MoneyGram International Reports Fourth Quarter and Full Year 2018 Financial Results
Fourth Quarter Financial Results
- Total revenue of
$345.8 million declined 15% on a reported basis and 14% on a constant currency basis compared to fourth quarter 2017. - Money transfer revenue was
$302.9 million , representing a decrease of 17% on a reported basis and a decrease of 16% on a constant currency basis as compared to fourth quarter 2017. Revenue results include the impact of de-risking the business through transaction and corridor specific compliance controls implemented during the year. - Total digital revenue remained strong at 16% of money transfer revenue. Higher compliance standards, introductory pricing and an ongoing decline in the US-US corridor contributed to a 7% decrease in online revenue in the quarter as compared to fourth quarter 2017. Online transaction growth, excluding the US-US corridor, grew by more than 25%.
- Investment revenue was
$14.0 million , an increase of$5.2 million on a year over year basis due to higher yields in 2018. - Net loss was
$12.5 million compared to net loss of$52.5 million for fourth quarter 2017. EBITDA was$42.8 million , an increase of$67.1 million as compared to the year-ago period. The prior year period included an$85.0 million accrual related to the DPA matter. The quarter also includes: $6.4 million of restructuring and reorganization costs.- An
$11.0 million income tax expense compared to a$15.7 million income tax benefit in the year-ago period. - Adjusted EBITDA was
$60.0 million and decreased by$11.3 million compared to fourth quarter 2017. Adjusted EBITDA margin was 17.4% and remained relatively flat when compared to fourth quarter 2017. - Diluted loss per share was
$0.19 compared to diluted loss per share of$0.83 in the fourth quarter 2017. Adjusted diluted earnings per share was$0.01 . - Adjusted Free Cash Flow was
$21.1 million for the quarter, a decrease of$4.6 million .
Full Year 2018 Financial Results
- Total revenue of
$1,447.6 million declined 10% on a reported basis and 11% on a constant currency basis compared to 2017. - Online revenue grew 8% primarily from new customer acquisitions. Total digital represented 16% of total money transfer revenue, an increase of more than 100 basis points compared to the prior year.
- Net loss was
$24.0 million as compared to$29.8 million in 2017. EBITDA was$172.9 million and increased by$37.2 million when compared to 2017 primarily due to the$85.0 million accrual related to the DPA, which also impacted net loss. - Net loss and EBITDA included
$29.3 million of income in connection with the terminated merger with Ant Financial. - Adjusted EBITDA was
$245.9 million , an 11% decrease on a reported basis and 13% on a constant currency basis compared to 2017. - Adjusted Free Cash Flow was
$101.0 million , a decrease of$4.1 million from 2017.
"2018 was a pivotal year of building, modernizing, and de-risking as we accelerated our Digital Transformation efforts and re-baselined the business to lead in protecting consumers against fraud," said
He added: "We started the year with a limited online presence and ended the year with world-class capabilities in 24 countries. Our newly-updated app rivals that of any other fintech company, and we integrated with leading mobile wallet providers around the world. While revenue declined as a result of our planned actions to de-risk the business, thanks to the successful execution of cost-saving initiatives, we positioned the company to maintain Adjusted EBITDA margin and Adjusted Free Cash Flow."
Restructuring and Reorganization
In the first quarter of 2018, the company initiated a restructuring and reorganization program as part of its Digital Transformation initiative. The company incurred
Balance Sheet Highlights
The company ended 2018 with a cash and cash equivalent balance of
On
Full Year 2019 Outlook
For the full year 2019, the company is projecting revenue to decline approximately 2 to 4 percent on a constant currency basis and Adjusted EBITDA is expected to decline approximately 8 to 12 percent on a constant currency basis. As a result of the company's compliance changes implemented in 2018, the company anticipates the bulk of the revenue and Adjusted EBITDA decline to occur in the first half of the year. The company anticipates returning to full year growth for both revenue and Adjusted EBITDA, on a constant currency basis, in 2020.
