International Money Express, Inc. (NASDAQ:IMXI) Q3 2022 Earnings Conference Call November 9, 2022 9:00 AM ET Company Participants Mike Gallentine - Vice President, Investor Relations Bob Lisy - Chairman, Chief Executive Officer & President Andras Bende - Chief Financial Officer Joseph Aguilar - Chief Operating Office Randy Nilsen - Chief Revenue Officer Chris Hunt - Chief Information Officer. Marcelo Theodoro - Chief Digital Officer Conference Call Participants David Scharf - JMP Securities Mike Grondahl - ...

PART 1 - FINANCIAL INFORMATION [Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) The unaudited financial statements for H1 2022 detail asset and equity growth, revenue and net income increases, and key accounting policies including lease standards and debt facilities [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) As of June 30, 2022, total assets and stockholders' equity increased, driven by accounts receivable and retained earnings, while liabilities remained stable Condensed Consolidated Balance Sheet Highlights (in thousands) | Balance Sheet Item | June 30, 2022 (unaudited) | December 31, 2021 | | :--- | :--- | :--- | | **Assets** | | | | Cash | $114,600 | $132,474 | | Accounts receivable, net | $97,154 | $67,317 | | Total current assets | $274,258 | $263,545 | | Total assets | $358,621 | $340,536 | | **Liabilities & Equity** | | | | Total current liabilities | $116,927 | $116,859 | | Debt, net (long-term) | $77,270 | $79,211 | | Total liabilities | $198,423 | $197,496 | | Retained earnings | $109,441 | $81,803 | | Treasury stock, at cost | ($19,194) | ($5,566) | | Total stockholders' equity | $160,198 | $143,040 | [Condensed Consolidated Statements of Income and Comprehensive Income](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income%20and%20Comprehensive%20Income) For Q2 and H1 2022, the company reported significant year-over-year increases in total revenues, operating income, net income, and diluted EPS Statement of Income Highlights (in thousands, except EPS) | Metric | Q2 2022 | Q2 2021 | YoY Change | H1 2022 | H1 2021 | YoY Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Total revenues | $136,935 | $116,747 | +17.3% | $251,600 | $211,323 | +19.1% | | Operating income | $23,207 | $19,284 | +20.3% | $40,318 | $32,775 | +23.0% | | Net income | $15,984 | $13,227 | +20.8% | $27,638 | $22,204 | +24.5% | | Diluted EPS | $0.41 | $0.34 | +20.6% | $0.71 | $0.57 | +24.6% | [Condensed Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity increased in H1 2022, primarily driven by net income and share-based compensation, partially offset by treasury stock acquisitions - Key drivers of the change in stockholders' equity for the first six months of 2022 were net income of **$27.6 million** and share-based compensation of **$2.9 million**[22](index=22&type=chunk) - The company acquired **$13.6 million** of treasury stock in the first six months of 2022, reducing stockholders' equity[22](index=22&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=11&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operating activities significantly decreased in H1 2022 due to working capital changes, while investing and financing activities primarily involved asset purchases and share repurchases Cash Flow Summary (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | | Net cash provided by operating activities | $4,560 | $70,290 | | Net cash used in investing activities | ($6,867) | ($3,181) | | Net cash used in financing activities | ($15,612) | ($2,348) | | **Net (decrease) increase in cash** | **($17,874)** | **$64,809** | - Financing activities in H1 2022 included **$13.6 million** for repurchases of common stock and **$2.2 million** for repayments of the term loan facility[23](index=23&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=13&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) The notes provide details on business operations, accounting policies, a pending acquisition, lease accounting adoption, debt facilities, and the ongoing stock repurchase program - On March 16, 2022, the Company entered into a definitive agreement to acquire Envios de Valores La Nacional Corp. and LAN Holdings, Corp. for approximately **$50.0 million** in cash, with up to an additional **$3.0 million** in contingent consideration[31](index=31&type=chunk) - The company adopted the new lease accounting standard, ASC 842, on January 1, 2022, resulting in the recording of right-of-use assets and lease liabilities of approximately **$5.6 million**[32](index=32&type=chunk)[46](index=46&type=chunk) - In August 2021, the Board approved a **$40.0 million** stock repurchase program. During the six months ended June 30, 2022, the company purchased **727,901 shares** for **$13.6 million**, with **$20.8 million** remaining available