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      MoneyGram International Reports Third Quarter 2016 Financial Results

      MoneyGram Logo

      News provided by

      MoneyGram

      Oct 28, 2016, 07:00 ET

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      DALLAS, Oct. 28, 2016 /PRNewswire/ -- MoneyGram (NASDAQ:MGI) today reported financial results for its third quarter ended September 30, 2016.

      Third Quarter Financial Results

      Continue Reading
      MoneyGram International Reports Third Quarter 2016 Financial Results
      MoneyGram International Reports Third Quarter 2016 Financial Results

      • Total revenue for the quarter was $383.1 million, an increase of 4% on a reported basis and 5% on a constant currency basis. 
      • Net income for the quarter was $10.2 million, an increase of $5.3 million, and EBITDA was $58.1 million, an increase of 17%.
      • Operating income for the quarter was $26.2 million, an increase of 58%. 
      • Adjusted EBITDA for the quarter was $68.7 million, an increase of 5% on a reported basis and 8% on a constant currency basis.  Adjusted EBITDA margin was 18%.
      • Income tax expense for the quarter was $4.7 million, representing a 32% tax rate.  The lower tax rate, which benefited earnings per share by $0.01, resulted primarily from certain tax credits realized in the quarter.
      • Diluted earnings per share for the quarter was $0.15. Adjusted diluted earnings per share was $0.25.
      • Year-to-date Adjusted Free Cash Flow was $83.6 million, an increase of $103.6 million from the prior year period.

      "Our focus on driving profitability yielded solid improvements to key financial metrics in the third quarter including gross margin, operating profit, EBITDA, net income and cash flow, resulting in a strengthened balance sheet," said Alex Holmes, MoneyGram's chief executive officer.  "The quality of our earnings also improved even as revenue growth continued to be impacted by economic challenges in certain countries and geopolitical issues.  We are navigating these challenges and remain confident in the fundamentals of our business as we capitalize on profitable growth through new products and global expansion opportunities."

      Third Quarter Money Transfer Highlights

      • Money transfer revenue for the quarter was $339.6 million, representing a 4% increase on a reported basis and 5% on a constant currency basis. 
      • Money transfer revenue reflects continued growth in the Company's Non-U.S. and U.S. Outbound sends in the third quarter:
        • Non-U.S. revenue grew 4% on a reported basis and 6% on a constant currency basis led primarily by Europe offset by headwinds in the Middle East and parts of Africa.
        • U.S. Outbound revenue grew 8% on a reported and constant currency basis led by sends to Latin America, parts of Asia and Africa.
        • U.S. to U.S. revenue declined 7% on a reported and constant currency basis primarily due to lower volume of transactions under $200.    
      • Money transfer revenue from U.S. Outbound and Non-U.S. sends grew 6% in the quarter on a reported basis and 7% on a constant currency basis and accounted for 88% of total money transfer revenue.
      • Digital money transfer revenue grew 12% over the prior year, and represented 13% of total money transfer revenue.  
      • Digital money transfer transactions increased 4%, and represented 15% of total money transfer transactions. These results reflect the Company's grow-over of the successful launch of its new moneygram.com in the prior year and softness in Saudi Arabia where a large portion of the business is driven by digital assets.
      • moneygram.com attracted more than 225,000 new active customers.

      Mr. Holmes continued, "We are excited to be a leader in the digital revolution that is overhauling the customer experience and transforming the money transfer industry.  Innovative products including MoneyGram Kameleon, MoneyGram MobilePass, our award winning website, mobile app and kiosks showcase MoneyGram's capabilities in financial technology and bring us closer to our customers.  As we overlay these capabilities with our expanding global cash-based physical network of agent locations, our value proposition becomes even more distinct, our relationships with our customers even more dynamic, and our future growth prospects even stronger."

      Full Year 2016 Outlook

      For the full year 2016, the Company's outlook for 7%-9% constant currency revenue growth and constant currency adjusted EBITDA growth of 9%-11% is unchanged.

