Delaware | 1-31950 | 16-1690064 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification Number) | ||
2828 N. Harwood Street, 15th Floor Dallas, Texas | 75201 | |||
(Address of principal executive offices) | (Zip code) |
Not applicable |
(Former name or former address, if changed since last report) |
Exhibit No. | Description of Exhibit | |
99.1 |
MONEYGRAM INTERNATIONAL, INC. | ||
By: | /s/ Lawrence Angelilli | |
Name: | Lawrence Angelilli | |
Title: | Chief Financial Officer |
Exhibit No. | Description of Exhibit | |
99.1 |
• | Total revenue of $408.2 million declined 2% on a reported basis and 4% on a constant currency basis compared to fourth quarter 2016. |
• | Money transfer revenue results were primarily impacted by softness in the U.S. to U.S. business and slower growth in Africa, partially offset by the translation impact of the weaker U.S. dollar. |
◦ | Moneygram.com grew 23% primarily from new customer acquisitions. Total Digital money transfer revenue grew 7% over fourth quarter 2016 as strong moneygram.com growth was partially offset by a decline in revenue from kiosks and global economic trends. Digital represented 14% of total money transfer revenue. |
• | Operating loss was $56.5 million, a decrease of $79.2 million when compared to fourth quarter 2016, driven by an $85.0 million accrual related to the company's deferred prosecution agreement (the "DPA"). |
◦ | As previously disclosed, the company and the government extended the DPA to provide both parties with additional time to discuss the company's compliance with the DPA. Included in fourth quarter expenses, the company recorded an $85.0 million accrual in connection with a possible resolution of these discussions, which is based on the facts and circumstances known at the present time. However, the company is unable to reasonably estimate the ultimate cost of resolving these discussions, and no assurance can be given that future costs and payments made in connection with this matter will not exceed the amount currently recorded or that the government will not also seek to impose non-monetary remedies or penalties. Furthermore, there can be no assurance that the government will not seek any other remedy, including criminal prosecution and financial penalties, in lieu of an extension of the DPA and monitorship. |
• | Net loss was $52.5 million and included a one-time income tax benefit from the re-measurement of deferred tax assets and liabilities resulting from the Tax Cuts and Jobs Act of 2017, which was offset by the tax impact of the DPA accrual. |
• | EBITDA was $(24.3) million, a decrease of $79.4 million as compared to fourth quarter 2016. Both net income and EBITDA were impacted by the accrual related to the DPA discussed above, $2.0 million of costs incurred in connection with the terminated merger with Ant Financial and an increase in direct monitor costs. |
• | Adjusted EBITDA was $71.3 million, a 10% increase on a reported basis and an 8% increase on a constant currency basis compared to fourth quarter 2016. Adjusted EBITDA margin was 17.5% as compared to 15.5% for fourth quarter 2016. |
• | Diluted loss per share was $0.83 compared to diluted earnings per share of $0.11 in the fourth quarter 2016. |
