Financial Performance Highlights - Revenue increased by 130% to $773 million in Q1 2020 compared to $683 million in Q1 2019 [24, 16] - Adjusted EBITDA grew by 228% to $132 million in Q1 2020 compared to $108 million in Q1 2019 [6, 24, 20] - Net income increased by 802% to $57 million in Q1 2020 compared to $32 million in Q1 2019 [6, 24] - Free cash flow was estimated at $73 million in Q1 2020, a 52% increase from $48 million in Q1 2019 [7] - Adjusted EBITDA margin expanded by 136 basis points year-over-year to 171% [24] Operational Performance - Remittance volume increased by 173% [24] - The company converts 55% of Adjusted EBITDA to Free Cash after taxes, investments, and debt service [7] - Approximately 95% of independent agent retailers remained open for business during the COVID-19 pandemic [4] Market Position - Intermex's market share in Mexico was 180% in 2019 [22] - Intermex's market share in Guatemala was 254% in 2019 and 258% in Q1 2020 [22] COVID-19 Response - The company implemented social-distancing practices at Mexico and Guatemala call centers [4] - All headquarters employees were empowered to work from home efficiently [4] - All 33 Intermex operated stores were temporarily closed [4]

Financial Performance Highlights - Revenue for Q1 2020 reached $77.3 million, a 13% increase compared to $68.3 million in Q1 2019[21, 18] - Remittance volume in Q1 2020 was $2.6 billion, up 17.3% from $2.2 billion in Q1 2019[21, 15] - Adjusted EBITDA for Q1 2020 grew to $13.2 million, a 22.8% increase from $10.8 million in Q1 2019[21, 19] - Net income for Q1 2020 increased significantly to $5.7 million, an 80.2% rise compared to $3.2 million in Q1 2019[21, 5] - Free cash flow was $7.3 million in Q1 2020, a 52% increase from $4.8 million in Q1 2019[7, 35] Business Trends - Transaction growth saw a rebound, from -7.2% in April 2020 to 7.3% in May 2020[6] - Volume growth also recovered, from -7.2% in April 2020 to 8.7% in May 2020[6] Profitability and Efficiency - Adjusted EBITDA margin expanded by 136 basis points year-over-year to 17.1%[23] - The company is converting 55% of Adjusted EBITDA to Free Cash, after taxes, investments and debt service[7]

Second Quarter 2020 Performance - Revenue reached $85.1 million, a 2.9% increase compared to the second quarter of 2019[31] - Remittance volume totaled $2.8 billion, representing a 5.3% growth from the prior year period[31] - Adjusted EBITDA amounted to $17.4 million, a 6.8% increase year-over-year[31] - Net income increased by 26.9% to $9.0 million[31] - Adjusted EBITDA margin expanded by 75 basis points year-over-year to 20.4%[33] Growth Initiatives - Online business transactions grew by 884% in the second quarter of 2020 compared to the second quarter of 2019[14] - Online business customers increased by 608% in the second quarter of 2020 compared to the second quarter of 2019[14] - Emerging LATAM corridors experienced revenue growth of 17% from Q1 to Q2, now representing approximately 7% of total Intermex Revenue[16] Capital & Liquidity - Estimated free cash generated was $10.0 million in Q2 2020, a 16.4% increase of $1.4 million from Q2 2019[26] - The company converted 58% of Adjusted EBITDA to Free Cash after taxes, investments and debt service in Q2 2020[26] Third Quarter 2020 Guidance - The company projects revenue of $88 million – $91 million[36] - The company anticipates Adjusted EBITDA of $17 million - $18 million[36]

Core Insights - Western Union (NYSE: WU) is identified as a unique investment opportunity, particularly for those interested in turnaround situations, despite the company not meeting its initial targets [1] - The company has made significant progress in its operations, indicating potential for future growth and value creation [1] Company Analysis - Western Union has been underperforming against its initial targets but is showing signs of improvement, which may attract investors looking for recovery plays [1] - The focus on companies with robust, consistent, and predictable cash flows is emphasized, suggesting that Western Union may fit this criterion as it seeks to stabilize and grow [1] Market Context - The analysis reflects a broader investment philosophy that values both fundamental analysis and macroeconomic factors, which could influence Western Union's performance in the market [1] - The potential for market cycles to affect valuation discounts or premiums is acknowledged, indicating that Western Union's stock may be influenced by external economic conditions [1]

