MoneyGram International Reports Second Quarter 2020 Results
Second Quarter 2020 Business Highlights
"We had a very strong quarter and materially outperformed on both the top and bottom-line, despite the continued global uncertainty from the COVID-19 pandemic," said
Holmes added: "We're excited about the underlying momentum in our business driven by our digital transformation. The investments that we have made over the past few years have allowed us to build a fast growth digital business which not only has higher customer retention and productivity rates, but also surpassed the walk-in business during the quarter delivering higher margins on average. With digital now representing 27% of money transfer transactions, the business is providing a significant contribution to our bottom-line results."
MoneyGram achieved 106% year-over-year digital transaction growth in the second quarter – a significant acceleration from the first quarter of 2020 where the company reported 57% growth. Overall digital growth was driven by the following components:- MoneyGram Online, the Company's direct-to-consumer channel, delivered 104% year-over-year transaction growth driven by strong consumer demand for the
MoneyGram app, high customer retention rates, and increasing productivity rates - Digital partnerships, driven by key partners in the
Middle East and Asia Pacific, accelerated from 25% year-over-year transaction growth in the first quarter to 97% growth in the second quarter - Account deposit and mobile wallet transactions increased 148% which is an acceleration from the first quarter where the Company reported 80% year-over-year transaction growth
- Digital transactions accounted for 27% of all money transfer transactions in the second quarter
- The Company remains focused on executing the long-term strategy while managing through the crisis. During the quarter, the Company achieved a number of important milestones:
- Expanded the loyalty program to new markets and launched product enhancements to improve the customer experience
- Launched new wallet and account deposit partnerships in rapidly growing regions of the world
- Strengthened the Company's leading position around the world by signing and expanding partnerships, specifically overhauling key receive markets
Second Quarter 2020 Financial Results, Year-Over-Year
- Total revenue was
$279.8 million , a decline of 14% or 13% on a constant currency basis primarily driven by the impact of COVID-19 on the first part of the quarter as the Company reported positive revenue growth in the month of June - Money transfer revenue was
$253.1 million , down 10% or 9% on a constant currency basis related to the impact of COVID-19 on the first part of the quarter - The Company reported positive money transfer revenue growth in the month of June on the strength of double-digit cross border transaction growth
- Investment revenue was
$4.3 million for the quarter due to lower prevailing interest rates - Total operating expenses of
$257.8 million , improved$51 .7 million or 17% - Compensation and Benefits were flat including a
$5.9 million special compensation plan accrual to potentially restore compensation withheld during the quarter as part of the Company's proactive response to the COVID-19 pandemic - Transaction and Operations Support expenses were down over 60% primarily driven by efficiencies and operating reductions previously disclosed as part of the Company's proactive response to the COVID-19 pandemic
- Included an
$8.8 million net benefit from Ripple market development fees of$15.1 million , partially offset by related transaction and trading expenses of $6.3 million - Operating Income was $22.0 million which was an increase of 54%
- Net loss was
$4.6 million for the quarter - Diluted loss per share was
$0.06 and diluted adjusted income per share was$0.01 - Adjusted EBITDA increased 4%, or 5% on a constant currency basis, to
$56.4 million - Adjusted EBITDA margin improved 340 basis points to 20%
- Adjusted Free Cash Flow was
$24.7 million , an increase of 24%
"As the ongoing COVID-19 crisis continues to impact countless lives around the world, the health, safety, and livelihoods of our customers, employees, and partners remain our top priorities. I'm extremely proud of how we've come together as a company over these last few months to exceptionally serve our diverse customer base of tens of millions of people who rely on our essential services," concluded Holmes.
Balance Sheet Highlights
Cash and cash equivalents on hand at quarter end were
As announced earlier this week,
Third Quarter 2020 Outlook Update
As a result of continuing economic uncertainty created by the COVID-19 pandemic, the Company is not providing a specific third quarter outlook. However, if revenue trends remain in their current range, then the Company would anticipate sustained Adjusted EBITDA growth in the third quarter.
Conference Call
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1-929-477-0324 |
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About
With a strong culture of innovation and a relentless focus on utilizing technology to deliver the world's best customer experience,
For more information, please visit MoneyGram.com and follow @MoneyGram.