• | Adjusted Free Cash Flow was $25.7 million for the quarter. |
• | Total revenue of $1,602.1 million declined 2% on a reported and constant currency basis compared to 2016. |
◦ | Moneygram.com grew 25% primarily from new customer acquisitions. Total Digital money transfer revenue grew 9% over the prior year as strong moneygram.com growth was partially offset by the aforementioned decline in revenue from kiosks and global economic trends. Digital represented 14% of total money transfer revenue. |
• | Net loss was $29.8 million as compared to net income of $15.9 million in 2016, and included the aforementioned income tax impact. EBITDA was $135.7 million and decreased by $85.7 million when compared to 2016 primarily due to the $85.0 million accrual related to the DPA, which also impacted net loss. |
• | Net loss and EBITDA included $12.7 million of costs incurred in connection with the terminated merger with Ant Financial. |
• | Adjusted EBITDA was $275.9 million, a 5% increase on a reported and constant currency basis compared to 2016. |
• | Adjusted Free Cash Flow was $105.1 million, an increase of $9.0 million from 2016. |
• | Ending cash and cash equivalent balance of $190.0 million at end of 2017 compared to $157.2 million at end of 2016. |
Table One | - | Condensed Consolidated Statements of Operations |
Table Two | - | Segment Results |
Table Three | - | Segment Reconciliations |
Table Four | - | EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow |
Table Five | - | Adjusted Net Income and Adjusted Diluted EPS |
Table Six | - | Condensed Consolidated Balance Sheets |
Table Seven | - | Condensed Consolidated Statements of Cash Flows |
Table Eight | - | Correction of Prior Period Results |
TABLE ONE | ||||||||||||||||||||||||
MONEYGRAM INTERNATIONAL, INC. | ||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
(Amounts in millions, except percentages and per share data) | Three Months Ended December 31, | 2017 vs | Twelve Months Ended December 31, | 2017 vs | ||||||||||||||||||||
2017 | 2016(1) | 2016 | 2017 | 2016(1) | 2016 | |||||||||||||||||||
REVENUE | ||||||||||||||||||||||||
Fee and other revenue | $ | 399.4 | $ | 410.9 | $ | (11.5 | ) | $ | 1,560.9 | $ | 1,612.4 | $ | (51.5 | ) | ||||||||||
Investment revenue | 8.8 | 5.3 | 3.5 | 41.2 | 18.0 | 23.2 | ||||||||||||||||||
Total revenue | 408.2 | 416.2 | (8.0 | ) | 1,602.1 | 1,630.4 | (28.3 | ) | ||||||||||||||||
Total revenue growth, as reported | (2 | )% | 3 | % | (2 | )% | 6 | % | ||||||||||||||||
Total revenue growth, constant currency | (4 | )% | 4 | % | (2 | )% | 7 | % | ||||||||||||||||
OPERATING EXPENSES | ||||||||||||||||||||||||
Commissions expense | 196.0 | 199.5 | (3.5 | ) | 772.2 | 795.6 | (23.4 | ) | ||||||||||||||||
Compensation and benefits | 70.2 | 76.8 | (6.6 | ) | 277.7 | 295.7 | (18.0 | ) | ||||||||||||||||
Transaction and operations support | 162.1 | 82.4 | 79.7 | 402.3 | 309.5 | 92.8 | ||||||||||||||||||
Occupancy, equipment and supplies | 17.1 | 15.1 | 2.0 | 66.1 | 61.9 | 4.2 | ||||||||||||||||||
Depreciation and amortization | 19.3 | 19.7 | (0.4 | ) | 75.1 | 79.9 | (4.8 | ) | ||||||||||||||||
Total operating expenses | 464.7 | 393.5 | 71.2 | 1,593.4 | 1,542.6 | 50.8 | ||||||||||||||||||
