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Western Union (WU) Q4 Earnings and Revenues Beat Estimates
Zacks Investment Research· 2024-02-07 00:20
Western Union (WU) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.36 per share. This compares to earnings of $0.32 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 2.78%. A quarter ago, it was expected that this money transfer company would post earnings of $0.38 per share when it actually produced earnings of $0.43, delivering a surprise of 13.16%.Over the last four quarters, th ...
Can Lower Transactions Affect Western Union's (WU) Q4 Earnings?
Zacks Investment Research· 2024-02-01 18:06
The Western Union Company (WU) is set to report its fourth-quarter 2023 results on Feb 6, after the closing bell.What Do the Estimates Say?The Zacks Consensus Estimate for fourth-quarter earnings per share of 36 cents suggests a 12.5% increase from the prior-year figure of 32 cents. The consensus mark remained stable over the past week. However, the consensus estimate for fourth-quarter revenues of $1 billion indicates an 8% decrease from the year-ago reported figure.Western Union beat the consensus estimat ...
Western Union's Return To Sustainable Growth Is A Significant Catalyst For Gains In 2024 And Ahead
Seeking Alpha· 2024-01-15 12:30
wdstock The Western Union Company (NYSE:WU) underperformed for the third year in a row in 2023 due to investors' concerns over its growth potential in a fintech market. However, I believe it is the best time to initiate a position in a prominent company in the fast-growing transaction and processing sector. In particular, the company's penetration into skyrocketing cross-border payments strengthens its fundamentals. Moreover, Western Union's aggressive growth strategies would enable it to capitalize on robu ...
Western Union(WU) - 2023 Q3 - Earnings Call Transcript
2023-10-25 23:51
The Western Union Company (NYSE:WU) Q3 2023 Earnings Conference Call October 25, 2023 4:30 PM ET Company Participants Tom Hadley - Head, IR Devin McGranahan - CEO Matt Cagwin - CFO Conference Call Participants Tien-Tsin Huang - JPMorgan Jason Kupferberg - Bank of America Will Nance - Goldman Sachs Andrew Schmidt - Citi Timothy Chiodo - UBS Ramsey El Assal - Barclays Bryan Keane - Deutsche Bank James Fawcett - Morgan Stanley Cristopher Kennedy - William Blair Operator Good day, and welcome to the Western Uni ...
Western Union(WU) - 2023 Q3 - Earnings Call Presentation
2023-10-25 20:15
Third Quarter 2023 Financial Results ...
Western Union(WU) - 2023 Q3 - Quarterly Report
2023-10-24 16:00
[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section presents the unaudited condensed consolidated financial statements and management's discussion and analysis [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) This section provides the unaudited condensed consolidated financial statements and their related notes [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) This statement presents the company's revenues, operating income, net income, and diluted EPS **Revenues:** | Period | 2023 (Millions) | 2022 (Millions) | Change (%) | | :---------------- | :-------------- | :-------------- | :--------- | | Three Months Ended Sep 30 | $1,097.8 | $1,089.6 | 0.75% | | Nine Months Ended Sep 30 | $3,304.7 | $3,383.6 | -2.33% | **Net Income:** | Period | 2023 (Millions) | 2022 (Millions) | Change (%) | | :---------------- | :-------------- | :-------------- | :--------- | | Three Months Ended Sep 30 | $171.0 | $173.9 | -1.67% | | Nine Months Ended Sep 30 | $499.0 | $661.2 | -24.53% | **Diluted EPS:** | Period | 2023 | 2022 | Change (%) | | :---------------- | :--- | :--- | :--------- | | Three Months Ended Sep 30 | $0.46 | $0.45 | 2.22% | | Nine Months Ended Sep 30 | $1.33 | $1.70 | -21.67% | **Operating Income:** | Period | 2023 (Millions) | 2022 (Millions) | Change (%) | | :---------------- | :-------------- | :-------------- | :--------- | | Three Months Ended Sep 30 | $210.9 | $231.8 | -9.02% | | Nine Months Ended Sep 30 | $658.2 | $733.3 | -10.24% | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) This statement details the company's net income and other comprehensive income components **Comprehensive Income:** | Period | 2023 (Millions) | 2022 (Millions) | Change (%) | | :---------------- | :-------------- | :-------------- | :--------- | | Three Months Ended Sep 30 | $167.3 | $169.5 | -1.30% | | Nine Months Ended Sep 30 | $482.8 | $592.1 | -18.46% | **Unrealized Losses on Investment Securities:** | Period | 2023 (Millions) | 2022 (Millions) | | :---------------- | :-------------- | :-------------- | | Three Months Ended Sep 30 | $(13.7) | $(30.0) | | Nine Months Ended Sep 30 | $(5.1) | $(105.3) | **Unrealized Gains/(Losses) on Hedging Activities:** | Period | 2023 (Millions) | 2022 (Millions) | | :---------------- | :-------------- | :-------------- | | Three Months Ended Sep 30 | $10.0 | $25.6 | | Nine Months Ended Sep 30 | $(11.1) | $54.0 | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) This statement presents the company's assets, liabilities, and stockholders' equity at specific dates **Total Assets:** | Date | Amount (Millions) | | :---------------- | :-------------- | | Sep 30, 2023 | $7,913.7 | | Dec 31, 2022 | $8,496.3 | **Total Liabilities:** | Date | Amount (Millions) | | :---------------- | :-------------- | | Sep 30, 2023 | $7,300.1 | | Dec 31, 2022 | $8,018.5 | **Total Stockholders' Equity:** | Date | Amount (Millions) | | :---------------- | :-------------- | | Sep 30, 2023 | $613.6 | | Dec 31, 2022 | $477.8 | **Assets Held for Sale:** | Date | Amount (Millions) | | :---------------- | :-------------- | | Sep 30, 2023 | $0 | | Dec 31, 2022 | $261.6 | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes the cash inflows and outflows from operating, investing, and financing activities **Net Cash Provided by Operating Activities (Nine Months Ended Sep 30):** | Year | Amount (Millions) | | :--- | :-------------- | | 2023 | $518.6 | | 2022 | $522.4 | **Net Cash (Used in)/Provided by Investing Activities (Nine Months Ended Sep 30):** | Year | Amount (Millions) | | :--- | :-------------- | | 2023 | $(76.5) | | 2022 | $366.7 | **Net Cash Used in Financing Activities (Nine Months Ended Sep 30):** | Year | Amount (Millions) | | :--- | :-------------- | | 2023 | $(835.0) | | 2022 | $(890.3) | **Cash and Cash Equivalents, including settlement, and restricted cash at end of period:** | Date | Amount (Millions) | | :---------------- | :-------------- | | Sep 30, 2023 | $1,647.8 | | Sep 30, 2022 | $2,109.7 | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) This statement outlines changes in the company's equity, including net income, dividends, and share repurchases **Total Stockholders' Equity:** | Date | Amount (Millions) | | :---------------- | :-------------- | | Sep 30, 2023 | $613.6 | | Dec 31, 2022 | $477.8 | - Key changes in stockholders' equity for the nine months ended September 30, 2023, include net income of **$499.0 million**, stock-based compensation of **$27.2 million**, common stock dividends declared of **$(266.5) million**, share repurchases of **$(108.0) million**, and other comprehensive loss of **$(16.2) million**[21](index=21&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) This section provides detailed explanatory notes to the condensed consolidated financial statements [Note 1. Business and Basis of Presentation](index=10&type=section&id=Note%201.%20Business%20and%20Basis%20of%20Presentation) This note outlines the company's business, operating segments, and the basis of financial statement presentation - The Western Union Company is a leader in global money movement and payment services, providing services through an agent network in over **200 countries and territories**, and through Branded Digital channels[25](index=25&type=chunk) - The company's operating segments include Consumer-to-Consumer (money transfers) and Business Solutions, which was fully divested on July 1, 2023[29](index=29&type=chunk) - As of December 31, 2022, restricted net assets associated with asset limitations and minimum capital requirements totaled approximately **$710 million**[27](index=27&type=chunk) [Note 2. Revenue](index=11&type=section&id=Note%202.%20Revenue) This note details the company's revenue recognition policies and disaggregated revenue information - Revenues are primarily derived from consumer money transfers, with amounts varying based on channel, locations, principal, and foreign exchange rates[36](index=36&type=chunk) **Revenue by Product Type (Three Months Ended Sep 30):** | Product Type | 2023 (Millions) | 2022 (Millions) | | :---------------- | :-------------- | :-------------- | | Consumer Money Transfers | $990.8 | $945.0 | | Foreign Exchange and Payment Services | $0 | $26.0 | | Other Services | $62.1 | $64.0 | | Other revenues | $44.9 | $54.6 | | **Total Revenues** | **$1,097.8** | **$1,089.6** | **Revenue by Product Type (Nine Months Ended Sep 30):** | Product Type | 2023 (Millions) | 2022 (Millions) | | :---------------- | :-------------- | :-------------- | | Consumer Money Transfers | $2,933.8 | $2,913.6 | | Foreign Exchange and Payment Services | $13.0 | $111.7 | | Other Services | $195.2 | $193.8 | | Other revenues | $162.7 | $164.5 | | **Total Revenues** | **$3,304.7** | **$3,383.6** | [Note 3. Earnings Per Share](index=13&type=section&id=Note%203.