UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 12, 2019
INTERNATIONAL MONEY EXPRESS, INC.
(Exact name of registrant as specified in charter)
|
Delaware
|
001-37986
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47-4219082
|
|
(State or Other Jurisdiction of Incorporation)
|
(Commission File Number)
|
(I.R.S. Employer Identification No.)
|
|
9480 South Dixie Highway, Miami, Florida
|
33156
|
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
Registrant’s telephone number, including area code: (305)
671-8000
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:
| ☐ |
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
|
| ☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
|
|
☐
|
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
|
| ☐ |
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
|
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this
chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☒
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any
new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
|
Item 2.02.
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Results of Operations and Financial Condition.
|
On March 12, 2019,
International Money Express, Inc., a Delaware corporation, (the “Company”) issued a press release announcing its earnings and financial results for the fiscal quarter and year ended December 31, 2018. A copy of the press release is furnished as
Exhibit 99.1 to this Current Report on Form 8-K and is incorporated herein by reference.
In connection with
the press release, the Company will hold a telephone conference call on March 12, 2019. A copy of the presentation for the conference call will be made available on the Company’s website for viewing by call participants. Copies of the
presentation slides are attached hereto as Exhibit 99.2 to this Current Report on Form 8-K.
In accordance with General Instruction B.2 of Form 8-K, the information in this Current Report on Form 8-K, including Exhibit
99.1 and Exhibit 99.2, shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liability of that section, and shall not be incorporated by
reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.
|
Item 9.01.
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Financial Statements and Exhibits.
|
|
(d)
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Exhibits
|
|
Exhibit No.
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Description
|
|
|
Press release, dated March 12, 2019, issued by International Money Express, Inc.
|
||
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Presentation Slides for Conference Call to be held by International Money Express, Inc. on March 12, 2019
|
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
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INTERNATIONAL MONEY EXPRESS, INC.
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||
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Dated: March 12, 2019
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By:
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/s/ Robert Lisy
|
|
Name:
|
Robert Lisy
|
|
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Title:
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President and Chief Executive Officer
|
|
Exhibit 99.1
FOR IMMEDIATE RELEASE
International Money Express, Inc. Announces earnings for the Fourth Quarter and Full Year 2018
Fourth Quarter 2018 - Financial Highlights
| · |
Revenues grew 26.6% versus the prior year period based on strong
performance across our business in Mexico and Guatemala
|
| · |
Net Income totaled $4.9 million compared to a net loss in the fourth
quarter 2017 as a result of strong revenue growth
|
| · |
Earnings per share were $0.13 as a result of our quarterly net income
|
| · |
Adjusted EBITDA increased by 35.0% over the prior year to $11.5
million based on strong revenue growth and growing operating leverage in the business
|
| · |
Adjusted EBITDA margin was 15.4% for fourth quarter 2018, which
represents a 95 basis point expansion over the prior year period
|
Full Year 2018 - Financial Highlights
| · |
Revenues grew 27.1% versus prior year based on strong performance
across our business in Mexico and Guatemala
|
| · |
Net Loss totaled $7.2 million decreased by 46.3% primarily as a result
of revenue growth
|
| · |
Loss per share was $0.28 for the full year compared to $0.59 loss last
year
|
| · |
Adjusted EBITDA increased by 41.2% over the prior year to $47.1
million based on strong revenue growth and growing operating leverage in the business
|
| · |
Adjusted EBITDA margin was 17.2% for full year 2018, which represents
a 172 basis point expansion over prior year
|
MIAMI, Florida March 12, 2019: 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 fourth quarter and full year ended December
31, 2018 and will host a conference call to discuss results at 5:00pm ET.
Intermex generated revenue of $75.1 million in the fourth quarter, an increase of 26.6% over prior year. For the full year 2018, revenue was $273.9
million, an increase of 27.1% over full year 2017. Revenue growth was primarily driven by volume growth in both Mexico and Guatemala.
The Company reported net income in the fourth quarter of $4.9 million compared to $3.1 million loss in the prior year period, primarily as a result
of strong revenue growth. For the full year 2018, the Company reported net loss of $7.2 million compared to $13.5 million loss for full year 2017, primarily as a result of strong revenue growth and improved operating efficiency.