OPERATING (LOSS) INCOME | (56.5 | ) | 22.7 | (79.2 | ) | 8.7 | 87.8 | (79.1 | ) | |||||||||||||||
Other expense | ||||||||||||||||||||||||
Interest expense | 11.7 | 11.2 | 0.5 | 45.3 | 45.0 | 0.3 | ||||||||||||||||||
Debt extinguishment costs | — | 0.3 | (0.3 | ) | — | 0.3 | (0.3 | ) | ||||||||||||||||
Total other expense | 11.7 | 11.5 | 0.2 | 45.3 | 45.3 | — | ||||||||||||||||||
(Loss) income before income taxes | (68.2 | ) | 11.2 | (79.4 | ) | (36.6 | ) | 42.5 | (79.1 | ) | ||||||||||||||
Income tax (benefit) expense | (15.7 | ) | 4.1 | (19.8 | ) | (6.8 | ) | 26.6 | (33.4 | ) | ||||||||||||||
NET (LOSS) INCOME | $ | (52.5 | ) | $ | 7.1 | $ | (59.6 | ) | $ | (29.8 | ) | $ | 15.9 | $ | (45.7 | ) | ||||||||
(LOSS) EARNINGS PER COMMON SHARE | ||||||||||||||||||||||||
Basic | $ | (0.83 | ) | $ | 0.11 | $ | (0.94 | ) | $ | (0.47 | ) | $ | 0.26 | $ | (0.73 | ) | ||||||||
Diluted | $ | (0.83 | ) | $ | 0.11 | $ | (0.94 | ) | $ | (0.47 | ) | $ | 0.24 | $ | (0.71 | ) | ||||||||
Weighted-average outstanding common shares and equivalents used in computing (loss) earnings per share | ||||||||||||||||||||||||
Basic | 63.1 | 61.9 | 1.2 | 62.9 | 62.3 | 0.6 | ||||||||||||||||||
Diluted | 63.1 | 66.4 | (3.3 | ) | 62.9 | 65.9 | (3.0 | ) | ||||||||||||||||
(1) 2016 financial information includes the corrections outlined in Table 8. |
TABLE TWO | ||||||||||||||||||||||||
MONEYGRAM INTERNATIONAL, INC. | ||||||||||||||||||||||||
SEGMENT RESULTS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Global Funds Transfer | ||||||||||||||||||||||||
(Amounts in millions, except percentages) | Three Months Ended December 31, | 2017 vs | Twelve Months Ended December 31, | 2017 vs | ||||||||||||||||||||
2017 | 2016 | 2016 | 2017 | 2016 | 2016 | |||||||||||||||||||
Money transfer revenue | $ | 366.4 | $ | 369.9 | $ | (3.5 | ) | $ | 1,421.8 | $ | 1,456.2 | $ | (34.4 | ) | ||||||||||
Bill payment revenue | 20.2 | 25.6 | (5.4 | ) | 86.3 | 97.5 | (11.2 | ) | ||||||||||||||||
Total revenue | $ | 386.6 | $ | 395.5 | $ | (8.9 | ) | $ | 1,508.1 | $ | 1,553.7 | $ | (45.6 | ) | ||||||||||
Total commissions expense | $ | 193.0 | $ | 198.3 | $ | (5.3 | ) | $ | 762.2 | $ | 791.9 | $ | (29.7 | ) | ||||||||||
Operating (loss) income | $ | (56.1 | ) | $ | 25.8 | $ | (81.9 | ) | $ | 4.9 | $ | 95.8 | $ | (90.9 | ) | |||||||||
Operating margin | (14.5 | )% | 6.5 | % | 0.3 | % | 6.2 | % | ||||||||||||||||
Money transfer revenue growth, as reported | (1 | )% | 3 | % | (2 | )% | 7 | % | ||||||||||||||||
Money transfer revenue growth, constant currency | (3 | )% | 4 | % | (2 | )% | 8 | % | ||||||||||||||||
Financial Paper Products | ||||||||||||||||||||||||
Three Months Ended December 31, | 2017 vs | Twelve Months Ended December 31, | 2017 vs | |||||||||||||||||||||
(Amounts in millions, except percentages) | 2017 | 2016 | 2016 | 2017 | 2016 | 2016 | ||||||||||||||||||
Money order revenue | $ | 13.0 | $ | 12.6 | $ | 0.4 | $ | 55.0 | $ | 50.8 | $ | 4.2 | ||||||||||||
Official check revenue | 8.6 | 7.0 | 1.6 | 39.0 | 24.8 | 14.2 | ||||||||||||||||||
Total revenue | $ | 21.6 | $ | 19.6 | $ | 2.0 | $ | 94.0 | $ | 75.6 | $ | 18.4 | ||||||||||||
Total commissions expense | $ | 3.1 | $ | 1.2 | $ | 1.9 | $ | 10.0 | $ | 3.7 | $ | 6.3 | ||||||||||||