%20Earnings%20Per%20Share) This note explains the calculation of basic and diluted earnings per share **Diluted EPS:** | Period | 2023 | 2022 | | :---------------- | :--- | :--- | | Three Months Ended Sep 30 | $0.46 | $0.45 | | Nine Months Ended Sep 30 | $1.33 | $1.70 | - Shares excluded from diluted EPS calculation due to anti-dilutive effect were **9.5 million** (Q3 2023) and **8.1 million** (Q3 2022) for the three months, and **9.6 million** (YTD 2023) and **8.0 million** (YTD 2022) for the nine months[46](index=46&type=chunk) [Note 4. Assets Held for Sale and Related Divestiture](index=13&type=section&id=Note%204.%20Assets%20Held%20for%20Sale%20and%20Related%20Divestiture) This note describes assets classified as held for sale and the details of the Business Solutions divestiture - The final closing of the Business Solutions divestiture occurred on July 1, 2023, resulting in a gain of **$18.0 million**[50](index=50&type=chunk) - The total cash consideration for the Business Solutions sale was **$910.0 million**[48](index=48&type=chunk) **Business Solutions Revenues (Nine Months Ended Sep 30):** | Year | Amount (Millions) | | :--- | :-------------- | | 2023 | $29.7 | | 2022 | $167.4 | **Assets Held for Sale (December 31, 2022):** | Category | Amount (Millions) | | :---------------- | :-------------- | | Total assets | $261.6 | | Total liabilities | $182.5 | [Note 5. Fair Value Measurements](index=15&type=section&id=Note%205.%20Fair%20Value%20Measurements) This note provides information on fair value measurements of financial assets and liabilities **Total Assets Measured at Fair Value (Sep 30, 2023):** | Level | Amount (Millions) | | :---- | :-------------- | | Level 1 | $6.4 | | Level 2 | $1,413.4 | | **Total** | **$1,419.8** | **Total Liabilities Measured at Fair Value (Sep 30, 2023):** | Level | Amount (Millions) | | :---- | :-------------- | | Level 2 | $5.5 | | **Total** | **$5.5** | - The carrying value of borrowings was **$2,309.1 million** and fair value was **$2,132.0 million** as of September 30, 2023[59](index=59&type=chunk) - Reverse repurchase agreements, with a carrying value of **$100.0 million** as of December 31, 2022, were fully redeemed by September 30, 2023[60](index=60&type=chunk) [Note 6. Commitments and Contingencies](index=16&type=section&id=Note%206.%20Commitments%20and%20Contingencies) This note discloses the company's significant commitments and potential contingent liabilities - Outstanding letters of credit and bank guarantees totaled approximately **$160 million** as of September 30, 2023[61](index=61&type=chunk) - Reasonably possible potential litigation losses in excess of recorded liabilities were approximately **$30 million** as of September 30, 2023[63](index=63&type=chunk) - The company is involved in several legal matters, including a class action lawsuit in Argentina, a class action complaint in the U.S. regarding financial privacy, and judgments in the Democratic Republic of Congo totaling **€19.5 million ($20.4 million as of September 30, 2023)**[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) [Note 7. Related Party Transactions](index=18&type=section&id=Note%207.%20Related%20Party%20Transactions) This note details transactions and balances with related parties **Commission Expense to Related Party Agents:** | Period | 2023 (Millions) | 2022 (Millions) | | :---------------- | :-------------- | :-------------- | | Three Months Ended Sep 30 | $11.5 | $12.2 | | Nine Months Ended Sep 30 | $33.8 | $36.5 | [Note 8. Settlement Assets and Obligations](index=18&type=section&id=Note%208.%20Settlement%20Assets%20and%20Obligations) This note describes the company's settlement assets and corresponding obligations **Total Settlement Assets and Obligations:** | Date | Amount (Millions) | | :---------------- | :-------------- | | Sep 30, 2023 | $3,480.8 | | Dec 31, 2022 | $3,561.7 | **Allowance for Credit Losses on Receivables from Agents and Others:** | Date | Amount (Millions) | | :---------------- | :-------------- | | Sep 30, 2023 | $20.5 | | Jan 1, 2023 | $11.4 | - Investment securities, primarily highly-rated state and municipal debt securities, had a fair value of **$1,383.3 million** as of September 30, 2023, with net unrealized losses of **$(90.3) million**, mainly due to rising U.S. Treasury interest rates[89](index=89&type=chunk)[92](index=92&type=chunk) **Contractual Maturities of Available-for-Sale Securities (Sep 30, 2023):** | Maturity | Fair Value (Millions) | | :---------------- | :-------------------- | | Due within 1 year | $106.8 | | Due after 1 year through 5 years | $631.9 | | Due after 5 years through 10 years | $397.0 | | Due after 10 years | $247.6 | | **Total** | **$1,383.3** | [Note 9. Stockholders' Equity](index=23&type=section&id=Note%209.%20Stockholders'%20Equity) This note provides details on the components and changes in stockholders' equity **Accumulated Other Comprehensive Loss (AOCL):** | Date | Amount (Millions) | | :---------------- | :-------------- | | Sep 30, 2023 | $(184.1) | | Dec 31, 2022 | $(167.9) | **Total Reclassifications from AOCL to Net Income (Nine Months Ended Sep 30):** | Year | Amount (Millions) | | :--- | :-------------- | | 2023 | $17.4 | | 2022 | $43.0 | - Cash dividends declared for the first three quarters of 2023 totaled **$263.3 million** (**$0.235** per common share quarterly)[100](index=100&type=chunk)[220](index=220&type=chunk) - During the nine months ended September 30, 2023, **7.8 million shares** were repurchased for **$100.0 million**, with **$548.2 million** remaining under the current authorization[101](index=101&type=chunk)[219](index=219&type=chunk) [Note 10. Derivatives](index=25&type=section&id=Note%2010.%20Derivatives) This note explains the company's use of derivative financial instruments for risk management - The company uses derivatives, primarily foreign currency forward contracts, to minimize exposures to foreign currency exchange rates and interest rates[104](index=104&type=chunk) - Foreign currency forward contracts with maturities up to **36 months** are used as cash flow hedges for forecasted revenues, while short-duration contracts (days to one month) are used for settlement assets and obligations, not designated as accounting hedges[106](index=106&type=chunk)[107](index=107&type=chunk) - Business Solutions derivative operations ceased with the final divestiture on July 1, 2023[111](index=111&type=chunk)[114](index=114&type=chunk) **Fair Value of Derivatives (Millions):** | Category | Sep 30, 2023 | Dec 31, 2022 | | :---------------- | :----------- | :----------- | | Derivative Assets | $30.1 | $126.1 | | Derivative Liabilities | $5.5 | $98.9 | - An accumulated other comprehensive pre-tax gain of **$12.5 million** related to foreign currency forward contracts is expected to be reclassified into Revenues within the next **12 months**[129](index=129&type=chunk) [Note 11. Borrowings](index=32&type=section&id=Note%2011.%20Borrowings) This note details the company's outstanding debt, including maturities and interest rates **Total Borrowings at Carrying Value:** | Date | Amount (Millions) | | :---------------- | :-------------- | | Sep 30, 2023 | $2,309.1 | | Dec 31, 2022 | $2,616.8 | - The company repaid **$300.0 million** of **4.250%** unsecured notes due in June 2023[133](index=133&type=chunk) - As of September 30, 2023, the weighted-average effective rate on total borrowings was approximately **3.9%**[133](index=133&type=chunk) **Maturities of Notes at Par Value (Sep 30, 2023):** | Maturity | Amount (Millions) | | :---------------- | :---------------- | | Due after 1 year through 2 years | $500.0 | | Due after 2 years through 3 years | $600.0 | | Due after 5 years | $1,050.0 | | **Total** | **$2,150.0** | [Note 12. Income Taxes](index=32&type=section&id=Note%2012.%20Income%20Taxes) This note details income tax expense, effective tax rates, and unrecognized tax benefits **Effective Tax Rates:** | Period | 2023 | 2022 | | :---------------- | :--- | :--- | | Three Months Ended Sep 30 | 16.3% | 10.2% | | Nine Months Ended Sep 30 | 17.1% | 16.5% | - The total amount of unrecognized tax benefits as of September 30, 2023, was **$301.5 million**, including interest and penalties[136](index=136&type=chunk) - The company is contesting unagreed adjustments at the IRS Appeals level for its 2017 and 2018 consolidated federal income tax returns[138](index=138&type=chunk) [Note 13. Stock-Based Compensation Plans](index=33&type=section&id=Note%2013.%20Stock-Based%20Compensation%20Plans) This note describes the company's stock-based compensation plans and related expenses **Stock-Based Compensation Expense (Nine Months Ended Sep 30):** | Year | Amount (Millions) | | :--- | :-------------- | | 2023 | $27.2 | | 2022 | $32.6 | - During the nine months ended September 30, 2023, the company granted **1.0 million options** and **4.4 million performance-based restricted stock units and restricted stock units**[140](index=140&type=chunk) - As of September 30, 2023, **7.1 million options** were outstanding (**4.2 million** exercisable) and **7.7 million performance-based restricted stock units and restricted stock units** were outstanding[140](index=140&type=chunk) [Note 14. Segments](index=33&type=section&id=Note%2014.