Digital revenue reached an all-time high of
$95 million and digital transactions
reached 45% of money transfer transactions at the end of the third
quarter
Digital transactions increased 39% over the
prior year
DALLAS, Nov. 8, 2022
/PRNewswire/ -- MoneyGram International, Inc. (NASDAQ: MGI) today
reported financial results for its third quarter ended September 30, 2022.
Third Quarter 2022 Business Highlights
"In the third quarter, we delivered 9% year-over-year revenue
growth on a constant currency basis despite continued global
macro-economic uncertainty. Growth has been primarily driven by
continued demand for our leading mobile app as well as the
successful digital partnerships we've built with fintechs around
the world," said Alex Holmes,
MoneyGram Chairman and CEO.
"Last week, we launched our latest digital offering – the
ability for consumers to buy, sell and hold crypto
through our app. And just three weeks ago, we announced our new
title sponsorship of the Haas F1 Team, which will help amplify our
new and innovative financial solutions to the world. As we approach
the end of the year and look ahead to 2023, I couldn't be more
excited about the momentum in the business."
Money transfer highlights for the quarter include the
following:
•
|
Total money transfer
revenue was $299.1 million, an increase of $2.9 million, or 1% when
compared to the same quarter in 2021. While revenues were up
slightly, they were still negatively impacted as the dollar
continued to strengthen against most major currencies. On a
constant currency basis, money transfer revenue was up 7% compared
to the prior year period.
|
|
•
|
Total money transfer
transactions grew 6% year-over-year;
|
|
•
|
Total money transfer
volume grew 11% on a constant currency basis;
|
|
•
|
Walmart revenue
declined to approximately 7% of money transfer revenue.
Without the impact of Walmart, the money transfer revenue grew 9%
on a constant currency basis.
|
•
|
MoneyGram Online
("MGO") continued its strong financial performance.
|
|
•
|
Total MGO money
transfer revenue was $52.9 million, representing 13% year-over-year
growth;
|
|
•
|
Year-over-year, MGO
cross-border online revenue grew 17%, with transactions growing
15%;
|
|
•
|
Active cross-border
customer growth continued its strong momentum increasing 11%
year-over-year;
|
|
•
|
MGO transactions now
account for 25% of total money transfer transactions.
|
•
|
Total digital, which
includes MGO, digital partners and digital receives, continued its
robust performance reporting year-over-year transaction growth of
39% in the third quarter
|
|
•
|
Digital revenue reached
an all-time high of $95 million for the third quarter with an
impressive 36% year-over-year revenue growth rate;
|
|
•
|
Customers using the
mobile MGO App now account for 80% of total MGO transactions and
the number of mobile customers grew 16% year-over-year.
|
Third Quarter 2022 Financial Results,
Year-Over-Year
•
|
Total revenue was
$330.8 million, an increase of $11.2 million or 3.5%. On a constant
currency basis, total revenue increased by $29.4 million or 9%,
year-over-year.
|
|
•
|
Total revenue increased
12% on a constant currency basis excluding Walmart money transfer
revenue;
|
|
•
|
Total revenue growth
included an increase in investment revenue of 516% or $9.8 million,
driven by higher prevailing short-term U.S. interest rates in the
quarter.
|
•
|
Gross profit was $156.2
million an increase of $7.1 million or 5% driven by the continued
shift in mix to higher margin MGO business and higher investment
income associated with the Financial Paper Products
business
|
•
|
Total operating
expenses were $133.1 million, an increase of $10.8 million or 9%
driven by higher marketing expenses, coupled with increased
currency conversion charges and FX losses driven by the
strengthening dollar against major currencies;
|
•
|
Operating Income was
$23.1 million, a decrease of $3.7 million driven by higher
operating expenses described above and offset slightly by the
higher margins from the MGO business and investment
income;
|
•
|
Net Income was $4.2
million, compared to a $15.6 million Net Loss for the third quarter
of 2021 driven by the early extinguishment of debt costs associated
with the Company's debt refinancing last year;
|
•
|
Fully diluted earnings
per share was $0.04;
|
•
|
Fully diluted adjusted
earnings per share was $0.11;
|
•
|
Adjusted EBITDA
decreased 3% on a reported basis to $54.8 million due to the dollar
strengthening against major currencies, or an increase of 7% on a
constant currency basis;
|
|
•
|
Excluding foreign
exchange gains or losses Adjusted EBITDA increased by 11%
year-over-year on a constant currency basis.
