Third quarter GAAP earnings per share (EPS)
of $0.45, adjusted EPS of $0.42; 21.3% GAAP operating margin, 20.6%
adjusted operating margin
“Evolve 2025” strategy starts to take root:
new digital U.S. outbound customer growth accelerates 26% in
September
Reaffirms 2022 Financial Outlook
The Western Union Company (NYSE: WU) today reported third
quarter 2022 financial results and reaffirmed its full year
financial outlook.
The Company’s third quarter revenue of $1.1 billion declined 15%
on a reported basis, or 6% on a constant currency basis excluding
the contribution from Business Solutions, compared to the prior
year period. The suspension of operations in Russia and Belarus
negatively impacted revenue by approximately three percentage
points, while Argentina inflation benefited revenue by
approximately one percentage point.
GAAP EPS in the third quarter was $0.45, compared to $0.57 in
the prior year period. The year-over-year decrease in GAAP EPS was
primarily due to lower operating profit, partially offset by a
lower effective GAAP tax rate and lower share count.
Adjusted EPS in the third quarter was $0.42, compared to $0.63
in the prior year period. The year-over-year decline in adjusted
EPS was driven by lower operating profit and a higher adjusted
effective tax rate, partially offset by lower share count. For a
full reconciliation between GAAP and Adjusted metrics, please see
the “Non-GAAP Measures” section of this press release.
In the prior year period, Business Solutions contributed
approximately $0.09 to GAAP and adjusted EPS, while operations in
Russia and Belarus contributed approximately $0.06 to GAAP and
adjusted EPS.
“While third quarter performance was in-line with our prior
outlook, it remains below our expectations for longer term results.
We remain on track to meet our full year financial outlook,” said
Devin McGranahan, President and Chief Executive Officer of Western
Union.
McGranahan added, “As a company, we remain focused on execution
of our ‘Evolve 2025’ strategy that we shared at Investor Day. While
our digital business slowed and performed below our longer-term
expectations in the quarter, we were pleased with early positive
results of our revised marketing strategy as U.S. outbound new
digital customer acquisition accelerated to double-digit growth in
the month of September.”
Interim Chief Financial Officer Matt Cagwin stated, “Europe and
CIS continued to be the largest drag on results as the epicenter of
the conflict in Ukraine. In North America, we saw quarterly
sequential improvement in transactions and new customers driven by
our enhanced marketing program, while our business in Latin America
and Caribbean continued to perform solidly in the quarter.”
Q3 Business Highlights
- C2C revenues declined 11% on a reported basis, or 8% constant
currency, while transactions declined 12% compared to the prior
year period. The suspension of operations in Russia and Belarus
negatively impacted C2C revenue and transactions by 3% and 9%,
respectively. Regionally, transaction declines in Europe and CIS,
North America, APAC, and MEASA were partially offset by transaction
growth in LACA.
- Digital money transfer revenues declined 12% on a reported
basis, or 9% constant currency, while transactions declined 20%.
Digital money transfer represented 24% and 34% of total C2C
revenues and transactions, respectively. The suspension of
operations in Russia and Belarus negatively impacted digital money
transfer revenue and transactions by 7% and 22%, respectively.
- Branded Digital revenue declined 8% on a reported basis, or 5%
constant currency on transaction declines of 1%. The suspension of
operations in Russia and Belarus negatively impacted both Branded
Digital revenue and transactions by 2% in the quarter.
Q3 Financial Highlights
- GAAP operating margin in the quarter was 21.3%, compared to
24.8% in the prior year period. The adjusted operating margin was
20.6% compared to 25.2% in the prior year period, with the prior
year positively impacted by 90 basis points from the inclusion of
Business Solutions. The decrease in the adjusted operating margin
in the quarter was primarily due to lower revenue and increased
strategic investments in technology and marketing.
- The GAAP effective tax rate in the quarter was 10.2%, compared
to 20.2% in the prior year period, and the decrease was primarily
due to changes in discrete tax items offset by the sale of Business
Solutions and the Company's decision to suspend its operations in
Russia and Belarus. The adjusted effective tax rate was 15.5% in
the quarter, compared to 13.7% in the prior year period, primarily
due to an increase in the proportion of higher taxed earnings and
the effects of changes in U.S. tax rules.
- Cash flow from operating activities was $522 million
year-to-date. The Company returned $450 million to shareholders
year-to-date, consisting of $273 million in dividends and $177
million of share repurchases.
2022 Outlook
Today, the Company reaffirmed its full year 2022 financial
outlook provided on August 3, 2022. The outlook assumes current
macroeconomic conditions will continue for the remainder of the
year.
During the third quarter, the Company agreed with Goldfinch
Partners LLC and The Baupost Group LLC to complete the divestiture
of Business Solutions in three closings instead of two, the first
of which occurred on March 1, 2022. GAAP figures reflect an
expected partial year of Business Solutions ownership, including
contractual payments to the buyers, representing profits between
the first and third closings, associated divestiture and
acquisition costs, exit costs, and an estimated pre-tax gain of
approximately $274 million of which $151 million was recognized
year-to-date. The second closing, which includes the United Kingdom
operations, is currently expected to occur in December 2022,
pending required regulatory approvals, and which will result in a
pre-tax gain of approximately $93 million, subject to regulatory
capital adjustments. The third closing, which includes the European
Union operations, is currently expected to occur in the first
quarter of 2023, pending required regulatory approvals, at which
time the remainder of the gain will be recognized, subject to
regulatory capital adjustments.
Adjusted revenue growth and operating margin exclude
contributions from Business Solutions. In addition, adjusted
operating margin excludes associated divestiture and acquisition
costs, Business Solutions exit costs, and costs related to the exit
from Russia and Belarus. The adjusted effective tax rate and EPS
exclude the expected gain on sale of Business Solutions,
acquisition and divestiture costs, Business Solutions exit costs,
exit costs from Russia and Belarus, and the reversal of uncertain
tax positions.
The 2022 outlook is as follows:
Revenue
GAAP: approximately -11% to
-13%
Adjusted (constant currency, excluding
the impact of Argentina inflation and proforma for the
planned sale of Business Solutions): mid-single digit
decline
Operating Profit Margin
GAAP and Adjusted: a range of 20%
to 21%
Effective Tax Rate
GAAP: approximately 20%
Adjusted: mid-teens range
EPS
GAAP: $2.18 - $2.28
Adjusted: $1.75 - $1.85
Non-GAAP Measures
Western Union presents a number of non-GAAP financial measures
because management believes that these metrics provide meaningful
supplemental information in addition to the GAAP metrics and
provide comparability and consistency to prior periods. Constant
currency results assume foreign revenues are translated from
foreign currencies to the U.S. dollar, net of the effect of foreign
currency hedges, at rates consistent with those in the prior
year.
