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-- Money transfer transaction volume excluding bill payment increased 6 percent, and money transfer fee and other revenue increased 3 percent versus prior year. On a constant currency basis, money transfer fee and other revenue excluding bill payment increased 5 percent versus prior year.
-- Global agent locations reached 186,000, an increase of 15 percent over prior year.
-- Adjusted EBITDA in the quarter was $66.6 million versus $75.7 million in the prior year, primarily driven by a $15.8 million decrease in net investment income in the third quarter of 2009.
-- Net loss for the quarter was $18.3 million and EBITDA was $29.3 million. Both EBITDA and net loss were impacted by $37.4 million of significant items in the quarter. These items include a $16.5 million legal accrual for a patent lawsuit; a $6.0 million legal accrual for settlement with the FTC; $9.2 million of stock-based compensation and executive severance; $8.4 million in impairment charges and $2.7 million of net securities gains.
-- Total revenue in the third quarter was $304.5 million, roughly unchanged from $305.0 million in the same period last year. Third quarter 2008 total revenue included net securities losses of $13.3 million and investment revenue that was $25.4 million more favorable compared with 2009.
-- Year-to-date total revenue in 2009 was $875.5 million, up from $608.1 million in the first three quarters of 2008. Year-to-date total revenue in 2008 included net securities losses of $350.8 million and investment revenue that was $101.3 million more favorable compared with 2009.
"In the third quarter we made great progress on our expansion initiatives and on our efforts to actively manage our debt," said Pamela H. Patsley, MoneyGram International chairman and chief executive officer. "While our third quarter results were affected by several items, we do not believe that these are reflective of the underlying strength of the business. During the quarter, we saw improved growth in our money transfer business, signed and renewed several key agents around the globe and implemented initiatives focused on reducing costs, streamlining processes and improving efficiencies. I am confident that as a company we are re-energized and collectively taking the right steps to position MoneyGram for long-term profitable growth."
Liquidity
The Company ended the third quarter with assets in excess of payment service obligations of $410.5 million, and earlier in this month paid down the remaining $45.0 million balance on its revolving credit facility. Over the last six months, the Company has paid down $145.0 million of its outstanding debt.
Market Development
In the third quarter of 2009, the Company continued its focus on expanding its agent network. For example, MoneyGram recently:
-- Expanded its agreement with Carrefour, the world's second largest retailer, to add money transfer services to 22 Carrefour hypermarkets throughout Romania.
-- Renewed a multi-year agreement with Itau Unibanco, Brazil's largest private-sector bank, and added 1,000 MoneyGram agent locations to the bank's existing MoneyGram network of nearly 5,000 branches.
-- Signed CUNA Strategic Services in the U.S., to provide 7,900 credit unions with turnkey access to MoneyGram's global money transfer and bill payment services.
-- Added 2,600 Union Bank of India locations through the Company's largest super agent, UAE Exchange Financial Services.
-- Added Citi Personal Loans and Citi Mortgage to the Company's growing list of clients offering customers the convenience of walk-in bill payment services.
-- Expanded MoneyGram's successful prepaid business with the addition of First Data, Metavante and TxVia, providing consumers with more convenient options to add funds to their re-loadable prepaid cards in MoneyGram's agent locations in the U.S.
"As we move into 2010, we will continue to expand our network and further enhance our product and service offerings thus increasing value and brand loyalty for our customers," added Patsley. "The adoption of new services, such as mobile text message 'receive' notifications and multi-currency payout, coupled with our MoneyGram Rewards global loyalty program, create a formidable platform for growth."
Global Funds Transfer Results
Total revenue for the Global Funds Transfer segment rose to $285.0 million in the third quarter of 2009 from $279.5 million in the same period last year. Segment results were impacted by a 6 percent increase in money transfer transaction volume excluding bill payment, partially offset by currency valuation changes and a decline in average money transfer fees. The segment reported operating income of $13.7 million, and an operating margin of 4.8 percent in the third quarter. Both operating income and margin were impacted by $27.1 million of the significant items discussed above. Adjusted margin was 14.3 percent.
Money transfer transaction volume excluding bill payment increased 6 percent and revenue increased 3 percent to $235.2 million in the third quarter of 2009 from $228.0 million in the third quarter of 2008. On a constant currency basis, money transfer revenue excluding bill payment improved 5 percent.