%20Segments) This note presents financial information by the company's operating segments - The company's business is classified into two segments: Consumer-to-Consumer and Business Solutions, with the latter fully divested on July 1, 2023[141](index=141&type=chunk)[143](index=143&type=chunk) **Segment Revenues (Three Months Ended Sep 30):** | Segment | 2023 (Millions) | 2022 (Millions) | Change (%) | | :---------------- | :-------------- | :-------------- | :--------- | | Consumer-to-Consumer | $1,019.0 | $982.4 | 3.72% | | Business Solutions | $0 | $42.6 | -100% | | Other | $78.8 | $64.6 | 22.00% | | **Total** | **$1,097.8** | **$1,089.6** | **0.75%** | **Segment Revenues (Nine Months Ended Sep 30):** | Segment | 2023 (Millions) | 2022 (Millions) | Change (%) | | :---------------- | :-------------- | :-------------- | :--------- | | Consumer-to-Consumer | $3,029.5 | $3,008.3 | 0.70% | | Business Solutions | $29.7 | $167.4 | -82.26% | | Other | $245.5 | $207.9 | 18.09% | | **Total** | **$3,304.7** | **$3,383.6** | **-2.33%** | - Operating expense redeployment program costs of **$4.1 million** (three months) and **$19.5 million** (nine months) ended September 30, 2023, are excluded from segment operating income[149](index=149&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=34&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section provides management's perspective on financial condition, results of operations, and liquidity [Overview](index=35&type=section&id=Overview) This overview summarizes the company's business, strategic focus, and key operational highlights - The Western Union Company is a leading provider of money movement and payment services, operating primarily through its Consumer-to-Consumer segment[155](index=155&type=chunk) - The Business Solutions segment was fully divested on July 1, 2023, and its revenues and operating expenses are no longer reported[156](index=156&type=chunk) - The company faces various risks, including changes in economic conditions, competition, geopolitical tensions, regulatory compliance, and cybersecurity[153](index=153&type=chunk)[154](index=154&type=chunk) [Results of Operations](index=37&type=section&id=Results%20of%20Operations) This section analyzes consolidated financial performance, including revenues, expenses, and net income **Consolidated Revenues:** | Period | 2023 (Millions) | 2022 (Millions) | % Change | | :---------------- | :-------------- | :-------------- | :--------- | | Three Months Ended Sep 30 | $1,097.8 | $1,089.6 | 1% | | Nine Months Ended Sep 30 | $3,304.7 | $3,383.6 | (2)% | **Operating Income:** | Period | 2023 (Millions) | 2022 (Millions) | % Change | | :---------------- | :-------------- | :-------------- | :--------- | | Three Months Ended Sep 30 | $210.9 | $231.8 | (9)% | | Nine Months Ended Sep 30 | $658.2 | $733.3 | (10)% | **Net Income:** | Period | 2023 (Millions) | 2022 (Millions) | % Change | | :---------------- | :-------------- | :-------------- | :--------- | | Three Months Ended Sep 30 | $171.0 | $173.9 | (2)% | | Nine Months Ended Sep 30 | $499.0 | $661.2 | (25)% | **Diluted EPS:** | Period | 2023 | 2022 | % Change | | :---------------- | :--- | :--- | :--------- | | Three Months Ended Sep 30 | $0.46 | $0.45 | 2% | | Nine Months Ended Sep 30 | $1.33 | $1.70 | (22)% | [Revenues Overview](index=38&type=section&id=Revenues%20Overview) This overview details the company's revenue performance, including impacts from foreign currency and divestitures **Consolidated Revenues (GAAP):** | Period | 2023 (Millions) | 2022 (Millions) | % Change | | :---------------- | :-------------- | :-------------- | :--------- | | Three Months Ended Sep 30 | $1,097.8 | $1,089.6 | 1% | | Nine Months Ended Sep 30 | $3,304.7 | $3,383.6 | (2)% | **Revenue Change, Constant Currency Adjusted, Excluding Business Solutions (Non-GAAP):** | Period | % Change | | :---------------- | :--------- | | Three Months Ended Sep 30 | 7% | | Nine Months Ended Sep 30 | 5% | - Foreign currency fluctuations, net of hedges, decreased revenues by **$25.6 million** for the three months and **$101.4 million** for the nine months ended September 30, 2023[158](index=158&type=chunk)[167](index=167&type=chunk) **Divestiture Impact on Revenues (Business Solutions):** | Period | 2023 (Millions) | 2022 (Millions) | | :---------------- | :-------------- | :-------------- | | Three Months Ended Sep 30 | $0 | $42.6 | | Nine Months Ended Sep 30 | $29.7 | $167.4 | - Business originating from Iraq contributed **8%** and **6%** to revenues for the three and nine months ended September 30, 2023, respectively, but is expected to be significantly reduced in Q4 2023 due to policy changes and agent suspension[161](index=161&type=chunk) [Operating Expenses Overview](index=39&type=section&id=Operating%20Expenses%20Overview) This overview analyzes the company's operating expenses and the impact of strategic programs **Total Expenses:** | Period | 2023 (Millions) | 2022 (Millions) | % Change | | :---------------- | :-------------- | :-------------- | :--------- | | Three Months Ended Sep 30 | $886.9 | $857.8 | 3% | | Nine Months Ended Sep 30 | $2,646.5 | $2,650.3 | 0% | **Cost of Services:** | Period | 2023 (Millions) | 2022 (Millions) | % Change | | :---------------- | :-------------- | :-------------- | :--------- | | Three Months Ended Sep 30 | $687.2 | $637.3 | 8% | | Nine Months Ended Sep 30 | $2,015.6 | $1,945.4 | 4% | **Selling, General, and Administrative Expenses:** | Period | 2023 (Millions) | 2022 (Millions) | % Change | | :---------------- | :-------------- | :-------------- | :--------- | | Three Months Ended Sep 30 | $199.7 | $220.5 | (9)% | | Nine Months Ended Sep 30 | $630.9 | $704.9 | (11)% | - The operating expense redeployment program incurred **$4.1 million** for the three months and **$19.5 million** for the nine months ended September 30, 2023, totaling **$41.3 million** through September 30, 2023[170](index=170&type=chunk) [Total Other Income/(Expense), Net](index=40&type=section&id=Total%20Other%20Income/(Expense),%20Net) This section details non-operating income and expenses, including gains from divestitures **Total Other Income/(Expense), Net:** | Period | 2023 (Millions) | 2022 (Millions) | | :---------------- | :-------------- | :-------------- | | Three Months Ended Sep 30 | $(6.6) | $(38.1) | | Nine Months Ended Sep 30 | $(56.5) | $58.8 | - The gain on divestiture of business was **$18.0 million** for both the three and nine months ended September 30, 2023[163](index=163&type=chunk) [Income Taxes](index=40&type=section&id=Income%20Taxes) This section discusses the company's income tax expense and effective tax rates **Effective Tax Rates:** | Period | 2023 | 2022 | | :---------------- | :--- | :--- | | Three Months Ended Sep 30 | 16.3% | 10.2% | | Nine Months Ended Sep 30 | 17.1% | 16.5% | - Tax contingency reserves totaled **$241.9 million** as of September 30, 2023, including accrued interest and penalties[175](index=175&type=chunk) [Earnings Per Share](index=40&type=section&id=Earnings%20Per%20Share) This section provides an analysis of the company's basic and diluted earnings per share **Diluted EPS:** | Period | 2023 | 2022 | | :---------------- | :--- | :--- | | Three Months Ended Sep 30 | $0.46 | $0.45 | | Nine Months Ended Sep 30 | $1.33 | $1.70 | - Anti-dilutive shares excluded from EPS calculation were **9.5 million** (Q3 2023) and **8.1 million** (Q3 2022) for the three months, and **9.6 million** (YTD 2023) and **8.0 million** (YTD 2022) for the nine months[176](index=176&type=chunk) [Segment Discussion](index=40&type=section&id=Segment%20Discussion) This section provides a detailed financial discussion of each of the company's operating segments **Segment Revenues as a Percentage of Consolidated Totals (Three Months Ended Sep 30):** | Segment | 2023 | 2022 | | :---------------- | :--- | :--- | | Consumer-to-Consumer | 93 % | 90 % | | Business Solutions | 0 % | 4 % | | Other | 7 % | 6 % | **Segment Revenues as a Percentage of Consolidated Totals (Nine Months Ended Sep 30):** | Segment | 2023 | 2022 | | :---------------- | :--- | :--- | | Consumer-to-Consumer | 92 % | 89 % | | Business Solutions | 1 % | 5 % | | Other | 7 % | 6 % | [Consumer-to-Consumer Segment](index=41&type=section&id=Consumer-to-Consumer%20Segment) This section analyzes the Consumer-to-Consumer segment's financial performance, including revenues and transactions **Revenues (Consumer-to-Consumer):** | Period | 2023 (Millions) | 2022 (Millions) | % Change | | :---------------- | :-------------- | :-------------- | :--------- | | Three Months Ended Sep 30 | $1,019.0 | $982.4 | 4% | | Nine Months Ended Sep 30 | $3,029.5 | $3,008.3 | 1% | **Transactions (Consumer-to-Consumer):** | Period | 2023 (Millions) | 2022 (Millions) | % Change | | :---------------- | :-------------- | :-------------- | :--------- | | Three Months Ended Sep 30 | 70.6 | 66.9 | 5% | | Nine Months Ended Sep 30 | 206.5 | 204.8 | 1% | **Operating Income (Consumer-to-Consumer):** | Period | 2023 (Millions) | 2022 (Millions) | % Change | | :---------------- | :-------------- | :-------------- | :--------- | | Three Months Ended Sep 30 | $193.4 | $193.7 | 0% | | Nine Months Ended Sep 30 | $601.9 | $626.5 | (4)% | - Cross-border principal transferred increased to **$26.0 billion** (Q3 2023) from **$23.0 billion** (Q3 2022) and to **$76.5 billion** (YTD 2023) from **$70.2 billion** (YTD 2022), driven by growth in Iraq, North America, and Latin America[187](index=187&type=chunk) - Branded Digital represented approximately **21%** of Consumer-to-Consumer revenues for both the three and nine months ended September 30, 2023[186](index=186&type=chunk) [Business Solutions](index=43&type=section&id=Business%20Solutions) This section discusses