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MoneyGram International Reports Third Quarter 2012 Financial Results

MoneyGram International, Inc. (NYSE:MGI), a leading global payment services company, reported financial results for the third quarter, which ended September 30, 2012. Total revenue of $338.6 million increased 5 percent compared to $321.9 million in the third quarter of 2011.

  • Money transfer fee and other revenue increased 8 percent over the prior year, and increased 11 percent on a constant currency basis.
  • Money transfer transaction volume increased 13 percent over the prior year, led by:
    • 18 percent growth in sends originated outside of the U.S.
    • 13 percent growth in U.S. outbound on the strength of U.S.-to-Mexico sends, which grew 19 percent,
    • 9 percent growth in U.S.-to-U.S. sends.
  • Global agent locations increased 15 percent to 293,000.
  • The bill payment business showed 5 percent transaction growth driven by new channel expansion, excluding the prior year divestiture.
  • The Company reported net loss of ($54.8) million and negative EBITDA of ($8.2) million. Both net income and EBITDA were impacted by:
    • $70.0 million incremental accrual in connection with the settlement with the U.S. Attorney’s Office for the Middle District of Pennsylvania (“MDPA”) investigation
    • $3.9 million of restructuring and reorganization costs
    • $2.4 million of stock-based compensation
    • $2.2 million of legal expenses related to the MDPA investigation and the settled shareholder lawsuit.
  • Adjusted EBITDA for the third quarter decreased 2 percent to $70.4 million from $72.0 million in the prior year. In the quarter, adjusted EBITDA margin was 20.8 percent, down from 22.4 percent compared to the same period last year. Adjusted EBITDA was negatively impacted by $4.9 million of increased marketing spend, $2.4 million related to a lower euro valuation against the U.S. dollar compared to the prior year, and $1.0 million of lower investment revenue.
  • Diluted loss per common share was ($0.77), including a negative $1.00 per share impact due to the legal accrual and expenses, a negative $0.03 per share impact from restructuring and reorganization costs, and a negative $0.02 per share impact from stock-based compensation.
  • For the nine months ended September 30, 2012, total revenue was $986.8 million, an increase of 7 percent year-over-year. Adjusted EBITDA increased 5 percent to $207.2 million, which includes a negative impact of $5.2 million related to a lower euro valuation against the U.S. dollar compared to the prior year.

“Consumers continue to recognize MoneyGram’s compelling products and valuable services as evidenced by our third-quarter results, which included our sixth consecutive quarter of double-digit constant currency money transfer growth. We are focused on delivering strong operating results and building on the positive momentum in our core money transfer and bill payment businesses,” said Pamela H. Patsley, chairman and chief executive officer. “At the same time, we have worked diligently to address the Middle District of Pennsylvania investigation in a way that is best for all stakeholders. This settlement is a significant step forward for MoneyGram in resolving our legacy issues. We remain fully committed to employing the highest standards of compliance at MoneyGram and continue to focus our efforts on building a stronger company.”

Balance Sheet

MoneyGram ended the quarter with assets in excess of payment service obligations of $266.1 million, and outstanding debt principal of $813.5 million. Interest expense was $17.7 million in the quarter, down $4.5 million from the prior year as a result of refinancing activities. Book income tax expense in the quarter was $9.6 million, with approximately $0.1 million in cash tax expenses.

Cash Flow

Free cash flow for the quarter was $24.6 million, down from the prior year driven by higher signing bonuses for strategic agent renewals, and the timing of capital expenditures offset by lower interest payments. For the nine months ended September 30, 2012, free cash flow was $91.5 million, up 8 percent from the prior year period. This was driven by strong money transfer results and lower interest payments offset by higher capital expenditures and signing bonuses.

