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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended SeptemberJune 30, 20222023
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 No. 001-37986
INTERNATIONAL MONEY EXPRESS, INC.
(Exact name of registrant as specified in its charter)
Delaware47-4219082
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
9480 South Dixie Highway
Miami, Florida
33156
(Address of Principal Executive Offices)(Zip Code)
(305) 671-8000
(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock ($0.0001 par value)IMXINasdaq Capital Market
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes ☒  No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  Yes ☒  No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filerAccelerated filer
Non-accelerated filerSmaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act): Yes ☐  No ☒
As of November 3, 2022,July 31, 2023, there were 37,062,43835,418,293 shares of the registrant’s common stock, $0.0001 par value per share, outstanding. The registrant has no other class of common stock outstanding.



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INTERNATIONAL MONEY EXPRESS, INC.
INDEX TO FINANCIAL STATEMENTS
Page
PART 1 - FINANCIAL INFORMATION
Item 1.
Item 2.
Item 3.
Item 4.
PART II - OTHER INFORMATION
Item 1.
Item 1A.
Item 2.
Item 3.
Item 4.
Item 5.
Item 6.



Index

SPECIAL NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q may contain certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act, as amended, which reflect our current views with respect to certain events that are not historical facts but could have an effect on our future performance, including but without limitation, statements regarding our plans, objectives, financial performance, business strategies, projected results of operations, and expectations for the business of the Company.
These statements may include and be identified by words or phrases such as, without limitation, “would,” “will,” “should,” “expects,” “believes,” “anticipates,” “continues,” “could,” “may,” “might,” “plans,” “possible,” “potential,” “predicts,” “projects,” “forecasts,” “intends,” “assumes,” “estimates,” “approximately,” “shall,” “our planning assumptions,” “future outlook,” “currently,” “target,” “guidance,” and similar expressions (including the negative and plural forms of such words and phrases). These forward-looking statements are based largely on information currently available to our management and on our current expectations, assumptions, plans, estimates, judgments, projections about our business and our industry, and macroeconomic conditions, and are subject to various risks, uncertainties, estimates, contingencies and other factors, many of which are outside our control, that could cause actual results to differ materially from those expected or implied by such forward-looking statements and could materially adversely affect our business, financial condition, results of operation,operations, cash flows and liquidity. Factors that could cause or contribute to such differences include, but are not limited to, the following:
changes in applicable laws or regulations;
factors relating to our business, operations and financial performance, including:
ourthe Company’s ability to successfully execute, manage, integrate and obtain the anticipated financial benefits of key acquisitions and mergers, including the acquisitionacquisitions of Envios de Valores La Nacional Corp. (“La Nacional”) and LAN Holdings, Corp. (“LAN Holdings”);
economic factors such as inflation, the level of economic activity, recession risks and labor market conditions, as well as rising interest rates;
public health conditions, responses thereto and the economic and market effects thereof;
competition in the markets in which we operate;
volatility in foreign exchange rates that could affect the volume of consumer remittance activity and/or affect our foreign exchange related gains and losses;
our ability to maintain favorable banking and agent relationships;relationships necessary to conduct our business;
credit risks from our agents and the financial institutions with which we do business;
bank failures, sustained financial illiquidity, or illiquidity at our clearing, cash management or custodial financial institution illiquidity;institutions;
new technology or competitors such asthat disrupt the current ecosystem, including the introduction of new digital platforms;
cyber-attacks or disruptions to our information technology, computer network systems, data centers and phonemobile devices apps;
our ability to satisfy our debt obligations and remain in compliance with our credit facility requirements;
our success in developing and introducing new products, services and infrastructure;
consumer confidence in our brandbrands and in consumer money transfers generally;
our ability to maintain compliance with applicable regulatory requirements;
international political factors, political stability, tariffs, border taxes or restrictions on remittances or transfers;transfers out of the outbound countries in which we operate;
currency restrictions and volatility in countries in which we operate or plan to operate;
consumer fraud and other risks relating to the authenticity of customers’ orders;
changes in immigration laws and their enforcement;
our ability to protect our brands and intellectual property rights;
weakness in U.S. or international economic conditions;
