INTERNATIONAL MONEY EXPRESS, INC.
|
(Exact name of registrant as specified in its charter)
|
Delaware
|
47-4219082
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
9480 South Dixie Highway | ||
Miami, Florida
|
33156
|
|
(Address of Principal Executive Offices)
|
(Zip Code)
|
(305) 671-8000
|
(Registrant’s telephone number, including area code)
|
☐ Large accelerated filer
|
☐ Accelerated filer
|
|
☒ Non-accelerated filer
|
☐ Smaller reporting company
|
|
☒ Emerging growth company
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common stock ($0.0001 par
value)
|
IMXI
|
Nasdaq Capital Market
|
Page
|
||
SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
|
3 |
|
PART 1 - FINANCIAL INFORMATION
|
||
Item 1.
|
4 |
|
4 | ||
5 | ||
6 | ||
7 | ||
8 | ||
Item 2.
|
20 | |
Item 3.
|
31 | |
Item 4.
|
32 | |
PART II - OTHER INFORMATION
|
||
Item 1.
|
33
|
|
Item 1A.
|
33
|
|
Item 2.
|
33
|
|
Item 3.
|
33
|
|
Item 4.
|
33 | |
Item 5.
|
33 | |
Item 6.
|
33 | |
35 |
• |
the ability to maintain the listing of our common stock on Nasdaq;
|
• |
the ability to recognize the anticipated benefits of the Merger, which may be affected by, among other things, competition, and the ability of the combined business to
grow and manage growth profitably;
|
• |
changes in applicable laws or regulations;
|
• |
the possibility that we may be adversely affected by other economic, business and/or competitive factors;
|
• |
factors relating to our business, operations and financial performance, including:
|
o |
competition in the markets in which we operate;
|
o |
our ability to maintain agent relationships on terms consistent with those currently in place;
|
o |
our ability to maintain banking relationships necessary for us to conduct our business;
|
o |
credit risks from our agents and the financial institutions with which we do business;
|
o |
bank failures, sustained financial illiquidity, or illiquidity at our clearing, cash management or custodial financial institutions;
|
o |
our ability to meet our debt obligations and remain in compliance with our credit facility requirements;
|
o |
new technology or competitors that disrupt the current ecosystem;
|
o |
cyber-attacks or disruptions to our information technology, computer network systems and data centers;
|
o |
our success in developing and introducing new products, services and infrastructure;
|
o |
customer confidence in our brand and in consumer money transfers generally;
|
o |
our ability to maintain compliance with the regulatory requirements of the jurisdictions in which we operate or plan to operate;
|
o |
international political factors or implementation of tariffs, border taxes or restrictions on remittances or transfers of money out of the United States;
|
o |
changes in tax laws and unfavorable outcomes of tax positions we take;
|
o |
political instability, currency restrictions and devaluation in countries in which we operate or plan to operate;
|
o |
weakness in U.S. or international economic conditions;
|
o |
change or disruption in international migration patterns;
|
o |
our ability to protect our brand and intellectual property rights;
|
o |
our ability to retain key personnel;
|
o |
changes in foreign exchange rates could impact consumer remittance activity; and
|
• |
other economic, business and/or competitive factors, risks and uncertainties, including those described in the section entitled “Risk Factors” in our Annual Report on
Form 10-K for the year ended December 31, 2018.