Market Developments

  • Announced a new agreement with Walmart, extending our relationship through March 31, 2016. MoneyGram will continue to offer money transfer, bill payment and money order products at all Walmart stores in the U.S. and Puerto Rico.
  • Renewed and expanded our relationship with Advance America, a leading provider of consumer financial services with more than 2,400 retail locations.
  • Signed a new global agreement with PayPal that will enable consumers to easily access money in their digital wallets. PayPal’s 117 million active account holders will have the option to put cash in and take funds out of their PayPal accounts at MoneyGram locations. Consumers underserved by traditional banking institutions will be able to fund PayPal accounts giving them convenient access to e-commerce.
  • Entered into an agreement with Gemalto, integrating MoneyGram’s money transfer platform with Gemalto’s LinqUs mobile payment platform solution, allowing customers to send international transfers from a mobile phone to a MoneyGram location or receive transfers directly to their mobile wallet.
  • Grew self-service and new channel revenue by 40 percent, which represented 5 percent of money transfer revenue in the quarter.
  • Network expansion activities during the quarter:
    • Entered into a strategic relationship with Payment Center to provide services in the Russian retail sector, opening up to 10,000 retail locations during the next two years.
    • Activated an additional 1,500 locations in the Indian Subcontinent with Federal Bank, Muthoot Finance and more than 600 retail locations.
    • Signed three additional banks in Latin America adding 1,000 locations in this important market.
    • Doubled our network in South Africa through the signing of First National Bank, one of the largest banks in the country.
    • Increased our agent locations in Malaysia through the signing of CIMB Islamic Bank.

“We remain steadfastly focused on positioning MoneyGram as the leading value brand for consumers to send and receive funds. Through continued global expansion, the extension of key agents like Walmart and the addition of new relationships like PayPal we ensure that vital financial services are provided safely and reliably to consumers who are underserved by traditional financial institutions around the world,” Patsley added.

Global Funds Transfer Segment Results

Total revenue for the Global Funds Transfer segment was $317.9 million, up 6 percent from $298.9 million in the third quarter of 2011. The segment reported operating income of $39.3 million and operating margin of 12.4 percent. Adjusted operating margin was 14.2 percent in the quarter, down from 16.4 percent in the prior year as a result of increased marketing spend and a lower euro valuation to the U.S. dollar. The increase in marketing was a planned shift in spend from the fourth quarter to the third quarter to take advantage of certain seasonal and global campaigns. For the full year, the Company still expects total marketing spend of approximately 4.5 percent of total revenue.

During the quarter, money transfer transaction volume increased 13 percent, continuing the Company’s double-digit growth trend. Money transfer fee and other revenue increased 8 percent to $291.3 million, compared with $270.4 million in the third quarter of 2011. On a constant currency basis, money transfer fee and other revenue increased 11 percent, the Company’s sixth consecutive quarter of double-digit growth.

Money transfer transactions originating outside of the U.S. increased a robust 18 percent over the prior year. U.S.-to-U.S. money transfer transaction volume continued its strong growth, increasing 9 percent over the prior year. U.S. Outbound transaction volume growth was 13 percent for the quarter led by U.S.-to-Mexico growth of 19 percent.

Bill payment transaction volume decreased 4 percent, while fee and other revenue decreased 7 percent to $26.4 million from the third quarter of 2011. Excluding the fourth quarter 2011 divestiture, transactions increased 5 percent and fee and other revenue decreased slightly.

Financial Paper Products Segment Results

Total revenue in the Financial Paper Products segment declined 10 percent to $20.3 million in the quarter, down from $22.5 million in the prior year quarter. Operating income was $7.6 million, up from $5.5 million in the third quarter of 2011. Operating margin was 37.3 percent. Adjusted operating margin was 39.7 percent in the quarter, up from 30.5 percent in the same period last year.

Outlook

For the fiscal year 2012, management is guiding to the low end of the previously provided ranges: total revenue growth of 7 percent to 9 percent; adjusted EBITDA growth in the range of 7 percent to 9 percent; and constant currency, adjusted for the impact of the euro to U.S. dollar exchange rate, adjusted EBITDA growth of 9 percent to 11 percent.

Legal Matters

The Company today issued a press release and filed a Form 8-K announcing that it has reached a settlement with the U.S. Attorney’s Office for the Middle District of Pennsylvania and the Asset Forfeiture and Money Laundering Section of the Criminal Division of the Department of Justice relating to the previously disclosed investigation of transactions involving certain of the Company’s U.S. and Canadian agents, as well as its fraud complaint data and consumer anti-fraud program, during the period from 2003 to early 2009.

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), Adjusted EBITDA (EBITDA adjusted for significant items), Adjusted EBITDA Margin and Free Cash Flow (Adjusted EBITDA less cash interest expense, cash tax expense, cash payments for capital expenditures and agent signing bonuses). In addition, we also present Adjusted Operating Income and Adjusted Operating Margin for our two reporting segments. The following tables include a full reconciliation of these non-GAAP financial measures to the related GAAP financial measures.