Reconciliations of non-GAAP to comparable GAAP measures are
available in the accompanying schedules and in the “Investor
Relations” section of the Company’s website at
https://ir.westernunion.com.
Adjusted constant currency revenue growth metrics for 2022
exclude contributions from Business Solutions. Adjusted operating
profit metrics for 2022 exclude contributions from Business
Solutions, acquisition and divestiture costs, Russia and Belarus
exit costs, and Business Solutions exit costs. The adjusted
effective tax rate and EPS metrics for 2022 exclude the expected
gain on sale of Business Solutions, acquisition and divestiture
costs, Business Solutions exit costs, exit costs from Russia and
Belarus, and the reversal of uncertain tax positions.
Adjusted constant currency revenue growth metrics for 2021
exclude contributions from Business Solutions. Adjusted operating
profit metrics for 2021 periods exclude acquisition and divestiture
costs. Adjusted tax rate and earnings per share metrics for 2021
periods exclude the following items and the related taxes, as
applicable: acquisition and divestiture costs, the impact from the
gain on an investment sale, debt retirement expenses, Business
Solutions change in permanent reinvestment tax assertion, and
non-cash expenses associated with the termination of the Company’s
pension plan.
Additional Statistics
Additional key statistics for the quarter and historical trends
can be found in the supplemental tables included with this press
release.
All amounts included in the supplemental tables to this press
release are rounded to the nearest tenth of a million, except as
otherwise noted. As a result, the percentage changes and margins
disclosed herein may not recalculate precisely using the rounded
amounts provided.
Environmental, Social, and Governance
(ESG)
Western Union is committed to making a positive impact. For more
details on how Western Union is addressing some of the most
pressing issues facing society, our shared environment, and our
Company, please view our latest ESG report:
https://corporate.westernunion.com/esg.
Investor and Analyst Conference Call
and Presentation
The Company will host a conference call and webcast at 4:30 p.m.
ET today.
To listen to the conference call via telephone in the U.S., dial
+1 (669) 900-6833 or +1 (253) 215-8782 fifteen minutes prior to the
start of the call, followed by the meeting ID, which is 989 1814
1385 and the passcode, which is 686785. To listen to the conference
call via telephone outside the U.S., dial the country number from
the international directory, followed
by the meeting ID, which is 989 1814 1385 and the passcode, which
is 686785.
The webcast and presentation will be available at
https://ir.westernunion.com. Registration for the event is
required, so please register at least fifteen minutes prior to the
scheduled start time. A webcast replay will be available shortly
after the event.
Safe Harbor Compliance Statement for Forward-Looking
Statements
This press release contains certain statements that are
forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are not guarantees
of future performance and involve certain risks, uncertainties, and
assumptions that are difficult to predict. Actual outcomes and
results may differ materially from those expressed in, or implied
by, our forward-looking statements. Words such as "expects,"
"intends," "targets," "anticipates," "believes," "estimates,"
"guides," "provides guidance," "provides outlook," "projects,"
"designed to," and other similar expressions or future or
conditional verbs such as "may," "will," "should," "would,"
"could," and "might" are intended to identify such forward-looking
statements. Readers of this press release of The Western Union
Company (the "Company," "Western Union," "we," "our," or "us")
should not rely solely on the forward-looking statements and should
consider all uncertainties and risks discussed in the Risk Factors
section and throughout the Annual Report on Form 10-K for the year
ended December 31, 2021. The statements are only as of the date
they are made, and the Company undertakes no obligation to update
any forward-looking statement.
Possible events or factors that could cause results or
performance to differ materially from those expressed in our
forward-looking statements include the following: (i) events
related to our business and industry, such as: changes in general
economic conditions and economic conditions in the regions and
industries in which we operate, including global economic downturns
and trade disruptions, or significantly slower growth or declines
in the money transfer, payment service, and other markets in which
we operate, including downturns or declines related to
interruptions in migration patterns or other events, such as public
health emergencies, epidemics, or pandemics, such as COVID-19,
civil unrest, war, terrorism, natural disasters, or non-performance
by our banks, lenders, insurers, or other financial services
providers; failure to compete effectively in the money transfer and
payment service industry, including among other things, with
respect to price and customer experience, with global and niche or
corridor money transfer providers, banks and other money transfer
and payment service providers, including digital, mobile and
internet-based services, card associations, and card-based payment
providers, and with digital currencies and related exchanges and
protocols, and other innovations in technology and business models;
geopolitical tensions, political conditions and related actions,
including trade restrictions and government sanctions, which may
adversely affect our business and economic conditions as a whole,
including interruptions of United States or other government
relations with countries in which we have or are implementing
significant business relationships with agents, clients, or other
partners; deterioration in customer confidence in our business, or
in money transfer and payment service providers generally; failure
to maintain our agent network and business relationships under
terms consistent with or more advantageous to us than those
currently in place; our ability to adopt new technology and develop
and gain market acceptance of new and enhanced services in response
to changing industry and consumer needs or trends; mergers,
acquisitions, and the integration of acquired businesses and
technologies into our Company, divestitures, and the failure to
realize anticipated financial benefits from these transactions, and
events requiring us to write down our goodwill; decisions to change
our business mix; changes in, and failure to manage effectively,
exposure to foreign exchange rates, including the impact of the
regulation of foreign exchange spreads on money transfers and
payment transactions; changes in tax laws, or their interpretation,
any subsequent regulation, and potential related state income tax
impacts, and unfavorable resolution of tax contingencies; any
material breach of security, including cybersecurity, or safeguards
of or interruptions in any of our systems or those of our vendors
or other third parties; cessation of or defects in various services
provided to us by third-party vendors; our ability to realize the
anticipated benefits from restructuring-related initiatives, which
may include decisions to downsize or to transition operating
activities from one location to another, and to minimize any
disruptions in our workforce that may result from those
initiatives; failure to manage credit and fraud risks presented by
our agents, clients, and consumers; adverse rating actions by
credit rating agencies; our ability to protect our trademarks,
patents, copyrights, and other intellectual property rights, and to
defend ourselves against potential intellectual property
infringement claims; our ability to attract and retain qualified
key employees and to manage our workforce successfully; material
changes in the market value or liquidity of securities that we
hold; restrictions imposed by our debt obligations; (ii) events
related to our regulatory and litigation environment, such as:
liabilities or loss of business resulting from a failure by us, our
agents, or their subagents to comply with laws and regulations and
regulatory or judicial interpretations thereof, including laws and
regulations designed to protect consumers, or detect and prevent
money laundering, terrorist financing, fraud, and other illicit
activity; increased costs or loss of business due to regulatory
initiatives and changes in laws, regulations and industry practices
and standards, including changes in interpretations, in the United
States and abroad, affecting us, our agents or their subagents, or
the banks with which we or our agents maintain bank accounts needed
to provide our services, including related to anti-money laundering
regulations, anti-fraud measures, our licensing arrangements,
customer due diligence, agent and subagent due diligence,
registration and monitoring requirements, consumer protection
requirements, remittances, and immigration; liabilities, increased
costs or loss of business and unanticipated developments resulting
from governmental investigations and consent agreements with or
enforcement actions by regulators; liabilities resulting from
litigation, including class-action lawsuits and similar matters,
and regulatory enforcement actions, including costs, expenses,
settlements, and judgments; failure to comply with regulations and
evolving industry standards regarding consumer privacy, data use,
the transfer of personal data between jurisdictions, and
information security, including with respect to the General Data
Protection Regulation in the European Union and the California
Consumer Privacy Act; failure to comply with the Dodd-Frank Wall
Street Reform and Consumer Protection Act, as well as regulations
issued pursuant to it and the actions of the Consumer Financial
Protection Bureau and similar legislation and regulations enacted
by other governmental authorities in the United States and abroad
related to consumer protection and derivative transactions; effects
of unclaimed property laws or their interpretation or the
enforcement thereof; failure to maintain sufficient amounts or
types of regulatory capital or other restrictions on the use of our
working capital to meet the changing requirements of our regulators
worldwide; changes in accounting standards, rules and
interpretations, or industry standards affecting our business;
(iii) other events, such as catastrophic events; and management’s
ability to identify and manage these and other risks.