Core Viewpoint - International Money Express (IMXI) reported a decline in revenue and earnings per share (EPS) for the quarter ended March 2025, missing both revenue and EPS estimates [1][3]. Financial Performance - Revenue for the quarter was $144.31 million, down 4.1% year-over-year, and below the Zacks Consensus Estimate of $147 million, resulting in a surprise of -1.83% [1]. - EPS was reported at $0.35, a decrease from $0.43 in the same quarter last year, with an EPS surprise of -14.63% against the consensus estimate of $0.41 [1]. Key Metrics - Other income was reported at $3.96 million, exceeding the average estimate of $2.47 million by three analysts, reflecting a year-over-year increase of +26% [4]. - Foreign exchange gain, net, was $20.18 million, slightly below the average estimate of $21.20 million, showing a year-over-year decline of -0.8% [4]. - Revenue from wire transfer and money order fees, net, was $120.17 million, also below the average estimate of $125.87 million, representing a year-over-year decrease of -5.3% [4]. Stock Performance - Shares of International Money Express have returned +8.1% over the past month, compared to a +10.6% change in the Zacks S&P 500 composite [3]. - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3].

Financial Data and Key Metrics Changes - Total revenue for Q1 2025 was $144.3 million, down from $150.4 million in the same period last year [19] - Net income was $7.8 million, with adjusted EBITDA at $21.6 million and adjusted diluted EPS at $0.35 per share, all showing year-over-year declines [10][24] - Total volume sent increased by 4%, while total transactions sent decreased by over 5% year-over-year [19][20] Business Line Data and Key Metrics Changes - Retail transactions remain the foundation of the business, but the number of transactions decreased while the principal amount sent increased [10][11] - Digital transactions grew nearly 70% year-over-year, indicating strong growth in the digital segment [13][21] - The company invested more in digital marketing than ever before, which is expected to continue driving growth [13][15] Market Data and Key Metrics Changes - Four out of five top markets saw a decrease in transactions sent, despite total volume sent increasing significantly [11][19] - The overall market for remittances to Latin America remains resilient, but consumer behavior is shifting towards sending larger amounts less frequently [8][20] Company Strategy and Development Direction - The company is focused on maintaining profitability while strategically investing in growth, particularly in the digital business [27] - The integration of La Nationale agents onto the Intermex tech platform is expected to streamline operations and reduce costs [16] - The company is committed to enhancing its omnichannel strategy, with digital being a critical component for future growth [13][18] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging economic, political, and immigration backdrop affecting the business model [7] - There is a belief that the current consumer behavior shift is not long-term, and the retail market will recover [34][106] - The company is revising its full-year guidance due to increased uncertainty and volatility in market conditions [25][26] Other Important Information - The company ended the quarter with $151.8 million in cash and generated over $10 million in free cash flow [17][24] - Total debt decreased to $147.4 million from $156.6 million at year-end [24] Q&A Session Summary Question: Near-term trends and behavior on retail vs digital side - Management noted that digital transactions grew much faster than retail, with digital growth at 70% year-over-year and increasing to 80% in April [32][34] Question: Revised full-year guidance and revenue trajectory - Management indicated that while revenue growth may improve, margins may not see significant improvement due to ongoing investments in digital [40][44] Question: Retention metrics and digital growth - Retail customer acquisition costs are about $2,500 per retailer, with payback in about seven months, while digital retention is slightly better than the prior quarter [50][55] Question: Monthly cadence and retail foot traffic stabilization - Management explained that they do not typically analyze monthly data due to variability but noted that retail performance is relatively stable [60][62] Question: Digital investment strategy - The company is committed to continuing its digital investments, viewing it as essential for future growth [71][72] Question: Impact of larger principal amounts on quarter performance - Management confirmed that if transactions had been at more normalized amounts, revenue could have been $7 million to $10 million higher [82]