changes in tax laws in the countries in which we operate;
our ability to recruit and retain key personnel; and
other economic, business and/or competitive factors, risks and uncertainties, including those described in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections in our Annual Report on Form 10-K for the year ended December 31, 2021.2022.
All forward-looking statements that are made or attributable to us are expressly qualified in their entirety by this cautionary notice. The forward-looking statements included herein are only made as of the date of this Quarterly Report on Form 10-Q. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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PART 1 – FINANCIAL INFORMATION
ITEM 1.    FINANCIAL STATEMENTS
INTERNATIONAL MONEY EXPRESS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands, except for share data)
September 30, 2022December 31, 2021June 30, 2023December 31, 2022
ASSETSASSETS(unaudited)ASSETS(unaudited)
Current assets:Current assets:Current assets:
Cash$105,052 $132,474 
Cash and cash equivalentsCash and cash equivalents$147,372 $149,493 
Accounts receivable, netAccounts receivable, net100,061 67,317 Accounts receivable, net123,700 129,808 
Prepaid wires, netPrepaid wires, net104,114 56,766 Prepaid wires, net119,169 90,386 
Prepaid expenses and other current assetsPrepaid expenses and other current assets8,906 6,988 Prepaid expenses and other current assets12,320 12,749 
Total current assetsTotal current assets318,133 263,545 Total current assets402,561 382,436 
Property and equipment, netProperty and equipment, net22,614 17,905 Property and equipment, net28,670 28,160 
GoodwillGoodwill36,260 36,260 Goodwill53,487 49,774 
Intangible assets, netIntangible assets, net12,599 15,392 Intangible assets, net20,622 19,826 
Other assetsOther assets9,295 7,434 Other assets34,461 31,876 
Total assetsTotal assets$398,901 $340,536 Total assets$539,801 $512,072 
LIABILITIES AND STOCKHOLDERS’ EQUITYLIABILITIES AND STOCKHOLDERS’ EQUITYLIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:Current liabilities:Current liabilities:
Current portion of long-term debt, netCurrent portion of long-term debt, net$4,429 $3,882 Current portion of long-term debt, net$6,069 $4,975 
Accounts payableAccounts payable22,464 23,151 Accounts payable21,658 25,686 
Wire transfers and money orders payable, netWire transfers and money orders payable, net74,444 56,066 Wire transfers and money orders payable, net106,271 112,251 
Accrued and other liabilitiesAccrued and other liabilities32,223 33,760 Accrued and other liabilities41,959 41,855 
Total current liabilitiesTotal current liabilities133,560 116,859 Total current liabilities175,957 184,767 
Long-term liabilities:Long-term liabilities:Long-term liabilities:
Debt, netDebt, net118,753 79,211 Debt, net187,201 150,235 
Lease liabilities, netLease liabilities, net1,525 — Lease liabilities, net22,918 23,272 
Deferred tax liability, netDeferred tax liability, net50 1,426 Deferred tax liability, net2,900 3,892 
Total long-term liabilitiesTotal long-term liabilities120,328 80,637 Total long-term liabilities213,019 177,399 
Commitments and contingencies, see Note 15
Commitments and contingencies, see Note 16Commitments and contingencies, see Note 16
Stockholders’ equity:Stockholders’ equity:Stockholders’ equity:
Common stock $0.0001 par value; 230,000,000 shares authorized, 39,417,077 and 38,820,222 shares issued and 37,059,940 and 38,478,700 shares outstanding as of September 30, 2022 and December 31, 2021, respectively.
Common stock $0.0001 par value; 230,000,000 shares authorized, 39,571,073 and 39,453,236 shares issued and 35,516,226 and 36,630,970 shares outstanding as of June 30, 2023 and December 31, 2022, respectively.Common stock $0.0001 par value; 230,000,000 shares authorized, 39,571,073 and 39,453,236 shares issued and 35,516,226 and 36,630,970 shares outstanding as of June 30, 2023 and December 31, 2022, respectively.
Additional paid-in capitalAdditional paid-in capital68,457 66,875 Additional paid-in capital74,103 70,210 
Retained earningsRetained earnings126,067 81,803 Retained earnings166,318 139,134 
Accumulated other comprehensive loss(215)(76)
Treasury stock, at cost; 2,357,137 and 341,522 shares as of September 30, 2022 and December 31, 2021, respectively.(49,300)(5,566)
Accumulated other comprehensive income (loss)Accumulated other comprehensive income (loss)215 (142)
Treasury stock, at cost; 4,054,847 and 2,822,266 shares as of June 30, 2023 and December 31, 2022, respectively.Treasury stock, at cost; 4,054,847 and 2,822,266 shares as of June 30, 2023 and December 31, 2022, respectively.(89,815)(59,300)
Total stockholders’ equityTotal stockholders’ equity145,013 143,040 Total stockholders’ equity150,825 149,906 
Total liabilities and stockholders’ equityTotal liabilities and stockholders’ equity$398,901 $340,536 Total liabilities and stockholders’ equity$539,801 $512,072 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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INTERNATIONAL MONEY EXPRESS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(in thousands, except for share data, unaudited)
Three Months Ended September 30,Nine Months Ended September 30,Three Months Ended June 30,Six Months Ended June 30,
20222021202220212023202220232022
Revenues:Revenues:Revenues:
Wire transfer and money order fees, netWire transfer and money order fees, net$120,718 $104,191 $336,340 $284,409 Wire transfer and money order fees, net$144,518 $117,622 $268,968 $215,621 