|
March 31,
2019
|
December 31,
2018
|
|||||||
ASSETS
|
||||||||
Current assets:
|
||||||||
Cash
|
$
|
84,739
|
$
|
73,029
|
||||
Accounts receivable, net of allowance of $621 and $842, respectively
|
86,664
|
35,795
|
||||||
Prepaid wires
|
7,293
|
26,655
|
||||||
Other prepaid expenses and current assets
|
2,050 |
3,171
|
||||||
Total current assets
|
180,746 |
138,650
|
||||||
Property and equipment, net
|
10,727
|
10,393
|
||||||
Goodwill
|
36,260
|
36,260
|
||||||
Intangible assets, net
|
34,310
|
36,395
|
||||||
Deferred tax asset, net
|
2,817
|
2,267
|
||||||
Other assets
|
2,193
|
1,874
|
||||||
Total assets
|
$
|
267,053
|
$
|
225,839
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
Current liabilities:
|
||||||||
Current portion of long-term debt, net
|
$
|
4,498
|
$
|
3,936
|
||||
Accounts payable
|
14,234
|
11,438
|
||||||
Wire transfers and money orders payable
|
86,995
|
36,311
|
||||||
Accrued and other liabilities
|
17,298
|
16,355
|
||||||
Total current liabilities
|
123,025
|
68,040
|
||||||
Long term liabilities:
|
||||||||
Debt, net
|
96,780
|
113,326
|
||||||
Total long term liabilities
|
96,780
|
113,326
|
||||||
Commitments and Contingencies, see Note 13
|
||||||||
Stockholders’ equity:
|
||||||||
Common stock $0.0001 par value; 230,000,000 shares authorized, 36,182,783 shares issued and
outstanding as of March 31, 2019and December 31, 2018
|
4
|
4
|
||||||
Additional paid-in capital
|
62,515
|
61,889
|
||||||
Accumulated deficit
|
(15,277
|
)
|
(17,418
|
)
|
||||
Accumulated other comprehensive income (loss)
|
6
|
(2
|
)
|
|||||
Total stockholders’ equity
|
47,248
|
44,473
|
||||||
Total liabilities and stockholders’ equity
|
$
|
267,053 |
$
|
225,839
|
Three Months Ended March 31,
|
||||||||
2019
|
2018
|
|||||||
Revenues:
|
||||||||
Wire transfer and money order fees
|
$
|
58,451
|
$
|
47,854
|
||||
Foreign exchange
|
9,402
|
7,731
|
||||||
Other income
|
496
|
371
|
||||||
Total revenues
|
68,349
|
55,956
|
||||||
Operating expenses:
|
||||||||
Service charges from agents and banks
|
45,569
|
37,937
|
||||||
Salaries and benefits
|
7,597
|
6,223
|
||||||
Other selling, general and administrative expenses
|
5,723
|
4,009
|
||||||
Transaction costs
|
-
|
1,461
|
||||||
Depreciation and amortization
|
3,152
|
3,789
|
||||||
Total operating expenses
|
62,041
|
53,419
|
||||||
Operating income
|
6,308
|
2,537
|
||||||
|
||||||||
Interest expense
|
2,071
|
3,284
|
||||||
Income (loss) before income taxes
|
4,237
|
(747
|
)
|
|||||
Income tax provision (benefit)
|
1,081
|
(207
|
)
|
|||||
Net income (loss)
|
3,156
|
(540
|
)
|
|||||
Other comprehensive income
|
8
|
21
|
||||||
Comprehensive income (loss)
|
$
|
3,164
|
$
|
(519
|
)
|
|||
Income (loss) per common share:
|
||||||||
Basic and diluted
|
$
|
0.09
|
$
|
(0.03
|
)
|
|||
Weighted-average common shares outstanding:
|
||||||||
Basic
|
36,182,783
|
17,227,682
|
||||||
Diluted
|
36,195,463
|
17,227,682
|
Accumulated Other
|
Total
|
|||||||||||||||||||||||
Common Stock
|
Additional
|
Accumulated
|
Comprehensive
|
Stockholders’
|
||||||||||||||||||||
Shares
|
Amount
|
Paid-in Capital
|
Deficit
|
Income (Loss)
|
Equity
|
|||||||||||||||||||
Balance, December 31, 2017
|
17,227,682
|
$
|
2
|
$
|
46,076
|
$
|
(10,174
|
)
|
$
|
(2
|
)
|
$
|
35,902
|
|||||||||||
Net loss
|
-
|
-
|
-
|
(540
|
)
|
-
|
(540
|
)
|
||||||||||||||||
Share-based compensation
|
-
|
-
|
228
|
-
|
-
|
228
|
||||||||||||||||||
Adjustment from foreign currency translation, net
|
-
|
-
|
-
|
-
|
21
|
21
|
||||||||||||||||||
Balance, March 31, 2018
|
17,227,682
|
$
|
2
|
$
|
46,304
|
$
|
(10,714