Financial Performance - Revenue decreased by 4.1% year-over-year to $144.3 million[6] - Net income decreased by 35.5% year-over-year to $7.8 million[6] - Adjusted net income decreased by 25.9% year-over-year to $10.9 million[6] - Diluted EPS decreased by 28.6% year-over-year to $0.25[6] - Adjusted diluted EPS decreased by 18.6% year-over-year to $0.35[6] - Adjusted EBITDA decreased by 15.0% year-over-year to $21.6 million[6] Operational Metrics - Active and unique customers decreased by 1.6% year-over-year to approximately 3.5 million[9] - Money transfer transactions decreased by 5.2% year-over-year to 12.8 million[9] - Total principal sent increased by 3.7% year-over-year to $5.6 billion[9] - Digital transactions increased by 68.5% year-over-year to 0.8 million[9] - Revenue from digital transactions increased by 29.8% year-over-year to $4.9 million[9] Liquidity and Capital Allocation - Cash and cash equivalents were $152 million[19] - Undrawn revolver capacity at March 31 was $278 million[19] - Total debt was $147 million[20] - Debt to Adjusted EBITDA (trailing twelve months) was 1.3x[20] - $5.0 million was allocated to stock buybacks in Q1 2025[24] 2025 Outlook - The company projects revenue between $634.9 million and $654.2 million[27] - The company projects Adjusted EBITDA between $103.6 million and $106.8 million[27] - The company projects Diluted EPS between $1.53 and $1.65[27] - The company projects Adjusted Diluted EPS between $1.86 and $2.02[27]

Core Insights - Intermex reported solid volume growth of 3.7% year-over-year, despite a 4.1% decline in total revenues to $144.3 million due to changes in consumer sending behavior [3][4] - The company’s net income decreased by 35.5% to $7.8 million, with diluted earnings per share down 28.6% to $0.25, primarily driven by lower transaction volumes [4][5] - Adjusted net income was $10.9 million, a decrease of 25.9%, with adjusted diluted earnings per share at $0.35, down 18.6% [5][6] Financial Performance - Total principal amount transferred increased by 3.7% to $5.6 billion, while the number of money transfer transactions decreased by 5.2% to 12.8 million [3][4] - Adjusted EBITDA fell by 15.0% to $21.6 million, reflecting the same trends impacting net income [6][8] - The company ended the quarter with $151.8 million in cash and cash equivalents, and net free cash generated was $10.3 million, up from the previous year [7][8] Strategic Developments - Intermex is revising its full-year guidance due to increased market uncertainty and volatility, focusing on long-term investments in digital business offerings [10][11] - The company incurred $1.2 million in transaction costs related to strategic evaluations and $0.3 million in restructuring costs primarily for foreign operations [8][9] - Share repurchase activity resulted in a reduction of share count, positively impacting diluted earnings per share [5][9] Guidance - For full-year 2025, Intermex projects revenues between $634.9 million and $654.2 million, with diluted EPS expected to be between $1.53 and $1.65 [11][10] - Adjusted diluted EPS is forecasted to range from $1.86 to $2.02, and adjusted EBITDA is expected to be between $103.6 million and $106.8 million [11][10]

Core Insights - A reduction in migration across Latin America has led to slower growth in Western Union's remittances business in the first quarter [1][3] - The company's Consumer Money Transfer (CMT) transactions in the Americas declined by 2%, while the rest of the world saw a 10% increase, resulting in an overall 3% rise in CMT transactions [2][4] Group 1: Business Performance - The Americas contribute to half of Western Union's CMT revenue, with North America accounting for 39% and Latin America and the Caribbean (LACA) for 11% [4] - Despite challenges in the Americas, the rest of the world, which represents 50% of money transfer revenues, experienced double-digit transaction growth across all regions [4] Group 2: Migration Trends - Slower migration levels in Latin America have resulted in decreased intra-LACA remittance volumes, continuing a trend observed over several quarters [3] - The three fastest-growing corridors for the CMT business are from France to Morocco, Spain to the Dominican Republic, and the United Kingdom to Saudi Arabia [5] Group 3: Customer Resilience - During periods of rising inflation, Western Union's customers have shown more resilience compared to those of other industries, indicating the importance of remittances [6] - The company believes that even if tariffs affect consumer prices, its customers will remain relatively resilient due to the necessity of sending money home [6]