the financial results of the Business Solutions segment, impacted by its divestiture **Revenues (Business Solutions):** | Period | 2023 (Millions) | 2022 (Millions) | | :---------------- | :-------------- | :-------------- | | Three Months Ended Sep 30 | $0 | $42.6 | | Nine Months Ended Sep 30 | $29.7 | $167.4 | **Operating Income (Business Solutions):** | Period | 2023 (Millions) | 2022 (Millions) | | :---------------- | :-------------- | :-------------- | | Three Months Ended Sep 30 | $0 | $15.9 | | Nine Months Ended Sep 30 | $3.7 | $51.7 | - The decrease in revenues and operating income is due to the final closing of the Business Solutions divestiture on July 1, 2023[193](index=193&type=chunk) [Other](index=44&type=section&id=Other) This section covers revenues and operating income from other business activities **Revenues (Other):** | Period | 2023 (Millions) | 2022 (Millions) | % Change | | :---------------- | :-------------- | :-------------- | :--------- | | Three Months Ended Sep 30 | $78.8 | $64.6 | 22% | | Nine Months Ended Sep 30 | $245.5 | $207.9 | 18% | **Operating Income (Other):** | Period | 2023 (Millions) | 2022 (Millions) | % Change | | :---------------- | :-------------- | :-------------- | :--------- | | Three Months Ended Sep 30 | $21.6 | $21.6 | 0% | | Nine Months Ended Sep 30 | $72.1 | $73.4 | (2)% | - Revenue growth was primarily driven by increased investment revenues from money order securities and higher local currency revenue per transaction in Argentina due to inflation[198](index=198&type=chunk) [Capital Resources and Liquidity](index=44&type=section&id=Capital%20Resources%20and%20Liquidity) This section discusses the company's financial resources, liquidity, and cash management strategies [Cash and Investment Securities](index=45&type=section&id=Cash%20and%20Investment%20Securities) This section details the company's cash, cash equivalents, and investment securities holdings **Cash and Cash Equivalents:** | Date | Amount (Millions) | | :---------------- | :-------------- | | Sep 30, 2023 | $1,138.2 | | Dec 31, 2022 | $1,291.1 | **Investment Securities (within Settlement assets):** | Date | Amount (Millions) | | :---------------- | :-------------- | | Sep 30, 2023 | $1,383.1 | | Dec 31, 2022 | $1,333.4 | - Investment securities are primarily highly-rated state and municipal debt securities, held to comply with state licensing requirements[208](index=208&type=chunk) [Cash Flows from Operating Activities](index=45&type=section&id=Cash%20Flows%20from%20Operating%20Activities) This section analyzes the cash generated or used by the company's primary business operations **Net Cash Provided by Operating Activities (Nine Months Ended Sep 30):** | Year | Amount (Millions) | | :--- | :-------------- | | 2023 | $518.6 | | 2022 | $522.4 | [Financing Resources](index=45&type=section&id=Financing%20Resources) This section describes the company's debt, credit facilities, and other financing arrangements - Outstanding borrowings at par value were **$2,320.0 million** as of September 30, 2023, primarily unsecured fixed-rate notes[211](index=211&type=chunk) - The company repaid **$300.0 million** of **4.250%** unsecured notes due in June 2023[211](index=211&type=chunk) - A **$1.5 billion** revolving credit facility, expiring in January 2025, supports the commercial paper program; no outstanding borrowings as of September 30, 2023[203](index=203&type=chunk)[213](index=213&type=chunk) - Commercial paper borrowings outstanding were **$170.0 million** as of September 30, 2023, with a weighted-average annual interest rate of approximately **5.6%** and a weighted-average term of approximately **2 days**[214](index=214&type=chunk) [Cash Priorities](index=46&type=section&id=Cash%20Priorities) This section outlines the company's strategic cash allocation for growth, investments, and shareholder returns - The company's objective is to maintain strong liquidity and a capital structure consistent with investment-grade credit ratings[216](index=216&type=chunk) - Cash is prioritized for business growth, investments, acquisitions, returning capital to shareholders (dividends and share repurchases), and servicing debt and tax obligations[217](index=217&type=chunk) [Capital Expenditures](index=46&type=section&id=Capital%20Expenditures) This section details the company's investments in property, plant, and equipment **Total Capital Expenditures (Nine Months Ended Sep 30):** | Year | Amount (Millions) | | :--- | :-------------- | | 2023 | $117.2 | | 2022 | $147.5 | - Capital expenditures include investments in information technology infrastructure[218](index=218&type=chunk) [Share Repurchases and Dividends](index=46&type=section&id=Share%20Repurchases%20and%20Dividends) This section provides information on the company's share repurchase programs and dividend payments - During the nine months ended September 30, 2023, the company repurchased **7.8 million shares** for **$100.0 million**, with **$548.2 million** remaining under the **$1.0 billion** authorization through December 31, 2024[219](index=219&type=chunk) - Quarterly cash dividends of **$0.235** per common share were declared in each of the first three quarters of 2023, totaling **$263.3 million**[220](index=220&type=chunk) [Material Cash Requirements](index=47&type=section&id=Material%20Cash%20Requirements) This section identifies significant future cash obligations, including debt, taxes, and commitments - The next scheduled principal payment on outstanding notes is in 2025[221](index=221&type=chunk) - Approximately **$358 million** of the 2017 U.S. federal tax liability remained as of September 30, 2023, with **$119.5 million** paid in Q2 2023, payable in installments through 2025[222](index=222&type=chunk) - Outstanding letters of credit and bank guarantees totaled approximately **$160 million** as of September 30, 2023[225](index=225&type=chunk) - Total unrecognized income tax benefits were **$301.5 million** as of September 30, 2023, including associated interest and penalties[226](index=226&type=chunk) [Critical Accounting Policies and Estimates](index=47&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) This section highlights key accounting policies and estimates that require significant management judgment - Critical accounting policies and estimates include income taxes, derivative financial instruments, goodwill, and other intangible assets[227](index=227&type=chunk)[228](index=228&type=chunk) - No material changes to these policies were reported since the Annual Report on Form 10-K for the year ended December 31, 2022[227](index=227&type=chunk) [Risk Management](index=48&type=section&id=Risk%20Management) This section describes strategies for managing market, foreign currency, interest rate, and credit risks - The company is exposed to market risks from foreign currency exchange rates and interest rates, and credit risk related to agents and customers[229](index=229&type=chunk) - Foreign currency risk is managed through business structure, short-duration forward contracts for settlement, and longer-term forward contracts (up to **36 months**) for forecasted revenues[230](index=230&type=chunk)[231](index=231&type=chunk) - A hypothetical **10%** strengthening or weakening of the U.S. dollar would result in an approximate **$19 million** decrease/increase to pre-tax annual income[232](index=232&type=chunk) - Interest rate risk is managed by evaluating net asset/liability positions, adjusting the mix of fixed/floating rate debt and investments, and using interest rate swaps[236](index=236&type=chunk) - Credit risk is managed through investment diversification, agent credit reviews, and monitoring losses from digital channel transactions (chargebacks, fraud), which are less than **3%** of consolidated revenues[238](index=238&type=chunk)[239](index=239&type=chunk)[240](index=240&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section incorporates by reference the detailed discussion on market risk management from the MD&A - The information required by this Item is incorporated by reference from the 'Risk Management' discussion in Part I, Item 2[241](index=241&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) This section reports on the effectiveness of disclosure controls and internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=49&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) This section confirms the effectiveness of the company's disclosure controls and procedures - The Principal Executive Officer and Principal Financial Officer concluded that disclosure controls and procedures were effective as of September 30, 2023[242](index=242&type=chunk) [Changes in Internal Control over Financial Reporting](index=50&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) This section reports on any material changes to internal control over financial reporting during the quarter - No material changes occurred during the fiscal quarter that affected, or are reasonably likely to affect, internal control over financial reporting[243](index=243&type=chunk) [Review Report of Independent Registered Public Accounting Firm](index=51&type=section&id=Review%20Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) This report provides the independent auditor's review of the condensed consolidated interim financial statements - Ernst & Young LLP concluded that no material modifications are needed for the condensed consolidated interim financial statements to be in conformity with U.S. GAAP[246](index=246&type=chunk) - The information in the condensed consolidated balance sheet as of December 31, 2022, is fairly stated in relation to the previously audited consolidated balance sheet[247](index=247&type=chunk) [PART II OTHER INFORMATION](index=52&type=section&id=PART%20II%20OTHER%20INFORMATION) This section includes legal proceedings, risk factors, equity sales, defaults, and other information [Item 1. Legal Proceedings](index=52&type=section&id=Item%201.