for future repurchases[81](index=81&type=chunk)[82](index=82&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=28&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses strong H1 2022 performance driven by agent network growth and transaction volume, highlighting the pending La Nacional acquisition, increased Adjusted EBITDA, and robust liquidity [Overview](index=28&type=section&id=Overview) The company, a leading money remittance service, reported significant growth in principal amount sent and remittances processed in H1 2022, alongside a pending strategic acquisition - For the six months ended June 30, 2022, the principal amount sent increased by approximately **25.4%** to **$9.7 billion**, and total remittances processed increased by **18.8%** to **21.9 million** compared to H1 2021[98](index=98&type=chunk) - The company's agent network grew by approximately **6.4%** in the first six months of 2022[98](index=98&type=chunk) - The acquisition of La Nacional is expected to contribute approximately **$70.0 million to $80.0 million** a year in revenues with an Adjusted EBITDA margin of **9% to 11%** once fully integrated[103](index=103&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) The company achieved substantial year-over-year growth in revenues, net income, and Adjusted EBITDA for both Q2 and H1 2022, driven by increased transaction volume Q2 2022 vs Q2 2021 Performance (in thousands) | Metric | Q2 2022 | Q2 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $136,935 | $116,747 | +17.3% | | Operating Income | $23,207 | $19,284 | +20.3% | | Net Income | $15,984 | $13,227 | +20.8% | | Adjusted EBITDA | $27,656 | $23,179 | +19.3% | H1 2022 vs H1 2021 Performance (in thousands) | Metric | H1 2022 | H1 2021 | % Change | | :--- | :--- | :--- | :--- | | Total Revenues | $251,600 | $211,323 | +19.1% | | Operating Income | $40,318 | $32,775 | +23.0% | | Net Income | $27,638 | $22,204 | +24.5% | | Adjusted EBITDA | $48,359 | $40,017 | +20.8% | - The increase in wire transfer fees for Q2 2022 was primarily due to an **18.1%** increase in transaction volume, driven by a **10.8%** growth in the agent network from June 2021 to June 2022[129](index=129&type=chunk) [Liquidity and Capital Resources](index=49&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity through credit facilities, actively manages its debt, and continues its share repurchase program, despite a significant decrease in operating cash flow due to working capital changes - The company has an Amended and Restated Credit Agreement providing for a **$150.0 million** revolving credit facility and an **$87.5 million** term loan facility[178](index=178&type=chunk) - As of June 30, 2022, total debt was **$83.1 million**, with no outstanding borrowings on the revolving credit facility and **$220.0 million** of additional borrowing capacity available[179](index=179&type=chunk) - During H1 2022, the company purchased **727,901 shares** for **$13.6 million** under its repurchase program, with **$20.8 million** remaining available for future repurchases[188](index=188&type=chunk) - Net cash from operating activities decreased to **$4.6 million** in H1 2022 from **$70.3 million** in H1 2021, mainly due to a **$72.8 million** change in working capital related to timing of transmittals and prefunding of payers[191](index=191&type=chunk)[193](index=193&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=55&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company manages exposure to foreign currency risk, interest rate risk on variable-rate debt, and credit risk from agent receivables through various strategies - The company has foreign currency exposure from open tom and spot foreign exchange contracts for Mexican pesos and Guatemalan quetzales, amounting to approximately **$39.5 million** at June 30, 2022[203](index=203&type=chunk) - The company is exposed to interest rate risk on its **$83.1 million** of outstanding variable-rate debt. A hypothetical **1%** increase in interest rates would increase annual cash interest expense by approximately **$0.8 million**[209](index=209&type=chunk) - Credit risk exposure includes receivable balances from sending agents. The provision for credit losses was **$1.5 million** for H1 2022 (**0.6%** of total revenues), an increase from **$0.7 million** in H1 2021 (**0.3%** of total revenues)[211](index=211&type=chunk)[212](index=212&type=chunk) [Controls and Procedures](index=57&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal control over financial reporting during the quarter - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2022[216](index=216&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the most recently completed fiscal quarter[217](index=217&type=chunk) PART II - OTHER INFORMATION [Legal