Earnings per share in the fourth quarter of 2018 were $0.13 compared to loss per share of $0.18 in the prior year period. For the full year 2018,
the Company reported loss per share of $0.28 compared to loss per share of $0.59 for the full year 2017.
Adjusted EBITDA in the fourth quarter of 2018 grew 35.0% over the comparable period in the prior year to $11.5 million driven by volume growth
coupled with the higher foreign exchange income and operating efficiency. For the full year 2018, Adjusted EBITDA grew 41.2% over full year 2017 to $47.1 million. This strong full year performance represents an Adjusted EBITDA margin of 17.2%,
which was up 172 basis points over full year 2017.
Intermex President, Chairman and Chief Executive Officer Robert Lisy commented “Intermex continues to drive impressive growth and increased market
share against the large and expanding $89 billion US to Latin America money transfer market. Our fourth quarter and full year results again displayed our ability to generate strong revenue growth and drive profitability as our business continues to
scale.”
Market Highlights
Year-to-date as of December 31, based on industry data, Intermex has captured 41% of the total growth in US to Mexico remittance volume, and 42% of
the total growth in US to Guatemala remittance volume.
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 U.S. GAAP.
A reconciliation of Net (loss) income, the Company’s closest GAAP measure, 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 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. 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. Any forward-looking statement that we make in this press release speaks only as of March 12, 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 Latin America and the Caribbean, including Mexico and Guatemala. 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 and Puerto Rico, and throughout Latin America, the Caribbean and other territories. Our services are also available digitally through intermexonline.com. 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
|
Successor Company
|
||||||||
|
(in thousands of dollars)
|
December 31,
2018 |
December 31,
2017 |
||||||
|
ASSETS
|
||||||||
|
Current assets:
|
||||||||
|
Cash
|
$
|
73,029
|
$
|
59,156
|
||||
|
Accounts receivable, net of allowance of $842 thousand and $566 thousand, respectively
|
35,795
|
51,374
|
||||||
|
Prepaid wires
|
26,655
|
7,676
|
||||||
|
Other prepaid expenses and current assets
|
3,171
|
900
|
||||||
|
Total current assets
|
138,650
|
119,106
|
||||||
|
Property and equipment, net
|
10,393
|
8,491
|
||||||
|
Goodwill
|
36,260
|
36,260
|
||||||
|
Intangible assets, net
|
36,395
|
48,741
|
||||||
|
Deferred tax asset, net
|
2,267
|
1,749
|
||||||
|
Other assets
|
1,874
|
2,232
|
||||||
|
Total assets
|
$
|
225,839
|
$
|
216,579
|
||||
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
|
Current liabilities:
|
||||||||
|
Current portion of long-term debt, net
|
$
|
3,936
|
$
|
3,913
|
||||
|
Accounts payable
|
11,438
|
8,920
|
||||||
|
Wire transfers and money orders payable
|
36,311
|
48,277
|
||||||
|
Accrued and other
|
16,355
|
11,514
|
||||||
|
Total current liabilities
|
68,040
|
72,624
|
||||||
|
Long term liabilities:
|
||||||||
|
Debt, net
|
113,326
|
108,053
|
||||||
|
Total long term liabilities
|
113,326
|
108,053
|
||||||
|
Stockholders' equity:
|
||||||||
|
Total stockholders' equity
|
44,473
|
35,902
|
||||||
|
Total liabilities and stockholders' equity
|
$
|
225,839
|
$
|
216,579
|
||||
CONSOLIDATED STATEMENTS OF OPERATIONS
|
Successor Company
|
Predecessor
Company
|
Predecessor
Company
|
||||||||||||||||||||||
