• Digital performance in the fourth quarter was led by MoneyGram's online direct-to-consumer channel (MGO):

◦ MGO delivered 100% year-over-year transaction growth and 103% revenue growth driven by strong consumer demand for the MoneyGram app, high customer retention rates, and increased productivity rates

◦ Cross-border online transactions and revenue each grew an impressive 143%, respectively, year-over-year for the fourth quarter

◦ MGO, the Company's largest generator of money transfer transactions, maintains 3 of its individual country sites on the Company's top 10 list of money transfer transaction generating sources

▪ US MGO became the largest generator of money transfer transactions in December surpassing Walmart

• Total digital, which includes MGO, had year-over-year transaction growth of 94%in the fourth quarter

◦ Digital revenue reached a new record of$57.4 million for the fourth quarterrepresenting a 79%year-over-year revenue growth rate

◦ Digital partnerships delivered transaction growth of 77% year-over-year

◦ Account deposit and mobile wallet transactions increased 140% year-over-year

• Digital transactions accounted for 28% of all money transfer transactions in the fourth quarter

• During the quarter, the Company reported a number of strategic achievements:

◦ As part of the Company's focus to invest in major receive markets, MoneyGram expanded its real-time direct to account transfer capabilities led by Visa Direct.

▪ Visa Direct posted record transactions on 650% growth for the 4th quarter. 

◦ The Company accelerated longer-term, customer-centric partnerships in major markets by strengthening positions in North America and the Asia Pacific region with renewals at both Canada Post, a five-year extension, and SBI, a three-year extension

• Total revenue of$323.3 million was flat on a reported basis or down 2% on a constant currency basis

◦ Money transfer revenuewas $298.1 million, up4%,or 2% on a constant currency basis, driven by double-digit transaction growth

◦ Investment revenue was $2.6 million forthe quarter representing a decline of $9.8 million due to lower prevailing interest rates

• Total operating expenses of $292.0 million, decreased $19.0 million or 6%

◦ Transaction and Operations Support expenses decreased $17.4 million or 38% which included:

▪ $8.5 million net benefit from Ripple market development fees of $9.2 million, partially offset byrelated transaction and trading expenses of $0.7 million

• Operating Income was$31.3 million,an increase of 146%

◦ Operating Income margin expanded from 3.9% to 9.7%

• Net Income was $7.3 million for the quarter representing the Company's second consecutive quarter of positive net income and an increase of $19.2 million

• Diluted earnings per sharewas $0.08 and diluted adjusted earnings per share was $0.12

• Adjusted EBITDA increased 12% to$64.6 million, or 8% on a constant currency basis

◦ Adjusted EBITDA margin improved 220 basis points to 20%

• Total revenue of $1,217.2 million declined 5% on a reported basis and down 6% on a constant currency basis

◦ Money Transfer revenue was $1,104.7 million a decline of 2% on both a reported basis and a constant currency basis

▪ The decline was largely due to the COVID-19 pandemic which mostly impacted our first half 2020 operating results

◦ Investment revenue totaled $20.0 million, or a $34.7 million decline, due to the lower prevailing interest rates

• Total operating expenses were $1,114.2 million decreased $118.9 million or 10% due to the agile management of expenses through the pandemic as the Company continues to benefit from its Digital Transformation 

• Income before taxes of $6.1 million for the full year, with an after-tax loss of $7.9 million primarily related to a deferred tax asset valuation allowance of $12.0 million of which $10.1 million was recognized in the first quarter

• Adjusted EBITDA was $241.3 million, a 13% increase on a reported basis and an 11% increase on a constant currency basis. The increase is primarily related to the out-performance of the Company's digital business and continued focus on expense management

• Diluted loss per share was $0.10 and adjusted diluted income per share was$0.28

• Cash and cash equivalents on hand at year end was $196.1 million compared to $162.9 million as of the end of the third quarter 2020

• Fourth quarter interest expense was $22.9 million and full-year interest expense was $92.4 million

• Capital expenditures in 2020were $40.8 million

Participant Dial-In Numbers:

U.S.:

1-800-263-0877

International:

1-646-828-8143

Webcast:

public.viavid.com/index.php?id=143363

Replay:

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

Replay ID:

3866751

Replay is available through March 1, 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;

• uncertainties relating to compliance with the Deferred Prosecution Agreement, as amended on July 24, 2020 ("Amended DPA"), entered into with the U.S. federal government and the effect of the Amended DPA on our reputation and business and our ability to make payments required under the Amended DPA;

• regulations addressing consumer privacy, data use and security;

• our ability to successfully develop and timely introduce new and enhanced products and services and our investments in new products, services or infrastructure changes;

• our ability to manage risks associated with our international sales and operations;

• our offering of money transfer services through agents in regions that are politically volatile;

• changes in tax laws or an unfavorable outcome with respect to the audit of our tax returns or tax positions, or a failure by us to establish adequate reserves for tax events;

• our substantial debt service obligations, significant debt covenant requirements and credit ratings;

• major bank failure or sustained financial market illiquidity, or illiquidity at our clearing, cash management and custodial financial institutions;

• the ability of us and our agents to maintain adequate banking relationships;

• a security or privacy breach in systems, networks or databases on which we rely and disruptions to our computer network systems and data centers;

• weakness in economic conditions, in both the U.S. and global markets;

• a significant change, material slow down or complete disruption of international migration patterns;

• the financial health of certain European countries or the secession of a country from the European Union;

• our ability to manage credit risks from our agents and official check financial institution consumers;

• our ability to adequately protect our brand and intellectual property rights and to avoid infringing on the rights of others;

• our ability to manage risks related to the operation of retail locations and the acquisition or start-up of businesses;

• any restructuring actions and cost reduction initiatives that we undertake may not deliver the expected results and these actions may adversely affect our business;

• our capital structure;

• and uncertainties described in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of MoneyGram's public 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, 2019, 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 Income and Adjusted Diluted EPS

Table Six

-

Condensed Consolidated Balance Sheets

Table Seven

-

Condensed Consolidated Statements of Cash Flows

CONTACTS

Investor Relations:

Media Relations:

214-979-1400

Stephen Reiff

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
December 31,

2020 vs

Year Ended December
31,

2020 vs

2020

2019

2019

2020

2019

2019

REVENUE

Fee and other revenue

$

320.7

$

311.3

$

9.4

$

1,197.2

$

1,230.4

$

(33.2)

Investment revenue

2.6

12.4

(9.8)

20.0

54.7

(34.7)

Total revenue

323.3

323.7

(0.4)

1,217.2

1,285.1

(67.9)

Total revenue change, as reported

—

%

(6)

%

(5)

%

(11)

%

Total revenue change, constant currency

(2)

%

(6)

%

(6)

%

(10)

%

OPERATING EXPENSES

Total commissions and direct transaction expenses

171.2

167.7

3.5

653.0

662.2

(9.2)

Compensation and benefits

60.9

65.0

(4.1)

223.8

228.4

(4.6)

Transaction and operations support ⁽¹⁾ 

28.0

45.4

(17.4)

111.6

207.8

(96.2)

Occupancy, equipment and supplies

16.7

14.5

2.2

61.4

60.9

0.5

Depreciation and amortization

15.2

18.4

(3.2)

64.4

73.8

(9.4)

Total operating expenses

292.0

311.0

(19.0)

1,114.2

1,233.1

(118.9)

OPERATING INCOME

31.3

12.7

18.6

103.0

52.0

51.0

Other expenses

Interest expense

22.9

24.3

(1.4)

92.4

77.0

15.4

Other non-operating expense ⁽²⁾

1.1

1.2

(0.1)

4.5

39.3

(34.8)

Total other expenses

24.0

25.5

(1.5)

96.9

116.3

(19.4)

Income (loss) before income taxes

7.3

(12.8)

20.1

6.1

(64.3)

70.4

Income tax (benefit) expense

—

(0.9)

0.9

14.0

(4.0)

18.0

NET INCOME (LOSS)

$

7.3

$

(11.9)

$

19.2

$

(7.9)

$

(60.3)

$

52.4

EARNINGS (LOSS) PER COMMON SHARE

Basic

$

0.09

$

(0.16)

$

0.25

$

(0.10)

$

(0.85)

$

0.75

Diluted

$

0.08

$

(0.16)

$

0.24

$

(0.10)

$

(0.85)

$

0.75

Weighted-average outstanding common

    shares and equivalents used in

    computing earnings (loss) per share 

Basic

77.9

76.7

1.2

77.8

71.1

6.7

Diluted

88.8

76.7

12.1

77.8

71.1

6.7

(1) Twelve months ended December 31, 2020 and 2019 include Ripple market development fees of $50.2 million and $11.3 million, respectively,  partially offset by related transaction and trading expenses of $11.9 million and $0.4 million, respectively.

