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CST: 06/12/2019 09:52:25   

International Money Express, Inc. Announces Strong Results for the Third Quarter 2019

24 Days ago

Third Quarter 2019 - Financial Highlights

  • Revenues grew 17.7% versus the prior year period based on strong performance across our business in the LATAM corridor

  • Net Income totaled $4.0 million, compared to a Net Loss of ($13.4) million in the third quarter of 2018

  • Basic and Diluted Earnings per Share of $0.11 compared to ($0.43) per Share loss in the third quarter of 2018

  • Adjusted Net Income totaled $9.5 million or $0.25 per Basic and Diluted Earnings per Share
  • Adjusted EBITDA increased by 22.4% over the prior year to $16.5 million based on strong revenue growth
     
  • Adjusted EBITDA margin expanded 75bps compared to the prior year period to 19.3% for Third Quarter 2019

MIAMI, Nov. 11, 2019 (GLOBE NEWSWIRE) -- International Money Express, Inc. (NASDAQ: IMXI) (“Intermex” or the “Company”), a leading money remittance services company focused primarily on the Latin America and Caribbean corridor, today announced results for the Third Quarter 2019 and will host a conference call to discuss results at 5:00pm ET.

Revenue, Net Income, Earnings per Share, and Adjusted EBITDA

Intermex generated revenue of $85.3 million in the third quarter, an increase of 17.7% over the prior year period. Revenue growth was primarily driven by volume growth in the LATAM corridor.

The Company reported net income in the third quarter of $4.0 million compared to a ($13.4) million loss in the prior year period primarily driven by revenue growth and lower interest expense offset by a one-time charge related to a legal contingency. Adjusted net income totaled $9.5 million compared to $1.3 million in the prior year period.

Basic and diluted earnings per share in the third quarter of 2019 were $0.11 compared to a loss of ($0.43) per share in the prior year period. Adjusted earnings per diluted share totaled $0.25 for the third quarter 2019.

Adjusted EBITDA in the third quarter of 2019 grew 22.4% over the comparable period in the prior year to $16.5 million, driven primarily by revenue growth. These results represent an Adjusted EBITDA margin of 19.3%, which is an expansion of 75bps compared to the prior year period margin of 18.5%.

Intermex President, Chairman and Chief Executive Officer Robert Lisy commented, “We are pleased with another strong quarter of results. Intermex continues to gain market share in our core U.S. to Latin America money transfer markets. Our third quarter results reflect our ability to generate strong profitability even as we grow more rapidly in our lower unit revenue markets. As a result, we are pleased to raise our 2019 Financial Guidance range for Adjusted EBITDA to $56 million to $58 million from $54 million to $58 million. Given mix shift dynamics we are seeing in the business, we are also adjusting our revenue guidance to $315 million to $325 million from $320 million to $330 million.”

Market Highlights
Year-to-date as of September 30, based on industry data, Intermex has captured 27% of the total growth in U.S. to Mexico remittance volume, and 37% of the total growth in U.S. to Guatemala remittance volume.

Non-GAAP Measures
For the Company, Adjusted Net Income, Adjusted Earnings per share and Adjusted EBITDA are the primary metrics used by management to evaluate the financial performance of our business. We present these Non-GAAP Measures because we believe they are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Further, we believe they are helpful in highlighting trends in our operating results, because it excludes, among other things, certain results of decisions that are outside the control of management, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the jurisdictions in which we operate and capital investments.

Adjusted Net Income is defined as net income adjusted to add back certain charges and expenses, such as transaction costs, non-cash amortization resulting from push-down accounting, and non-cash compensation costs, as these charges and expenses are not considered a part of our core business operations and are not an indicator of ongoing, future company performance.

Adjusted EBITDA is defined as net income before depreciation and amortization, interest expense, income taxes, and also adjusted to add back certain charges and expenses, such as transaction costs and non-cash compensation costs, as these charges and expenses are not considered a part of our core business operations and are not an indicator of ongoing, future company performance.

Adjusted Net Income, Adjusted Earnings per share and Adjusted EBITDA are non-GAAP financial measures and should not be considered as an alternative to operating income or net income as a measure of operating performance or cash flows or as a measure of liquidity. Non-GAAP financial measures are not necessarily calculated the same way by different companies and should not be considered a substitute for or superior to U.S. GAAP.

