• Resources
  • Blog
  • Journalists
  • Log In
  • Sign Up
  • Data Privacy
  • Send a Release
Cision PR Newswire: news distribution, targeting and monitoring
  • News
  • Products
    • Overview
    • Distribution by PR Newswire
    • Cision Communications Cloud®
    • Cision IR
    • All Products
  • Contact
    • General Inquiries
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices

Searching for your content...

No results found. Please change your search terms and try again.
  • News in Focus
      • Browse News Releases
      • All News Releases
      • All Public Company
      • English-only


      • News Releases Overview
      • Multimedia Gallery
      • All Multimedia
      • All Photos
      • All Videos


      • Multimedia Gallery Overview
      • Trending Topics
      • All Trending Topics


  • Business & Money
      • Auto & Transportation
      • All Automotive & Transportation
      • Aerospace, Defense
      • Air Freight
      • Airlines & Aviation
      • Automotive
      • Maritime & Shipbuilding
      • Railroads and Intermodal Transportation
      • Supply Chain/Logistics
      • Transportation, Trucking & Railroad
      • Travel
      • Trucking and Road Transportation


      • Auto & Transportation Overview
      • Business Technology
      • All Business Technology
      • Blockchain
      • Broadcast Tech
      • Computer & Electronics
      • Computer Hardware
      • Computer Software
      • Data Analytics
      • Electronic Commerce
      • Electronic Components
      • Electronic Design Automation
      • Financial Technology
      • High Tech Security
      • Internet Technology
      • Nanotechnology
      • Networks
      • Peripherals
      • Semiconductors


      • Business Technology Overview
      • Entertain­ment & Media
      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television


      • Entertain­ment & Media Overview
      • Financial Services & Investing
      • All Financial Services & Investing
      • Accounting News & Issues
      • Acquisitions, Mergers and Takeovers
      • Banking & Financial Services
      • Bankruptcy
      • Bond & Stock Ratings
      • Conference Call Announcements
      • Contracts
      • Cryptocurrency
      • Dividends
      • Earnings
      • Earnings Forecasts & Projections
      • Financing Agreements
      • Insurance
      • Investments Opinions
      • Joint Ventures
      • Mutual Funds
      • Private Placement
      • Real Estate
      • Restructuring & Recapitalization
      • Sales Reports
      • Shareholder Activism
      • Stock Offering
      • Stock Split
      • Venture Capital


      • Financial Services & Investing Overview
      • General Business
      • All General Business
      • Awards
      • Commercial Real Estate
      • Corporate Expansion
      • Earnings
      • Human Resource & Workforce Management
      • Licensing
      • New Products & Services
      • Obituaries
      • Outsourcing Businesses
      • Overseas Real Estate (non-US)
      • Personnel Announcements
      • Real Estate Transactions
      • Residential Real Estate
      • Small Business Services
      • Socially Responsible Investing
      • Surveys, Polls and Research
      • Trade Show News


      • General Business Overview
  • Science & Tech
      • Consumer Technology
      • All Consumer Technology
      • Artificial Intelligence
      • Blockchain
      • Cloud Computing/Internet of Things
      • Computer Electronics
      • Computer Hardware
      • Computer Software
      • Consumer Electronics
      • Cryptocurrency
      • Data Analytics
      • Electronic Commerce
      • Electronic Gaming
      • Financial Technology
      • Mobile Entertainment
      • Multimedia & Internet
      • Peripherals
      • Social Media
      • STEM (Science, Tech, Engineering, Math)
      • Supply Chain/Logistics
      • Wireless Communications


      • Consumer Technology Overview
      • Energy & Natural Resources
      • All Energy
      • Alternative Energies
      • Chemical
      • Electrical Utilities
      • Gas
      • General Manufacturing
      • Mining
      • Mining & Metals
      • Oil & Energy
      • Oil and Gas Discoveries
      • Utilities
      • Water Utilities


      • Energy & Natural Resources Overview
      • Environ­ment
      • All Environ­ment
      • Conservation & Recycling
      • Environmental Issues
      • Environmental Policy
      • Environmental Products & Services
      • Green Technology
      • Natural Disasters


      • Environ­ment Overview
      • Heavy Industry & Manufacturing
      • All Heavy Industry & Manufacturing
      • Aerospace & Defense
      • Agriculture
      • Chemical
      • Construction & Building
      • General Manufacturing
      • HVAC (Heating, Ventilation and Air-Conditioning)
      • Machinery
      • Machine Tools, Metalworking and Metallurgy
      • Mining
      • Mining & Metals
      • Paper, Forest Products & Containers
      • Precious Metals
      • Textiles
      • Tobacco