Operating income | $ | 5.0 | $ | 4.9 | $ | 0.1 | $ | 31.8 | $ | 18.5 | $ | 13.3 | ||||||||||||
Operating margin | 23.1 | % | 25.0 | % | 33.8 | % | 24.5 | % | ||||||||||||||||
TABLE THREE | ||||||||||||||||||||||||
MONEYGRAM INTERNATIONAL, INC. | ||||||||||||||||||||||||
SEGMENT RECONCILIATIONS | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
Global Funds Transfer | ||||||||||||||||||||||||
(Amounts in millions, except percentages) | Three Months Ended December 31, | 2017 vs | Twelve Months Ended December 31, | 2017 vs | ||||||||||||||||||||
2017 | 2016 | 2016 | 2017 | 2016 | 2016 | |||||||||||||||||||
Revenue (as reported) | $ | 386.6 | $ | 395.5 | $ | (8.9 | ) | $ | 1,508.1 | $ | 1,553.7 | $ | (45.6 | ) | ||||||||||
Adjusted operating income | $ | 37.4 | $ | 33.8 | $ | 3.6 | $ | 127.7 | $ | 131.3 | $ | (3.6 | ) | |||||||||||
Legal and contingent matters | (85.0 | ) | — | (85.0 | ) | (85.0 | ) | — | (85.0 | ) | ||||||||||||||
Compliance enhancement program | (0.8 | ) | (1.9 | ) | 1.1 | (7.5 | ) | (8.9 | ) | 1.4 | ||||||||||||||
Direct monitor costs | (3.4 | ) | (1.8 | ) | (1.6 | ) | (16.0 | ) | (9.1 | ) | (6.9 | ) | ||||||||||||
Stock-based compensation expense | (3.1 | ) | (3.8 | ) | 0.7 | (13.1 | ) | (16.1 | ) | 3.0 | ||||||||||||||
Severance and related costs | (1.2 | ) | (0.5 | ) | (0.7 | ) | (1.2 | ) | (1.4 | ) | 0.2 | |||||||||||||
Total adjustments | (93.5 | ) | (8.0 | ) | (85.5 | ) | (122.8 | ) | (35.5 | ) | (87.3 | ) | ||||||||||||
Operating income (as reported) | $ | (56.1 | ) | $ | 25.8 | $ | (81.9 | ) | $ | 4.9 | $ | 95.8 | $ | (90.9 | ) | |||||||||
Adjusted operating margin | 9.7 | % | 8.5 | % | 8.5 | % | 8.5 | % | ||||||||||||||||
Total adjustments | (24.2 | )% | (2.0 | )% | (8.1 | )% | (2.3 | )% | ||||||||||||||||
Operating margin (as reported) | (14.5 | )% | 6.5 | % | 0.3 | % | 6.2 | % | ||||||||||||||||
Financial Paper Products | ||||||||||||||||||||||||
(Amounts in millions, except percentages) | Three Months Ended December 31, | 2017 vs | Twelve Months Ended December 31, | 2017 vs | ||||||||||||||||||||
2017 | 2016 | 2016 | 2017 | 2016 | 2016 | |||||||||||||||||||
Revenue (as reported) | $ | 21.6 | $ | 19.6 | $ | 2.0 | $ | 94.0 | $ | 75.6 | $ | 18.4 | ||||||||||||
Adjusted operating income | $ | 5.8 | $ | 5.6 | $ | 0.2 | $ | 34.7 | $ | 21.3 | $ | 13.4 | ||||||||||||
Compliance enhancement program | (0.4 | ) | (0.3 | ) | (0.1 | ) | (1.5 | ) | (1.1 | ) | (0.4 | ) | ||||||||||||
Stock-based compensation expense | (0.4 | ) | (0.4 | ) | — | (1.4 | ) | (1.7 | ) | 0.3 | ||||||||||||||
Total adjustments | (0.8 | ) | (0.7 | ) | (0.1 | ) | (2.9 | ) | (2.8 | ) | (0.1 | ) | ||||||||||||
Operating income (as reported) | $ | 5.0 | $ | 4.9 | $ | 0.1 | $ | 31.8 | $ | 18.5 | $ | 13.3 | ||||||||||||
Adjusted operating margin | 26.9 | % | 28.6 | % | 36.9 | % | 28.2 | % | ||||||||||||||||
Total adjustments | (3.7 | )% | (3.6 | )% | (3.1 | )% | (3.7 | )% | ||||||||||||||||
Operating margin (as reported) | 23.1 | % | 25.0 | % | 33.8 | % | 24.5 | % | ||||||||||||||||
TABLE FOUR | ||||||||||||||||||||||||
MONEYGRAM INTERNATIONAL, INC. | ||||||||||||||||||||||||
EBITDA, ADJUSTED EBITDA, ADJUSTED EBITDA MARGIN AND ADJUSTED FREE CASH FLOW | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