We believe that these non-GAAP financial measures 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, Adjusted EBITDA, Adjusted EBITDA Margin and Free Cash Flow are financial measures used by management in reviewing results of operations, forecasting, assessing cash flow and capital, allocating resources or 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) Income
Table Two – Segment Results
Table Three – Segment Reconciliations
Table Four – EBITDA, Adjusted EBITDA and Adjusted EBITDA Margin
Table Five – Consolidated Balance Sheets
Table Six – Assets in Excess of Payment Service Obligations
Table Seven – Free Cash Flow

Conference Call

MoneyGram International will host a conference call today at 9 a.m. ET, 8 a.m. CT, to discuss its third quarter results. Pamela H. Patsley, chairman and chief executive officer, will host the call. The conference call can be accessed by calling 1-888-339-3504 (U.S.) and +1-719-325-4937 (International). The participant code is 6426555. Slides are available on MoneyGram’s website at moneygram.com. A replay of the conference call will be available at noon ET on November 9, 2012, through 11:59 p.m. ET on November 16, 2012. The replay of the call is available at 1-877-870-5176 (U.S.) or +1-858-384-5517 (International). The replay participant code is 6246555.

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 293,000 global money transfer agent locations in 197 countries and territories. For more information, visit the Company's website at moneygram.com.

Forward Looking Statements

This Form 8-K may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements with respect to, among other things, the financial condition, results of operations, plans, objectives, future performance and business of MoneyGram and its subsidiaries. Forward-looking statements can be identified by words such as “believes,” “estimates,” “expects,” “projects,” “plans,” “will,” “should,” “could,” “would” and other similar expressions. These forward-looking statements speak only as of the date they are made, and MoneyGram undertakes no obligation to publicly update or revise any forward-looking statement, except as required by federal securities law. These forward-looking statements are based on management’s current expectations and are subject to certain risks, uncertainties and changes in circumstances due to a number of factors. These factors include, but are not limited to: the impact of the $100 million forfeiture on our financial condition and results of operations, the Company’s compliance with the terms of the deferred prosecution agreement, the effect of the settlement and compliance with the deferred prosecution agreement on the Company’s reputation and business; the outcome of ongoing investigations by several state governments; our ability to maintain key agent or biller relationships, or a reduction in transaction volume from these relationships; our substantial debt service obligations, significant debt covenant requirements and credit rating; our capital structure and the special voting rights provided to designees of Thomas H. Lee Partners, L.P. on our Board of Directors; sustained financial market illiquidity, or illiquidity at our clearing, cash management and custodial financial institutions; continued weakness in economic conditions, in both the United States and global markets; a material slow down or complete disruption of international migration patterns; litigation involving MoneyGram or its agents, which could result in material settlements, fines or penalties; fluctuations in interest rates; our ability to manage credit risks from our retail agents and official check financial institution customers; our ability to manage fraud risks from consumers or agents; the ability of MoneyGram and its agents to maintain adequate banking relationships; our ability to retain partners to operate our official check and money order businesses; our ability to maintain sufficient capital; our ability to attract and retain key employees; our ability to successfully develop and timely introduce new and enhanced products and services; investments in new products, services or infrastructure changes; our ability to adequately protect our brand and intellectual property rights and to avoid infringing on the rights of others; our ability to compete effectively; the ability of us and our agents to comply with U.S. and international laws and regulations, including the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010; changes in tax laws or an unfavorable outcome with respect to the audit of our tax returns or tax positions, or a failure by us to establish adequate reserves for tax events; 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 restrictions by the Office of Foreign Assets Control; a security or privacy breach in our facilities, networks or databases; disruptions to our computer network systems and data centers; our ability to effectively operate and adapt our technology to match our business growth; our ability to manage risks related to the operation of retail locations and the acquisition or start-up of businesses; our ability to manage risks associated with our international sales and operations; our ability to maintain effective internal controls; and the risks and uncertainties described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of MoneyGram’s public reports filed with the SEC, including MoneyGram’s Form 10-K for the year ended December 31, 2011 and its Form 10-Q for the quarter ended September 30, 2012.

