MONEYGRAM INTERNATIONAL, INC. DALLAS, July 31, 2015 /PRNewswire/ -- MoneyGram (NASDAQ:MGI), a global provider of innovative money transfer and payment services, today reported financial results for its second quarter ended June 30, 2015.
"Our second quarter results reflect the significant progress MoneyGram has made toward executing the strategic initiatives we outlined at the beginning of the year," said Pamela H. Patsley, MoneyGram's chairman and chief executive officer. "Our performance during the quarter resulted in a return to constant currency revenue growth. We posted the largest number of money transfer transactions in our history and accelerated both our self-service revenue and transaction growth. The launch of the new moneygram.com along with the growth of our innovative kiosks and core money transfer business are generating substantial momentum. We remain on track to reach our double-digit growth target in the fourth quarter."
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Money Transfer Highlights
-- Money transfer transaction growth accelerated to 6 percent, and
represented the highest number of quarterly transactions in MoneyGram's
history.
-- Money transfer revenue in the quarter was $316.6 million, representing 2
percent growth on a constant currency basis and a decline of 4 percent
on a reported basis as compared to the prior year.
-- Money transfer results reflect the continued strength in the Company's
U.S. Outbound and Non-U.S. send transaction growth, offset by the impact
of our U.S.-to-U.S. pricing initiative implemented in the fourth quarter
of 2014.
-- U.S. Outbound transactions grew 13 percent year-over-year, led by
sends to Latin America and Africa.
-- Non-U.S. send transactions grew 16 percent led by sends from the
Middle East, Africa and UK, and accelerated from 14 percent
year-over-year growth in the first quarter.
-- U.S.-to-U.S. transactions declined 22 percent, an improvement from a
decline of 37 percent in the first quarter. Total transactions
increased sequentially driven by MoneyGram's innovative self-service
product solutions.
-- U.S. Outbound and Non-U.S. sends now represent 87 percent of money
transfer revenue and grew 14 percent on a constant currency basis in the
quarter, up from 10 percent growth in the first quarter.
Self-Service Highlights
-- Strong customer adoption of MoneyGram's innovative kiosks and the launch
of the new moneygram.com led to accelerated self-service money transfer
results in the second quarter.
-- Self-service money transfer transactions increased 67 percent, and
now represent 14 percent of money transfer transactions.
-- Self-service money transfer revenue grew 58 percent over the prior
year, and represents 12 percent of money transfer revenue.
Annualizing the second quarter, these channels generate almost $150
million of revenue.
-- New kiosks were activated in Europe and China expanding self-service
into new markets.
-- moneygram.com transactions increased 19 percent and revenue was up 10
percent over the prior year. Our sleek, reimagined moneygram.com and
mobile app for Apple and Android devices launched in June. The platform
is the first service which enables customers to send money around the
world without needing to create an account. The ease of the new service
produced nearly 190,000 new active customers, a record quarterly high.
Financial Results
-- Total revenue for the second quarter was $358.8 million, an increase of
1 percent on a constant currency basis and a decrease of 4 percent on a
reported basis due to the stronger dollar. Investment revenue was $2.8
million.
-- In June, the Company completed a partial buyout of pension obligations
and recorded a non-cash charge of $13.8 million. The effect of the
buyout was a reduction in the Company's pension liability and a
permanent reduction in future expenses of the plan.
-- The Company reported EBITDA of $16.0 million and a pre-tax loss of $27.1
million.
-- Adjusted EBITDA was $57.7 million (Table Four). Adjusted EBITDA margin
was 16.1 percent, a 40 basis point decline from the first quarter due to
increased marketing spend to launch new products and for seasonal
campaigns.
-- Adjusted diluted earnings per share was $0.23. Diluted loss per share
was $0.20 due to the pension buyout and expenses related to the Global
Transformation Program.
-- Adjusted free cash flow was negative $7.4 million primarily due to the
repositioning of the U.S.-to-U.S. business, investments in the Global
Transformation Program and agent signing bonus payments. The Company
also made a one-time $55.8 million payment related to the IRS tax
litigation during the quarter, which is not included in the adjusted
free cash flow. The Company has since filed an appeal of the U.S. tax
court decision.