      Forward-Looking Statements

      This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements with respect to, among other things, the financial condition, results of operations, plans, objectives, future performance and business of MoneyGram and its subsidiaries. Forward-looking statements can be identified by words such as "believes," "estimates," "expects," "projects," "plans," "anticipates," "intends," "continues," "will," "should," "could," "may," "would," "goals" and other similar expressions. These forward-looking statements speak only as of the date they are made, and MoneyGram undertakes no obligation to publicly update or revise any forward-looking statement, except as required by federal securities law. These forward-looking statements are based on management's current expectations and are subject to certain risks, uncertainties and changes in circumstances due to a number of factors. These factors include, but are not limited to: 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 the introduction by Walmart of a competing "white label" branded money transfer product 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 and regulatory proceedings involving us or our agents, 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; possible uncertainties relating to compliance with and the impact of the deferred prosecution agreement entered into with the U.S. federal government and the effect of the deferred prosecution agreement on our reputation; current and proposed regulations addressing consumer privacy and data use and security; our ability to successfully develop and timely introduce new and enhanced products and services or investments in unsuccessful new products, services or infrastructure changes; our offering of money transfer services through agents in regions that are politically volatile or, in a limited number of cases, that are subject to certain Office of Foreign Assets Control restrictions; changes in tax laws or unfavorable outcomes of tax positions we take, or a failure by us to establish adequate reserves for tax events; our substantial debt service obligations, significant debt covenant requirements and credit rating and our ability to maintain sufficient capital; our ability to manage risks associated with our international sales and operations, including risks associated with the United Kingdom's vote to withdraw from the European Union; 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; disruptions to our computer systems and data centers and our ability to effectively operate and adapt our technology; weakened consumer confidence in our business or money transfers generally; continued 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; our ability to manage credit risks from our retail 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 attract and retain key employees; 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 ability to maintain effective internal controls; our capital structure and the special voting rights provided to designees of Thomas H. Lee Partners, L.P. on our Board of Directors; 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 reports filed with the Securities and Exchange Commission, including MoneyGram's annual report on Form 10-K for the year ended December 31, 2015 and subsequent Form 10-Qs.

      Non-GAAP Measures

      In addition to results presented in accordance with 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, cash payments related to an IRS tax matter, 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, reorganization and restructuring 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   

      –     EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow

      Table Five    

      –     Adjusted Net Income and Adjusted Diluted EPS

      Table Six      

      –     Condensed Consolidated Balance Sheets

      Table Seven  

      –     Condensed Consolidated Statements of Cash Flows

      Conference Call

      MoneyGram International will host a conference call today at 8:00 a.m. CT, 9:00 a.m. ET, to discuss its results. Alex Holmes, chief executive officer, and Larry Angelilli, chief financial officer, will host the call. 

      Participant Dial-In Numbers:



      U.S.:      

      1-866-454-4209

      International:

      +1-913-981-5549

      Replay:         

      1-844-512-2921 or 1-412-317-6671

      Replay ID:     

      9861257

      Replay is available through November 4, 2016

      About MoneyGram International, Inc.

      MoneyGram is a global provider of innovative money transfer and payment services and is recognized worldwide as a financial connection to friends and family. Whether online, or through a mobile device, at a kiosk or in a local store, we connect consumers any way that is convenient for them. We also provide bill payment services, issue money orders and process official checks in select markets. More information about MoneyGram International, Inc. is available at moneygram.com.

      TABLE ONE

      MONEYGRAM INTERNATIONAL, INC.

      CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

      (Unaudited)
















      Three Months Ended
      September 30,


      2016 vs


      Nine Months Ended
      September 30,


      2016 vs

      (Amounts in millions, except per share data)


      2016


      2015


      2015


      2016


      2015


      2015














      REVENUE













      Fee and other revenue


      $

      378.5



      $

      365.8



      $

      12.7



      $

      1,112.5



      $

      1,049.5



      $

      63.0


      Investment revenue


      4.6



      2.8



      1.8



      12.7



      8.5



      4.2


      Total revenue


      383.1



      368.6



      14.5



      1,125.2



      1,058.0



      67.2















      Total revenue growth, as reported


      4

      %


      3

      %




      6

      %


      (4)