|
)
|
$
|
19
|
$
|
35,611
|
Accumulated Other
|
Total
|
|||||||||||||||||||||||
Common Stock
|
Additional
|
Accumulated
|
Comprehensive
|
Stockholders’
|
||||||||||||||||||||
Shares
|
Amount
|
Paid-in Capital
|
Deficit
|
Income (Loss)
|
Equity
|
|||||||||||||||||||
Balance, December 31, 2018
|
36,182,783
|
$
|
4
|
$
|
61,889
|
$
|
(17,418
|
)
|
$
|
(2
|
)
|
$
|
44,473
|
|||||||||||
Adoption of new accounting pronouncement (See Note 3)
|
-
|
-
|
-
|
(1,015
|
)
|
-
|
(1,015
|
)
|
||||||||||||||||
Net income
|
-
|
-
|
-
|
3,156
|
-
|
3,156
|
||||||||||||||||||
Share-based compensation
|
-
|
-
|
626
|
-
|
-
|
626
|
||||||||||||||||||
Adjustment from foreign currency translation, net
|
-
|
-
|
-
|
-
|
8
|
8
|
||||||||||||||||||
Balance, March 31, 2019
|
36,182,783
|
$
|
4
|
$
|
62,515
|
$
|
(15,277
|
)
|
$
|
6
|
$
|
47,248
|
Three Months Ended March 31,
|
||||||||
2019
|
2018
|
|||||||
Cash flows from operating activities:
|
||||||||
Net income (loss)
|
$
|
3,156
|
$
|
(540
|
)
|
|||
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
|
||||||||
Depreciation and amortization
|
3,152
|
3,789
|
||||||
Share-based compensation
|
626
|
228
|
||||||
Provision for bad debt
|
360
|
43
|
||||||
Debt origination costs amortization
|
175
|
231
|
||||||
Deferred taxes
|
(213
|
)
|
(250
|
)
|
||||
Loss on disposal of property and equipment
|
51
|
42
|
||||||
Total adjustments
|
4,151
|
4,083
|
||||||
Changes in operating assets and liabilities:
|
||||||||
Accounts receivable
|
(51,223
|
)
|
10,397
|
|||||
Prepaid wires
|
19,494
|
(4,236
|
)
|
|||||
Other prepaid expenses and assets
|
769 | |
(356
|
)
|
||||
Wire transfers and money orders payables
|
50,505
|
4,977
|
||||||
Accounts payable and accrued and other liabilities
|
2,363
|
3,720
|
||||||
Net cash provided by operating activities
|
29,215
|
18,045
|
||||||
Cash flows from investing activities:
|
||||||||
Purchases of property and equipment
|
(1,193
|
)
|
(1,510
|
)
|
||||
Acquisition of agent locations
|
(250
|
)
|
-
|
|||||
Net cash used in investing activities
|
(1,443
|
)
|
(1,510
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Repayments under revolving loan, net
|
(15,000
|
)
|
-
|
|||||
Repayment of term loan
|
(1,125
|
)
|
(1,213
|
)
|
||||
Net cash used in financing activities
|
(16,125
|
)
|
(1,213
|
)
|
||||
Effect of exchange rate changes on cash
|
63
|
307
|
||||||
Net increase in cash and restricted cash
|
11,710
|
15,629
|
||||||
Cash and restricted cash, beginning of the period
|
73,029
|
59,795
|
||||||
Cash and restricted cash, end of the period
|
$
|
84,739
|
$
|
75,424
|
||||
Supplemental disclosure of cash flow information:
|
||||||||
Cash paid for interest
|
$
|
2,895
|
$
|
3,284
|
Cash balance available to Intermex prior to the consummation of the Merger
|
$
|
110,726
|
||
Less:
|
||||
Intermex Merger costs paid from acquisition proceeds at closing
|
(9,062
|
)
|
||
Cash consideration to Intermex shareholders
|
(101,659
|
)
|
||
Net cash proceeds from reverse recapitalization
|
$
|
5
|
||
Cash balance available to Intermex prior to the consummation of the Merger
|
$
|
110,726
|
||
Less:
|
||||
Cash consideration to Intermex shareholders
|
(101,659
|
)
|
||
Other FinTech assets acquired and liabilities assumed in the Merger:
|
||||
Prepaid expenses
|
76
|
|||
Accrued liabilities
|
(136
|
)
|
||
Deferred tax assets
|
982
|
|||
Net equity infusion from FinTech
|
$
|
9,989
|
March 31,
2019
|
December 31,
2018
|
|||||||
Prepaid insurance
|
$
|
747
|
$
|
751
|
||||
Prepaid fees
|
647
|
719
|
||||||
Other prepaid expenses
|
656
|
1,701
|
||||||
$
|
2,050 |
$
|
3,171