           
TABLE ONE
MONEYGRAM INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF (LOSS) INCOME
(Unaudited)
 
 
(Amounts in thousands, except per share data) Three Months Ended Nine Months Ended
September 30, 2012 vs September 30, 2012 vs
2012 2011 2011 2012 2011 2011
 
REVENUE
Fee and other revenue $ 335,630 $ 318,022 $ 17,608 $ 977,254 $ 912,105 $ 65,149
Investment revenue   2,920     3,925   (1,005 )   9,533     13,819     (4,286 )
Total revenue   338,550     321,947   16,603     986,787     925,924     60,863  
EXPENSES
Fee and other commissions expense 152,372 141,010 11,362 440,960 405,631 35,329
Investment commissions expense   94     99   (5 )   274     350     (76 )
Total commissions expense 152,466 141,109 11,357 441,234 405,981 35,253
Compensation and benefits 54,744 60,635 (5,891 ) 172,838 177,843 (5,005 )
Transaction and operations support 135,604 57,375 78,229 291,826 166,378 125,448
Occupancy, equipment and supplies 12,270 11,090 1,180 36,623 34,480 2,143
Depreciation and amortization   10,840     11,413   (573 )   32,576     34,958     (2,382 )
Total operating expenses   365,924     281,622   84,302     975,097     819,640     155,457  
OPERATING (LOSS) INCOME   (27,374 )   40,325   (67,699 )   11,690     106,284     (94,594 )
Other (income) expense
Net securities gains - - - - (32,816 ) 32,816
Interest expense 17,710 22,234 (4,524 ) 53,230 65,720 (12,490 )
Other   50     770   (720 )   397     15,626     (15,229 )
Total other expense, net   17,760     23,004   (5,244 )   53,627     48,530     5,097  
(Loss) income before income taxes (45,134 ) 17,321 (62,455 ) (41,937 ) 57,754 (99,691 )
Income tax expense   9,626     1,487   8,139     27,610     1,471     26,139  
NET (LOSS) INCOME $ (54,760 ) $ 15,834 $ (70,594 ) $ (69,547 ) $ 56,283   $ (125,830 )
 
(Loss) earnings per common share:
Basic $ (0.77 ) $ 0.22 $ (0.99 ) $ (0.97 ) $ (10.82 ) $ 9.85
Diluted $ (0.77 ) $ 0.22 $ (0.99 ) $ (0.97 ) $ (10.82 ) $ 9.85
 
Net (loss) income available to common stockholders:
Net (loss) income as reported $ (54,760 ) $ 15,834 $ (70,594 ) $ (69,547 ) $ 56,283 $ (125,830 )
Accrued dividends on mezzanine equity - - - - (30,934 ) 30,934
Accretion on mezzanine equity - - - - (80,023 ) 80,023

Additional consideration issued in connection with conversion of mezzanine equity

- - - - (366,797 ) 366,797
Cash dividends paid on mezzanine equity   -     -   -     -     (20,477 )   20,477  
Net (loss) income available to common stockholders $ (54,760 ) $ 15,834 $ (70,594 ) $ (69,547 ) $ (441,948 ) $ 372,401  
 
Shares used in computing (loss) earnings per share: (1)
Basic 71,512 71,478 34 71,501 40,854 30,647
Diluted 71,512 72,176 (664 ) 71,501 40,854 30,647
 
 

(1) Includes common stock equivalents of 13.7 million for the three and nine months ended September 30, 2012, respectively. The following weighted-average potential common shares are excluded from diluted income (loss) per common share as their effect is anti-dilutive. All potential common shares are anti-dilutive in periods of net loss available to common stockholders.

 
 
Shares related to stock options 4,593 2,950 4,996 5,108
Shares related to restricted stock and restricted stock units 541 - 462 26
Shares related to preferred stock - - - 28,062
 

           
TABLE TWO
MONEYGRAM INTERNATIONAL, INC.
SEGMENT RESULTS
(Unaudited)
 
Global Funds Transfer
Three Months Ended Nine Months Ended
September 30, 2012 vs September 30, 2012 vs
(Amounts in thousands) 2012 2011 2011 2012 2011 2011
 
Money transfer revenue:
Fee and other revenue $ 291,305 $ 270,407 $ 20,898 $ 841,628 $ 766,198 $ 75,430
Investment revenue 138 207 (69 ) 568 405 163
Bill payment revenue:
Fee and other revenue 26,439 28,278 (1,839 ) 80,091 85,905 (5,814 )
Investment revenue   -     -     -     -     4     (4 )
Total revenue   317,882     298,892     18,990     922,287     852,512     69,775  
 
Commissions expense   151,996     140,857     11,139     439,799     404,149     35,650  
 