Money transfer transaction volume including bill payment was up 4 percent and revenue improved by 2 percent to $266.5 million in the third quarter of 2009 from $260.0 million in the third quarter of 2008. On a constant currency basis, money transfer revenue including bill payment improved 4 percent.
In the third quarter, money transfer transactions excluding bill payment originating in the United States and Canada increased 9 percent. Including bill payment, transactions increased 4 percent in the quarter from the prior year. Transactions originating outside of North America increased 8 percent from the prior year. Spain's economic downturn continues to impact the Company's international transaction growth. Excluding Spain, transactions originating outside of North America increased 17 percent from the prior year.
MoneyGram's transaction volume to Mexico decreased 10 percent in the quarter. However, the Company continued to see positive growth in its domestic U.S. business, and throughout much of Latin America and Canada.
Payment Systems Results
Payment Systems total revenue declined to $18.5 million in the third quarter of 2009 from $25.5 million in the third quarter of 2008. Net revenue in 2009 reflects investment revenue of $5.1 million and a net securities gain of $2.1 million, while 2008 net revenue reflects $26.8 million of investment revenue and $11.2 million in net securities losses and $10.6 million in commission expense. The segment reported operating income of $7.0 million in the third quarter of 2009, up from $1.9 million in the third quarter of 2008. Operating margin improved to 38.0 percent in the third quarter of 2009 from 7.6 percent in the comparable period last year.
Legal Accruals
In the third quarter, the Company recorded an accrual of $6.0 million related to a settlement with the Federal Trade Commission (FTC) regarding customer complaints that third parties have inappropriately used MoneyGram's money transfer services in conjunction with consumer fraud activities. This $6.0 million accrual is in addition to a $12.0 million accrual taken by the Company during the second quarter of 2009 toward the potential settlement. In combination, these accruals fully satisfy the monetary terms of the Company's settlement with the FTC.
Also during the quarter, the Company recorded an accrual for $16.5 million related to a verdict returned in a suit brought by Western Union involving certain Western Union patents. Post-trial motions are pending, including the Company's motions for judgment in its favor and for a new trial. The Company continues to evaluate next steps, including a possible appeal if its post-trial motions are not successful.
Non-GAAP Measures
In addition to results presented in accordance with GAAP, this press release and related tables include certain non-GAAP financial measures, including a presentation of EBITDA (earnings before interest, taxes, depreciation and amortization, including agent signing bonus amortization) and Adjusted EBITDA (EBITDA adjusted for significant items). The following tables include a full reconciliation of these non-GAAP financial measures to the related GAAP financial measures.
We believe that EBITDA and Adjusted EBITDA provide useful information to investors because they are an indicator of the strength and performance of ongoing business operations, including our ability to service debt and fund capital expenditures, acquisitions and operations. These calculations are commonly used as a basis for investors, analysts and credit rating agencies to evaluate and compare the operating performance and value of companies within our industry. In addition, the Company's debt agreements require compliance with financial measures based on EBITDA and Adjusted EBITDA. Finally, EBITDA and Adjusted EBITDA are financial measures used by management in reviewing results of operations, forecasting, assessing cash flow and capital, allocating resources and establishing employee incentive programs.
Although MoneyGram believes the above non-GAAP financial measures enhance investors' understanding of its business and performance, these non-GAAP financial measures should not be considered an exclusive alternative to accompanying GAAP financial measures.
Description of Tables
Table One - Consolidated Statements of Loss Table Two - Consolidated Statements of (Loss) Income (as Adjusted) Table Three - Global Funds Transfer Segment Results (as Adjusted) Table Four - Payment Systems Segment Results (as Adjusted) Table Five - EBITDA and Adjusted EBITDA Table Six - Consolidated Balance Sheets Table Seven - Assets in Excess of Payment Service Obligations
Conference Call
MoneyGram International will have a conference call today at 9:00 a.m. ET, 8:00 a.m. CT to discuss its third quarter 2009 results. Pamela H. Patsley, chairman and chief executive officer, and Jeff Woods, executive vice president and chief financial officer, will host the call. The conference call can be accessed by calling 1-877-548-7911 in the U.S. The participant confirmation number is 8914415. A replay of the conference call will be available one hour after the call concludes through 5:00 p.m. ET on Nov. 6, 2009. The replay of the call is available at 1-888-203-1112 for U.S. callers or 1-719-457-0820 for international callers. The confirmation code is 8914415.