|
Balance Sheet and Liquidity
•
|
Cash and cash
equivalents were $126.7 million as of September 30, 2022, compared
to $117.4 million as of June 30, 2022;
|
•
|
Third quarter interest
expense was $12.2 million, a decrease of $0.8 million
year-over-year or a decline of 6%;
|
•
|
Capital expenditures
were $17.8 million, an increase of $7.6 million compared to the
third quarter of 2021.
|
Recent Merger Updates
MoneyGram and Madison Dearborn Partners, LLC ("MDP") have
recently made significant progress toward completing the closing
conditions of the previously announced merger transaction. To date,
money transmission regulators in 50 U.S. states and territories
have provided their approval of or non-objection to, the
transaction. Only three state approvals remain, and the parties are
in active dialogue with each of these states. In addition,
the parties have obtained all but two approvals from its
international money transmission regulators, and have received
approval from the Financial Conduct Authority (FCA) in the
United Kingdom and the National
Bank of Belgium where MoneyGram
holds its European license.
As previously disclosed, the waiting period under the
Hart-Scott-Rodino Antitrust Improvements Act of 1976 has expired
and MoneyGram stockholders have overwhelmingly approved the
transaction with over 99% of shareholder votes cast in favor of the
merger in May of this year. The parties have also received all
required international antitrust and foreign direct investment
approvals.
The parties continue to work toward the goal of closing the
transactions in the fourth quarter of 2022, subject to customary
closing conditions, including receipt of the regulatory approvals
described above.
About MoneyGram International, Inc.
MoneyGram
International, Inc. (NASDAQ: MGI), a global leader in the evolution
of digital P2P payments, delivers innovative financial solutions to
connect the world's communities. With a purpose-driven strategy to
mobilize the movement of money, a strong culture of fintech
innovation, and leading customer-centric capabilities, MoneyGram
has grown to serve over 150 million people in the last five years.
The Company leverages its modern, mobile, and API-driven platform
and collaborates with the world's top brands to serve consumers
through its direct-to-consumer digital channel, global retail
network, and embedded finance business for enterprise customers.
MoneyGram is also a leader in pioneering cross-border payment
innovation and blockchain-enabled settlement. For more information,
please visit ir.moneygram.com, follow @MoneyGram on social media,
and explore the website and mobile app through moneygram.com.
Forward-Looking Statements
This communication contains forward-looking statements which are
protected as forward-looking statements under the Private
Securities Litigation Reform Act of 1995 that are not limited to
historical facts, but reflect MoneyGram's current beliefs,
expectations or intentions regarding future events and speak only
as of the date they are made. Words such as "may," "might," "will,"
"could," "should," "would," "expect," "plan," "project," "intend,"
"anticipate," "believe," "estimate," "predict," "potential,"
"pursuant," "target," "forecast," "outlook," "continue,"
"currently," and similar expressions are intended to identify such
forward-looking statements. The statements in this communication
that are not historical statements are forward-looking statements
within the meaning of the federal securities laws. Specific
forward-looking statements include, among others, statements
regarding the Company's projected results of operations and
specific factors expected to impact the Company's results of
operations. Forward-looking statements are subject to numerous
risks and uncertainties that are difficult to predict and many of
which are beyond MoneyGram's control, which could cause actual
results to differ materially from the results expressed or implied
by the statements.