      • Heavy Industry & Manufacturing Overview
      • Telecomm­unications
      • All Telecomm­unications
      • Carriers and Services
      • Mobile Entertainment
      • Networks
      • Peripherals
      • Telecommunications Equipment
      • Telecommunications Industry
      • VoIP (Voice over Internet Protocol)
      • Wireless Communications


      • Telecomm­unications Overview
  • Lifestyle & Health
      • Consumer Products & Retail
      • All Consumer Products & Retail
      • Animals & Pets
      • Beers, Wines and Spirits
      • Beverages
      • Bridal Services
      • Cannabis
      • Cosmetics and Personal Care
      • Fashion
      • Food & Beverages
      • Furniture and Furnishings
      • Home Improvement
      • Household, Consumer & Cosmetics
      • Household Products
      • Jewelry
      • Non-Alcoholic Beverages
      • Office Products
      • Organic Food
      • Product Recalls
      • Restaurants
      • Retail
      • Supermarkets
      • Toys


      • Consumer Products & Retail Overview
      • Entertain­ment & Media
      • All Entertain­ment & Media
      • Advertising
      • Art
      • Books
      • Entertainment
      • Film and Motion Picture
      • Magazines
      • Music
      • Publishing & Information Services
      • Radio & Podcast
      • Television


      • Entertain­ment & Media Overview
      • Health
      • All Health
      • Biometrics
      • Biotechnology
      • Clinical Trials & Medical Discoveries
      • Dentistry
      • FDA Approval
      • Fitness/Wellness
      • Health Care & Hospitals
      • Health Insurance
      • Infection Control
      • International Medical Approval
      • Medical Equipment
      • Medical Pharmaceuticals
      • Mental Health
      • Pharmaceuticals
      • Supplementary Medicine


      • Health Overview
      • Sports
      • All Sports
      • General Sports
      • Outdoors, Camping & Hiking
      • Sporting Events
      • Sports Equipment & Accessories


      • Sports Overview
      • Travel
      • All Travel
      • Amusement Parks and Tourist Attractions
      • Gambling & Casinos
      • Hotels and Resorts
      • Leisure & Tourism
      • Outdoors, Camping & Hiking
      • Passenger Aviation
      • Travel Industry


      • Travel Overview
  • Policy & Public Interest
      • Policy & Public Interest
      • All Policy & Public Interest
      • Advocacy Group Opinion
      • Animal Welfare
      • Congressional & Presidential Campaigns
      • Corporate Social Responsibility
      • Domestic Policy
      • Economic News, Trends, Analysis
      • Education
      • Environmental
      • European Government
      • FDA Approval
      • Federal and State Legislation
      • Federal Executive Branch & Agency
      • Foreign Policy & International Affairs
      • Homeland Security
      • Labor & Union
      • Legal Issues
      • Natural Disasters
      • Not For Profit
      • Patent Law
      • Public Safety
      • Trade Policy
      • U.S. State Policy


      • Policy & Public Interest Overview
  • People & Culture
      • People & Culture
      • All People & Culture
      • Aboriginal, First Nations & Native American
      • African American
      • Asian American
      • Children
      • Hispanic
      • Lesbian, Gay & Bisexual
      • Men's Interest
      • People with Disabilities
      • Religion
      • Senior Citizens
      • Veterans
      • Women


      • People & Culture Overview
      • In-Language News

      • español
      • português
      • Česko
      • Danmark
      • Deutschland
      • España
      • France
      • Italia
      • Nederland
      • Norge
      • Polska
      • Portugal
      • Россия
      • Slovensko
      • Suomi
      • Sverige
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • PR Newswire: news distribution, targeting and monitoring
  • Send a Release
    • ALL CONTACT INFO

      Contact Us

      888-776-0942
      from 8 AM - 10 PM ET

  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • News in Focus
    • Browse All News
    • Multimedia Gallery
    • Trending Topics
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Business & Money
    • Auto & Transportation
    • Business Technology
    • Entertain­ment & Media
    • Financial Services & Investing
    • General Business
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Science & Tech
    • Consumer Technology
    • Energy & Natural Resources
    • Environ­ment
    • Heavy Industry & Manufacturing
    • Telecomm­unications
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Lifestyle & Health
    • Consumer Products & Retail
    • Entertain­ment & Media
    • Health
    • Sports
    • Travel
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Policy & Public Interest
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • People & Culture
    • People & Culture
    • Send a Release
    • Sign Up
    • Log In
    • Resources
    • Blog
    • Journalists
    • RSS
    • GDPR
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • Overview
  • Distribution by PR Newswire
  • Cision Communications Cloud®
  • Cision IR
  • All Products
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR
  • General Inquiries
  • Request a Demo
  • Editorial Bureaus
  • Partnerships
  • Media Inquiries
  • Worldwide Offices
  • Send a Release
  • Sign Up
  • Log In
  • Resources
  • Blog
  • Journalists
  • RSS
  • GDPR