Foreign exchange gain, netForeign exchange gain, net18,851 15,643 52,719 45,347 Foreign exchange gain, net22,382 18,195 41,550 33,868 
Other incomeOther income1,198 873 3,309 2,275 Other income2,250 1,118 3,996 2,111 
Total revenuesTotal revenues140,767 120,707 392,368 332,031 Total revenues169,150 136,935 314,514 251,600 
Operating expenses:Operating expenses:Operating expenses:
Service charges from agents and banksService charges from agents and banks93,658 81,416 262,717 222,654 Service charges from agents and banks110,996 92,066 207,113 169,060 
Salaries and benefitsSalaries and benefits13,853 10,859 36,911 30,909 Salaries and benefits17,640 11,748 33,808 23,058 
Other selling, general and administrative expensesOther selling, general and administrative expenses10,232 9,966 24,964 22,549 Other selling, general and administrative expenses12,637 7,663 23,974 14,730 
Depreciation and amortizationDepreciation and amortization2,278 2,362 6,712 7,041 Depreciation and amortization3,135 2,251 6,038 4,434 
Total operating expensesTotal operating expenses120,021 104,603 331,304 283,153 Total operating expenses144,408 113,728 270,933 211,282 
Operating incomeOperating income20,746 16,104 61,064 48,878 Operating income24,742 23,207 43,581 40,318 
Interest expenseInterest expense1,466 968 3,530 3,562 Interest expense2,651 1,112 4,842 2,064 
Income before income taxesIncome before income taxes19,280 15,136 57,534 45,316 Income before income taxes22,091 22,095 38,739 38,254 
Income tax provisionIncome tax provision2,654 3,629 13,270 11,605 Income tax provision6,669 6,111 11,555 10,616 
Net incomeNet income16,626 11,507 44,264 33,711 Net income15,422 15,984 27,184 27,638 
Other comprehensive loss(150)(151)(139)(139)
Other comprehensive income (loss)Other comprehensive income (loss)175 (101)357 11 
Comprehensive incomeComprehensive income$16,476 $11,356 $44,125 $33,572 Comprehensive income$15,597 $15,883 $27,541 $27,649 
Earnings per common share:Earnings per common share:Earnings per common share:
BasicBasic$0.44 $0.30 $1.16 $0.88 Basic$0.43 $0.42 $0.75 $0.72 
DilutedDiluted$0.43 $0.29 $1.14 $0.86 Diluted$0.42 $0.41 $0.73 $0.71 
Weighted-average common shares outstanding:Weighted-average common shares outstanding:Weighted-average common shares outstanding:
BasicBasic37,390,632 38,647,931 37,999,709 38,441,767 Basic36,001,670 38,257,156 36,239,997 38,309,295 
DilutedDiluted38,425,868 39,336,051 38,907,283 39,071,622 Diluted36,871,674 39,228,991 37,115,490 39,153,039 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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INTERNATIONAL MONEY EXPRESS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
(in thousands, except for share data, unaudited)
Three Months Ended September 30, 2022Three Months Ended June 30, 2023
Common StockTreasury StockAdditional
Paid-in Capital
Retained EarningsAccumulated Other
Comprehensive
Loss
Total
Stockholders’
Equity
Common StockTreasury StockAdditional
Paid-in Capital
Retained EarningsAccumulated Other
Comprehensive
Income
Total
Stockholders’
Equity
SharesAmountSharesAmountSharesAmountSharesAmount
Balance, June 30, 202239,011,042$(1,069,423)$(19,194)$70,012 $109,441 $(65)$160,198 
Balance, March 31, 2023Balance, March 31, 202339,556,217$(3,138,725)$(66,884)$71,797 $150,896 $40 $155,853 
Net incomeNet income— — — 16,626 — 16,626 Net income— — — 15,422 — 15,422 
Issuance of common stock:Issuance of common stock:Issuance of common stock:
Exercise of stock options, net of shares withheld for taxesExercise of stock options, net of shares withheld for taxes377,589— — (4,162)— — (4,162)Exercise of stock options, net of shares withheld for taxes10,000— — 99 — — 99 
Restricted stock units and awards, net of shares withheld for taxesRestricted stock units and awards, net of shares withheld for taxes27,664— — (18)— — (18)Restricted stock units and awards, net of shares withheld for taxes4,075— — (38)— — (38)
Fully vested sharesFully vested shares782— — — — — — Fully vested shares781— — — — — — 
Share-based compensationShare-based compensation— — 2,625 — — 2,625 Share-based compensation— — 2,245 — — 2,245 
Adjustment from foreign currency translation, netAdjustment from foreign currency translation, net— — — — (150)(150)Adjustment from foreign currency translation, net— — — — 175 175 
Acquisition of treasury stock, at costAcquisition of treasury stock, at cost— (1,287,714)(30,106)— — — (30,106)Acquisition of treasury stock, at cost— (916,122)(22,931)— — — (22,931)
Balance, September 30, 202239,417,077$(2,357,137)$(49,300)$68,457 $126,067 $(215)$145,013 
Balance, June 30, 2023Balance, June 30, 202339,571,073$(4,054,847)$(89,815)$74,103 $166,318 $215 $150,825 
Three Months Ended September 30, 2021
Common StockTreasury StockAdditional
Paid-in Capital
Retained EarningsAccumulated Other
Comprehensive Loss
Total
Stockholders’
Equity
SharesAmountSharesAmount
Balance, June 30, 202138,585,724$$— $64,009 $57,164 $(1)$121,176 
Net income— — — 11,507 — 11,507 
Issuance of common stock:
Exercise of stock options152,678— — (85)— — (85)
Restricted stock units and awards— — — — — — 
Fully vested shares1,078— — — — — — 
Share-based compensation— — 1,112 — — 1,112 
Adjustment from foreign currency translation, net— — — — (151)(151)
Acquisition of treasury stock, at cost— (70,440)(1,205)— — — (1,205)
Balance, September 30, 202138,739,480$(70,440)$(1,205)$65,036 $68,671 $(152)$132,354 