|
Three Months Ended
December 31,
|
Year Ended
December 31,
|
Period from
February 1, 2017
to December 31,
|
Period from
January 1, 2017
to January 31,
|
Year Ended
December 31,
|
||||||||||||||||||||
|
(in thousands of dollars)
|
2018
|
2017
|
2018
|
2017
|
2017
|
2016
|
||||||||||||||||||
|
(Unaudited)
|
||||||||||||||||||||||||
|
Revenues:
|
||||||||||||||||||||||||
|
Wire transfer and money order fees
|
$
|
63,825
|
$
|
50,569
|
$
|
232,380
|
$
|
169,796
|
$
|
11,877
|
$
|
138,468
|
||||||||||||
|
Foreign exchange
|
10,752
|
8,324
|
39,765
|
30,014
|
2,450
|
25,782
|
||||||||||||||||||
|
Other income
|
480
|
375
|
1,756
|
1,229
|
98
|
1,145
|
||||||||||||||||||
|
Total revenues
|
$
|
75,057
|
$
|
59,268
|
$
|
273,901
|
$
|
201,039
|
$
|
14,425
|
$
|
165,395
|
||||||||||||
|
Operating expenses:
|
||||||||||||||||||||||||
|
Service charges from agents and banks
|
49,906
|
40,961
|
182,471
|
135,569
|
9,441
|
108,076
|
||||||||||||||||||
|
Salaries and benefits
|
8,291
|
7,022
|
32,926
|
23,417
|
4,530
|
18,518
|
||||||||||||||||||
|
Other selling, general and administrative expenses
|
6,053
|
4,493
|
19,442
|
14,894
|
1,062
|
12,346
|
||||||||||||||||||
|
Transaction costs
|
-
|
2,493
|
10,319
|
8,706
|
3,917
|
901
|
||||||||||||||||||
|
Depreciation and amortization
|
3,922
|
4,588
|
15,671
|
16,645
|
382
|
2,530
|
||||||||||||||||||
|
Total operating expenses
|
68,172
|
59,557
|
260,829
|
199,231
|
19,332
|
142,371
|
||||||||||||||||||
|
Operating income (loss)
|
6,885
|
(289
|
)
|
13,072
|
1,808
|
(4,907
|
)
|
23,024
|
||||||||||||||||
|
Interest expense
|
8,339
|
3,341
|
18,448
|
11,448
|
614
|
9,540
|
||||||||||||||||||
|
(Loss) income before income taxes
|
(1,454
|
)
|
(3,630
|
)
|
(5,376
|
)
|
(9,640
|
)
|
(5,521
|
)
|
13,484
|
|||||||||||||
|
Income tax provision (benefit)
|
(6,318
|
)
|
(518
|
)
|
1,868
|
534
|
(2,203
|
)
|
4,084
|
|||||||||||||||
|
Net (loss) income
|
$
|
4,864
|
$
|
(3,112
|
)
|
$
|
(7,244
|
)
|
$
|
(10,174
|
)
|
$
|
(3,318
|
)
|
$
|
9,400
|
||||||||
| Earnings (loss) per common share |
||||||||||||||||||||||||
|
Basic and diluted
|
$ |
0.13 |
$ |
(0.18 |
) |
$ |
(0.28 |
) |
$ |
(0.59 |
) |
|||||||||||||
Reconciliation from Net (loss) income to Adjusted EBITDA
|
Successor Company
|
Predecessor
Company
|
Predecessor
Company
|
||||||||||||||||||||||
|
Three Months Ended December 31,
|
Year ended
December 31,
|
Period from
February 1, 2017
to December 31,
|
Period from
|
|||||||||||||||||||||
|
January 1, 2017
to January 31,
|
Year ended
December 31,
|
|||||||||||||||||||||||
|
(in thousands of dollars)
|
2018
|
2017
|
2018
|
2017
|
2017
|
2016
|
||||||||||||||||||
|
Net (loss) income
|
$
|
4,864
|
$
|
(3,112
|
)
|
$
|
(7,244
|
)
|
$
|
(10,174
|
)
|
$
|
(3,318
|
)
|
$
|
9,400
|
||||||||
|
Adjusted for:
|
||||||||||||||||||||||||
|
Interest expense
|
8,339
|
3,341
|
18,448
|
11,448
|
614
|
9,540
|
||||||||||||||||||
|
Income tax provision (benefit)
|
(6,318
|
)
|
(518
|
)
|
1,868
|
534
|
(2,203
|
)
|
4,084
|
|||||||||||||||
|
Depreciation and amortization
|
3,921
|
4,588
|
15,671
|
16,645
|
382
|
2,530
|
||||||||||||||||||
|
EBITDA
|
10,806
|
4,299
|
28,743
|
18,453
|
(4,525
|
)
|
25,554
|
|||||||||||||||||
|
Transaction costs
|
-
|
2,493
|
10,319
|
8,706
|
3,917
|
901
|
||||||||||||||||||
|
Incentive units plan
|
-
|
311
|
4,735
|
1,846
|
-
|
-
|
||||||||||||||||||
|
Share-based compensation, 2018 Plan
|
660
|
-
|
1,091
|
-
|
-
|
-
|
||||||||||||||||||
|
Change in control adjustment for stock options
|
-
|
-
|
-
|
-
|
2,813
|
-
|
||||||||||||||||||
|
Management fee
|
-
|
195
|
585
|
715
|
-
|
-
|
||||||||||||||||||
|
One time adjustment - bank fees
|
-
|
