•  MGO delivered a record quarter for customers, transactions and revenue, exceeding its all-time high achieved in the fourth quarter of 2020

°  Year-over-year, MGO delivered 119% revenue growth and 102% transaction growth on the strength of new app downloads and customer retention rates

°  Year-over-year, cross-border online revenue grew an impressive 131% and transactions grew an equally impressive 130%

•  Total digital, which includes MGO, reported year-over-year transaction growth of 86% in the first quarter

°  Digital revenue reached a new record of $60.4 million for the first quarter representing a 77% year-over-year revenue growth rate

°  Digital partnerships delivered transaction growth of 47% year-over-year

°  Payouts through account deposit, Visa Direct and mobile wallets increased 128% year-over-year

•  Digital transactions accounted for 32% of all money transfer transactions at the end of March

•  Total revenue of $310.1 million increased 7% on a reported basis or an increase of 3% on a constant currency basis

°  Money transfer revenue was $285.4 million, up 12%, or 8% on a constant currency basis, driven by double-digit transaction growth

°  Investment revenue was $2.0 million for the quarter representing a decline of $8.1 million due to lower prevailing interest rates

•  Gross Profit was $144.8 million, an increase of $8.3 million driven by strength of money transfer revenue and offset by the decline in investment income

•  Total operating expenses were $136.4 million, an increase of $13.0 million or 11% including:

°  Transaction and Operations Support expenses increased $5.4 million or 14% which were driven by:

▪  The elimination of the $12.1 million net benefit from Ripple market development fees generated in the first quarter of 2020 due to the halting of transactions under the commercial agreement with Ripple effective early December 2020

°  Compensation and Benefits were $62.2 million, an increase of $8.8 million primarily driven by severance expenses

•  Operating Income was $8.4 million, a decrease of 36% driven by the elimination of Ripple market development fees, lower investment income and severance costs

•  Net loss of $15.4 million for the quarter representing an improvement of $6.1 million 

•  Diluted loss per share was $0.19 and diluted adjusted loss per share was $0.06 

•  Adjusted EBITDA decreased 3% to $49.9 million, or 11% on a constant currency basis driven by the reduction of $17.4 million related to the net benefit of Ripple market development fees and reduced investment income due to lower prevailing interest rates

•  Cash and cash equivalents was $152.8 million at quarter-end compared to $131.0 million as of the end of the first quarter 2020

•  First quarter interest expense was $22.3 million and capital expenditures were $11.2 million

Participant Dial-In Numbers:

U.S.:

1-800-239-9838

International:

1-929-477-0402

Webcast:

public.viavid.com/index.php?id=144463

Replay:

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

Replay ID:

7162032

Replay is available through May 14, 2021, 11:59 p.m. ET

•  the impact of the COVID-19 pandemic or future pandemics 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 and other commercial relationships to comply with U.S. and international laws and regulations;

•  litigation or investigations involving us or our agents and other commercial relationships, which could result in material settlements, fines or penalties, termination of contracts, other administrative actions or lawsuits and negative publicity;

•  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 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, 2020, and subsequent quarterly reports on Form 10-Q.

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 Loss 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

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 March 31,

2021 vs

2021

2020

2020

REVENUE

Fee and other revenue

$

308.1

$

280.8

$

27.3

Investment revenue

2.0

10.1

(8.1)

Total revenue

310.1

290.9

19.2

Total revenue change, as reported

7

%

(8)

%

Total revenue change, constant currency

3

%

(7)

%

COST OF REVENUE

Commissions and other fee expense

149.9

143.2

6.7

Investment commissions expense

0.2

3.0

(2.8)

Direct transaction expense

15.2

8.2

7.0

Total cost of revenue

165.3

154.4

10.9

GROSS PROFIT

144.8

136.5

8.3

OPERATING EXPENSES

Compensation and benefits

62.2

53.4

8.8

Transaction and operations support ⁽¹⁾ 

43.4

38.0

5.4

Occupancy, equipment and supplies

15.5

14.9

0.6

Depreciation and amortization

15.3

17.1

(1.8)

Total operating expenses

136.4

123.4

13.0

OPERATING INCOME

8.4

13.1

(4.7)

