-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, Ke9FpWWIrUIvOZjNACXrLoPDXeaPCF10DsIkf+D9Zg2583eBElbIrP7YMhHe2w67 SrDrXU6lGL/aCNr+wvFqjg== 0001157523-04-007051.txt : 20040729 0001157523-04-007051.hdr.sgml : 20040729 20040729075857 ACCESSION NUMBER: 0001157523-04-007051 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20040729 ITEM INFORMATION: FILED AS OF DATE: 20040729 FILER: COMPANY DATA: COMPANY CONFORMED NAME: MONEYGRAM INTERNATIONAL INC CENTRAL INDEX KEY: 0001273931 STANDARD INDUSTRIAL CLASSIFICATION: SERVICES-BUSINESS SERVICES, NEC [7389] STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-31950 FILM NUMBER: 04937366 BUSINESS ADDRESS: STREET 1: 1550 UTICA AVENUE SOUTH CITY: MINNEAPOLIS STATE: MN ZIP: 55416 BUSINESS PHONE: 9525913000 8-K 1 a4690840.txt MONEYGRAM INTERNATIONAL, INC. 8-K UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 -------- FORM 8-K CURRENT REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Date of Report (Date of earliest event reported): July 29, 2004 MoneyGram International, Inc. (Exact name of registrant as specified in its charter) Delaware 001-31950 16-1690064 -------- --------- ---------- (State or other (Commission (IRS Employer jurisdiction of File Number) Identification incorporation) Number) 1550 Utica Avenue South, Minneapolis, Minnesota 55416 ---------------------------------------------------------------- (Address of principal executive offices) (Zip Code) (952) 591-3000 ---------------------------------------------------- (Registrant's telephone number, including area code) None ------------------------------------------------------------- (Former name or former address, if changed since last report) Item 12. Results of Operations and Financial Condition --------------------------------------------- On July 29, 2004, MoneyGram International, Inc. issued a press release reporting financial results for its second quarter ended June 30, 2004, a copy of which is furnished herewith as Exhibit 99.1. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. MONEYGRAM INTERNATIONAL, INC. By: /s/ Philip W. Milne ----------------------------------- Name: Philip W. Milne Title: President & Chief Executive Officer Date: July 29, 2004 EXHIBIT INDEX Exhibit No. Description of Document - ----------- ----------------------- 99.1 Press Release dated July 29, 2004. EX-99.1 2 a4690840ex991.txt PRESS RELEASE EXHIBIT 99.1 MoneyGram International Announces Second Quarter Results MINNEAPOLIS--(BUSINESS WIRE)--July 29, 2004--MoneyGram International, Inc. (NYSE:MGI), which spun-off from Viad Corp (NYSE:VVI) on June 30, 2004, today announced second quarter 2004 financial results. Due to the relative significance of MoneyGram to Viad, MoneyGram is considered the divesting entity and treated as the accounting successor to Viad for financial reporting purposes. Consequently, and in accordance with applicable accounting rules, historical financial statements presented by MoneyGram reflect Viad as a discontinued operation. Second Quarter Highlights -- Total revenue increased 6 percent to $199.8 million. -- Fee and other revenue increased 19 percent to $122.1 million. -- Global money transfer transaction volume increased 35 percent and revenue increased over 25 percent. -- Operating income from the Global Funds Transfer and Payment Systems segments totaled $30.6 million, in line with guidance previously provided by Viad. Results of Operations Net loss for the second quarter was $1.1 million, or $0.01 per share, compared to net income of $40.9 million (includes $20.4 million of discontinued operations), or $0.47 per share, in the second quarter of 2003. Net loss for the second quarter 2004 includes the following: -- $20.7 million pre-tax ($19.3 million after tax, which amounts to $0.22 per share) of non-recurring debt tender and redemption costs related to Viad's debt. -- $497 thousand after tax, or nil per share, loss from discontinued operations primarily for Viad Corp. This includes $14.5 million after tax expenses related to the spin-off, which amounts to $0.17 per