"The critical need to send money and the push for global financial inclusion continues to drive growth in the industry," Patsley said. "The investments we are making into the expansion of our innovative self-service money transfer and payment service products are providing consumers with more choices and greater convenience, prompting a growing number of customers to choose MoneyGram to fulfill some of their most important financial needs. Given our strong execution and the progress we are making towards achieving our goals, I am confident this is the right time to move forward with the CEO succession plan that was separately announced today."
Full Year 2015 Outlook
The Company's outlook for 2015 is unchanged. For the full-year 2015, the Company estimates approximately flat constant currency revenue growth.
For Adjusted EBITDA, the Company estimates a decline of approximately 8 to 12 percent on a constant currency basis for the full-year 2015. The Company anticipates improving to year-over-year double-digit constant currency revenue and Adjusted EBITDA growth in the fourth quarter.
Non-GAAP Measures
In addition to results presented in accordance with GAAP, this press 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 significant items), Adjusted EBITDA margin and Adjusted Free Cash Flow (Adjusted EBITDA less cash interest, cash taxes, cash payments for capital expenditures and agent signing bonuses), constant currency measures, adjusted diluted earnings per share and adjusted net income. In addition, we also 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 as we are not able to predict results inclusive of currency changes.
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 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 - 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 - Consolidated Balance Sheets
Table Six - Adjusted Net Income and Adjusted
Diluted EPS
Conference Call
MoneyGram International will host a conference call today at 8:00 a.m. CDT, 9:00 a.m. EDT, to discuss its results. Pamela H. Patsley, chairman and chief executive officer, will host the call.
Participant Dial-In Numbers:
U.S.: 1-888-811-5441
International: +1-913-312-0404
Replay: 1-877-870-5176 or +
1-858-384-5517
Replay ID: 1639028
Replay is available through August 7, 2015
About MoneyGram International, Inc.
MoneyGram is a global provider of innovative money transfer and payment 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 the U.S. More information about MoneyGram International, Inc. is available at moneygram.com.
Forward Looking Statements
This release may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements with respect to, among other things, the financial condition, results of operations, plans, objectives, future performance and business of MoneyGram and its subsidiaries. Forward-looking statements can be identified by words such as "believes," "estimates," "expects," "projects," "plans," "will," "should," "could," "would," "goals," "anticipates" and other similar expressions. These forward-looking statements speak only as of the date they are made, and MoneyGram undertakes no obligation to publicly update or revise any forward-looking statement, except as required by federal securities law. These forward-looking statements are based on management's current expectations and are subject to certain risks, uncertainties and changes in circumstances due to a number of factors. These factors include, but are not limited to: 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 a competing "white label" branded money transfer product or otherwise; the impact of our new U.S.-to-U.S. pricing strategy; 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, including the outcome of ongoing investigations by several state governments, which could result in material settlements, fines or penalties, revocation of required licenses or registrations, terminations of contracts, other administrative actions, lawsuits or associated negative publicity; uncertainties relating to compliance with and the impact of the deferred prosecution agreement entered into with the U.S. federal government and the effect of the deferred prosecution agreement on our reputation and business; regulations addressing consumer privacy, data use and security; our offering of money transfer services through agents in regions that are politically volatile or, in a limited number of cases, are subject to certain restrictions by the Office of Foreign Assets Control; 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; sustained financial market illiquidity, or illiquidity at our clearing, cash management and custodial financial institutions; our significant exposure to loss in the event of a major bank failure or a loss of liquidity in the bank deposit market; the ability of us and our agents to maintain adequate banking relationships; concerns regarding the financial health of certain European countries; a security or privacy breach in systems, networks or databases on which rely; disruptions to our computer network systems and data centers; continued weakness in economic conditions, in both the U.S. and global markets; weakened consumer confidence in our business or money transfers generally; a significant change, material slow down or complete disruption of international migration patterns; our ability to manage credit risks from our retail agents and official check financial institution customers; our ability to retain partners to operate our official check and money order businesses; our ability to successfully develop and timely introduce new and enhanced products and services or investments in unsuccessful new products, services or infrastructure changes; our ability to manage risks associated with our international sales and operations; our ability to adequately protect our brand and intellectual property rights and to avoid infringing on the rights of others; our ability to attract and retain key employees; our ability to manage risks related to the operation of retail locations and the acquisition or start-up of businesses; our ability to maintain effective internal controls; our capital structure and the special voting rights provided to designees of Thomas H. Lee Partners, L.P. on our Board of Directors; whether we will be able to implement the global reorganization and restructuring initiative as planned; whether the expected amount of costs associated with such initiative will exceed our forecasts; whether we will be able to realize the full amount of estimated savings from such initiative; and the risks 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 the SEC, including MoneyGram's annual report on Form 10-K for the year ended December 31, 2014 and subsequent Form 10-Q.
