MoneyGram International, Inc. (NYSE:MGI), a leading global payment services company, reported financial results for the fourth quarter and full year ended December 31, 2012.
Total revenue was $1,341.2 million, an increase of 7 percent over the
- Total fee and other revenue increased 8 percent to $1,328.6 million from $1,230.9 million in the prior year.
- Money transfer fee and other revenue increased 10 percent over the prior year to $1,148.5 million, and increased 13 percent on a constant currency basis.
Money transfer transaction volume increased 14 percent over the prior
year, led by:
- 18 percent growth in sends originated outside of the U.S.
- 13 percent growth in U.S. outbound on the strength of U.S.-to-Mexico sends, which grew 21 percent
- 10 percent growth in U.S.-to-U.S. sends.
- Adjusted EBITDA increased 6 percent to $278.9 million and in constant currency adjusted EBITDA increased 8 percent to $283.8 million. Adjusted EBITDA margin was 20.8 percent, down from 21.1 percent in the prior year. Adjusted EBITDA was negatively impacted by $4.9 million related to a lower euro valuation against the U.S. dollar compared to the prior year, $4.3 million from lower investment revenue, and $4.0 million from higher compliance related investments.
The Company reported EBITDA of $139.9 million and a net loss of
($49.3) million. Both EBITDA and net loss were primarily impacted by:
- $100.0 million forfeiture related to the settlement of the investigation by the U.S. Attorney’s Office for the Middle District of Pennsylvania (“MDPA”)
- $19.2 million of legal expenses primarily related to the MDPA settlement and the settled shareholder lawsuit
- $19.3 million of restructuring and reorganization costs
- $10.0 million in gains from the sale of securities previously written down
- $9.2 million of stock-based compensation expense
- $1.0 million of severance and related costs.
- Diluted loss per common share was ($0.69), including a negative $1.58 per share impact due to the aforementioned forfeiture and legal expenses, a negative $0.17 per share impact from restructuring and reorganization costs, a negative $0.08 per share impact from stock-based compensation, offset by a $0.09 per share benefit from gains on the sales of securities previously written down.
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