Proceedings](index=58&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various claims and litigation in the ordinary course of business but does not believe any of these will have a material adverse effect on its financial condition or results of operations - The company states that it does not expect any legal proceedings, individually or in the aggregate, to have a material and adverse effect on its business, financial condition, and results of operations[219](index=219&type=chunk) [Risk Factors](index=58&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the principal risk factors from those disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2021 - No material changes to the company's principal risks were reported from the risk factors previously disclosed in the 2021 Form 10-K[221](index=221&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=58&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) During Q2 2022, the company repurchased a significant number of shares under its authorized program, with a remaining balance available for future purchases Issuer Purchases of Equity Securities (Q2 2022) | Period | Total Shares Purchased | Shares Purchased as Part of Program | Value Remaining in Program | | :--- | :--- | :--- | :--- | | April 2022 | 446 | — | $30,805,733 | | May 2022 | 288,864 | 218,604 | $26,497,541 | | June 2022 | 284,909 | 284,909 | $20,805,743 | | **Total Q2** | **574,219** | **503,513** | **$20,805,743** | - The stock repurchase program, approved in August 2021, authorizes up to **$40.0 million** in share purchases and has no expiration date[225](index=225&type=chunk) [Defaults Upon Senior Securities](index=58&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) None - The company reported no defaults upon senior securities[223](index=223&type=chunk) [Mine Safety Disclosures](index=58&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) Not applicable - This item is not applicable to the company[224](index=224&type=chunk) [Other Information](index=58&type=section&id=Item%205.%20Other%20Information) None - The company reported no other information for this item[225](index=225&type=chunk) [Exhibits](index=59&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, including Sarbanes-Oxley certifications from the CEO and CFO, and Inline XBRL data files - Exhibits filed include CEO and CFO certifications pursuant to Section 302 and Section 1350 of the Sarbanes-Oxley Act, along with XBRL-related documents[226](index=226&type=chunk)

Financial Data and Key Metrics Changes - The company reported a 17% increase in revenue, reaching $137 million during the second quarter [37] - Net income grew 21% to $16 million, supported by lower depreciation, amortization, and interest expenses [39] - Adjusted EBITDA increased 19% to $28 million, benefiting from revenue growth and strong cost management [40] - The principal amount transferred exceeded $5 billion for the quarter, marking a 22% increase [35] Business Line Data and Key Metrics Changes - The number of unique active customers grew 15%, leading to a record 12 million remittance transactions, an 18% increase year-over-year [33] - Digitally originated transactions surged by 170%, with 26% of transactions sent or received digitally [34] - The average remittance amount increased by 3% to $447 per transaction [35] Market Data and Key Metrics Changes - The company holds a 22% market share in its primary four markets, which account for 75% of all money transferred from the U.S. to Latin America [36] - The acquisition of Nacional will enhance the company's market leadership in five key Latin American and Caribbean markets, representing 83% of U.S. outbound money transfers to the region [28] Company Strategy and Development Direction - The company is focused on expanding its agent network, which grew by 11% year-over-year, as a key to long-term success [14] - An omnichannel strategy is being implemented to cater to customer preferences for sending money, combining retail and digital platforms [12] - The company is investing in digital capabilities, appointing a Chief Digital Officer to enhance its digital product offerings [21] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in sustaining growth, citing a strong retail business and digital expansion as key drivers [30] - The company anticipates continued growth in remittances, even amid economic challenges, due to its diverse customer base in agriculture and construction [92] Other Important Information - The company has a strong liquidity position with $114.6 million in cash and an undrawn revolver of $150 million [41] - A share buyback program has been accelerated, with 504,000 shares repurchased for $10 million in Q2 [42] - Full-year guidance has been raised, expecting revenue between $542 million and $551 million [45] Q&A Session Summary