TABLE ONE
MONEYGRAM INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(Amounts in millions, except per share
data)
Three Months Ended June 30, 2015 vs Six Months Ended June 30, 2015 vs
--------------------------- -------------------------
2015 2014 2014 2015 2014 2014
---- ---- ---- ---- ---- ----
REVENUE
Fee and other revenue $356.0 $368.8 $(12.8) $683.7 $736.5 $(52.8)
Investment revenue 2.8 3.6 (0.8) 5.7 10.8 (5.1)
------------------ --- --- ---- --- ---- ----
Total revenue 358.8 372.4 (13.6) 689.4 747.3 (57.9)
------------- ----- ----- ----- ----- ----- -----
Total revenue growth, as reported (4)% 2% (8)% 6%
Total revenue growth, constant
currency 1% 1% (3)% 5%
OPERATING EXPENSES
Fee and other commissions expense 163.2 171.6 (8.4) 316.6 342.5 (25.9)
Investment commissions expense 0.2 0.1 0.1 0.3 0.2 0.1
------------------------------ --- --- --- --- --- ---
Total commissions expense 163.4 171.7 (8.3) 316.9 342.7 (25.8)
Compensation and benefits 87.8 75.0 12.8 162.5 144.7 17.8
Transaction and operations support 90.3 77.3 13.0 160.7 148.6 12.1
Occupancy, equipment and supplies 15.8 13.7 2.1 31.3 26.5 4.8
Depreciation and amortization 17.2 13.6 3.6 32.0 26.7 5.3
----------------------------- ---- ---- --- ---- ---- ---
Total operating expenses 374.5 351.3 23.2 703.4 689.2 14.2
------------------------ ----- ----- ---- ----- ----- ----
OPERATING (LOSS) INCOME (15.7) 21.1 (36.8) (14.0) 58.1 (72.1)
----------------------- ----- ---- ----- ----- ---- -----
OTHER EXPENSE
Net securities gains - (22.4) 22.4 - (22.4) 22.4
Interest expense 11.4 11.4 - 22.5 21.1 1.4
Total other expense (income) 11.4 (11.0) 22.4 22.5 (1.3) 23.8
--------------------------- ---- ----- ---- ---- ---- ----
(Loss) income before income taxes (27.1) 32.1 (59.2) (36.5) 59.4 (95.9)
Income tax (benefit) expense (14.7) 6.5 (21.2) 47.9 (5.2) 53.1
----------------------------
NET (LOSS) INCOME $(12.4) $25.6 $(38.0) $(84.4) $64.6 $(149.0)
================= ====== ===== ====== ====== ===== =======
(LOSS) EARNINGS PER COMMON SHARE
Basic $(0.20) $0.40 $(0.60) $(1.36) $0.96 $(2.32)
Diluted $(0.20) $0.40 $(0.60) $(1.36) $0.95 $(2.31)
Weighted-average outstanding common
shares and equivalents used in
computing (loss) earnings per share
Basic (1) 62.1 63.6 (1.5) 62.1 67.6 (5.5)
Diluted (1) 62.1 63.8 (1.7) 62.1 67.8 (5.7)
(1) Includes common stock equivalents of 8.9 million for the three and six months ended June 30, 2015, respectively. The following weighted-average potential common shares are excluded from diluted (loss) earnings per common share as their effect is anti-dilutive. All potential common shares are anti-dilutive in periods of
net loss available to common stockholders.
