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): May 14, 2019
INTERNATIONAL MONEY EXPRESS, INC.
(Exact name of registrant as specified in charter)
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Delaware
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001-37986
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47-4219082
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(State or Other Jurisdiction of Incorporation)
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(Commission File Number)
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(I.R.S. Employer Identification No.)
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9480 South Dixie Highway, Miami, Florida
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33156
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(Zip Code)
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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:
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Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
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| ☐ |
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
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Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17
CFR 240.13e-4(c))
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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).
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Emerging growth company
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☒
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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. ☐
Securities registered pursuant to Section 12(b) of the Act:
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Title of each class
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Trading Symbol(s)
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Name of each exchange on which registered
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Common stock ($0.0001 par value)
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IMXI
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NASDAQ Capital Market
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| Item 2.02. |
Results of Operations and
Financial Condition.
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On May 14,
2019, International Money Express, Inc., a Delaware corporation, (the “Company”) issued a press release announcing its earnings and financial results for the fiscal quarter ended March 31, 2019. 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 May 14, 2019. A copy of the presentation for the conference call will be made available on the Company’s website for viewing by call participants. A copy of the
presentation is 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. |
Financial Statements and Exhibits.
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(d)
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Exhibits
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Exhibit No.
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Description
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Press release, dated May 14, 2019, issued by International Money Express, Inc.
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||
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Presentation Slides for Conference Call to be held by International Money Express, Inc. on May 14, 2019.
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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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Dated: May 14, 2019
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By:
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/s/ Robert Lisy
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Name:
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Robert Lisy
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Title:
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President and Chief Executive Officer
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Exhibit 99.1
FOR IMMEDIATE RELEASE
International Money Express, Inc. Announces earnings for the First Quarter 2019
First Quarter 2019 - Financial Highlights
| • |
Revenues grew 22.1% versus the prior year period
based on strong performance across our business in the LATAM corridor
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| • |
Net Income totaled $3.2 million compared to a
net loss in the first quarter 2018 as a result of strong revenue growth
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| • |
Basic and Diluted Earnings per Share were $0.09
as a result of our quarterly net income
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| • |
Adjusted EBITDA increased by 21.9% over the
prior year to $10.8 million based on strong revenue growth and growing operating leverage in the business
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| • |
Adjusted EBITDA margin was 15.8% for first
quarter 2019
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MIAMI, Florida May 14, 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 first quarter 2019 and will host a
conference call to discuss results at 5:00pm ET.
Intermex generated revenue of $68.3 million in the first quarter, an increase of 22.1% over the prior year period. Revenue growth was primarily
driven by volume growth in the LATAM corridor.
The Company reported net income in the first quarter of $3.2 million compared to a $0.5 million loss in the prior year period, primarily as a
result of strong revenue growth.
Basic and diluted earnings per share in the first quarter of 2019 were $0.09 compared to loss per share of $0.03 in the prior year period.
Adjusted EBITDA in the first quarter of 2019 grew 21.9% over the comparable period in the prior year to $10.8 million driven by volume growth
coupled with higher foreign exchange income and operating efficiency. These results represent an Adjusted EBITDA margin of 15.8%, which was relatively flat compared to the prior year period.
Intermex President, Chairman and Chief Executive Officer Robert Lisy commented “We are pleased with another strong quarter and start to 2019.
Intermex continues to gain market share in our core $90 billion US to Latin America money transfer market. Additionally, we took strides to expand into new markets with our launch in Africa in the first quarter and planned launch in Canada in the
second quarter. Our first quarter results displayed our ability to generate strong revenue and profit growth. We are pleased to reaffirm our 2019 Financial Guidance range of $320 million to $330 million for revenue and $54 million to $58 million
for Adjusted EBITDA.”