"Looking forward, 2019 will be the Year of the Customer - the year to acquire, learn, and retain. The results of the customer experience initiatives launched last year will enable us to recapture growth, deliver on our vision to offer an exceptional experience with each transaction and continue to lead in compliance. As we capitalize on the strength of our digital & physical network we will provide consumers with the protection, choice and convenience they demand in this omnichannel environment," said Holmes.
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
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
Non-GAAP Measures
In addition to results presented in accordance with accounting principles generally accepted in
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
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 |
Table Eight |
- |
2018 Versus 2017 Excluding Asset-Backed Security Redemption |
Conference Call
Participant Dial-In Numbers: |
|
U.S.: |
1-888-221-3881 |
International: |
+1-646-828-8193 |
Webcast: |
|
Replay: |
1-844-512-2921 or 1-412-317-6671 |
Replay ID: |
2103949 |
Replay is available through Monday, February 18, 2019 |
About
MoneyGram is a global provider of innovative money transfer 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.
CONTACT:
Media Relations:
214-999-7687
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 |
2018 |
Twelve Months |
2018 |
||||||||||||||||||||
2018 |
2017 |
2017 |
2018 |
2017 |
2017 |
|||||||||||||||||||
REVENUE |
||||||||||||||||||||||||
Fee and other revenue |
$ |
331.8 |
$ |
399.4 |
$ |
(67.6) |
$ |
1,398.1 |
$ |
1,560.9 |
$ |
(162.8) |
||||||||||||
Investment revenue |
14.0 |
8.8 |
5.2 |
49.5 |
41.2 |
8.3 |
||||||||||||||||||
Total revenue |
345.8 |
408.2 |
(62.4) |
1,447.6 |
1,602.1 |
(154.5) |
||||||||||||||||||
Total revenue change, as reported |
(15) |
% |
(2) |
% |
(10) |
% |
(2) |
% |
||||||||||||||||
Total revenue change, constant currency |
(14) |
% |
(4) |
% |
(11) |
% |
(2) |
% |
||||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||||||
Total commissions and direct transaction expenses (1) |
176.6 |
202.1 |
(25.5) |
732.2 |
794.0 |
(61.8) |
||||||||||||||||||
Compensation and benefits (2) |
58.7 |
68.7 |
(10.0) |
259.8 |
271.8 |
(12.0) |
||||||||||||||||||
Transaction and operations support (1) (3) |
63.6 |
156.0 |
(92.4) |
298.8 |
380.5 |
(81.7) |
||||||||||||||||||
Occupancy, equipment and supplies |
14.6 |
17.1 |
(2.5) |
62.0 |
66.1 |
(4.1) |
||||||||||||||||||
Depreciation and amortization |
18.6 |
19.3 |
(0.7) |
76.3 |
75.1 |
1.2 |
||||||||||||||||||
Total operating expenses (2) |
332.1 |
463.2 |
(131.1) |
1,429.1 |
1,587.5 |
(158.4) |
||||||||||||||||||
OPERATING INCOME (LOSS) (2) |
13.7 |
(55.0) |
68.7 |
18.5 |
14.6 |
3.9 |
||||||||||||||||||
Other expenses |
||||||||||||||||||||||||
Interest expense |
13.8 |
11.7 |
2.1 |
53.6 |
45.3 |
8.3 |
||||||||||||||||||
Other non-operating expense (income) (2) |