Shares related to stock options 3.5 4.3 3.6 4.3
Shares related to restricted stock
units 4.3 1.8 3.5 1.5
TABLE TWO
MONEYGRAM INTERNATIONAL, INC.
SEGMENT RESULTS
(Unaudited)
Global Funds Transfer
Three Months Ended June 30, 2015 vs Six Months Ended June 30, 2015 vs
--------------------------- -------------------------
(Amounts in millions) 2015 2014 2014 2015 2014 2014
-------------------- ---- ---- ---- ---- ---- ----
Money transfer revenue:
Fee and other revenue $316.5 $328.2 $(11.7) $603.3 $654.3 $(51.0)
Investment revenue 0.1 0.1 - 0.1 0.1 -
Bill payment revenue:
Fee and other revenue 24.1 24.5 (0.4) 49.6 50.1 (0.5)
Total revenue $340.7 $352.8 $(12.1) $653.0 $704.5 $(51.5)
============= ====== ====== ====== ====== ====== ======
Total commissions expense $163.2 $171.5 $(8.3) $316.5 $342.2 $(25.7)
========================= ====== ====== ===== ====== ====== ======
Operating income $0.4 $19.5 $(19.1) $0.6 $51.0 $(50.4)
================ ==== ===== ====== ==== ===== ======
Operating margin 0.1% 5.5% 0.1% 7.2%
Money transfer revenue growth, as reported (4)% 3% (8)% 7%
Money transfer revenue growth, constant currency 2% 1% (3)% 6%
Financial Paper Products
Three Months Ended June 30, 2015 vs Six Months Ended June 30, 2015 vs
--------------------------- -------------------------
(Amounts in millions) 2015 2014 2014 2015 2014 2014
-------------------- ---- ---- ---- ---- ---- ----
Money order revenue:
Fee and other revenue $12.1 $12.3 $(0.2) $24.3 $24.6 $(0.3)
Investment revenue 0.7 1.0 (0.3) 1.6 3.1 (1.5)
Official check revenue:
Fee and other revenue 3.3 3.8 (0.5) 6.5 7.5 (1.0)
Investment revenue 2.0 2.5 (0.5) 4.0 7.6 (3.6)
Total revenue $18.1 $19.6 $(1.5) $36.4 $42.8 $(6.4)
============= =====
Total commissions expense $0.3 $0.2 $0.1 $0.5 $0.5 $ -
=========================
Operating income $4.0 $6.1 $(2.1) $9.4 $15.9 $(6.5)
================ =====
Operating margin 22.1% 31.1% 25.8% 37.1%
TABLE THREE
MONEYGRAM INTERNATIONAL, INC.
SEGMENT RECONCILIATIONS
(Unaudited)
Global Funds Transfer
Three Months Ended June 30, 2015 vs Six Months Ended June 30, 2015 vs
--------------------------- -------------------------
(Amounts in millions) 2015 2014 2014 2015 2014 2014
-------------------- ---- ---- ---- ---- ---- ----
Revenue (as reported) $340.7 $352.8 $(12.1) $653.0 $704.5 $(51.5)
====================
Adjusted operating income $21.2 $36.6 $(15.4) $40.5 $81.0 $(40.5)
Reorganization and restructuring costs (4.1) (5.7) 1.6 (12.5) (8.4) (4.1)
Compliance enhancement program (9.4) (7.1) (2.3) (14.5) (13.7) (0.8)
Direct monitor costs (2.8) (0.1) (2.7) (4.7) (0.9) (3.8)
Stock-based compensation expense (4.5) (4.2) (0.3) (8.2) (7.0) (1.2)
Total adjustments (20.8) (17.1) (3.7) (39.9) (30.0) (9.9)
Operating income (as reported) $0.4 $19.5 $(19.1) $0.6 $51.0 $(50.4)
============================= ==== ===== ====== ==== ===== ======
Adjusted operating margin 6.2% 10.4% 6.2% 11.5%
Total adjustments (6.1)% (4.8)% (6.1)% (4.3)%
Operating margin (as reported) 0.1% 5.5% 0.1% 7.2%
