PR Newswire | Feb 22, 2021 07:01AM EST

Results

02/22 06:00 CST

MoneyGram International Reports Fourth Quarter and Full-Year 2020 Financial ResultsFourth Quarter and Full-Year Results exceed expectations and demonstrates the ongoing strength of the Company's digital transformationRecord number of digital customers helped drive strong Fourth Quarter Revenue of $323.3 million, Net Income of $7.3 million and Adjusted EBITDA of $64.6 millionFull-Year MGO cross-border digital transactions grew 152% year-over-year and overall digital revenue reached a record of $188 million DALLAS, Feb. 22, 2021

DALLAS, Feb. 22, 2021/PRNewswire/ -- MoneyGram International, Inc. (NASDAQ: MGI) today reported financial results for its fourth quarter and full-year ended December 31, 2020.

Fourth Quarter 2020 Business Highlights

"We delivered strong financial results in the fourth quarter led by record digital growth and significant outperformance on expenses. Despite a year filled with unprecedented challenges, our dedicated employees rallied together to deliver the industry's best customer experience, rapidly accelerate digital growth, and expand key partnerships," said Alex Holmes, MoneyGram Chairman and CEO."

Holmes continued: "The combination of these efforts generated tremendous value for customers and shareholders alike. This past year, MoneyGram Online, our direct-to-consumer digital channel, became one of the fastest growing fintechs in the industry, and the channel's profitable growth contributed meaningfully to both our top and bottom-line results."

? Digital performance in the fourth quarter was led by MoneyGram's onlinedirect-to-consumer channel (MGO):

? MGO delivered 100% year-over-year transaction growth and 103% revenue growth driven by strong consumer demand for the MoneyGram app, high customer retention rates, and increased productivity rates

? Cross-border online transactions and revenue each grew an impressive 143%, respectively, year-over-year for the fourth quarter

? MGO, the Company's largest generator of money transfer transactions, maintains 3 of its individual country sites on the Company's top 10 list of money transfer transaction generating sources

? US MGO became the largest generator of money transfer transactions in December surpassing Walmart

? Total digital, which includes MGO, had year-over-year transaction growth of94%in the fourth quarter

? Digital revenue reached a new record of$57.4 million for the fourth quarterrepresenting a 79%year-over-year revenue growth rate

? Digital partnerships delivered transaction growth of 77% year-over-year

? Account deposit and mobile wallet transactions increased 140% year-over-year

? Digital transactions accounted for 28% of all money transfer transactions inthe fourth quarter

? During the quarter, the Company reported a number of strategic achievements:

? As part of the Company's focus to invest in major receive markets, MoneyGram expanded its real-time direct to account transfer capabilities led by Visa Direct.

? Visa Direct posted record transactions on 650% growth for the 4th quarter.

? The Company accelerated longer-term, customer-centric partnerships in major markets by strengthening positions in North America and the Asia Pacific region with renewals at both Canada Post, a five-year extension, and SBI, a three-year extension

Fourth Quarter Financial Results, Year-Over-Year

? Total revenue of$323.3 million was flat on a reported basis or down 2% on aconstant currency basis

? Money transfer revenuewas $298.1 million, up4%,or 2% on a constant currency basis, driven by double-digit transaction growth

? Investment revenue was $2.6 million forthe quarter representing a decline of $9.8 million due to lower prevailing interest rates

? Total operating expenses of $292.0 million, decreased $19.0 million or 6%

? Transaction and Operations Support expenses decreased $17.4 million or 38% which included:

? $8.5 million net benefit from Ripple market development fees of $9.2 million, partially offset byrelated transaction and trading expenses of $0.7 million

? Operating Income was$31.3 million,an increase of 146%

? Operating Income margin expanded from 3.9% to 9.7%

? Net Income was $7.3 million for the quarter representing the Company's secondconsecutive quarter of positive net income and an increase of $19.2 million

? Diluted earnings per sharewas $0.08 and diluted adjusted earnings per sharewas $0.12

? Adjusted EBITDA increased 12% to$64.6 million, or 8% on a constant currencybasis