About MoneyGram International, Inc.
MoneyGram International, Inc. is a leading global payment services company. The Company's major products and services include global money transfers, money orders and payment processing solutions for financial institutions and retail customers. MoneyGram is a New York Stock Exchange listed company with approximately 186,000 global money transfer agent locations in 190 countries and territories. For more information, visit the Company's website at www.moneygram.com.
Forward Looking Statements
The statements contained in this press release regarding MoneyGram International, Inc. that are not historical and factual information contained herein, particularly those statements pertaining to MoneyGram's expectations, guidance or future operating results, are forward-looking statements and are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements are only as of the date they are made, and unless legally required, MoneyGram undertakes no obligation to update or revise publicly any forward-looking statement. Words such as "estimates," "expects," "projects," "plans" and other similar expressions or future or conditional verbs such as "will," "should," "could," and "would" are intended to identify such forward-looking statements. These forward-looking statements are based on management's current expectations and are subject to uncertainty and changes in circumstances due to a number of factors, including, but not limited to the following: (a) our substantial dividend and debt service obligations and our covenant requirements which could impact our ability to obtain additional financing and to operate and grow our business; (b) sustained illiquidity of global financial markets which may adversely affect our liquidity and our agents' liquidity, our access to credit and capital and our agents' access to credit and capital and our earnings on our investment portfolio; (c) weak economic conditions generally and in geographic areas or industries that are important to our business which may cause a decline in our money transfer growth rate and transaction volume and/or revenue; (d) a material slow down or complete disruption of international migration patterns which could adversely affect our money transfer volume and growth rate; (e) a loss of material retail agent relationships or a reduction in transaction volume from them; (f) our ability to develop and implement successful pricing strategies for our services; (g) stockholder lawsuits and other litigation or government investigations of the Company or its agents which could result in material costs, settlements, fines or penalties; (h) our ability to maintain sufficient banking relationships; (i) our ability to attract and retain key employees; (j) our ability to maintain capital sufficient to pursue our growth strategy, fund key strategic initiatives and meet evolving regulatory requirements; (k) our ability to successfully and timely implement new or enhanced technology and infrastructure, delivery methods and product and service offerings and to invest in products, services and infrastructure; (l) our ability to adequately protect our brand and our other intellectual property rights and to avoid infringing on third-party intellectual property rights; (m) competition from large competitors, niche competitors or new competitors that may enter the markets in which we operate; (n) the impact of laws, regulatory requirements, and other industry practices in the U.S. and abroad, including changes in laws, regulations or other industry practices and standards that may increase our costs of doing business or reduce the market for or value of our services; (o) our offering of money transfer services through agents in regions that are politically volatile or, in a limited number of cases, are subject to certain Office of Foreign Assets Control ("OFAC") restrictions which could result in contravention of U.S. law or regulations by us or our agents which could subject us to fines and penalties and cause us reputational harm; (p) a breakdown, catastrophic event, security breach, privacy breach, improper operation or other event impacting our systems or processes or our vendors', agents' or financial institution customers' systems or processes, which could result in financial loss, loss of customers, regulatory sanctions and damage to our brand and reputation; (q) our ability to scale our technology to match our business and transactional growth; (r) our ability to manage our credit exposure to retail agents and financial institution customers; (s) our ability to mitigate fraud risks from consumers, agents and other third parties; (t) our ability to successfully manage risks associated with running Company-owned retail locations and acquiring new businesses; (u) our ability to successfully manage risks associated with our international sales and operations including the potential for political, economic or other instability in countries that are important to our business; (v) our compliance with the internal control provisions of Section 404 of the Sarbanes-Oxley Act of 2002; (w) the outcome of positions we take with respect to federal, state, local and international taxation; (x) additional risk factors described in our other filings with the Securities and Exchange Commission from time to time.
