(16.5)
|
|
Change in receivables,
net
|
|
(406.6)
|
|
124.6
|
|
Change in payment
service obligations
|
|
15.8
|
|
(111.5)
|
|
Net proceeds from
stock issuance
|
|
—
|
|
97.1
|
|
Stock
repurchases
|
|
—
|
|
(6.2)
|
|
Payments to tax
authorities for stock-based compensation
|
|
(8.0)
|
|
(3.8)
|
|
Net cash (used in)
provided by financing activities
|
|
(402.8)
|
|
(21.0)
|
|
NET CHANGE IN CASH
AND CASH EQUIVALENTS AND SETTLEMENT CASH AND CASH
EQUIVALENTS
|
|
(379.7)
|
|
(28.4)
|
|
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
year
|
|
$
1,671.2
|
|
$
2,050.9
|
|
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