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8-K - FORM 8-K - MONEYGRAM INTERNATIONAL INC | c57034e8vk.htm |
Exhibit 99.1
TABLE ONE
MONEYGRAM INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
REVISED AS OF MARCH 15, 2010
(Unaudited)
MONEYGRAM INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
REVISED AS OF MARCH 15, 2010
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||||||||||
December 31, | 2009 vs | December 31, | 2009 vs | |||||||||||||||||||||
(Amounts in thousands, except per share data) | 2009 | 2008 | 2008 | 2009 | 2008 | 2008 | ||||||||||||||||||
REVENUE |
||||||||||||||||||||||||
Fee and other revenue |
$ | 289,393 | $ | 274,978 | $ | 14,415 | $ | 1,130,893 | $ | 1,105,676 | $ | 25,217 | ||||||||||||
Investment revenue |
6,224 | 33,836 | (27,612 | ) | 33,219 | 162,130 | (128,911 | ) | ||||||||||||||||
Net securities gains (losses) |
763 | 10,155 | (9,392 | ) | 7,790 | (340,688 | ) | 348,478 | ||||||||||||||||
Total revenue |
296,380 | 318,969 | (22,589 | ) | 1,171,902 | 927,118 | 244,784 | |||||||||||||||||
Fee commissions expense |
128,445 | 124,590 | 3,855 | 497,105 | 502,317 | (5,212 | ) | |||||||||||||||||
Investment commissions expense |
234 | 819 | (585 | ) | 1,362 | 102,292 | (100,930 | ) | ||||||||||||||||
Total commissions expense |
128,679 | 125,409 | 3,270 | 498,467 | 604,609 | (106,142 | ) | |||||||||||||||||
Net revenue |
167,701 | 193,560 | (25,859 | ) | 673,435 | 322,509 | 350,926 | |||||||||||||||||
EXPENSES |
||||||||||||||||||||||||
Compensation and benefits |
40,819 | 50,604 | (9,785 | ) | 199,053 | 224,580 | (25,527 | ) | ||||||||||||||||
Transaction and operations support |
86,054 | 68,012 | 18,042 | 284,277 | 219,905 | 64,372 | ||||||||||||||||||
Occupancy, equipment and supplies |
11,908 | 11,312 | 596 | 47,425 | 45,994 | 1,431 | ||||||||||||||||||
Interest expense |
28,095 | 28,389 | (294 | ) | 107,911 | 95,020 | 12,891 | |||||||||||||||||
Depreciation and amortization |
13,257 | 14,275 | (1,018 | ) | 57,091 | 56,672 | 419 | |||||||||||||||||
Valuation loss on embedded derivatives |
| | | | 16,030 | (16,030 | ) | |||||||||||||||||
Debt extinguishment loss |
| | | | 1,499 | (1,499 | ) | |||||||||||||||||
Total expenses |
180,133 | 172,592 | 7,541 | 695,757 | 659,700 | 36,057 | ||||||||||||||||||
(Loss) income before income taxes |
(12,432 | ) | 20,968 | (33,400 | ) | (22,322 | ) | (337,191 | ) | 314,869 | ||||||||||||||
Income tax benefit |
(20,306 | ) | (101,893 | ) | 81,587 | (20,416 | ) | (75,806 | ) | 55,390 | ||||||||||||||
NET INCOME (LOSS) |
$ | 7,874 | $ | 122,861 | $ | (114,987 | ) | $ | (1,906 | ) | $ | (261,385 | ) | $ | 259,479 | |||||||||
Basic (loss) earnings per common share |
$ | (0.29 | ) | $ | 0.23 | $ | (0.52 | ) | $ | (1.48 | ) | $ | (4.19 | ) | $ | 2.71 | ||||||||
Diluted (loss) earnings per common share |
$ | (0.29 | ) | $ | 0.22 | $ | (0.51 | ) | $ | (1.48 | ) | $ | (4.19 | ) | $ | 2.71 | ||||||||
Net (loss) income available to common stockholders: |
||||||||||||||||||||||||
Net income (loss) as reported |
$ | 7,874 | $ | 122,861 | $ | (114,987 | ) | $ | (1,906 | ) | $ | (261,385 | ) | $ | 259,479 | |||||||||
Accrued preferred stock dividends |
(29,168 | ) | (25,782 | ) | (3,386 | ) | (110,279 | ) | (76,593 | ) | (33,686 | ) | ||||||||||||
Accretion recognized on preferred stock |
(2,592 | ) | (2,545 | ) | (47 | ) | (10,213 | ) | (7,736 | ) | (2,477 | ) | ||||||||||||