Operating income $ 39,279   $ 39,083   $ 196   $ 111,187   $ 91,441   $ 19,746  
 
Operating margin 12.4 % 13.1 % 12.1 % 10.7 %
 
 
Financial Paper Products
Three Months Ended Nine Months Ended
September 30, 2012 vs September 30, 2012 vs
(Amounts in thousands) 2012 2011 2011 2012 2011 2011
 
Money order revenue:
Fee and other revenue $ 13,450 $ 14,181 $ (731 ) $ 41,761 $ 43,568 $ (1,807 )
Investment revenue 468 639 (171 ) 1,565 2,605 (1,040 )
Official check revenue:
Fee and other revenue 4,382 4,947 (565 ) 13,724 16,162 (2,438 )
Investment revenue   1,991     2,716     (725 )   6,428     9,683     (3,255 )
Total revenue   20,291     22,483     (2,192 )   63,478     72,018     (8,540 )
 
Commissions expense   470     332     138     1,436     1,912     (476 )
 
Operating income $ 7,564   $ 5,533   $ 2,031   $ 24,634   $ 23,257   $ 1,377  
 
Operating margin 37.3 % 24.6 % 38.8 % 32.3 %
 

           
TABLE THREE
MONEYGRAM INTERNATIONAL, INC.
SEGMENT RECONCILIATIONS
(Unaudited)
 
Global Funds Transfer
Three Months Ended Nine Months Ended
September 30, 2012 vs September 30, 2012 vs
(Amounts in thousands) 2012 2011 2011 2012 2011 2011
 
Revenue (as reported) $ 317,882   $ 298,892   $ 18,990   $ 922,287   $ 852,512   $ 69,775  
 
Adjusted operating income $ 45,070 $ 48,978 $ (3,908 ) $ 130,904 $ 115,890 $ 15,014
 
Restructuring and reorganization costs (3,620 ) (6,160 ) 2,540 (12,917 ) (14,050 ) 1,133
Stock-based compensation expense   (2,171 )   (3,735 )   1,564     (6,800 )   (10,399 )   3,599  
Total adjustments (5,791 ) (9,895 ) 4,104 (19,717 ) (24,449 ) 4,732
                                     
Operating income (as reported) $ 39,279   $ 39,083   $ 196   $ 111,187   $ 91,441   $ 19,746  
 
Adjusted operating margin 14.2 % 16.4 % 14.2 % 13.6 %
Total adjustments (1.8 %) (3.3 %) (2.1 %) (2.9 %)
Operating margin (as reported) 12.4 % 13.1 % 12.1 % 10.7 %
 
 
Financial Paper Products
Three Months Ended Nine Months Ended
September 30, 2012 vs September 30, 2012 vs
(Amounts in thousands) 2012 2011 2011 2012 2011 2011
 
Revenue (as reported) $ 20,291   $ 22,483   $ (2,192 ) $ 63,478   $ 72,018   $ (8,540 )
 
Adjusted operating income $ 8,052 $ 6,859 $ 1,193 $ 26,477 $ 26,663 $ (186 )
 
Restructuring and reorganization costs (241 ) (671 ) 430 (1,066 ) (1,673 ) 607
Stock-based compensation expense   (247 )   (655 )   408     (777 )   (1,733 )   956  
Total adjustments (488 ) (1,326 ) 838 (1,843 ) (3,406 ) 1,563
                                     
Operating income (as reported) $ 7,564   $ 5,533   $ 2,031   $ 24,634   $ 23,257   $ 1,377  
 
Adjusted operating margin 39.7 % 30.5 % 41.7 % 37.0 %
Total adjustments (2.4 %) (5.9 %) (2.9 %) (4.7 %)
Operating margin (as reported) 37.3 % 24.6 % 38.8 % 32.3 %
 

       
TABLE FOUR
MONEYGRAM INTERNATIONAL, INC.
EBITDA, ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN
(Unaudited)
 
 
Three Months Ended Nine Months Ended
September 30, September 30,
(Amounts in thousands) 2012 2011 2012 2011
 
(Loss) income before income taxes $ (45,134 ) $ 17,321 $ (41,937 ) $ 57,754
Interest expense 17,710 22,234 53,230 65,720
Depreciation and amortization 10,840 11,413 32,576 34,958
Amortization of agent signing bonuses   8,377     8,115     24,761     24,182  
EBITDA (8,207 ) 59,083 68,630 182,614
 