? Adjusted EBITDA margin improved 220 basis points to 20%

Full-Year 2020 Financial Results, Year-Over-Year

? Total revenue of $1,217.2 million declined 5% on a reported basis and down 6%on a constant currency basis

? Money Transfer revenue was $1,104.7 million a decline of 2% on both a reported basis and a constant currency basis

? The decline was largely due to the COVID-19 pandemic which mostly impacted our first half 2020 operating results

? Investment revenue totaled $20.0 million, or a $34.7 million decline, due to the lower prevailing interest rates

? Total operating expenses were $1,114.2 million decreased $118.9 million or10% due to the agile management of expenses through the pandemic as the Companycontinues to benefit from its Digital Transformation

? Income before taxes of $6.1 million for the full year, with an after-tax lossof $7.9 million primarily related to a deferred tax asset valuation allowanceof $12.0 million of which $10.1 million was recognized in the first quarter

? Adjusted EBITDA was $241.3 million, a 13% increase on a reported basis and an11% increase on a constant currency basis. The increase is primarily related tothe out-performance of the Company's digital business and continued focus onexpense management

? Diluted loss per share was $0.10 and adjusted diluted income per sharewas$0.28

"Looking ahead, we are excited to leverage the strong momentum in our fast growing digital channel in 2021 as we work to overcome continued uncertainty driven by the global pandemic and changing market dynamics in the retail channel. As our transformational journey continues, our modern, mobile, API-driven platform puts MoneyGram in a strong position to quickly adapt to changing conditions, and we are confident in the underlying strength of our business led by our growing customer base."

Balance Sheet and Liquidity

? Cash and cash equivalents on hand at year end was $196.1 million compared to$162.9 million as of the end of the third quarter 2020

? Fourth quarter interest expense was $22.9 million and full-year interestexpense was $92.4 million

? Capital expenditures in 2020were $40.8 million

First Quarter 2021 Outlook

Assuming the global economic environment were to remain consistent with the fourth quarter the Company is providing the following outlook:

For the first quarter of 2021, the Company anticipates reporting total revenue of approximately $300 million on the strength of its money transfer business and continued triple-digit cross-border MoneyGram Online growth, partially offset by an estimated $8 million reduction in gross investment revenue.

In addition, the Company is not planning for any benefit from Ripple market development fees in the first quarter. Due to the uncertainty concerning their ongoing litigation with the SEC, the Company has suspended trading on Ripple's platform. In the first quarter of 2020, the Company realized a net expense benefit of $12.1 million from Ripple market development fees.

Based on the combination of these factors, the Company anticipates reporting Adjusted EBITDA of approximately $50 million in the first quarter of 2021.

Conference Call

MoneyGram International will host a conference call on February 22, at 9:00 a.m. ET, to discuss its results. Alex Holmes, Chairman and CEO, Larry Angelilli, CFO and Kamila Chytil, COO, will host the call.

Participant Dial-In Numbers:

U.S.: 1-800-263-0877

International:1-646-828-8143

Webcast: public.viavid.com/index.php?id=143363



Replay: U.S 1-844-512-2921 or International 1-412-317-6671

Replay ID: 3866751

Replay is available through March 1, 2021, 11:59 p.m. ET

About MoneyGram International, Inc.

MoneyGram is a global leader in cross-border P2P payments and money transfers. Its consumer-centric capabilities enable family and friends to quickly and affordably send money in more than 200 countries and territories, with 90 now digitally enabled.

MoneyGram leverages its modern, mobile, and API-driven platform and collaborates with the world's leading brands to serve millions of people each year through both its walk-in business and its direct-to-consumer digital business.

With a strong culture of innovation and a relentless focus on utilizing technology to deliver the world's best customer experience, MoneyGram is leading the evolution of digital P2P payments.

For more information, please visit MoneyGram.com and follow @MoneyGram.