Question: Update on growth runway related to newer agents - Management indicated that about 15% of the agent base consists of new agents, with expectations of significant volume growth as they mature [50][55] Question: Feedback from agents on sources of growth - Agents report that the industry is growing, with some competitors struggling, and the company is capturing market share by focusing on neighborhood locations [58] Question: Update on sales force and agent pipeline - The sales force has increased from low 40s to mid-50s, with expectations for continued growth in new retail locations [70] Question: Impact of inflation on average send amount - Management noted that while inflation is a concern, the customer base has benefited from wage growth, and average remittance amounts are still increasing [72][74] Question: Near-term priorities with the addition of the Chief Digital Officer - The focus will be on building the online business profitably and expanding card products, particularly targeting the Hispanic community [79] Question: Recession resistance of the business model - Management highlighted the resilience of the business during past recessions, attributing stability to a diverse customer base in agriculture and construction [90][92]

Financial Performance Highlights - Transactions increased to 11.9 million, up by 18.1% compared to Q2 2021[7] - Revenue reached $136.9 million, showing a 17.3% increase compared to Q2 2021[7] - Net income increased to $16.0 million, up by 20.8% compared to Q2 2021[7] - Adjusted EBITDA reached $27.7 million, reflecting a 19.3% increase compared to Q2 2021[7] - Net free cash generated was $17.3 million in Q2 2022[31] Growth Metrics - Active customers reached 3.0 million by the end of Q2 2022[16] - Principal sent totaled $5,327.1 million in Q2 2022[21] - Digital transactions accounted for 26.3% of total transactions in Q2 2022[19] Market Position - The company has more than 20% market share in the top 5 LACA markets for all remittance dollars from the US[15] - Tier I and Tier II market share was 21.0% in Q2 2022[22] Future Outlook - The company projects revenue of $542 million - $551 million, up 18% - 20% for 2022[33] - The company projects net income of $60 million - $61 million, up 28% - 30% for 2022[33] - The company projects Adjusted EBITDA of $104 million - $106 million, up 20% - 22% for 2022[33]

International Money Express, Inc. (NASDAQ:IMXI) Q1 2022 Earnings Conference Call May 4, 2022 9:00 AM ET Company Participants Mike Gallentine - Vice President, Investor Relations Bob Lisy - Chairman, Chief Executive Officer & President Andras Bende - Chief Financial Officer Randy Nilsen - Chief Revenue Officer Conference Call Participants David Scharf - JMP Securities Mark Palmer - BTIG Michael Grondahl - Northland Securities Alex Markgraff - KeyBanc Capital Markets Tim Chiodo - Credit Suisse Operator Greeti ...

PART I - FINANCIAL INFORMATION This section provides the unaudited financial statements and management's discussion of financial condition and results of operations [Item 1. Financial Statements (Unaudited)](index=5&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section presents the unaudited condensed consolidated financial statements for Q1 2022, highlighting a 21.2% revenue increase to $114.7 million and a 29.8% net income increase to $11.7 million, along with detailed accounting notes [Condensed Consolidated Financial Statements](index=5&type=section&id=Condensed%20Consolidated%20Financial%20Statements) The company's financial position strengthened as of March 31, 2022, with total assets increasing to $349.7 million, driving net income up to $11.7 million, and improving cash flow from operations to a $33.3 million inflow | Financial Metric | March 31, 2022 (in thousands) | December 31, 2021 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Total current assets | $265,220 | $263,545 | | Total assets | $349,688 | $340,536 | | **Liabilities & Equity** | | | | Total current liabilities | $113,732 | $116,859 | | Total liabilities | $196,954 | $197,496 | | Total stockholders' equity | $152,734 | $143,040 | | Income Statement Item | Three Months Ended Mar 31, 2022 (in thousands) | Three Months Ended Mar 31, 2021 (in thousands) | | :--- | :--- | :--- | | Total revenues | $114,666 | $94,577 | | Operating income | $17,111 | $13,490 | | Net income | $11,654 | $8,977 | | Earnings per share (Basic and Diluted) | $0.30 | $0.23 | | Cash Flow Activity | Three Months Ended Mar 31, 2022 (in thousands) | Three Months Ended Mar 31, 2021 (in thousands) | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $33,284 | $(32,406) | | Net cash used in investing activities | $(4,316) | $(1,930) | | Net cash (used in) provided by financing activities | $(4,434) | $14,519 | | Net increase (decrease) in cash | $24,763 | $(19,820) | [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) These notes detail accounting policies, the company's money transmission business, the acquisition of La Nacional, adoption of ASC 842, debt structure, and a $40 million stock repurchase program - The company operates as a money transmitter from the U.S. and Canada to Latin America, Africa, and Asia through a network of agents and company-operated stores[22](index=22&type=chunk) - On March 16, 2022, the company entered into a definitive agreement to acquire Envios de Valores La Nacional Corp. and LAN Holdings, Corp., with the transaction expected to close in Q3 2022[28](index=28&type=chunk) - The company adopted the new lease accounting standard, ASC 842, on January 1, 2022, resulting in the recognition of approximately **$5.6 million** in right-of-use assets and lease liabilities[29](index=29&type=chunk)[44](index=44&type=chunk) - In August 2021, the Board approved a **$40.0 million** stock repurchase program, under which the company purchased **224,388 shares** for an aggregate price of **$3.6 million** during Q1 2022[80](index=80&type=chunk)[81](index=81&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=25&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2022 financial performance, highlighting strong growth in remittances and principal amount sent, along with analysis of revenue, expenses, non-GAAP measures, and liquidity [Overview and Key Factors](index=25&type=section&id=Overview%20and%20Key%20Factors) This section provides an overview of the company's money remittance business, key Q1 2022 performance metrics, the pending La Nacional acquisition, and significant influencing factors - The company is a leading omnichannel money remittance service primarily focused on the U.S. to Latin America and the Caribbean (LAC) corridor, with expansion to Africa and Asia[94](index=94&type=chunk) | Performance Metric | Q1 2022 | YoY Change | | :--- | :--- | :--- | | Principal Amount Sent | $4.4 billion | +29.6% | | Total Remittances Processed | 10.0 million | +19.7% | | Agent Network Growth (in Q1) | N/A | +2.1% | - On March 16, 2022, the company agreed to acquire Envios de Valores La Nacional Corp. and LAN Holdings, Corp., expanding its presence in the U.S., Canada, and Europe[101](index=101&type=chunk) [Results of Operations](index=33&type=section&id=Results%20of%20Operations) For the three months ended March 31, 2022, total revenues increased by 21.2% to $114.7 million, driven by a 21.1% increase in wire transfer fees and a 20.1% increase in foreign exchange gains, leading to a 29.8% rise in net income - Total revenues for Q1 2022 increased by **21.2%** year-over-year, from **$94.6 million** to **$114.7 million**[126](index=126&type=chunk) - Wire transfer and money order fees, net, grew by **21.1%** to **$98.0 million**, primarily due to a **19.7%** increase in transaction volume[127](index=127&type=chunk) - Net income for Q1 2022 was **$11.7 million**, a **29.8%** increase from **$9.0 million** in Q1 2021[135](index=135&type=chunk) [Non-GAAP Financial Measures](index=36&type=section&id=Non-GAAP%20Financial%20Measures) The company uses Adjusted Net Income, Adjusted Earnings per Share, and Adjusted EBITDA to evaluate performance, with Adjusted EBITDA growing 23.0% to $20.7 million in Q1 2022 | Reconciliation to Adjusted Net Income (in thousands) | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net Income | $11,654 | $8,977 | | Share-based compensation | $1,268 | $896 | | Amortization of intangibles | $972 | $1,262 | | Other charges and expenses | $141 | $117 | | Income tax benefit related to adjustments | $(667) | $(619) | | **Adjusted Net Income** | **$13,368** | **$10,633** | | Reconciliation to Adjusted EBITDA (in thousands) | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Net Income | $11,654 | $8,977 | | Interest expense | $952 | $1,339 | | Income tax provision | $4,505 | $3,174 | | Depreciation and amortization | $2,183 | $2,335 | | **EBITDA** | **$19,294** | **$15,825** | | Share-based compensation | $1,268 | $896 | | Other charges and expenses | $141 | $117 | | **Adjusted EBITDA** | **$20,703** | **$16,838** | [Liquidity and Capital Resources](index=41&type=section&id=Liquidity%20and%20Capital%20Resources) The company's primary liquidity sources are cash from operations and its revolving credit facility, with total debt at $84.2 million and significant available borrowing capacity, supported by a $33.3 million net cash inflow from operating activities in Q1 2022 - The company's Amended and Restated Credit Agreement provides for a **$150.0 million** revolving credit facility and an **$87.5 million** term loan facility[157](index=157&type=chunk) - As of March 31, 2022, total debt was **$84.2 million**, with an additional **$220.0 