%20Legal%20Proceedings) This section incorporates by reference the discussion of legal proceedings from the financial statement notes - Information regarding legal proceedings is incorporated by reference from Note 6, Commitments and Contingencies, in Part I, Item 1, Financial Statements[251](index=251&type=chunk) [Item 1A. Risk Factors](index=52&type=section&id=Item%201A.%20Risk%20Factors) This section confirms no material changes to the risk factors previously disclosed in the annual report - No material changes to the risk factors described in the Annual Report on Form 10-K for the year ended December 31, 2022, have occurred[252](index=252&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=52&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This section details unregistered sales of equity securities and the use of proceeds from repurchases **Stock Repurchases (Quarter Ended Sep 30, 2023):** | Metric | Value | | :---------------- | :---------------- | | Total Number of Shares Purchased | **7,820,904** | | Average Price Paid per Share | **$12.87** | | Shares Purchased as Part of Publicly Announced Plans | **7,766,204** | - As of September 30, 2023, **$548.2 million** remained available under the **$1.0 billion** common stock repurchase authorization through December 31, 2024[254](index=254&type=chunk) [Item 3. Defaults Upon Senior Securities](index=52&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This section reports on any defaults concerning the company's senior securities - There were no defaults upon senior securities during the period[256](index=256&type=chunk) [Item 4. Mine Safety Disclosures](index=52&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This section states that mine safety disclosures are not applicable to the company's operations - This item is not applicable to the company[257](index=257&type=chunk) [Item 5. Other Information](index=52&type=section&id=Item%205.%20Other%20Information) This section provides other material information not covered elsewhere, including trading plans - None of the company's directors or executive officers adopted, modified, or terminated any Rule 10b5-1 trading plans or non-Rule 10b5-1 trading arrangements during the three months ended September 30, 2023[258](index=258&type=chunk) [Item 6. Exhibits](index=53&type=section&id=Item%206.%20Exhibits) This section lists all exhibits filed or furnished with the Form 10-Q - Key exhibits include certifications from the Chief Executive Officer and Chief Financial Officer, Inline XBRL documents, and a letter from Ernst & Young LLP[261](index=261&type=chunk) [SIGNATURES](index=54&type=section&id=SIGNATURES) This section contains the required signatures for the Form 10-Q filing - The report was signed on October 25, 2023, by Devin B. McGranahan (President and Chief Executive Officer), Matt Cagwin (Chief Financial Officer), and Mark Hinsey (Chief Accounting Officer and Controller)[264](index=264&type=chunk)
Western Union(WU) - 2023 Q2 - Earnings Call Transcript
2023-07-27 00:46
The Western Union Company (NYSE:WU) Q2 2023 Results Conference Call July 26, 2023 4:30 PM ET Company Participants Tom Hadley - Head, IR Devin McGranahan - CEO Matt Cagwin - CFO Conference Call Participants Will Nance - Goldman Sachs Andrew Schmidt - Citi Bryan Keane - Deutsche Bank Darrin Peller - Wolfe Research David Togut - Evercore Jason Kupferberg - Bank of America Ken Suchoski - Autonomous Rayna Kumar - UBS Tien-Tsin Huang - JPMorgan Tim Chiodo - Credit Suisse Vasu Govil - KBW Operator Good day, and we ...
Western Union(WU) - 2023 Q2 - Quarterly Report
2023-07-25 16:00
[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20(Unaudited)) Presents unaudited condensed consolidated financial statements, including income, balance sheets, cash flows, equity, and detailed notes [Condensed Consolidated Statements of Income](index=3&type=section&id=Condensed%20Consolidated%20Statements%20of%20Income) | Metric | 2023 (millions) | 2022 (millions) | Change (%) | | :----- | :-------------- | :-------------- | :--------- | | Revenues | $1,170.0 | $1,138.3 | 2.8% | | Net Income | $176.2 | $194.0 | -9.2% | | Diluted EPS | $0.47 | $0.50 | -6.0% | | Metric | 2023 (millions) | 2022 (millions) | Change (%) | | :----- | :-------------- | :-------------- | :--------- | | Revenues | $2,206.9 | $2,294.0 | -3.8% | | Net Income | $328.0 | $487.3 | -32.7% | | Diluted EPS | $0.87 | $1.25 | -30.4% | [Condensed Consolidated Statements of Comprehensive Income](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) | Metric | 2023 (millions) | 2022 (millions) | Change (%) | | :------------------ | :-------------- | :-------------- | :--------- | | Comprehensive Income | $154.0 | $193.4 | -20.4% | | Metric | 2023 (millions) | 2022 (millions) | Change (%) | | :------------------ | :-------------- | :-------------- | :--------- | | Comprehensive Income | $315.5 | $422.6 | -25.3% | | Metric | 2023 (millions) | 2022 (millions) | | :-------------------------- | :-------------- | :-------------- | | Total Other Comprehensive Loss | $(22.2) | $(0.6) | [Condensed Consolidated Balance Sheets](index=5&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) | Metric | June 30, 2023 (millions) | December 31, 2022 (millions) | Change (%) | | :---------- | :----------------------- | :--------------------------- | :--------- | | Total Assets | $8,487.4 | $8,496.3 | -0.1% | | Total Liabilities | $7,860.9 | $8,018.5 | -1.9% | | Total Stockholders' Equity | $626.5 | $477.8 | 31.1% | [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) | Metric | 2023 (millions) | 2022 (millions) | Change (%) | | :-------------------------------- | :-------------- | :-------------- | :--------- | | Net Cash Provided by Operating Activities | $264.0 | $306.8 | -13.9% | | Metric | 2023 (millions) | 2022 (millions) | | :-------------------------------------- | :-------------- | :-------------- | | Net Cash (Used in)/Provided by Investing Activities | $(65.1) | $292.3 | | Metric | 2023 (millions) | 2022 (millions) | | :---------------------------------- | :-------------- | :-------------- | | Net Cash Used in Financing Activities | $(609.5) | $(788.0) | [Condensed Consolidated Statements of Stockholders' Equity](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) - Total Stockholders' Equity as of June 30, 2023, was **$626.5 million**, an increase from **$477.8 million** as of December 31, 2022[15](index=15&type=chunk)[21](index=21&type=chunk) - Net income for the three months ended June 30, 2023, was **$176.2 million**[21](index=21&type=chunk) - Common stock dividends and dividend equivalents declared for the three months ended June 30, 2023, totaled **$(89.5) million**[21](index=21&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) [Note 1. Business and Basis of Presentation](index=9&type=section&id=Note%201.%20Business%20and%20Basis%20of%20Presentation) - The Western Union Company is a leader in global money movement and payment services, providing services through a network of agent locations in over 200 countries and territories, as well as through Branded Digital and third-party digital partners[24](index=24&type=chunk) - The Company's business consists of two primary segments: Consumer-to-Consumer (money transfers via retail and digital channels) and Business Solutions (payment and foreign exchange solutions for SMEs, which was fully divested on July 1, 2023). Other services include bill payment and money order services[25](index=25&type=chunk)[28](index=28&type=chunk) - As of December 31, 2022, the Company's restricted net assets associated with asset limitations and minimum capital requirements totaled approximately **$710 million**[26](index=26&type=chunk) [Note 2. Revenue](index=10&type=section&id=Note%202.%20Revenue) - Revenues are primarily derived from customer consideration for money transfers, varying by channel, locations, principal amount, and foreign exchange rate differences. Other services, such as bill payment, also contribute to revenue[35](index=35&type=chunk) | Product Type | Three Months Ended June 30, 2023 (millions) | | :------------------------------------ | :---------------------------------------- | | Consumer Money Transfers | $1,037.7 | | Foreign Exchange and Payment Services | $6.5 | | Other Services | $65.9 | | Other revenues | $59.9 | | **Total Revenues** | **$1,170.0** | | Product Type | Six Months Ended June 30, 2023 (millions) | | :------------------------------------ | :-------------------------------------- | | Consumer Money Transfers | $1,943.0 | | Foreign Exchange and Payment Services | $13.0 | | Other Services | $133.1 | | Other revenues | $117.8 | | **Total Revenues** | **$2,206.9** | [Note 3. Earnings Per Share](index=12&type=section&id=Note%203.