642
|
-
|
642
|
-
|
-
|
||||||||||||||||||
|
One time incentive bonus
|
-
|
514
|
-
|
514
|
-
|
-
|
||||||||||||||||||
|
TCPA settlement
|
-
|
-
|
192
|
-
|
-
|
-
|
||||||||||||||||||
|
Transition expenses
|
-
|
-
|
348
|
-
|
-
|
-
|
||||||||||||||||||
|
Registration costs
|
-
|
-
|
615
|
-
|
-
|
-
|
||||||||||||||||||
|
Other employee severance
|
-
|
-
|
106
|
-
|
-
|
-
|
||||||||||||||||||
|
Other charges and expenses
|
64
|
89
|
410
|
196
|
104
|
646
|
||||||||||||||||||
|
Adjusted EBITDA
|
$
|
11,530
|
$
|
8,543
|
$
|
47,144
|
$
|
31,072
|
$
|
2,309
|
$
|
27,101
|
||||||||||||
Exhibit 99.2
Fourth Quarter and Full Year 2018 Earnings
Presentation CONFIDENTIAL March 2019 Exhibit 99.2
The information in this presentation is current only as of its date and may have changed or may change in
the future. We undertake no obligation to update this information in light of new information, future events or otherwise. We are not making any representation or warranty that the information in this presentation is accurate or complete. This
presentation 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 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 SEC. All statements other than statements of historical fact included in the presentation are forward-looking statements including, but not limited to, expected financial outlook for the year 2019. Any
forward-looking statement that we make in this presentation speaks only as of March 12, 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.This presentation includes certain non-GAAP financial measures, including Adjusted EBITDA. These non-GAAP financial measures should be considered only as supplemental to, and
not as superior to, financial measures prepared in accordance with U.S. GAAP. Please refer to Slides 20 and 21 of this presentation for a reconciliation of Adjusted EBITDA to net income (loss). 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. Safe Harbor Statement / Non-GAAP Financial Measures
Reviewing a Successful 2018 Revenue and Adjusted EBITDA growth above 27% and 41%, respectively Intermex
continued to aggregate share in Mexico / Guatemala Key growth initiatives across new products and markets IMXI shares have appreciated 9% since initial listing Growth Market Share Expansion Returns
Intermex Growth Story Money Transfer Transactions Volume (# In millions) ($ in millions) Adjusted
EBITDA reflects add-backs for one-time, non-recurring items. Please see pages 20 and 21 for more detail and reconciliation. Revenue Adjusted EBITDA(1) ($ in millions) ($ in millions) 26% 27% 29% 30% 27% 27% 35% 41%
2014 2017 2018 14.0% 21.6% 24.0%(3) All
Others 86.0% 78.4% 76.0% 2014 2017 2018 7.9% 14.9% 17.4%(3) All Others 92.1% 85.1% 82.6% Favorable, Fragmented Competitive Landscape LAC Market Landscape Intermex enjoys a strong and growing position across key target
markets Intermex Share of Key Target Markets (2) Total Market Size:~$89 Billion (1) LAC Countries - 2018 Mexico Market Share Breakdown Guatemala Market Share Breakdown World Bank (2018). Reflects estimated LAC market size as of
2018.Management estimated market share of remittances as of 2018.Source: Banco de Guatemala, Banco de Mexico and World Bank
2018 Country Size(US$B)1 Region MEX 33.7 38% GUA 9.5 11% DOM 6.8 8% COL 6.4 7% ELS 5.5 6% HON 4.7 5% ECU 3.2 4% PER 3.1 3% BRA 3.0 3% JAM 2.6 3% HAI 2.5 3% BER 1.5 2% NIC 1.5 2% BOL 1.2 1% OTHER 3.8 4%
Mexico Remittance Volume Growth Guatemala Remittance Volume Growth Intermex Volume Growth All
Others Volume Growth .Source: Banco de Guatemala and Banco de Mexico – US originating Volume Market Share and Percent Of Industry GrowthTier I Countries Intermex Market
