MoneyGram International Reports Second Quarter 2017 Financial Results

DALLAS, Aug. 7, 2017

Second Quarter Financial Results

• Total revenue of $410.0 million declined slightly on a reported basis and was flat on a constant currency basis as compared to second quarter 2016. 
• Money transfer revenue reflects continued growth around the world offset by softness in the U.S. to U.S. market, along with geopolitical issues in Africa. Second quarter money transfer revenue was $356.9 million, representing a decrease of 4% on a reported basis and a decrease of 3% on a constant currency basis as compared to prior year.   
• Digital money transfer revenue grew 10% on a reported basis over the prior year driven by strong growth in moneygram.com.  Digital represented 15% of total money transfer revenue.
• Investment revenue increased $14.5 million versus last year primarily related to the redemption of a legacy portfolio investment.
• Operating income was $19.8 million, an increase of 22%.
• Net income was $6.2 million, an increase of $3.1 million as compared to second quarter 2016.  EBITDA was $51.7 million, an increase of 3% as compared to the year-ago period. Both Net income and EBITDA were impacted by $5.7 million of merger-related costs.
• Adjusted EBITDA was $70.4 million, a 19% increase on a constant currency basis.
• Adjusted Free Cash Flow was $27.4 million, an increase of $6.2 million from the prior year.
• Income tax expense was $2.4 million, representing a 28% tax rate.
• Diluted earnings per share was $0.09 compared to $0.05 last year. Adjusted diluted earnings per share was $0.27 compared to $0.15 last year.

"We are excited about our pending transaction with Ant Financial which will strengthen MoneyGram's business, increase U.S. jobs, promote financial inclusion by helping more customers access innovative, secure and reliable financial connections, and deliver value to all of our stakeholders," said Alex Holmes, MoneyGram's chief executive officer.  "We continue to work with the CFIUS committee and various other regulatory agencies and remain focused on closing the transaction by the end of this year."

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. Words such as "may," "will," "could," "should," "expect," "plan," "project," "intend," "anticipate," "believe," "estimate," "predict," "potential," "pursuant," "target," "continue," 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, including, among other things, statements regarding the expected timetable for completing the proposed transaction. These statements are subject to numerous risks and uncertainties, 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 timing to consummate the proposed transaction with Ant Financial; the conditions to closing of the proposed transaction may not be satisfied or that the closing of the proposed transaction otherwise does not occur; the risk that a regulatory approval (including CFIUS approval) that may be required to consummate the proposed transaction is not obtained or is obtained subject to conditions that are not anticipated; the diversion of management time on transaction-related issues; expectations regarding regulatory approval of the transaction; results of litigation, settlements and investigations; actions by third parties, including governmental agencies; global economic conditions; adverse industry conditions; adverse credit and equity market conditions; the loss of, or reduction in business with, key customers; legal proceedings; the ability to effectively identify and enter new markets; governmental regulation; the ability to retain management and other personnel; and other economic, business, or competitive factors.

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 filings may be obtained by contacting MoneyGram or the SEC or through MoneyGram's web site at corporate.moneygram.com or through the SEC's Electronic Data Gathering and Analysis Retrieval System (EDGAR) at http://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 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, cash payments related to an IRS tax matter, 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), adjusted diluted earnings 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.