%20Earnings%20Per%20Share) | Metric | Three Months Ended June 30, 2023 (millions) | Three Months Ended June 30, 2022 (millions) | | :-------------------------------- | :---------------------------------------- | :---------------------------------------- | | Diluted weighted-average shares outstanding | 375.6 | 387.6 | | Metric | Six Months Ended June 30, 2023 (millions) | Six Months Ended June 30, 2022 (millions) | | :-------------------------------- | :-------------------------------------- | :-------------------------------------- | | Diluted weighted-average shares outstanding | 375.6 | 391.0 | - Shares excluded from diluted EPS calculation due to their anti-dilutive effect were **10.1 million** (Q2 2023) and **9.7 million** (H1 2023)[45](index=45&type=chunk) [Note 4. Assets Held for Sale and Related Divestiture](index=12&type=section&id=Note%204.%20Assets%20Held%20for%20Sale%20and%20Related%20Divestiture) - The sale of the Business Solutions business was completed in three closings, with the final closing on July 1, 2023. The first closing (March 1, 2022) resulted in a **$151.4 million gain**, and the second (December 31, 2022) resulted in a **$96.9 million gain**[47](index=47&type=chunk)[49](index=49&type=chunk) | Metric | Three Months Ended June 30, 2023 (millions) | Three Months Ended June 30, 2022 (millions) | | :-------------------------- | :---------------------------------------- | :---------------------------------------- | | Business Solutions Revenues | $14.3 | $35.7 | | Direct Operating Expenses | $12.6 | $27.8 | | Metric | June 30, 2023 (millions) | December 31, 2022 (millions) | | :------------------------------------ | :----------------------- | :--------------------------- | | Total Assets Held for Sale | $240.6 | $261.6 | | Total Liabilities Associated with Assets Held for Sale | $161.5 | $182.5 | [Note 5. Fair Value Measurements](index=14&type=section&id=Note%205.%20Fair%20Value%20Measurements) | Metric | June 30, 2023 (millions) | | :---------------- | :----------------------- | | Total Fair Value of Assets | $1,508.4 | | Total Fair Value of Liabilities | $70.3 | - As of June 30, 2023, the carrying value of the Company's borrowings was **$2,813.0 million**, and the fair value was **$2,668.1 million**[59](index=59&type=chunk) - The Company fully redeemed its reverse repurchase agreements as of June 30, 2023[60](index=60&type=chunk) [Note 6. Commitments and Contingencies](index=15&type=section&id=Note%206.%20Commitments%20and%20Contingencies) - The Company had approximately **$160 million** in outstanding letters of credit and bank guarantees as of June 30, 2023[61](index=61&type=chunk) - Reasonably possible potential litigation losses in excess of the Company's recorded liability for probable and estimable losses were approximately **$30 million** as of June 30, 2023[63](index=63&type=chunk) - The Company is involved in several legal matters, including a class action in Argentina, a class action in the U.S. regarding financial privacy, and a lawsuit in the Democratic Republic of Congo, with unpredictable outcomes[67](index=67&type=chunk)[68](index=68&type=chunk)[69](index=69&type=chunk) [Note 7. Related Party Transactions](index=17&type=section&id=Note%207.%20Related%20Party%20Transactions) | Metric | Three Months Ended June 30, 2023 (millions) | Three Months Ended June 30, 2022 (millions) | | :------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Commission expense recognized for equity method agents | $11.5 | $12.8 | | Metric | Six Months Ended June 30, 2023 (millions) | Six Months Ended June 30, 2022 (millions) | | :------------------------------------ | :-------------------------------------- | :-------------------------------------- | | Commission expense recognized for equity method agents | $22.3 | $24.3 | [Note 8. Settlement Assets and Obligations](index=17&type=section&id=Note%208.%20Settlement%20Assets%20and%20Obligations) | Metric | June 30, 2023 (millions) | | :------------------------------------ | :----------------------- | | Total Settlement Assets | $3,419.7 | | Receivables from agents, Business Solutions customers, and others, net | $1,988.9 | | Investment securities, net | $1,419.7 | | Total Settlement Obligations | $3,419.7 | | Allowance for Credit Losses (millions) | Agents and Others | Business Solutions Customers | | :------------------------------------- | :---------------- | :--------------------------- | | As of June 30, 2023 | $11.7 | $0 | - Investment securities had total net unrealized losses of **$(73.7) million** as of June 30, 2023, primarily due to rising U.S. Treasury interest rates[85](index=85&type=chunk)[88](index=88&type=chunk) | Contractual Maturities of Available-for-Sale Securities (June 30, 2023) | | :------------------------------------ | :----------------------- | | Due within 1 year | $115.9 million | | Due after 1 year through 5 years | $676.8 million | | Due after 5 years through 10 years | $437.6 million | | Due after 10 years | $189.7 million | | **Total** | **$1,420.0 million** | [Note 9. Stockholders' Equity](index=21&type=section&id=Note%209.%20Stockholders'%20Equity) - Accumulated Other Comprehensive Loss (AOCL) was **$(180.4) million** as of June 30, 2023, primarily driven by foreign currency translation and investment securities losses[93](index=93&type=chunk) - Quarterly cash dividends of **$0.235 per common share** were declared in Q1 and Q2 2023, totaling **$176.0 million**[97](index=97&type=chunk) - No shares were repurchased under the **$1.0 billion** share repurchase authorization during the six months ended June 30, 2023. **$648.2 million** remained available under this authorization[98](index=98&type=chunk) [Note 10. Derivatives](index=22&type=section&id=Note%2010.%20Derivatives) - The Company uses foreign currency forward contracts as cash flow hedges for forecasted revenues (up to 24-month maturities) and as undesignated hedges for settlement assets/obligations and foreign currency positions (short-duration)[103](index=103&type=chunk)[104](index=104&type=chunk) | Derivative Type | Notional Amount (June 30, 2023, millions) | | :------------------------------------ | :---------------------------------------- | | Contracts designated as hedges | $546.0 | | Contracts not designated as hedges | $1,306.6 | - The aggregate notional amount of derivative customer contracts in Business Solutions operations was approximately **$1.5 billion** as of June 30, 2023, down from **$3.0 billion** at December 31, 2022[110](index=110&type=chunk) | Derivative Type | Fair Value (June 30, 2023, millions) | | :------------------------------------ | :----------------------------------- | | Total Derivative Assets | $80.8 | | Total Derivative Liabilities | $70.3 | - A pre-tax gain of **$7.5 million** related to foreign currency forward contracts is expected to be reclassified into Revenues within the next 12 months[127](index=127&type=chunk) [Note 11. Borrowings](index=29&type=section&id=Note%2011.%20Borrowings) | Metric | June 30, 2023 (millions) | | :------------------------------------ | :----------------------- | | Total borrowings at carrying value | $2,813.0 | | Commercial paper | $674.6 | - The Company repaid **$300.0 million** of 4.250% unsecured notes due in June 2023 using commercial paper and cash[128](index=128&type=chunk) - Commercial paper borrowings as of June 30, 2023, had a weighted-average annual interest rate of approximately **5.3%** and a weighted-average term of approximately **5 days**[129](index=129&type=chunk) | Maturity of Notes (June 30, 2023) | Par Value (millions) | | :-------------------------------- | :------------------- | | Due within 1 year | $0 | | Due after 1 year through 2 years | $500.0 | | Due after 2 years through 3 years | $600.0 | | Due after 5 years | $1,050.0 | | **Total** | **$2,150.0** | [Note 12. Income Taxes](index=30&type=section&id=Note%2012.%20Income%20Taxes) - The effective tax rate for the three months ended June 30, 2023, increased to **18.6%** from **17.9%** in 2022, primarily due to discrete tax effects, partially offset by the Business Solutions sale and lower R&D capitalization[132](index=132&type=chunk) - The effective tax rate for the six months ended June 30, 2023, decreased to **17.4%** from **18.6%** in 2022, primarily due to the Business Solutions sale and lower R&D capitalization, partially offset by discrete tax effects[132](index=132&type=chunk) - Total unrecognized tax benefits were **$297.5 million** as of June 30, 2023, including interest and penalties[133](index=133&type=chunk) [Note 13. Stock-Based Compensation Plans](index=30&type=section&id=Note%2013.%20Stock-Based%20Compensation%20Plans) | Metric | Three Months Ended June 30, 2023 (millions) | Three Months Ended June 30, 2022 (millions) | | :------------------------------------ | :---------------------------------------- | :---------------------------------------- | | Stock-based compensation expense | $9.5 | $12.3 | | Metric | Six Months Ended June 30, 2023 (millions) | Six Months Ended June 30, 2022 (millions) | | :------------------------------------ | :-------------------------------------- | :-------------------------------------- | | Stock-based compensation expense | $17.5 | $23.0 | - As of June 30, 2023, the Company had **7.1 million** outstanding options (weighted-average exercise price of **$18.09**) and **8.0 million** outstanding performance-based restricted stock units and restricted stock units (weighted-average grant date fair value of **$16.72**)[138](index=138&type=chunk) [Note 14. Segments](index=31&type=section&id=Note%2014.