MoneyGram International Reports First Quarter 2020 Results

Digital Transaction Growth Accelerated to 57%

MoneyGram Logo (PRNewsfoto/MoneyGram)

News provided by

MoneyGram

May 01, 2020, 07:00 ET

Share this article


DALLAS, May 1, 2020 /PRNewswire/ -- MoneyGram International, Inc. (NASDAQ: MGI) today reported financial results for its first quarter ending March 31, 2020.

"I'd first like to offer my heartfelt appreciation to our employees and partners whose tireless efforts, combined with our leading digital capabilities, allowed us to provide uninterrupted service to our customers during these unprecedented times," said MoneyGram Chairman and CEO Alex Holmes. "We were encouraged by the strong start to the quarter with transaction growth in all channels accelerating from the fourth quarter. The pandemic caused sudden and significant global disruption and MoneyGram certainly was not immune. At the onset of COVID-19, our Walk-In Channel experienced a significant downturn, while in contrast, our Digital Channel continued its positive momentum as consumers increasingly value the ease and convenience of our leading offerings."

First Quarter 2020 Highlights, Year Over Year 

  • Achieved positive global money transfer transaction growth for the quarter, with walk-in growth rates negatively impacted post-COVID-19
   

All Channels

 

Digital Channel

 

Walk-In Channel

Pre-COVID-19, Jan. 1 - Mar. 15*

 

6%

 

56%

 

(1)%

Post-COVID-19, Mar. 16 - Mar. 31*

 

(18)%

 

58%

 

(29)%

Total first quarter 2020

 

2%

 

57%

 

(6)%

             

* The Pre- and Post-COVID-19 growth rates are approximate and are presented for illustrative purposes only.  Total first quarter 2020 rates are as-reported.

  • Reported 57% Digital transaction growth for the quarter, marking a continued acceleration from the fourth quarter 2019. Performance was driven by market expansion, high customer retention rates, and strong demand for the MoneyGram app
    • As the crisis unfolded, MoneyGram quickly shifted its marketing and operational focus to its online and digital capabilities to ensure customers were able to continue to seamlessly send and receive money from the safety of their own homes, in more than 70 countries
    • At quarter end, Digital transactions accounted for 18% of all money transfer transactions, and this percentage has grown significantly to 28% in the first 27 days of April
    • MoneyGram Online, comprising 73% of the Digital business, remained a key driver, with transaction growth of 60% for the quarter, and 66% in the post-COVID period, powered by:
      • Triple-digit growth in both the U.S. Outbound and International markets
      • App downloads increasing 46%
      • App transaction growth exceeding 200%
      • Improvements in customer retention rates of 23%, and monthly active customers of 40%
    • Transactions sent direct-to-account or wallet increased 80%, and in April these growth rates have improved further to more than triple digits
  • MoneyGram continued to expand its global network, launching services with a number of important partners in key regions:
    • In India, with Ebix to expand retail distribution coverage and Federal Bank to expand account deposit capabilities
    • In the growing Middle East market, with Etisalat, LuLu Financial Holdings, and Al Rajhi Bank to expand digital and physical presence

First Quarter 2020 Financial Results, Year Over Year

  • Total revenue was $290.9 million, a decline of 8% or 7% on a constant currency basis
    • Money transfer revenue was $255.9 million, down 6% or 5% on a constant currency basis
    • Investment revenue was $10.1 million for the quarter
  • Total operating expenses of $277.8 million improved $29.0 million or 9%, which included a $12.1 million benefit composed of Ripple market development fees of $16.6 million, partially offset by related transaction and trading expenses of $4.5 million
  • Net loss was $21.5 million, including $10.1 million of additional non-cash tax expense from an increased deferred tax asset valuation allowance
  • Diluted loss per share was $0.28, including $0.13 per share for the change in tax valuation allowance, and adjusted diluted loss per share was $0.05
  • Adjusted EBITDA increased 3%, or 4% on a constant currency basis, to $51.5 million and Adjusted EBITDA margin improved 180 basis points to 17.7%
  • Adjusted Free Cash Flow was $(3.3) million

"The COVID-19 crisis has been devastating to so many people and businesses and I am proud of how we have responded," Holmes said, noting immediate steps MoneyGram took to preserve value in response to the pandemic:

  • Implementing its global Business Continuity Plans
  • Establishing employee support initiatives including mandatory work from home arrangements
  • Reducing expenses and preserving cash
  • Conducting proactive outreach to governmental and regulatory bodies
  • Proactively managing fraud prevention program to protect consumers from coronavirus-related financial scams
  • Alerting and directing consumers to the website and app, and encouraging direct-to-account transfers

"While no one can predict the duration of the pandemic, MoneyGram is well positioned to play a key role in, and benefit from, the resurgence when the global economy unfreezes and people begin freely moving again."