Share 80%20% 57%43% 61%39% 62%38% 67%33% 74%26% 57%43% 59%41% 58%42% 59%41% Industry volumes to our key markets in Latin America provided a moderate tailwind. Industry volumes from the US to Mexico grew just over 10% in 2018, and 13%
from US to Guatemala.
Strategic Priorities for 2019 Priority #1 is to continue driving core growth initiativesVery long runway
aheadCore expansion in both growth and stronghold statesLoyalty Program expansionExpanding our breadth and depth of service New market launches in Canada and AfricaNew products with our general purpose reloadable card (GPR), online and white
label capabilitiesEnhanced infrastructure and operating efficiencyNew Active / Active network and data center capabilitiesERP selection and implementation aimed at driving efficiency
Fourth Quarter Financial Highlights Generated impressive year-over-year growth of key metrics:26.6%
revenue growth35.0% Adjusted EBITDA growth(1)28.8% growth in remittance volumeNet income of $4.9 million vs. net loss in Q4 2017Increased Adjusted EBITDA margin year-over-year from 14.4% to 15.4%(1)Year-to-date as of December 31, Intermex has
captured 41% of the total growth in US to Mexico remittance volume and 42% of the total growth in US to Guatemala remittance volume.(2)Launched our outbound business to Africa, which includes Nigeria, Ghana, Ethiopia and Kenya Adjusted EBITDA
reflects add-backs for one-time, non-recurring items. Please see pages 20 and 21 for more detail and reconciliationSource: Banco de Mexico, Banco de Guatemala, World Bank US outbound volumes and Intermex company data
Full Year 2018 Financial Highlights Generated impressive year-over-year growth of key metrics:27.1%
revenue growth41.2% Adjusted EBITDA growth(1)29.9% growth in remittance volume46.3% decrease in net lossIncreased Adjusted EBITDA margin year-over-year from 15.5% to 17.2%(1)Year-to-date as of December 31, Intermex has captured 41% of the total
growth in US to Mexico remittance volume and 42% of the total growth in US to Guatemala remittance volume.(2) Adjusted EBITDA reflects add-backs for one-time, non-recurring items. Please see pages 20 and 21 for more detail and
reconciliationSource: Banco de Mexico, Banco de Guatemala, World Bank US outbound volumes and Intermex company data
2018 Adjusted EBITDA Guidance(1) Progression Q4 2017 - $40.1MMay 2018 - $40.8MAugust 2018 - $42.0M to
$44.0MNovember 2018 - $46.5M to $48.0MFull Year 2018 Results - $47.1M Adjusted EBITDA reflects add-backs for one-time, non-recurring items. Please see pages 20 and 21 for more detail and reconciliation
2019 Financial Guidance Adjusted EBITDA reflects add-backs for one-time, non-recurring items. Please see
pages 20 and 21 for more detail and reconciliation $320-$330 million Revenue $54-$58 million Adjusted EBITDA(1)
Appendix
Intermex Overview Leading Money Transfer service provider to the $89B US to Latin America and Caribbean
corridor (LAC)(1)Unique and differentiated approach has driven rapid market share growthImpressive Financial Performance – Revenue CAGR of 31% from 2013 -
2018 2017 2018 Revenue $215.5M $273.9M AdjustedEBITDA(2) $33.4M $47.1M Adjusted EBITDA Growth(2) 23% 41% AdjustedEBITDA Margin %(2) 15.50% 17.21% Money Transfer Transactions 18.9M 24.1M Remittance
Volume $6.8B+ $8.9B+ Countries acrossLatin America 17 17 Total Employees 585 690 To 17 Latin American Countries Sending Side Receiving Side Mexico(Elektra, BanCoppel) Other Latin American Countries Guatemala(Banrural,
Banco Industrial) Paying Agent Network Computer Orders Sending Agent Network 2 Call Centers(Mexico / Guatemala) Computer Orders 32 Company Stores(U.S.) Phone/Fax Orders Efficient, High Growth Platform El Salvador and Honduras World
