MoneyGram International Reports Third Quarter 2020 Results

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Press Release

October 29, 2020 at 10:32 PM EDT

MoneyGram International Reports Third Quarter 2020 Results

Net Income of $10.9 million and Adjusted EBITDA of $68.8 million
 
Money transfer revenue growth of 5% led by 10% transaction growth year-over-year
 
176% year-over-year MGO cross-border transaction growth

DALLAS, Oct. 29, 2020 /PRNewswire/ -- MoneyGram International, Inc. (NASDAQ: MGI) today reported financial results for its third quarter ended September 30, 2020.

Third Quarter 2020 Business Highlights

"The amazing performance of our digital business drove yet another impressive quarter as the Company continues to build upon its financial growth trajectory," said Alex Holmes, MoneyGram Chairman and CEO. "Our customer-centric strategy and growing active customer base helped deliver year-over-year money transfer revenue growth for the quarter, while the strength of our Adjusted EBITDA and cash flow demonstrate how our investments to build a scalable infrastructure are paying off. It's exciting to see the successful execution of our digital transformation be a catalyst for sustainable and profitable growth."

  • Digital performance in the quarter was led by MoneyGram's online direct-to-consumer channel (MGO):
    • MGO delivered 111% year-over-year transaction growth and 114% 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 grew an impressive 176% and 174%, respectively, year-over-year for the third quarter
    • MGO, the Company's largest generator of money transfer transactions, now has 3 of its individual country sites on the Company's top 10 list of money transfer transaction generating sources
  • Total digital, which includes MGO, had year-over-year transaction growth of 106% in the third quarter
    • Digital revenue accelerated from the second quarter to $53.2 million representing a 95% year-over-year revenue growth rate for the third quarter
    • Digital partnerships delivered transaction growth of 79% in the third quarter
    • Account deposit and mobile wallet transactions increased 157% in the third quarter
  • Digital transactions accounted for 27% of all money transfer transactions in the third quarter
  • The Company remains focused on executing its long-term strategy while managing through the crisis. During the quarter, the Company achieved a number of important milestones:
    • Expanded global account deposit and wallet presence while enhancing the speed of delivery and customer experience
    • Launched new partnerships with telecom and fintech providers in Africa, one of the fastest growing markets for mobile money transactions
    • Solidified key existing relationships including a three-year renewal with Walmart

Third Quarter 2020 Financial Results, Year-Over-Year

  • Total revenue was $323.2 million, representing a slight increase on a reported basis or -1% on a constant currency basis
    • Money transfer revenue was $297.6 million, up 5%, or 4% on a constant currency basis, driven by the strength of our digital business
    • Investment revenue was $3.0 million for the quarter representing a decline of $10.4 million due to lower prevailing interest rates
  • Total operating expenses of $286.6 million, improved $19.2 million or 6%
    • Transaction and Operations Support expenses decreased $31.5 million or 56% which included:
      • Agile management of expenses through the pandemic as the Company continues to benefit from its Digital Transformation
      • $8.9 million net benefit from Ripple market development fees of $9.3 million, partially offset by related transaction and trading expenses of $0.4 million
      • The Company recorded $6.3 million in foreign exchange gains primarily related to currency movements during the pandemic
  • Operating Income was $36.6 million, an increase of 123% year-over-year
    • Operating Income margin expanded from 5.1% to 11.3% year-over-year
  • Net Income was $10.9 million for the quarter representing a return to positive net income for the Company and an increase of $18.6 million
  • Diluted earnings per share was $0.12 and diluted adjusted earnings per share was $0.16
  • Adjusted EBITDA increased 33% to $68.8 million, or 29% on a constant currency basis
    • Adjusted EBITDA margin improved 530 basis points to 21%
  • Adjusted Free Cash Flow was $25.4 million, an increase of 173%

Holmes concluded: "Amidst the ongoing global pandemic we have been able to consistently deliver strong results. The focused execution of our strategy and agile management of the business will continue to enable the Company to successfully navigate this uncertain environment."