Undistributed earnings allocated to preferred stock |
| (75,977 | ) | 75,977 | | | | |||||||||||||||||
Net (loss) income available to common stockholders |
$ | (23,886 | ) | $ | 18,557 | $ | (118,420 | ) | $ | (122,398 | ) | $ | (345,714 | ) | $ | 223,316 | ||||||||
- | ||||||||||||||||||||||||
Weighted-average outstanding common shares (1) |
82,505 | 82,464 | 41 | 82,499 | 82,456 | 43 | ||||||||||||||||||
(1) The following potential common shares are excluded from diluted (loss)
earnings 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 and restricted stock |
38,156 | 2,972 | 21,664 | 3,704 | ||||||||||||||||||||
Shares related to preferred stock |
381,749 | 337,637 | 381,749 | 337,637 |
TABLE TWO
MONEYGRAM INTERNATIONAL, INC.
SEGMENT RESULTS
(Unaudited)
MONEYGRAM INTERNATIONAL, INC.
SEGMENT RESULTS
(Unaudited)
Global Funds Transfer | ||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||
December 31, | 2009 vs | December 31, | 2009 vs | |||||||||||||||||||||
(Amounts in thousands) | 2009 | 2008 | 2008 | 2009 | 2008 | 2008 | ||||||||||||||||||
Money transfer revenue: |
||||||||||||||||||||||||
Fee and other revenue |
$ | 230,649 | $ | 217,035 | $ | 13,614 | $ | 893,076 | $ | 870,074 | $ | 23,002 | ||||||||||||
Investment revenue |
30 | 420 | (390 | ) | 163 | 1,873 | (1,710 | ) | ||||||||||||||||
Bill payment revenue: |
||||||||||||||||||||||||
Fee and other revenue |
33,099 | 34,731 | (1,632 | ) | 134,535 | 141,169 | (6,634 | ) | ||||||||||||||||
Investment revenue |
25 | 9 | 16 | 76 | 38 | 38 | ||||||||||||||||||
Total revenue |
263,803 | 252,195 | 11,608 | 1,027,850 | 1,013,154 | 14,696 | ||||||||||||||||||
Commissions expense |
125,536 | 121,331 | 4,205 | 488,116 | 491,932 | (3,816 | ) | |||||||||||||||||
Net revenue |
$ | 138,267 | $ | 130,864 | $ | 7,403 | $ | 539,734 | $ | 521,222 | $ | 18,512 | ||||||||||||
Operating income |
$ | 28,967 | $ | 29,198 | $ | (231 | ) | $ | 85,047 | $ | 139,428 | $ | (54,381 | ) | ||||||||||
Operating margin |
11.0 | % | 11.6 | % | 8.3 | % | 13.8 | % |
Financial Paper Products | ||||||||||||||||||||||||
Three Months Ended | Year Ended | |||||||||||||||||||||||
December 31, | 2009 vs | December 31, | 2009 vs | |||||||||||||||||||||
(Amounts in thousands) | 2009 | 2008 | 2008 | 2009 | 2008 | 2008 | ||||||||||||||||||
Money order revenue: |
||||||||||||||||||||||||
Fee and other revenue |
$ | 16,988 | $ | 14,995 | $ | 1,993 | $ | 69,296 | $ | 59,954 | $ | 9,342 | ||||||||||||
Investment revenue |
1,114 | 5,702 | (4,588 | ) | 5,584 | 26,357 | (20,773 | ) | ||||||||||||||||
Official check revenue: |
||||||||||||||||||||||||
Fee and other revenue |
7,486 | 4,511 | 2,975 | 23,690 | 18,061 | 5,629 | ||||||||||||||||||
Investment revenue |
4,550 | 27,687 | (23,137 | ) | 24,213 | 133,820 | (109,607 | ) | ||||||||||||||||
Total revenue |
30,138 | 52,895 | (22,757 | ) | 122,783 | 238,192 | (115,409 | ) | ||||||||||||||||
Commissions expense |
2,636 | 3,476 | (840 | ) | 8,295 | 110,310 | (102,015 | ) | ||||||||||||||||
Net revenue |
$ | 27,502 | $ | 49,419 | $ | (21,917 | ) | $ | 114,488 | $ | 127,882 | $ | (13,394 | ) | ||||||||||
Operating income |
$ | 1,360 | $ | 24,069 | $ | (22,709 | ) | $ | 27,372 | $ | 30,169 | $ | (2,797 | ) | ||||||||||
Operating margin |
4.5 | % | 45.5 | % | 22.3 | % | 12.7 | % |
TABLE THREE
MONEYGRAM INTERNATIONAL, INC.