      %



      Total revenue growth, constant currency


      5

      %


      8

      %




      7

      %


      0

      %
















      OPERATING EXPENSES













      Commissions expense


      170.8



      168.9



      1.9



      507.1



      485.8



      21.3


      Compensation and benefits


      72.4



      73.1



      (0.7)



      218.5



      235.6



      (17.1)


      Transaction and operations support


      79.5



      78.2



      1.3



      227.1



      238.9



      (11.8)


      Occupancy, equipment and supplies


      15.6



      15.0



      0.6



      46.8



      46.3



      0.5


      Depreciation and amortization


      18.6



      16.8



      1.8



      60.2



      48.8



      11.4


      Total operating expenses


      356.9



      352.0



      4.9



      1,059.7



      1,055.4



      4.3


      OPERATING INCOME


      26.2



      16.6



      9.6



      65.5



      2.6



      62.9


      Other expense













      Interest expense


      11.3



      11.2



      0.1



      33.8



      33.7



      0.1


      Total other expense


      11.3



      11.2



      0.1



      33.8



      33.7



      0.1


      Income (loss) before income taxes


      14.9



      5.4



      9.5



      31.7



      (31.1)



      62.8


      Income tax expense


      4.7



      0.5



      4.2



      22.6



      48.4



      (25.8)


      NET INCOME (LOSS)


      $

      10.2



      $

      4.9



      $

      5.3



      $

      9.1



      $

      (79.5)



      $

      88.6















      INCOME (LOSS) PER COMMON SHARE













      Basic


      $

      0.16



      $

      0.08



      $

      0.08



      $

      0.15



      $

      (1.28)



      $

      1.43


      Diluted


      $

      0.15



      $

      0.08



      $

      0.07



      $

      0.14



      $

      (1.28)



      $

      1.42















      Weighted-average outstanding common shares and equivalents used in computing income (loss) per share













      Basic (1)


      62.2



      62.1



      0.1



      62.4



      62.1



      0.3


      Diluted (1)


      66.4



      63.8



      2.6



      66.2



      62.1



      4.1















      (1) Includes common stock equivalents of 8.9 million for the three and nine months ended September 30, 2016 and 2015, respectively. The following weighted-average potential common shares are excluded from diluted earnings (loss) per common share as their effect is anti-dilutive. All potential common shares are anti-dilutive in periods of net loss available to common stockholders.














      Shares related to stock options


      2.7



      3.3





      2.8



      3.5




      Shares related to restricted stock units


      0.8



      2.6





      0.8



      3.7




      TABLE TWO

      MONEYGRAM INTERNATIONAL, INC.

      SEGMENT RESULTS

      (Unaudited)














      Global Funds Transfer















      Three Months Ended
      September 30,


      2016 vs


      Nine Months Ended
      September 30,


      2016 vs

      (Amounts in millions)


      2016


      2015


      2015


      2016


      2015


      2015














      Money transfer revenue


      $

      339.6



      $

      326.6



      $

      13.0



      $

      997.3



      $

      930.0



      $

      67.3


      Bill payment revenue


      24.6



      24.4



      0.2



      71.9



      74.0



      (2.1)


      Total revenue


      $

      364.2



      $

      351.0



      $

      13.2



      $

      1,069.2



      $

      1,004.0



      $

      65.2















      Total commissions expense


      $

      169.8



      $

      168.5



      $

      1.3



      $

      504.6



      $

      485.0



      $

      19.6















      Operating income


      $

      26.6



      $

      18.9



      $

      7.7



      $

      70.0



      $

      19.5



      $

      50.5















      Operating margin


      7.3

      %


      5.4

      %




      6.5

      %


      1.9

      %
















      Money transfer revenue growth, as reported


      4

      %


      4

      %




      7

      %


      (4)

      %



      Money transfer revenue growth, constant currency


      5

      %


      9

      %




      8

      %


      1

      %
















      Financial Paper Products
























      Three Months Ended
      September 30,


      2016 vs


      Nine Months Ended
      September 30,


      2016 vs

      (Amounts in millions)


      2016


      2015


      2015


      2016


      2015


      2015














      Money order revenue


      $

      12.6



      $

      12.5



      $

      0.1



      $

      38.2



      $

      38.4



      $

      (0.2)