Balance Sheet Highlights

Cash and cash equivalents on hand at quarter end were $131.0 million compared to $146.8 million at the end of 2019. As of March 31, 2020, the Company had $23.0 million drawn on its revolving credit facility with approximately $12.0 million undrawn. First quarter interest expense was $23.8 million and capital expenditures were $10.1 million.

Second Quarter 2020 Outlook Update

As a result of the uncertainty created by the COVID-19 pandemic, the Company is not providing a second quarter outlook.

Conference Call

MoneyGram International will host a conference call on May 1, at 9:00 a.m. ET, to discuss its results. Alex Holmes, Chairman and CEO, and Larry Angelilli, CFO, will host the call.

Participant Dial-In Numbers:

U.S.:

1-800-263-0877

International:

1-646-828-8143

Webcast:

public.viavid.com/index.php?id=139088

   

Replay:

U.S 1-844-512-2921 or International 1-412-317-6671

Replay ID:

8211570

Replay is available through May 8, 2020, 11:59 p.m. ET

About MoneyGram International, Inc.

MoneyGram is a global leader in cross-border P2P payments and money transfers. Its consumer-centric capabilities enable family and friends to quickly and affordably send money in more than 200 countries and territories, with over 70 countries now digitally enabled.

MoneyGram leverages its modern, mobile, and API-driven platform and collaborates with the world's leading brands to serve millions of people each year through both its walk-in business and its direct-to-consumer digital business.

With a strong culture of innovation and a relentless focus on utilizing technology to deliver the world's best customer experience, MoneyGram is leading the evolution of digital P2P payments.

For more information, please visit MoneyGram.com and follow @MoneyGram.

 

Forward-Looking Statements

This communication contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect MoneyGram's current beliefs, expectations or intentions regarding future events. Words such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursuant," "target," "continue," and similar expressions are intended to identify such forward-looking statements. The statements in this communication that are not historical statements are forward-looking statements within the meaning of the federal securities laws. Specific forward-looking statements include, among others, statements regarding the company's projected results of operations, specific factors expected to impact the company's results of operations, and the expected restructuring and reorganization program results. Forward-looking statements are subject to numerous risks and uncertainties, many of which are beyond MoneyGram's control, which could cause actual results to differ materially from the results expressed or implied by the statements.

These risks and uncertainties include, but are not limited to:

  • the impact of the COVID-19 outbreak or future epidemics on our business, including the potential for work stoppages, lockdowns, shelter-in-place, or restricted movement guidelines, service delays, lower consumer and commercial activity;
  • our ability to compete effectively;
  • our ability to maintain key agent or biller relationships, or a reduction in business or transaction volume from these relationships, including our largest agent, Walmart, whether through the introduction by Walmart of additional competing "white label" branded money transfer products or otherwise;
  • our ability to manage fraud risks from consumers or agents;
  • the ability of us and our agents to comply with U.S. and international laws and regulations;
  • litigation or investigations involving us or our agents;
  • uncertainties relating to compliance with the Amended DPA entered into with the U.S. federal government and the effect of the Amended DPA on our reputation and business and our ability to make payments required under the Amended DPA;
  • regulations addressing consumer privacy, data use and security;
  • our ability to successfully develop and timely introduce new and enhanced products and services and our investments in new products, services or infrastructure changes;
  • our ability to manage risks associated with our international sales and operations;
  • our offering of money transfer services through agents in regions that are politically volatile;
  • changes in tax laws or an unfavorable outcome with respect to the audit of our tax returns or tax positions, or a failure by us to establish adequate reserves for tax events;
  • our substantial debt service obligations, significant debt covenant requirements and credit ratings;
  • major bank failure or sustained financial market illiquidity, or illiquidity at our clearing, cash management and custodial financial institutions;
  • the ability of us and our agents to maintain adequate banking relationships;
  • a security or privacy breach in systems, networks or databases on which we rely and disruptions to our computer network systems and data centers;
  • weakness in economic conditions, in both the U.S. and global markets;
  • a significant change, material slow down or complete disruption of international migration patterns;
  • the financial health of certain European countries or the secession of a country from the European Union;
  • our ability to manage credit risks from our agents and official check financial institution consumers;
  • our ability to adequately protect our brand and intellectual property rights and to avoid infringing on the rights of others;
  • our ability to manage risks related to the operation of retail locations and the acquisition or start-up of businesses;
  • any restructuring actions and cost reduction initiatives that we undertake may not deliver the expected results and these actions may adversely affect our business;
  • our capital structure;
  • and uncertainties described in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of MoneyGram's public reports filed with the Securities and Exchange Commission (the "SEC"), including MoneyGram's annual report on Form 10-K for the year ended December 31, 2019.

Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in MoneyGram's SEC filings. MoneyGram's SEC filings may be obtained by contacting MoneyGram, through MoneyGram's web site at ir.moneygram.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System ("EDGAR") at http://www.sec.gov. MoneyGram undertakes no obligation to publicly update or revise any forward-looking statement.

Non-GAAP Measures

In addition to results presented in accordance with accounting principles generally accepted in the United States ("GAAP"), this news release and related tables include certain non-GAAP financial measures, including a presentation of EBITDA (earnings before interest, taxes, depreciation and amortization, including agent signing bonus amortization), Adjusted EBITDA (EBITDA adjusted for certain significant items), Adjusted EBITDA margin, Adjusted Free Cash Flow (Adjusted EBITDA less cash interest, cash taxes and cash payments for capital expenditures and agent signing bonuses), constant currency measures (which assume that amounts denominated in foreign currencies are translated to the U.S. dollar at rates consistent with those in the prior year), adjusted diluted earnings per share and adjusted net income. In addition, we present adjusted operating income and adjusted operating margin for our two reporting segments. The following tables include a full reconciliation of non-GAAP financial measures to the related GAAP financial measures. The equivalent GAAP financial measures for projected results are not provided, and projected results do not reflect the potential impact of certain non-GAAP adjustments, which include (but in future periods, may not be limited to) stock-based, contingent and incentive compensation costs, compliance enhancement program costs, direct monitor costs, legal and contingent matter costs, restructuring and reorganization costs, currency changes and the tax effect of such items. We cannot reliably predict or estimate if and when these types of costs, adjustments or changes may occur or their impact to our financial statements. Accordingly, a reconciliation of the non-GAAP financial measures to the equivalent GAAP financial measures for projected results is not available.

We believe that these non-GAAP financial measures provide useful information to investors because they are an indicator of the strength and performance of ongoing business operations. These calculations are commonly used as a basis for investors, analysts and other interested parties to evaluate and compare the operating performance and value of companies within our industry. Finally, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Free Cash Flow, constant currency, adjusted diluted earnings per share and adjusted net income figures are financial and performance measures used by management in reviewing results of operations, forecasting, allocating resources or establishing employee incentive programs. Although MoneyGram believes the above non-GAAP financial measures enhance investors' understanding of its business and performance, these non-GAAP financial measures should not be considered in isolation or as substitutes for the accompanying GAAP financial measures.

Description of Tables

Table One

-

Condensed Consolidated Statements of Operations

Table Two

-

Segment Results

Table Three

-

Segment Reconciliations

Table Four

-

Reconciliation of Certain Non-GAAP Measures to Relevant GAAP Measures - EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow

Table Five

-

Reconciliation of Certain Non-GAAP Measures to Relevant GAAP Measures - Adjusted Net Income and Adjusted Diluted EPS

Table Six

-

Condensed Consolidated Balance Sheets

Table Seven

-

Condensed Consolidated Statements of Cash Flows

CONTACTS

   

Investor Relations:

 

Media Relations:

214-979-1400

 

Stephen Reiff

[email protected]

 

[email protected]

TABLE ONE

MONEYGRAM INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

             

(Amounts in millions, except percentages and per share data)

 

Three Months Ended 
March 31,

 

2020 vs

 

2020

 

2019

 

2019

             

REVENUE

           

Fee and other revenue

 

$

280.8

   

$

301.0

   

$

(20.2)

 

Investment revenue

 

10.1

   

14.4

   

(4.3)

 

Total revenue

 

290.9

   

315.4

   

(24.5)

 
             

Total revenue change, as reported

 

(8)

%

 

(17)

%

   

Total revenue change, constant currency

 

(7)

%

 

(15)

%

   
             

OPERATING EXPENSES

           

Total commissions and direct transaction expenses

 

154.4

   

160.9

   

(6.5)

 

Compensation and benefits

 

53.4

   

59.4

   

(6.0)

 

