Third Quarter 2018 - Financial Highlights
- Revenues grew 28.6% versus the prior year period based on strong performance across our business in
Mexico andGuatemala
- GAAP Net Loss totaled
$13.4 million
- Adjusted EBITDA increased by 50.7% over the prior year to
$13.4 million based on strong revenue growth and growing operating leverage in the business
- Adjusted EBITDA margin was 18.5% for third quarter 2018, which represents a 270 basis point expansion over the prior year period
Third Quarter 2018 – Business Highlights
- Intermex began trading as a public company on
July 27, 2018 following the closing of its previously announced transaction with FinTech Acquisition Corp II (“FinTech”)
- In May of 2018 Intermex recorded its first month with over 2 million transactions, and has recorded over 2 million transactions every month since.
Intermex generated revenue of
The Company reported GAAP net loss in the third quarter of
Adjusted EBITDA in the third quarter of 2018 grew 50.7% over the comparable period in the prior year to
Intermex President, Chairman and Chief Executive Officer
Market Highlights
Year-to-date as of
Non-GAAP Measures
For the Company, Adjusted EBITDA is one of the primary metrics used by management to evaluate the financial performance of our business. We present Adjusted EBITDA because we believe it is frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Further, we believe it is 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 EBITDA is defined as net income (loss) 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 EBITDA is a non-GAAP financial measure 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 GAAP.
A reconciliation of GAAP Net loss to Adjusted EBITDA is available in the enclosed exhibits.
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 the Private Securities Litigation Reform Act of 1995. All of these forward-looking statements are based on our current expectations, assumptions, estimates and projections. While we believe these expectations, assumptions, estimates 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. 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; 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
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| International Money Express, Inc. | ||||||
| CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||
| Successor Company | ||||||
| September 30, | December 31, | |||||
| 2018 | 2017 | |||||
| ASSETS | (Unaudited) | |||||
| Current assets: | ||||||
| Cash | $ | 82,490,398 | $ | 59,155,618 | ||
| Accounts receivable, net of allowance of $340,178 and | ||||||
| $307,562, respectively | 80,923,807 | 51,374,377 | ||||
| Prepaid wires | 5,119,778 | 7,675,491 | ||||
| Other prepaid expenses and current assets | 3,472,124 | 900,386 | ||||
| Total current assets | 172,006,107 | 119,105,872 | ||||
| Property and equipment, net | 9,525,295 | 8,490,794 | ||||
| Goodwill | 36,259,666 | 36,259,666 | ||||
| Intangible assets, net | 39,389,769 | 48,741,032 | ||||
| Deferred tax asset, net | - | 1,748,854 | ||||
| Other assets | 639,119 | 1,706,693 | ||||
| Total assets | $ | 257,819,956 | $ | 216,052,911 | ||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||
| Current liabilities: | ||||||
| Current portion of long-term debt, net | $ | 4,078,627 | $ | 3,913,436 | ||
| Accounts payable | 14,060,179 | 8,919,796 | ||||
| Wire transfers and money orders payable | 78,152,404 | 48,276,649 | ||||
| Accrued and other | 14,018,061 | 11,514,449 | ||||
| Total current liabilities | 110,309,271 | 72,624,330 | ||||
| Long term liabilities: | ||||||
| Deferred tax liability, net | 5,157,019 | - | ||||
| Debt, net | 104,423,502 | 107,526,462 | ||||
| Total long term liabilities | 109,580,521 | 107,526,462 | ||||
| Stockholders' equity: | ||||||
| Total stockholders' equity | 37,930,164 | 35,902,119 | ||||
| Total liabilities and stockholders' equity | $ | 257,819,956 | $ | 216,052,911 | ||
| CONDENSED CONSOLIDATED STATEMENT OF OPERATIONS | ||||||||||||||||||||
| Predecessor | ||||||||||||||||||||