About Western Union
The Western Union Company (NYSE: WU) is a global leader in
cross-border, cross-currency money movement and payments. Western
Union’s platform provides seamless cross-border flows and its
leading global financial network bridges more than 200 countries
and territories and approximately 130 currencies. We connect
consumers, businesses, financial institutions, and governments
through one of the world’s widest reaching networks, accessing
billions of bank accounts, millions of digital wallets and cards,
and a substantial global network of retail locations. Western Union
connects the world to bring boundless possibilities within reach.
For more information, visit www.westernunion.com.
WU-G
THE WESTERN UNION COMPANY KEY STATISTICS
(Unaudited)
Notes*
3Q21
4Q21
FY2021
1Q22
2Q22
3Q22
YTD 3Q22
Consolidated Metrics Revenues (GAAP) - YoY % change
2%
1%
5%
(4)%
(12)%
(15)%
(11)%
Adjusted revenues (non-GAAP) - YoY % change (a)
2%
2%
4%
(2)%
(8)%
(11)%
(7)%
Adjusted revenues, excluding Business Solutions (non-GAAP) - YoY %
Change (a)
0%
1%
4%
(1)%
(4)%
(6)%
(4)%
Operating margin (GAAP)
24.8%
24.7%
22.1%
20.5%
23.2%
21.3%
21.7%
Adjusted operating margin (non-GAAP) (b)
25.2%
24.9%
22.5%
22.5%
23.3%
21.2%
22.3%
Adjusted operating margin, excluding Business Solutions operating
income (non-GAAP) (1) (b)
N/A
N/A
N/A
21.8%
23.3%
20.6%
22.0%
EBITDA margin (non-GAAP) (c)
28.8%
28.4%
26.3%
24.6%
27.2%
25.4%
25.7%
Consumer-to-Consumer (C2C) Segment Metrics Revenues
(GAAP) - YoY % change
0%
(1)%
4%
(5)%
(9)%
(11)%
(8)%
Adjusted revenues (non-GAAP) - YoY % change (g)
(1)%
0%
3%
(3)%
(6)%
(8)%
(6)%
Transactions (in millions)
76.6
78.3
305.9
69.7
68.2
66.9
204.8
Transactions - YoY % change
(1)%
0%
5%
(4)%
(13)%
(12)%
(10)%
Total principal ($- billions) $
27.7
$
27.7
$
109.0
$
24.8
$
24.5
$
24.1
$
73.4
Principal per transaction, as reported - YoY % change
4%
4%
8%
1%
0%
0%
0%
Principal per transaction, constant currency - YoY % change (h)
3%
4%
6%
3%
4%
4%
4%
Cross-border principal, as reported - YoY % change
4%
5%
15%
(3)%
(12)%
(13)%
(10)%
Cross-border principal, constant currency - YoY % change (i)
3%
5%
14%
(1)%
(9)%
(9)%
(6)%
Operating margin
24.3%
24.2%
22.2%
20.7%
22.0%
19.7%
20.8%
Digital money transfer revenues (GAAP) - YoY % change (hh)
15%
13%
22%
5%
(6)%
(12)%
(4)%
Digital money transfer foreign currency translation impact (k)
(1)%
(1)%
(1)%
1%
3%
3%
2%
Adjusted Digital money transfer revenues (non-GAAP) - YoY % change
(hh)
14%
12%
21%
6%
(3)%
(9)%
(2)%
Digital money transfer transactions - YoY % change
19%
17%
32%
4%
(20)%
(20)%
(13)%
Branded Digital revenues (GAAP) - YoY % change (gg)
12%
9%
18%
4%
(1)%
(8)%
(2)%
Branded Digital foreign currency translation impact (k)
(1)%
0%
(1)%
1%
2%
3%
3%
Adjusted Branded Digital revenues (non-GAAP) - YoY % change (gg)
11%
9%
17%
5%
1%
(5)%
1%
Branded Digital transactions - YoY % change (gg)
9%
6%
19%
0%
(3)%
(1)%
(1)%
C2C Segment Regional Metrics - YoY % change NA region
revenues (GAAP) (aa), (bb)
(2)%
2%
1%
(1)%
(2)%
(5)%
(3)%
NA region foreign currency translation impact (k)
0%
0%
0%
0%
0%
0%
0%
Adjusted NA region revenues (non-GAAP) (aa), (bb)
(2)%
2%
1%
(1)%
(2)%
(5)%
(3)%
NA region transactions (aa), (bb)
(5)%
(2)%
(1)%
(6)%
(6)%
(5)%
(6)%
EU & CIS region revenues (GAAP) (aa), (cc)
(3)%
(8)%
3%
(14)%
(21)%
(23)%
(20)%
EU & CIS region foreign currency translation impact (k)
(2)%
1%
(3)%
4%
5%
7%
6%
Adjusted EU & CIS region revenues (non-GAAP) (aa), (cc)
(5)%
(7)%
0%
(10)%
(16)%
(16)%
(14)%
EU & CIS region transactions (aa), (cc)
3%
1%
13%
(7)%
(30)%
(32)%
(23)%
MEASA region revenues (GAAP) (aa), (dd)
(2)%
2%
4%
2%
(4)%
(5)%
(2)%
MEASA region foreign currency translation impact (k)
0%
0%
0%
1%
1%
2%
1%
Adjusted MEASA region revenues (non-GAAP) (aa), (dd)
(2)%
2%
4%
3%
(3)%
(3)%
(1)%
MEASA region transactions (aa), (dd)
2%
6%
10%
5%
(3)%
(1)%
0%
LACA region revenues (GAAP) (aa), (ee)
25%
8%
22%
2%
2%
0%
1%
LACA region foreign currency translation impact (k)
1%
4%
2%
3%
2%
4%
4%
Adjusted LACA region revenues (non-GAAP) (aa), (ee)
26%
12%
24%
5%
4%
4%
5%
LACA region transactions (aa), (ee)
10%
2%
9%
2%
4%
3%
3%
APAC region revenues (GAAP) (aa), (ff)
1%
0%
6%
(6)%
(10)%
(16)%
(11)%
APAC region foreign currency translation impact (k)
(2)%
0%
(3)%
3%
4%
5%
4%
Adjusted APAC region revenues (non-GAAP) (aa), (ff)
(1)%
0%
3%
(3)%
(6)%
(11)%
(7)%
APAC region transactions (aa), (ff)
(13)%
(13)%
(7)%
(13)%
(11)%
(11)%
(12)%
% of C2C Revenue NA region revenues (aa), (bb)
37%
38%
37%
39%
40%
40%
39%
EU & CIS region revenues (aa), (cc)
32%
31%
32%
29%
28%
28%
29%
MEASA region revenues (aa), (dd)
15%
