International Money Express(IMXI) - 2024 Q4 - Annual Results

Executive Summary / Highlights Full-Year 2024 Financial Highlights Intermex achieved approximately 10% diluted EPS growth in FY2024, with adjusted diluted EPS reaching $2.14 and adjusted EBITDA growing 1.1% to $121.3 million, demonstrating solid operational results Full-Year 2024 Financial Highlights | Metric | Amount (Millions USD) | Diluted EPS (USD) | Adjusted Diluted EPS (USD) | Adjusted EBITDA (Millions USD) | | :--- | :--- | :--- | :--- | :--- | | FY 2024 | | | | | | Revenue | 658.6 | 1.79 | 2.14 | 121.3 | Fourth Quarter 2024 Financial Highlights In Q4 2024, Intermex reported $164.8 million in revenue, $15.4 million in net income, and $0.49 diluted EPS, with adjusted diluted EPS at $0.57 and adjusted EBITDA at $30.9 million Fourth Quarter 2024 Financial Highlights | Metric | Amount (Millions USD) | Diluted EPS (USD) | Adjusted Diluted EPS (USD) | Adjusted EBITDA (Millions USD) | | :--- | :--- | :--- | :--- | :--- | | Q4 2024 | | | | | | Revenue | 164.8 | 0.49 | 0.57 | 30.9 | Strategic Direction & CEO Commentary CEO Bob Lisy highlighted strong EPS growth and solid operational performance, announcing a strategic shift to invest in and expand high-margin digital businesses while leveraging the strong retail model, and suspending the strategic alternatives review - The company will invest in and expand high-margin digital businesses while continuing to leverage its strong retail model[1][6] - The Board has decided to suspend the strategic alternatives review, believing that continuing to execute the company's strategic plan is in the best interest of all shareholders[1][5] Suspension of Strategic Alternatives Review Board Decision and Rationale The Board, through its independent Strategic Alternatives Committee and advisors, conducted a comprehensive review of strategic alternatives since November 2024, but the process did not yield a definitive offer superior in value to Intermex's current business model and strategic plan, leading to the decision to suspend the review - The Board, through its independent Strategic Alternatives Committee (SAC) and advisors, conducted a comprehensive evaluation of strategic alternatives[2] - The evaluation did not receive a definitive offer superior in value to the company's current business model and strategic plan, including significant investments in digital services[2][4] Future Focus Following the suspension of the strategic review, Intermex will focus on executing its strategic plan as an independent public company, driving growth and value through investments in expanding digital services and products, and providing shareholder liquidity via its share repurchase program - The company will continue to focus on executing its strategic plan, including driving growth and enhancing value as an independent public company[5] - Plans include utilizing cash resources and liquidity to invest in the expansion of digital services and products to increase revenue and improve profit margins[6] - Shareholder liquidity will be provided through the previously authorized share repurchase program[6] Financial Results Full-Year 2024 Financial Performance In FY2024, Intermex's revenue remained largely flat due to a slowdown in the Latin American remittance market, partially offset by agent base and digital business growth, with net income slightly down but diluted EPS up due to share repurchases, and adjusted EBITDA showing modest growth Revenue and Principal Sent | Metric | FY 2024 (Millions USD) | FY 2023 (Millions USD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Revenue | 658.6 | 658.7 | 0.0% | | Principal Sent | 24,400 | 24,600 | -0.8% | | Foreign Exchange Gains | 88.9 | 87.9 | +1.1% | - Revenue remained largely flat, primarily impacted by a general slowdown in the Latin American remittance market, partially offset by growth in the agent base and digital business[7] Net Income and EPS | Metric | FY 2024 (Millions USD) | FY 2023 (Millions USD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Net Income | 58.8 | 59.5 | -1.2% | | Diluted EPS | 1.79 | 1.63 | +9.8% | - Net income decreased primarily due to revenue factors, partially offset by lower agent and bank service fees, reduced salaries and benefits, and lower income tax provision[8] - Diluted EPS benefited from a reduction in share capital due to the