Significant items impacting EBITDA:
Net securities gains - - - (32,816 )
Severance and related costs (1) - - 1,029 (31 )
Restructuring and reorganization costs 3,949 6,375 14,163 17,259
Capital transaction costs (2) - (114 ) - 5,407

Asset impairment charges (3)

- 884 - 2,686
Contribution from investors (4) - - 347 -

Debt extinguishment (5)

- - - 5,220
Stock-based compensation expense 2,419 4,403 7,579 12,166
Legal accruals and fees (6)   72,215     1,341     115,463     3,954  
Adjusted EBITDA $ 70,376   $ 71,972   $ 207,211   $ 196,459  
 
Adjusted EBITDA margin (7) 20.8 % 22.4 % 21.0 % 21.2 %
 
 
(1) Severance and related costs from executive terminations.
(2) Represents professional and legal fees related to the 2011 Recapitalization.
(3) Impairments of assets in 2011 relate to disposition activity.

(4) Expense resulting from payment by an investor to Wal-Mart upon liquidation of their investment and as required by the Participation Agreement.

(5) Debt extinguishment loss upon the termination of the senior facility in connection with the 2011 Recapitalization.

(6) Legal expenses for 2012 primarily include accruals in connection with the settlement related to the U.S. Attorney's Office for the Middle District of Pennsylvania investigation and the shareholder derivative litigation, and legal fees and expenses related to these matters. Legal expenses for 2011 related primarily to the shareholder derivative litigation.

(7) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Total Revenue.
 

   
TABLE FIVE
MONEYGRAM INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
(Unaudited)
 
 
September 30, December 31,
(Amounts in thousands, except share and per share data) 2012 2011
ASSETS
Cash and cash equivalents $ - $ -
Cash and cash equivalents (substantially restricted) 2,539,844 2,572,174
Receivables, net (substantially restricted) 1,330,018 1,220,065
Short-term investments (substantially restricted) 524,428 522,024
Available-for-sale investments (substantially restricted) 79,907 102,771
Property and equipment 119,906 116,341
Goodwill 428,691 428,691
Other assets   224,201     213,512  

Total assets

$ 5,246,995   $ 5,175,578  
 
LIABILITIES
Payment service obligations $ 4,208,052 $ 4,205,375
Debt 810,112 810,888
Pension and other postretirement benefits 110,931 120,252
Accounts payable and other liabilities   281,513     149,261  

Total liabilities

  5,410,608     5,285,776  
 
STOCKHOLDERS' DEFICIT

Participating Convertible Preferred Stock - Series D, $0.01 par value, 200,000 shares authorized, 109,239 issued at September 30, 2012, and December 31, 2011, respectively

281,898 281,898

Common Stock, $0.01 par value, 162,500,000 shares authorized, 62,263,963 shares issued at September 30, 2012, and December 31, 2011, respectively

623 623
Additional paid-in capital 999,464 989,188
Retained loss (1,286,065 ) (1,216,543 )
Accumulated other comprehensive loss (32,794 ) (38,028 )

Treasury stock: 4,407,038 and 4,429,184 shares at September 30, 2012, and December 31, 2011, respectively

  (126,739 )   (127,336 )

Total stockholders' deficit

  (163,613 )   (110,198 )

Total liabilities and stockholders' deficit

$ 5,246,995   $ 5,175,578  
 

       
TABLE SIX
MONEYGRAM INTERNATIONAL, INC.
ASSETS IN EXCESS OF PAYMENT SERVICE OBLIGATIONS
(Unaudited)
 
 
September 30, June 30, March 31, December 31,
(Amounts in thousands) 2012 2012 2012 2011
 
Cash and cash equivalents $ 2,539,844 $ 2,548,257 $ 2,547,250 $ 2,572,174
Receivables, net 1,330,018 1,266,882 1,210,506 1,220,065
Short-term investments 524,428 524,055 525,356 522,024
Available-for-sale investments   79,907     85,281     93,127     102,771  
4,474,197 4,424,475 4,376,239 4,417,034
Payment service obligations   (4,208,052 )   (4,155,880 )   (4,152,604 )   (4,205,375 )
Assets in excess of payment service obligations $ 266,145   $ 268,595   $ 223,635   $ 211,659  
 

       
TABLE SEVEN
MONEYGRAM INTERNATIONAL, INC.
FREE CASH FLOW
(Unaudited)
 