(Amounts in millions, except percentages) | Three Months Ended December 31, | 2017 vs | Twelve Months Ended December 31, | 2017 vs | ||||||||||||||||||||
2017 | 2016(1) | 2016 | 2017 | 2016(1) | 2016 | |||||||||||||||||||
(Loss) income before income taxes | $ | (68.2 | ) | $ | 11.2 | $ | (79.4 | ) | $ | (36.6 | ) | $ | 42.5 | $ | (79.1 | ) | ||||||||
Interest expense | 11.7 | 11.2 | 0.5 | 45.3 | 45.0 | 0.3 | ||||||||||||||||||
Depreciation and amortization | 19.3 | 19.7 | (0.4 | ) | 75.1 | 79.9 | (4.8 | ) | ||||||||||||||||
Signing bonus amortization | 12.9 | 13.0 | (0.1 | ) | 51.9 | 54.0 | (2.1 | ) | ||||||||||||||||
EBITDA | (24.3 | ) | 55.1 | (79.4 | ) | 135.7 | 221.4 | (85.7 | ) | |||||||||||||||
Significant items impacting EBITDA: | ||||||||||||||||||||||||
Legal and contingent matters (2) | 84.0 | 0.9 | 83.1 | 85.9 | 2.3 | 83.6 | ||||||||||||||||||
Stock-based, contingent and incentive compensation | 3.5 | 4.1 | (0.6 | ) | 14.5 | 19.0 | (4.5 | ) | ||||||||||||||||
Direct monitor costs | 3.4 | 1.8 | 1.6 | 16.0 | 9.1 | 6.9 | ||||||||||||||||||
Costs incurred in connection with the terminated merger with Ant Financial (3) | 2.0 | — | 2.0 | 12.7 | — | 12.7 | ||||||||||||||||||
Severance and related costs | 1.5 | 0.5 | 1.0 | 1.5 | 1.9 | (0.4 | ) | |||||||||||||||||
Compliance enhancement program | 1.2 | 2.3 | (1.1 | ) | 9.6 | 10.3 | (0.7 | ) | ||||||||||||||||
Adjusted EBITDA | $ | 71.3 | $ | 64.7 | $ | 6.6 | $ | 275.9 | $ | 264.0 | $ | 11.9 | ||||||||||||
Adjusted EBITDA margin (4) | 17.5 | % | 15.5 | % | 2.0 | % | 17.2 | % | 16.2 | % | 1.0 | % | ||||||||||||
Adjusted EBITDA growth, as reported | 10 | % | 5 | % | ||||||||||||||||||||
Adjusted EBITDA growth, constant currency adjusted | 8 | % | 5 | % | ||||||||||||||||||||
Adjusted EBITDA | $ | 71.3 | $ | 64.7 | $ | 6.6 | $ | 275.9 | $ | 264.0 | $ | 11.9 | ||||||||||||
Cash payments for interest | (10.8 | ) | (10.2 | ) | (0.6 | ) | (41.9 | ) | (41.6 | ) | (0.3 | ) | ||||||||||||
Cash payments for taxes, net of refunds | 1.4 | (2.4 | ) | 3.8 | (5.0 | ) | (9.5 | ) | 4.5 | |||||||||||||||
Cash payments for capital expenditures | (20.5 | ) | (22.4 | ) | 1.9 | (83.6 | ) | (82.8 | ) | (0.8 | ) | |||||||||||||
Cash payments for agent signing bonuses | (15.7 | ) | (16.8 | ) | 1.1 | (40.3 | ) | (34.0 | ) | (6.3 | ) | |||||||||||||
Adjusted Free Cash Flow | $ | 25.7 | $ | 12.9 | $ | 12.8 | $ | 105.1 | $ | 96.1 | $ | 9.0 | ||||||||||||
(1) 2016 financial information includes the corrections outlined in Table 8. | ||||||||||||||||||||||||
(2) 2017 primarily includes an $85.0 million accrual related to the DPA net of a one-time insurance settlement of $1.3 million. | ||||||||||||||||||||||||
(3) Costs include, but are not limited to, legal, investment banking and consultant fees and other one-time integration planning costs. | ||||||||||||||||||||||||
(4) Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by total revenue. |
TABLE FIVE | ||||||||||||||||
MONEYGRAM INTERNATIONAL, INC. | ||||||||||||||||
ADJUSTED NET INCOME AND ADJUSTED DILUTED EPS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
Three Months Ended December 31, | Twelve Months Ended December 31, | |||||||||||||||
(Amounts in millions, except per share data) | 2017 | 2016(1) | 2017 | 2016(1) | ||||||||||||