These risks and uncertainties include, but are not limited
to:
•
|
the impact of the
COVID-19 pandemic or future pandemics on our business, including
the potential work stoppages, lockdowns, shelter-in-place, or
restricted movement guidelines, service delays and lower consumer
and commercial activity;
|
•
|
our ability to compete
effectively;
|
•
|
our ability to maintain
key agent or biller relationships, or a reduction in business or
transaction volume from these relationships, including with our
largest agent, Walmart, through its introduction of additional
competing white label money transfer products or
otherwise;
|
•
|
our ability to continue
to grow our Digital Channel, including through our
direct-to-consumer digital business, MoneyGram Online;
|
•
|
a security or privacy
breach in systems, networks or databases on which we
rely;
|
•
|
current and proposed
regulations addressing consumer privacy and data use and
security;
|
•
|
our ability to manage
fraud risks from consumers or agents;
|
•
|
the ability of us and
our agents to comply with U.S. and international laws and
regulations;
|
•
|
litigation and
regulatory proceedings involving us or our agents and other
commercial relationships, which could result in material
settlements, fines or penalties, revocation of required licenses or
registrations, termination of contracts, other administrative
actions or lawsuits and negative publicity;
|
•
|
disruptions to our
computer systems and data centers and our ability to effectively
operate and adapt our technology;
|
•
|
the ability of us and
our agents to maintain adequate banking relationships;
|
•
|
our ability to
successfully develop and timely introduce new and enhanced products
and services and our investments in new products, services or
infrastructure changes;
|
•
|
our high degree of
leverage and substantial debt service obligations, significant debt
covenant requirements and our ability to comply with such
requirements;
|
•
|
our below
investment-grade credit rating;
|
•
|
our ability to maintain
sufficient capital;
|
•
|
weakness in economic
conditions, including recession and inflation, in both the U.S. and
global markets;
|
•
|
the financial health of
certain European countries or the secession of a country from the
European Union;
|
•
|
a significant change,
material slow down or complete disruption of international
migration patterns;
|
•
|
our ability to manage
risks associated with our international sales and operations,
including exchange rates among currencies;
|
•
|
our offering of money
transfer services through agents in regions that are politically
volatile or, in a limited number of cases, that may be subject to
certain OFAC restrictions;
|
•
|
major bank failure or
sustained financial market illiquidity, or illiquidity at our
clearing, cash management and custodial financial
institutions;
|
•
|
changes in tax laws or
unfavorable outcomes of tax positions we take, or a failure by us
to establish adequate reserves for tax events;
|
•
|
our ability to manage
credit risks from our agents and official check financial
institution customers;
|
•
|
our ability to
adequately protect our brand and intellectual property rights and
to avoid infringing on the rights of others;
|
•
|
our ability to manage
risks related to the operation of retail locations and the
acquisition or start-up of businesses;
|
•
|
any restructuring
actions and cost reduction initiatives that we undertake may not
deliver the expected results and these actions may adversely affect
our business;
|
•
|
our capital
structure;
|
•
|
risks relating to the
proposed Merger (as defined in the form 8-K filed on February 15,
2022), including the possibility that the consummation of the
Merger could be delayed or not completed, and the effect of
announcement or pendency of the Merger on our business;
and
|
•
|
the risks and
uncertainties described in the "Risk Factors" and "Management's
Discussion and Analysis of Financial Condition and Results of
Operations" sections of MoneyGram's public period reports filed
with the U.S. Securities and Exchange Commission (the SEC),
including MoneyGram's annual report on Form 10-K for the year ended
December 31, 2021, and subsequent quarterly reports on Form
10-Q.
|
Additional information concerning factors that could cause
actual results to differ materially from those in the
forward-looking statements is contained from time to time in
MoneyGram's SEC filings. MoneyGram's SEC filings may be obtained by
contacting MoneyGram, through MoneyGram's web site at
ir.moneygram.com or through the SEC's Electronic Data Gathering and
Analysis Retrieval System ("EDGAR") at www.sec.gov. MoneyGram
undertakes no obligation to publicly update or revise any
forward-looking statement.
Non-GAAP Measures
In addition to results presented in accordance with accounting
principles generally accepted in the
United States (GAAP), this news release and related tables
include certain non-GAAP financial measures, including a
presentation of EBITDA (earnings before interest, taxes,
depreciation and amortization, including agent signing bonus
amortization), Adjusted EBITDA (EBITDA adjusted for certain
significant items), Adjusted EBITDA margin, Adjusted Free Cash Flow
(Adjusted EBITDA less cash interest, cash taxes and cash payments
for capital expenditures and agent signing bonuses), constant
currency measures (which assume that amounts denominated in foreign
currencies are translated to the U.S. dollar at rates consistent
with those in the prior year), diluted adjusted income (loss) per
share and adjusted net income. In addition, we present gross profit
for our two reporting segments. The following tables include a full
reconciliation of non-GAAP financial measures to the related GAAP
financial measures. The equivalent GAAP financial measures for
projected results are not provided, and projected results do not
reflect the potential impact of certain non-GAAP adjustments, which
include (but in future periods, may not be limited to) stock-based,
contingent and incentive compensation costs; compliance enhancement
program costs; direct monitor costs; legal and contingent matter
costs; restructuring and reorganization costs; currency changes;
and the tax effect of such items. We cannot reliably predict or
estimate if and when these types of costs, adjustments or changes
may occur or their impact to our financial statements. Accordingly,
a reconciliation of the non-GAAP financial measures to the
equivalent GAAP financial measures for projected results is not
available.