|
Goodwill
|
Other Intangibles
|
|||||||
Balance at December 31, 2018
|
$
|
36,260
|
$
|
36,395
|
||||
Acquisition of agent locations
|
-
|
250
|
||||||
Amortization expense
|
-
|
(2,335
|
)
|
|||||
Balance at March 31, 2019
|
$
|
36,260
|
$
|
34,310
|
March 31,
2019
|
December 31,
2018
|
|||||||
Payables to agents
|
$
|
9,273
|
$
|
8,972
|
||||
Accrued compensation
|
1,603
|
2,344
|
||||||
Accrued bank charges
|
995
|
983
|
||||||
Accrued loyalty program reserve
|
-
|
621
|
||||||
Accrued legal fees
|
327
|
920
|
||||||
Accrued taxes
|
1,054
|
745
|
||||||
Deferred revenue loyalty program liability
|
2,311
|
-
|
||||||
Other
|
1,735
|
1,770
|
||||||
$
|
17,298 |
$
|
16,355
|
March 31,
2019
|
December 31,
2018
|
|||||||
Revolving credit facility
|
$
|
15,000
|
$
|
30,000
|
||||
Term loan
|
88,875
|
90,000
|
||||||
103,875
|
120,000
|
|||||||
Less: Current portion of long term debt (1)
|
(4,498
|
)
|
(3,936
|
)
|
||||
Less: Debt origination costs
|
(2,597
|
)
|
(2,738
|
)
|
||||
$
|
96,780
|
$
|
113,326
|
(1) |
Current portion of long-term debt is net of debt origination costs of $0.6 million at March 31, 2019 and December 31, 2018.
|
Number of
Options
|
Weighted-Average
Exercise Price
|
Weighted-Average
Remaining Contractual
Term (Years)
|
Weighted-Average
Grant Date
Fair Value
|
|||||||||||||
Outstanding at December 31, 2018
|
2,881,219
|
$
|
10.00
|
9.60
|
$
|
3.47
|
||||||||||
Granted
|
45,000
|
11.01
|
3.71
|
|||||||||||||
Exercised
|
-
|
-
|
-
|
|||||||||||||
Forfeited
|
(95,000
|
)
|
9.91
|
3.43
|
||||||||||||
Expired
|
-
|
-
|
-
|
|||||||||||||
Outstanding at March 31, 2019
|
2,831,219
|
$
|
10.02
|
9.36
|
$
|
3.47
|
Three Months Ended March 31,
|
||||||||
2019
|
2018
|
|||||||
Net income (loss) for basic and diluted income (loss) per common share
|
3,156
|
(540
|
)
|
|||||
Shares:
|
||||||||
Weighted-average common shares outstanding – basic
|
36,182,783
|
17,227,682
|
||||||
Weighted-average common shares outstanding – diluted
|
36,195,463
|
17,227,682
|
||||||
Net income (loss) per common share - basic and diluted
|
$
|
0.09
|
$
|
(0.03
|
)
|
Three Months Ended March 31,
|
||||||||
2019
|
2018
|
|||||||
Income (loss) before income taxes
|
$
|
4,237
|
$
|
(747
|
)
|
|||
U.S. statutory tax rate
|
21
|
%
|
21
|
%
|
||||
Income tax expense (benefit) at statutory rate
|
890
|
(157
|
)
|
|||||
State tax expense (benefit), net of federal
|
250
|
(40
|
)
|
|||||
Foreign tax rates different from U.S. statutory rate
|
4
|
7
|
||||||
Non-deductible expenses
|
9
|
(17
|
)
|
|||||
Other
|
(72
|
)
|
-
|
|||||
Total income tax provision (benefit)
|
$
|
1,081
|
$
|
(207
|
)
|
2019
|
$
|
1,043
|
||
2020
|
1,173
|
|||
2021
|
1,002
|
|||
2022
|
834
|
|||
2023
|
790
|
|||
Thereafter
|
1,438
|
|||
$
|
6,280
|
ITEM 2. | MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
• |
competition in the markets in which we operate;
|
• |
cyber-attacks or disruptions to our information technology, computer network systems and data centers;
|
• |
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 illiquidity, or illiquidity at our clearing, cash management or custodial financial institutions;
|
• |
our ability to meet our debt obligations and remain in compliance with our credit facility requirements;
|
• |
new technology or competitors that disrupt the current ecosystem;
|
• |
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;
|
• |
consumer fraud and other risks relating to customer authentication;
|
• |
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
|
• |
changes in foreign exchange rates which could impact consumer remittance activity.