share. Second quarter revenue increased 6 percent to $199.8 million from $187.7 million in the second quarter of 2003 and reflects growth of fee revenue offset by lower investment revenue and securities gains. The Global Funds Transfer segment contributed $128.2 million in revenue, up 15 percent from $111.5 million in the prior year period. Payment Systems revenue decreased 6 percent to $71.7 million, from $76.2 million in the second quarter of 2003. Net revenue was $102.2 million in the second quarter 2004, an increase of 11 percent over the prior year due to the growth in net fee revenue from the money transfer business. Total expenses in the second quarter 2004 were $99.2 million. In connection with the spin-off, Viad retired a substantial majority of its outstanding subordinated debentures and medium term notes and redeemed its outstanding preferred stock. Consequently, total expense includes $20.7 million of non-recurring debt tender and redemption costs. Loss from continuing operations was $570 thousand in the second quarter 2004, compared to income of $20.5 million in the second quarter 2003. Second quarter 2004 income from continuing operations was negatively affected by the $19.3 million after tax debt tender and redemption costs. Philip Milne, president and chief executive officer said, "In the second quarter, we continued our focus on providing affordable, reliable and convenient payment services to our customers. Our global money transfer business had another exceptional quarter with 35 percent transaction volume growth, which reflects strong performance both domestically and internationally." Segment Highlights MoneyGram operates in two reportable business segments, Global Funds Transfer and Payment Systems. Prior to the spin-off, Viad Corp presented MoneyGram as the Payment Services segment. Global Funds Transfer ($ in millions) Q2 Q1 Q2 2004 2004 Change 2003 Change ------- ------- ------ ------- ------ Revenue $128.2 $121.0 5.9% $111.5 14.9% Commissions Expense 48.1 44.2 8.8% 39.0 23.3% Net Revenue 80.1 76.7 4.3% 72.5 10.4% Operating Income 24.8 21.0 18.1% 24.2 2.5% Operating Margin 19.3% 17.3% 21.7% Global Funds Transfer, which includes global money transfer, urgent bill payment and retail money orders, increased second quarter revenue 15 percent over the prior year second quarter to $128.2 million. The money transfer agent network grew 19 percent from the second quarter of 2003 to over 71,000 agents. Payment Systems ($ in millions) Q2 Q1 Q2 2004 2004 Change 2003 Change ------ ------ ------- ------ ------- Revenue $71.7 $70.4 1.9% $76.2 (6.0%) Commissions Expense 49.5 46.0 7.6% 56.8 (12.8%) Net Revenue 22.1 24.3 (9.0%) 19.4 13.9% Operating Income 5.8 9.2 (36.4%) 6.3 (7.0%) Operating Margin 8.2% 13.1% 8.3% Payment Systems includes PrimeLink/Official Check outsourcing services, financial money orders and controlled disbursement processing services. In comparison to the prior year's second quarter, revenue declined 6 percent to $71.7 million, reflecting lower average invested funds. Mr. Milne concluded, "We are very excited about our future as an independent company. There are many opportunities in the expanding global remittance market and our new independent status will enable us to pursue these opportunities with a strong capital foundation and clear focus." Presentation of Historical Income Statements Viad completed the spin-off of MoneyGram on June 30, 2004. MoneyGram is considered the divesting entity and treated as the accounting successor to Viad for financial reporting purposes in accordance with the EITF No. 02-11, "Accounting for Reverse Spinoffs." The unaudited income statements for the quarters and full year periods in 2003 and 2002 in Tables Five and Six to this press release are being provided to report the historical results of MoneyGram with the historical results of operations of Viad in discontinued operations in accordance with the provisions of SFAS No. 144, "Accounting for the Impairment or Disposal of Long-Lived Assets." Outlook The company currently expects 2004 full year