15%
15%
17%
16%
16%
16%
LACA region revenues (aa), (ee)
9%
9%
9%
9%
10%
10%
10%
APAC region revenues (aa), (ff)
7%
7%
7%
6%
6%
6%
6%
Digital money transfer revenues (aa)
24%
24%
24%
25%
25%
24%
25%
Other (primarily bill payments businesses in Argentina
and the United States and money orders) Revenues (GAAP) - YoY %
change
3%
5%
(1)%
8%
19%
0%
9%
Operating margin
18.3%
21.3%
19.6%
31.7%
40.1%
33.4%
35.3%
% of Total Company Revenue (GAAP)
Consumer-to-Consumer segment revenues
86%
87%
87%
86%
90%
90%
89%
Business Solutions segment revenues
9%
8%
8%
8%
3%
4%
5%
Other revenues
5%
5%
5%
6%
7%
6%
6%
(1) Concurrent with the sale in the first quarter of 2022,
the Business Solutions operating income has been excluded. See
tickmark (r) below for more information. * See the “Notes to Key
Statistics” section of the press release for the applicable Note
references and the reconciliation of non-GAAP financial measures,
unless already reconciled herein.
THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) (in millions, except per share amounts)
Three Months Ended Nine Months Ended
September 30, September 30,
2022
2021
% Change
2022
2021
% Change
Revenues $
1,089.6
$
1,286.3
(15)%
$
3,383.6
$
3,786.0
(11)%
Expenses: Cost of services
637.3
720.1
(12)%
1,945.4
2,181.1
(11)%
Selling, general, and administrative
220.5
247.6
(11)%
704.9
798.6
(12)%
Total expenses
857.8
967.7
(11)%
2,650.3
2,979.7
(11)%
Operating income
231.8
318.6
(27)%
733.3
806.3
(9)%
Other income/(expense): Gain on divestiture of business (a)
—
—
(b)
151.4
—
(b) Interest income
4.9
0.4
(b)
7.3
1.1
(b) Interest expense
(25.2)
(25.7)
(2)%
(74.8)
(79.7)
(6)%
Other income/(expense), net
(17.8)
(1.8)
(b)
(25.1)
26.8
(b) Total other income/(expense), net
(38.1)
(27.1)
41%
58.8
(51.8)
(b) Income before income taxes
193.7
291.5
(34)%
792.1
754.5
5%
Provision for income taxes
19.8
58.8
(66)%
130.9
117.5
11%
Net income $
173.9
$
232.7
(25)%
$
661.2
$
637.0
4%
Earnings per share: Basic $
0.45
$
0.57
(21)%
$
1.70
$
1.56
9%
Diluted $
0.45
$
0.57
(21)%
$
1.70
$
1.55
10%
Weighted-average shares outstanding: Basic
386.5
406.3
388.8
409.1
Diluted
387.6
408.0
389.9
411.3
(a) On March 1, 2022, the Company completed the first close of the
sale of its Business Solutions business to Goldfinch Partners LLC
and The Baupost Group LLC (collectively, the "Buyer"), and received
cash consideration of $896.4 million, net of cash divested, subject
to the remaining closes and regulatory capital adjustments. The
first close excluded the operations in the European Union and the
United Kingdom. The second closing is expected to occur in December
2022, and includes the United Kingdom operations. The third closing
is expected to occur in the first quarter of 2023 and includes the
European Union operations. (b) Calculation not meaningful.
THE
WESTERN UNION COMPANY CONDENSED CONSOLIDATED BALANCE
SHEETS (Unaudited) (in millions, except per share
amounts)
September 30,
December 31,
2022
2021
Assets Cash and cash equivalents $
1,176.1
$
1,208.3
Settlement assets
3,095.7
2,843.5
Property and equipment, net of accumulated depreciation of $635.4
and $650.4, respectively
112.0
129.4
Goodwill
2,034.6
2,034.6
Other intangible assets, net of accumulated amortization of $730.4
and $731.8, respectively
466.2
417.1
Other assets
1,201.8
737.7
Assets held for sale (a)
814.9
1,452.9
Total assets $
8,901.3
$
8,823.5
Liabilities and stockholders' equity Liabilities: Accounts
payable and accrued liabilities $
435.7
$
450.2
Settlement obligations
3,095.7
2,843.5
Income taxes payable
849.8
870.7
Deferred tax liability, net
161.6
203.8
Borrowings
2,611.0
3,008.4
Other liabilities
668.7
269.4
Liabilities associated with assets held for sale (a)
550.5
821.9
Total liabilities
8,373.0
8,467.9
Stockholders' equity: Preferred stock, $1.00 par value; 10
shares authorized; no shares issued
—
—
Common stock, $0.01 par value; 2,000 shares authorized; 385.9
shares and 393.8 shares issued and outstanding as of September 30,
2022 and December 31, 2021, respectively
3.9
3.9
Capital surplus
983.0
941.0
Accumulated deficit
(337.4)
(537.2)
Accumulated other comprehensive loss
(121.2)
(52.1)
Total stockholders' equity
528.3
355.6
Total liabilities and stockholders' equity $
8,901.3
$
8,823.5
(a) Includes balances associated with the Company’s Business
Solutions business, which were held for sale as of September 30,
2022 and December 31, 2021. On March 1, 2022, the Company completed
the first close of the Business Solutions business, which excluded
the operations of the European Union and the United Kingdom, and
received the entire cash consideration.