      Official check revenue


      6.3



      5.1



      1.2



      17.8



      15.6



      2.2


      Total revenue


      $

      18.9



      $

      17.6



      $

      1.3



      $

      56.0



      $

      54.0



      $

      2.0















      Total commissions expense


      $

      1.0



      $

      0.3



      $

      0.7



      $

      2.5



      $

      0.8



      $

      1.7















      Operating income


      $

      4.5



      $

      3.4



      $

      1.1



      $

      13.6



      $

      12.8



      $

      0.8















      Operating margin


      23.8

      %


      19.3

      %




      24.3

      %


      23.7

      %




      TABLE THREE

      MONEYGRAM INTERNATIONAL, INC.

      SEGMENT RECONCILIATIONS

      (Unaudited)














      Global Funds Transfer















      Three Months Ended
      September 30,


      2016 vs


      Nine Months Ended
      September 30,


      2016 vs

      (Amounts in millions)


      2016


      2015


      2015


      2016


      2015


      2015














      Revenue (as reported)


      $

      364.2



      $

      351.0



      $

      13.2



      $

      1,069.2



      $

      1,004.0



      $

      65.2















      Adjusted operating income


      $

      35.6



      $

      34.3



      $

      1.3



      $

      97.5



      $

      74.8



      $

      22.7















      Reorganization and restructuring costs (1)


      —



      (2.5)



      2.5



      —



      (15.0)



      15.0


      Compliance enhancement program


      (2.6)



      (5.4)



      2.8



      (7.0)



      (19.9)



      12.9


      Direct monitor costs


      (2.6)



      (2.8)



      0.2



      (7.3)



      (7.5)



      0.2


      Stock-based compensation expense


      (3.8)



      (4.7)



      0.9



      (12.3)



      (12.9)



      0.6


      Severance and related costs


      —



      —



      —



      (0.9)



      —



      (0.9)


      Total adjustments


      (9.0)



      (15.4)



      6.4



      (27.5)



      (55.3)



      27.8















      Operating income (as reported)


      $

      26.6



      $

      18.9



      $

      7.7



      $

      70.0



      $

      19.5



      $

      50.5















      Adjusted operating margin


      9.8

      %


      9.8

      %




      9.1

      %


      7.5

      %



      Total adjustments


      (2.5)

      %


      (4.4)

      %




      (2.6)

      %


      (5.5)

      %



      Operating margin (as reported)


      7.3

      %


      5.4

      %




      6.5

      %


      1.9

      %










































      Financial Paper Products















      Three Months Ended
      September 30,


      2016 vs


      Nine Months Ended
      September 30,


      2016 vs

      (Amounts in millions)


      2016


      2015


      2015


      2016


      2015


      2015














      Revenue (as reported)


      $

      18.9



      $

      17.6



      $

      1.3



      $

      56.0



      $

      54.0



      $

      2.0















      Adjusted operating income


      $

      5.2



      $

      4.5



      $

      0.7



      $

      15.7



      $

      17.3



      $

      (1.6)















      Reorganization and restructuring costs (1)


      —



      (0.2)



      0.2



      —



      (1.7)



      1.7


      Compliance enhancement program


      (0.3)



      (0.4)



      0.1



      (0.8)



      (1.4)



      0.6


      Stock-based compensation expense


      (0.4)



      (0.5)



      0.1



      (1.3)



      (1.4)



      0.1


      Total adjustments


      (0.7)



      (1.1)



      0.4



      (2.1)



      (4.5)



      2.4















      Operating income (as reported)


      $

      4.5



      $

      3.4



      $

      1.1



      $

      13.6



      $

      12.8



      $

      0.8















      Adjusted operating margin


      27.5

      %


      25.6

      %




      28.0

      %


      32.0

      %



      Total adjustments


      (3.7)

      %


      (6.3)

      %




      (3.8)

      %


      (8.3)

      %



      Operating margin (as reported)


      23.8

      %


      19.3

      %




      24.3

      %


      23.7

      %





























      (1) Reorganization and restructuring costs are no longer being adjusted effective January 1, 2016.