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
These risks and uncertainties include, but are not limited to:
- the impact of the COVID-19 outbreak or future epidemics 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 to comply with
U.S. and international laws and regulations; - litigation or investigations involving us or our agents;
- uncertainties relating to compliance with the 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 reports filed with theU.S. Securities and Exchange Commission (the "SEC "), includingMoneyGram's annual report on Form 10-K for the year endedDecember 31, 2019 .
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, diluted adjusted income (loss) 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 |
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Condensed Consolidated Statements of Operations |
Table Two |
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Segment Results |
Table Three |
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Segment Reconciliations |
Table Four |
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Reconciliation of Certain Non-GAAP Measures to Relevant GAAP Measures - EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow |
Table Five |
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Reconciliation of Certain Non-GAAP Measures to Relevant GAAP Measures - Adjusted Net Income and Adjusted Diluted EPS |
Table Six |
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Condensed Consolidated Balance Sheets |
Table Seven |
- |
Condensed Consolidated Statements of Cash Flows |
CONTACTS |
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214-979-1400 |
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TABLE ONE |
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CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
(Amounts in millions, except percentages and per share data) |
Three Months Ended |
2020 vs |
Six Months Ended |
2020 vs |
||||||||||||||||||||
2020 |
2019 |
2019 |
2020 |
2019 |
2019 |
|||||||||||||||||||
REVENUE |
||||||||||||||||||||||||
Fee and other revenue |
$ |
275.5 |
$ |
309.3 |
$ |
(33.8) |
$ |
556.3 |
$ |
610.3 |
$ |
(54.0) |
||||||||||||
Investment revenue |
4.3 |
14.5 |
(10.2) |
14.4 |
28.9 |
(14.5) |
||||||||||||||||||
Total revenue |
279.8 |
323.8 |
(44.0) |
570.7 |
639.2 |
(68.5) |
||||||||||||||||||
Total revenue change, as reported |
(14) |
% |
(14) |
% |
(11) |
% |
(15) |
% |
||||||||||||||||
Total revenue change, constant currency |
(13) |
% |
(12) |
% |
(10) |
% |
(13) |
% |
||||||||||||||||
OPERATING EXPENSES |
||||||||||||||||||||||||
Total commissions and direct transaction expenses |
152.9 |
167.8 |
(14.9) |
307.3 |
328.7 |
(21.4) |
||||||||||||||||||
Compensation and benefits |
53.2 |
53.5 |
(0.3) |
106.6 |
112.9 |
(6.3) |
||||||||||||||||||
Transaction and operations support (1) |
21.3 |
54.5 |
(33.2) |
59.3 |
106.6 |
(47.3) |
||||||||||||||||||
Occupancy, equipment and supplies |
14.2 |
15.5 |
(1.3) |
29.1 |
30.9 |
(1.8) |
||||||||||||||||||
Depreciation and amortization |
16.2 |
18.2 |
(2.0) |
33.3 |
37.2 |
(3.9) |