 
Three Months Ended Nine Months Ended
September 30, September 30,
(Amounts in thousands) 2012 2011 2012 2011
 
Adjusted EBITDA $ 70,376 $ 71,972 $ 207,211 $ 196,459
 
Cash payments for interest (16,454 ) (21,107 ) (48,903 ) (60,109 )
Cash payments for tax (115 ) (102 ) (913 ) (611 )
Cash payments for capital expenditures (12,918 ) (6,761 ) (43,213 ) (30,606 )
Cash payments for agent signing bonuses (16,297 ) (7,568 ) (22,637 ) (20,371 )
                         
Free Cash Flow $ 24,592   $ 36,434   $ 91,545   $ 84,762  
 

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@ThingsExpo Stories
From telemedicine to smart cars, digital homes and industrial monitoring, the explosive growth of IoT has created exciting new business opportunities for real time calls and messaging. In his session at @ThingsExpo, Ivelin Ivanov, CEO and Co-Founder of Telestax, shared some of the new revenue sources that IoT created for Restcomm – the open source telephony platform from Telestax. Ivelin Ivanov is a technology entrepreneur who founded Mobicents, an Open Source VoIP Platform, to help create, deploy, and manage applications integrating voice, video and data. He is the co-founder of TeleStax, a...
SYS-CON Events announced today that Akana, formerly SOA Software, has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. Akana’s comprehensive suite of API Management, API Security, Integrated SOA Governance, and Cloud Integration solutions helps businesses accelerate digital transformation by securely extending their reach across multiple channels – mobile, cloud and Internet of Things. Akana enables enterprises to share data as APIs, connect and integrate applications, drive part...
VoxImplant has announced full WebRTC support in the newest versions of its Android SDK and iOS SDK. The updated SDKs, which enable audio and video calls on mobile devices, are now compatible with the WebRTC standard to allow any mobile app to communicate with WebRTC-enabled browsers, including Google Chrome, Mozilla Firefox, Opera, and, when available, Microsoft Spartan. The WebRTC-updated SDKs represent VoxImplant's continued leadership in simplifying the development of real-time communications (RTC) services for app developers. VoxImplant (built by Zingaya, the real-time communication servi...
SYS-CON Events announced today that CommVault has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. A singular vision – a belief in a better way to address current and future data management needs – guides CommVault in the development of Singular Information Management® solutions for high-performance data protection, universal availability and sim...
SYS-CON Events announced today that SafeLogic has been named “Bag Sponsor” of SYS-CON's 16th International Cloud Expo® New York, which will take place June 9-11, 2015, at the Javits Center in New York City, NY. SafeLogic provides security products for applications in mobile and server/appliance environments. SafeLogic’s flagship product CryptoComply is a FIPS 140-2 validated cryptographic engine designed to secure data on servers, workstations, appliances, mobile devices, and in the Cloud.
SYS-CON Events announced today that StorPool Storage will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. StorPool is distributed storage software that allows service providers, enterprises and other cloud builders to run data storage on standard x86 servers, instead of using expensive and inefficient storage arrays (SAN).
The IoT Bootcamp is coming to Cloud Expo | @ThingsExpo on June 9-10 at the Javits Center in New York. Instructor. Registration is now available at http://iotbootcamp.sys-con.com/ Instructor Janakiram MSV previously taught the famously successful Multi-Cloud Bootcamp at Cloud Expo | @ThingsExpo in November in Santa Clara. Now he is expanding the focus to Janakiram is the founder and CTO of Get Cloud Ready Consulting, a niche Cloud Migration and Cloud Operations firm that recently got acquired by Aditi Technologies. He is a Microsoft Regional Director for Hyderabad, India, and one of the f...
SYS-CON Events announced today that kintone has been named “Bronze Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY, and the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. kintone promotes cloud-based workgroup productivity, transparency and profitability with a seamless collaboration space, build your own business application (BYOA) platform, and workflow automation system.
SYS-CON Events announced today that Site24x7, the cloud infrastructure monitoring service, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Site24x7 is a cloud infrastructure monitoring service that helps monitor the uptime and performance of websites, online applications, servers, mobile websites and custom APIs. The monitoring is done from 50+ locations across the world and from various wireless carriers, thus providing a global perspective of the end-user experience. Site24x7 supports monitoring H...
SYS-CON Events announced today that Intelligent Systems Services will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Established in 1994, Intelligent Systems Services Inc. is located near Washington, DC, with representatives and partners nationwide. ISS’s well-established track record is based on the continuous pursuit of excellence in designing, implementing and supporting nationwide clients’ mission-critical systems. ISS has completed many successful projects in Healthcare, Commercial, Manufacturing, ...