EBITDA AND ADJUSTED EBITDA
REVISED AS OF MARCH 15, 2010
(Unaudited)
MONEYGRAM INTERNATIONAL, INC.
EBITDA AND ADJUSTED EBITDA
REVISED AS OF MARCH 15, 2010
(Unaudited)
Three Months Ended | Year Ended | |||||||||||||||
December 31, | December 31, | |||||||||||||||
(Amounts in thousands) | 2009 | 2008 | 2009 | 2008 | ||||||||||||
(Loss) income before income taxes |
$ | (12,432 | ) | $ | 20,968 | $ | (22,322 | ) | $ | (337,191 | ) | |||||
Interest expense |
28,095 | 28,389 | 107,911 | 95,020 | ||||||||||||
Depreciation and amortization |
13,257 | 14,275 | 57,091 | 56,672 | ||||||||||||
Amortization of agent signing bonuses |
10,867 | 9,452 | 35,280 | 37,261 | ||||||||||||
EBITDA |
39,787 | 73,084 | 177,960 | (148,238 | ) | |||||||||||
Significant items impacting EBITDA: |
||||||||||||||||
Net securities (gains) losses |
(763 | ) | (10,155 | ) | (7,790 | ) | 340,688 | |||||||||
Gain on security previously priced at zero |
| (10,456 | ) | | (10,456 | ) | ||||||||||
Severance and related costs (1) |
543 | | 4,353 | 16,653 | ||||||||||||
Asset impairment charges (2) |
6,062 | 8,809 | 18,329 | 8,809 | ||||||||||||
Stock-based compensation expense |
7,105 | 1,097 | 14,152 | 3,691 | ||||||||||||
Net curtailment (gain) loss on benefit plans |
(15,537 | ) | | (14,339 | ) | 1,000 | ||||||||||
Legal accruals (3) |
20,250 | | 54,750 | | ||||||||||||
Valuation loss on embedded derivatives (4) |
| | | 16,030 | ||||||||||||
Transaction costs related to the recapitalization |
| | | 7,733 | ||||||||||||
Debt extinguishment loss (5) |
| | | 1,499 | ||||||||||||
Valuation loss on interest rate swaps (6) |
| | | 27,735 | ||||||||||||
Adjusted EBITDA |
$ | 57,447 | $ | 62,379 | $ | 247,415 | $ | 265,144 | ||||||||
(1) | Severance and related costs from executive terminations. | |
(2) | Includes impairment charges related to goodwill, intangible assets and fixed assets. | |
(3) | Legal accruals related to securities litigation, stockholder derivative claims, a patent lawsuit and a settlement agreement with the Federal Trade Commission. | |
(4) | Change in the fair value of embedded derivatives in our preferred stock. | |
(5) | Relates to the amendment of the Senior Credit Facility during the recapitalization. | |
(6) | Loss upon the termination of interest rate swaps. |
TABLE FOUR
MONEYGRAM INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
REVISED AS OF MARCH 15, 2010
(Unaudited)
MONEYGRAM INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
REVISED AS OF MARCH 15, 2010
(Unaudited)
December 31, | December 31, | |||||||
(Amounts in thousands, except share and per share data) | 2009 | 2008 | ||||||
ASSETS |
||||||||
Cash and cash equivalents |
$ | | $ | | ||||
Cash and cash equivalents (substantially restricted) |
3,776,824 | 4,077,381 | ||||||
Receivables, net (substantially restricted) |
1,054,381 | 1,264,885 | ||||||