Three Months Ended June 30, 2022
Common StockTreasury StockAdditional
Paid-in Capital
Retained EarningsAccumulated Other
Comprehensive Loss
Total
Stockholders’
Equity
SharesAmountSharesAmount
Balance, March 31, 202238,885,736$(565,910)$(9,194)$68,431 $93,457 $36 $152,734 
Net income— — — 15,984 — 15,984 
Issuance of common stock:
Exercise of stock options, net of shares withheld for taxes29,990— — — (75)— — (75)
Restricted stock units and awards, net of shares withheld for taxes94,540— — — (9)— — (9)
Fully vested shares776— — — — — — — 
Share-based compensation— — — 1,665 — — 1,665 
Adjustment from foreign currency translation, net— — — — — (101)(101)
Acquisition of treasury stock, at cost— (503,513)(10,000)— — — (10,000)
Balance, June 30, 202239,011,042$(1,069,423)$(19,194)$70,012 $109,441 $(65)$160,198 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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INTERNATIONAL MONEY EXPRESS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY (CONTINUED)
(in thousands, except for share data, unaudited)
Nine Months Ended September 30, 2022Six Months Ended June 30, 2023
Common StockTreasury StockAdditional
Paid-in Capital
Retained EarningsAccumulated Other
Comprehensive
Loss
Total
Stockholders’
Equity
Common StockTreasury StockAdditional
Paid-in Capital
Retained EarningsAccumulated Other
Comprehensive
Income
Total
Stockholders’
Equity
SharesAmountSharesAmountSharesAmountSharesAmount
Balance, December 31, 202138,820,222$(341,522)$(5,566)$66,875 $81,803 $(76)$143,040 
Balance, December 31, 2022Balance, December 31, 202239,453,236$(2,822,266)$(59,300)$70,210 $139,134 $(142)$149,906 
Net incomeNet income— — — 44,264 — 44,264 Net income— — — 27,184 — 27,184 
Issuance of common stock:Issuance of common stock:Issuance of common stock:
Exercise of stock options, net of shares withheld for taxesExercise of stock options, net of shares withheld for taxes451,304— — (3,675)— — (3,675)Exercise of stock options, net of shares withheld for taxes67,250— — 822 — — 822 
Restricted stock units and awards, net of shares withheld for taxesRestricted stock units and awards, net of shares withheld for taxes142,991— — (301)— — (301)Restricted stock units and awards, net of shares withheld for taxes48,980— — (872)— — (872)
Fully vested sharesFully vested shares2,560— — — — — — Fully vested shares1,607— — — — — — 
Share-based compensationShare-based compensation— — 5,558 — — 5,558 Share-based compensation— — 3,943 — — 3,943 
Adjustment from foreign currency translation, netAdjustment from foreign currency translation, net— — — — (139)(139)Adjustment from foreign currency translation, net— — — — 357 357 
Acquisition of treasury stock, at costAcquisition of treasury stock, at cost— (2,015,615)(43,734)— — — (43,734)Acquisition of treasury stock, at cost— (1,232,581)(30,515)— — — (30,515)
Balance, September 30, 202239,417,077$(2,357,137)$(49,300)$68,457 $126,067 $(215)$145,013 
Balance, June 30, 2023Balance, June 30, 202339,571,073$(4,054,847)$(89,815)$74,103 $166,318 $215 $150,825 
Nine Months Ended September 30, 2021Six Months Ended June 30, 2022
Common StockTreasury StockAdditional
Paid-in Capital
Retained EarningsAccumulated Other
Comprehensive Loss
Total
Stockholders’
Equity
Common StockTreasury StockAdditional
Paid-in Capital
Retained EarningsAccumulated Other
Comprehensive Loss
Total
Stockholders’
Equity
SharesAmountSharesAmountSharesAmountSharesAmount
Balance, December 31, 202038,217,125$— — $59,310 $34,960 $(13)$94,261 
Balance, December 31, 2021Balance, December 31, 202138,820,222$(341,522)(5,566)$66,875 $81,803 $(76)$143,040 
Net incomeNet income— — — 33,711 — 33,711 Net income— — — 27,638 — 27,638 
Issuance of common stock:Issuance of common stock:Issuance of common stock:
Exercise of stock options397,585— — 2,344 — — 2,344 
Exercise of stock options, net of shares withheld for taxesExercise of stock options, net of shares withheld for taxes73,715— — 487 — — 487 
Restricted stock units and awards, net of shares withheld for taxesRestricted stock units and awards, net of shares withheld for taxes121,596— — — — — — Restricted stock units and awards, net of shares withheld for taxes115,327— — (283)— — (283)
Fully vested sharesFully vested shares3,174— — — — — — Fully vested shares1,778— — — — — — 
Share-based compensationShare-based compensation— — 3,382 — — 3,382 Share-based compensation— — 2,933 — — 2,933 
Adjustment from foreign currency translation, netAdjustment from foreign currency translation, net— — — — (139)(139)Adjustment from foreign currency translation, net— — — — 11 11 
Acquisition of treasury stock, at costAcquisition of treasury stock, at cost— (70,440)(1,205)— — — (1,205)Acquisition of treasury stock, at cost— (727,901)(13,628)— — — (13,628)
Balance, September 30, 202138,739,480$(70,440)$(1,205)$65,036 $68,671 $(152)$132,354 
Balance, June 30, 2022Balance, June 30, 202239,011,042$(1,069,423)$(19,194)$70,012 $109,441 $(65)$160,198 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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INTERNATIONAL MONEY EXPRESS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(in thousands, unaudited)
Nine Months Ended September 30,
20222021
Cash flows from operating activities:
Net income$44,264 $33,711 
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization6,712 7,041 
Share-based compensation5,558 3,382 
Provision for credit losses2,022 1,009 
Debt origination costs amortization752 626 
Deferred income tax (benefit) provision, net(1,376)673 
Non-cash lease expense1,631 — 
Loss on disposal of property and equipment633 1,311 
Total adjustments15,932 14,042 
Changes in operating assets and liabilities:
Accounts receivable, net(34,864)(43,402)
Prepaid wires, net(47,099)38,561 
Prepaid expenses and other assets(828)(6,210)
Wire transfers and money orders payable, net18,158 18,136 
Lease liabilities(2,013)— 
Accounts payable and accrued and other liabilities(3,398)5,867 
Net cash (used in) provided by operating activities(9,848)60,705 
Cash flows from investing activities:
Purchases of property and equipment(9,155)(5,523)
Acquisition of agent locations(225)— 
Net cash used in investing activities(9,380)(5,523)
Cash flows from financing activities:
Repayments of term loan facility(3,281)(43,135)
Borrowings under revolving credit facility, net43,000 — 
Borrowings under term loan facility— 40,158 
Debt origination costs— (2,894)
Proceeds from exercise of stock options1,374 3,192 
Payments for stock awards(5,349)(849)
Repurchases of common stock(43,734)(1,205)
Net cash used in financing activities(7,990)(4,733)
Effect of exchange rate changes on cash(204)(224)
Net (decrease) increase in cash(27,422)50,225 
Cash, beginning of period132,474 74,907 
Cash, end of period$105,052 $125,132 