Transaction and operations support (1)

 

38.0

   

52.1

   

(14.1)

 

Occupancy, equipment and supplies

 

14.9

   

15.4

   

(0.5)

 

Depreciation and amortization

 

17.1

   

19.0

   

(1.9)

 

Total operating expenses

 

277.8

   

306.8

   

(29.0)

 

OPERATING INCOME

 

13.1

   

8.6

   

4.5

 

Other expenses

           

Interest expense

 

23.8

   

13.9

   

9.9

 

Other non-operating expense

 

1.1

   

1.6

   

(0.5)

 

Total other expenses

 

24.9

   

15.5

   

9.4

 

Loss before income taxes

 

(11.8)

   

(6.9)

   

(4.9)

 

Income tax expense

 

9.7

   

6.6

   

3.1

 

NET LOSS

 

$

(21.5)

   

$

(13.5)

   

$

(8.0)

 
             

Basic and diluted loss per common share

 

$

(0.28)

   

$

(0.21)

   

$

(0.07)

 
             

Basic and diluted weighted-average outstanding common shares and equivalents used in computing loss per share

 

77.4

   

64.8

   

12.6

 
             

(1) Three months ended March 31, 2020, includes Ripple market development fees of $16.6 million, partially offset by related transaction and trading expenses of $4.5 million.

TABLE TWO

MONEYGRAM INTERNATIONAL, INC.

SEGMENT RESULTS

(Unaudited)

             
             

Global Funds Transfer

           

(Amounts in millions, except percentages)

 

Three Months Ended 
March 31,

 

2020 vs

 

2020

 

2019

 

2019

Money transfer revenue

 

$

255.9

   

$

273.3

   

$

(17.4)

 

Bill payment revenue

 

13.4

   

15.9

   

(2.5)

 

Total revenue

 

$

269.3

   

$

289.2

   

$

(19.9)

 
             

Commissions and direct transaction expenses

 

$

151.3

   

$

154.3

   

$

(3.0)

 
             

Operating income

 

$

6.7

   

$

1.1

   

$

5.6

 
             

Operating margin

 

2.5

%

 

0.4

%

   
             

Money transfer revenue change, as reported

 

(6)

%

 

(19)

%

   

Money transfer revenue change, constant currency

 

(5)

%

 

(16)

%

   
             

Financial Paper Products

           
             

(Amounts in millions, except percentages)

 

Three Months Ended 
March 31,

 

2020 vs

 

2020

 

2019

 

2019

Money order revenue

 

$

12.1

   

$

13.9

   

$

(1.8)

 

Official check revenue

 

9.5

   

12.3

   

(2.8)

 

Total revenue

 

$

21.6

   

$

26.2

   

$

(4.6)

 
             

Total commissions expense

 

$

3.1

   

$

6.6

   

$

(3.5)

 
             

Operating income

 

$

7.0

   

$

8.2

   

$

(1.2)

 
             

Operating margin

 

32.4

%

 

31.3

%

   
             

TABLE THREE

MONEYGRAM INTERNATIONAL, INC.

SEGMENT RECONCILIATIONS

(Unaudited)

             

Global Funds Transfer

           

(Amounts in millions, except percentages)

 

Three Months Ended 
March 31,

 

2020 vs

 

2020

 

2019

 

2019

             

Revenue (as reported)

 

$

269.3

   

$

289.2

   

$

(19.9)

 
             

Adjusted operating income

 

$

15.7

   

$

12.3

   

$

3.4

 
             

Legal and contingent matters

 

(0.3)

   

—

   

(0.3)

 

Restructuring and reorganization costs

 

(0.5)

   

(3.6)

   

3.1

 

Compliance enhancement program

 

(1.6)

   

(1.1)

   

(0.5)

 

Direct monitor costs

 

(4.8)

   

(4.1)

   

(0.7)

 

Stock-based compensation expense

 

(1.8)

   

(2.4)

   

0.6

 

Total adjustments

 

(9.0)

   

(11.2)

   

2.2

 
             

Operating income (as reported)

 

$

6.7

   

$

1.1

   

$

5.6

 
             

Adjusted operating margin

 

5.8

%

 

4.3

%

   

Total adjustments

 

(3.3)

%

 

(3.9)

%

   

Operating margin (as reported)

 

2.5

%

 

0.4

%

   
             
             
             

Financial Paper Products

           

(Amounts in millions, except percentages)

 

Three Months Ended 
March 31,

 

2020 vs

 

2020

 

2019

 

2019

             

Revenue (as reported)

 

$

21.6

   

$

26.2

   

$

(4.6)

 
             

Adjusted operating income

 