Net (loss) income | $ | (52.5 | ) | $ | 7.1 | $ | (29.8 | ) | $ | 15.9 | ||||||
Total adjustments (2) | 95.6 | 9.6 | 140.2 | 42.6 | ||||||||||||
Tax impacts of adjustments (3) | (4.2 | ) | (3.6 | ) | (19.8 | ) | (15.5 | ) | ||||||||
Tax reform impact(4) | (22.8 | ) | — | (22.8 | ) | — | ||||||||||
Tax adjustments (5) | — | — | — | 7.7 | ||||||||||||
Adjusted net (loss) income | $ | 16.1 | $ | 13.1 | $ | 67.8 | $ | 50.7 | ||||||||
Diluted (loss) earnings per common share | $ | (0.83 | ) | $ | 0.11 | $ | (0.47 | ) | $ | 0.24 | ||||||
Diluted adjustments per common share | 1.09 | 0.09 | 1.55 | 0.53 | ||||||||||||
Diluted adjusted (loss) earnings per common share | $ | 0.26 | $ | 0.20 | $ | 1.08 | $ | 0.77 | ||||||||
Diluted weighted-average outstanding common shares and equivalents | 63.1 | 66.4 | 62.9 | 65.9 | ||||||||||||
(1) 2016 financial information includes the corrections outlined in Table 8. | ||||||||||||||||
(2) See summary of adjustments in Table Four - EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin and Adjusted Free Cash Flow. | ||||||||||||||||
(3) Tax rates used to calculate the tax expense impact are based on the nature of each adjustment. | ||||||||||||||||
(4) One-time net benefit from the remeasurement of deferred tax assets and liabilities due to the Tax Cuts and Jobs Act of 2017. | ||||||||||||||||
(5) Represents adjustments to income tax expense for an IRS tax litigation matter and a change to an uncertain tax position. |
TABLE SIX | ||||||||
MONEYGRAM INTERNATIONAL, INC. | ||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS | ||||||||
(Unaudited) | ||||||||
(Amounts in millions, except share data) | December 31, 2017 | December 31, 2016(1) | ||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 190.0 | $ | 157.2 | ||||
Settlement assets | 3,756.9 | 3,634.3 | ||||||
Property and equipment, net | 214.9 | 201.0 | ||||||
Goodwill | 442.2 | 442.2 | ||||||
Other assets | 168.5 | 162.7 | ||||||
Total assets | $ | 4,772.5 | $ | 4,597.4 | ||||
LIABILITIES | ||||||||
Payment service obligations | $ | 3,756.9 | $ | 3,634.3 | ||||
Debt, net | 908.1 | 915.2 | ||||||
Pension and other postretirement benefits | 97.3 | 99.0 | ||||||
Accounts payable and other liabilities | 255.5 | 164.5 | ||||||
Total liabilities | 5,017.8 | 4,813.0 | ||||||
STOCKHOLDERS’ DEFICIT | ||||||||
Participating convertible preferred stock - series D, $0.01 par value, 200,000 shares authorized, 71,282 issued at December 31, 2017 and December 31, 2016 | 183.9 | 183.9 | ||||||
Common stock, $0.01 par value, 162,500,000 shares authorized, 58,823,567 shares issued at December 31, 2017 and December 31, 2016 | 0.6 | 0.6 | ||||||
Additional paid-in capital | 1,034.8 | 1,020.3 | ||||||
Retained loss | (1,336.1 | ) | (1,252.6 | ) | ||||
Accumulated other comprehensive loss | (63.0 | ) | (56.1 | ) | ||||
Treasury stock: 4,585,223 and 6,058,856 shares at December 31, 2017 and December 31, 2016, respectively | (65.5 | ) | (111.7 | ) | ||||
Total stockholders’ deficit | (245.3 | ) | (215.6 | ) | ||||
Total liabilities and stockholders’ deficit | $ | 4,772.5 | $ | 4,597.4 | ||||
(1) 2016 financial information includes the corrections outlined in Table 8. |
TABLE SEVEN | ||||||||