Balance Sheet Highlights

Cash and cash equivalents on hand at quarter end was $162.9 million compared to $130.6 million at the end of the second quarter 2020. Third quarter interest expense was $23.0 million and capital expenditures were $10.7 million.

Fourth Quarter 2020 Outlook Update

While the strength of the Company's digital business is driving improved performance, the global pandemic continues to create economic uncertainty throughout the world. Most countries continue to maintain restrictions on travel and over the last few days, several major countries have reinstituted lockdowns.  Given how recent these new restrictions are, it's difficult to predict their duration and the resulting impact on our business.

However, assuming the global economic environment were to remain consistent with the third quarter the Company is providing the following outlook:

For the fourth quarter, the Company anticipates reporting total revenue growth of approximately one percent on the continued strength of the money transfer business, offset by lower investment income.  Based on these revenue trends coupled with the continued expense benefit from its Digital Transformation, the Company anticipates reporting Adjusted EBITDA growth of approximately 10 percent.

Conference Call

MoneyGram International will host a conference call on October 30, at 9:00 a.m. ET, to discuss its results. Alex Holmes, Chairman and CEO, Larry Angelilli, CFO and Kamila Chytil, COO, will host the call.

Participant Dial-In Numbers:

U.S.:

1-888-204-4368

International:

1-929-477-0402

Webcast:

public.viavid.com/index.php?id=141889 



Replay:

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

Replay ID:

3736690

Replay is available through November 6, 2020, 11:59 p.m. ET

About MoneyGram International, Inc.

MoneyGram is a global leader in cross-border P2P payments and money transfers. Its consumer-centric capabilities enable family and friends to quickly and affordably send money in more than 200 countries and territories, with 81 now digitally enabled.

MoneyGram leverages its modern, mobile, and API-driven platform and collaborates with the world's leading brands to serve millions of people each year through both its walk-in business and its direct-to-consumer digital business.

With a strong culture of innovation and a relentless focus on utilizing technology to deliver the world's best customer experience, MoneyGram is leading the evolution of digital P2P payments.

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 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," 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 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 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.

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 adjusted operating income and adjusted operating margin 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 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

-

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
September 30,


2020 vs


Nine Months Ended
September 30,


2020 vs


2020


2019


2019


2020


2019


2019














REVENUE













Fee and other revenue


$

320.2



$

308.8



$

11.4



$

876.5



$

919.1



$

(42.6)


Investment revenue


3.0



13.4



(10.4)



17.4



42.3



(24.9)


Total revenue


323.2



322.2



1.0



893.9



961.4



(67.5)















Total revenue change, as reported


%


(7)

%




(7)

%


(13)

%



Total revenue change, constant currency


(1)

%


(5)

%




(7)

%


(11)

%
















OPERATING EXPENSES













Total commissions and direct transaction

    expenses


174.5



165.8



8.7



481.8



494.5



(12.7)


Compensation and benefits


56.3



50.5



5.8



162.9



163.4



(0.5)


Transaction and operations support (1) 


24.3



55.8



(31.5)



83.6



162.4



(78.8)


Occupancy, equipment and supplies


15.6



15.5



0.1



44.7



46.4



(1.7)


Depreciation and amortization


15.9



18.2



(2.3)



49.2



55.4



(6.2)


Total operating expenses


286.6



305.8



(19.2)



822.2



922.1



(99.9)


OPERATING INCOME


36.6



16.4



20.2



71.7



39.3



32.4


Other expenses













Interest expense


23.0



24.8



(1.8)



69.5



52.7



16.8


Other non-operating expense (2)


1.1



1.2



(0.1)



3.4



38.1



(34.7)


Total other expenses


24.1



26.0



(1.9)



72.9



90.8



(17.9)


Income (loss) before income taxes


12.5



(9.6)



22.1



(1.2)



(51.5)



50.3


Income tax expense


1.6



(1.9)



3.5



14.0



(3.1)



17.1


NET INCOME (LOSS)


$

10.9



$

(7.7)



$

18.6



$

(15.2)



