International Money Express(US:IMXI)2025-11-10 21:06Financial Performance - Total revenues for Q3 2025 were $154.9 million, a decrease of 9.9% compared to $171.9 million in Q3 2024[17]. - Net income for Q3 2025 was $4.96 million, down 71.2% from $17.3 million in Q3 2024[17]. - Operating income decreased to $10.54 million in Q3 2025, compared to $27.83 million in Q3 2024, reflecting a decline of 62.1%[17]. - Net income for the nine months ended September 30, 2025, was $23,739,000, a decrease of 45.4% compared to $43,436,000 for the same period in 2024[21]. - The company reported a net cash provided by operating activities of $52,509,000 for the nine months ended September 30, 2025, compared to $57,968,000 in 2024, indicating a decline of 9.5%[21]. - Basic earnings per share for the three months ended September 30, 2025, was $0.17, compared to $0.53 for the same period in 2024[101]. - Diluted earnings per share for the nine months ended September 30, 2025, was $0.79, down from $1.30 in 2024[101]. Assets and Liabilities - Cash and cash equivalents increased to $151.6 million as of September 30, 2025, up from $130.5 million at the end of 2024[15]. - Total assets rose to $478.7 million as of September 30, 2025, compared to $462.4 million at the end of 2024[16]. - Total liabilities increased slightly to $329.0 million as of September 30, 2025, from $327.5 million at the end of 2024[16]. - Accounts receivable, net of allowance for credit losses, increased to $119.2 million as of September 30, 2025, from $107.1 million at December 31, 2024, marking an increase of 11.0%[48]. - The allowance for credit losses increased to $6.1 million as of September 30, 2025, compared to $4.4 million at the end of September 2024, reflecting a rise of 38.1%[52]. - Total lease liabilities decreased to $23,203,000 as of September 30, 2025, from $25,050,000 as of December 31, 2024, indicating a 7.4% reduction[59]. Credit and Compliance - The company reported a provision for credit losses of $2.15 million in Q3 2025, compared to $1.67 million in Q3 2024[17]. - The company experienced a provision for credit losses of $6,078,000 for the nine months ended September 30, 2025, compared to $5,036,000 in 2024, representing an increase of 20.7%[21]. - The company is focused on enhancing its risk management and compliance policies to mitigate transaction monitoring risks[13]. - The company is in compliance with regulatory requirements regarding minimum tangible net worth and liquid assets as of September 30, 2025[115]. Mergers and Acquisitions - The company entered into a Merger Agreement with The Western Union Company, where each share of the company's common stock will be converted into $16.00 in cash[28]. - The Merger Agreement is subject to customary closing conditions, including stockholder approval and regulatory clearances[29]. - Transaction costs related to the pending merger with Western Union were $5.4 million for the three months ended September 30, 2025, compared to $50.0 thousand in 2024[42]. Shareholder Activities - The company repurchased 1,348,214 shares of its common stock for an aggregate purchase price of $16.3 million during the nine months ended September 30, 2025[97]. - As of September 30, 2025, there was $48.3 million available for future share repurchases under the Repurchase Program[97]. - The company acquired treasury stock at a cost of $16,334,000 during the nine months ended September 30, 2025, compared to $54,940,000 in the same period of 2024, showing a reduction of 70.3%[21]. Expenses and Costs - The company reported depreciation and amortization expenses of $12,493,000 for the nine months ended September 30, 2025, compared to $9,981,000 in 2024, an increase of 25.3%[21]. - Cash paid for interest was $8,004,000 for the nine months ended September 30, 2025, compared to $7,939,000 in 2024, reflecting a slight increase of 0.8%[22]. - The company incurred restructuring costs of approximately $0.3 million for the nine months ended September 30, 2025, compared to $2.5 million for the same period in 2024[39]. Foreign Operations and Currency - Revenues from foreign subsidiaries represented approximately 3% of consolidated revenues for the nine months ended September 30, 2025[259]. - Foreign currency exposure included open tom and spot foreign exchange contracts for Mexican pesos and Guatemalan quetzales amounting to approximately $16.6 million and $12.7 million, respectively[256]. - The average exchange rate for the U.S. dollar to Mexican Peso was 19.50 for the nine months ended September 30, 2025, compared to 17.71 for the same period in 2024[260]. Future Outlook - The company plans to expand into new geographic markets and product markets to drive future growth[13]. - The company is currently evaluating the impact of new accounting standards on its consolidated financial statements, including ASU 2023-09 and ASU 2024-03[35][36].