We believe that these non-GAAP financial measures provide useful
information to investors because they are an indicator of the
strength and performance of ongoing business operations. These
calculations are commonly used as a basis for investors, analysts
and other interested parties to evaluate and compare the operating
performance and value of companies within our industry. Finally,
EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Free Cash
Flow, constant currency, diluted adjusted income (loss) per share
and adjusted net income (loss) figures are financial and
performance measures used by management in reviewing results of
operations, forecasting, allocating resources or establishing
employee incentive programs. Although MoneyGram believes the above
non-GAAP financial measures enhance investors' understanding of its
business and performance, these non-GAAP financial measures should
not be considered in isolation or as substitutes for the
accompanying GAAP financial measures.
Description of Tables
Table One
|
-
|
Condensed Consolidated
Statements of Operations
|
Table Two
|
-
|
Segment
Results
|
Table Three
|
-
|
Reconciliation of
Certain Non-GAAP Measures to Relevant GAAP Measures -
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free
Cash
Flow
|
Table Four
|
-
|
Reconciliation of
Certain Non-GAAP Measures to Relevant GAAP Measures -
Adjusted Net Income and Adjusted Diluted EPS
|
Table Five
|
-
|
Condensed Consolidated
Balance Sheets
|
Table Six
|
-
|
Condensed Consolidated
Statements of Cash Flows
|
CONTACTS
|
|
|
Investor
Relations:
|
|
Media
Relations:
|
214-979-1400
|
|
Sydney
Schoolfield
|
InvestorRelations@moneygram.com
|
|
media@moneygram.com
|
TABLE
ONE
|
MONEYGRAM
INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
(Amounts in
millions, except percentages and
per share
data)
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
REVENUE
|
|
|
|
|
|
|
|
|
Fee and other
revenue
|
|
$
319.1
|
|
$
317.7
|
|
$ 949.1
|
|
$ 953.1
|
Investment
revenue
|
|
11.7
|
|
1.9
|
|
18.9
|
|
5.9
|
Total
revenue
|
|
330.8
|
|
319.6
|
|
968.0
|
|
959.0
|
|
|
|
|
|
|
|
|
|
Total revenue change,
constant currency
|
|
9 %
|
|
(2) %
|
|
5 %
|
|
4 %
|
|
|
|
|
|
|
|
|
|
COST OF
REVENUE
|
|
|
|
|
|
|
|
|
Commissions and other
fee expense
|
|
153.7
|
|
154.6
|
|
458.9
|
|
465.8
|
Investment commissions
expense
|
|
7.2
|
|
0.3
|
|
10.0
|
|
0.7
|
Direct transaction
expense
|
|
13.7
|
|
15.6
|
|
39.8
|
|
47.0
|
Total cost of
revenue
|
|
174.6
|
|
170.5
|
|
508.7
|
|
513.5
|
GROSS
PROFIT
|
|
156.2
|
|
149.1
|
|
459.3
|
|
445.5
|
OPERATING
EXPENSES
|
|
|
|
|
|
|
|
|
Compensation and
benefits
|
|
55.8
|
|
53.8
|
|
171.6
|
|
175.0
|
Transaction and
operations support
|
|
48.9
|
|
39.1
|
|
147.3
|
|
122.8
|
Occupancy, equipment
and supplies
|
|
14.7
|
|
15.3
|
|
44.3
|
|
47.1
|
Depreciation and
amortization
|
|
13.7
|
|
14.1
|
|
38.0
|
|
43.5
|
Total operating
expenses
|
|
133.1
|
|
122.3
|
|
401.2
|
|
388.4
|
OPERATING
INCOME
|
|
23.1
|
|
26.8
|
|
58.1
|
|
57.1
|
Other
expenses
|
|
|
|
|
|
|
|
|
Interest
expense
|
|
12.2
|
|
13.0
|
|
35.2
|
|
57.8
|
Loss on early
extinguishment of debt
|
|
—
|
|
33.6
|
|
—
|
|
43.9
|
Other non-operating
expense
|
|
0.8
|
|
1.0
|
|
2.8
|
|
2.8
|
Total other
expenses
|
|
13.0
|
|
47.6
|
|
38.0
|
|
104.5
|
Income (loss) before
income taxes
|
|
10.1
|
|
(20.8)
|
|
20.1
|
|
(47.4)
|
Income tax expense
(benefit)
|
|
5.9
|
|
(5.2)
|
|
7.7
|
|
(5.3)
|
NET INCOME
(LOSS)
|
|
$
4.2
|
|
$
(15.6)
|
|
$ 12.4
|
|
$ (42.1)
|
|
|
|
|
|
|
|
|
|
EARNINGS (LOSS) PER
COMMON SHARE
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.04
|
|
$ (0.16)
|
|
$ 0.13
|
|
$ (0.48)
|
Diluted
|
|
$
0.04
|
|
$ (0.16)
|
|
$ 0.12
|
|
$ (0.48)
|
|
|
|
|
|
|
|
|
|
Weighted-average
outstanding common shares and
equivalents used in computing earnings (loss)
per share
|
|
|
|
|
|
|
|
|
Basic
|
|
96.6
|
|
96.0
|
|
96.3
|
|
87.7
|
Diluted
|
|
100.1
|
|
96.0
|
|
100.0
|
|
87.7
|
TABLE
TWO
|
MONEYGRAM
INTERNATIONAL, INC.