1.4 |
1.5 |
(0.1) |
(24.2) |
5.9 |
(30.1) |
||||||||||||||||||
Total other expenses (2) |
15.2 |
13.2 |
2.0 |
29.4 |
51.2 |
(21.8) |
||||||||||||||||||
Loss before income taxes |
(1.5) |
(68.2) |
66.7 |
(10.9) |
(36.6) |
25.7 |
||||||||||||||||||
Income tax expense (benefit) |
11.0 |
(15.7) |
26.7 |
13.1 |
(6.8) |
19.9 |
||||||||||||||||||
NET LOSS |
$ |
(12.5) |
$ |
(52.5) |
$ |
40.0 |
$ |
(24.0) |
$ |
(29.8) |
$ |
5.8 |
||||||||||||
LOSS PER COMMON SHARE |
||||||||||||||||||||||||
Basic |
$ |
(0.19) |
$ |
(0.83) |
$ |
0.64 |
$ |
(0.37) |
$ |
(0.47) |
$ |
0.10 |
||||||||||||
Diluted |
$ |
(0.19) |
$ |
(0.83) |
$ |
0.64 |
$ |
(0.37) |
$ |
(0.47) |
$ |
0.10 |
||||||||||||
Weighted-average outstanding common shares and equivalents used in computing loss per share |
||||||||||||||||||||||||
Basic |
64.5 |
63.1 |
1.4 |
64.3 |
62.9 |
1.4 |
||||||||||||||||||
Diluted |
64.5 |
63.1 |
1.4 |
64.3 |
62.9 |
1.4 |
||||||||||||||||||
(1) 2017 financial information reflects the income statement presentation change outlined in Table 8 of Exhibit 99.1 that was furnished as part of the Company's Form 8-K dated May 7, 2018. |
||||||||||||||||||||||||
(2) 2017 financial information reflects the adoption of ASU 2017-07. |
||||||||||||||||||||||||
(3) Year-to-date 2018 includes an accrual of $40.0 million and 2017 quarter-to-date and year-to-date both include an accrual of $85.0 million related to the resolution of the DPA matter. |
TABLE TWO |
||||||||||||||||||||||||
MONEYGRAM INTERNATIONAL, INC. |
||||||||||||||||||||||||
SEGMENT RESULTS |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
Global Funds Transfer |
||||||||||||||||||||||||
(Amounts in millions, except percentages) |
Three Months |
2018 vs |
Twelve Months |
2018 vs |
||||||||||||||||||||
2018 |
2017 |
2017 |
2018 |
2017 |
2017 |
|||||||||||||||||||
Money transfer revenue |
$ |
302.9 |
$ |
366.4 |
$ |
(63.5) |
$ |
1,273.4 |
$ |
1,421.8 |
$ |
(148.4) |
||||||||||||
Bill payment revenue |
16.8 |
20.2 |
(3.4) |
74.5 |
86.3 |
(11.8) |
||||||||||||||||||
Total revenue |
$ |
319.7 |
$ |
386.6 |
$ |
(66.9) |
$ |
1,347.9 |
$ |
1,508.1 |
$ |
(160.2) |
||||||||||||
Commissions and direct transaction expenses (1) |
$ |
170.1 |
$ |
199.0 |
$ |
(28.9) |
$ |
711.6 |
$ |
784.0 |
$ |
(72.4) |
||||||||||||
Operating income (loss) |
$ |
6.7 |
$ |
(56.1) |
$ |
62.8 |
$ |
(5.9) |
$ |
4.9 |
$ |
(10.8) |
||||||||||||
Operating margin |
2.1 |
% |
(14.5) |
% |
(0.4) |
% |
0.3 |
% |
||||||||||||||||
Money transfer revenue change, as reported |
(17) |
% |
(1) |
% |
(10) |
% |
(2) |
% |
||||||||||||||||
Money transfer revenue change, constant currency |
(16) |
% |
(3) |
% |
(12) |
% |
(2) |
% |
||||||||||||||||
Financial Paper Products |
||||||||||||||||||||||||
(Amounts in millions, except percentages) |
Three Months |
2018 vs |
Twelve Months |
2018 vs |
||||||||||||||||||||
2018 |
2017 |
2017 |
2018 |
2017 |
2017 |
|||||||||||||||||||
Money order revenue |
$ |