TABLE ONE
MONEYGRAM INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF LOSS
(Unaudited)
Three Months Ended Nine Months Ended
September 30, 2009 vs September 30, 2009 vs
(Amounts in thousands, except per share data) 2009 2008 2008 2009 2008 2008
REVENUE
Fee and other revenue $ 294,863 $ 286,021 $ 8,842 $ 841,500 $ 830,699 $ 10,801
Investment revenue 6,849 32,231 (25,382 ) 26,995 128,294 (101,299 )
Net securities gains (losses) 2,738 (13,253 ) 15,991 7,027 (350,844 ) 357,871
Total revenue 304,450 304,999 (549 ) 875,522 608,149 267,373
Fee commissions expense 128,352 131,397 (3,045 ) 368,660 377,727 (9,067 )
Investment commissions expense 375 9,968 (9,593 ) 1,128 101,472 (100,344 )
Total commissions expense 128,727 141,365 (12,638 ) 369,788 479,199 (109,411 )
Net revenue 175,723 163,634 12,089 505,734 128,950 376,784
EXPENSES
Compensation and benefits 58,963 53,541 5,422 158,234 173,976 (15,742 )
Transaction and operations support 82,573 48,530 34,043 198,223 151,894 46,329
Occupancy, equipment and supplies 12,254 11,069 1,185 35,517 34,682 835
Interest expense 26,127 27,834 (1,707 ) 79,816 66,631 13,185
Depreciation and amortization 14,510 13,891 619 43,834 42,397 1,437
Valuation loss on embedded derivative - 47,233 (47,233 ) - 16,030 (16,030 )
Debt extinguishment loss - - - - 1,499 (1,499 )
Total expenses 194,427 202,098 (7,671 ) 515,624 487,109 28,515
Loss before income taxes (18,704 ) (38,464 ) 19,760 (9,890 ) (358,159 ) 348,269
Income tax (benefit) expense (400 ) 88 (488 ) (110 ) 26,087 (26,197 )
NET LOSS $ (18,304 ) $ (38,552 ) $ 20,248 $ (9,780 ) $ (384,246 ) $ 374,466
Basic and diluted loss per common share $ (0.60 ) $ (0.80 ) $ 0.20 $ (1.19 ) $ (5.34 ) $ 4.15
Net loss as reported $ (18,304 ) $ (38,552 ) $ 20,248 $ (9,780 ) $ (384,246 ) $ 374,466
Preferred stock dividends (28,277 ) (24,995 ) (3,282 ) (81,111 ) (50,810 ) (30,301 )
Accretion recognized on preferred stock (2,580 ) (2,533 ) (47 ) (7,621 ) (5,192 ) (2,429 )
Net loss available to common stockholders $ (49,161 ) $ (66,080 ) $ 16,919 $ (98,512 ) $ (440,248 ) $ 341,736
Weighted-average outstanding common shares (1) 82,505 82,464 41 82,497 82,452 45
(1) The following potential common shares are excluded as
their effect is anti-dilutive in periods of net loss available to
common stockholders:
Shares related to stock options and restricted stock 22,560 3,485 15,781 3,918
Shares related to preferred stock 370,082 327,324 370,082 327,324
TABLE TWO
MONEYGRAM INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF (LOSS) INCOME (AS ADJUSTED)
(Unaudited)
Three Months Ended September 30, 2009 Three Months Ended September 30, 2008
(Amounts in thousands) As Reported Adjustments (1) Adjusted As Reported Adjustments (1) Adjusted
REVENUE
Fee and other revenue $ 294,863 $ - $ 294,863 $ 286,021 $ - $ 286,021
Investment revenue 6,849 - 6,849 32,231 - 32,231
Net securities gains (losses) 2,738 (2,738 ) - (13,253 ) 13,253 -
Total revenue 304,450 (2,738 ) 301,712 304,999 13,253 318,252
Fee commissions expense 128,352 - 128,352 131,397 - 131,397
Investment commissions expense 375 - 375 9,968 - 9,968
Total commissions expense 128,727 - 128,727 141,365 - 141,365
Net revenue 175,723 (2,738 ) 172,985 163,634 13,253 176,887
EXPENSES
Compensation and benefits 58,963 (8,933 ) 50,030 53,541 (1,199 ) 52,342
Transaction and operations support 82,573 (31,175 ) 51,398 48,530 (24 ) 48,506
Occupancy, equipment and supplies 12,254 - 12,254 11,069 - 11,069
Interest expense 26,127 - 26,127 27,834 - 27,834
Depreciation and amortization 14,510 - 14,510 13,891 - 13,891
Valuation loss on embedded derivative - - - 47,233 (47,233 ) -