THE WESTERN UNION
COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited) (in millions)
Nine Months Ended
September 30,
2022
2021
Cash flows from operating activities Net income $
661.2
$
637.0
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation
31.8
38.4
Amortization
105.7
121.9
Gain on divestiture of business, excluding transaction costs
(155.8)
—
Gain on the sale of noncontrolling interest in a private company
—
(47.9)
Other non-cash items, net
54.0
124.2
Increase/(decrease) in cash, excluding the effects of divestitures,
resulting from changes in: Other assets
(166.4)
(78.3)
Accounts payable and accrued liabilities
50.6
(27.9)
Income taxes payable
(29.6)
(61.7)
Other liabilities
(29.1)
(19.7)
Net cash provided by operating activities
522.4
686.0
Cash flows from investing activities Payments for
capitalized contract costs
(58.4)
(94.7)
Payments for internal use software
(68.0)
(59.1)
Purchases of property and equipment
(21.1)
(26.4)
Purchases of settlement investments
(663.3)
(336.4)
Proceeds from the sale of settlement investments
544.1
689.9
Maturities of settlement investments
131.9
172.0
Proceeds from the sale of noncontrolling interest in a private
company
—
50.9
Purchase of noncontrolling interest in stc Bank
—
(200.0)
Purchases of non-settlement investments
(400.0)
—
Proceeds from divestiture, net of cash divested
896.4
—
Other investing activities
5.1
(3.6)
Net cash provided by investing activities
366.7
192.6
Cash flows from financing activities Cash dividends and
dividend equivalents paid
(275.5)
(288.7)
Common stock repurchased
(193.1)
(235.8)
Net proceeds from/(repayments of) commercial paper
(100.0)
40.0
Net proceeds from issuance of borrowings
—
891.7
Principal payments on borrowings
(300.0)
(1,150.0)
Make-whole premium on early extinguishment of debt
—
(14.3)
Proceeds from exercise of options
9.5
11.6
Net change in settlement obligations
(31.0)
(138.3)
Other financing activities
(0.2)
—
Net cash used in financing activities
(890.3)
(883.8)
Net change in cash and cash equivalents, including settlement, and
restricted cash
(1.2)
(5.2)
Cash and cash equivalents, including settlement, and restricted
cash at beginning of period
2,110.9
2,143.1
Cash and cash equivalents, including settlement, and restricted
cash at end of period $
2,109.7
$
2,137.9
September 30,
2022
2021
Reconciliation of balance sheet cash and cash equivalents to
cash flows: Cash and cash equivalents on balance sheet $
1,176.1
$
1,003.4
Settlement cash and cash equivalents
817.2
1,082.9
Restricted cash in Other assets
52.4
8.6
Cash and cash equivalents included in Assets held for sale
64.0
43.0
Cash and cash equivalents, including settlement, and restricted
cash $
2,109.7
$
2,137.9
THE WESTERN UNION COMPANY SUMMARY SEGMENT DATA
(Unaudited) (in millions, unless indicated otherwise)
Three Months Ended
Nine Months Ended
September 30,
September 30,
2022
2021
% Change
2022
2021
% Change
Revenues: Consumer-to-Consumer $
982.4
$
1,104.5
(11)%
$
3,008.3
$
3,282.5
(8)%
Business Solutions (a)
42.6
116.8
(63)%
167.4
312.6
(46)%
Other (b)
64.6
65.0
0%
207.9
190.9
9%
Total consolidated revenues $
1,089.6
$
1,286.3
(15)%
$
3,383.6
$
3,786.0
(11)%
Segment operating income: Consumer-to-Consumer $
193.7
$
268.2
(28)%
$
626.5
$
708.1
(12)%
Business Solutions (a)
15.9
38.4
(59)%
51.7
61.9
(17)%
Other (b)
21.6
12.0
82%
73.4
36.3
(c) Total segment operating income
231.2
318.6
(27)%
751.6
806.3
(7)%
Russia/Belarus exit costs (d)
0.6
—
(c)
(10.6)
—
(c) Business Solutions exit costs (d)
—
—
(c)
(7.7)
—
(c) Total consolidated operating income $
231.8
$
318.6
(27)%
$
733.3
$
806.3
(9)%
Segment operating income margin Consumer-to-Consumer
19.7%
24.3%
(4.6)%
20.8%
21.6%
(0.8)%
Business Solutions (a)
37.0%
32.9%
4.1%
30.9%
19.8%
11.1%
Other (b)
33.4%
18.3%
15.1%
35.3%
19.0%
16.3%
(a) On August 4, 2021, the Company entered into an agreement to
sell its Business Solutions business to the Buyer. The sale will be
completed in three closings, the first of which occurred on March
1, 2022. The second is expected to occur in December 2022, with the
third expected in the first quarter of 2023. The operations of the
Business Solutions business to be sold in the second and third
closings continue to be included in Revenues and Operating income
after the first closing. During the period between the first and
third closings, the Company will pay to the Buyer a measure of
profit of the European Union and United Kingdom operations, while
owned by the Company, adjusted for the occupancy charges for
employees of the Buyer using Company facilities and other items, as
contractually agreed, and this expense is recognized in Other
income/(expense), net in the Condensed Consolidated Statements of
Income. The related income tax expense on this income is also
passed to the Buyer. (b) Other primarily includes the Company’s
bill payment services which facilitate payments from consumers to
businesses and other organizations and the Company’s money order
services. (c) Calculation not meaningful. (d) Represents the exit
costs incurred in connection with the suspension of operations in
Russia and Belarus and the divestiture of the Business Solutions
business.