13.7 |
$ |
13.0 |
$ |
0.7 |
$ |
55.3 |
$ |
55.0 |
$ |
0.3 |
||||||||||||
Official check revenue |
12.4 |
8.6 |
3.8 |
44.4 |
39.0 |
5.4 |
||||||||||||||||||
Total revenue |
$ |
26.1 |
$ |
21.6 |
$ |
4.5 |
$ |
99.7 |
$ |
94.0 |
$ |
5.7 |
||||||||||||
Total commissions expense |
$ |
6.5 |
$ |
3.1 |
$ |
3.4 |
$ |
20.6 |
$ |
10.0 |
$ |
10.6 |
||||||||||||
Operating income |
$ |
8.3 |
$ |
5.0 |
$ |
3.3 |
$ |
30.6 |
$ |
31.8 |
$ |
(1.2) |
||||||||||||
Operating margin |
31.8 |
% |
23.1 |
% |
30.7 |
% |
33.8 |
% |
||||||||||||||||
(1) 2017 financial information reflects the income statement presentation change outlined in Table 8 of Exhibit 99.1 that was furnished as part of the Company's Form 8-K dated May 7, 2018. |
TABLE THREE |
||||||||||||||||||||||||
MONEYGRAM INTERNATIONAL, INC. |
||||||||||||||||||||||||
SEGMENT RECONCILIATIONS |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
Global Funds Transfer |
||||||||||||||||||||||||
(Amounts in millions, except percentages) |
Three Months |
2018 |
Twelve Months |
2018 |
||||||||||||||||||||
2018 |
2017 |
2017 |
2018 |
2017 |
2017 |
|||||||||||||||||||
Revenue (as reported) |
$ |
319.7 |
$ |
386.6 |
$ |
(66.9) |
$ |
1,347.9 |
$ |
1,508.1 |
$ |
(160.2) |
||||||||||||
Adjusted operating income |
$ |
22.6 |
$ |
37.4 |
$ |
(14.8) |
$ |
90.9 |
$ |
127.7 |
$ |
(36.8) |
||||||||||||
Legal and contingent matters |
(2.2) |
(85.0) |
82.8 |
(44.3) |
(85.0) |
40.7 |
||||||||||||||||||
Restructuring and reorganization costs |
(6.2) |
— |
(6.2) |
(19.9) |
— |
(19.9) |
||||||||||||||||||
Compliance enhancement program |
(1.4) |
(0.8) |
(0.6) |
(10.1) |
(7.5) |
(2.6) |
||||||||||||||||||
Direct monitor costs |
(3.9) |
(3.4) |
(0.5) |
(11.3) |
(16.0) |
4.7 |
||||||||||||||||||
Stock-based compensation expense |
(2.2) |
(3.1) |
0.9 |
(11.2) |
(13.1) |
1.9 |
||||||||||||||||||
Severance and related costs |
— |
(1.2) |
1.2 |
— |
(1.2) |
1.2 |
||||||||||||||||||
Total adjustments |
(15.9) |
(93.5) |
77.6 |
(96.8) |
(122.8) |
26.0 |
||||||||||||||||||
Operating income (loss) (as reported) |
$ |
6.7 |
$ |
(56.1) |
$ |
62.8 |
$ |
(5.9) |
$ |
4.9 |
$ |
(10.8) |
||||||||||||
Adjusted operating margin |
7.1 |
% |
9.7 |
% |
6.7 |
% |
8.5 |
% |
||||||||||||||||
Total adjustments |
(5.0) |
% |
(24.2) |
% |
(7.2) |
% |
(8.1) |
% |
||||||||||||||||
Operating margin (as reported) |
2.1 |
% |
(14.5) |
% |
(0.4) |
% |
0.3 |
% |
||||||||||||||||
Financial Paper Products |
||||||||||||||||||||||||
(Amounts in millions, except percentages) |
Three Months |
2018 |
Twelve Months |
2018 |
||||||||||||||||||||
2018 |
2017 |
2017 |
2018 |
2017 |
2017 |
|||||||||||||||||||
Revenue (as reported) |
$ |
26.1 |
$ |
21.6 |
$ |
4.5 |
$ |
99.7 |
$ |
94.0 |
$ |
5.7 |
||||||||||||
Adjusted operating income |
$ |
9.1 |
$ |
5.8 |
$ |
3.3 |
$ |
34.6 |
$ |
34.7 |
$ |
(0.1) |
||||||||||||
Compliance enhancement program |
(0.6) |
(0.4) |
(0.2) |
(2.8) |
(1.5) |
(1.3) |
||||||||||||||||||
Stock-based compensation expense |