Six Months Ended June 30,
20232022
Cash flows from operating activities:
Net income$27,184 $27,638 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization6,038 4,434 
Share-based compensation3,943 2,933 
Provision for credit losses1,940 1,498 
Fair value of contingent consideration(121)— 
Debt origination costs amortization528 507 
Deferred income tax benefit, net(745)(330)
Non-cash lease expense4,074 999 
Loss on disposal of property and equipment840 434 
Total adjustments16,497 10,475 
Changes in operating assets and liabilities:
Accounts receivable, net5,314 (31,339)
Prepaid wires, net(22,227)213 
Prepaid expenses and other assets(773)494 
Wire transfers and money orders payable, net(14,965)5,550 
Lease liabilities(4,161)(1,037)
Accounts payable and accrued and other liabilities(6,861)(7,434)
Net cash provided by operating activities4,560 
Cash flows from investing activities:
Purchases of property and equipment(4,551)(6,642)
Cash used in business acquisition, net of cash and cash equivalents acquired(5,477)— 
Acquisition of agent locations— (225)
Net cash used in investing activities(10,028)(6,867)
Cash flows from financing activities:
Repayments of term loan facility(2,188)(2,188)
Borrowings under revolving credit facility, net40,000 — 
Debt origination costs(701)— 
Proceeds from exercise of stock options822 487 
Payments for stock awards(872)(283)
Repurchases of common stock(30,515)(13,628)
Net cash provided by (used in) financing activities6,546 (15,612)
Effect of exchange rate changes on cash and cash equivalents1,353 45 
Net decrease in cash and cash equivalents(2,121)(17,874)
Cash and cash equivalents, beginning of period149,493 132,474 
Cash and cash equivalents, end of period$147,372 $114,600 
The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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INTERNATIONAL MONEY EXPRESS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
(in thousands, unaudited)
Nine Months Ended September 30,Six Months Ended June 30,
2022202120232022
Supplemental disclosure of cash flow information:Supplemental disclosure of cash flow information:Supplemental disclosure of cash flow information:
Cash paid for interestCash paid for interest$2,773 $2,940 Cash paid for interest$4,285 $1,468 
Cash paid for income taxesCash paid for income taxes$19,692 $12,567 Cash paid for income taxes$13,257 $8,767 
Supplemental disclosure of non-cash investing activities:Supplemental disclosure of non-cash investing activities:
Lease liabilities arising from obtaining right-of-use assetsLease liabilities arising from obtaining right-of-use assets$4,843 $253 
Contingent consideration liabilityContingent consideration liability$600 $— 
Settlement of receivable balance from LAN HoldingsSettlement of receivable balance from LAN Holdings$2,534 $— 
Supplemental disclosure of non-cash financing activities:Supplemental disclosure of non-cash financing activities:
Issuance of common stock for cashless exercise of optionsIssuance of common stock for cashless exercise of options$9,175 $2,973 Issuance of common stock for cashless exercise of options$— $1,293 
Non-cash lease liabilities arising from obtaining right-of-use assets$6,033 $— 
Right-of-use asset adjustments due to lease modifications$1,124 $— 