THE WESTERN UNION COMPANY NOTES TO KEY
STATISTICS (Unaudited) (in millions, unless indicated
otherwise) Western Union’s management believes the non-GAAP
financial measures presented provide meaningful supplemental
information regarding the Company’s operating results to assist
management, investors, analysts, and others in understanding the
Company’s financial results and to better analyze trends in the
Company’s underlying business because they provide consistency and
comparability to prior periods. A non-GAAP financial measure should
not be considered in isolation or as a substitute for the most
comparable GAAP financial measure. A non-GAAP financial measure
reflects an additional way of viewing aspects of the Company’s
operations that, when viewed with the Company’s GAAP results and
the reconciliation to the corresponding GAAP financial measure,
provides a more complete understanding of the Company’s business.
Users of the financial statements are encouraged to review the
Company’s financial statements and publicly-filed reports in their
entirety and not to rely on any single financial measure. A
reconciliation of non-GAAP financial measures to the most directly
comparable GAAP financial measures is included below, where not
previously reconciled above.
Notes
3Q21
4Q21
FY2021
1Q22
2Q22
3Q22
YTD 3Q22
Consolidated Metrics (a) Revenues (GAAP) $
1,286.3
$
1,284.8
$
5,070.8
$
1,155.7
$
1,138.3
$
1,089.6
$
3,383.6
Foreign currency translation impact (k)
(2.8)
14.8
(18.3)
33.2
42.1
60.8
136.1
Adjusted revenues (non-GAAP)
1,283.5
1,299.6
5,052.5
1,188.9
1,180.4
1,150.4
3,519.7
Less Business Solutions revenues, constant currency (non-GAAP) (j),
(r)
(113.7)
(109.2)
(405.9)
(91.9)
(40.1)
(50.4)
(182.4)
Adjusted revenues, excluding Business Solutions (non-GAAP) $
1,169.8
$
1,190.4
$
4,646.6
$
1,097.0
$
1,140.3
$
1,100.0
$
3,337.3
Prior year revenues (GAAP) $
1,258.5
$
1,271.8
$
4,835.0
$
1,210.0
$
1,289.7
$
1,286.3
$
3,786.0
Less prior year revenues from Business Solutions (GAAP) (r)
(89.1)
(89.2)
(356.1)
(96.5)
(99.3)
(116.8)
(312.6)
Adjusted prior year revenues, excluding Business Solutions $
1,169.4
$
1,182.6
$
4,478.9
$
1,113.5
$
1,190.4
$
1,169.5
$
3,473.4
Revenues (GAAP) - YoY % Change
2%
1%
5%
(4)%
(12)%
(15)%
(11)%
Adjusted revenues (non-GAAP) - YoY% Change
2%
2%
4%
(2)%
(8)%
(11)%
(7)%
Adjusted revenues, excluding Business Solutions (non-GAAP) - YoY %
Change
0%
1%
4%
(1)%
(4)%
(6)%
(4)%
(b) Operating income (GAAP) $
318.6
$
316.8
$
1,123.1
$
237.5
$
264.0
$
231.8
$
733.3
Acquisition and divestiture costs (m)
5.5
3.7
15.7
3.3
0.9
0.4
4.6
Russia/Belarus exit costs (s)
N/A
N/A
N/A
11.0
0.2
(0.6)
10.6
Business Solutions exit costs (s)
N/A
N/A
N/A
7.7
—
—
7.7
Adjusted operating income (non-GAAP) $
324.1
$
320.5
$
1,138.8
$
259.5
$
265.1
$
231.6
$
756.2
Less Business Solutions operating income(1) (r)
N/A
N/A
N/A
(26.5)
(7.9)
(15.6)
(50.0)
Adjusted operating income, excluding Business Solutions operating
income (non-GAAP) $
324.1
$
320.5
$
1,138.8
$
233.0
$
257.2
$
216.0
$
706.2
Operating margin (GAAP)
24.8%
24.7%
22.1%
20.5%
23.2%
21.3%
21.7%
Adjusted operating margin (non-GAAP)
25.2%
24.9%
22.5%
22.5%
23.3%
21.2%
22.3%
Adjusted operating margin, excluding Business Solutions operating
income (non-GAAP)(1)
N/A
N/A
N/A
21.8%
23.3%
20.6%
22.0%
(c) Operating income (GAAP) $
318.6
$
316.8
$
1,123.1
$
237.5
$
264.0
$
231.8
$
733.3
Depreciation and amortization
51.3
47.9
208.2
46.8
45.9
44.7
137.4
EBITDA (non-GAAP) (l) $
369.9
$
364.7
$
1,331.3
$
284.3
$
309.9
$
276.5
$
870.7
Operating margin (GAAP)
24.8%
24.7%
22.1%
20.5%
23.2%
21.3%
21.7%
EBITDA margin (non-GAAP)
28.8%
28.4%
26.3%
24.6%
27.2%
25.4%
25.7%
(d) Net income (GAAP) $
232.7
$
168.8
$
805.8
$
293.3
$
194.0
$
173.9
$
661.2
Acquisition and divestiture costs (m)
5.5
3.7
15.7
3.3
0.9
0.4
4.6
Gain on investment sale (n)
—
—
(47.9)
N/A
N/A
N/A
N/A
Debt extinguishment costs (o)
—
—
14.8
N/A
N/A
N/A
N/A
Pension settlement charge (p)
N/A
109.8
109.8
N/A
N/A
N/A
N/A
Business Solutions gain (r)
N/A
N/A
N/A
(151.4)
—
—
(151.4)
Business Solutions exit costs (s)
N/A
N/A
N/A
7.7
—
—
7.7
Russia/Belarus exit costs (s)
N/A
N/A
N/A
11.0
0.2
(0.6)
10.6
Income tax expense from change in permanent reinvestment assertion
related to the sale of Business Solutions (q)
18.1
(0.2)
17.9
N/A
N/A
N/A
N/A
Income tax benefit from reversal of uncertain tax positions (t)
N/A
N/A
N/A
N/A
N/A
(13.2)
(13.2)
Income tax benefit/(expense) from other adjustments (m), (n), (o),
(p), (r), (s)
—
(23.3)
(19.0)
38.7
2.0
3.0
43.7
Adjusted net income (non-GAAP) $
256.3
$
258.8
$
897.1
$
202.6
$
197.1
$
163.5
$
563.2
(e) Effective tax rate (GAAP)
20%
7%
14%
19%
18%
10%
17%
Change in permanent reinvestment assertion related to the sale of
Business Solutions (q)
(6)%
0%
(2)%
N/A
N/A
N/A
N/A
Reversal of uncertain tax positions (t)
N/A
N/A
N/A
N/A
N/A
7%
2%
Other adjustments (m), (n), (o), (p), (r), (s)
0%
5%
1%
(6)%
(1)%
(2)%
(4)%
Adjusted effective tax rate (non-GAAP)
14%
12%
13%
13%
17%
15%
15%
(f) Diluted earnings per share (GAAP) ($- dollars) $
0.57
$
0.42
$
1.97
$
0.74
$
0.50
$
0.45
$
1.70
Pretax impacts from the following: Acquisition and divestiture
costs (m)
0.01
0.01
0.03
0.01
—
—
—
Gain on investment sale (n)
—
—
(0.12)
N/A
N/A
N/A
N/A
Debt extinguishment costs (o)
—
—
0.04
N/A
N/A
N/A
N/A
Pension settlement charge (p)
N/A
0.27
0.27
N/A
N/A
N/A
N/A
Business Solutions gain (r)
N/A
N/A
N/A
(0.38)
—
—
(0.39)
Business Solutions exit costs (s)
N/A
N/A
N/A
0.02
—
—
0.02
Russia/Belarus exit costs (s)
N/A
N/A
N/A
0.02
—
—
0.03
Income tax expense/(benefit) impacts from the following: Change in
permanent reinvestment assertion related to the sale of Business
Solutions (q)
0.05
—
0.04
N/A
N/A
N/A
N/A
Reversal of uncertain tax positions (t)