||||||||||||||||||
Total operating expenses |
257.8 |
309.5 |
(51.7) |
535.6 |
616.3 |
(80.7) |
||||||||||||||||||
OPERATING INCOME |
22.0 |
14.3 |
7.7 |
35.1 |
22.9 |
12.2 |
||||||||||||||||||
Other expenses |
||||||||||||||||||||||||
Interest expense |
22.7 |
14.0 |
8.7 |
46.5 |
27.9 |
18.6 |
||||||||||||||||||
Other non-operating expense(2) |
1.2 |
35.3 |
(34.1) |
2.3 |
36.9 |
(34.6) |
||||||||||||||||||
Total other expenses |
23.9 |
49.3 |
(25.4) |
48.8 |
64.8 |
(16.0) |
||||||||||||||||||
Loss before income taxes |
(1.9) |
(35.0) |
33.1 |
(13.7) |
(41.9) |
28.2 |
||||||||||||||||||
Income tax expense |
2.7 |
(7.8) |
10.5 |
12.4 |
(1.2) |
13.6 |
||||||||||||||||||
NET LOSS |
$ |
(4.6) |
$ |
(27.2) |
$ |
22.6 |
$ |
(26.1) |
$ |
(40.7) |
$ |
14.6 |
||||||||||||
Basic and diluted loss per common share |
$ |
(0.06) |
$ |
(0.41) |
$ |
0.35 |
$ |
(0.34) |
$ |
(0.62) |
$ |
0.28 |
||||||||||||
Basic and diluted weighted-average outstanding common shares and equivalents used in computing loss per share |
77.8 |
66.1 |
11.7 |
77.6 |
65.5 |
12.1 |
(1) The three and six months ended |
||||||||||||||||||||||||
(2) The three and six months ended |
TABLE TWO |
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|
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SEGMENT RESULTS |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
Global Funds Transfer |
||||||||||||||||||||||||
(Amounts in millions, except percentages) |
Three Months Ended |
2020 vs |
Six Months Ended |
2020 vs |
||||||||||||||||||||
2020 |
2019 |
2019 |
2020 |
2019 |
2019 |
|||||||||||||||||||
Money transfer revenue |
$ |
253.1 |
$ |
282.2 |
$ |
(29.1) |
$ |
509.0 |
$ |
555.5 |
$ |
(46.5) |
||||||||||||
Bill payment revenue |
10.8 |
15.0 |
(4.2) |
24.2 |
30.9 |
(6.7) |
||||||||||||||||||
Total revenue |
$ |
263.9 |
$ |
297.2 |
$ |
(33.3) |
$ |
533.2 |
$ |
586.4 |
$ |
(53.2) |
||||||||||||
Commissions and direct transaction expenses |
$ |
152.7 |
$ |
161.4 |
$ |
(8.7) |
$ |
304.0 |
$ |
315.7 |
$ |
(11.7) |
||||||||||||
Operating income |
$ |
16.5 |
$ |
5.6 |
$ |
10.9 |
$ |
23.2 |
$ |
6.7 |
$ |
16.5 |
||||||||||||
Operating margin |
6.3 |
% |
1.9 |
% |
4.4 |
% |
1.1 |
% |
||||||||||||||||
Money transfer revenue change, as reported |
(10) |
% |
(14) |
% |
(8) |
% |
(17) |
% |
||||||||||||||||
Money transfer revenue change, constant currency |
(9) |
% |
(12) |
% |
(7) |
% |
(14) |
% |
||||||||||||||||
Financial Paper Products |
||||||||||||||||||||||||
(Amounts in millions, except percentages) |
Three Months Ended |
2020 vs |
Six Months Ended |
2020 vs |
||||||||||||||||||||
2020 |
2019 |
2019 |
2020 |
2019 |
2019 |
|||||||||||||||||||
Money order revenue |
$ |
10.8 |
$ |
13.6 |
$ |
(2.8) |
$ |
22.9 |
$ |
27.5 |
$ |
(4.6) |
||||||||||||
Official check revenue |
5.1 |
13.0 |
(7.9) |
14.6 |
25.3 |
(10.7) |
||||||||||||||||||
Total revenue |
$ |
15.9 |
$ |
26.6 |
$ |
(10.7) |
$ |
37.5 |
$ |
52.8 |
$ |
(15.3) |
||||||||||||
Total commissions expense |
$ |
0.2 |
$ |
6.4 |
$ |
(6.2) |
$ |
3.3 |
$ |
13.0 |
$ |
(9.7) |
||||||||||||
Operating income |
$ |
6.2 |
$ |
10.0 |
$ |
(3.8) |
$ |
13.2 |
$ |
18.2 |
$ |