      TABLE FOUR

      MONEYGRAM INTERNATIONAL, INC.

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

      (Unaudited)












      Three Months Ended
      September 30,


      2016 vs


      Nine Months Ended
      September 30,


      2016 vs

      (Amounts in millions)


      2016


      2015


      2015


      2016


      2015


      2015














      Income (loss) before income taxes


      $

      14.9



      $

      5.4



      $

      9.5



      $

      31.7



      $

      (31.1)



      $

      62.8


      Interest expense


      11.3



      11.2



      0.1



      33.8



      33.7



      0.1


      Depreciation and amortization


      18.6



      16.8



      1.8



      60.2



      48.8



      11.4


      Amortization of agent signing bonuses


      13.3



      16.2



      (2.9)



      41.0



      45.3



      (4.3)


      EBITDA


      58.1



      49.6



      8.5



      166.7



      96.7



      70.0















      Significant items impacting EBITDA:













      Stock-based, contingent and incentive compensation


      4.2



      6.8



      (2.6)



      14.9



      19.6



      (4.7)


      Compliance enhancement program


      3.1



      5.8



      (2.7)



      8.0



      21.5



      (13.5)


      Direct monitor costs


      2.6



      2.8



      (0.2)



      7.3



      7.5



      (0.2)


      Legal and contingent matters (1)


      0.7



      (2.3)



      3.0



      1.4



      1.4



      —


      Severance and related costs (2)


      —



      —



      —



      1.4



      —



      1.4


      Reorganization and restructuring costs (3)


      —



      2.9



      (2.9)



      —



      17.4



      (17.4)


      Pension settlement charge


      —



      —



      —



      —



      13.8



      (13.8)


      Adjusted EBITDA


      $

      68.7



      $

      65.6



      $

      3.1



      $

      199.7



      $

      177.9



      $

      21.8















      Adjusted EBITDA margin (4)


      17.9

      %


      17.8

      %


      0.1

      %


      17.7

      %


      16.8

      %


      0.9

      %














      Adjusted EBITDA growth, as reported


      5

      %






      12

      %





      Adjusted EBITDA growth, constant currency adjusted


      8

      %






      14

      %


















      Adjusted EBITDA


      $

      68.7



      $

      65.6



      $

      3.1



      $

      199.7



      $

      177.9



      $

      21.8


      Cash payments for interest


      (10.5)



      (10.6)



      0.1



      (31.4)



      (31.6)



      0.2


      Cash taxes, net


      (2.5)



      (1.9)



      (0.6)



      (7.1)



      (67.2)



      60.1


      Payments related to IRS tax matter


      —



      —



      —



      —



      61.0



      (61.0)


      Cash payments for capital expenditures


      (22.3)



      (29.1)



      6.8



      (60.4)



      (88.8)



      28.4


      Cash payments for agent signing bonuses


      (2.6)



      (7.5)



      4.9



      (17.2)



      (71.3)



      54.1


      Adjusted Free Cash Flow


      $

      30.8



      $

      16.5



      $

      14.3



      $

      83.6



      $

      (20.0)



      $

      103.6
















      (1) Third quarter of 2015 includes reversal of a previously accrued contingent matter.

      (2) Severance and related costs from organizational alignment.

      (3) Reorganization and restructuring costs are no longer being adjusted effective January 1, 2016.

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


      TABLE FIVE

      MONEYGRAM INTERNATIONAL, INC.

      ADJUSTED NET INCOME and ADJUSTED DILUTED EPS

      (Unaudited)










      Three Months Ended
      September 30,


      Nine Months Ended
      September 30,

      (Amounts in millions, except per share data)


      2016


      2015


      2016


      2015










      Net income (loss)


      $

      10.2



      $

      4.9



      $

      9.1



      $

      (79.5)











      Total adjustments (1)


      10.6



      16.0



      33.0



      81.2











      Tax impacts of adjustments (2)


      (3.9)



      (5.8)



      (12.0)



      (29.6)


      Tax adjustments (3)


      —



      —



      7.7



      63.7


      Adjusted net income


      $

      16.9



      $

      15.1



      $

      37.8



      $

      35.8




















      Diluted earnings (loss) per common share


      $

      0.15



      $

      0.08



      $

      0.14



      $

      (1.28)











      Diluted adjustments per common share


      0.10



      0.16



      0.43



      1.86











      Diluted adjusted earnings per common share


      $

      0.25



      $

      0.24



      $

      0.57



      $

      0.58











      Diluted weighted-average outstanding common shares and equivalents


      66.4



      63.8



      66.2



      62.1












      (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 of each adjustment.