Forward-Looking Statements

This communication contains forward-looking statements which are protected as forward-looking statements under the Private Securities Litigation Reform Act of 1995 that are not limited to historical facts, but reflect MoneyGram's current beliefs, expectations or intentions regarding future events and speak only as of the date they are made. Words such as "may," "might," "will," "could," "should," "would," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursuant," "target," "forecast," "outlook," "continue," "currently," and similar expressions are intended to identify such forward-looking statements. The statements in this communication that are not historical statements are forward-looking statements within the meaning of the federal securities laws. Specific forward-looking statements include, among others, statements regarding the Company's projected results of operations and specific factors expected to impact the Company's results of operations. Forward-looking statements are subject to numerous risks and uncertainties that are difficult to predict and many of which are beyond MoneyGram's control, which could cause actual results to differ materially from the results expressed or implied by the statements.

These risks and uncertainties include, but are not limited to:

? the impact of the COVID-19 pandemic or future pandemics on our business,including the potential for work stoppages, lockdowns, shelter-in-place, orrestricted movement guidelines, service delays, lower consumer and commercialactivity;

? our ability to compete effectively;

? our ability to maintain key agent or biller relationships, or a reduction inbusiness or transaction volume from these relationships, including our largestagent, Walmart, whether through the introduction by Walmart of additionalcompeting "white label" branded money transfer products or otherwise;

? our ability to manage fraud risks from consumers or agents;

? the ability of us and our agents and other commercial relationships to complywith U.S. and international laws and regulations;

? litigation or investigations involving us or our agents and other commercialrelationships, which could result in material settlements, fines or penalties,termination of contracts, other administrative actions or lawsuits and negativepublicity;

? uncertainties relating to compliance with the Deferred Prosecution Agreement,as amended on July 24, 2020 ("Amended DPA"), entered into with the U.S. federalgovernment and the effect of the Amended DPA on our reputation and business andour ability to make payments required under the Amended DPA;

? regulations addressing consumer privacy, data use and security;

? our ability to successfully develop and timely introduce new and enhancedproducts and services and our investments in new products, services orinfrastructure changes;

? our ability to manage risks associated with our international sales andoperations;

? our offering of money transfer services through agents in regions that arepolitically volatile;

? changes in tax laws or an unfavorable outcome with respect to the audit ofour tax returns or tax positions, or a failure by us to establish adequatereserves for tax events;

? our substantial debt service obligations, significant debt covenantrequirements and credit ratings;

? major bank failure or sustained financial market illiquidity, or illiquidityat our clearing, cash management and custodial financial institutions;

? the ability of us and our agents to maintain adequate banking relationships;

? a security or privacy breach in systems, networks or databases on which werely and disruptions to our computer network systems and data centers;

? weakness in economic conditions, in both the U.S. and global markets;

? a significant change, material slow down or complete disruption ofinternational migration patterns;

? the financial health of certain European countries or the secession of acountry from the European Union;

? our ability to manage credit risks from our agents and official checkfinancial institution consumers;

? our ability to adequately protect our brand and intellectual property rightsand to avoid infringing on the rights of others;

? our ability to manage risks related to the operation of retail locations andthe acquisition or start-up of businesses;

? any restructuring actions and cost reduction initiatives that we undertakemay not deliver the expected results and these actions may adversely affect ourbusiness;

? our capital structure;

? and uncertainties described in the "Risk Factors" and "Management'sDiscussion and Analysis of Financial Condition and Results of Operations"sections of MoneyGram's public period reports filed with the U.S. Securitiesand Exchange Commission (the SEC), including MoneyGram's annual report on Form10-K for the year ended December 31, 2019, and subsequent quarterly reports onForm 10-Q.

Additional information concerning factors that could cause actual results to differ materially from those in the forward-looking statements is contained from time to time in MoneyGram's SEC filings. MoneyGram's SEC filings may be obtained by contacting MoneyGram, through MoneyGram's web site at ir.moneygram.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System ("EDGAR") at www.sec.gov. MoneyGram undertakes no obligation to publicly update or revise any forward-looking statement.