%20Segments) - The Company's segments are Consumer-to-Consumer and Business Solutions. Business Solutions revenues and operating expenses will no longer be reported in future periods due to its divestiture[139](index=139&type=chunk)[141](index=141&type=chunk) - Effective January 1, 2022, corporate costs are no longer allocated to the Business Solutions segment[143](index=143&type=chunk) | Segment | Three Months Ended June 30, 2023 (millions) | Six Months Ended June 30, 2023 (millions) | | :------------------ | :---------------------------------------- | :-------------------------------------- | | Consumer-to-Consumer | $1,072.2 | $2,010.5 | | Business Solutions | $14.3 | $29.7 | | Other | $83.5 | $166.7 | | **Total Revenues** | **$1,170.0** | **$2,206.9** | | Segment | Three Months Ended June 30, 2023 (millions) | Six Months Ended June 30, 2023 (millions) | | :-------------------------- | :---------------------------------------- | :-------------------------------------- | | Consumer-to-Consumer | $230.7 | $408.5 | | Business Solutions | $1.8 | $3.7 | | Other | $18.4 | $50.5 | | **Total Segment Operating Income** | **$250.9** | **$462.7** | [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=33&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses financial performance, condition, and outlook, detailing revenues, expenses, segment results, capital, liquidity, and risk management [Overview](index=34&type=section&id=Overview) - The Western Union Company is a leading provider of money movement and payment services, operating in Consumer-to-Consumer and Business Solutions segments, with the latter fully divested on July 1, 2023[154](index=154&type=chunk)[155](index=155&type=chunk) - Revenue growth for the three and six months ended June 30, 2023, was significantly impacted by increased business originating from Iraq (**10%** and **6%** contribution, respectively), though this volume is expected to decrease due to recent U.S. government actions[160](index=160&type=chunk) - The suspension of operations in Russia and Belarus in March 2022 impacted revenues by approximately **$28 million** for the six months ended June 30, 2022[161](index=161&type=chunk) [Results of Operations](index=35&type=section&id=Results%20of%20Operations) [Revenues Overview](index=36&type=section&id=Revenues%20Overview) | Metric | 2023 (millions) | 2022 (millions) | % Change (GAAP) | Foreign Currency Impact | Divestitures Impact | % Change (Constant Currency, ex-BS) | | :-------------------------------------- | :-------------- | :-------------- | :---------------- | :---------------------- | :------------------ | :----------------------------------- | | Revenues (3 months ended June 30) | $1,170.0 | $1,138.3 | 3% | -3% | -3% | 9% | | Revenues (6 months ended June 30) | $2,206.9 | $2,294.0 | (4)% | -4% | -4% | 4% | - GAAP revenues for the three and six months ended June 30, 2023, benefited from increased Consumer-to-Consumer revenues in Iraq and higher local currency revenue per transaction in Argentina due to inflation, partially offset by declines in Europe and CIS and North America[167](index=167&type=chunk) [Operating Expenses Overview](index=37&type=section&id=Operating%20Expenses%20Overview) - The Company announced an operating expense redeployment program in October 2022, aiming to redeploy approximately **$150 million** in expenses over five years through optimizations in vendor management, real estate, marketing, and people strategy[168](index=168&type=chunk) - Expenses incurred under the redeployment program were **$8.3 million** for the three months ended June 30, 2023, and **$15.4 million** for the six months ended June 30, 2023, totaling **$37.2 million** through June 30, 2023[168](index=168&type=chunk) - Cost of services increased primarily due to higher agent commissions and increased investment in information technology, partially offset by the Business Solutions divestiture[169](index=169&type=chunk) - Selling, general, and administrative expenses decreased due to the Business Solutions divestiture, reductions in shared services G&A, and lower advertising, partially offset by redeployment program costs and increased employee incentive compensation[170](index=170&type=chunk) [Total Other Income/(Expense), Net](index=38&type=section&id=Total%20Other%20Income%2F(Expense)%2C%20Net) - Total other income/(expense), net for the six months ended June 30, 2023, was negatively impacted by the absence of the gain on the first closing of the Business Solutions divestiture recognized in the prior year[171](index=171&type=chunk) [Income Taxes](index=38&type=section&id=Income%20Taxes) | Metric | Three Months Ended June 30 | Six Months Ended June 30 | | :---------------- | :------------------------- | :----------------------- | | Effective Tax Rate | 18.6% (2023) vs 17.9% (2022) | 17.4% (2023) vs 18.6% (2022) | - As of June 30, 2023, tax contingency reserves totaled **$243.1 million**, including accrued interest and penalties[173](index=173&type=chunk) [Earnings Per Share](index=38&type=section&id=Earnings%20Per%20Share) | Metric | Three Months Ended June 30 | Six Months Ended June 30 | | :---------------- | :------------------------- | :----------------------- | | Basic EPS | $0.47 (2023) vs $0.50 (2022) | $0.88 (2023) vs $1.25 (2022) | | Diluted EPS | $0.47 (2023) vs $0.50 (2022) | $0.87 (2023) vs $1.25 (2022) | - EPS was impacted by changes in net income and a lower number of average shares outstanding[175](index=175&type=chunk) [Segment Discussion](index=38&type=section&id=Segment%20Discussion) [Consumer-to-Consumer Segment](index=39&type=section&id=Consumer-to-Consumer%20Segment) | Metric | Three Months Ended June 30, 2023 (millions) | Six Months Ended June 30, 2023 (millions) | | :-------------------------- | :---------------------------------------- | :-------------------------------------- | | Revenues | $1,072.2 (4% increase YoY) | $2,010.5 (1% decrease YoY) | | Operating Income | $230.7 (2% increase YoY) | $408.5 (6% decrease YoY) | | Transactions | 70.6 (4% increase YoY) | 135.9 (1% decrease YoY) | - Cross-border principal transferred increased to **$27.5 billion** (Q2 2023) and **$50.5 billion** (H1 2023), driven by monetary policy changes in Iraq and growth in North America, Latin America and the Caribbean, and East Asia and Oceania regions[186](index=186&type=chunk) | Region (3 months ended June 30, 2023) | Constant Currency Revenue Growth / (Decline) | Transaction Growth / (Decline) | | :------------------------------------ | :----------------------------------------- | :----------------------------- | | North America | (7)% | 4% | | Europe and CIS | (10)% | (1)% | | Middle East, Africa, and South Asia | 67% | 8% | | Latin America and the Caribbean | 8% | 8% | | East Asia and Oceania | (4)% | 1% | - Branded Digital transactions represented approximately **21%** of Consumer-to-Consumer revenues for both the three and six months ended June 30, 2023[185](index=185&type=chunk) [Business Solutions Segment](index=41&type=section&id=Business%20Solutions%20Segment) | Metric | Three Months Ended June 30, 2023 (millions) | Six Months Ended June 30, 2023 (millions) | | :---------------- | :---------------------------------------- | :-------------------------------------- | | Revenues | $14.3 (60% decrease YoY) | $29.7 (76% decrease YoY) | | Operating Income | $1.8 (79% decrease YoY) | $3.7 (90% decrease YoY) | - The significant declines in revenue and operating income were primarily due to the first and second closings of the Business Solutions divestiture in March 2022 and December 2022[193](index=193&type=chunk)[195](index=195&type=chunk) [Other Segment](index=42&type=section&id=Other%20Segment) | Metric | Three Months Ended June 30, 2023 (millions) | Six Months Ended June 30, 2023 (millions) | | :---------------- | :---------------------------------------- | :-------------------------------------- | | Revenues | $83.5 (10% increase YoY) | $166.7 (16% increase YoY) | | Operating Income | $18.4 (39% decrease YoY) | $50.5 (3% decrease YoY) | - Revenue increases were driven by higher investment revenues from money order investment securities and increased local currency revenue per transaction in Argentina due to inflation[198](index=198&type=chunk) - Operating income decreased due to increased investment in information technology, higher consulting expenses for new services, and reduced reimbursement for transition services after the Business Solutions divestiture[199](index=199&type=chunk) [Capital Resources and Liquidity](index=42&type=section&id=Capital%20Resources%20and%20Liquidity) Outlines sources of funds, resource management for business needs, debt, and shareholder returns, detailing cash, investments, and material cash requirements [Cash and Investment Securities](index=43&type=section&id=Cash%20and%20Investment%20Securities) - Cash and cash equivalents were **$1,585.9 million** as of June 30, 2023, an increase from **$1,291.1 million** at December 31, 2022[206](index=206&type=chunk) - Investment securities, primarily highly-rated state and municipal debt securities, totaled **$1,419.7 million** as of June 30, 2023, up from **$1,333.4 million** at December 31, 2022[208](index=208&type=chunk) - The investment portfolio is diversified, with no single issuer or security representing more than **10%** of the total[209](index=209&type=chunk) [Cash Flows from Operating Activities](index=44&type=section&id=Cash%20Flows%20from%20Operating%20Activities) - Cash provided by operating activities decreased to **$264.0 million** for the six months ended June 30, 2023, from **$306.8 