$

7.6

   

$

8.8

   

$

(1.2)

 
             

Compliance enhancement program

 

(0.4)

   

(0.4)

   

—

 

Stock-based compensation expense

 

(0.2)

   

(0.2)

   

—

 

Total adjustments

 

(0.6)

   

(0.6)

   

—

 
             

Operating income (as reported)

 

$

7.0

   

$

8.2

   

$

(1.2)

 
             

Adjusted operating margin

 

35.2

%

 

33.6

%

   

Total adjustments

 

(2.8)

%

 

(2.3)

%

   

Operating margin (as reported)

 

32.4

%

 

31.3

%

   
             

TABLE FOUR

MONEYGRAM INTERNATIONAL, INC.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO RELEVANT GAAP MEASURES

EBITDA, ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN AND ADJUSTED FREE CASH FLOW

(Unaudited)

         

(Amounts in millions, except percentages)

 

Three Months Ended 
March 31,

 

2020 vs

 

2020

 

2019

 

2019

             

Loss before income taxes

 

$

(11.8)

   

$

(6.9)

   

$

(4.9)

 

Interest expense

 

23.8

   

13.9

   

9.9

 

Depreciation and amortization

 

17.1

   

19.0

   

(1.9)

 

Signing bonus amortization

 

12.5

   

11.7

   

0.8

 

EBITDA

 

41.6

   

37.7

   

3.9

 
             

Significant items impacting EBITDA:

           

Direct monitor costs

 

4.8

   

4.1

   

0.7

 

Compliance enhancement program

 

2.0

   

1.5

   

0.5

 

Stock-based compensation

 

2.0

   

2.6

   

(0.6)

 

Restructuring and reorganization costs

 

0.5

   

3.5

   

(3.0)

 

Legal and contingent matters

 

0.4

   

0.6

   

(0.2)

 

Severance and related costs

 

0.2

   

0.1

   

0.1

 

Adjusted EBITDA

 

$

51.5

   

$

50.1

   

$

1.4

 
             

Adjusted EBITDA margin (1)

 

17.7

%

 

15.9

%

 

1.8

%

             

Adjusted EBITDA change, as reported

 

3

%

       

Adjusted EBITDA change, constant currency adjusted

 

4

%

       
             

Adjusted EBITDA

 

$

51.5

   

$

50.1

   

$

1.4

 

Cash payments for interest

 

(17.6)

   

(12.8)

   

(4.8)

 

Cash payments for taxes, net of refunds

 

(2.1)

   

(1.2)

   

(0.9)

 

Cash payments for capital expenditures

 

(10.1)

   

(12.7)

   

2.6

 

Cash payments for agent signing bonuses

 

(25.0)

   

(10.1)

   

(14.9)

 

Adjusted Free Cash (Outflow) Flow

 

$

(3.3)

   

$

13.3

   

$

(16.6)

 
             

(1) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenue.

TABLE FIVE

MONEYGRAM INTERNATIONAL, INC.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO RELEVANT GAAP MEASURES

ADJUSTED NET INCOME AND ADJUSTED DILUTED EPS

(Unaudited)

         
   

Three Months Ended 
March 31,

(Amounts in millions, except per share data)

 

2020

 

2019

         

Net loss

 

$

(21.5)

   

$

(13.5)

 

Total adjustments (1)

 

9.9

   

12.4

 

Tax impacts of adjustments (2)

 

(2.3)

   

(2.8)

 

Valuation allowance (3)

 

10.1

   

—

 

Adjusted net loss

 

$

(3.8)

   

$

(3.9)

 
         
         

Diluted loss per common share

 

$

(0.28)

   

$

(0.21)

 
         

Diluted adjustments per common share

 

0.23

   

0.15

 
         

Diluted adjusted loss per common share

 

$

(0.05)

   

$

(0.06)

 
         

Diluted weighted-average outstanding common shares and equivalents

 

77.4

   

64.8

 
         
 

(1) See summary of adjustments in Table Four - EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow.

(2) Tax rates used to calculate the tax expense impact are based on the nature and jurisdiction of each adjustment.

(3) In the first quarter of 2020, the Company recorded beginning-of-the-year valuation allowance of $10.1 million on its U.S. deferred tax assets.