| Successor Company | Company | |||||||||||||||||||
| Nine | Period from | Period from | ||||||||||||||||||
| Three Months Ended | Months Ended | February 1, 2017 | January 1, 2017 | |||||||||||||||||
| September 30, | September 30, | to September 30, | to January 31, | |||||||||||||||||
| 2018 | 2017 | 2018 | 2017 | 2017 | ||||||||||||||||
| (Unaudited) | ||||||||||||||||||||
| Revenues: | ||||||||||||||||||||
| Total revenues | $ | 72,508,466 | $ | 56,393,294 | $ | 198,843,890 | $ | 141,771,122 | $ | 14,425,343 | ||||||||||
| Operating expenses: | ||||||||||||||||||||
| Service charges from agents and banks | 48,305,007 | 37,846,027 | 132,564,938 | 94,607,887 | 9,440,774 | |||||||||||||||
| Salaries and benefits | 10,959,507 | 5,983,784 | 24,632,910 | 16,395,185 | 4,530,308 | |||||||||||||||
| Other selling, general and | ||||||||||||||||||||
| administrative expenses | 5,206,932 | 4,163,419 | 13,390,449 | 10,400,190 | 1,063,379 | |||||||||||||||
| Transaction costs | 6,304,972 | - | 10,319,283 | 6,212,602 | 3,917,188 | |||||||||||||||
| Depreciation and amortization | 4,142,139 | 4,553,042 | 11,749,513 | 12,056,986 | 381,746 | |||||||||||||||
| Total operating expenses | 74,918,557 | 52,546,272 | 192,657,093 | 139,672,850 | 19,333,395 | |||||||||||||||
| Operating (loss) income | (2,410,091 | ) | 3,847,022 | 6,186,797 | 2,098,272 | (4,908,052 | ) | |||||||||||||
| Interest expense | 3,433,731 | 4,612,430 | 10,109,664 | 8,107,258 | 613,742 | |||||||||||||||
| Loss before income taxes | (5,843,822 | ) | (765,408 | ) | (3,922,867 | ) | (6,008,986 | ) | (5,521,794 | ) | ||||||||||
| Income tax provision (benefit) | 7,569,174 | (191,727 | ) | 8,185,546 | 1,052,479 | (2,203,373 | ) | |||||||||||||
| Net loss | (13,412,996 | ) | (573,681 | ) | (12,108,413 | ) | (7,061,465 | ) | (3,318,421 | ) | ||||||||||
| Other comprehensive income (loss) | 22,452 | 3,859 | 7,351 | 18,990 | (2,453 | ) | ||||||||||||||
| Comprehensive loss | $ | (13,390,544 | ) | $ | (569,822 | ) | $ | (12,101,062 | ) | $ | (7,042,475 | ) | $ | (3,320,874 | ) | |||||
| Reconciliation from GAAP Net loss to Adjusted EBITDA | ||||||||||||||||||||
| Predecessor | ||||||||||||||||||||
| Successor Company | Company | |||||||||||||||||||
| Period from | Period from | |||||||||||||||||||
| Three Months Ended September 30, | Nine Months | February 1, 2017 | January 1, 2017 | |||||||||||||||||
| Ended September 30, | to September 30, | to January 31, | ||||||||||||||||||
| (in thousands) | 2018 | 2017 | 2018 | 2017 | 2017 | |||||||||||||||
| Net loss | $ | (13,412,996 | ) | $ | (573,681 | ) | $ | (12,108,413 | ) | $ | (7,061,465 | ) | $ | (3,318,421 | ) | |||||
| Adjusted for: | ||||||||||||||||||||
| Interest expense | 3,433,731 | 4,612,430 | 10,109,664 | 8,107,258 | 613,742 | |||||||||||||||
| Income tax provision (benefit) | 7,569,174 | (191,727 | ) | 8,185,546 | 1,052,479 | (2,203,373 | ) | |||||||||||||
| Depreciation and amortization | 4,142,139 | 4,553,042 | 11,749,513 | 12,056,986 | 381,746 | |||||||||||||||
| EBITDA | 1,732,048 | 8,400,064 | 17,936,310 | 14,155,258 | (4,526,306 | ) | ||||||||||||||
| Transaction costs | 6,304,972 | - | 10,319,283 | 6,212,602 | 3,917,188 | |||||||||||||||
| Incentive units plan | 4,022,739 | 287,440 | 4,735,336 | 1,534,655 | - | |||||||||||||||
| Share-based compensation, 2018 Plan | 430,250 | - | 430,250 | - | - | |||||||||||||||
| Change in control adjustment for stock options | - | - | - | - | 2,812,919 | |||||||||||||||
| Management fee | 195,000 | 195,000 | 585,000 | 520,000 | - | |||||||||||||||
| TCPA settlement | - | - | 191,500 | - | - | |||||||||||||||
| Transition expenses | - | - | 347,909 | - | - | |||||||||||||||
| Costs related to registering warrants | 615,000 | - | 615,000 | - | - | |||||||||||||||
| Other employee severance | 105,950 | - | 105,950 | - | - | |||||||||||||||
| Other charges and expenses | 38,124 | 36,444 | 346,568 | 106,489 | 105,314 | |||||||||||||||
| Adjusted EBITDA | $ | 13,444,083 | $ | 8,918,948 | $ | 35,613,106 | $ | 22,529,004 | $ | 2,309,115 | ||||||||||
Source: International Money Express, Inc.