revenue growth in the high single to low double digits. Income from continuing operations per share is expected to be in the range of $0.44 to $0.48 for the last half of the year and $0.65 to $0.69 for the full year. The full year includes after-tax costs for the debt tender and redemption costs, which amounts to $0.22 per share. The estimates are dependent on a variety of factors including interest rate levels and other factors. From time to time securities may be called or similar events may occur which can result in unanticipated gains or losses. Our outlook does not reflect these events. Conference Call and Webcast MoneyGram International will have a conference call today at 9:00 a.m. EDT, 8:00 a.m. CDT to discuss second quarter results. Phil Milne, Chief Executive Officer, and Dave Parrin, Chief Financial Officer, will speak on the call. The conference call can be accessed by calling (800) 901-5259 in the U.S. or (617) 786-4514 internationally. The participant passcode is MoneyGram. The conference call will also be webcast through the company's website at www.moneygram.com. A replay of the conference call and webcast will be available one hour after the call concludes through 5:00 p.m. on August 5, 2004. The replay of the call is available at (888) 286-8010 in the U.S., or (617) 801-6888 internationally, passcode 70678100. The internet audio cast replay will be available at www.moneygram.com. About MoneyGram International, Inc. MoneyGram International, Inc., is a leading global payment services company and S&P MidCap 400 company. The company's major products and services include global money transfer, money orders and payment processing solutions for financial institutions and retail customers. For more information, visit the company's website at www.moneygram.com. Cautionary Information Regarding Forward-Looking Statements The statements contained in this press release regarding the business of MoneyGram International, Inc. that are not historical facts are forward-looking statements and are made under the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. These 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: (a) fluctuations in interest rates that may materially adversely affect revenue derived from investment of funds received from the sale of payment instruments; (b) material changes in the market value of securities we hold; (c) material changes in our need for and the availability of liquid assets; (d) successful management of the credit and fraud risks of retail agents, and the credit risk related to our investment portfolio; (e) continued growth rates approximating recent levels for consumer money transfer transactions and other payment product markets; (f) renewal of material retail agent and financial institution customer contracts, or loss of business from significant agents or customers; (g) technological and competitive changes in the payment services industry; (h) changes in laws, regulations or other industry practices and standards which may require significant systems redevelopment, reduce the market for or value of the company's products or services or render products or services less profitable or obsolete; (i) continued political stability in countries in which MoneyGram has material agent relationships; (j) material lawsuits or investigations; (k) catastrophic events that could materially adversely impact operating facilities, communication systems and technology of MoneyGram, its clearing banks or major customers, or that may have a material adverse impact on current economic conditions or levels of consumer spending; (l) material breach of security of any of our systems; and (m) other factors more fully discussed in MoneyGram's filings with the Securities and Exchange Commission. Actual results may differ materially from historical and anticipated results. These forward-looking statements speak only as of the date on which such statements are made, and MoneyGram undertakes no obligation to update such statements to reflect events or circumstances arising after such