      (3) Represents adjustments to income tax expense for an IRS tax litigation matter and a change to an uncertain tax position.

      TABLE SIX

      MONEYGRAM INTERNATIONAL, INC.

      CONDENSED CONSOLIDATED BALANCE SHEETS

      (Unaudited)






      (Amounts in millions, except share data)


      September 30, 2016


      December 31, 2015

      ASSETS





      Cash and cash equivalents


      $

      173.1



      $

      164.5


      Settlement assets


      3,440.4



      3,505.6


      Property and equipment, net


      201.3



      199.7


      Goodwill


      442.2



      442.2


      Other assets


      169.1



      193.2


      Total assets


      $

      4,426.1



      $

      4,505.2







      LIABILITIES





      Payment service obligations


      $

      3,440.4



      $

      3,505.6


      Debt


      937.3



      942.6


      Pension and other postretirement benefits


      86.5



      96.3


      Accounts payable and other liabilities


      170.4



      183.5


      Total liabilities


      4,634.6



      4,728.0







      STOCKHOLDERS' DEFICIT





      Participating convertible preferred stock - series D, $0.01 par value, 200,000 shares authorized, 71,282 issued at September 30, 2016 and December 31, 2015


      183.9



      183.9


      Common stock, $0.01 par value, 162,500,000 shares authorized, 58,823,567 shares issued at September 30, 2016 and December 31, 2015


      0.6



      0.6


      Additional paid-in capital


      1,016.1



      1,002.4


      Retained loss


      (1,251.7)



      (1,226.8)


      Accumulated other comprehensive loss


      (47.1)



      (48.7)


      Treasury stock: 5,757,015 and 5,612,188 shares at September 30, 2016 and December 31, 2015, respectively


      (110.3)



      (134.2)


      Total stockholders' deficit


      (208.5)



      (222.8)


      Total liabilities and stockholders' deficit


      $

      4,426.1



      $

      4,505.2







      TABLE SEVEN

      MONEYGRAM INTERNATIONAL, INC.

      CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

      (Unaudited)






      Nine Months Ended
      September 30,

      (Amounts in millions)


      2016


      2015






      CASH FLOWS FROM OPERATING ACTIVITIES





      Net income (loss)


      $

      9.1



      $

      (79.5)


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


      75.4



      77.0


      Net cash provided by (used in) operating activities


      84.5



      (2.5)







      CASH FLOWS FROM INVESTING ACTIVITIES





      Purchases of property and equipment


      (60.4)



      (88.8)


      Proceeds from disposal of assets


      —



      0.1


      Net cash used in investing activities


      (60.4)



      (88.7)







      CASH FLOWS FROM FINANCING ACTIVITIES





      Principal payments on debt


      (7.3)



      (7.4)


      Stock repurchases


      (7.5)



      (0.4)


      Payment for contingent consideration


      (0.7)



      —


      Net cash used in financing activities


      (15.5)



      (7.8)


      NET CHANGE IN CASH AND CASH EQUIVALENTS


      8.6



      (99.0)







      CASH AND CASH EQUIVALENTS—Beginning of period


      164.5



      250.6


      CASH AND CASH EQUIVALENTS—End of period


      $

      173.1



      $

      151.6







      CONTACT:
      MoneyGram International, Inc.
      Suzanne Rosenberg
      214-979-1400
      [email protected]

      Media Relations:
      Michelle Buckalew
      214-979-1418
      [email protected]

      Photo - http://photos.prnewswire.com/prnh/20161027/433539-INFO
      Logo - http://photos.prnewswire.com/prnh/20150730/251082LOGO 

      SOURCE MoneyGram

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