The accompanying notes are an integral part of these unaudited condensed consolidated financial statements.
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INTERNATIONAL MONEY EXPRESS, INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)

NOTE 1 – BUSINESS AND ACCOUNTING POLICIES
International Money Express, Inc. (the “Company” or “us” or “we”) operates as a money transmitter between the United States of America (“United States” or “U.S.”), Canada, Spain, Italy and CanadaGermany to Mexico, Guatemala and other countries in Latin America, Africa, Asia and AsiaEurope through a network of authorized agents located in various unaffiliated retail establishments and 37124 Company-operated stores throughout the United States, Canada, Spain, Italy and Canada.

The coronavirus (“COVID-19”) pandemic that started in 2020 has had and continues to have a significant effect on economic conditions in the United States, and continues to cause significant uncertainties in the U.S. and global economies, particularly as a result of the emergence of new variants and sub-variants of COVID-19. Public health officials and medical professionals have warned that COVID-19 resurgences may continue to occur due to a variety of factors, including the extent of economic activity, social interaction, vaccination rates and the emergence of potent variants. It is unclear if and when resurgences will occur or how long any resurgence will last, how severe it will be, and what safety measures governments and businesses will impose in response.

The Company’s operations have continued effectively despite measures taken in response to the pandemic. However, the ultimate impact of the COVID-19 pandemic and any potential material adverse effect on the Company’s condition, results of operations and cash flows is dependent on future developments, including the duration or resurgence of the pandemic and the related extent of its severity, as well as its impact on the economic conditions, particularly the level of unemployment of our consumers, inflation (including changes in wages) and governmental efforts to restrain inflation, interest rate levels and foreign exchange volatility, all of which remain uncertain and cannot be predicted at this time.Germany.

The condensed consolidated financial statements of the Company include International Money Express, Inc. and its majority-owned subsidiaries. The condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the United States (“GAAP”). All significant inter-company balances and transactions have been eliminated from the condensed consolidated financial statements.

The Company’s interim condensed consolidated financial statements and related notes are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim condensed consolidated financial statements have been included. The results reported in these interim condensed consolidated financial statements are not necessarily indicative of the results that may be reported for the entire year. Certain information and footnote disclosures required by GAAP have been condensed or omitted. These interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021.2022.

OnIn March 16, 2022, the Company entered into a definitive purchase agreement to acquire Envios de Valores La Nacional Corp. (“La Nacional”) and LAN Holdings, Corp. (“LAN Holdings”), which either directly or indirectly operate as money remittance companies in the United States, Canada and certain countries in Europe. On November 1, 2022, the Company entered into an Amended and Restated Stock Purchase Agreement to allow the parties to close on theThe acquisition of La Nacional was closed effective November 1, 2022 and to close on the acquisition of LAN Holdings at a later date following receipt of pending regulatory approvals. The acquisition of LAN Holdings is expected to close late in the fourth quarter of 2022 or earlywas closed effective April 5, 2023. The Company paid $42.3 million upon consummation of the acquisition of La Nacional (subject to customary purchase price adjustments) and anticipates up to an additional $2.4 million in contingent consideration to be paid in 2023 if La Nacional achieves certain financial targets and operational milestones. For LAN Holdings, the Company expects to pay cash of approximately $7.7 million (subject to customary purchase price adjustments) and up to an additional $0.6 million in contingent consideration in 2023 if LAN Holdings achieves certain financial targets and operational milestones. Refer to Note 162 for additional information on these acquisitions.

Concentrations
The Company maintains certain of its cash balances in various U.S. banks, which at times, may exceed federally insured limits. The Company has not incurred any losses on these accounts. In addition, the closingCompany maintains various bank accounts in Mexico, Guatemala, Canada and certain countries in Europe, which may not be fully insured. During the three and six months ended June 30, 2023, the Company has not incurred any losses on these uninsured foreign bank accounts.

In addition, a substantial portion of the acquisition of La Nacional.our paying agents are concentrated in a few large banks and financial institutions and large retail chains in Latin American countries.

Accounting Pronouncements

The FASB issued guidance, ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires entities to apply Topic 606: Revenue from Contracts with Customers to recognize and measure contract assets and contract liabilities in a business combination. This guidance improves comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The Company adopted this guidance on January 1, 2023 prospectively for business combinations that occur after the adoption date. The adoption of this accounting standard did not have a material impact on the Company’s condensed consolidated financial statements.