|
• |
an exemption from the auditor attestation requirement of Section 404 of the Sarbanes-Oxley Act in the assessment of the emerging growth company’s internal
control over financial reporting;
|
• |
an exemption from the adoption of new or revised financial accounting standards until they would apply to private companies; and
|
• |
an exemption from compliance with any new requirements adopted by the Public Company Accounting Oversight Board requiring mandatory audit firm rotation or a
supplement to the auditor’s report in which the auditor would be required to provide additional information about the audit and the financial statements of the issuer.
|
Three Months Ended
March 31,
|
||||||||||||
(in thousands)
|
2019
|
2018
|
% Change
|
|||||||||
(Unaudited)
|
||||||||||||
Revenues:
|
||||||||||||
Wire transfer and money order fees
|
$
|
58,451
|
$
|
47,854
|
22
|
%
|
||||||
Foreign exchange
|
9,402
|
7,731
|
22
|
%
|
||||||||
Other income
|
496
|
371
|
34
|
%
|
||||||||
Total revenues
|
68,349
|
55,956
|
22
|
%
|
||||||||
Operating expenses:
|
||||||||||||
Service charges from agents and banks
|
45,569
|
37,937
|
20
|
%
|
||||||||
Salaries and benefits
|
7,597
|
6,223
|
22
|
%
|
||||||||
Other selling, general and administrative expenses
|
5,723
|
4,009
|
43
|
%
|
||||||||
Transaction costs
|
-
|
1,461
|
(100
|
%)
|
||||||||
Depreciation and amortization
|
3,152
|
3,789
|
(17
|
%)
|
||||||||
Total operating expenses
|
62,041
|
53,419
|
16
|
%
|
||||||||
Operating income
|
6,308
|
2,537
|
149
|
%
|
||||||||
Interest expense
|
2,071
|
3,284
|
(37
|
%)
|
||||||||
Income (loss) before income taxes
|
4,237
|
(747
|
)
|
667
|
%
|
|||||||
Income tax provision (benefit)
|
1,081
|
(207
|
)
|
622
|
%
|
|||||||
Net income (loss)
|
$
|
3,156
|
$
|
(540
|
)
|
684
|
%
|
Three Months
Ended March 31,
2019
|
%
of
Revenues
|
Three Months
Ended March 31,
2018
|
%
of
Revenues
|
|||||||||||||
($ in thousands)
|
||||||||||||||||
Revenues:
|
||||||||||||||||
Wire transfer and money order fees
|
$
|
58,451
|
85
|
%
|
$
|
47,854
|
85
|
%
|
||||||||
Foreign exchange
|
9,402
|
14
|
%
|
7,731
|
14
|
%
|
||||||||||
Other income
|
496
|
1
|
%
|
371
|
1
|
%
|
||||||||||
Total revenues
|
$
|
68,349
|
100
|
%
|
$
|
55,956
|
100
|
%
|
Three Months
Ended March 31,
2019
|
%
of
Revenues
|
Three Months
Ended March 31,
2018
|
%
of
Revenues
|
|||||||||||||
($ in thousands)
|
||||||||||||||||
Operating expenses:
|
||||||||||||||||
Service charges from agents and banks
|
$
|
45,569
|
67
|
%
|
$
|
37,937
|
68
|
%
|
||||||||
Salaries and benefits
|
7,597
|
11
|
%
|
6,223
|
11
|
%
|
||||||||||
Other selling, general and administrative expenses
|
5,723
|
8 |
%
|
4,009
|
7
|
%
|
||||||||||
Transaction costs
|
-
|
0
|
%
|
1,461
|
3
|
%
|
||||||||||
Depreciation and amortization
|
3,152
|
5
|
%
|
3,789
|
7
|
%
|
||||||||||
Total operating expenses
|
$
|
62,041
|
91
|
%
|
$
|
53,419
|
96
|
%
|
• |
Adjusted EBITDA does not reflect the significant interest expense, or the amounts necessary to service interest or principal payments on our senior secured
credit facility;
|
• |
Adjusted EBITDA does not reflect income tax provision (benefit), and because the payment of taxes is part of our operations, tax expense is a necessary
element of our costs and ability to operate;
|
• |
Although depreciation and amortization are eliminated in the calculation of Adjusted EBITDA, the assets being depreciated and amortized will often have to
be replaced in the future, and Adjusted EBITDA does not reflect any costs of such replacements;
|
• |
Adjusted EBITDA does not reflect the noncash component of employee compensation;
|
• |
Adjusted EBITDA does not reflect the impact of earnings or charges resulting from matters we consider not to be reflective, on a recurring basis, of our
ongoing operations; and
|
• |
Other companies in our industry may calculate Adjusted EBITDA or similarly titled measures differently than we do, limiting its usefulness as a comparative
measure.