(5.0) |
||||||||||||
Operating margin |
39.0 |
% |
37.6 |
% |
35.2 |
% |
34.5 |
% |
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TABLE THREE |
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SEGMENT RECONCILIATIONS |
||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||
Global Funds Transfer |
||||||||||||||||||||||||
(Amounts in millions, except percentages) |
Three Months Ended |
2020 vs |
Six Months Ended |
2020 vs |
||||||||||||||||||||
2020 |
2019 |
2019 |
2020 |
2019 |
2019 |
|||||||||||||||||||
Revenue (as reported) |
$ |
263.9 |
$ |
297.2 |
$ |
(33.3) |
$ |
533.2 |
$ |
586.4 |
$ |
(53.2) |
||||||||||||
Adjusted operating income |
$ |
22.6 |
$ |
15.9 |
$ |
6.7 |
$ |
38.3 |
$ |
28.2 |
$ |
10.1 |
||||||||||||
Legal and contingent matters |
— |
— |
— |
(0.3) |
— |
(0.3) |
||||||||||||||||||
Restructuring and reorganization costs |
(0.7) |
(0.5) |
(0.2) |
(1.2) |
(4.1) |
2.9 |
||||||||||||||||||
Compliance enhancement program |
(0.9) |
(1.9) |
1.0 |
(2.5) |
(3.0) |
0.5 |
||||||||||||||||||
Direct monitor costs |
(3.1) |
(6.2) |
3.1 |
(7.9) |
(10.3) |
2.4 |
||||||||||||||||||
Stock-based compensation expense |
(1.4) |
(1.7) |
0.3 |
(3.2) |
(4.1) |
0.9 |
||||||||||||||||||
Total adjustments |
(6.1) |
(10.3) |
4.2 |
(15.1) |
(21.5) |
6.4 |
||||||||||||||||||
Operating income (as reported) |
$ |
16.5 |
$ |
5.6 |
$ |
10.9 |
$ |
23.2 |
$ |
6.7 |
$ |
16.5 |
||||||||||||
Adjusted operating margin |
8.6 |
% |
5.3 |
% |
7.2 |
% |
4.8 |
% |
||||||||||||||||
Total adjustments |
(2.3) |
% |
(3.5) |
% |
(2.8) |
% |
(3.7) |
% |
||||||||||||||||
Operating margin (as reported) |
6.3 |
% |
1.9 |
% |
4.4 |
% |
1.1 |
% |
||||||||||||||||
Financial Paper Products |
||||||||||||||||||||||||
(Amounts in millions, except percentages) |
Three Months Ended |
2020 vs |
Six Months Ended |
2020 vs |
||||||||||||||||||||
2020 |
2019 |
2019 |
2020 |
2019 |
2019 |
|||||||||||||||||||
Revenue (as reported) |
$ |
15.9 |
$ |
26.6 |
$ |
(10.7) |
$ |
37.5 |
$ |
52.8 |
$ |
(15.3) |
||||||||||||
Adjusted operating income |
$ |
6.7 |
$ |
10.6 |
$ |
(3.9) |
$ |
14.3 |
$ |
19.4 |
$ |
(5.1) |
||||||||||||
Compliance enhancement program |
(0.3) |
(0.4) |
0.1 |
(0.7) |
(0.8) |
0.1 |
||||||||||||||||||
Stock-based compensation expense |
(0.2) |
(0.2) |
— |
(0.4) |
(0.4) |
— |
||||||||||||||||||
Total adjustments |
(0.5) |
(0.6) |
0.1 |
(1.1) |
(1.2) |
0.1 |
||||||||||||||||||
Operating income (as reported) |
$ |
6.2 |
$ |
10.0 |
$ |
(3.8) |
$ |
13.2 |
$ |
18.2 |
$ |
(5.0) |
||||||||||||
Adjusted operating margin |
42.1 |
% |
39.8 |
% |
38.1 |
% |
36.7 |
% |
||||||||||||||||
Total adjustments |
(3.1) |
% |
(2.3) |
% |
(2.9) |
% |
(2.3) |
% |
||||||||||||||||
Operating margin (as reported) |
39.0 |
% |
37.6 |
% |
35.2 |
% |
34.5 |
% |
||||||||||||||||
TABLE FOUR |
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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 |
2020 vs |
Six Months Ended |
2020 vs |
||||||||||||||||||||
2020 |
2019 |
2019 |
2020 |
2019 |
2019 |
|||||||||||||||||||
Loss before income taxes |
$ |
(1.9) |
$ |
(35.0) |
$ |
33.1 |
$ |
(13.7) |
$ |
(41.9) |
