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TheStreet Open House

MoneyGram International Reports First Quarter 2012 Financial Results

MoneyGram International, Inc. (NYSE:MGI), a leading global payment services company, reported financial results for the first quarter of 2012, which ended March 31, 2012. Total revenue of $318.1 million increased 8 percent, compared to $294.0 million in the first quarter of 2011. Total fee and other revenue increased 9 percent to $314.9 million, from $290.0 million.

  • Money transfer fee and other revenue increased 12 percent over the prior year, and increased 13 percent on a constant currency basis.
  • Money transfer transaction volume increased an impressive 15 percent over the prior year, led by:
    • 17 percent growth in sends originated outside of the U.S.
    • 15 percent growth in U.S.-to-U.S. transaction volume
    • 12 percent growth in U.S. outbound transaction volume on the strength of U.S.-to-Mexico, which grew 19 percent
  • Global agent locations increased 18 percent to 275,000, continuing the company’s strong growth momentum in agent network expansion.
  • The company reported net income of $10.3 million and EBITDA of $55.0 million. Both net income and EBITDA were impacted by:
    • $5.8 million of restructuring and reorganization costs
    • $3.6 million of certain legal expenses
    • $3.5 million of stock-based compensation
  • Adjusted EBITDA for the first quarter increased 13 percent to $68.4 million from $60.3 million in the prior year. Adjusted EBITDA margin in the quarter was 21.5 percent, up from 20.5 percent in the same period last year.
  • Diluted income per common share was $0.14, including a negative $0.05 per share impact from restructuring and reorganization costs and $0.03 due to certain legal expenses.

“The year is off to a strong start. We generated double-digit growth in all major money transfer categories thanks to a steady stream of new, high-quality agents, solid same-store sales improvements and the continued expansion of our self-service products. We are particularly encouraged by the ongoing improvement in our bill payment business,” said Pamela H. Patsley, chairman and chief executive officer. “Our revenue growth and disciplined expense management is yielding margin expansion, and we continue to generate strong free cash flow. We are focused on value-creating initiatives and are excited about the prospects for our future.”

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