N/A
N/A
N/A
N/A
N/A
(0.03)
(0.03)
Other adjustments (m), (n), (o), (p), (r), (s)
—
(0.06)
(0.04)
0.10
0.01
—
0.11
Adjusted diluted earnings per share (non-GAAP) ($- dollars) $
0.63
$
0.64
$
2.19
$
0.51
$
0.51
$
0.42
$
1.44
C2C Segment Metrics (g) Revenues (GAAP) $
1,104.5
$
1,111.5
$
4,394.0
$
999.0
$
1,026.9
$
982.4
$
3,008.3
Foreign currency translation impact (k)
(9.4)
6.2
(46.4)
20.8
28.1
37.1
86.0
Revenues, constant currency (non-GAAP) $
1,095.1
$
1,117.7
$
4,347.6
$
1,019.8
$
1,055.0
$
1,019.5
$
3,094.3
Prior year revenues (GAAP) $
1,106.5
$
1,121.5
$
4,220.0
$
1,050.9
$
1,127.1
$
1,104.5
$
3,282.5
Revenues (GAAP) - YoY % change
0%
(1)%
4%
(5)%
(9)%
(11)%
(8)%
Adjusted revenues (non-GAAP) - YoY % change
(1)%
0%
3%
(3)%
(6)%
(8)%
(6)%
(h) Principal per transaction, as reported ($- dollars) $
361
$
354
$
356
$
356
$
359
$
360
$
358
Foreign currency translation impact (k)
(1)
2
(4)
8
13
17
13
Principal per transaction, constant currency ($- dollars) $
360
$
356
$
352
$
364
$
372
$
377
$
371
Prior year principal per transaction, as reported ($- dollars) $
348
$
341
$
331
$
354
$
357
$
361
$
357
Principal per transaction, as reported - YoY % change
4%
4%
8%
1%
0%
0%
0%
Principal per transaction, constant currency - YoY % change
3%
4%
6%
3%
4%
4%
4%
(i) Cross-border principal, as reported ($- billions) $
26.5
$
26.5
$
104.1
$
23.8
$
23.4
$
23.0
$
70.2
Foreign currency translation impact (k)
(0.2)
0.2
(1.2)
0.5
0.9
1.1
2.5
Cross-border principal, constant currency ($- billions) $
26.3
$
26.7
$
102.9
$
24.3
$
24.3
$
24.1
$
72.7
Prior year cross-border principal, as reported ($- billions) $
25.5
$
25.3
$
90.6
$
24.5
$
26.6
$
26.5
$
77.6
Cross-border principal, as reported - YoY % change
4%
5%
15%
(3)%
(12)%
(13)%
(10)%
Cross-border principal, constant currency - YoY % change
3%
5%
14%
(1)%
(9)%
(9)%
(6)%
Business Solutions Segment Metrics (j) Revenues
(GAAP)
$
116.8
$
109.2
$
421.8
$
89.1
$
35.7
$
42.6
$
167.4
Foreign currency translation impact (k)
(3.1)
0.0
(15.9)
2.8
4.4
7.8
15.0
Revenues, constant currency (non-GAAP)
$
113.7
$
109.2
$
405.9
$
91.9
$
40.1
$
50.4
$
182.4
Prior year revenues (GAAP)
$
89.1
$
89.2
$
356.1
$
96.5
$
99.3
$
116.8
$
312.6
Revenues (GAAP) - YoY % change
31%
22%
18%
(8)%
(64)%
(63)%
(46)%
Adjusted revenues (non-GAAP) - YoY % change
28%
22%
14%
(5)%
(60)%
(57)%
(42)%
(1) Concurrent with the sale in the first quarter of 2022,
the Business Solutions operating income has been excluded. See
tickmark (r) below for more information.
2022 Consolidated
Outlook Metrics Notes Range Operating margin
(GAAP)
20.0%
21.0%
Impact from acquisition and divestiture costs (m)
0.0%
0.0%
Impact from the sale of Business Solutions, including exit costs
(r), (s)
(0.5)%
(0.5)%
Impact from Russia/Belarus exit costs (s)
0.5%
0.5%
Adjusted operating margin, excluding Business Solutions operating
income (non-GAAP)
20.0%
21.0%
Range Earnings per share (GAAP) ($- dollars) $
2.18
$
2.28
Impact from acquisition and divestiture costs, net of related taxes
(m)
0.01
0.01
Gain on the sale of Business Solutions, net of related taxes (r)
(0.45)
(0.45)
Impact from Business Solutions exit costs, net of related taxes (s)
0.02
0.02
Impact from Russia/Belarus exit costs, net of related taxes (s)
0.02
0.02
Reversal of uncertain tax positions (t)
(0.03)
(0.03)
Adjusted earnings per share (non-GAAP) ($- dollars) $
1.75
$
1.85
Non-GAAP related notes: (k)
Represents the impact from the fluctuation in exchange rates
between all foreign currency denominated amounts and the United
States dollar. Constant currency results exclude any benefit or
loss caused by foreign exchange fluctuations between foreign
currencies and the United States dollar, net of foreign currency
hedges, which would not have occurred if there had been a constant
exchange rate. The Company believes that this measure provides
management and investors with information about revenue results and
trends that eliminates currency volatility while increasing the
comparability of the Company's underlying results and trends. (l)
Earnings before Interest, Taxes, Depreciation, and Amortization
(“EBITDA”) results from taking operating income and adjusting for
depreciation and amortization expenses. EBITDA results provide an
additional performance measurement calculation which helps
neutralize the operating income effect of assets acquired in prior
periods. (m) Represents the impact from expenses incurred in
connection with the Company's acquisition and divestiture activity,
including for the review and closing of these transactions. The
Company believes that, by excluding the effects of these charges
that can impact operating trends, management and investors are
provided with a measure that increases the comparability of the
Company's underlying operating results. (n) On April 12, 2021, the
Company sold a substantial majority of the noncontrolling interest
it held in a private company for cash proceeds of $50.9 million. As
a result, the Company recorded a pre-tax gain in the second quarter
of 2021. The gain on the sale and the income taxes on the gain have
been removed from adjusted results. The Company believes excluding
the impact of this gain will provide investors with a more
meaningful comparison of results with the historical periods
presented. (o) On April 1, 2021, the Company repaid $500 million of
aggregate principal amount of 3.6% unsecured notes due in 2022 and
incurred approximately $14.8 million of costs, excluding accrued
interest, in connection with the repayment. The cost associated
with the repayment was recorded to Other income/(expense), net, in
the second quarter of 2021. The costs associated with the payment
and related tax benefit have been removed from adjusted results.