(0.2) |
(0.4) |
0.2 |
(1.2) |
(1.4) |
0.2 |
||||||||||||||||||
Total adjustments |
(0.8) |
(0.8) |
— |
(4.0) |
(2.9) |
(1.1) |
||||||||||||||||||
Operating income (as reported) |
$ |
8.3 |
$ |
5.0 |
$ |
3.3 |
$ |
30.6 |
$ |
31.8 |
$ |
(1.2) |
||||||||||||
Adjusted operating margin |
34.9 |
% |
26.9 |
% |
34.7 |
% |
36.9 |
% |
||||||||||||||||
Total adjustments |
(3.1) |
% |
(3.7) |
% |
(4.0) |
% |
(3.1) |
% |
||||||||||||||||
Operating margin (as reported) |
31.8 |
% |
23.1 |
% |
30.7 |
% |
33.8 |
% |
TABLE FOUR |
||||||||||||||||||||||||
MONEYGRAM INTERNATIONAL, INC. |
||||||||||||||||||||||||
EBITDA, ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN AND ADJUSTED FREE CASH FLOW |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
(Amounts in millions, except percentages) |
Three Months |
2018 vs |
Twelve Months |
2018 vs |
||||||||||||||||||||
2018 |
2017 |
2017 |
2018 |
2017 |
2017 |
|||||||||||||||||||
Loss before income taxes |
$ |
(1.5) |
$ |
(68.2) |
$ |
66.7 |
$ |
(10.9) |
$ |
(36.6) |
$ |
25.7 |
||||||||||||
Interest expense |
13.8 |
11.7 |
2.1 |
53.6 |
45.3 |
8.3 |
||||||||||||||||||
Depreciation and amortization |
18.6 |
19.3 |
(0.7) |
76.3 |
75.1 |
1.2 |
||||||||||||||||||
Signing bonus amortization |
11.9 |
12.9 |
(1.0) |
53.9 |
51.9 |
2.0 |
||||||||||||||||||
EBITDA |
42.8 |
(24.3) |
67.1 |
172.9 |
135.7 |
37.2 |
||||||||||||||||||
Significant items impacting EBITDA: |
||||||||||||||||||||||||
Restructuring and reorganization costs |
6.4 |
— |
6.4 |
20.1 |
— |
20.1 |
||||||||||||||||||
Direct monitor costs |
3.9 |
3.4 |
0.5 |
11.3 |
16.0 |
(4.7) |
||||||||||||||||||
Stock-based, contingent and incentive compensation |
2.4 |
3.5 |
(1.1) |
12.4 |
14.5 |
(2.1) |
||||||||||||||||||
Legal and contingent matters (1) |
2.3 |
84.0 |
(81.7) |
45.0 |
85.9 |
(40.9) |
||||||||||||||||||
Compliance enhancement program |
2.0 |
1.2 |
0.8 |
12.9 |
9.6 |
3.3 |
||||||||||||||||||
Severance and related costs |
0.2 |
1.5 |
(1.3) |
0.6 |
1.5 |
(0.9) |
||||||||||||||||||
Costs (income) related to the terminated merger with Ant Financial (2) |
— |
2.0 |
(2.0) |
(29.3) |
12.7 |
(42.0) |
||||||||||||||||||
Adjusted EBITDA |
$ |
60.0 |
$ |
71.3 |
$ |
(11.3) |
$ |
245.9 |
$ |
275.9 |
$ |
(30.0) |
||||||||||||
Adjusted EBITDA margin (3) |
17.4 |
% |
17.5 |
% |
(0.1) |
% |
17.0 |
% |
17.2 |
% |
(0.2) |
% |
||||||||||||
Adjusted EBITDA change, as reported |
(16) |
% |
(11) |
% |
||||||||||||||||||||
Adjusted EBITDA change, constant currency adjusted |
(15) |
% |
(13) |
% |
||||||||||||||||||||
Adjusted EBITDA |
$ |
60.0 |
$ |
71.3 |
$ |
(11.3) |
$ |
245.9 |
$ |
275.9 |
$ |
(30.0) |
||||||||||||
Cash payments for interest |
(13.3) |
(10.8) |
(2.5) |
(50.7) |
(41.9) |
(8.8) |
||||||||||||||||||
Cash payments for taxes, net of refunds |
(0.9) |
1.4 |
(2.3) |
(4.8) |
(5.0) |
0.2 |
||||||||||||||||||
Cash payments for capital expenditures |
(13.3) |
(20.5) |
7.2 |
(57.8) |
(83.6) |
25.8 |