NOTE 2 – ACQUISITIONS
Envios de Valores La Nacional Corp.
On JanuaryNovember 1, 2022, the Company adoptedcompleted the new accounting guidance, Leases (Topic 842) (“ASC 842”acquisition of 100% of the voting interest of La Nacional (the “La Nacional Acquisition”), which required and on April 5, 2023, the Company completed the acquisition of 100% of the voting interest of LAN Holdings (the “LAN Acquisition”) (the “LAN Acquisition,” and together with the La Nacional Acquisition, the “Acquisitions”). See “LAN Holdings, Corp.” section below.
The Company paid cash consideration of $39.7 million upon consummation of the La Nacional Acquisition (subject to record assetscustomary purchase price adjustments) and liabilities on the balance sheet for lease-related rightscould be required to pay up to $2.4 million in contingent consideration in 2023 as a result of La Nacional achieving certain transaction volume and obligationsfinancial targets during 2023. The contingent consideration fair value as of June 30, 2023 and disclose key information about its leasing arrangements. The guidance requires that a lessee recognizes a liability to make lease payments (the lease liability) and a right-of-use (“ROU”) asset representing its right to use the underlying asset for the lease term on the balance sheet. Leases are classified as financing or operating, with classification affecting the pattern of expense recognition in the condensed consolidated statements of income and comprehensive income. Refer to Note 6 for additional information on the adoption of this standard and related disclosures.

December 31,
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2022 was approximately $1.2 million and $1.3 million, respectively. During the three and six months ended June 30, 2023, the Company recorded a fair value adjustment of $0.1 million based on the expected achievement of the financial targets.
The FASB issued guidance, Financial Instruments – Credit Losses (Topic 326): Measurementfollowing table summarizes the fair values of Credit Lossesconsideration transferred and identifiable net assets acquired in the La Nacional Acquisition on Financial Instruments, regardingNovember 1, 2022, the measurement period adjustments in the six months ended June 30, 2023 and the fair values of credit losses for certain financial instruments. consideration transferred and identifiable net assets acquired as of June 30, 2023.
November 1, 2022
(As initially reported)
Measurement Period AdjustmentsJune 30, 2023
(As Adjusted)
Assets acquired:
Cash and cash equivalents$39,569 $— $39,569 
Accounts receivable16,504 — 16,504 
Prepaid wires571 — 571 
Prepaid expenses and other current assets1,219 430 1,649 
Property and Equipment4,077 — 4,077 
Intangible assets8,450 — 8,450 
Other assets13,659 — 13,659 
Total identifiable assets acquired$84,049 $430 $84,479 
Liabilities assumed:
Accounts payable$(1,260)$— $(1,260)
Wire transfers and money orders payable(35,595)— (35,595)
Accrued and other liabilities(3,651)366 (3,285)
Lease liabilities(13,067)— (13,067)
Deferred tax liability(2,969)338 (2,631)
Total liabilities assumed$(56,542)$704 $(55,838)
Net identifiable assets acquired$27,507 $1,134 $28,641 
Consideration transferred$41,021 $— $41,021 
Goodwill$13,514 $(1,134)$12,380 
LAN Holdings, Corp.
On April 5, 2023, the Company completed the acquisition of 100% of the voting interest of LAN Holdings. LAN Holdings provides the Company the opportunity to enter into markets in which it did not have a presence previously, such as the ability to provide outbound remittance services from Spain, Italy, and Germany.

The new standard replacestotal consideration transferred by the incurred loss modelCompany in connection with a current expected credit loss (“CECL”) model. The CECL model is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. the LAN Acquisition was $13.4 million, which included $10.3 million in cash, subject to customary purchase price adjustments. The Company iswill also pay an additional $0.6 million in cash as a result of LAN Holdings’ achievement of certain operational milestones during 2023, which the parties have agreed have been achieved; accordingly, the earn-out will be paid under the terms of the definitive purchase agreement. Prior to the acquisition, the Company maintained a receivable balance of approximately $2.5 million related to money transfers paid by Intermex on behalf of LAN Holdings. Upon the closing of the LAN Acquisition, the receivable balance was effectively settled and, therefore, included in the processdetermination of implementing the CECL modeltotal consideration transferred. The LAN Acquisition was funded with cash on hand.

As of the date of these condensed consolidated financial statements, due to the recent closing of the LAN Acquisition, the initial accounting for the LAN Acquisition is incomplete. The preliminary allocation of the consideration transferred resulted in net identifiable assets acquired of approximately $8.5 million, including $3.2 million in intangible assets, and goodwill of approximately $4.9 million, which is updating certainsubject to customary purchase price adjustments. The measurement period of the LAN Acquisition extends up to one year from April 5, 2023. The Company engaged an independent third party to assist with the valuation of identifiable net assets acquired. In addition, due to the timing of the LAN Acquisition, the potential income tax consequences of this transaction have not been fully determined.



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The LAN Holdings results of operations have been included in the Company's results of operations from the date of its business processesacquisition. For both the three and six months ended June 30, 2023, the Company’s condensed consolidated statement of income and comprehensive income includes $4.7 million and $28.5 thousand of revenue and net income, respectively, from LAN Holdings.

Transaction Costs

Transaction costs include all internal controlsand external costs directly related to meet the reportingCompany’s acquisition activity, consisting primarily of legal, consulting, accounting and disclosure requirementfinancial advisory fees. Transaction costs for the three and six months ended June 30, 2023 amounted to $0.3 million and $0.4 million, respectively, and are included in other selling, general and administrative expenses on the condensed consolidated statement of income and comprehensive income. Transaction costs for both the three and six months ended June 30, 2022 amounted to $0.2 million.