Reconciliations of Net Income, the Company’s closest GAAP measure, to Adjusted Net Income and Adjusted EBITDA as well as a reconciliation of Net Income per share to Adjusted Net Income per share are set forth below following the consolidated financial statements. A quantitative reconciliation of projected 2019 Adjusted EBITDA to the most comparable GAAP measure is not available without unreasonable efforts because of the inherent difficulty in forecasting and qualifying the amounts necessary under GAAP guidance for one-time, non-recurring items including, without limitation, costs related to acquisitions and the registration of the Company’s securities, and losses related to legal contingencies or disposal of assets.

Investor and Analyst Conference Call / Presentation
Intermex will host a conference call and webcast presentation at 5:00 p.m. Eastern Time today. The conference call can be heard by dialing: 1-877-423-9813 (U.S.) or 1-201-689-8573 (outside the U.S.) ten minutes prior to the start of the call.

The conference call and accompanying slides will be available via webcast at https://investors.intermexonline.com. Registration for the event is required, so please register at least five minutes prior to the scheduled start time.

A webcast replay will be available approximately 2-4 hours after the conference call at https://investors.intermexonline.com/.

Safe Harbor Compliance Statement for Forward-Looking Statements
This press release contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect our current view with respect to certain events that could have an effect on our future financial performance. These statements relate to expectations concerning matters that are not historical fact and may include the words or phrases such as “will,” “should,” “expects,” “believes,” “anticipates,” “plans,” “intends,” “estimates,” “approximately,” “our planning assumptions,” “future outlook,” and similar expressions. Except for historical information, matters discussed in such statements are forward-looking statements. All of these forward-looking statements are based largely on information currently available to our management and on our current expectations, assumptions, estimates, judgments and projections about our business and our industry, and are subject to various risks and uncertainties that could cause actual results to differ materially from historical results or those currently anticipated. While we believe these expectations, assumptions, estimates, judgments and projections are reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which are beyond our control. These and other important factors may cause our actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements, or could affect our share price. Accordingly, there is no assurance that our expectations will, in fact, occur or that our estimates or assumptions will be correct, and we caution investors and all others not to place undue reliance on such forward-looking statements. Some of the factors that could cause actual results to differ materially from those expressed or implied by the forward-looking statements include among other things, competition in the markets in which we operate; our ability to maintain agent relationships on terms consistent with those currently in place; our ability to maintain banking relationships necessary for us to conduct our business; credit risks from our agents and the financial institutions with which we do business; bank failures, sustained financial market illiquidity, or illiquidity at our clearing, cash management or custodial financial institutions; new technology or competitors that disrupt the current ecosystem; cyber-attacks or disruptions to our information technology, computer network systems and data centers; our success in developing and introducing new products, services and infrastructure; customer confidence in our brand and in consumer money transfers generally; our ability to maintain compliance with the regulatory requirements of the jurisdictions in which we operate or plan to operate; international political factors or implementation of tariffs, border taxes or restrictions on remittances or transfers of money out of the United States; changes in tax laws and unfavorable outcomes of tax positions we take; political instability, currency restrictions and devaluation in countries in which we operate or plan to operate; weakness in U.S. or international economic conditions; change or disruption in international migration patterns; our ability to protect our brand and intellectual property rights; our ability to retain key personnel; and other factors described in the “Risk Factors” section in periodic reports we file with the Securities and Exchange Commission and our prospectus supplement, dated September 11, 2019, filed pursuant to Rule 424(b)(4). All statements other than statements of historical fact included in this press release are forward-looking statements including, but not limited to, expected financial outlook for the year 2019 and all forward-looking statements that are made or attributable to us are expressly qualified in their entirety by this cautionary notice. Any forward-looking statement that we make in this press release speaks only as of November 11, 2019. We undertake no obligation to update or revise, or to publicly announce any update or revision to, any of the forward-looking statements made herein, whether as a result of new information, future events or otherwise.

About International Money Express, Inc.
At International Money Express, Inc. (NASDAQ: IMXI), the customer is at the center of everything we do. We use proprietary technology that enables consumers to send money primarily from the United States to 17 countries in Latin America and the Caribbean, including Mexico and Guatemala and four countries in Africa. We offer the electronic movement of money and data to our customers through our network of sending and paying agents located in all 50 states, the District of Columbia, Puerto Rico and Canada, and throughout Latin America, the Caribbean and other territories. Our services are also available digitally through intermexonline.com. We were founded in 1994 and are headquartered in Miami, Florida with offices in Puebla, Mexico, and Guatemala City, Guatemala.