||||||||||||||||||
Cash payments for agent signing bonuses |
(11.4) |
(15.7) |
4.3 |
(31.6) |
(40.3) |
8.7 |
||||||||||||||||||
Adjusted Free Cash Flow |
$ |
21.1 |
$ |
25.7 |
$ |
(4.6) |
$ |
101.0 |
$ |
105.1 |
$ |
(4.1) |
||||||||||||
(1) 2018 year-to-date includes an accrual of $40.0 million and 2017 quarter-to-date and year-to-date both include an accrual of $85.0 million related to the resolution of the DPA matter. |
||||||||||||||||||||||||
(2) Costs include, but are not limited to, legal, bank and consultant fees and income includes the $30.0 million merger termination fee. |
||||||||||||||||||||||||
(3) 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 |
Twelve Months |
|||||||||||||||
(Amounts in millions, except per share data) |
2018 |
2017 |
2018 |
2017 |
||||||||||||
Net loss |
$ |
(12.5) |
$ |
(52.5) |
$ |
(24.0) |
$ |
(29.8) |
||||||||
Total adjustments (1) |
17.2 |
95.6 |
73.0 |
140.2 |
||||||||||||
Tax impacts of adjustments (2) |
(4.1) |
(4.2) |
(8.5) |
(19.8) |
||||||||||||
Tax reform impact (3) |
— |
(22.8) |
— |
(22.8) |
||||||||||||
Adjusted net income |
$ |
0.6 |
$ |
16.1 |
$ |
40.5 |
$ |
67.8 |
||||||||
Diluted loss per common share |
$ |
(0.19) |
$ |
(0.83) |
$ |
(0.37) |
$ |
(0.47) |
||||||||
Diluted adjustments per common share |
0.20 |
1.09 |
1.00 |
1.55 |
||||||||||||
Diluted adjusted earnings per common share |
$ |
0.01 |
$ |
0.26 |
$ |
0.63 |
$ |
1.08 |
||||||||
Diluted weighted-average outstanding common shares and equivalents |
64.5 |
63.1 |
64.3 |
62.9 |
||||||||||||
(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) One-time net benefit from the remeasurement of deferred tax assets and liabilities due to the Tax Cuts and Jobs Act of 2017. |
TABLE SIX |
||||||||
MONEYGRAM INTERNATIONAL, INC. |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited) |
||||||||
(Amounts in millions, except share data) |
December 31, 2018 |
December 31, 2017 |
||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ |
145.5 |
$ |
190.0 |
||||
Settlement assets |
3,373.8 |
3,756.9 |
||||||
Property and equipment, net |
193.9 |
214.9 |
||||||
Goodwill |
442.2 |
442.2 |
||||||
Other assets |
140.7 |
168.5 |
||||||
Total assets |
$ |
4,296.1 |
$ |
4,772.5 |
||||
LIABILITIES |
||||||||
Payment service obligations |
$ |
3,373.8 |
$ |
3,756.9 |
||||
Debt, net |
901.0 |
908.1 |
||||||
Pension and other postretirement benefits |
76.6 |
97.3 |
||||||
Accounts payable and other liabilities |
213.5 |
255.5 |
||||||
Total liabilities |
4,564.9 |
5,017.8 |
||||||
STOCKHOLDERS' DEFICIT |
||||||||
Participating convertible preferred stock - series D, $0.01 par value, 200,000 shares authorized, 71,282 issued at December 31, 2018 and December 31, 2017 |
183.9 |
183.9 |
||||||
Common stock, $0.01 par value, 162,500,000 shares authorized, 58,823,567 shares issued at December 31, 2018 and December 31, 2017 |
0.6 |
0.6 |
||||||
Additional paid-in capital |
1,046.8 |
1,034.8 |
||||||
Retained loss |