Other expenses

Interest expense

22.3

23.8

(1.5)

Other non-operating expense

1.0

1.1

(0.1)

Total other expenses

23.3

24.9

(1.6)

Loss before income taxes

(14.9)

(11.8)

(3.1)

Income tax expense

0.5

9.7

(9.2)

NET LOSS

$

(15.4)

$

(21.5)

$

6.1

Basic and diluted loss per common share

$

(0.19)

$

(0.28)

$

0.09

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

79.6

77.4

2.2

(1) Three months ended March 31, 2020, includes Ripple market development fees of $16.6 million 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,

2021 vs

2021

2020

2020

Money transfer revenue

$

285.4

$

255.9

$

29.5

Bill payment revenue

10.8

13.4

(2.6)

Total revenue

$

296.2

$

269.3

$

26.9

Commissions and other fee and direct transaction expenses

$

165.1

$

151.3

$

13.8

Gross profit

$

131.1

$

118.0

$

13.1

Operating income

$

6.0

$

6.7

$

(0.7)

Operating margin

2.0

%

2.5

%

Money transfer revenue change, as reported

12

%

(6)

%

Money transfer revenue change, constant currency

8

%

(5)

%

Financial Paper Products

(Amounts in millions, except percentages)

Three Months Ended March 31,

2021 vs

2021

2020

2020

Money order revenue

$

10.4

$

12.1

$

(1.7)

Official check revenue

3.5

9.5

(6.0)

Total revenue

$

13.9

$

21.6

$

(7.7)

Investment commissions expense

$

0.2

$

3.1

$

(2.9)

Gross profit

$

13.7

$

18.5

$

(4.8)

Operating income

$

2.5

$

7.0

$

(4.5)

Operating margin

18.0

%

32.4

%

TABLE THREE

MONEYGRAM INTERNATIONAL, INC.

SEGMENT RECONCILIATIONS

(Unaudited)

Global Funds Transfer

(Amounts in millions, except percentages)

Three Months Ended March 31,

2021 vs

2021

2020

2020

Revenue (as reported)

$

296.2

$

269.3

$

26.9

Operating income (as reported)

$

6.0

$

6.7

$

(0.7)

Legal and contingent matters

—

0.3

(0.3)

Restructuring and reorganization costs

5.7

0.5

5.2

Compliance enhancement program

0.9

1.6

(0.7)

Direct monitor costs

3.8

4.8

(1.0)

Stock-based compensation expense

1.7

1.8

(0.1)

Total adjustments

12.1

9.0

3.1

Adjusted operating income

$

18.1

$

15.7

$

2.4

Operating margin (as reported)

2.0

%

2.5

%

Total adjustments

4.1

%

3.3

%

Adjusted operating margin

6.1

%

5.8

%

Financial Paper Products

(Amounts in millions, except percentages)

Three Months Ended March 31,

2021 vs

2021

2020

2020

Revenue (as reported)

$

13.9

$

21.6

$

(7.7)

Operating income (as reported)

$

2.5

$

7.0

$

(4.5)

Restructuring and reorganization costs

0.2

—

0.2

Compliance enhancement program

0.2

0.4

(0.2)

Stock-based compensation expense

0.1

0.2

(0.1)

Total adjustments

0.5

0.6

(0.1)

Adjusted operating income

$

3.0

$

7.6

$

(4.6)

Operating margin (as reported)

18.0

%

32.4

%

Total adjustments

3.6

%

2.8

%

Adjusted operating margin

21.6

%

35.2

%

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,

2021 vs

2021

2020

2020

Loss before income taxes

$

(14.9)

$

(11.8)

$

(3.1)

Interest expense

22.3

23.8

(1.5)

Depreciation and amortization

15.3

17.1

(1.8)

Signing bonus amortization

14.3

12.5

1.8

EBITDA

37.0

41.6

(4.6)

Significant items impacting EBITDA:

Restructuring and reorganization costs

5.9

0.5

5.4

Direct monitor costs

3.8

4.8

(1.0)

Stock-based, contingent and incentive compensation

1.8

2.0

(0.2)

Compliance enhancement program

1.1

2.0

(0.9)

Severance and related costs

0.2

0.2

—

Legal and contingent matters

0.1

0.4

(0.3)