(2) Twelve months ended December 31, 2019 includes a non-cash pension settlement charge of $31.3 million and debt extinguishment costs of $2.4 million.

TABLE TWO

MONEYGRAM INTERNATIONAL, INC.

SEGMENT RESULTS

(Unaudited)

Global Funds Transfer

(Amounts in millions, except percentages)

Three Months Ended
December 31,

2020 vs

Year Ended December
31,

2020 vs

2020

2019

2019

2020

2019

2019

Money transfer revenue

$

298.1

$

285.9

$

12.2

$

1,104.7

$

1,123.9

$

(19.2)

Bill payment revenue

11.0

13.8

(2.8)

46.2

59.4

(13.2)

Total revenue

$

309.1

$

299.7

$

9.4

$

1,150.9

$

1,183.3

$

(32.4)

Commissions and direct transaction expenses

$

170.9

$

162.9

$

8.0

$

649.3

$

637.9

$

11.4

Operating income

$

27.6

$

5.5

$

22.1

$

84.4

$

22.0

$

62.4

Operating margin

8.9

%

1.8

%

7.3

%

1.9

%

Money transfer revenue change, as
reported

4

%

(6)

%

(2)

%

(12)

%

Money transfer revenue change, constant
currency

2

%

(5)

%

(2)

%

(10)

%

Financial Paper Products

(Amounts in millions, except percentages)

Three Months Ended
December 31,

2020 vs

Year Ended December
31,

2020 vs

2020

2019

2019

2020

2019

2019

Money order revenue

$

10.1

$

12.4

$

(2.3)

$

43.4

$

53.0

$

(9.6)

Official check revenue

4.1

11.6

(7.5)

22.9

48.8

(25.9)

Total revenue

$

14.2

$

24.0

$

(9.8)

$

66.3

$

101.8

$

(35.5)

Total commissions expense

$

0.3

$

4.8

$

(4.5)

$

3.7

$

24.3

$

(20.6)

Operating income

$

3.7

$

8.0

$

(4.3)

$

20.5

$

33.8

$

(13.3)

Operating margin

26.1

%

33.3

%

30.9

%

33.2

%

TABLE THREE

MONEYGRAM INTERNATIONAL, INC.

SEGMENT RECONCILIATIONS

(Unaudited)

Global Funds Transfer

(Amounts in millions, except percentages)

Three Months Ended
December 31,

2020 vs

Year Ended December
31,

2020 vs

2020

2019

2019

2020

2019

2019

Revenue (as reported)

$

309.1

$

299.7

$

9.4

$

1,150.9

$

1,183.3

$

(32.4)

Adjusted operating income

$

31.7

$

20.4

$

11.3

$

105.8

$

64.4

$

41.4

Legal and contingent matters

—

(2.4)

2.4

0.1

(2.4)

2.5

Restructuring and reorganization costs

—

(7.1)

7.1

(1.0)

(11.3)

10.3

Compliance enhancement program

(0.6)

(2.3)

1.7

(3.5)

(7.7)

4.2

Direct monitor costs

(2.1)

(1.5)

(0.6)

(11.0)

(13.9)

2.9

Stock-based compensation expense

(1.4)

(1.6)

0.2

(6.0)

(7.1)

1.1

Total adjustments

(4.1)

(14.9)

10.8

(21.4)

(42.4)

21.0

Operating income (as reported)

$

27.6

$

5.5

$

22.1

$

84.4

$

22.0

$

62.4

Adjusted operating margin

10.3

%

6.8

%

9.2

%

5.4

%

Total adjustments

(1.3)

