The Money Transfer Segment reports the following results for the second quarter 2013 compared with the same period of 2012:
- Revenues of $93.4 million, a 21% increase from $77.5 million (20% increase on a constant currency basis).
- Operating income of $8.8 million, a 31% increase from $6.7 million (30% increase on a constant currency basis).
- Adjusted EBITDA of $13.3 million, an 18% increase from $11.3 million (17% increase on a constant currency basis).
- Total transactions of 8.9 million, a 20% increase from 7.4 million.
- Network locations of approximately 204,000 as of June 30, 2013, a 29% increase from approximately 158,000.
Revenue, adjusted EBITDA and operating income growth in the quarter was driven by a 20% increase in total transactions. Transaction growth was attributable to continued sales successes, economic recovery in certain markets and expansion of the network, which grew 29% over the same quarter last year. Money transfer transactions increased 22%. U.S.-initiated transfers increased 26% year-over-year, including a 27% increase in transfers to Mexico. Non-U.S. initiated transfers increased 15%.
Corporate and Other reports $8.4 million of expense for the second quarter 2013 compared with $7.2 million for the second quarter 2012. The increase in Corporate expense is primarily attributable to long-term stock-based incentive compensation expense related to improved Company performance.
Balance Sheet and Financial PositionUnrestricted cash on hand was $189.9 million as of June 30, 2013, compared to $161.5 million as of March 31, 2013. Cash increased primarily as a result of cash flows generated from operations. Total indebtedness was $295.5 million as of June 30, 2013, compared to $291.1 million as of March 31, 2013. Guidance The Company currently expects adjusted cash earnings per share for the third quarter 2013, assuming foreign currency exchange rates remain stable through the end of the quarter, to be approximately $0.54. This strong adjusted cash earnings per share guidance reflects developments in the business, which now produces seasonally higher third quarter results more consistent with the Company's historically higher fourth quarter earnings.