|
SEGMENT
RESULTS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
Global Funds
Transfer
|
|
|
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Money transfer
revenue
|
|
$
299.1
|
|
$
296.2
|
|
$
886.9
|
|
$ 887.0
|
Bill payment
revenue
|
|
8.9
|
|
9.8
|
|
26.8
|
|
30.5
|
Total
revenue
|
|
308.0
|
|
306.0
|
|
913.7
|
|
917.5
|
|
|
|
|
|
|
|
|
|
Cost of
revenue
|
|
167.5
|
|
170.2
|
|
498.7
|
|
512.8
|
Gross
profit
|
|
$
140.5
|
|
$
135.8
|
|
$
415.0
|
|
$ 404.7
|
|
|
|
|
|
|
|
|
|
Money transfer revenue
change, constant currency
|
|
7 %
|
|
(2) %
|
|
5 %
|
|
7 %
|
|
|
|
|
|
|
|
|
|
Financial Paper
Products
|
|
|
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Money order
revenue
|
|
$
11.1
|
|
$
10.0
|
|
$ 32.2
|
|
$ 31.0
|
Official check
revenue
|
|
11.7
|
|
3.6
|
|
22.1
|
|
10.5
|
Total
revenue
|
|
22.8
|
|
13.6
|
|
54.3
|
|
41.5
|
|
|
|
|
|
|
|
|
|
Investment commissions
expense
|
|
7.1
|
|
0.3
|
|
10.0
|
|
0.7
|
Gross profit
(1)
|
|
$
15.7
|
|
$
13.3
|
|
$ 44.3
|
|
$ 40.8
|
|
(1) In periods of
extremely low interest rates, it is possible for commissions to be
close to zero, resulting in abnormally high gross
margin.
|
TABLE
THREE
|
MONEYGRAM
INTERNATIONAL, INC.
|
RECONCILIATION OF
CERTAIN NON-GAAP MEASURES TO RELEVANT GAAP MEASURES
|
EBITDA, ADJUSTED
EBITDA, ADJUSTED EBITDA MARGIN AND ADJUSTED FREE CASH
FLOW
|
(Unaudited)
|
|
|
|
|
|
|
|
(Amounts in
millions, except percentages)
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Income (loss) before
income taxes
|
|
$ 10.1
|
|
$
(20.8)
|
|
$ 20.1
|
|
$
(47.4)
|
Interest
expense
|
|
12.2
|
|
13.0
|
|
35.2
|
|
57.8
|
Depreciation and
amortization
|
|
13.7
|
|
14.1
|
|
38.0
|
|
43.5
|
Signing bonus
amortization
|
|
13.1
|
|
13.8
|
|
40.5
|
|
42.8
|
EBITDA
|
|
49.1
|
|
20.1
|
|
133.8
|
|
96.7
|
|
|
|
|
|
|
|
|
|
Significant items
impacting EBITDA:
|
|
|
|
|
|
|
|
|
Stock-based,
contingent, incentive compensation and other
|
|
3.5
|
|
1.6
|
|
11.7
|
|
4.9
|
Merger-related
costs
|
|
1.5
|
|
—
|
|
6.3
|
|
—
|
Legal and contingent
matters
|
|
0.4
|
|
0.1
|
|
1.7
|
|
0.1
|
Severance and related
costs
|
|
0.3
|
|
—
|
|
1.3
|
|
0.2
|
Loss on early
extinguishment of debt
|
|
—
|
|
33.6
|
|
—
|
|
43.9
|
Compliance enhancement
program
|
|
—
|
|
0.9
|
|
—
|
|
2.2
|
Restructuring and
reorganization costs
|
|
—
|
|
0.2
|
|
(1.0)
|
|
8.3
|
Direct monitor
costs
|
|
—
|
|