The Company believes excluding the impact of this charge will
provide investors with a more meaningful comparison of results with
the historical periods presented. (p) Represents the settlement
charges for the Company's defined benefit pension plan incurred in
the fourth quarter of 2021. On July 22, 2021, the Company's Board
of Directors approved a plan to terminate and settle this frozen
defined benefit plan, and during the fourth quarter of 2021, the
Company settled its obligations under the plan and transferred the
corresponding amount of plan assets to the insurer. The expenses
associated with the pension settlement were recorded to Pension
settlement charges within Total other income/(expense), net. The
Company believes excluding the impact of this charge will provide
investors with a more meaningful comparison of results with the
historical periods presented. (q) Represents the tax impact from
changes to certain of the Company's permanent reinvestment
assertions related to its decision to classify its Business
Solutions business as held for sale in 2021. The Company believes
excluding the impact of this charge will provide investors with a
more meaningful comparison of results with the historical periods
presented. (r) During 2021, the Company entered into an agreement
to sell its Business Solutions business to Goldfinch Partners LLC
and The Baupost Group LLC (collectively, the "Buyer") and received
cash consideration of $896.4 million, net of cash divested, subject
to the remaining closes and regulatory capital adjustments. The
sale will be completed in three closings, the first of which
occurred on March 1, 2022 with the entirety of the cash
consideration collected at that time and allocated to the closings
on a relative fair value basis. The first closing excluded the
operations in the European Union and the United Kingdom and
resulted in a gain of $151.4 million. The second closing, which
includes the United Kingdom operations, is expected to occur in
December 2022, pending required regulatory approvals. The third
closing, which includes the European Union operations, is currently
expected in the first quarter of 2023, pending regulatory
approvals. Revenues have been adjusted to exclude the carved out
financial information for the Business Solutions business to
compare the year-over-year changes and trends in the Company's
continuing businesses, excluding the effects of this divestiture.
While the sale of the Company's Business Solutions business does
not qualify for or represent discontinued operations, the Company
has also adjusted operating income, beginning in the first quarter
of 2022 and concurrent with the sale, to exclude the carved out
direct profit of the Business Solutions business. During the period
between the first and third closings, the Company will continue to
record revenues and operating income for the European Union and
United Kingdom operations, but it will pay the Buyer a measure of
the profits from these operations, adjusted for other charges, as
contractually agreed, and this expense is recognized in Other
income/(expense), net. Therefore, the Company believes that
providing this information enhances investors' understanding of the
profitability of the Company's remaining businesses. The Company
has also excluded the gain on the sale, net of related taxes from
its first quarter 2022 results and the 2022 adjusted outlook, as
management believes that excluding the impact from the gain on sale
of the Business Solutions business will provide investors with a
clearer and more meaningful comparison of results in 2022 and
future periods. These financial measures are non-GAAP measures and
should not be considered a substitute for the GAAP measures. (s)
Represents the exit costs incurred in connection with the
divestiture of the Business Solutions business and the suspension
of operations in Russia and Belarus, primarily related to severance
and non-cash impairments of property and equipment, an operating
lease right-of-use asset, and other intangible assets. While
certain of the expenses are identifiable to the Company's segments,
the expenses are not included in the measurement of segment
operating income provided to the Chief Operating Decision Maker for
purposes of performance assessment and resource allocation. These
expenses are therefore excluded from the Company's segment
operating income results. These expenses have been excluded from
operating income, the effective tax rate, and diluted earnings per
share, net of related taxes. Additionally, the outlook metrics have
been adjusted to exclude these costs, net of related taxes where
applicable. The Company believes that, by excluding the effects of
these charges that can impact operating trends, management and
investors are provided with a measure that increases the
comparability of the Company's underlying operating results. (t)
Represents non-cash reversals of significant uncertain tax
positions. The Company believes excluding these reversals provides
a more meaningful comparison of results to the historical periods
presented.
Other notes: (aa)
Geographic split for transactions and revenue, including
transactions initiated digitally, as earlier defined, is determined
entirely based upon the region where the money transfer is
initiated. (bb) Represents the North America (United States and
Canada) (“NA”) region of the Company's Consumer-to-Consumer
segment. (cc) Represents the Europe and the Russia/Commonwealth of
Independent States (“EU & CIS”) region of the Company's
Consumer-to-Consumer segment. (dd) Represents the Middle East,
Africa, and South Asia (“MEASA”) region of the Company's
Consumer-to-Consumer segment, including India and certain South
Asian countries, which consist of Bangladesh, Bhutan, Maldives,
Nepal, and Sri Lanka. (ee) Represents the Latin America and the
Caribbean (“LACA”) region of the Company’s Consumer-to-Consumer
segment, including Mexico. (ff) Represents the East Asia and
Oceania (“APAC”) region of the Company’s Consumer-to-Consumer
segment. (gg) Represents transactions conducted and funded through
websites and mobile applications marketed under the Company’s
brands (“Branded Digital”). (hh) Represents revenue from
transactions conducted and funded through westernunion.com and
transactions initiated on websites and mobile applications hosted
by the Company's third-party white label or co-branded digital
partners.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20221031005833/en/
Media Relations: Claire Treacy media@westernunion.com
Investor Relations: Tom Hadley
WesternUnion.IR@westernunion.com
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