Financial Paper Products
Three Months Ended June 30, 2015 vs Six Months Ended June 30, 2015 vs
--------------------------- -------------------------
(Amounts in millions) 2015 2014 2014 2015 2014 2014
-------------------- ---- ---- ---- ---- ---- ----
Revenue (as reported) $18.1 $19.6 $(1.5) $36.4 $42.8 $(6.4)
====================
Adjusted operating income $5.6 $7.6 $(2.0) $12.8 $18.4 $(5.6)
Reorganization and restructuring costs (0.5) (0.7) 0.2 (1.5) (1.0) (0.5)
Compliance enhancement program (0.6) (0.3) (0.3) (1.0) (0.7) (0.3)
Stock-based compensation expense (0.5) (0.5) - (0.9) (0.8) (0.1)
-------------------------------- ---- ---- --- ---- ---- ----
Total adjustments (1.6) (1.5) (0.1) (3.4) (2.5) (0.9)
Operating income (as reported) $4.0 $6.1 $(2.1) $9.4 $15.9 $(6.5)
============================= ==== ==== ===== ==== ===== =====
Adjusted operating margin 30.9% 38.8% 35.2% 43.0%
Total adjustments (8.8)% (7.7)% (9.3)% (5.8)%
Operating margin (as reported) 22.1% 31.1% 25.8% 37.1%
TABLE FOUR
MONEYGRAM INTERNATIONAL, INC.
EBITDA, ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN AND ADJUSTED FREE CASH FLOW
(Unaudited)
Three Months Ended June 30, 2015 vs Six Months Ended June 30, 2015 vs
(Amounts in millions)
2015 2014 2014 2015 2014 2014
---- ---- ---- ---- ---- ----
(Loss) income before income taxes $(27.1) $32.1 $(59.2) $(36.5) $59.4 $(95.9)
Interest expense 11.4 11.4 - 22.5 21.1 1.4
Depreciation and amortization 17.2 13.6 3.6 32.0 26.7 5.3
Amortization of agent signing
bonuses 14.5 12.7 1.8 29.1 24.5 4.6
EBITDA 16.0 69.8 (53.8) 47.1 131.7 (84.6)
Significant items impacting EBITDA:
Pension settlement charge (1) 13.8 - 13.8 13.8 - 13.8
Compliance enhancement program 10.2 7.4 2.8 15.7 14.5 1.2
Stock-based, contingent and
incentive compensation (2) 6.7 5.3 1.4 12.8 8.8 4.0
Reorganization and restructuring
costs 4.6 6.7 (2.1) 14.5 9.8 4.7
Legal and contingent matters (3) 3.6 0.2 3.4 3.7 0.6 3.1
Direct monitor costs 2.8 0.1 2.7 4.7 0.9 3.8
Net securities gains - (22.4) 22.4 - (22.4) 22.4
Capital transaction costs (4) - 1.0 (1.0) - 2.1 (2.1)
Adjusted EBITDA $57.7 $68.1 $(10.4) $112.3 $146.0 $(33.7)
=============== ===== ===== ====== ====== ====== ======
Adjusted EBITDA margin (5) 16.1% 18.3% (2.2)% 16.3% 19.5% (3.2)%
Adjusted EBITDA growth, as reported (15)% (23)%
Adjusted EBITDA growth, constant
currency adjusted (13)% (22)%
Adjusted EBITDA $57.7 $68.1 $(10.4) $112.3 $146.0 $(33.7)
Cash payments for interest (10.6) (10.6) - (21.0) (19.7) (1.3)
Cash payments for taxes (57.7) (0.3) (57.4) (65.3) (0.4) (64.9)
Payments related to IRS tax matter 55.8 - 55.8 61.0 - 61.0
Cash payments for capital
expenditures (32.8) (22.4) (10.4) (59.7) (39.5) (20.2)
Cash payments for agent signing
bonuses (19.8) (4.6) (15.2) (63.8) (9.5) (54.3)
----- ---- -----
Adjusted Free Cash Flow $(7.4) $30.2 $(37.6) $(36.5) $76.9 $(113.4)
======================= ===== ===== ====== ====== ===== =======
(1) Non-cash
charge
resulting
from the
partial
buyout of the
defined
benefit
pension plan.