million** in the prior year, primarily due to increased transition tax payments[211](index=211&type=chunk) [Financing Resources](index=44&type=section&id=Financing%20Resources) - Outstanding borrowings at par value totaled **$2,824.6 million** as of June 30, 2023, predominantly unsecured fixed-rate notes[212](index=212&type=chunk) - The Company has a **$1.5 billion** revolving credit facility, expiring in January 2025, with no outstanding borrowings as of June 30, 2023[204](index=204&type=chunk)[214](index=214&type=chunk) - Commercial paper borrowings outstanding were **$674.6 million** as of June 30, 2023, with a weighted-average annual interest rate of approximately **5.3%** and a weighted-average term of approximately **5 days**[215](index=215&type=chunk) [Cash Priorities](index=44&type=section&id=Cash%20Priorities) - The Company aims to maintain strong liquidity and a capital structure consistent with investment-grade credit ratings, supported by existing cash, operating cash flows, commercial paper markets, and the Revolving Credit Facility[217](index=217&type=chunk) [Capital Expenditures](index=45&type=section&id=Capital%20Expenditures) - Total capital expenditures for contract costs, property and equipment, and software were **$90.1 million** for the six months ended June 30, 2023, compared to **$84.3 million** in the prior year[220](index=220&type=chunk) [Share Repurchases and Dividends](index=45&type=section&id=Share%20Repurchases%20and%20Dividends) - No shares were repurchased under the **$1.0 billion** share repurchase authorization during the six months ended June 30, 2023, with **$648.2 million** remaining available[221](index=221&type=chunk) - Quarterly cash dividends of **$0.235 per common share** were declared in the first and second quarters of 2023, totaling **$176.0 million**[222](index=222&type=chunk) [Material Cash Requirements](index=45&type=section&id=Material%20Cash%20Requirements) - The next scheduled principal payment on outstanding notes is in 2025[223](index=223&type=chunk) - Approximately **$358 million** of the 2017 United States federal tax liability remained as of June 30, 2023, with **$119.5 million** paid in Q2 2023, and remaining installments due through 2025[224](index=224&type=chunk) - The Company had approximately **$160 million** in outstanding letters of credit and bank guarantees as of June 30, 2023[228](index=228&type=chunk) - Unrecognized income tax benefits totaled **$297.5 million** as of June 30, 2023, with uncertain timing for cash payments[229](index=229&type=chunk) [Critical Accounting Policies and Estimates](index=46&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) - There were no material changes to the Company's critical accounting policies and estimates, which include income taxes, derivative financial instruments, goodwill, and other intangible assets[230](index=230&type=chunk) [Risk Management](index=46&type=section&id=Risk%20Management) Details strategies for managing market risks, including foreign currency, interest rates, and credit risk, through business structure, hedging, and diversification [Foreign Currency Exchange Rates](index=46&type=section&id=Foreign%20Currency%20Exchange%20Rates) - The Company manages foreign exchange risk through its business structure (e.g., settling with agents in major currencies), short-duration foreign currency forward contracts for settlement assets/obligations, and longer-term forward contracts (up to 36 months) for forecasted revenues[232](index=232&type=chunk)[233](index=233&type=chunk) - A hypothetical **10%** strengthening or weakening of the United States dollar would result in an approximate **$17 million** decrease/increase to pre-tax annual income based on unhedged exposure[235](index=235&type=chunk) [Interest Rates](index=47&type=section&id=Interest%20Rates) - The Company has approximately **$2.6 billion** in interest-bearing assets, with about **$1.3 billion** bearing floating rates (cash, money market, variable-rate securities) and the remainder at fixed rates (debt securities)[236](index=236&type=chunk)[237](index=237&type=chunk) - Borrowings under the commercial paper program are effectively floating rate. The weighted-average effective rate on total borrowings was approximately **4.1%** as of June 30, 2023[238](index=238&type=chunk)[239](index=239&type=chunk) - A hypothetical **100 basis point** increase/decrease in interest rates would result in an approximate **$7 million** decrease/increase to pre-tax income from borrowings and an offsetting **$13 million** increase/decrease from floating-rate cash and investments[240](index=240&type=chunk) [Credit Risk](index=48&type=section&id=Credit%20Risk) - Credit risk for investment securities, money market funds, and derivatives is managed through reviewing concentrations, trading levels, credit spreads, ratings, and diversifying investments[241](index=241&type=chunk) - Credit risk related to agent receivables and consumer transactions (especially digital channels) is managed through credit reviews and monitoring. Losses have been less than **2%** of consolidated revenues[242](index=242&type=chunk)[243](index=243&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=48&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Incorporates by reference the detailed discussion on market risk management, including foreign currency, interest rates, and credit risk, from the MD&A section [Item 4. Controls and Procedures](index=48&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls and procedures as of June 30, 2023, with no material changes in internal control over financial reporting [Evaluation of Disclosure Controls and Procedures](index=48&type=section&id=Evaluation%20of%20Disclosure%20Controls%20and%20Procedures) - Management concluded that the disclosure controls and procedures were effective as of June 30, 2023[245](index=245&type=chunk) [Changes in Internal Control over Financial Reporting](index=48&type=section&id=Changes%20in%20Internal%20Control%20over%20Financial%20Reporting) - There were no material changes in internal control over financial reporting during the fiscal quarter ended June 30, 2023[246](index=246&type=chunk) [Review Report of Independent Registered Public Accounting Firm](index=49&type=section&id=Review%20Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Ernst & Young LLP reviewed interim financial statements, finding no material modifications for U.S. GAAP conformity, and confirmed the December 31, 2022 balance sheet is fairly stated [PART II OTHER INFORMATION](index=50&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) Incorporates by reference the discussion of legal proceedings from Note 6, Commitments and Contingencies, detailing ongoing lawsuits and potential losses [Item 1A. Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) States no material changes to risk factors previously described in the Annual Report on Form 10-K for the year ended December 31, 2022 [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) Details common stock repurchases during the quarter ended June 30, 2023, including shares withheld for tax obligations and remaining repurchase authorization - Total shares purchased during the quarter ended June 30, 2023, were **30,414** at an average price of **$11.43**, primarily representing shares withheld from employees for tax obligations[256](index=256&type=chunk) - As of June 30, 2023, **$648.2 million** remained available under the **$1.0 billion** common stock repurchase authorization through December 31, 2024. No shares were repurchased under this authorization during the quarter[257](index=257&type=chunk) [Item 3. Defaults Upon Senior Securities](index=50&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) States there were no defaults upon senior securities [Item 4. Mine Safety Disclosures](index=50&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) States this item is not applicable to the company [Item 5. Other Information](index=50&type=section&id=Item%205.%20Other%20Information) Confirms no directors or executive officers adopted, modified, or terminated Rule 10b5-1 trading plans or non-Rule 10b5-1 arrangements during the quarter [Item 6. Exhibits](index=51&type=section&id=Item%206.%20Exhibits) Provides a list of exhibits filed or furnished with the Form 10-Q, including amendments, severance policy, certifications, and XBRL documents [SIGNATURES](index=52&type=section&id=SIGNATURES) Contains signatures of the Registrant's authorized officers, including CEO, CFO, and Chief Accounting Officer, certifying the report
Western Union(WU) - 2023 Q1 - Earnings Call Transcript
2023-05-03 02:58
The Western Union Company Q1 2023 Earnings Call Transcript May 2, 2023 4:30 PM ET Company Participants Tom Hadley - Investor Relations Devin McGranahan - President, Chief Executive Officer and Director Matt Cagwin - Chief Financial Officer Conference Call Participants Rayna Kumar - UBS Darrin Peller - Wolfe Research Ken Suchoski - Autonomous Tien Huang - JPMorgan Will Nance - Goldman Sachs Ramsey Assal - Barclays Vasu Govil - KBW Bryan Keane - Deutsche Bank Andrew Schmidt - Citi Jeff Goldstein - Morgan Stan ...
Western Union(WU) - 2023 Q1 - Quarterly Report
2023-05-01 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 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 Number: 001-32903 THE WESTERN UNION COMPANY (Exact name of registrant as specified in its charter) Delaware (State or Other Jurisdiction of Incorporat ...