Non-GAAP Measures

In addition to results presented in accordance with accounting principles generally accepted in the United States (GAAP), this news 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 certain significant items), Adjusted EBITDA margin, Adjusted Free Cash Flow (Adjusted EBITDA less cash interest, cash taxes and cash payments for capital expenditures and agent signing bonuses), constant currency measures (which assume that amounts denominated in foreign currencies are translated to the U.S. dollar at rates consistent with those in the prior year), diluted adjusted income (loss) per share and adjusted net income. In addition, we present adjusted operating income and adjusted operating margin for our two reporting segments. The following tables include a full reconciliation of non-GAAP financial measures to the related GAAP financial measures. The equivalent GAAP financial measures for projected results are not provided, and projected results do not reflect the potential impact of certain non-GAAP adjustments, which include (but in future periods, may not be limited to) stock-based, contingent and incentive compensation costs; compliance enhancement program costs; direct monitor costs; legal and contingent matter costs; restructuring and reorganization costs; currency changes; and the tax effect of such items. We cannot reliably predict or estimate if and when these types of costs, adjustments or changes may occur or their impact to our financial statements. Accordingly, a reconciliation of the non-GAAP financial measures to the equivalent GAAP financial measures for projected results is not available.

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. These calculations are commonly used as a basis for investors, analysts and other interested parties to evaluate and compare the operating performance and value of companies within our industry. Finally, EBITDA, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted Free Cash Flow, constant currency, diluted adjusted income (loss) per share and adjusted net income figures are financial and performance measures used by management in reviewing results of operations, forecasting, 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 in isolation or as substitutes for the accompanying GAAP financial measures.

Description of Tables

Table One -Condensed Consolidated Statements of Operations

Table Two -Segment Results

Table Three-Segment Reconciliations

Reconciliation of Certain Non-GAAP Measures to Relevant GAAP Table Four -Measures - EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow

Table Five -Reconciliation of Certain Non-GAAP Measures to Relevant GAAP Measures - Adjusted Net Income and Adjusted Diluted EPS

Table Six -Condensed Consolidated Balance Sheets

Table Seven-Condensed Consolidated Statements of Cash Flows



CONTACTS

Investor Relations: Media Relations:

214-979-1400 Stephen Reiff

InvestorRelations@moneygram.commedia@moneygram.com



TABLE ONE

MONEYGRAM INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)



Three Months Ended 2020 vsYear Ended December 2020 vs (Amounts in millions, except percentages and December 31, 31, per share data) 2020 2019 2019 2020 2019 2019



REVENUE

Fee and other revenue $320.7 $311.3 $9.4 $1,197.2 $1,230.4 $(33.2)

Investment revenue 2.6 12.4 (9.8) 20.0 54.7 (34.7)

Total revenue 323.3 323.7 (0.4) 1,217.2 1,285.1 (67.9)



Total revenue change, as reported - %(6) % (5) %(11) %

Total revenue change, constant currency (2) %(6) % (6) %(10) %



OPERATING EXPENSES

Total commissions and direct transaction expenses171.2 167.7 3.5 653.0 662.2 (9.2)

Compensation and benefits 60.9 65.0 (4.1) 223.8 228.4 (4.6)

Transaction and operations support ^(1) 28.0 45.4 (17.4)111.6 207.8 (96.2)

Occupancy, equipment and supplies 16.7 14.5 2.2 61.4 60.9 0.5

Depreciation and amortization 15.2 18.4 (3.2) 64.4 73.8 (9.4)

Total operating expenses 292.0 311.0 (19.0)1,114.2 1,233.1 (118.9)

OPERATING INCOME 31.3 12.7 18.6 103.0 52.0 51.0

Other expenses

Interest expense 22.9 24.3 (1.4) 92.4 77.0 15.4

Other non-operating expense ^(2) 1.1 1.2 (0.1) 4.5 39.3 (34.8)

Total other expenses 24.0 25.5 (1.5) 96.9 116.3 (19.4)

Income (loss) before income taxes 7.3 (12.8) 20.1 6.1 (64.3) 70.4

Income tax (benefit) expense - (0.9) 0.9 14.0 (4.0) 18.0

NET INCOME (LOSS) $7.3 $(11.9) $19.2$(7.9) $(60.3) $52.4



EARNINGS (LOSS) PER COMMON SHARE

Basic $0.09 $(0.16) $0.25$(0.10) $(0.85) $0.75

Diluted $0.08 $(0.16) $0.24$(0.10) $(0.85) $0.75



Weighted-average outstanding common shares and equivalents used in computing earnings (loss) per share