WebRTC is an up-and-coming standard that enables real-time voice and video to be directly embedded into browsers making the browser a primary user interface for communications and collaboration. WebRTC runs in a number of browsers today and is currently supported in over a billion installed browsers globally, across a range of platform OS and devices. Today, organizations that choose to deploy WebRTC applications and use a host machine that supports audio through USB or Bluetooth can use Plantronics products to connect and transit or receive the audio associated with the WebRTC session.
The best mobile applications are augmented by dedicated servers, the Internet and Cloud services. Mobile developers should focus on one thing: writing the next socially disruptive viral app. Thanks to the cloud, they can focus on the overall solution, not the underlying plumbing. From iOS to Android and Windows, developers can leverage cloud services to create a common cross-platform backend to persist user settings, app data, broadcast notifications, run jobs, etc. This session provides a high level technical overview of many cloud services available to mobile app developers, includi...
SYS-CON Events announced today that B2Cloud, a provider of enterprise resource planning software, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. B2cloud develops the software you need. They have the ideal tools to help you work with your clients. B2Cloud’s main solutions include AGIS – ERP, CLOHC, AGIS – Invoice, and IZUM
SYS-CON Events announced today that Tufin, the market-leading provider of Security Policy Orchestration Solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. As the market leader of Security Policy Orchestration, Tufin automates and accelerates network configuration changes while maintaining security and compliance. Tufin's award-winning Orchestration Suite™ gives IT organizations the power and agility to enforce security policy across complex, multi-vendor enterprise networks. With more than 1...
The WebRTC Summit 2015 New York, to be held June 9-11, 2015, at the Javits Center in New York, NY, announces that its Call for Papers is open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 16th International Cloud Expo, @ThingsExpo, Big Data Expo, and DevOps Summit.
As enterprises move to all-IP networks and cloud-based applications, communications service providers (CSPs) – facing increased competition from over-the-top providers delivering content via the Internet and independently of CSPs – must be able to offer seamless cloud-based communication and collaboration solutions that can scale for small, midsize, and large enterprises, as well as public sector organizations, in order to keep and grow market share. The latest version of Oracle Communications Unified Communications Suite gives CSPs the capability to do just that. In addition, its integration ...
SYS-CON Events announced today that Cloudian, Inc., the leading provider of hybrid cloud storage solutions, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Cloudian, Inc., is a Foster City, California - based software company specializing in cloud storage software. The main product is Cloudian, an Amazon S3-compliant cloud object storage platform, the bedrock of cloud computing systems, that enables cloud service providers and enterprises to build reliable, affordable and scalable cloud storage solu...
SYS-CON Events announced today that Gridstore™, the leader in hyper-converged infrastructure purpose-built to optimize Microsoft workloads, will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. Gridstore™ is the leader in hyper-converged infrastructure purpose-built for Microsoft workloads and designed to accelerate applications in virtualized environments. Gridstore’s hyper-converged infrastructure is the industry’s first all flash version of HyperConverged Appliances that include both compute and storag...
SYS-CON Events announced today that IDenticard will exhibit at SYS-CON's 16th International Cloud Expo®, which will take place on June 9-11, 2015, at the Javits Center in New York City, NY. IDenticard™ is the security division of Brady Corp (NYSE: BRC), a $1.5 billion manufacturer of identification products. We have small-company values with the strength and stability of a major corporation. IDenticard offers local sales, support and service to our customers across the United States and Canada. Our partner network encompasses some 300 of the world's leading systems integrators and security s...
BroadSoft on Tuesday announced that it is a recipient of the 2014 Frost & Sullivan Market Leadership Award in the Hosted/Cloud Internet Protocol (IP) Telephony market for Latin America. According to Frost & Sullivan market research, the Latin America (LATAM) hosted/cloud Internet Protocol (IP) telephony market, including integrated unified communications and collaboration (UC&C) applications, is currently experiencing a rapid growth trajectory and is expected to exhibit a tenfold rise in annual revenues in the 2013-2020 period. With more than 600 cloud deployments internationally, BroadSoft w...