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TheStreet Open House

MoneyGram International Reports First Quarter 2014 Financial Results

Stocks in this article: MGI

MoneyGram (NASDAQ:MGI), a leading global money transfer and payment services company, today reported financial results for its first quarter ended March 31, 2014.

  • Total revenue was $374.9 million, an increase over the prior year of 10 percent on a reported basis and 9 percent in constant currency.
  • Money transfer revenue increased to $326.1 million, representing growth of 11 percent over the prior year on a reported basis and 10 percent in constant currency.
  • Money transfer transactions increased 12 percent over the prior year, led by:
    • 18 percent growth in U.S. outbound sends, including 31 percent growth in U.S. to Mexico
    • 11 percent growth in sends originated outside of the U.S.
    • 7 percent growth in U.S.-to-U.S. sends.
  • Global agent locations increased 6 percent over the prior year to 339,000.
  • Self-service money transfer revenue grew 35 percent in the quarter and represented 7 percent of money transfer revenue.
  • MoneyGram Online money transfer and bill payment transaction volume increased 36 percent and revenue was up 26 percent over the prior year.
  • The Company reported EBITDA of $61.9 million, and pre-tax income of $27.3 million which were impacted by:
    • $7.1 million of expenses related to the compliance enhancement program
    • $3.5 million of stock-based and contingent performance compensation expense
    • $3.1 million of expenses related to reorganization and restructuring costs
    • $1.1 million of expenses related to capital transaction costs
    • $0.8 million of expenses related to direct monitor costs
    • $0.4 million of legal expenses related to certain matters.
  • Adjusted EBITDA for the first quarter was $77.9 million, up 8 percent on a reported basis and 6 percent on a constant currency basis. In the quarter, adjusted EBITDA margin was 20.8 percent, down from 21.2 percent in the prior year.
  • Diluted earnings per common share was $0.54. Adjusted diluted earnings per share was $0.37.
  • Adjusted free cash flow for the quarter was $46.7 million, up 42 percent from $32.8 million in the prior year.

“We had another great quarter, posting our twelfth consecutive quarter of double-digit money transfer constant currency revenue growth and 42 percent growth in adjusted free cash flow. Money transfer transaction growth was impressive at 12% as U.S. outbound transactions continued their rapid pace and sends outside of the U.S. growth accelerated sequentially. I am also proud of the consistently robust self-service business with 54% transaction growth and 35% revenue growth in the quarter,” said Pamela H. Patsley, MoneyGram’s Chairman and CEO. “We are executing extremely well in a dynamic industry, building relevant products with a strong brand that is trusted by agents and consumers around the world. We remain focused on our long term goal of $2 billion in annual revenue in 2017, with 15 to 20 percent of money transfer revenue generated from self-service products."

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