TABLE SIX

MONEYGRAM INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

         

(Amounts in millions, except share data)

 

March 31, 2020

 

December 31, 2019

ASSETS

       

Cash and cash equivalents

 

$

131.0

   

$

146.8

 

Settlement assets

 

2,944.5

   

3,237.0

 

Property and equipment, net

 

169.6

   

176.1

 

Goodwill

 

442.2

   

442.2

 

Other assets

 

208.4

   

182.9

 

Total assets

 

$

3,895.7

   

$

4,185.0

 

LIABILITIES

       

Payment service obligations

 

$

2,944.5

   

$

3,237.0

 

Debt, net

 

877.5

   

850.3

 

Pension and other postretirement benefits

 

76.8

   

77.5

 

Accounts payable and other liabilities

 

264.6

   

260.6

 

Total liabilities

 

4,163.4

   

4,425.4

 

STOCKHOLDERS' DEFICIT

       

Participating convertible preferred stock - series D, $0.01 par value, 200,000 shares authorized, 71,282 issued at March 31, 2020 and December 31, 2019

 

183.9

   

183.9

 

Common stock, $0.01 par value, 162,500,000 shares authorized, 65,061,090 shares issued at March 31, 2020 and December 31, 2019

 

0.7

   

0.7

 

Additional paid-in capital

 

1,118.8

   

1,116.9

 

Retained loss

 

(1,488.5)

   

(1,460.1)

 

Accumulated other comprehensive loss

 

(70.3)

   

(63.5)

 

Treasury stock: 1,630,770 and 2,329,906 shares at March 31, 2020 and December 31, 2019, respectively

 

(12.3)

   

(18.3)

 

Total stockholders' deficit

 

(267.7)

   

(240.4)

 

Total liabilities and stockholders' deficit

 

$

3,895.7

   

$

4,185.0

 
         

TABLE SEVEN

MONEYGRAM INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

     
   

Three Months Ended 
March 31,

(Amounts in millions)

 

2020

 

2019

CASH FLOWS FROM OPERATING ACTIVITIES

       

Net loss

 

$

(21.5)

   

$

(13.5)

 

Adjustments to reconcile net loss to net cash (used in) provided by operating activities

 

(4.9)

   

13.8

 

Net cash (used in) provided by operating activities

 

(26.4)

   

0.3

 

CASH FLOWS FROM INVESTING ACTIVITIES

       

Purchases of property and equipment

 

(10.1)

   

(12.7)

 

Net cash used in investing activities

 

(10.1)

   

(12.7)

 

CASH FLOWS FROM FINANCING ACTIVITIES

       

Principal payments on debt

 

(1.6)

   

(2.5)

 

Proceeds from revolving credit facility

 

23.0

   

—

 

Payments to tax authorities for stock-based compensation

 

(0.7)

   

(0.7)

 

Net cash provided by (used in) financing activities

 

20.7

   

(3.2)

 

NET CHANGE IN CASH AND CASH EQUIVALENTS

 

(15.8)

   

(15.6)

 

CASH AND CASH EQUIVALENTS—Beginning of period

 

146.8

   

145.5

 

CASH AND CASH EQUIVALENTS—End of period

 

$

131.0

   

$

129.9

 
         

SOURCE MoneyGram

Related Links

www.moneygram.com

Modal title

Also from this source

Con las transacciones digitales por lo alto durante la época de...


Digital Transactions Soar Over the Holidays as MoneyGram Reports...

Explore

More news releases in similar topics

  • Banking & Financial Services
  • Earnings
  • Earnings Forecasts & Projections
  • Conference Call Announcements

    Contact Cision

  • Cision Distribution 888-776-0942
    from 8 AM - 9 PM ET

  • Chat with an Expert
    • General Inquiries
    • Request a Demo
    • Editorial Bureaus
    • Partnerships
    • Media Inquiries
    • Worldwide Offices

    Products

  • Cision Communication Cloud®
  • For Marketers
  • For Public Relations
  • For IR & Compliance
  • For Agency
  • For Small Business
  • All Products

    About

  • About PR Newswire
  • About Cision
  • Become a Publishing Partner
  • Become a Channel Partner
  • Careers
  • COVID-19 Resources
  • Accessibility Statement

    • Asia
    • Brazil
    • Canada
    • Czech
    • Denmark
    • Finland
    • France
    • Germany
    • India
    • Israel
    • Italy
    • Mexico
    • Middle East
    • Netherlands
    • Norway
    • Poland
    • Portugal
    • Russia
    • Slovakia
    • Spain
    • Sweden
    • United Kingdom

    My Services

  • All New Releases
  • Online Member Center
  • ProfNet

Contact Cision


Products


About


My Services
  • All News Releases
  • Online Member Center
  • ProfNet℠
Cision Distribution Helpline
888-776-0942
  • Terms of Use
  • Privacy Policy
  • Information Security Policy
  • Site Map
  • RSS
  • Cookie Settings
Copyright © 2021 Cision US Inc.