Investor Relations
Sloan Bohlen
investors@intermexonline.com

International Money Express, Inc.

CONSOLIDATED BALANCE SHEETS
           
       
    September 30,   December 31,  
(in thousands of dollars)   2019   2018  
ASSETS   (Unaudited)      
Current assets:          
Cash   $ 94,189   $ 73,029  
Accounts receivable, net of allowance of $772 and          
$842, respectively     53,763     35,795  
Prepaid wires     9,382     26,655  
Other prepaid expenses and current assets     2,267     3,171  
Total current assets     159,601     138,650  
           
Property and equipment, net     11,550     10,393  
Goodwill     36,260     36,260  
Intangible assets, net     29,720     36,395  
Deferred tax asset, net     2,032     2,267  
Other assets     1,744     1,874  
Total assets   $ 240,907   $ 225,839  
           
LIABILITIES AND STOCKHOLDERS' EQUITY          
Current liabilities:          
Current portion of long-term debt, net   $ 6,405   $ 3,936  
Accounts payable     14,100     11,438  
Wire transfers and money orders payable     57,339     36,311  
Accrued and other     24,061     16,355  
Total current liabilities     101,905     68,040  
           
Long-term liabilities:          
Debt, net     89,383     113,326  
Total long-term liabilities     89,383     113,326  
           
Stockholders' equity:          
Total stockholders' equity     49,619     44,473  
Total liabilities and stockholders' equity   $ 240,907   $ 225,839  
           


CONSOLIDATED STATEMENTS OF OPERATIONS
       
  Three Months Ended
  September 30,
(in thousands of dollars) 2019   2018
       
  (Unaudited)
Revenues:      
Wire transfer and money order fees, net $ 72,468   $ 61,332  
Foreign exchange   12,272     10,697  
Other income   594     479  
Total revenues $ 85,334   $ 72,508  
       
Operating expenses:      
Service charges from agents and banks   56,319     48,305  
Salaries and benefits   7,612     10,959  
Other selling, general and      
administrative expenses   9,788     5,207  
Transaction costs   -     6,305  
Depreciation and amortization   3,179     4,142  
Total operating expenses   76,898     74,918  
       
Operating income (loss)   8,436     (2,410 )
       
Interest expense   2,145     3,434  
       
Income (loss) before income taxes   6,291     (5,844 )
       
Income tax provision   2,253     7,569  
       
Net income (loss) $ 4,038   $ (13,413 )
       
Income (loss) per common share      
Basic and diluted $ 0.11   $ (0.43 )
       
Weighted-average common shares      
outstanding:      
Basic   37,984,316     30,975,338  
Diluted   38,286,702     30,975,338  
             


Reconciliation from GAAP Net income (loss) to Adjusted Net Income
         
         
         
  Three Months Ended September 30,  
         
(in thousands) 2019
  2018
 
         
Net income (loss) $ 4,038     $ (13,413 )  
Adjusted for:        
Transaction costs   -       6,305    
Incentive units plan   -       4,023    
Share-based compensation, 2018 Plan   634       430    
Management fee   -       195    
TCPA settlement   3,358       -    
Offering costs   766       -    
Registration costs   -       615    
Other employee severance   -       106    
Other charges and expenses   86       38    
Amortization of intangibles   2,312       3,098    
Income tax benefit related to Adjustments   (1,654 )     (146 )  
Adjusted Net income $ 9,540     $ 1,251    
         
Adjusted income per Share        
Basic $ 0.25     $ 0.04    
Diluted $ 0.25     $ 0.04    
         


Reconciliation from GAAP Net income (loss) to Adjusted EBITDA
       
       
       
  Three Months Ended September 30,
       
(in thousands of dollars) 2019   2018
       
Net income (loss) $ 4,038     $ (13,413 )
       
Adjusted for:      
Interest expense   2,145       3,434  
Income tax provision   2,253       7,569  
Depreciation and amortization   3,179       4,142  
EBITDA   11,615       1,732  
Transaction costs   -       6,305  
Incentive units plan   -       4,023  
Share-based compensation, 2018 Plan   634       430  
Management fee   -       195  
TCPA settlement   3,358       -  
Registration costs   766       615  
Other employee severance   -       106  
Other charges and expenses   86       38  
Adjusted EBITDA $ 16,459     $ 13,444  
       

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