(1,403.6) |
(1,336.1) |
||||||
Accumulated other comprehensive loss |
(67.5) |
(63.0) |
||||||
Treasury stock: 3,207,118 and 4,585,223 shares at December 31, 2018 and December 31, 2017, respectively |
(29.0) |
(65.5) |
||||||
Total stockholders' deficit |
(268.8) |
(245.3) |
||||||
Total liabilities and stockholders' deficit |
$ |
4,296.1 |
$ |
4,772.5 |
TABLE SEVEN |
||||||||
MONEYGRAM INTERNATIONAL, INC. |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
Twelve Months Ended December 31, |
||||||||
(Amounts in millions) |
2018 |
2017 |
||||||
CASH FLOWS FROM OPERATING ACTIVITIES |
||||||||
Net loss |
$ |
(24.0) |
$ |
(29.8) |
||||
Adjustments to reconcile net loss to net cash provided by operating activities |
53.3 |
162.3 |
||||||
Net cash provided by operating activities |
29.3 |
132.5 |
||||||
CASH FLOWS FROM INVESTING ACTIVITIES |
||||||||
Purchases of property and equipment |
(57.8) |
(83.6) |
||||||
Net cash used in investing activities |
(57.8) |
(83.6) |
||||||
CASH FLOWS FROM FINANCING ACTIVITIES |
||||||||
Principal payments on debt |
(9.8) |
(9.8) |
||||||
Proceeds from exercise of stock options and other |
— |
1.7 |
||||||
Payments to tax authorities for stock-based compensation |
(6.2) |
(8.0) |
||||||
Net cash used in financing activities |
(16.0) |
(16.1) |
||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS |
(44.5) |
32.8 |
||||||
CASH AND CASH EQUIVALENTS—Beginning of period |
190.0 |
157.2 |
||||||
CASH AND CASH EQUIVALENTS—End of period |
$ |
145.5 |
$ |
190.0 |
TABLE EIGHT |
||||||||||||
MONEYGRAM INTERNATIONAL, INC. |
||||||||||||
2018 VERSUS 2017 EXCLUDING ASSET-BACKED SECURITY REDEMPTION |
||||||||||||
(Unaudited) |
||||||||||||
(Amounts in millions) |
Twelve Months Ended December 31, 2017 |
|||||||||||
Reported |
Security |
As Excluded |
||||||||||
Investment revenue |
$ |
41.2 |
$ |
(12.2) |
$ |
29.0 |
||||||
Total revenue |
1,602.1 |
(12.2) |
1,589.9 |
|||||||||
Net loss |
(29.8) |
(12.2) |
(42.0) |
|||||||||
EBITDA |
135.7 |
(12.2) |
123.5 |
|||||||||
Adjusted EBITDA |
275.9 |
(12.2) |
263.7 |
|||||||||
Adjusted Free Cash Flow |
$ |
105.1 |
$ |
(12.2) |
$ |
92.9 |
||||||
(1) Represents the $12.2 million gain from the one-time redemption of an asset-backed security in the second quarter of 2017. There was no net tax expense impact from the gain. |
(Amounts in millions, except percentages) |
Twelve Months |
2018 vs 2017 |
|||||||||||||
2018 |
2017 |
$ |
% |
||||||||||||
As |
|||||||||||||||
Investment revenue |
$ |
49.5 |
$ |
29.0 |
$ |
20.5 |
71 |
% |
|||||||
Total revenue |
1,447.6 |
1,589.9 |
(142.3) |
(9) |
|||||||||||
Net loss |
(24.0) |
(42.0) |
18.0 |
43 |
|||||||||||
EBITDA |
172.9 |
123.5 |
49.4 |
40 |
|||||||||||
Adjusted EBITDA |
245.9 |
263.7 |
(17.8) |
(7) |
|||||||||||
Adjusted Free Cash Flow |
$ |
101.0 |
$ |
92.9 |
$ |
8.1 |
9 |
% |
|||||||
Adjusted EBITDA Margin |
17.0 |
% |
16.6 |
% |
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