Market Highlights
Year-to-date as of March 31, based on industry data, Intermex has captured 45% of the total growth in US to Mexico remittance volume, and 51% 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 Income (loss), the Company’s closest GAAP measure, to Adjusted EBITDA is available in the attached 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 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. 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 May 14, 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 and Puerto Rico, 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 (unaudited)
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March 31,
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December 31,
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|||||||
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(in thousands of dollars)
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2019
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2018
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||||||
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ASSETS
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||||||||
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Current assets:
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Cash
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$
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84,739
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$
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73,029
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||||
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Accounts receivable, net of allowance of $621 and $842, respectively
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86,664
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35,795
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Prepaid wires
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7,293
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26,655
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Other prepaid expenses and current assets
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2,050
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3,171
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||||||
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Total current assets
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180,746
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138,650
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Property and equipment, net
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10,727
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10,393
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Goodwill
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36,260
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36,260
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Intangible assets, net
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34,310
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36,395
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Deferred tax asset, net
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2,817
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2,267
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Other assets
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2,193
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1,874
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||||||
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Total assets
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$
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267,053
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$
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225,839
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LIABILITIES AND STOCKHOLDERS' EQUITY
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||||||||
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Current liabilities:
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||||||||
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Current portion of long-term debt, net
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$
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4,498
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$
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3,936
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Accounts payable
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14,234
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11,438
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Wire transfers and money orders payable
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86,995
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36,311
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Accrued and other
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17,298
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16,355
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Total current liabilities
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123,025
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68,040
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Long term liabilities:
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Debt, net
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96,780
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113,326
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Total long term liabilities
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96,780
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113,326
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Stockholders' equity:
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||||||||
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Total stockholders' equity
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47,248
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44,473
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||||||
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Total liabilities and stockholders' equity
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$
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267,053
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$
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225,839
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||||
CONSOLIDATED STATEMENTS OF OPERATIONS
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Three Months Ended
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||||||||
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March 31,
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(in thousands of dollars)
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2019
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2018
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||||||
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(Unaudited)
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Revenues:
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Wire transfer and money order fees
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$
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58,451
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$
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47,854
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||||
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Foreign exchange
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9,402
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7,731
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||||||
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Other income
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496
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371
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||||||
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Total revenues
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$
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68,349
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$
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55,956
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Operating expenses:
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||||||||
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Service charges from agents and banks
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45,569
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37,937
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||||||
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Salaries and benefits
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7,597
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6,223
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||||||
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Other selling, general and administrative expenses
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5,723
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4,009
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||||||
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Transaction costs
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-
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1,461
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||||||
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Depreciation and amortization
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3,152
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3,789
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||||||
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Total operating expenses
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62,041
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53,419
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||||||
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Operating income
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6,308
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2,537
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||||||
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Interest expense
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2,071
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3,284
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||||||
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Income (loss) before income taxes