date. TABLE ONE MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES NET INVESTMENT REVENUE ANALYSIS (In thousands) (Unaudited) Second Quarter 2004 vs 2004 2003 2003 ----------- ----------- ---------- Components of net investment revenue: Investment revenue $77,580 $82,017 $(4,437) Investment commissions expense (1) 53,706 60,802 (7,096) ----------- ----------- ---------- Net investment revenue $23,874 $21,215 $2,659 =========== =========== ========== Average balances: Cash equivalents and Investments $6,888,115 $7,142,154 ($254,039) Payment service obligations (2) 5,510,137 5,792,583 (282,446) Average yields earned and rates paid (3): Investment yield 4.53% 4.61% -0.08% Investment commission rate 3.92% 4.21% -0.29% Net investment margin 1.39% 1.19% 0.20% June Year to Date 2004 vs 2004 2003 2003 ----------- ----------- ---------- Components of net investment revenue: Investment revenue $154,234 $168,655 $(14,421) Investment commissions expense (1) 103,451 119,728 (16,277) ----------- ----------- ---------- Net investment revenue $50,783 $48,927 $1,856 =========== =========== ========== Average balances: Cash equivalents and Investments $6,736,531 $6,940,122 ($203,591) Payment service obligations (2) 5,334,893 5,568,136 (233,243) Average yields earned and rates paid (3): Investment yield 4.60% 4.90% -0.30% Investment commission rate 3.90% 4.34% -0.44% Net investment margin 1.52% 1.42% 0.10% (1) Investment commissions expense reported includes payments made to financial institution customers, costs associated with swaps and the sale of receivables program. (2) Commissions are paid to financial institution customers based upon average outstanding balances generated by the sale of official checks only. The average balance in the table reflects only the payment service obligations for which commissions are paid and does not include the average balance of the sold receivables ($407 million and $433 million for the second quarter of 2004 and 2003, respectively, $411 million and $437 million for the first six months of 2004 and 2003, respectively) as these are not recorded on the consolidated balance sheets. (3) Average yields/rates are calculated by dividing the applicable amount shown in the "component of net interest revenue" section by the applicable amount shown in the "Average balances" section divided by the number of days in the period presented and multiplied by the number of days in the year. The "Net investment margin" is calculated by dividing "Net investment revenue" by the "Cash equivalents and investments" average balance divided by the number of days in the period presented and multiplied by the number of days in the year. TABLE TWO MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands except share and per share data) (Unaudited) Three months ended Six months ended June 30 June 30 2004 2003 2004 2003 --------- --------- --------- --------- REVENUE: Fee and other revenue $122,084 $102,828 $235,706 $199,891 Investment revenue 77,580 82,017 154,234 168,655 Securities gains and losses, net 156 2,876 1,201 (9,199) --------- --------- --------- --------- Total revenue 199,820 187,721 391,141 359,347 Fee commissions expense 43,925 34,987 84,428 66,934 Investment commissions expense 53,706 60,802 103,451 119,728 --------- --------- --------- --------- Total commissions expense 97,631 95,789 187,879 186,662 --------- --------- --------- --------- Net revenue 102,189 91,932 203,262 172,685 EXPENSES: Compensation and benefits 33,644 26,533 66,389 54,599 Transaction and operations support 27,447 25,296 55,687 50,682 Depreciation and amortization 7,396 6,626 14,619 13,149 Occupancy, equipment and supplies 8,119 6,962 15,715 13,335 Interest expense 1,905 2,765 3,127 5,995 Debt tender and redemption costs 20,661 20,661 --------- --------- --------- --------- Total expenses 99,172 68,182 176,198 137,760 --------- --------- --------- --------- Income from continuing operations before income taxes 3,017 23,750 27,064 34,925 Income tax expense 3,587 3,293 8,420 2,078 --------- --------- --------- --------- (Loss) income