Adjusted EBITDA

$

49.9

$

51.5

$

(1.6)

Adjusted EBITDA margin ⁽¹⁾

16.1

%

17.7

%

(1.6)

%

Adjusted EBITDA change, as reported

(3)

%

Adjusted EBITDA change, constant
    currency adjusted

(11)

%

Adjusted EBITDA

$

49.9

$

51.5

$

(1.6)

Cash payments for interest

(11.9)

(17.6)

5.7

Cash payments for taxes, net of refunds

2.7

(2.1)

4.8

Cash payments for capital expenditures

(11.2)

(10.1)

(1.1)

Cash payments for agent signing bonuses

(13.0)

(25.0)

12.0

Adjusted Free Cash Flow

$

16.5

$

(3.3)

$

19.8

(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 LOSS AND ADJUSTED DILUTED EPS

(Unaudited)

Three Months Ended March 31,

(Amounts in millions, except per share data)

2021

2020

Net loss

$

(15.4)

$

(21.5)

Total adjustments ⁽¹⁾

12.9

9.9

Tax impacts of adjustments ⁽²⁾

(3.0)

(2.3)

Valuation allowance ⁽³⁾

1.0

10.1

Adjusted net loss

$

(4.5)

$

(3.8)

Diluted earnings loss per common share

$

(0.19)

$

(0.28)

Diluted adjustments per common share

0.13

0.23

Diluted adjusted loss per common share

$

(0.06)

$

(0.05)

Diluted weighted-average outstanding common shares

    and equivalents

79.6

77.4

(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) Valuation allowance recorded for deferred tax assets existing at the beginning of the year.

TABLE SIX

MONEYGRAM INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Amounts in millions, except share data)

March 31, 2021

December 31, 2020

ASSETS

Cash and cash equivalents

$

152.8

$

196.1

Settlement assets

3,667.0

3,702.9

Property and equipment, net

142.7

148.1

Goodwill

442.2

442.2

Right-of-use assets

54.5

55.1

Other assets

128.4

129.7

Total assets

$

4,587.6

$

4,674.1

LIABILITIES

Payment service obligations

$

3,667.0

$

3,702.9

Debt, net

858.8

857.8

Pension and other postretirement benefits

75.0

74.5

Lease liabilities

58.0

59.1

Accounts payable and other liabilities

188.0

216.8

Total liabilities

4,846.8

4,911.1

STOCKHOLDERS' DEFICIT

Common stock, $0.01 par value, 162,500,000 shares authorized, 80,273,419 and 72,530,770 shares issued, 79,741,398 and 72,517,539 shares outstanding at March 31, 2021 and December 31, 2020, respectively

0.8

0.7

Additional paid-in capital

1,297.8

1,296.0

Retained loss

(1,490.8)

(1,475.3)

Accumulated other comprehensive loss

(63.4)

(58.4)

Treasury stock: 532,021 and 13,231 shares at March 31, 2021 and December 31, 2020, respectively

(3.6)

—

Total stockholders' deficit

(259.2)

(237.0)

Total liabilities and stockholders' deficit

$

4,587.6

$

4,674.1

TABLE SEVEN

MONEYGRAM INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Three Months Ended March 31,

(Amounts in millions)

2021

2020

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss

$

(15.4)

$

(21.5)

Adjustments to reconcile net loss to net cash used in operating activities:

(11.5)

(4.9)

Net cash used in operating activities

(26.9)

(26.4)

CASH FLOWS FROM INVESTING ACTIVITIES:

Payments for capital expenditures

(11.2)

(10.1)

Net cash used in investing activities

(11.2)

(10.1)

CASH FLOWS FROM FINANCING ACTIVITIES:

Principal payments on debt

(1.6)

(1.6)

Proceeds from revolving credit facility

—

23.0

Payments to tax authorities for stock-based compensation

(3.6)

(0.7)

Net cash (used in) provided by financing activities

(5.2)

20.7

NET CHANGE IN CASH AND CASH EQUIVALENTS

(43.3)

(15.8)

CASH AND CASH EQUIVALENTS—Beginning of year

196.1

146.8

CASH AND CASH EQUIVALENTS—End of period

$

152.8

$

131.0