—
|
|
—
|
|
4.9
|
Adjusted
EBITDA
|
|
$ 54.8
|
|
$ 56.5
|
|
$
153.8
|
|
$
161.2
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA margin
(1)
|
|
16.6 %
|
|
17.7 %
|
|
15.9 %
|
|
16.8 %
|
|
|
|
|
|
|
|
|
|
Adjusted EBITDA
change, constant
currency adjusted
|
|
7 %
|
|
(21) %
|
|
3 %
|
|
(15) %
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
$ 54.8
|
|
$ 56.5
|
|
$
153.8
|
|
$
161.2
|
Cash payments for
interest
|
|
(17.0)
|
|
(7.6)
|
|
(39.5)
|
|
(46.6)
|
Cash (payments)
refunds for taxes, net
|
|
(2.7)
|
|
(1.7)
|
|
(9.0)
|
|
(0.5)
|
Cash payments for
capital expenditures
|
|
(17.8)
|
|
(10.2)
|
|
(40.2)
|
|
(31.4)
|
Cash payments for
agent signing bonuses
|
|
(1.3)
|
|
(3.5)
|
|
(22.9)
|
|
(26.2)
|
Adjusted Free Cash
Flow
|
|
$ 16.0
|
|
$ 33.5
|
|
$ 42.2
|
|
$ 56.5
|
|
|
|
|
|
|
|
|
|
(1) Adjusted EBITDA
margin is calculated as Adjusted EBITDA divided by total
revenue.
|
TABLE
FOUR
|
MONEYGRAM
INTERNATIONAL, INC.
|
RECONCILIATION OF
CERTAIN NON-GAAP MEASURES TO RELEVANT GAAP MEASURES
|
ADJUSTED NET INCOME
AND ADJUSTED DILUTED EPS
|
(Unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
Nine Months
Ended
September 30,
|
(Amounts in
millions, except per share data)
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
4.2
|
|
$
(15.6)
|
|
$
12.4
|
|
$
(42.1)
|
Total adjustments
(1)
|
|
5.7
|
|
36.4
|
|
20.0
|
|
64.5
|
Tax impacts of
adjustments (2)
|
|
(1.7)
|
|
(8.4)
|
|
(5.0)
|
|
(14.9)
|
Valuation allowance
(3)
|
|
2.5
|
|
—
|
|
1.4
|
|
1.0
|
Adjusted net
income
|
|
$
10.7
|
|
$
12.4
|
|
$
28.8
|
|
$
8.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings (loss)
per common share
|
|
$
0.04
|
|
$
(0.16)
|
|
$
0.12
|
|
$
(0.48)
|
|
|
|
|
|
|
|
|
|
Diluted adjustments per
common share
|
|
0.07
|
|
0.29
|
|
0.17
|
|
0.58
|
|
|
|
|
|
|
|
|
|
Diluted adjusted
earnings (loss) per common share
|
|
$
0.11
|
|
$
0.13
|
|
$
0.29
|
|
$
0.10
|
|
|
|
|
|
|
|
|
|
Diluted
weighted-average outstanding common shares
and
equivalents
|
|
100.1
|
|
96.0
|
|
100.0
|
|
87.7
|
|
|
|
|
|
|
|
|
|
(1) See summary of
adjustments in Table Three - EBITDA, Adjusted EBITDA, Adjusted
EBITDA Margin and Adjusted Free Cash Flow.
|
(2) Tax rates used to
calculate the tax expense impact are based on the nature and
jurisdiction of each adjustment.
|
(3) Valuation allowance
recorded for deferred tax assets existing at the beginning of the
year.