Trading investments and related put options (substantially restricted) |
26,951 | 47,990 | ||||||
Available-for-sale investments (substantially restricted) |
298,633 | 438,774 | ||||||
Property and equipment |
127,972 | 156,263 | ||||||
Intangible assets |
7,680 | 14,548 | ||||||
Goodwill |
425,630 | 434,337 | ||||||
Other assets |
211,592 | 208,118 | ||||||
Total assets |
$ | 5,929,663 | $ | 6,642,296 | ||||
LIABILITIES |
||||||||
Payment service obligations |
$ | 4,843,454 | $ | 5,437,999 | ||||
Debt |
796,791 | 978,881 | ||||||
Pension and other postretirement benefits |
119,170 | 130,900 | ||||||
Accounts payable and other liabilities |
188,933 | 134,040 | ||||||
Total liabilities |
5,948,348 | 6,681,820 | ||||||
MEZZANINE EQUITY |
||||||||
Participating Convertible Preferred Stock-Series B, $0.01 par value,
800,000 shares authorized, 495,000 shares issued and outstanding |
539,084 | 458,408 | ||||||
Participating Convertible Preferred Stock-Series B-1, $0.01 par value,
500,000 shares authorized, 272,500 shares issued and outstanding |
325,244 | 283,804 | ||||||
Total mezzanine equity |
864,328 | 742,212 | ||||||
STOCKHOLDERS DEFICIT |
||||||||
Preferred shares, $0.01 par value, none issued |
| | ||||||
Common shares, $0.01 par value, 1,300,000,000 shares authorized,
88,556,077 shares issued |
886 | 886 | ||||||
Additional paid-in capital |
| 62,324 | ||||||
Retained loss |
(694,914 | ) | (649,254 | ) | ||||
Unearned employee benefits |
(8 | ) | (424 | ) | ||||
Accumulated other comprehensive loss |
(35,671 | ) | (42,707 | ) | ||||
Treasury stock: 6,040,958 and 5,999,175 shares at December 31, 2009 and
December 31, 2008, respectively |
(153,306 | ) | (152,561 | ) | ||||
Total stockholders deficit |
(883,013 | ) | (781,736 | ) | ||||
Total liabilities, mezzanine equity and stockholders deficit |
$ | 5,929,663 | $ | 6,642,296 | ||||
TABLE FIVE
MONEYGRAM INTERNATIONAL, INC.
ASSETS IN EXCESS OF PAYMENT SERVICE OBLIGATIONS
(Unaudited)
MONEYGRAM INTERNATIONAL, INC.
ASSETS IN EXCESS OF PAYMENT SERVICE OBLIGATIONS
(Unaudited)
December 31, | September 30, | June 30, | March 31, | |||||||||||||
(Amounts in thousands) | 2009 | 2009 | 2009 | 2009 | ||||||||||||
Cash and cash equivalents |
$ | 3,776,824 | $ | 3,876,105 | $ | 3,973,685 | $ | 3,904,783 | ||||||||
Receivables, net |
1,054,381 | 958,937 | 1,098,388 | 1,117,184 | ||||||||||||
Trading investments and related put options |
26,951 | 25,804 | 37,309 | 50,127 | ||||||||||||
Available-for-sale investments |
298,633 | 324,942 | 357,432 | 415,827 | ||||||||||||
5,156,789 | 5,185,788 | 5,466,814 | 5,487,921 | |||||||||||||
Payment service obligations |
(4,843,454 | ) | (4,775,290 | ) | (5,079,941 | ) | (5,067,167 | ) | ||||||||
Assets in excess of payment service obligations |
$ | 313,335 | $ | 410,498 | $ | 386,873 | $ | 420,754 | ||||||||