Financial Data and Key Metrics Changes - The company reported Q1 2025 revenue of $984 million, with adjusted revenue excluding Iraq declining by 2% due to a difficult comparison against the leap year last year [13][36] - Overall transaction growth was 3%, while cross-border principal growth was 10% on a constant currency basis excluding Iraq, indicating resilience in the customer base [13][36] - Adjusted earnings per share (EPS) came in at $0.41, down $0.04 compared to the same quarter last year, primarily due to the absence of higher revenues from Iraq [15][38] Business Line Data and Key Metrics Changes - The retail business in Europe showed strong performance with 10% transaction growth, leading to regional revenue growth of 5% [14][44] - The branded digital business continued to perform well with 14% transaction growth and 8% adjusted revenue growth [14][40] - Consumer services adjusted revenue was down slightly, impacted by a decline in the bill payment business in Latin America and seasonally slow performance in advertising and European travel [14][45] Market Data and Key Metrics Changes - North America transaction growth was about 1.5% lower in Q1 compared to the previous quarter, with significant declines in the US to Mexico corridor [12][22] - The Americas faced geopolitical headwinds, while the rest of the world, representing 50% of money transfer revenues, continued to perform well with double-digit transaction growth [11][25] - In Latin America, outbound remittances from Ecuador were down 25% year over year, reflecting broader trends across the region [20] Company Strategy and Development Direction - The company is focused on returning to sustainable profitable revenue growth by becoming more customer-centric and addressing past issues of overpricing and underinvestment [7][16] - The acquisition of Eurochange is seen as a strategic move to enhance distribution in the UK and expand foreign exchange services [17][29] - The company aims to leverage its globally diversified business model to capture share gains in various regions, particularly in Europe and the Middle East [10][34] Management's Comments on Operating Environment and Future Outlook - Management acknowledged a difficult macro backdrop but expressed optimism about future growth driven by new agent wins and the Eurochange acquisition [7][37] - The company expects gradual improvement in results throughout the year, with a reaffirmation of its 2025 guidance for adjusted revenue between $4.115 billion and $4.215 billion [51][52] - Management highlighted the importance of operational efficiency, having saved $30 million in Q1, and anticipates a larger portion of these efficiencies contributing to the bottom line [47][49] Other Important Information - The company generated $148 million in operating cash flow in Q1, up 50% year over year, and maintained a strong balance sheet with cash and cash equivalents of $1.3 billion [48][49] - The adjusted operating margin was 19%, down from 20% the previous year, primarily due to elevated revenues from Iraq last year [38] Q&A Session Summary Question: Pressure on North American retail side and channel remixing - Management noted a slowdown across both digital and retail in North America, with no significant channel migration observed [57][59] Question: Clarification on guidance including Eurochange acquisition - The Eurochange acquisition is included in the guidance, which reflects a leveling off in macro conditions [60][64] Question: Contributions to improvement beyond Eurochange - New partnerships in the Middle East and strength in the travel money business are expected to drive improvement [70][72] Question: Observations from April and holiday timing impact - Management indicated that holiday timing has affected early Q2 performance, but underlying trends are stabilizing [81][84] Question: Digital transaction growth and loyalty program implications - The loyalty program aims to enhance customer retention, with modest impacts expected in the short term [90][92] Question: Competitive dynamics and geopolitical impacts - There has been consolidation among competitors, but the competitive environment remains stable [100][102] Question: Applying learnings from Europe to North America - The company is in the early stages of implementing strategies from Europe in North America, with potential for upside [108][116] Question: Update on payout to account business growth - The payout to account business is in the low double-digit range for retail transactions and high thirties for digital [124][127] Question: Strength in European corridors driving growth - Growth in Europe is driven by corridors to South America, Africa, and the Middle East, with a higher mix of payout to account transactions [133][135]