International Money Express(US:IMXI)2024-11-08 12:31Financial Performance - Total revenues for the three months ended September 30, 2024, were $171,947 thousand, a slight decrease of 0.3% compared to $172,437 thousand for the same period in 2023[13]. - Net income for the three months ended September 30, 2024, was $17,297 thousand, representing an increase of 16.6% from $14,832 thousand in the prior year[13]. - Operating income increased to $27,825 thousand for the three months ended September 30, 2024, up from $24,252 thousand in the same period last year, reflecting a growth of 10.6%[13]. - Basic earnings per share for the three months ended September 30, 2024, were $0.53, up from $0.42 in the prior year, reflecting a growth of 26.2%[13]. - Net income for the nine months ended September 30, 2024, was $43,436, compared to $42,016 for the same period in 2023, reflecting a year-over-year increase of 3.4%[18]. - Total revenues for the nine months ended September 30, 2024, were $493.9 million, a rise of $6.9 million, or 1.4%, from $486.9 million for the same period in 2023[169]. - Basic Earnings per Share for the nine months ended September 30, 2024, was $1.32, representing an increase of $0.15, or 12.8%, compared to $1.17 for the same period in 2023[181]. - Adjusted Net Income for the nine months ended September 30, 2024, was $52.6 million, an increase of $1.6 million, or 3.1%, from $51.0 million for the same period in 2023[183]. Cash and Assets - Cash and cash equivalents decreased to $156,611 thousand as of September 30, 2024, down from $239,203 thousand at the end of 2023, a decline of 34.5%[12]. - Total assets decreased to $480,923 thousand as of September 30, 2024, compared to $576,812 thousand at the end of 2023, a reduction of 16.6%[12]. - The company reported a net accounts receivable of $126.3 million as of September 30, 2024, down from $155.2 million at the end of 2023[42]. - The company’s retained earnings increased to $242,085 thousand as of September 30, 2024, compared to $198,649 thousand at the end of 2023, an increase of 21.8%[12]. - Cash flows from operating activities for the nine months ended September 30, 2024, were $57,968, a decrease from $82,440 in the prior year[18]. Liabilities and Debt - Total current liabilities decreased to $180,890 thousand as of September 30, 2024, down from $223,373 thousand at the end of 2023, a decrease of 19.0%[12]. - The company’s long-term liabilities decreased to $158,188 thousand as of September 30, 2024, from $204,402 thousand at the end of 2023, a decline of 22.6%[12]. - As of September 30, 2024, the Company had a total debt of $138.2 million, an increase from $114.0 million as of December 31, 2023[63]. - The Second Amended and Restated Credit Agreement provides for a new $425.0 million multi-currency revolving credit facility, maturing on August 29, 2029[66]. - The Company is required to maintain a quarterly minimum interest coverage ratio of 3.00:1.00 and a maximum consolidated leverage ratio of 3.50[73]. Expenses - The company reported depreciation and amortization expenses of $9,981 for the nine months ended September 30, 2024, compared to $9,511 in 2023[18]. - The provision for credit losses increased to $5,036 in 2024 from $3,770 in 2023, indicating a rise of 33.5%[18]. - Salaries and benefits decreased to $17.2 million for the three months ended September 30, 2024, down by $0.6 million, or 3%, from $17.8 million for the same period in 2023[142]. - Other selling, general and administrative expenses were $12.1 million for the three months ended September 30, 2024, a decrease of $0.8 million, or 6.2%, from $12.9 million for the same period in 2023[143]. - Interest expense increased by $0.4 million or 14.3% to $3.2 million for the three months ended September 30, 2024, compared to $2.8 million for the same period in 2023[147]. Acquisitions and Investments - The Company completed the acquisition of a money services entity in the UK for approximately $1.4 million in cash, enabling entry into new markets for outbound remittance services[29][30]. - For the three months ended September 30, 2024, the acquired entity contributed $95.0 thousand in revenue and incurred a net loss of $65.0 thousand[33]. - The goodwill from the acquisition is valued at $1.2 million, reflecting the expected synergies from the combined operations[32]. Stock and Share Repurchase - The company repurchased 2,739,499 shares of its common stock for an aggregate purchase price of $54.9 million during the nine months ended September 30, 2024, compared to 1,734,481 shares for $40.6 million in the same period of 2023, representing a 35.2% increase in repurchase value[93]. - As of September 30, 2024, there was $80.0 million available for future share repurchases under the Repurchase Program[93]. - The Company has a stock repurchase program authorized for up to $200.7 million, with no expiration date[91]. Market and Economic Conditions - Money remittance services to Latin America and the Caribbean are the primary source of revenue, with significant reliance on consumers without traditional banking relationships[109]. - Political and economic instability in key Latin American markets continues to affect business, with high inflation and low consumer confidence being notable challenges[118]. - The company operates in all 50 states in the U.S., two U.S. territories, and eight other countries, providing remittance services to over 60 countries[108].