from continuing operations (570) 20,457 18,644 32,847 (Loss) income and gain from discontinued operations, net of tax (497) 20,411 21,282 30,052 --------- --------- --------- --------- NET (LOSS) INCOME $(1,067) $40,868 $39,926 $62,899 ========= ========= ========= ========= Diluted income per share (Loss) income from continuing operations $(0.01) $0.24 $0.21 $0.38 (Loss) income from discontinued operations, net of tax - 0.23 0.25 0.34 --------- --------- --------- --------- (Loss) earnings per common share $(0.01) $0.47 $0.46 $0.72 ========= ========= ========= ========= Average outstanding and potentially dilutive common shares 86,929 86,508 87,306 86,418 ========= ========= ========= ========= Basic earnings per share (Loss) income from continuing operations $(0.01) $0.24 $0.21 $0.38 (Loss) income from discontinued operations, net of tax - 0.23 0.25 0.34 --------- --------- --------- --------- (Loss) earnings per common share $(0.01) $0.47 $0.46 $0.72 ========= ========= ========= ========= Average outstanding common shares 86,929 86,224 86,819 86,116 ========= ========= ========= ========= TABLE THREE MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands, except share data) (Unaudited) June 30, December 31, 2004 2003 ------------ ------------ ASSETS Cash and cash equivalents $- $33,832 Cash and cash equivalents (substantially restricted) 1,028,814 1,025,026 Receivables, net (substantially restricted) 910,226 755,734 Investments (substantially restricted) 6,369,762 6,013,757 Property and equipment 91,254 95,207 Intangible assets 18,757 18,818 Goodwill 395,526 395,526 Net assets of discontinued operations - 343,931 Other assets 156,148 208,066 ------------ ------------ Total assets $8,970,487 $8,889,897 ============ ============ LIABILITIES Payment service obligations $7,862,106 $7,421,481 Debt 150,000 201,351 Derivative financial instruments 82,996 174,588 Pension and other postretirement benefits 104,003 101,039 Preferred stock subject to mandatory redemption - 6,733 Accounts payable and other liabilities 272,801 115,922 ------------ ------------ Total liabilities 8,471,906 8,021,114 STOCKHOLDERS' EQUITY: Common shares, $.01 par value: 250,000,000 shares authorized, 88,555,989 issued and outstanding 886 149,610 Additional paid-in capital 80,069 218,783 Retained income 461,903 863,944 Unearned employee benefits and other (32,410) (35,442) Accumulated other comprehensive loss (11,867) (35,208) Treasury stock - (292,904) ------------ ------------ Total stockholders' equity 498,581 868,783 ------------ ------------ Total liabilities and stockholders' equity $8,970,487 $8,889,897 ============ ============ TABLE FOUR MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (In thousands, except share data) (Unaudited) Unearned Employee Common Additional Retained Benefits Stock Capital Income and Other --------- ---------- --------- --------- Balance, December 31, 2003 $149,610 $218,783 $863,944 $(35,442) Net income 40,993 Dividends on common and preferred stock (7,807) Employee benefit plans (4,635) 2,815 Treasury shares acquired Unrealized foreign currency translation adjustment Unrealized gain on available- for-sale securities Unrealized loss on derivative financial instruments Other, net 48 --------- ---------- --------- --------- Balance, March 31, 2004 149,610 214,148 897,178 (32,627) Net income (1,067) Dividends on common and preferred stock (7,822) Employee benefit plans 4,972 217 Unrealized foreign currency translation adjustment Unrealized gain on available- for-sale securities Unrealized loss on derivative financial instruments Other, net 170 Spin off from Viad Corp (148,724) (139,051) (426,556) --------- ---------- --------- --------- Balance, June 30, 2004 $886 $80,069 $461,903 $(32,410) ========= ========== ========= ========= Accumulated Other Comprehensive Common (Loss) Stock in Income Treasury Total ------------- ---------- --------- Balance, December 31, 2003 $(35,208) $(292,904) $868,783 Net income 40,993 Dividends on common and preferred stock (7,807) Employee