company's share repurchases[8] Adjusted Net Income and Adjusted EPS | Metric | FY 2024 (Millions USD) | FY 2023 (Millions USD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Adjusted Net Income | 70.4 | 71.0 | -0.8% | | Adjusted Diluted EPS | 2.14 | 1.95 | +9.7% | - Adjusted diluted EPS benefited from a reduction in share capital due to the company's share repurchases[9] Adjusted EBITDA | Metric | FY 2024 (Millions USD) | FY 2023 (Millions USD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | 121.3 | 120.0 | +1.1% | Fourth Quarter 2024 Financial Performance In Q4 2024, Intermex's revenue declined due to a slowdown in the Latin American retail remittance market, despite strong digital remittance revenue growth, with net income and adjusted EBITDA decreasing, while diluted EPS was flat and adjusted diluted EPS slightly increased, both benefiting from share repurchases Revenue and Transactions | Metric | Q4 2024 (Millions USD) | Q4 2023 (Millions USD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Total Revenue | 164.8 | 171.8 | -4.1% | | Digital Remittance Revenue Growth | - | - | +48.3% | | Transactions (Millions) | 14.8 | 15.3 | -3.2% | | Principal Sent (Billions USD) | 6.1 | 6.2 | -1.6% | - Revenue decline primarily due to a general slowdown in the Latin American retail remittance market[11] - Digital remittance revenue grew by 48.3%, positively impacting overall revenue[11] Net Income and EPS | Metric | Q4 2024 (Millions USD) | Q4 2023 (Millions USD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Net Income | 15.4 | 17.5 | -12.1% | | Diluted EPS | 0.49 | 0.49 | 0.0% | - Net income decreased primarily due to revenue factors and the inclusion of $1.7 million in transaction costs related to the strategic alternatives review[12] - Diluted EPS benefited from a reduction in share capital due to the company's share repurchases[12] Adjusted Net Income and Adjusted EPS | Metric | Q4 2024 (Millions USD) | Q4 2023 (Millions USD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Adjusted Net Income | 17.8 | 19.9 | -10.6% | | Adjusted Diluted EPS | 0.57 | 0.56 | +1.8% | - Adjusted diluted EPS benefited from a reduction in share capital due to the company's share repurchases[13] Adjusted EBITDA | Metric | Q4 2024 (Millions USD) | Q4 2023 (Millions USD) | Y-o-Y Change | | :--- | :--- | :--- | :--- | | Adjusted EBITDA | 30.9 | 33.3 | -7.2% | - Adjusted EBITDA decreased primarily due to the aforementioned business operating results[14] Other Financial Information Cash and Free Cash Flow As of Q4 2024, Intermex held $130.5 million in cash and cash equivalents, with net free cash flow generated in Q4 at $4.5 million, a decrease from the prior year, primarily due to the acquisition of the Amigo Paisano brand and strategic alternatives review transaction costs Cash and Free Cash Flow | Metric | End of Q4 2024 (Millions USD) | End of Q4 2023 (Millions USD) | | :--- | :--- | :--- | | Cash and Cash Equivalents | 130.5 | 239.2 | | Net Free Cash Flow (Q4) | 4.5 | 17.2 | - Net free cash flow decreased primarily due to the $12 million acquisition of the Amigo Paisano brand and $1.7 million in transaction costs incurred in Q4[15] Share Repurchase Program Intermex repurchased 1,025,821 shares of common stock for $20.2 million in Q4 2024, and 3,765,320 shares for $75.1 million for the full FY2024, with $63.2 million remaining under the program for future repurchases, expected to resume this quarter - Repurchased 1,025,821 shares of common stock for $20.2 million in Q4 2024[16] - Repurchased 3,765,320 shares for $75.1 million for the full FY2024[16] - An additional $63.2 million remains available for future repurchases under the program, with repurchases expected to resume this quarter[16] Restructuring Costs For the year ended December 31, 2024, the company incurred approximately $3.1 million in restructuring costs, primarily related to its international operations for workforce restructuring, streamlining operational processes, and technology integration - Restructuring costs for FY2024 were approximately $3.1 million[17] - Restructuring expenses primarily related to the company's international operations, including workforce restructuring, streamlining operational processes, and technology integration[17] Guidance Full-Year 2025 Guidance Intermex provided FY2025 guidance, projecting revenue between $657.5 million and $677.5 million, diluted EPS between $1.76 and $1.91, adjusted diluted EPS between $2.09 and $2.26, and adjusted EBITDA between $113.8 million and $117.3 million, reflecting significant investments in digital customer acquisition and retail operations Full-Year 2025 Guidance | Metric | FY 2025 Guidance | | :--- | :--- | | Revenue | $657.5 million - $677.5 million | | Diluted EPS | $1.76 - $1.91 | | Adjusted Diluted EPS | $2.09 - $2.26 | | Adjusted EBITDA | $113.8 million - $117.3 million | - Guidance reflects significant proactive investments in digital customer acquisition and increased personnel and marketing to support the profitable retail business[7] First Quarter 2025 Guidance The company expects Q1 2025 revenue between $145.5 million and $149.9 million, diluted EPS between $0.32 and $0.34, adjusted diluted EPS between $0.40 and $0.43, and adjusted EBITDA between $23.3 million and $24.0 million First Quarter 2025 Guidance | Metric | Q1 2025 Guidance | | :--- | :--- | | Revenue | $145.5 million - $149.9 million | | Diluted EPS | $0.32 - $0.34 | | Adjusted Diluted EPS | $0.40 - $0.43 | | Adjusted EBITDA | $23.3 million - $24.0 million | Non-GAAP Financial Measures Definition and Purpose Intermex utilizes non-GAAP financial measures like adjusted net income, adjusted EPS, adjusted EBITDA, adjusted EBITDA margin, and net free cash flow to assess business performance, aiding analysts and investors by excluding non-core transactions and highlighting trends, but these are not substitutes for GAAP measures - Non-GAAP financial measures include adjusted net income, adjusted EPS, adjusted EBITDA, adjusted EBITDA margin, and net free cash flow[19] - These metrics are used to evaluate the company's financial performance, helping analysts and investors understand operational trends by excluding the impact of certain transactions beyond management's control[19] - Non-GAAP financial measures should not be considered as substitutes for or superior to operating income, net income, net income margin, or EPS, and may be calculated differently by other companies[24][25] Reconciliation Statement The company provides detailed reconciliation tables from the most comparable GAAP measures to adjusted net income, adjusted EBITDA, net free cash flow, and adjusted EPS and adjusted EBITDA margin; however, a quantitative reconciliation for projected adjusted EBITDA and adjusted diluted EPS to the most comparable GAAP measures is not feasible due to inherent difficulties in forecasting and quantifying certain GAAP adjustments - Detailed reconciliation tables for GAAP to non-GAAP measures are provided following the consolidated financial statements[26] - Due to inherent difficulties in forecasting and quantifying certain GAAP adjustment items (e.g., acquisition costs, share-based compensation, tax impacts), a quantitative reconciliation of projected adjusted EBITDA and adjusted diluted EPS to the most comparable GAAP measures cannot be provided without unreasonable effort[26] Company Information & Forward-Looking Statements Investor and Analyst Conference Call Intermex will host a conference call and webcast presentation today at 9:00 AM ET to discuss its financial results and operational achievements, with interested parties able to participate via the company's investor relations website or by registering for the call - Intermex will host a conference call and webcast presentation today at 9:00 AM ET[27] - Live and archived webcasts can be accessed via the Intermex investor relations website (https://investors.intermexonline.com/)[28](index=28&type=chunk) About International Money Express, Inc. Founded in 1994, Intermex leverages proprietary technology to enable consumers to send money from the US, Canada, Spain, Italy, UK, and Germany to over 60 countries, facilitating digital money movement through an agent retail network, company-owned stores, mobile app, and website, with transactions completed at thousands of global retail and bank locations - Intermex, founded in 1994, provides remittance services utilizing proprietary technology[30] - Services cover money transfers from the US, Canada, Spain, Italy, UK, and Germany to over 60 countries[30] - Digital money movement is facilitated through an agent retail network, company-owned stores, mobile application, and website, with transactions completed at thousands of global retail