%

(5.0)

%

(1.9)

%

(3.6)

%

Operating margin (as reported)

8.9

%

1.8

%

7.3

%

1.9

%

Financial Paper Products

(Amounts in millions, except percentages)

Three Months Ended
December 31,

2020 vs

Year Ended December
31,

2020 vs

2020

2019

2019

2020

2019

2019

Revenue (as reported)

$

14.2

$

24.0

$

(9.8)

$

66.3

$

101.8

$

(35.5)

Adjusted operating income

$

3.9

$

8.4

$

(4.5)

$

22.0

$

35.8

$

(13.8)

Compliance enhancement program

(0.1)

(0.2)

0.1

(0.9)

(1.2)

0.3

Stock-based compensation expense

(0.1)

(0.2)

0.1

(0.6)

(0.8)

0.2

Total adjustments

(0.2)

(0.4)

0.2

(1.5)

(2.0)

0.5

Operating income (as reported)

$

3.7

$

8.0

$

(4.3)

$

20.5

$

33.8

$

(13.3)

Adjusted operating margin

27.5

%

35.0

%

33.2

%

35.2

%

Total adjustments

(1.4)

%

(1.7)

%

(2.3)

%

(2.0)

%

Operating margin (as reported)

26.1

%

33.3

%

30.9

%

33.2

%

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
December 31,

2020 vs

Year Ended December
31,

2020 vs

2020

2019

2019

2020

2019

2019

Income (loss) before income taxes

$

7.3

$

(12.8)

$

20.1

$

6.1

$

(64.3)

$

70.4

Interest expense

22.9

24.3

(1.4)

92.4

77.0

15.4

Depreciation and amortization

15.2

18.4

(3.2)

64.4

73.8

(9.4)

Signing bonus amortization

14.8

11.8

3.0

54.5

46.4

8.1

EBITDA

60.2

41.7

18.5

217.4

132.9

84.5

Significant items impacting EBITDA:

Direct monitor costs

2.1

1.5

0.6

11.0

13.9

(2.9)

Stock-based, contingent and incentive
compensation

1.5

1.8

(0.3)

6.6

7.9

(1.3)

Compliance enhancement program

0.7

2.5

(1.8)

4.4

8.9

(4.5)

Severance and related costs

0.1

0.4

(0.3)

0.3

0.7

(0.4)

Non-cash pension settlement charge ⁽¹⁾

—

—

—

—

31.3

(31.3)

Legal and contingent matters

—

2.6

(2.6)

0.6

4.5

(3.9)

Debt extinguishment costs ⁽²⁾

—

—

—

—

2.4

(2.4)

Restructuring and reorganization costs

—

7.1

(7.1)

1.0

11.2

(10.2)

Adjusted EBITDA

$

64.6

$

57.6

$

7.0

$

241.3

$

213.7

$

27.6

Adjusted EBITDA margin ⁽³⁾

20.0

%

17.8

%

2.2

%

19.8

%

16.6

%

3.2

%

Adjusted EBITDA change, as reported

12

%

13

%

Adjusted EBITDA change, constant
currency adjusted

8

%

11

%

Adjusted EBITDA

$

64.6

$

57.6

$

7.0

$

241.3

$

213.7

$

27.6

Cash payments for interest

(19.9)

(18.1)

(1.8)

(77.5)

(63.3)

(14.2)

Cash payments for taxes, net of refunds

(1.5)

(2.8)

1.3

1.8

(4.4)

6.2

Cash payments for capital expenditures

(10.2)

(12.0)

1.8

(40.8)

(54.5)

13.7

Cash payments for agent signing bonuses

(13.7)

(4.9)

(8.8)

(58.7)

(29.1)

(29.6)

Adjusted Free Cash Flow

$

19.3

$

19.8

$

(0.5)

$

66.1

$

62.4

$

3.7

(1) 2019 includes a non-cash charge from the sale of pension liability.

(2) 2019 includes debt extinguishment costs related to the amended and new debt agreements.