Basic 77.9 76.7 1.2 77.8 71.1 6.7

Diluted 88.8 76.7 12.1 77.8 71.1 6.7



(1) Twelve months ended December 31, 2020 and 2019 include Ripple market development fees of $50.2 million and $11.3 million, respectively, partially offset by related transaction and trading expenses of $11.9 million and $0.4 million, respectively.

(2) Twelve months ended December 31, 2019 includes a non-cash pension settlement charge of $31.3 million and debt extinguishment costs of $2.4 million.

TABLE TWO

MONEYGRAM INTERNATIONAL, INC.

SEGMENT RESULTS

(Unaudited)



Global Funds Transfer

Three Months Ended 2020 vs Year Ended December 2020 vs (Amounts in millions, except percentages) December 31, 31, 2020 2019 2019 2020 2019 2019

Money transfer revenue $298.1 $285.9 $12.2 $1,104.7 $1,123.9 $(19.2)

Bill payment revenue 11.0 13.8 (2.8) 46.2 59.4 (13.2)

Total revenue $309.1 $299.7 $9.4 $1,150.9 $1,183.3 $(32.4)



Commissions and direct transaction expenses$170.9 $162.9 $8.0 $649.3 $637.9 $11.4



Operating income $27.6 $5.5 $22.1 $84.4 $22.0 $62.4



Operating margin 8.9 %1.8 % 7.3 %1.9 %



Money transfer revenue change, as 4 %(6) % (2) %(12) % reported

Money transfer revenue change, constant 2 %(5) % (2) %(10) % currency



Financial Paper Products



Three Months Ended 2020 vs Year Ended December 2020 vs (Amounts in millions, except percentages) December 31, 31, 2020 2019 2019 2020 2019 2019

Money order revenue $10.1 $12.4 $(2.3)$43.4 $53.0 $(9.6)

Official check revenue 4.1 11.6 (7.5) 22.9 48.8 (25.9)

Total revenue $14.2 $24.0 $(9.8)$66.3 $101.8 $(35.5)



Total commissions expense $0.3 $4.8 $(4.5)$3.7 $24.3 $(20.6)



Operating income $3.7 $8.0 $(4.3)$20.5 $33.8 $(13.3)



Operating margin 26.1 %33.3 % 30.9 %33.2 %



TABLE THREE

MONEYGRAM INTERNATIONAL, INC.

SEGMENT RECONCILIATIONS

(Unaudited)



Global Funds Transfer

Three Months Ended 2020 vs Year Ended December 2020 vs (Amounts in millions, except percentages)December 31, 31, 2020 2019 2019 2020 2019 2019



Revenue (as reported) $309.1 $299.7 $9.4 $1,150.9 $1,183.3 $(32.4)



Adjusted operating income $31.7 $20.4 $11.3 $105.8 $64.4 $41.4



Legal and contingent matters - (2.4) 2.4 0.1 (2.4) 2.5

Restructuring and reorganization costs - (7.1) 7.1 (1.0) (11.3) 10.3

Compliance enhancement program (0.6) (2.3) 1.7 (3.5) (7.7) 4.2

Direct monitor costs (2.1) (1.5) (0.6) (11.0) (13.9) 2.9

Stock-based compensation expense (1.4) (1.6) 0.2 (6.0) (7.1) 1.1

Total adjustments (4.1) (14.9) 10.8 (21.4) (42.4) 21.0



Operating income (as reported) $27.6 $5.5 $22.1 $84.4 $22.0 $62.4



Adjusted operating margin 10.3 %6.8 % 9.2 %5.4 %

Total adjustments (1.3) %(5.0) % (1.9) %(3.6) %

Operating margin (as reported) 8.9 %1.8 % 7.3 %1.9 %







Financial Paper Products

Three Months Ended 2020 vs Year Ended December 2020 vs (Amounts in millions, except percentages)December 31, 31, 2020 2019 2019 2020 2019 2019