$ |
28.2 |
||||||||||||
Interest expense |
22.7 |
14.0 |
8.7 |
46.5 |
27.9 |
18.6 |
||||||||||||||||||
Depreciation and amortization |
16.2 |
18.2 |
(2.0) |
33.3 |
37.2 |
(3.9) |
||||||||||||||||||
Signing bonus amortization |
12.6 |
11.7 |
0.9 |
25.1 |
23.4 |
1.7 |
||||||||||||||||||
EBITDA |
49.6 |
8.9 |
40.7 |
91.2 |
46.6 |
44.6 |
||||||||||||||||||
Significant items impacting EBITDA: |
||||||||||||||||||||||||
Direct monitor costs |
3.1 |
6.2 |
(3.1) |
7.9 |
10.3 |
(2.4) |
||||||||||||||||||
Stock-based, contingent and incentive compensation |
1.6 |
1.9 |
(0.3) |
3.6 |
4.5 |
(0.9) |
||||||||||||||||||
Compliance enhancement program |
1.2 |
2.3 |
(1.1) |
3.2 |
3.8 |
(0.6) |
||||||||||||||||||
Restructuring and reorganization costs |
0.7 |
0.5 |
0.2 |
1.2 |
4.0 |
(2.8) |
||||||||||||||||||
Legal and contingent matters |
0.2 |
0.7 |
(0.5) |
0.6 |
1.3 |
(0.7) |
||||||||||||||||||
Non-cash pension settlement charge (1) |
— |
31.3 |
(31.3) |
— |
31.3 |
(31.3) |
||||||||||||||||||
Debt extinguishment costs (2) |
— |
2.4 |
(2.4) |
— |
2.4 |
(2.4) |
||||||||||||||||||
Severance and related costs |
— |
0.1 |
(0.1) |
0.2 |
0.2 |
— |
||||||||||||||||||
Adjusted EBITDA |
$ |
56.4 |
$ |
54.3 |
$ |
2.1 |
$ |
107.9 |
$ |
104.4 |
$ |
3.5 |
||||||||||||
Adjusted EBITDA margin (3) |
20.2 |
% |
16.8 |
% |
3.4 |
% |
18.9 |
% |
16.3 |
% |
2.6 |
% |
||||||||||||
Adjusted EBITDA change, as reported |
4 |
% |
3 |
% |
||||||||||||||||||||
Adjusted EBITDA change, constant currency adjusted |
5 |
% |
5 |
% |
||||||||||||||||||||
Adjusted EBITDA |
$ |
56.4 |
$ |
54.3 |
$ |
2.1 |
$ |
107.9 |
$ |
104.4 |
$ |
3.5 |
||||||||||||
Cash payments for interest |
(16.8) |
(13.2) |
(3.6) |
(34.4) |
(26.0) |
(8.4) |
||||||||||||||||||
Cash payments for taxes, net of refunds |
(0.4) |
0.7 |
(1.1) |
(2.5) |
(0.5) |
(2.0) |
||||||||||||||||||
Cash payments for capital expenditures |
(9.8) |
(16.5) |
6.7 |
(19.9) |
(29.2) |
9.3 |
||||||||||||||||||
Cash payments for agent signing bonuses |
(4.7) |
(5.3) |
0.6 |
(29.7) |
(15.4) |
(14.3) |
||||||||||||||||||
Adjusted Free Cash Flow |
$ |
24.7 |
$ |
20.0 |
$ |
4.7 |
$ |
21.4 |
$ |
33.3 |
$ |
(11.9) |
(1) Non-cash charge of |
||||||||||||||||||||||||
(2) Debt extinguishment costs related to the amended and new debt agreements entered on |
||||||||||||||||||||||||
(3) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenue. |
TABLE FIVE |
||||||||||||||||
|
||||||||||||||||
RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO RELEVANT GAAP MEASURES |
||||||||||||||||
ADJUSTED NET INCOME AND ADJUSTED DILUTED EPS |
||||||||||||||||
(Unaudited) |
||||||||||||||||
Three Months Ended |
Six Months Ended |
|||||||||||||||
(Amounts in millions, except per share data) |
2020 |
2019 |
2020 |
2019 |
||||||||||||
Net loss |
$ |
(4.6) |
$ |
(27.2) |
$ |
(26.1) |
$ |
(40.7) |
||||||||
Total adjustments (1) |
6.8 |
45.4 |
16.7 |
57.8 |
||||||||||||
Tax impacts of adjustments (2) |
(1.3) |
(10.5) |
(3.6) |
(13.3) |
||||||||||||
Valuation allowance (3) |
— |
— |
10.1 |
— |
||||||||||||
Adjusted net income (loss) |
$ |
0.9 |
$ |
7.7 |
$ |
(2.9) |
$ |
3.8 |
||||||||