MONEYGRAM INTERNATIONAL, INC. | ||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
Twelve Months Ended December 31, | ||||||||
(Amounts in millions) | 2017 | 2016 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||
Net (loss) income | $ | (29.8 | ) | $ | 15.9 | |||
Adjustments to reconcile net income to net cash provided by operating activities | 162.3 | 105.0 | ||||||
Net cash provided by operating activities | 132.5 | 120.9 | ||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||
Purchases of property and equipment | (83.6 | ) | (82.8 | ) | ||||
Net cash used in investing activities | (83.6 | ) | (82.8 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||
Principal payments on debt | (9.8 | ) | (30.3 | ) | ||||
Proceeds from exercise of stock options and other | 1.7 | — | ||||||
Stock repurchases | — | (11.7 | ) | |||||
Payments to tax authorities for stock-based compensation | (8.0 | ) | (2.7 | ) | ||||
Payment for contingent consideration | — | (0.7 | ) | |||||
Net cash used in financing activities | (16.1 | ) | (45.4 | ) | ||||
NET CHANGE IN CASH AND CASH EQUIVALENTS | 32.8 | (7.3 | ) | |||||
CASH AND CASH EQUIVALENTS—Beginning of period | 157.2 | 164.5 | ||||||
CASH AND CASH EQUIVALENTS—End of period | $ | 190.0 | $ | 157.2 | ||||
TABLE EIGHT | ||||||||||||||||
MONEYGRAM INTERNATIONAL, INC. | ||||||||||||||||
CORRECTION OF PRIOR PERIOD RESULTS | ||||||||||||||||
(Unaudited) | ||||||||||||||||
(Amounts in millions, except per share data) | Three Months Ended December 31, | Twelve Months Ended December 31, | ||||||||||||||
2016 | 2016 | 2016 | 2016 | |||||||||||||
Previously Reported | Corrected (1) | Previously Reported | Corrected (1) | |||||||||||||
Consolidated Results | ||||||||||||||||
Compensation and benefits | $ | 76.6 | $ | 76.8 | $ | 295.1 | $ | 295.7 | ||||||||
Income before income taxes | 11.4 | 11.2 | 43.1 | 42.5 | ||||||||||||
Income tax expense | 4.2 | 4.1 | 26.8 | 26.6 | ||||||||||||
NET INCOME | $ | 7.2 | $ | 7.1 | $ | 16.3 | $ | 15.9 | ||||||||
EBITDA | $ | 55.3 | $ | 55.1 | $ | 222.0 | $ | 221.4 | ||||||||
Adjusted EBITDA | $ | 64.9 | $ | 64.7 | $ | 264.6 | $ | 264.0 | ||||||||
EARNINGS PER COMMON SHARE | ||||||||||||||||
Basic | $ | 0.12 | $ | 0.11 | $ | 0.26 | $ | 0.26 | ||||||||
Diluted | $ | 0.11 | $ | 0.11 | $ | 0.25 | $ | 0.24 | ||||||||
December 31, 2016 | ||||||||||||||||
Previously Reported | Corrected (1) | |||||||||||||||
Balance Sheet | ||||||||||||||||
Pension and other postretirement benefits | $ | 87.6 | $ | 99.0 | ||||||||||||
Accounts payable and other liabilities | 168.7 | 164.5 | ||||||||||||||
Retained loss | (1,247.6 | ) | (1,252.6 | ) | ||||||||||||
Accumulated other comprehensive loss | $ | (53.9 | ) | $ | (56.1 | ) | ||||||||||
(1) During 2017, the Company corrected an error with respect to the Pension Plan. Accordingly, Company adjusted its consolidated financial statements for the period ended December 31, 2016. The adjustment has no impact to "Total liabilities and stockholders' deficit" on the Consolidated Balance Sheets as of December 31, 2016 and “Net cash provided by operating activities” on the Consolidated Statements of Cash Flows for the year ended December 31, 2016. |
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