Revenue (as reported) $14.2 $24.0 $(9.8)$66.3 $101.8 $(35.5)



Adjusted operating income $3.9 $8.4 $(4.5)$22.0 $35.8 $(13.8)



Compliance enhancement program (0.1) (0.2) 0.1 (0.9) (1.2) 0.3

Stock-based compensation expense (0.1) (0.2) 0.1 (0.6) (0.8) 0.2

Total adjustments (0.2) (0.4) 0.2 (1.5) (2.0) 0.5



Operating income (as reported) $3.7 $8.0 $(4.3)$20.5 $33.8 $(13.3)



Adjusted operating margin 27.5 %35.0 % 33.2 %35.2 %

Total adjustments (1.4) %(1.7) % (2.3) %(2.0) %

Operating margin (as reported) 26.1 %33.3 % 30.9 %33.2 %



TABLE FOUR

MONEYGRAM INTERNATIONAL, INC.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO RELEVANT GAAP MEASURES

EBITDA, ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN AND ADJUSTED FREE CASH FLOW

(Unaudited)



Three Months Ended 2020 vs Year Ended December 2020 vs (Amounts in millions, except percentages)December 31, 31, 2020 2019 2019 2020 2019 2019



Income (loss) before income taxes $7.3 $(12.8) $20.1 $6.1 $(64.3) $70.4

Interest expense 22.9 24.3 (1.4) 92.4 77.0 15.4

Depreciation and amortization 15.2 18.4 (3.2) 64.4 73.8 (9.4)

Signing bonus amortization 14.8 11.8 3.0 54.5 46.4 8.1

EBITDA 60.2 41.7 18.5 217.4 132.9 84.5



Significant items impacting EBITDA:

Direct monitor costs 2.1 1.5 0.6 11.0 13.9 (2.9)

Stock-based, contingent and incentive 1.5 1.8 (0.3) 6.6 7.9 (1.3) compensation

Compliance enhancement program 0.7 2.5 (1.8) 4.4 8.9 (4.5)

Severance and related costs 0.1 0.4 (0.3) 0.3 0.7 (0.4)

Non-cash pension settlement charge ^(1) - - - - 31.3 (31.3)

Legal and contingent matters - 2.6 (2.6) 0.6 4.5 (3.9)

Debt extinguishment costs ^(2) - - - - 2.4 (2.4)

Restructuring and reorganization costs - 7.1 (7.1) 1.0 11.2 (10.2)

Adjusted EBITDA $64.6 $57.6 $7.0 $241.3 $213.7 $27.6



Adjusted EBITDA margin ^(3) 20.0 %17.8 %2.2 %19.8 %16.6 %3.2 %



Adjusted EBITDA change, as reported 12 % 13 %

Adjusted EBITDA change, constant 8 % 11 % currency adjusted



Adjusted EBITDA $64.6 $57.6 $7.0 $241.3 $213.7 $27.6

Cash payments for interest (19.9) (18.1) (1.8) (77.5) (63.3) (14.2)

Cash payments for taxes, net of refunds (1.5) (2.8) 1.3 1.8 (4.4) 6.2

Cash payments for capital expenditures (10.2) (12.0) 1.8 (40.8) (54.5) 13.7

Cash payments for agent signing bonuses (13.7) (4.9) (8.8) (58.7) (29.1) (29.6)

Adjusted Free Cash Flow $19.3 $19.8 $(0.5) $66.1 $62.4 $3.7



(1) 2019 includes a non-cash charge from the sale of pension liability.

(2) 2019 includes debt extinguishment costs related to the amended and newdebt agreements.

(3) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenue.

TABLE FIVE

MONEYGRAM INTERNATIONAL, INC.