|
TABLE
FIVE
|
MONEYGRAM
INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
|
|
|
|
|
(Amounts in
millions, except share data)
|
|
September 30,
2022
|
|
December 31,
2021
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
|
$
126.7
|
|
$
155.2
|
Settlement
assets
|
|
3,543.5
|
|
3,591.4
|
Property and equipment,
net
|
|
135.0
|
|
133.9
|
Goodwill
|
|
442.2
|
|
442.2
|
Right-of-use
assets
|
|
42.8
|
|
52.6
|
Other assets
|
|
98.9
|
|
101.2
|
Total
assets
|
|
$
4,389.1
|
|
$
4,476.5
|
LIABILITIES
|
|
|
|
|
Payment service
obligations
|
|
$
3,543.5
|
|
$
3,591.4
|
Debt, net
|
|
785.7
|
|
786.7
|
Pension and other
postretirement benefits
|
|
62.5
|
|
67.1
|
Lease
liabilities
|
|
45.8
|
|
56.3
|
Accounts payable and
other liabilities
|
|
138.0
|
|
160.0
|
Total
liabilities
|
|
4,575.5
|
|
4,661.5
|
STOCKHOLDERS'
DEFICIT
|
|
|
|
|
Common stock, $0.01 par
value, 162,500,000 shares authorized,
98,825,387 and 92,305,011 shares issued,
96,528,940 and 90,725,982
shares outstanding at September 30, 2022 and
December 31, 2021,
respectively
|
|
1.0
|
|
0.9
|
Additional paid-in
capital
|
|
1,411.6
|
|
1,400.3
|
Retained
loss
|
|
(1,501.1)
|
|
(1,513.4)
|
Accumulated other
comprehensive loss
|
|
(80.3)
|
|
(62.8)
|
Treasury stock:
2,296,447 and 1,579,029 shares at September 30, 2022
and December 31, 2021, respectively
|
|
(17.6)
|
|
(10.0)
|
Total stockholders'
deficit
|
|
(186.4)
|
|
(185.0)
|
Total liabilities and
stockholders' deficit
|
|
$
4,389.1
|
|
$
4,476.5
|
TABLE
SIX
|
MONEYGRAM
INTERNATIONAL, INC.
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
|
|
|
|
|
Nine Months Ended
September 30,
|
(Amounts in
millions)
|
|
2022
|
|
2021
|
CASH FLOWS FROM
OPERATING ACTIVITIES:
|
|
|
|
|
Net income
(loss)
|
|
$
12.4
|
|
$
(42.1)
|
Adjustments to
reconcile net income (loss) to net cash provided by (used in)
operating activities:
|
|
13.2
|
|
41.3
|
Net cash provided by
(used in) operating activities
|
|
25.6
|
|
(0.8)
|
CASH FLOWS FROM
INVESTING ACTIVITIES:
|
|
|
|
|
Payments for capital
expenditures
|
|
(40.2)
|
|
(31.4)
|
Proceeds from
available-for-sale investments
|
|
0.5
|
|
0.6
|
Purchases of
interest-bearing investments
|
|
(544.1)
|
|
(568.0)
|
Proceeds from
interest-bearing investments
|
|
543.0
|
|
566.6
|
Purchase of equity
investments
|
|
(4.0)
|
|
—
|
Net cash used in
investing activities
|
|
(44.8)
|
|
(32.2)
|
CASH FLOWS FROM
FINANCING ACTIVITIES:
|
|
|
|
|
Principal payments on
debt
|
|
(3.0)
|
|
(889.9)
|
Prepayment call
premium
|
|
—
|
|
(16.5)
|
Change in receivables,
net
|
|
(327.4)
|
|
14.3
|
Change in payment
service obligations
|
|
(47.9)
|
|
(96.9)
|
Net proceeds from
stock issuance
|
|
—
|
|
97.3
|
Proceeds from issuance
of debt
|
|
—
|
|
807.8
|
Transaction costs for
issuance and amendment of debt
|
|
—
|
|
(6.5)
|
Payments to tax
authorities for stock-based compensation
|
|
(7.6)
|
|
(3.7)
|
Net cash used in
financing activities
|
|
(385.9)
|
|
(94.1)
|
NET CHANGE IN CASH
AND CASH EQUIVALENTS AND SETTLEMENT
CASH AND CASH EQUIVALENTS
|
|
(405.1)
|
|
(127.1)
|
CASH AND CASH
EQUIVALENTS AND SETTLEMENT CASH AND CASH
EQUIVALENTS—Beginning of year
|
|
2,050.9
|
|
2,079.3
|
CASH AND CASH
EQUIVALENTS AND SETTLEMENT CASH AND CASH
EQUIVALENTS—End of period
|
|
$
1,645.8
|
|
$
1,952.2
|
|
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SOURCE MoneyGram