Total expenses 194,427 (40,108 ) 154,319 202,098 (48,456 ) 153,642
(Loss) income before income taxes $ (18,704 ) $ 37,370 $ 18,666 $ (38,464 ) $ 61,709 $ 23,245
Nine Months Ended September 30, 2009 Nine Months Ended September 30, 2008
(Amounts in thousands) As Reported Adjustments (1) Adjusted As Reported Adjustments (1) Adjusted
REVENUE
Fee and other revenue $ 841,500 $ - $ 841,500 $ 830,699 $ - $ 830,699
Investment revenue 26,995 - 26,995 128,294 - 128,294
Net securities gains (losses) 7,027 (7,027 ) - (350,844 ) 350,844 -
Total revenue 875,522 (7,027 ) 868,495 608,149 350,844 958,993
Fee commissions expense 368,660 - 368,660 377,727 - 377,727
Investment commissions expense 1,128 - 1,128 101,472 (27,735 ) 73,737
Total commissions expense 369,788 - 369,788 479,199 (27,735 ) 451,464
Net revenue 505,734 (7,027 ) 498,707 128,950 378,579 507,529
EXPENSES
Compensation and benefits 158,234 (11,674 ) 146,560 173,976 (19,017 ) 154,959
Transaction and operations support 198,223 (47,150 ) 151,073 151,894 (8,963 ) 142,931
Occupancy, equipment and supplies 35,517 - 35,517 34,682 - 34,682
Interest expense 79,816 - 79,816 66,631 (1,982 ) (2) 64,649
Depreciation and amortization 43,834 - 43,834 42,397 - 42,397
Valuation loss on embedded derivative - - - 16,030 (16,030 ) -
Debt extinguishment loss - - - 1,499 (1,499 ) -
Total expenses 515,624 (58,824 ) 456,800 487,109 (47,491 ) 439,618
(Loss) income before income taxes $ (9,890 ) $ 51,797 $ 41,907 $ (358,159 ) $ 426,070 $ 67,911
(1) See Table 5 - EBITDA and Adjusted EBITDA for
a detailed listing of the adjustments.
(2) Loss upon termination of interest rate swaps
related to our debt.
TABLE THREE
MONEYGRAM INTERNATIONAL, INC.
GLOBAL FUNDS TRANSFER SEGMENT RESULTS (AS ADJUSTED)
(Unaudited)
Three Months Ended September 30, 2009 Three Months Ended September 30, 2008
(Amounts in thousands) As Reported Adjustments (1) Adjusted As Reported Adjustments (1) Adjusted
Money transfer revenue
Fee and other revenue $ 266,466 $ - $ 266,466 $ 259,952 $ - $ 259,952
Investment revenue 66 - 66 373 - 373
Net securities losses - - - (159 ) 159 -
Retail money order and other
Fee and other revenue 17,043 - 17,043 16,203 - 16,203
Investment revenue 1,081 - 1,081 5,049 - 5,049
Net securities gains (losses) 367 (367 ) - (1,891 ) 1,891 -
Total Global Funds Transfer revenue 285,023 (367 ) 284,656 279,527 2,050 281,577
Commissions expense 127,832 - 127,832 130,731 - 130,731
Net revenue $ 157,191 $ (367 ) $ 156,824 $ 148,796 $ 2,050 $ 150,846
Operating income $ 13,721 $ 27,099 $ 40,820 $ 39,514 $ 3,005 $ 42,519
Operating margin 4.8 % 14.3 % 14.1 % 15.1 %
Nine Months Ended September 30, 2009 Nine Months Ended September 30, 2008
(Amounts in thousands) As Reported Adjustments (1) Adjusted As Reported Adjustments (1) Adjusted
Money transfer revenue
Fee and other revenue $ 758,313 $ - $ 758,313 $ 751,552 $ - $ 751,552
Investment revenue 172 - 172 1,454 - 1,454
Net securities losses - - - (4,240 ) 4,240 -
Retail money order and other
Fee and other revenue 50,957 - 50,957 49,862 - 49,862
Investment revenue 4,058 - 4,058 18,919 - 18,919
Net securities gains (losses) 958 (958 ) - (46,769 ) 46,769 -
Total Global Funds Transfer revenue 814,458 (958 ) 813,500 770,778 51,009 821,787
Commissions expense 367,053 - 367,053 375,845 - 375,845
Net revenue $ 447,405 $ (958 ) $ 446,447 $ 394,933 $ 51,009 $ 445,942
Operating income $ 61,352 $ 43,583 $ 104,935 $ 66,462 $ 53,059 $ 119,521
Operating margin 7.5 % 12.9 % 8.6 % 14.5 %
(1) Represents the allocation to Global Funds Transfer
of the adjustments detailed in Table 5 - EBITDA and Adjusted
EBITDA.