RECONCILIATION OF CERTAIN NON-GAAP MEASURES TO RELEVANT GAAP MEASURES

ADJUSTED NET INCOME AND ADJUSTED DILUTED EPS

(Unaudited)



Three Months EndedYear Ended December 31, December 31,

(Amounts in millions, except per share data) 2020 2019 2020 2019



Net income (loss) $7.3 $(11.9)$ (7.9) $ (60.3)

Total adjustments ^(1) 4.4 15.9 23.9 80.8

Tax impacts of adjustments ^(2) (1.0) (3.6) (5.5) (18.5)

Valuation allowance^ (3) - - 11.3 -

Adjusted net income $10.7$0.4 $ 21.8 $ 2.0





Diluted earnings (loss) per common share $0.08$(0.16)$ (0.10) $ (0.85)



Diluted adjustments per common share 0.04 0.17 0.38 0.88



Diluted adjusted earnings (loss) per common share $0.12$0.01 $ 0.28 $ 0.03



Diluted weighted-average outstanding common shares 88.8 76.7 77.8 71.1 and equivalents





(1) See summary of adjustments in Table Four - EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow.

(2) Tax rates used to calculate the tax expense impact are based on the nature and jurisdiction of each adjustment.

(3) The Company recorded a $11.3 million valuation allowance on its U.S. deferred tax assets for the twelve months ended December 31, 2020.

TABLE SIX

MONEYGRAM INTERNATIONAL, INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)



(Amounts in millions, except share data) December 31, 2020December 31, 2019

ASSETS

Cash and cash equivalents $196.1 $146.8

Settlement assets 3,702.9 3,237.0

Property and equipment, net 148.1 176.1

Goodwill 442.2 442.2

Right-of-use assets 55.1 50.0

Other assets 129.7 132.9

Total assets $4,674.1 $4,185.0

LIABILITIES

Payment service obligations $3,702.9 $3,237.0

Debt, net 857.8 850.3

Pension and other postretirement benefits 74.5 77.5

Lease liabilities 59.1 54.2

Accounts payable and other liabilities 216.8 206.4

Total liabilities 4,911.1 4,425.4

STOCKHOLDERS' DEFICIT

Participating convertible preferred stock - series D, $0.01 par value, 200,000 shares authorized, no shares issued and outstanding at - 183.9 December 31, 2020, 71,282 shares issued and outstanding at December 31, 2019

Common stock, $0.01 par value, 162,500,000 shares authorized, 72,530,770 and 65,061,090 shares issued, 72,517,539 and 62,731,184 0.7 0.7 shares outstanding at December 31, 2020 and December 31, 2019, respectively

Additional paid-in capital 1,296.0 1,116.9

Retained loss (1,475.3) (1,460.1)

Accumulated other comprehensive loss (58.4) (63.5)

Treasury stock: 13,231 and 2,329,906 shares at December 31, 2020 and - (18.3) December 31, 2019, respectively

Total stockholders' deficit (237.0) (240.4)

Total liabilities and stockholders' deficit $4,674.1 $4,185.0



TABLE SEVEN

MONEYGRAM INTERNATIONAL, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)



Year Ended December 31,

(Amounts in millions) 2020 2019

CASH FLOWS FROM OPERATING ACTIVITIES:

Net loss $(7.9) $(60.3)

Adjustments to reconcile net loss to net cash provided by operating activities:105.2 123.3

Net cash provided by operating activities 97.3 63.0

CASH FLOWS FROM INVESTING ACTIVITIES:

Payments for capital expenditures (40.8) (54.5)

Net cash used in investing activities (40.8) (54.5)

CASH FLOWS FROM FINANCING ACTIVITIES:

Transaction costs for issuance and amendment of debt - (24.3)

Principal payments on debt (6.5) (31.6)

Proceeds from revolving credit facility 23.0 -

Payments on revolving credit facility (23.0) -

Net proceeds from issuing equity instruments - 49.5

Payments to tax authorities for stock-based compensation (0.7) (0.8)

Net cash used in financing activities (7.2) (7.2)

NET CHANGE IN CASH AND CASH EQUIVALENTS 49.3 1.3

CASH AND CASH EQUIVALENTS-Beginning of year 146.8 145.5

CASH AND CASH EQUIVALENTS-End of year $196.1 $146.8



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SOURCE MoneyGram