million** available for borrowing[158](index=158&type=chunk) - Under its stock repurchase program, the company purchased **224,388 shares** for **$3.6 million** in Q1 2022, with **$30.8 million** remaining available for future repurchases[167](index=167&type=chunk) - Net cash provided by operating activities was **$33.3 million** for Q1 2022, compared to net cash used of **$32.4 million** in Q1 2021, an increase of **$65.7 million**[170](index=170&type=chunk) [Item 3. Quantitative and Qualitative Disclosures about Market Risk](index=47&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company is exposed to market risks, primarily from foreign currency fluctuations, interest rate changes on its variable-rate debt, and credit risk related to receivables and uninsured cash balances - The company faces foreign currency risk from transactions settled in local currencies, primarily Mexican pesos and Guatemalan quetzales, with open spot foreign exchange contracts amounting to approximately **$5.4 million** as of March 31, 2022[182](index=182&type=chunk) - The company is exposed to interest rate risk on its **$84.2 million** of variable-rate debt, where a hypothetical **1%** increase in interest rates would raise annual cash interest expense by approximately **$0.8 million**[188](index=188&type=chunk) - Credit risk exposure stems from receivable balances from sending agents and uninsured cash balances in foreign banks, with the provision for credit losses being **$0.4 million** for Q1 2022[189](index=189&type=chunk)[190](index=190&type=chunk)[191](index=191&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of March 31, 2022, with no material changes in internal control over financial reporting during the quarter - The Chief Executive Officer and Chief Financial Officer concluded that the company's disclosure controls and procedures were effective as of March 31, 2022[195](index=195&type=chunk) - There were no changes in internal control over financial reporting during the quarter that have materially affected, or are reasonably likely to materially affect, internal controls[196](index=196&type=chunk) PART II - OTHER INFORMATION This section covers legal proceedings, risk factors, equity security sales, and other required disclosures [Item 1. Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) The company is subject to various legal claims in the ordinary course of business but does not expect them to have a material adverse effect on its financial condition or results of operations - The company is subject to various legal claims in the ordinary course of business but does not expect them to have a material and adverse effect on its business or financial condition[198](index=198&type=chunk) [Item 1A. Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the principal risk factors affecting the company from those disclosed in its Annual Report on Form 10-K for the year ended December 31, 2021 - No material changes have occurred to the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021[200](index=200&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section provides details on the company's common stock repurchases during the first quarter of 2022, under a publicly announced program authorizing up to $40.0 million in repurchases | Period (2022) | Total Shares Purchased | Average Price Paid per Share | Shares Purchased as Part of Program | | :--- | :--- | :--- | :--- | | January | 93,013 | $16.13 | 93,013 | | February | 89,949 | $15.88 | 89,739 | | March | 58,853 | $16.90 | 41,636 | | **Total** | **241,815** | | **224,388** | - The stock repurchase program, approved in August 2021, authorizes the company to purchase up to **$40.0 million** of its outstanding common stock and has no expiration date[204](index=204&type=chunk) [Other Items (3, 4, 5, 6)](index=50&type=section&id=Other%20Items%20(3,%204,%205,%206)) The report indicates no defaults upon senior securities (Item 3), mine safety disclosures are not applicable (Item 4), and no other information to report (Item 5), with Item 6 listing the exhibits filed with the Form 10-Q - Item 3 (Defaults Upon Senior Securities), Item 4 (Mine Safety Disclosures), and Item 5 (Other Information) are reported as 'None' or 'Not applicable'[202](index=202&type=chunk)[203](index=203&type=chunk)[204](index=204&type=chunk) - Item 6 lists the exhibits filed with the report, including Sarbanes-Oxley certifications and Inline XBRL documents[205](index=205&type=chunk)

(Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended: December 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from ____________ to Commission File No. 001-37986 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K INTERNATIONAL MONEY EXPRESS, INC. (Exact name of registrant as specified in its charter) Delaware 47-4219082 (State ...