TABLE FOUR
MONEYGRAM INTERNATIONAL, INC.
PAYMENT SYSTEMS SEGMENT RESULTS (AS ADJUSTED)
(Unaudited)
Three Months Ended September 30, 2009 Three Months Ended September 30, 2008
(Amounts in thousands) As Reported Adjustments (1) Adjusted As Reported Adjustments (1) Adjusted
Fee and other revenue $ 11,354 $ - $ 11,354 $ 9,869 $ - $ 9,869
Investment revenue 5,055 - 5,055 26,809 - 26,809
Net securities gains (losses) 2,095 (2,095 ) - (11,203 ) 11,203 -
Total Payment Systems revenue 18,504 (2,095 ) 16,409 25,475 11,203 36,678
Commissions expense 896 - 896 10,635 - 10,635
Net revenue $ 17,608 $ (2,095 ) $ 15,513 $ 14,840 $ 11,203 $ 26,043
Operating income $ 7,023 $ (214 ) $ 6,809 $ 1,927 $ 11,471 $ 13,398
Operating margin 38.0 % 41.5 % 7.6 % 36.5 %
Nine Months Ended September 30, 2009 Nine Months Ended September 30, 2008
(Amounts in thousands) As Reported Adjustments (1) Adjusted As Reported Adjustments (1) Adjusted
Fee and other revenue $ 32,205 $ - $ 32,205 $ 28,989 $ - $ 28,989
Investment revenue 20,131 - 20,131 107,989 - 107,989
Net securities gains (losses) 5,386 (5,386 ) - (299,835 ) 299,835 -
Total Payment Systems revenue (losses) 57,722 (5,386 ) 52,336 (162,857 ) 299,835 136,978
Commissions expense 2,735 - 2,735 103,354 (27,735 ) 75,619
Net revenue (losses) $ 54,987 $ (5,386 ) $ 49,601 $ (266,211 ) $ 327,570 $ 61,359
Operating income (loss) $ 23,718 $ (2,701 ) $ 21,017 $ (309,022 ) $ 328,113 $ 19,091
Operating margin 41.1 % 40.2 % NM 13.9 %
(1) Represents the allocation to Payment Systems of the
adjustments detailed in Table 5 - EBITDA and Adjusted EBITDA.
TABLE FIVE
MONEYGRAM INTERNATIONAL, INC.
EBITDA AND ADJUSTED EBITDA
(Unaudited)
Three Months Ended Nine Months Ended
September 30, September 30,
(Amounts in thousands) 2009 2008 2009 2008
Loss before income taxes $ (18,704 ) $ (38,464 ) $ (9,890 ) $ (358,159 )
Interest expense 26,127 27,834 79,816 66,631
Depreciation and amortization 14,510 13,891 43,834 42,397
Amortization of agent signing bonuses 7,331 10,711 24,413 27,809
EBITDA 29,264 13,972 138,173 (221,322 )
Significant items impacting EBITDA:
Net securities (gains) losses (2,738 ) 13,253 (7,027 ) 350,844
Severance and related costs (1) 3,752 - 5,010 17,653
Impairment charges (2) 8,409 - 12,267 -
Legal accruals (3) 22,500 - 34,500 -
Stock-based compensation expense (4) 5,447 1,223 7,047 2,594
Valuation loss on embedded derivatives (5) - 47,233 - 16,030
Transaction costs related to the recapitalization - - - 7,733
Debt extinguishment loss (6) - - - 1,499
Valuation loss on interest rate swaps (7) - - - 27,735
Adjusted EBITDA $ 66,634 $ 75,681 $ 189,970 $ 202,766
(1) Severance and related costs from executive
terminations, none of which is allocated to the segments. Related
costs are included in the "Transaction and operations support"
line in our Consolidated Statements of Loss.