Diluted loss per common share |
$ |
(0.06) |
$ |
(0.41) |
$ |
(0.34) |
$ |
(0.62) |
||||||||
Diluted adjustments per common share |
0.07 |
0.53 |
0.30 |
0.68 |
||||||||||||
Diluted adjusted income (loss) per common share |
$ |
0.01 |
$ |
0.12 |
$ |
(0.04) |
$ |
0.06 |
||||||||
Diluted weighted-average outstanding common shares and equivalents |
77.8 |
66.1 |
77.6 |
65.5 |
||||||||||||
(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) In the first quarter of 2020, the Company recorded beginning-of-the-year valuation allowance of |
TABLE SIX |
||||||||
|
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited) |
||||||||
(Amounts in millions, except share data) |
|
|
||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ |
130.6 |
$ |
146.8 |
||||
Settlement assets |
3,501.5 |
3,237.0 |
||||||
Property and equipment, net |
158.2 |
176.1 |
||||||
|
442.2 |
442.2 |
||||||
Other assets |
185.3 |
182.9 |
||||||
Total assets |
$ |
4,417.8 |
$ |
4,185.0 |
||||
LIABILITIES |
||||||||
Payment service obligations |
$ |
3,501.5 |
$ |
3,237.0 |
||||
Debt, net |
855.6 |
850.3 |
||||||
Pension and other postretirement benefits |
76.3 |
77.5 |
||||||
Accounts payable and other liabilities |
252.9 |
260.6 |
||||||
Total liabilities |
4,686.3 |
4,425.4 |
||||||
STOCKHOLDERS' DEFICIT |
||||||||
Participating convertible preferred stock - series D, |
183.9 |
183.9 |
||||||
Common stock, |
0.7 |
0.7 |
||||||
Additional paid-in capital |
1,120.3 |
1,116.9 |
||||||
Retained loss |
(1,494.1) |
(1,460.1) |
||||||
Accumulated other comprehensive loss |
(68.0) |
(63.5) |
||||||
|
(11.3) |
(18.3) |
||||||
Total stockholders' deficit |
(268.5) |
(240.4) |
||||||
Total liabilities and stockholders' deficit |
$ |
4,417.8 |
$ |
4,185.0 |
||||
TABLE SEVEN |
||||||||
|
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
Six Months Ended |
||||||||
(Amounts in millions) |
2020 |
2019 |
||||||
CASH FLOWS FROM OPERATING ACTIVITIES: |
||||||||
Net loss |
$ |
(26.1) |
$ |
(40.7) |
||||
Adjustments to reconcile net loss to net cash provided by operating activities: |
33.7 |
78.8 |
||||||
Net cash provided by operating activities |
7.6 |
38.1 |
||||||
CASH FLOWS FROM INVESTING ACTIVITIES: |
||||||||
Purchases of property and equipment |
(19.9) |
(29.2) |
||||||
Net cash used in investing activities |
(19.9) |
(29.2) |
||||||
CASH FLOWS FROM FINANCING ACTIVITIES: |
||||||||
Transaction costs for issuance and amendment of debt |
— |
(21.3) |
||||||
Principal payments on debt |
(3.2) |
(28.4) |
||||||
Proceeds from revolving credit facility |
23.0 |
— |
||||||
Payments on revolving credit facility |
(23.0) |
— |
||||||
Net proceeds from issuing equity instruments |
— |
29.5 |
||||||
Payments to tax authorities for stock-based compensation |
(0.7) |
(0.7) |
||||||
Net cash used in financing activities |
(3.9) |
(20.9) |
||||||
NET CHANGE IN CASH AND CASH EQUIVALENTS |
(16.2) |
(12.0) |
||||||
CASH AND CASH EQUIVALENTS—Beginning of period |
146.8 |
145.5 |
||||||
CASH AND CASH EQUIVALENTS—End of period |
$ |
130.6 |
$ |
133.5 |
||||
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