benefit plans (574) (2,394) Treasury shares acquired 6,048 6,048 Unrealized foreign currency translation adjustment (408) (408) Unrealized gain on available-for- sale securities 31,035 31,035 Unrealized loss on derivative financial instruments (2,992) (2,992) Other, net 48 ------------- ---------- --------- Balance, March 31, 2004 (7,573) (287,430) 933,306 Net income (1,067) Dividends on common and preferred stock (7,822) Employee benefit plans (345) 4,844 Unrealized foreign currency translation adjustment (172) (172) Unrealized gain on available-for- sale securities (76,570) (76,570) Unrealized loss on derivative financial instruments 72,448 72,448 Other, net 170 Spin off from Viad Corp - 287,775 (426,556) ------------- ---------- --------- Balance, June 30, 2004 $(11,867) $- $498,581 ============= ========== ========= TABLE FIVE MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands except share and per share data) (Unaudited) Year Ended 1st 2nd 3rd 4th December Quarter Quarter Quarter Quarter 31 2003 2003 2003 2003 2003 -------- --------- --------- --------- --------- REVENUE: Fee and other revenue $97,063 $102,828 $108,067 $111,044 $419,002 Investment revenue 86,638 82,017 76,783 77,661 323,099 Securities gains and losses, net (12,075) 2,876 3,198 1,123 (4,878) -------- --------- --------- --------- --------- Total revenue 171,626 187,721 188,048 189,828 737,223 Fee commissions expense 31,947 34,987 37,864 40,199 144,997 Investment commissions expense 58,926 60,802 59,408 53,200 232,336 -------- --------- --------- --------- --------- Total commissions expense 90,873 95,789 97,272 93,399 377,333 -------- --------- --------- --------- --------- Net revenue 80,753 91,932 90,776 96,429 359,890 EXPENSES: Compensation and benefits 28,066 26,533 28,499 24,399 107,497 Transaction and operations support 25,386 25,296 26,030 24,801 101,513 Depreciation and amortization 6,523 6,626 6,841 7,305 27,295 Occupancy, equipment and supplies 6,373 6,962 5,894 6,328 25,557 Interest expense 3,230 2,765 1,882 1,980 9,857 -------- --------- --------- --------- --------- Total expenses 69,578 68,182 69,146 64,813 271,719 -------- --------- --------- --------- --------- Income from continuing operations before income taxes 11,175 23,750 21,630 31,616 88,171 Income tax (benefit) expense (1,215) 3,293 3,142 7,265 12,485 -------- --------- --------- --------- --------- Income from continuing operations 12,390 20,457 18,488 24,351 75,686 Income from discontinued operations, net of tax 9,641 20,411 6,348 1,816 38,216 -------- --------- --------- --------- --------- NET INCOME $22,031 $40,868 $24,836 $26,167 $113,902 ======== ========= ========= ========= ========= Diluted income per share Income from continuing operations $0.14 $0.24 $0.22 $0.28 $0.87 Income from discontinued operations, net of tax 0.11 0.23 0.07 0.02 0.44 -------- --------- --------- --------- --------- Earnings per common share $0.25 $0.47 $0.29 $0.30 $1.31 ======== ========= ========= ========= ========= Average outstanding and potentially dilutive common shares 86,326 86,508 86,720 86,891 86,619 ======== ========= ========= ========= ========= Basic earnings per share Income from continuing operations $0.14 $0.24 $0.22 $0.28 $0.87 Income from discontinued operations, net of tax 0.11 0.23 0.07 0.02 0.44 -------- --------- --------- --------- --------- Earnings per common share $0.25 $0.47 $0.29 $0.30 $1.31 ======== ========= ========= ========= ========= Average outstanding common shares 86,008 86,224 86,273 86,387 86,223 ======== ========= ========= ========= ========= TABLE SIX MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME (In thousands except share and per share data) (Unaudited) Year Ended 1st 2nd 3rd 4th December Quarter Quarter Quarter Quarter 31 2002 2002 2002 2002 2002 -------- -------- -------- -------- --------- REVENUE: Fee and other revenue $83,060 $91,010 $94,320 $97,245 $365,635 Investment revenue 84,882 85,733 88,827 91,890 351,332 Securities gains and losses, net (2,341) (1,255) 2,954 (8,635) (9,277) -------- -------- -------- -------- --------- Total