|
Three Months Ended March 31,
|
||||||||
(in thousands)
|
2019
|
2018
|
||||||
Net income (loss)
|
$
|
3,156
|
$
|
(540
|
)
|
|||
Adjusted for:
|
||||||||
Interest expense
|
2,071
|
3,284
|
||||||
Income tax provision (benefit)
|
1,081
|
(207
|
)
|
|||||
Depreciation and amortization
|
3,152
|
3,789
|
||||||
EBITDA
|
9,460
|
6,326
|
||||||
Transaction costs (a)
|
-
|
1,461
|
||||||
Incentive units plan (b)
|
-
|
228
|
||||||
Share-based compensation, 2018 Plan (c)
|
626
|
-
|
||||||
Tender Offer costs (d)
|
513
|
-
|
||||||
Management Fees (e)
|
-
|
195
|
||||||
TCPA Settlement (f)
|
-
|
192
|
||||||
Other employee severance (g)
|
106
|
-
|
||||||
Other charges and expenses (h)
|
59
|
426
|
||||||
Adjusted EBITDA
|
$
|
10,764
|
$
|
8,828
|
(a) |
Represents direct costs for the three months ended March 31, 2018 related to the Merger, which were expensed as incurred and included as “transaction costs”
in our condensed consolidated statements of operations and comprehensive income (loss).
|
(b) |
In connection with the Stella Point acquisition, Class B, C and D incentive units were granted to our employees by Interwire LLC. The three months ended
March 31, 2018 included expense regarding these incentive units, which became fully vested and were paid out upon the Closing Date of the Merger. As a result, employees no longer hold profits interests following the Merger.
|
(c) |
Stock options and restricted stock were granted to employees and independent directors of the Company in connection with the completion of the Merger. The
Company recorded $0.6 million of expense related to these equity instruments during the three months ended March 31, 2019.
|
(d) |
The Company incurred $0.5 million of expenses during the three months ended March 31, 2019 for professional fees in connection with the Tender Offer of the
Company’s outstanding warrants.
|
(e) |
Represents payments under our management agreement with Stella Point pursuant to which we paid a quarterly fee for certain advisory and consulting services.
In connection with the Merger, this agreement was terminated.
|
(f) |
Represents payments related to the settlement of a lawsuit during the three months ended March 31, 2018 related to the Telephone Consumer Protection Act
(“TCPA”), which includes a $0.1 million settlement payment and $0.1 million in related legal expenses.
|
(g) |
Represents $0.1 million of severance costs during the three months ended March 31, 2019 related to departmental changes.
|
(h) |
Both periods include loss on disposal of fixed assets, foreign currency (gains) losses and legal expenses considered to be non-recurring.