(2) Stock-based
compensation,
contingent
performance
awards
payable after
three years
and certain
incentive
compensation.
(3) Fees and
expenses
related to
certain legal
and
contingent
matters.
(4) Professional
and legal
fees incurred
for the April
2, 2014
equity
transactions.
(5) Adjusted
EBITDA margin
is calculated
as Adjusted
EBITDA
divided by
total
revenue.
TABLE FIVE
MONEYGRAM INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Amounts in millions, except share
data) June 30, 2015 December 31, 2014
---------------------------------- ------------- -----------------
ASSETS
Cash and cash equivalents $128.6 $250.6
Settlement assets (1) 3,474.4 3,533.6
Property and equipment, net 192.0 165.6
Goodwill 442.5 442.5
Other assets 227.1 249.9
Total assets $4,464.6 $4,642.2
============ ======== ========
LIABILITIES
Payment service obligations $3,474.4 $3,533.6
Debt 958.5 963.5
Pension and other postretirement
benefits 111.4 125.7
Accounts payable and other
liabilities 169.0 202.1
Total liabilities 4,713.3 4,824.9
----------------- ------- -------
STOCKHOLDERS' DEFICIT
Participating convertible preferred
stock -series D, $0.01 par value,
200,000 shares authorized, 71,282
issued at June 30, 2015 and December
31, 2014 183.9 183.9
Common stock, $0.01 par value,
162,500,000 shares authorized,
58,823,567 shares issued at June 30,
2015 and December 31, 2014 0.6 0.6
Additional paid-in capital 991.8 982.8
Retained loss (1,233.8) (1,144.6)
Accumulated other comprehensive loss (57.0) (67.1)
Treasury stock: 5,580,147 and
5,734,338 shares at June 30, 2015
and December 31, 2014, respectively (134.2) (138.3)
------------------------------------
Total stockholders' deficit (248.7) (182.7)
------ ------
Total liabilities and stockholders'
deficit $4,464.6 $4,642.2
=================================== ======== ========
(1) As of
December 31,
2014, we
recast our
Consolidated
Balance
Sheets to
include the
Settlement
cash and
cash
equivalents,
Receivables,
net,
Interest-
bearing
investments
and
Available-
for-sale
investment
in a new
balance
sheet
caption,
entitled
Settlement
assets, in
an amount
equal to
Payment
service
obligations.
The
historically
reported
Assets in
excess of
payment
service
obligations
are now
presented as
unrestricted
Cash and
cash
equivalents
on the
Consolidated
Balance
Sheets.
TABLE SIX
MONEYGRAM INTERNATIONAL, INC.
ADJUSTED NET INCOME and ADJUSTED DILUTED EPS
(Unaudited)
Three Months Ended June 30, Six Months Ended June 30,
(Amounts in millions, except
per share data)
2015 2014 2015 2014
---- ---- ---- ----
Net (loss) income $(12.4) $25.6 $(84.4) $64.6
Net securities gains - (22.4) - (22.4)
Other expenses (1) 41.7 20.7 65.2 36.7
---- ---- ---- ----
Total adjustments (1) 41.7 (1.7) 65.2 14.3
-------------------- ---- ---- ---- ----
Tax impacts of adjustments (2) (15.2) (6.0) (23.8) (11.8)
Tax adjustments (3) - - 63.7 (22.9)
--- --- ---- -----
Adjusted net income $14.1 $17.9 $20.7 $44.2
=================== ===== ===== ===== =====
Diluted (loss) earnings per
common share $(0.20) $0.40 $(1.36) $0.95
Diluted adjustments per common
share $0.43 $(0.12) $1.69 $(0.30)
Diluted adjusted earnings per
common share $0.23 $0.28 $0.33 $0.65
Diluted weighted-average
outstanding common shares and
equivalents 62.1 63.8 62.1 67.8
(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) Represents
adjustments
to income
tax expense
for the IRS
tax
litigation
matter and
a change to
an
uncertain
tax
position.
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