Financial Data and Key Metrics Changes - Revenue for Q4 2021 was $127 million, a 28% increase compared to Q4 2020; full year revenue reached $459 million, up 29% year-over-year [8][31] - Net income for Q4 2021 was $13 million, a 37% increase; full year net income was $47 million, a 39% increase [8][31] - Adjusted net income for Q4 2021 was $16 million, up 36%; for the full year, adjusted net income was $57 million, a 36% increase [8][31] - Adjusted EBITDA for Q4 2021 was $24 million, a 27% increase; for the full year, adjusted EBITDA was $87 million, also a 27% increase [8][31] Business Line Data and Key Metrics Changes - Digital transactions initiated increased by 96% year-over-year, with 24% of transactions processed digitally [19][27] - Transactions deposited directly into bank accounts increased by 44% compared to the prior year [20] - The card product category, including Card Direct and Payroll MasterCard, is expected to contribute significantly to future revenue and profitability [20][36] Market Data and Key Metrics Changes - Market share in core markets (Mexico, Guatemala, El Salvador, and Honduras) increased to 21% [17] - Emerging markets such as the Dominican Republic, Ecuador, and Nicaragua saw a 32% increase in transactions compared to Q4 2020 [18] Company Strategy and Development Direction - The company focuses on a high-quality omnichannel customer strategy, utilizing proprietary software to enhance service delivery [10][22] - Investments in IT enhancements and the launch of the new Intermex Direct agency software are aimed at improving agent productivity and customer service [12][36] - The company plans to continue expanding its agent base, particularly in underrepresented markets, to drive growth [28][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to grow market share and revenue in 2022, expecting double-digit increases in key financial metrics [22][36] - The company anticipates that the growth in remittance sizes may not be as strong as in previous years, but any increase would serve as a tailwind [41] - Management highlighted the importance of maintaining a strong compliance culture and investing in technology to support growth [12][36] Other Important Information - The company generated $47.6 million in net free cash in 2021, a 26% increase from 2020, converting 55% of adjusted EBITDA to net free cash [33] - Intermex repurchased approximately 271,000 shares for $4.4 million in Q4 2021, totaling 342,000 shares for $5.6 million for the year [34][35] Q&A Session Summary Question: Trends in average remittance size and guidance for 2022 - Management expects minimal growth in remittance sizes for 2022, having tapered back expectations from the previous year [41] Question: Update on Card Direct initiative and sales efforts - A team of eight salespeople is actively working with employers, with around 35 employers currently engaged [42] Question: Competitive dynamics in the remittance space - Management noted that larger companies have vacated the retail market, allowing Intermex to gain market share through value-added services [46][48] Question: M&A opportunities and cash position - Management is optimistic about potential M&A activity in 2022, seeing more opportunities as market conditions change [54] Question: Customer growth expectations for 2022 - Management anticipates a conservative approach to customer growth, expecting it to be lower than the previous year due to high growth rates in 2021 [61] Question: Update on agent growth and backlog - Management clarified that they do not have a backlog of agent requests but are actively seeking out agents in specific markets [68] Question: Insights on Mexico and Guatemala markets - Management sees continued strong performance in these markets, with opportunities for growth particularly in Western states [70] Question: Growth algorithm for 2022 - The growth will primarily come from retail, with new agent locations and maturing existing locations contributing significantly [74][76]

Fourth Quarter 2021 Earnings Presentation March 7, 2022 Safe Harbor Statement / Non-GAAP Financial Measures This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, as amended, which reflect our current views concerning certain events that are not historical facts but could affect our future performance, including but without limitation, statements regarding our plans, objectives, financial performance, business strategies, projecte ...

International Money Express, Inc. (NASDAQ:IMXI) Q3 2021 Earnings Conference Call November 3, 2021 9:00 AM ET Company Participants Michael Gallentine – VP of IR Robert Lisy – Chairman, President & CEO Andras Q. Bende – CFO Randall D. Nilsen – Chief Revenue Officer Conference Call Participants David Scharf - JMP Securities Mark Palmer - BTIG Timothy Chiodo - Credit Suisse Alexander Markgraff - KeyBanc Capital Markets Michael Grondahl - Northland Capital Operator Greetings. Welcome to the International Money E ...