(2) Impairment of the corporate airplane, goodwill and
capitalized software in connection with exit plans, of which $3.2
million is allocated to Global Funds Transfer for the nine months
ended September 30, 2009 and $1.4 million and $2.1 million is
allocated to Payment Systems for the three and nine months ended
September 30, 2009, respectively.
(3) Legal accruals for Global Funds Transfer related to
a patent lawsuit and a settlement agreement with the Federal Trade
Commission.
(4) Substantially all stock-based compensation is
included in the "Compensation and benefits" line in our
Consolidated Statements of Loss.
(5) Change in the fair value of embedded derivatives in
our preferred stock, none of which is allocated to the segments.
(6) Relates to the amendment of the Senior Credit
Facility during the recapitalization, none of which is allocated to
the segments.
(7) Loss upon the termination of interest rate swaps
related to the official check business in Payment Systems.
TABLE SIX
MONEYGRAM INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
September 30, December 31,
(Amounts in thousands, except share data) 2009 2008
ASSETS
Cash and cash equivalents $ - $ -
Cash and cash equivalents (substantially restricted) 3,876,105 4,077,381
Receivables, net (substantially restricted) 958,937 1,264,885
Trading investments and related put options (substantially 25,804 47,990
restricted)
Available-for-sale investments (substantially restricted) 324,942 438,774
Property and equipment 128,110 156,263
Intangible assets 11,949 14,548
Goodwill 428,117 434,337
Other assets 153,175 208,118
Total assets $ 5,907,139 $ 6,642,296
LIABILITIES
Payment service obligations $ 4,775,290 $ 5,437,999
Debt 879,171 978,881
Pension and other postretirement benefits 131,964 130,900
Accounts payable and other liabilities 140,183 121,586
Deferred tax liabilities 13,476 12,454
Total liabilities 5,940,084 6,681,820
MEZZANINE EQUITY
Participating Convertible Preferred Stock-Series B, $0.01 par 517,090 458,408
value, 800,000 shares authorized, 495,000 shares issued and
outstanding
Participating Convertible Preferred Stock-Series B-1, $0.01 par 313,854 283,804
value, 500,000 shares authorized, 272,500 shares issued and
outstanding
Total mezzanine equity 830,944 742,212
STOCKHOLDERS' DEFICIT
Preferred shares - undesignated, $0.01 par value, 5,000,000 - -
authorized, none issued
Preferred shares - junior participating, $0.01 par value, - -
2,000,000 authorized, none issued
Common shares, $0.01 par value, 1,300,000,000 shares authorized, 886 886
88,556,077 shares issued
Additional paid-in capital - 62,324
Retained loss (678,241 ) (649,254 )
Unearned employee benefits (46 ) (424 )
Accumulated other comprehensive loss (33,325 ) (42,707 )
Treasury stock: 6,035,848 and 5,999,175 shares at September 30, (153,163 ) (152,561 )
2009 and December 31, 2008, respectively
Total stockholders' deficit (863,889 ) (781,736 )
Total liabilities, mezzanine equity and stockholders' deficit $ 5,907,139 $ 6,642,296
TABLE SEVEN
MONEYGRAM INTERNATIONAL, INC.
ASSETS IN EXCESS OF PAYMENT SERVICE OBLIGATIONS
(Unaudited)
September 30, June 30, March 31, December 31,
(Amounts in thousands) 2009 2009 2009 2008
Cash and cash equivalents $ 3,876,105 $ 3,973,685 $ 3,904,783 $ 4,077,381
Receivables, net 958,937 1,098,388 1,117,184 1,264,885
Trading investments and related put options 25,804 37,309 50,127 47,990
Available-for-sale investments 324,942 357,432 415,827 438,774
5,185,788 5,466,814 5,487,921 5,829,030
Payment service obligations (4,775,290 ) (5,079,941 ) (5,067,167 ) (5,437,999 )
Assets in excess of payment service obligations $ 410,498 $ 386,873 $ 420,754 $ 391,031
SOURCE: MoneyGram International, Inc.
MoneyGram International, Inc. Lynda Michielutti, 952-591-3846 (Media) lmichielutti@moneygram.com Alex Holmes, 720-568-8703 (Investors) aholmes@moneygram.com
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