and bank locations[30] Safe Harbor Compliance Statement This press release contains forward-looking statements subject to various risks, uncertainties, estimates, and contingencies that could cause actual results to differ materially from expectations, including risks related to digital service expansion, new technologies, economic factors, international politics, foreign exchange fluctuations, regulatory changes, and cybersecurity attacks - This press release contains forward-looking statements, subject to various risks, uncertainties, estimates, and contingencies that could cause actual results to differ materially from expectations[27] - Key risk factors include customer acceptance of digital services and infrastructure, disruption from new technologies, loss of key agent business, market competition, economic factors (e.g., inflation, recession risk), international political factors, foreign exchange fluctuations, changes in laws and regulations, changes in immigration laws, and cybersecurity attacks[27][29] Consolidated Financial Statements Consolidated Balance Sheets The consolidated balance sheets present Intermex's financial position as of December 31, 2024, and December 31, 2023, detailing assets, liabilities, and stockholders' equity Consolidated Balance Sheets | (Thousands USD) | December 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Assets | | | | Cash and Cash Equivalents | 130,503 | 239,203 | | Total Assets | 462,377 | 576,812 | | Liabilities and Stockholders' Equity | | | | Total Liabilities | 327,453 | 427,775 | | Total Stockholders' Equity | 134,924 | 149,037 | Consolidated Statements of Income The consolidated statements of income present Intermex's financial performance for the three months and year ended December 31, 2024, and comparable periods, including revenue, operating expenses, net income, and earnings per share Consolidated Statements of Income | (Thousands USD, except per share data) | Q4 2024 | Q4 2023 | FY 2024 | FY 2023 | | :--- | :--- | :--- | :--- | :--- | | Total Revenue | 164,758 | 171,783 | 658,649 | 658,735 | | Operating Income | 24,702 | 27,657 | 95,016 | 95,490 | | Net Income | 15,385 | 17,499 | 58,821 | 59,515 | | Diluted EPS | 0.49 | 0.49 | 1.79 | 1.63 | Non-GAAP Reconciliations Tables Net Income to Adjusted Net Income Reconciliation This table details the reconciliation process from GAAP net income to adjusted net income, including adjustments for share-based compensation, restructuring costs, transaction costs, and intangible asset amortization, along with their tax impacts - The detailed reconciliation table illustrates the calculation process from GAAP net income to adjusted net income, including all adjustments[37] GAAP EPS to Adjusted EPS Reconciliation This section provides a reconciliation table from GAAP basic and diluted EPS to the corresponding adjusted non-GAAP EPS, detailing the impact of each adjustment on earnings per share - The reconciliation table illustrates the calculation process from GAAP basic and diluted EPS to adjusted basic and diluted EPS[40][41] Net Income to Adjusted EBITDA Reconciliation This table reconciles GAAP net income to adjusted EBITDA by adding back interest expense, income tax provision, depreciation and amortization, and other non-operating adjustments - The reconciliation table illustrates the calculation process from GAAP net income to adjusted EBITDA, including the add-back of interest expense, income tax provision, depreciation, and amortization[43] Net Income Margin to Adjusted EBITDA Margin Reconciliation This table presents the reconciliation process from net income margin to adjusted EBITDA margin, showing the percentage impact of each adjustment on profitability - The reconciliation table illustrates the calculation process from net income margin to adjusted EBITDA margin, including the percentage impact of each adjustment[46] Net Income to Net Free Cash Generated Reconciliation This table reconciles net income to net free cash flow, adjusting for non-cash items like depreciation, amortization, share-based compensation, and provision for credit losses, and considering cash used in investing activities and term loan repayments - The reconciliation table illustrates the calculation process from net income to net free cash flow, including non-cash item adjustments and cash flow from investing activities[47]