Previous Statements by MGI
» MoneyGram's CEO Presents at Credit Suisse Global Services Conference Call (Transcript)
» MoneyGram International's Management Discusses Appointment of Alex Holmes as Chief Financial Officer Conference Call (Transcript)
» MoneyGram International CEO Presents at Goldman Sachs Technology and Internet Conference (Transcript)
» MoneyGram's CEO Discusses Q4 2011 Results - Earnings Call Transcript
Additionally, today's remarks include certain non-GAAP financial measures, including EBITDA, adjusted EBITDA, and adjusted EBITDA margin and pre-cash flow. Our earnings release includes the full reconciliation of these non-GAAP financial measures to the related GAAP financial measures.Now, I'll turn the call over to Pam. Pamela Patsley Thanks Eric. Good morning everyone. We are extremely pleased with our strong start to the year. Once again we generated double-digit growth in all major money transfer categories. Thanks to a steady stream of new high quality agent, solid same store sales improvement and the continued expansion of our self serviced products. We are particularly encouraged by the ongoing improvement in our bill payment business. Our revenue growth and disciplined expense management is yielding margin expansion and we continue to generate strong pre-cash flow. We are focused on value creating initiatives and are excited about the prospects for our future. We generated revenue growth of 8.2% yielding revenue of $318 million (inaudible) with our annual guidance. Excluding the property bridge divestiture, the revenue growth would have been 8.8%. The top line growth was led by our robust money transfer engine, it’s 15% transaction growth with the highest in 3 years. Our improving bill payment and financial paper products business also contributed to our great quarterly outcome. We made improvements on the bottom line as well. Our adjusted EBITDA of 68 million was 13.4% higher than the previous year. Our adjusted EBITDA margin of 21.5% with a 100 basis point increase. We are pleased with our margin improvement and Alex will give you more color on this in a bit. The first quarter was also strong for us in new agent signings and renewals posting 18% growth, more specifically we are very focused on growing our agents in the top global received markets and marketing to their corresponding quarter payers. This year marks the next step in the evolution of the MoneyGram brand as a global brand that matters to consumers and agents. We have begun rolling out our new visual identity and brand positioning which includes a new logo and tagline, bringing you closer.
We believe the updated identity conveys a fresh vibrant and energetic new look for our brand. In the second quarter, we’ll launch the full global campaign. I am very excited about this next step for our brand and I am confident our new logo will continue to differentiate us from the competition and position us well for the future. Also, in the quarter we continued our focus on promoting our global brand locally. In March, we introduced Moneygrado sa MoneyGram, our first global marketing campaign specifically designed to reach more than 100 million Filipinos. The campaign features native TV and film celebrity Robin Padilla in Tagalog the official language of the Philipines. Moneygrado roughly translates the money for sure, delivering a message of certainty, security and convenience. The Moneygrado campaign represents MoneyGram’s commitment in getting closer to our customers not only geographically, but through messages that are culturally and emotionally relevant.Finally, alternative channels represented 4.8% of money transfer revenue in the quarter growing an impressive 61% over the prior year. Our focus on MoneyGram Online and self service offerings are creating tremendous growth. Now, let’s look specifically at the money transfer business and that is U.S. to U.S., U.S. outbound and sends originated outside of the U.S. We’ll start with our very strong growth in the U.S. to U.S. business. During the quarter, we generated 15% transaction growth continuing our fourth quarter momentum, stacking up the sixth consecutive quarter with double digit transaction growth in addition to the strong transaction growth revenue growth accelerated to 12%. In the quarter, we’ve signed a multi-year agreement to sell our MoneyGram Express money transfer products to Speedway SuperAmerica, a convenient store chain with a 1375 locations primarily in the Midwest. This contract also renews our longstanding money order relationship. This is a significant add to our expanding U.S. retail distribution network. MoneyGram Express is a self service card that hangs on a “J” hook in predetermined denomination and allows retailers to offer money transfers with a high speed of service. This is another great finding for our self service offering and our MoneyGram Express offering in particular. Read the rest of this transcript for free on seekingalpha.com