Bank (2018). Reflects LAC market size as of 2018.Adjusted EBITDA reflects add-backs for one-time, non-recurring items. Please see pages 20 and 21 for more detail and reconciliation. Licensed in 50 U.S. states, DC and Puerto Rico, served
through a sending agent base of independent, non-exclusive agents and 32 company stores
Intermex – Evolution of a Market Leader History of sustained market share growth provides a strong
platform for future growth Early Years Expansion Intermex was founded in 1994 as a money transfer provider headquartered in Miami, FloridaAcquired Servimex, Americana and Maniflo and expanded into 13 new U.S. statesOpened call centers in
Mexico and GuatemalaCompleted re-engineering and business model shift to focus on efficient agents and profitabilityInvestment in innovative and highly scalable technology FoundationInception - 2012 Accelerated Growth 2013 - Present Further
market penetration into western and northeastern U.S.Economic recovery sets in, providing backdrop for market growthAcceleration of market share gainsIncreased proprietary payor network coverage and penetrationLaunched differentiated Customer
Management platform and loyalty program to capture additional customersBegan developing mobile / online strategy 2009 – 2012 Revenue CAGR: 8% ($ in millions) 2013 – 2018Revenue CAGR: 31%
Core Strengths of the Story Since 2011, Intermex has grown in excess of the industry while
sustaining strong margins and increasing transaction growth to Mexico This is driven by our disciplined approach to expansion which focuses on prioritizing agent productivity and consistently growing transactions per agent Our technology
infrastructure allows for the dependable transfer of money with one of the lowest cancellation rates in the industry Additional growth opportunities, including the expansion of ancillary products as well as a focus on developing B2B processing
relationships and growing our online presence, allow for confidence in continued growth Intermex’s highly differentiated approach, along with its unique and efficient platform, has allowed the Company to significantly grow scale and
profitability Core growth opportunity exists in the continued growth in stronghold states while increasing our market share in growth states
Global Remittance Market The World Bank. “Migration and Remittances Factbook 2016.” The World Bank.
“Bilateral Remittance Matrix - 2017” accessed on May 17, 2018 247M $613BUSD $148BUSD $31BUSD people live outside of their country of birth.(1) estimated amount of remittances sent, worldwide in 2017(2) was sent from the U.S. alone(2)
was sent from the U.S. to Mexico in 2017, the largest remittance corridor in the world(2)
Customer Transaction Flow Illustrative example of $375 transaction to Mexico U.S. Customer sends $375
to Mexico through:• In person wire transfersOnline money transfers Agent records $375 transaction to Mexico and charges the customer $385 and provides customer with transaction code. Intermex processes transaction through proprietary platform
with an integrated regulatory compliance model and payer network relationships.Intermex earns $10.00 Fee Revenue plus ~$2.50 Foreign Exchange Spread RevenueIntermex pays sending and paying agent commissions $375 is wired to Mexico.Customer
picks up money with transaction code in local currency. $375+$10 fee $375 Intermex earns $5.05 net on $12.50 gross revenue $375
Consolidated Balance Sheets
Consolidated Statements of Operations
Net Income (Loss) to Adj. EBITDA Reconciliation
Net Income(Loss) to Adj. EBITDA Reconciliation