$

(48.4)



$

33.2















EARNINGS (LOSS) PER COMMON SHARE













Basic


$

0.14



$

(0.10)



$

0.24



$

(0.20)



$

(0.70)



$

0.50


Diluted


$

0.12



$

(0.10)



$

0.22



$

(0.20)



$

(0.70)



$

0.50















Weighted-average outstanding common
    shares and equivalents used in
    computing earnings (loss) per share













Basic


77.9



76.4



1.5



77.7



69.2



8.5


Diluted


88.7



76.4



12.3



77.7



69.2



8.5















(1) The three and nine months ended September 30, 2020 include Ripple market development fees of $9.3 million and $41.0 million, respectively,
        partially offset by related transaction and trading expenses of $0.4 million and $11.2 million, respectively.

(2) The nine months ended September 30, 2019 include non-cash pension settlement charge of $31.3 million and debt extinguishment cost of
        $2.4 million.

 

TABLE TWO

MONEYGRAM INTERNATIONAL, INC.

SEGMENT RESULTS

(Unaudited)














Global Funds Transfer













(Amounts in millions, except percentages)


Three Months Ended
September 30,


2020 vs


Nine Months Ended
September 30,


2020 vs


2020


2019


2019


2020


2019


2019

Money transfer revenue


$

297.6



$

282.5



$

15.1



$

806.6



$

838.0



$

(31.4)


Bill payment revenue


11.0



14.7



(3.7)



35.2



45.6



(10.4)


Total revenue


$

308.6



$

297.2



$

11.4



$

841.8



$

883.6



$

(41.8)















Commissions and direct transaction
    expenses


$

174.4



$

159.3



$

15.1



$

478.4



$

475.0



$

3.4















Operating income


$

33.6



$

9.8



$

23.8



$

56.8



$

16.5



$

40.3















Operating margin


10.9

%


3.3

%




6.7

%


1.9

%
















Money transfer revenue change, as reported


5

%


(6)

%




(4)

%


(13)

%



Money transfer revenue change, constant currency


4

%


(5)

%




(4)

%


(11)

%
















Financial Paper Products


























(Amounts in millions, except percentages)


Three Months Ended
September 30,


2020 vs


Nine Months Ended
September 30,


2020 vs


2020


2019


2019


2020


2019


2019

Money order revenue


$

10.4



$

13.1



$

(2.7)



$

33.3



$

40.6



$

(7.3)


Official check revenue


4.2



11.9



(7.7)



18.8



37.2



(18.4)


Total revenue


$

14.6



$

25.0



$

(10.4)



$

52.1



$

77.8



$

(25.7)















Total commissions expense


$

0.1



$

6.5



$

(6.4)



$

3.4



$

19.5



$

(16.1)















Operating income


$

3.6



$

7.6



$

(4.0)



$

16.8



$

25.8



$

(9.0)















Operating margin


24.7

%


30.4

%




32.2

%


33.2

%
















 

TABLE THREE

MONEYGRAM INTERNATIONAL, INC.

SEGMENT RECONCILIATIONS

(Unaudited)














Global Funds Transfer













(Amounts in millions, except percentages)


Three Months Ended
September 30,


2020 vs


Nine Months Ended
September 30,


2020 vs


2020


2019


2019


2020


2019


2019














Revenue (as reported)


$

308.6



$

297.2



$

11.4



$

841.8



$

883.6



$

(41.8)















Adjusted operating income


$

35.8



$

15.8



$

20.0



$

74.1



$

44.0



$

30.1















Legal and contingent matters


0.4





0.4



0.1





0.1


Restructuring and reorganization costs


0.2



(0.1)



0.3



(1.0)



(4.2)



3.2


Compliance enhancement program


(0.4)



(2.4)



2.0



(2.9)



(5.4)



2.5


Direct monitor costs


(1.0)



(2.1)



1.1



(8.9)



(12.4)



3.5


Stock-based compensation expense


(1.4)



(1.4)





(4.6)



(5.5)



0.9


Total adjustments


(2.2)