revenue 165,601 175,488 186,101 180,500 707,690 Fee commissions expense 25,856 29,484 30,510 32,418 118,268 Investment commissions expense 55,607 58,088 62,541 63,916 240,152 -------- -------- -------- -------- --------- Total commissions expense 81,463 87,572 93,051 96,334 358,420 -------- -------- -------- -------- --------- Net revenue 84,138 87,916 93,050 84,166 349,270 EXPENSES: Compensation and benefits 26,309 23,881 27,462 22,037 99,689 Transaction and operations support 25,825 25,578 23,597 21,608 96,608 Depreciation and amortization 6,514 6,191 6,497 6,692 25,894 Occupancy, equipment and supplies 5,932 6,112 5,888 7,248 25,180 Interest expense 3,930 3,846 4,101 3,335 15,212 -------- -------- -------- -------- --------- Total expenses 68,510 65,608 67,545 60,920 262,583 -------- -------- -------- -------- --------- Income from continuing operations before income taxes 15,628 22,308 25,505 23,246 86,687 Income tax expense 352 3,290 4,502 3,779 11,923 -------- -------- -------- -------- --------- Income from continuing operations 15,276 19,018 21,003 19,467 74,764 (Loss) income from discontinued operations, net of tax (24,619) 10,697 11,254 (14,210) (16,878) -------- -------- -------- -------- --------- NET (LOSS) INCOME $(9,343) $29,715 $32,257 $5,257 $57,886 ======== ======== ======== ======== ========= Diluted income per share Income from continuing operations $0.18 $0.22 $0.24 $0.23 $0.86 (Loss) income from discontinued operations, net of tax (0.29) 0.12 0.13 (0.17) (0.21) -------- -------- -------- -------- --------- (Loss) earnings per common share $(0.11) $0.34 $0.37 $0.06 $0.65 ======== ======== ======== ======== ========= Average outstanding and potentially dilutive common shares 86,095 87,672 86,616 86,068 86,716 ======== ======== ======== ======== ========= Basic earnings per share Income from continuing operations $0.18 $0.22 $0.24 $0.23 $0.87 (Loss) income from discontinued operations, net of tax (0.29) 0.12 0.13 (0.17) (0.21) -------- -------- -------- -------- --------- (Loss) earnings per common share $(0.11) $0.34 $0.37 $0.06 $0.66 ======== ======== ======== ======== ========= Average outstanding common shares 86,095 86,693 86,188 85,738 86,178 ======== ======== ======== ======== ========= TABLE SEVEN MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES SEGMENT INFORMATION (In thousands) (Unaudited) 2003 ------------------------------------------------- First Second Third Fourth Full Quarter Quarter Quarter Quarter Year --------- --------- --------- --------- --------- Revenue: Global Funds Transfer $105,226 $111,500 $114,916 $118,466 $450,108 Payment Systems 66,400 76,221 73,132 71,362 287,115 ------------------------------------------------- Total revenue 171,626 187,721 188,048 189,828 737,223 Operating income: Global Funds Transfer 21,690 24,169 24,453 26,511 96,823 Payment Systems (2,611) 6,289 3,650 7,795 15,123 ------------------------------------------------- 19,079 30,458 28,103 34,306 111,946 Corporate activities: Debt tender and redemption costs Interest expense 3,230 2,765 1,882 1,980 9,857 Other corporate activities 4,674 3,943 4,591 710 13,918 ------------------------------------------------- Income from continuing operations before income taxes $11,175 $23,750 $21,630 $31,616 $88,171 ================================================= 2004 ------------------- First Second Quarter Quarter --------- --------- Revenue: Global Funds Transfer $120,969 $128,165 Payment Systems 70,352 71,655 ------------------- Total revenue 191,321 199,820 Operating income: Global Funds Transfer 20,978 24,777 Payment Systems 9,190 5,848 ------------------- 30,168 30,625 Corporate activities: Debt tender and redemption costs 20,661 Interest expense 1,222 1,905 Other corporate activities 4,899 5,042 ------------------- Income from continuing operations before income taxes $24,047 $3,017 =================== CONTACT: MoneyGram International, Inc., Minneapolis Investor Relations: Patricia D. Phillips, 952-591-3840 ir@moneygram.com -----END PRIVACY-ENHANCED MESSAGE-----