|
Three Months Ended March 31,
|
||||||||
(in thousands)
|
2019
|
2018
|
||||||
Statement of Cash Flows Data:
|
||||||||
Net cash provided by operating activities
|
$
|
29,215
|
$
|
18,045
|
||||
Net cash used in investing activities
|
(1,443
|
)
|
(1,510
|
)
|
||||
Net cash used in financing activities
|
(16,125
|
)
|
(1,213
|
)
|
||||
Effect of exchange rate changes on cash
|
63
|
307
|
||||||
Net increase in cash and restricted cash
|
11,710
|
15,629
|
||||||
Cash and restricted cash, beginning of the period
|
73,029
|
59,795
|
||||||
Cash and restricted cash, end of the period
|
$
|
84,739
|
$
|
75,424
|
(in thousands)
|
Total
|
Less than
1 year
|
1 to 3 years
|
3 to 5 years
|
More than
5 years
|
|||||||||||||||
Debt, principal payments
|
$
|
103,875
|
$
|
5,063
|
$
|
14,062
|
$
|
84,750
|
$
|
-
|
||||||||||
Interest payments
|
33,044
|
8,033
|
14,689
|
10,322
|
-
|
|||||||||||||||
Non-cancelable operating leases
|
6,280
|
1,043
|
2,175
|
1,624
|
1,438
|
|||||||||||||||
Total
|
$
|
143,199
|
$
|
14,139
|
$
|
30,926
|
$
|
96,696
|
1,438
|
• |
Revenue Recognition
|
• |
Accounts Receivable and Allowance for Doubtful Accounts
|
• |
Goodwill and Intangible Assets
|
• |
Income Taxes
|
Exhibit No.
|
Document |
Amendment No. 1 to Warrant Agreement, dated April 29, 2019, by and between the
International Money Express, Inc. and Continental Stock Transfer & Trust Company (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on April 30, 2019).
|
|
Increase Joinder No. 1 to Credit Agreement, dated March 25, 2019, by and among
International Money Express, Inc., as Holdings, International Money Express Sub 2, LLC, as Intermediate Holdings, Intermex Holdings, Inc., as the Term Borrower, Intermex Wire Transfer, LLC, as the Revolver Borrower, the other
guarantors from time to time party thereto, the lenders from time to time party thereto and KeyBank National Association, as the Administrative Agent (incorporated by reference to Exhibit 10.2 to the Registrant’s Current
Report on Form 8-K filed on April 30, 2019).
|
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002- Chief Executive Officer.
|
|
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002- Chief Financial Officer.
|
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002.
|
* |
Filed herewith
|
Date: May 15, 2019
|
||
International Money Express, Inc.
|
||
By:
|
/s/ Robert Lisy
|
|
Robert Lisy
|
||
Chief Executive Officer and President
|
||
Date: May 15, 2019
|
International Money Express, Inc.
|
||
By:
|
/s/ Tony Lauro II
|
|
Tony Lauro II
|
||
Chief Financial Officer
|
1. |
I have reviewed this Quarterly Report on Form 10-Q of International Money Express, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over
financial reporting.
|
Date: May 15, 2019
|
|||
By:
|
/s/ Robert Lisy
|
||
Name:
|
Robert Lisy
|
||
Title:
|
President and Chief Executive Officer
|
||
(Principal Executive Officer)
|
1. |
I have reviewed this Quarterly Report on Form 10-Q of International Money Express, Inc.;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the
statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the
financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in
Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure
that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our
supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of consolidated financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the
effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent
fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5. |
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to
the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
(c) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably
likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
(d) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over
financial reporting.
|
Date: May 15, 2019
|
|||
By:
|
/s/ Tony Lauro II
|
||
Name:
|
Tony Lauro II
|
||
Title:
|
Chief Financial Officer
|
||
(Principal Financial Officer)
|
1. |
the Quarterly Report on Form 10-Q of the Company for the quarterly period ended March 31, 2019 (the “Report”) fully complies with the requirements of
Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2. |
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: May 15, 2019
|
|||
Name:
|
/s/ Robert Lisy
|
||
Title:
|
President and Chief Executive Officer
|
||
(Principal Executive Officer)
|
1. |
the Quarterly Report on Form 10-Q of the Company for the quarterly period ended March 31, 2019 (the “Report”) fully complies with the requirements of
Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and
|
2. |
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
Date: May 15, 2019
|
|||
Name:
|
/s/ Tony Lauro II
|
||
Title:
|
Chief Financial Officer
|
||
(Principal Financial Officer)
|