(6.0)



3.8



(17.3)



(27.5)



10.2















Operating income (as reported)


$

33.6



$

9.8



$

23.8



$

56.8



$

16.5



$

40.3















Adjusted operating margin


11.6

%


5.3

%




8.8

%


5.0

%



Total adjustments


(0.7)

%


(2.0)

%




(2.1)

%


(3.1)

%



Operating margin (as reported)


10.9

%


3.3

%




6.7

%


1.9

%










































Financial Paper Products













(Amounts in millions, except percentages)


Three Months Ended
September 30,


2020 vs


Nine Months Ended
September 30,


2020 vs


2020


2019


2019


2020


2019


2019














Revenue (as reported)


$

14.6



$

25.0



$

(10.4)



$

52.1



$

77.8



$

(25.7)















Adjusted operating income


$

3.8



$

8.0



$

(4.2)



$

18.1



$

27.4



$

(9.3)















Compliance enhancement program


(0.1)



(0.2)



0.1



(0.8)



(1.0)



0.2


Stock-based compensation expense


(0.1)



(0.2)



0.1



(0.5)



(0.6)



0.1


Total adjustments


(0.2)



(0.4)



0.2



(1.3)



(1.6)



0.3















Operating income (as reported)


$

3.6



$

7.6



$

(4.0)



$

16.8



$

25.8



$

(9.0)















Adjusted operating margin


26.0

%


32.0

%




34.7

%


35.2

%



Total adjustments


(1.4)

%


(1.6)

%




(2.5)

%


(2.1)

%



Operating margin (as reported)


24.7

%


30.4

%




32.2

%


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
September 30,


2020 vs


Nine Months Ended
September 30,


2020 vs


2020


2019


2019


2020


2019


2019














Income (loss) before income taxes


$

12.5



$

(9.6)



$

22.1



$

(1.2)



$

(51.5)



$

50.3


Interest expense


23.0



24.8



(1.8)



69.5



52.7



16.8


Depreciation and amortization


15.9



18.2



(2.3)



49.2



55.4



(6.2)


Signing bonus amortization


14.6



11.2



3.4



39.7



34.6



5.1


EBITDA


66.0



44.6



21.4



157.2



91.2



66.0















Significant items impacting EBITDA:













Stock-based, contingent and incentive
    compensation


1.5



1.6



(0.1)



5.1



6.1



(1.0)


Direct monitor costs


1.0



2.1



(1.1)



8.9



12.4



(3.5)


Compliance enhancement program


0.5



2.6



(2.1)



3.7



6.4



(2.7)


Restructuring and reorganization costs


(0.2)



0.1



(0.3)



1.0



4.1



(3.1)


Non-cash pension settlement charge (1)










31.3



(31.3)


Legal and contingent matters




0.6



(0.6)



0.6



1.9



(1.3)


Severance and related costs




0.1



(0.1)



0.2



0.3



(0.1)


Debt extinguishment costs (2)










2.4



(2.4)


Adjusted EBITDA


$

68.8



$

51.7



$

17.1



$

176.7



$

156.1



$

20.6















Adjusted EBITDA margin (3)


21.3

%


16.0

%


5.3

%


19.8

%


16.2

%


3.6

%














Adjusted EBITDA change, as reported


33

%






13

%





Adjusted EBITDA change, constant
    currency adjusted


29

%






13

%


















Adjusted EBITDA


$

68.8



$

51.7



$

17.1



$

176.7



$

156.1



$

20.6


Cash payments for interest


(23.2)



(19.2)



(4.0)



(57.6)



(45.2)



(12.4)


Cash payments for taxes, net of refunds


5.8



(1.1)



6.9



3.3



(1.6)



4.9


Cash payments for capital expenditures


(10.7)



(13.3)



2.6



(30.6)



(42.5)



11.9


Cash payments for agent signing bonuses


(15.3)



(8.8)



(6.5)



(45.0)



(24.2)



(20.8)


Adjusted Free Cash Flow


$

25.4



$

9.3



$

16.1



$

46.8



$

42.6



$

4.2















(1) Nine months ended September 30, 2019 includes a non-cash charge of $31.3 million from the sale of pension liability.