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

TABLE FIVE

MONEYGRAM INTERNATIONAL, INC.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO RELEVANT GAAP MEASURES

ADJUSTED NET INCOME AND ADJUSTED DILUTED EPS

(Unaudited)

Three Months Ended
December 31,

Year Ended December 31,

(Amounts in millions, except per share data)

2020

2019

2020

2019

Net income (loss)

$

7.3

$

(11.9)

$

(7.9)

$

(60.3)

Total adjustments ⁽¹⁾

4.4

15.9

23.9

80.8

Tax impacts of adjustments ⁽²⁾

(1.0)

(3.6)

(5.5)

(18.5)

Valuation allowance ⁽³⁾

—

—

11.3

—

Adjusted net income

$

10.7

$

0.4

$

21.8

$

2.0

Diluted earnings (loss) per common share

$

0.08

$

(0.16)

$

(0.10)

$

(0.85)

Diluted adjustments per common share

0.04

0.17

0.38

0.88

Diluted adjusted earnings (loss) per common share

$

0.12

$

0.01

$

0.28

$

0.03

Diluted weighted-average outstanding common shares

    and equivalents

88.8

76.7

77.8

71.1

(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 and jurisdiction of each adjustment.

(3) The Company recorded a $11.3 million valuation allowance on its U.S. deferred tax assets for the twelve months ended December 31, 2020.

TABLE SIX

MONEYGRAM INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

(Amounts in millions, except share data)

December 31, 2020

December 31, 2019

ASSETS

Cash and cash equivalents

$

196.1

$

146.8

Settlement assets

3,702.9

3,237.0

Property and equipment, net

148.1

176.1

Goodwill

442.2

442.2

Right-of-use assets

55.1

50.0

Other assets

129.7

132.9

Total assets

$

4,674.1

$

4,185.0

LIABILITIES

Payment service obligations

$

3,702.9

$

3,237.0

Debt, net

857.8

850.3

Pension and other postretirement benefits

74.5

77.5

Lease liabilities

59.1

54.2

Accounts payable and other liabilities

216.8

206.4

Total liabilities

4,911.1

4,425.4

STOCKHOLDERS' DEFICIT

Participating convertible preferred stock - series D, $0.01 par value,
200,000 shares authorized, no shares issued and outstanding at
December 31, 2020, 71,282 shares issued and outstanding at
December 31, 2019

—

183.9

Common stock, $0.01 par value, 162,500,000 shares authorized,
72,530,770 and 65,061,090 shares issued, 72,517,539 and 62,731,184
shares outstanding at December 31, 2020 and December 31, 2019,
respectively

0.7

0.7

Additional paid-in capital

1,296.0

1,116.9

Retained loss

(1,475.3)

(1,460.1)

Accumulated other comprehensive loss

(58.4)

(63.5)

Treasury stock: 13,231 and 2,329,906 shares at December 31, 2020 and
December 31, 2019, respectively

—

(18.3)

Total stockholders' deficit

(237.0)

(240.4)

Total liabilities and stockholders' deficit

$

4,674.1

$

4,185.0

TABLE SEVEN

MONEYGRAM INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

Year Ended December 31,

(Amounts in millions)

2020

2019

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss

$

(7.9)

$

(60.3)

Adjustments to reconcile net loss to net cash provided by operating activities:

105.2

123.3

Net cash provided by operating activities

97.3

63.0

CASH FLOWS FROM INVESTING ACTIVITIES:

Payments for capital expenditures

(40.8)

(54.5)

Net cash used in investing activities

(40.8)

(54.5)

CASH FLOWS FROM FINANCING ACTIVITIES:

Transaction costs for issuance and amendment of debt

—

(24.3)

Principal payments on debt

(6.5)

(31.6)

Proceeds from revolving credit facility

23.0

—

Payments on revolving credit facility

(23.0)

—

Net proceeds from issuing equity instruments

—

49.5

Payments to tax authorities for stock-based compensation

(0.7)

(0.8)

Net cash used in financing activities

(7.2)

(7.2)

NET CHANGE IN CASH AND CASH EQUIVALENTS

49.3

1.3

CASH AND CASH EQUIVALENTS—Beginning of year

146.8

145.5

CASH AND CASH EQUIVALENTS—End of year

$

196.1

$

146.8