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4,237
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(747
|
)
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|||||
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Income tax provision (benefit)
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1,081
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(207
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)
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|||||
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Net income (loss)
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$
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3,156
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$
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(540
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)
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|||
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Income (loss) per common share
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||||||||
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Basic and diluted
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$
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0.09
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$
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(0.03
|
)
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|||
|
|
||||||||
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Weighted-average common shares outstanding:
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||||||||
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Basic
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36,182,783
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17,227,682
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||||||
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Diluted
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36,195,463
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17,227,682
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||||||
Reconciliation from Net income (loss) to Adjusted EBITDA
|
Three Months Ended March 31,
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||||||||
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(in thousands of dollars)
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2019
|
2018
|
||||||
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Net income (loss)
|
$
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3,156
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$
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(540
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)
|
|||
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Adjusted for:
|
||||||||
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Interest expense
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2,071
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3,284
|
||||||
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Income tax provision (benefit)
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1,081
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(207
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)
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|||||
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Depreciation and amortization
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3,152
|
3,789
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||||||
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EBITDA
|
9,460
|
6,326
|
||||||
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Transaction costs
|
-
|
1,461
|
||||||
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Incentive units plan
|
-
|
228
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||||||
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Share-based compensation, 2018 Plan
|
626
|
-
|
||||||
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Management fee
|
-
|
195
|
||||||
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TCPA settlement
|
-
|
192
|
||||||
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Tender Offer costs
|
513
|
-
|
||||||
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Other employee severance
|
106
|
-
|
||||||
|
Other charges and expenses
|
59
|
426
|
||||||
|
Adjusted EBITDA
|
$
|
10,764
|
$
|
8,828
|
||||
Exhibit 99.2
First Quarter 2019 Earnings Presentation CONFIDENTIAL May 2019
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 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. 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 May 14, 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
19 and 20 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
On Track to Execute on 2019 Strategic Priorities Priority #1 is to continue driving core growth
initiativesLong runway aheadCore expansion in both growth and stronghold statesContinued growth opportunity secondary and tertiary LatAM marketsExpanding our breadth and depth of service Outbound US is live to Africa and plan to launch Canada
in Q2New products with our general purpose reloadable card (GPR), online and white label capabilitiesEnhanced infrastructure and operating efficiencyNew Active / Active network and data center capabilitiesBanking service optimization
Review of Key Performance Indicators Revenue and Adjusted EBITDA growth of 22%
year-over-year Intermex continued to aggregate share in Mexico / Guatemala Key growth initiatives across new products and markets IMXI shares have appreciated nearly 20% 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 19 and 20 for more detail and reconciliation. Revenue Adjusted EBITDA(1) ($ in millions) ($ in millions) 24% 23% 22% 22%
2014 2018 1Q19 14.0% 24.0%(3) 25.5%(3) All
Others 86.0% 76.0% 74.5% 2014 2018 1Q19 7.9% 17.4%(3) 18.0%(3) All Others 92.1% 82.6% 82.0% 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:~$90 Billion (1) LAC Countries - 2018 Mexico Market Share Breakdown Guatemala Market Share Breakdown World Bank (2018). Reflects estimated LAC market size as of
April 2019.Management estimated market share of remittances as of 2018.Source: Banco de Guatemala, Banco de Mexico and World Bank 2018 Country Size(US$B)1 Region MEX 35.7 40% GUA 9.6 11% DOM 6.8 8% COL 6.4 7% ELS
5.5 6% HON 4.7 5% PRU 3.2 4% ECU 3.1 3% HAI 3.0 3% BRA 2.9 3% JAM 2.5 3% NIC 1.5 2% BOL 1.3 1% OTHER 3.6 4%
First Quarter 2019 Performance Highlights Generated impressive year-over-year growth of key
metrics:22.1% revenue growth21.9% Adjusted EBITDA growth(1)23.3% growth in remittance volumeNet income of $3.2 million vs. a net loss of $540 thousand in Q1 2018Basic and fully diluted EPS of $0.09 vs. a loss of $0.03 in Q1 2018Adjusted
EBITDA margin remained relatively flat year-over-year at 15.8%(1)Year-to-date as of March 31, Intermex has captured 45% of the total growth in US to Mexico remittance volume and 51% 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 19 and 20 for more detail and reconciliationSource:
Banco de Mexico, Banco de Guatemala, World Bank US outbound volumes and Intermex company data
All Others Volume Growth Intermex Market
Share 80%20% 57%43% 61%39% 62%38% 67%33% 74%26% 57%43% 59%41% 58%42% 59%41% 55%45% 49%51% Mexico Remittance Volume Growth Guatemala Remittance Volume Growth Intermex Volume Growth .Source: Banco de Guatemala and Banco de
Mexico – US originating Volume Market Share and Percent Of Industry GrowthTier I Countries Intermex outperforms market growth in its core markets of Mexico and Guatemala.A consistent and large portion of the growth in the Mexico market is
captured by Intermex.
Reiterating 2019 Financial Guidance Adjusted EBITDA reflects add-backs for one-time, non-recurring
items. Please see pages 19 and 20 for more detail and reconciliation $320-$330 million Revenue $54-$58 million Adjusted EBITDA(1)
Warrant Exchange Highlights Exchange offer expired April 25, 2019Announced completion and settlement
of the exchange in April 30 press releaseExchanged 8.9 million or 99.5% of the outstanding warrantsIssued 1.8 million common shares and made an approximately $10 million cash payment in conformance with the offerExtinguishing the warrants
leaves stock options as the only source of volatility in our share countBased on achieving the consensus target of $17 by year end, these options would add approximately 300,000 fully diluted shares to the current count of roughly 38M
Appendix
Intermex Overview Leading Money Transfer service provider to the $90B 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 1Q18 1Q19 Revenue $56.0M $68.3M AdjustedEBITDA(2) $8.8M $10.8M Adjusted EBITDA Growth(2) 21% 22% AdjustedEBITDA Margin %(2) 15.7% 15.8% Money Transfer Transactions 5.0M 6.2M Remittance
Volume $1.7B+ $2.2B+ Countries acrossLatin America 17 17 Total Employees 588 723 To 17 Latin American Countries Sending Side Receiving Side Mexico(Elektra, BanCoppel) Other Latin American Countries Guatemala(Banrural,
Banco Industrial) Paying Agent Network Computer Orders Sending Agent Network 2 Call Centers(Mexico / Guatemala) Computer Orders 32 Company Stores(U.S.) Phone/Fax Orders Efficient, High Growth Platform El Salvador and
Honduras World Bank (2018). Reflects LAC market size as of 2018.Adjusted EBITDA reflects add-backs for one-time, non-recurring items. Please see pages 19 and 20 for more detail and reconciliation. Licensed in 50 U.S. states, DC and Puerto
Rico, served through a sending agent base of independent, non-exclusive agents and 32 company stores
Intermex – Evolution of a Market Leader History of sustained market share growth provides a strong
platform for future growth Early Years Expansion Intermex was founded in 1994 as a money transfer provider headquartered in Miami, FloridaAcquired Servimex, Americana and Maniflo and expanded into 13 new U.S. statesOpened call centers in
Mexico and GuatemalaCompleted re-engineering and business model shift to focus on efficient agents and profitabilityInvestment in innovative and highly scalable technology FoundationInception - 2012 Accelerated Growth 2013 -
Present Further market penetration into western and northeastern U.S.Economic recovery sets in, providing backdrop for market growthAcceleration of market share gainsIncreased proprietary payor network coverage and penetrationLaunched
differentiated Customer Management platform and loyalty program to capture additional customersBegan developing mobile / online strategy 2009 – 2012 Revenue CAGR: 8% ($ 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