(2) Nine months ended September 30, 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
September 30,


Nine Months Ended
September 30,

(Amounts in millions, except per share data)


2020


2019


2020


2019










Net income (loss)


$

10.9



$

(7.7)



$

(15.2)



$

(48.4)


Total adjustments (1)


2.8



7.1



19.5



64.9


Tax impacts of adjustments (2)


(0.9)



(1.6)



(4.5)



(14.9)


Valuation allowance (3)


1.2





11.3




Adjusted net income (loss)


$

14.0



$

(2.2)



$

11.1



$

1.6




















Diluted earnings (loss) per common share


$

0.12



$

(0.10)



$

(0.20)



$

(0.70)











Diluted adjustments per common share


0.04



0.07



0.34



0.72











Diluted adjusted earnings (loss) per common share


$

0.16



$

(0.03)



$

0.14



$

0.02











Diluted weighted-average outstanding common shares

    and equivalents


88.7



76.4



77.7



69.2












(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 $13.0 million valuation allowance on its U.S. deferred tax assets for the nine months ended September 30, 2020. In the third quarter of 2020, a valuation allowance of $1.7 million was recorded on its U.S. deferred tax assets.

 

TABLE SIX

MONEYGRAM INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)






(Amounts in millions, except share data)


September 30, 2020


December 31, 2019

ASSETS





Cash and cash equivalents


$

162.9



$

146.8


Settlement assets


3,555.2



3,237.0


Property and equipment, net


150.5



176.1


Goodwill


442.2



442.2


Other assets


183.2



182.9


Total assets


$

4,494.0



$

4,185.0


LIABILITIES





Payment service obligations


$

3,555.2



$

3,237.0


Debt, net


856.7



850.3


Pension and other postretirement benefits


73.8



77.5


Accounts payable and other liabilities


257.4



260.6


Total liabilities


4,743.1



4,425.4


STOCKHOLDERS' DEFICIT





Participating convertible preferred stock - series D, $0.01 par value, 200,000 shares authorized, 14,480 and 71,282 shares issued and outstanding at September 30, 2020 and December 31, 2019, respectively


37.4



183.9


Common stock, $0.01 par value, 162,500,000 shares authorized, 70,664,378 and 65,061,090 shares issued, 70,664,378 and 62,731,184 shares outstanding at September 30, 2020 and December 31, 2019, respectively


0.7



0.7


Additional paid-in capital


1,257.1



1,116.9


Retained loss


(1,483.1)



(1,460.1)


Accumulated other comprehensive loss


(61.2)



(63.5)


Treasury stock: 0 and 2,329,906 shares at September 30, 2020 and December 31, 2019, respectively




(18.3)


Total stockholders' deficit


(249.1)



(240.4)


Total liabilities and stockholders' deficit


$

4,494.0



$

4,185.0







 

TABLE SEVEN

MONEYGRAM INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)






Nine Months Ended September 30,

(Amounts in millions)


2020


2019

CASH FLOWS FROM OPERATING ACTIVITIES:





Net loss


$

(15.2)



$

(48.4)


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


67.4



87.4


Net cash provided by operating activities


52.2



39.0


CASH FLOWS FROM INVESTING ACTIVITIES:





Payments for capital expenditures


(30.6)



(42.5)


Net cash used in investing activities


(30.6)



(42.5)


CASH FLOWS FROM FINANCING ACTIVITIES:





Transaction costs for issuance and amendment of debt




(21.7)


Principal payments on debt


(4.8)



(30.0)


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


(5.5)



(22.9)


NET CHANGE IN CASH AND CASH EQUIVALENTS


16.1



(26.4)


CASH AND CASH EQUIVALENTS—Beginning of period


146.8



145.5


CASH AND CASH EQUIVALENTS—End of period


$

162.9



$

119.1







 

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SOURCE MoneyGram