Supplemental Pro Forma Financial Information

For the three and six months ended June 30, 2023 and 2022, unaudited supplemental pro forma revenue and net income is shown below.
Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Total revenues$169,150 $140,629 $319,222 $258,991 
Net income$15,814 $16,079 $27,698 $27,827 

These unaudited pro forma financial results include the results of operations of LAN Holdings as if it had been consolidated as of January 1, 2022, the beginning of the new accounting guidance.year prior to its acquisition, and are provided for illustrative purposes only. These unaudited pro forma financial results do not purport to be indicative of the actual results that would have been achieved by the combined companies for the periods indicated, or of the results that may be achieved by the combined companies in the future. The new guidance, whichCompany’s unaudited pro forma financial results were prepared by adding the unaudited historical results of the acquired business to the historical results of the Company, will adopt effective on December 31,and then adjusting those combined results for transaction costs of $0.3 million and $0.4 million for the three and six months ended June 30, 2023, respectively, and the incremental depreciation and amortization expense related to the property and equipment and intangible assets acquired. Transaction costs were included in the pro forma results for the three and six months ended June 30, 2022 usingbut removed from the modified-retrospective approach, ispro forma results for the three and six months ended June 30, 2023. These unaudited pro forma financial results do not expectedinclude adjustments to materially affect the amountreflect other cost savings or synergies that may have resulted from this acquisition. Future results may vary significantly due to future events and other factors, many of provision for credit losses recognized underwhich are beyond the Company’s current model and is not expected to have a material effect on the Company’s consolidated financial statements.control.

NOTE 23 – REVENUES
The Company recognized revenues from contracts with customers for the three and ninesix months ended SeptemberJune 30, 20222023 and 2021,2022, as follows (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,Three Months Ended June 30,Six Months Ended June 30,
20222021202220212023202220232022
Wire transfer and money order feesWire transfer and money order fees$121,218 $104,543 $337,757 $285,430 Wire transfer and money order fees$145,252 $118,788 $270,259 $217,191 
Discounts and promotionsDiscounts and promotions(500)(352)(1,417)(1,021)Discounts and promotions(734)(1,166)(1,291)(1,570)
Wire transfer and money order fees, netWire transfer and money order fees, net120,718 104,191 336,340 284,409 Wire transfer and money order fees, net144,518 117,622 268,968 215,621 
Foreign exchange gain, netForeign exchange gain, net18,851 15,643 52,719 45,347 Foreign exchange gain, net22,382 18,195 41,550 33,868 
Other incomeOther income1,198 873 3,309 2,275 Other income2,250 1,118 3,996 2,111 
Total revenuesTotal revenues$140,767 $120,707 $392,368 $332,031 Total revenues$169,150 $136,935 $314,514 $251,600 

There are no significant initial costs incurred to obtain contracts with customers, although the Company has a loyalty program under which customers in the United States earn one point for each wire transfer completed. Points can be redeemed for a discounted wire transaction fee or a foreign exchange rate that is more favorable to the customer. The customer benefits vary by country, and the earned points expire if the customer has not initiated and completed an eligible wire transfer transaction within the immediately preceding 180-day period. In addition, earned points will expire 30 days after the end of the program. Because the loyalty program benefits represent a future performance obligation, a portion of the initial consideration is recorded as deferred revenue loyalty program (see Note 8)9) and a corresponding loyalty program expense is recorded as contra revenue. Revenue from this performance obligation is recognized upon customers redeeming points or upon expiration of any points outstanding.

Except for the loyalty program discussed above, our revenues include only one performance obligation, which is to collect the consumer’s money and make funds available for payment, generally on the same day, to a designated recipient in the currency requested.
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The Company also offers several other services, including money orders and check cashing through its sending agents, for which revenue is derived from a fee per transaction. For substantially all of the Company’s revenues, the Company acts as principal in the transaction and reports revenue on a gross basis because the Company controls the service at all times prior to transfer to the customer, is primarily responsible for fulfilling the customer contracts, has the risk of loss and has the ability to establish transaction prices.

Wire transfers and money order fees include money order fees of $0.5 million and $0.4 million for the three months ended June 30, 2023 and 2022, respectively, and $1.1 million and $0.8 million for the six months ended June 30, 2023 and 2022, respectively.

NOTE 34 – ACCOUNTS RECEIVABLE AND AGENT ADVANCES RECEIVABLE, NET OF ALLOWANCE
Accounts Receivable

Accounts receivable represents primarily outstanding balances from sending agents for pending wire transfers or money orders from consumers. The outstanding balance of accounts receivable, net of allowance for credit losses, consists of the following (in thousands):

September 30, 2022December 31, 2021June 30, 2023December 31, 2022
Accounts receivableAccounts receivable$102,363 $69,498 Accounts receivable$126,248 $132,363 
Allowance for credit lossesAllowance for credit losses(2,302)(2,181)Allowance for credit losses(2,548)(2,555)
Accounts receivable, netAccounts receivable, net$100,061 $67,317 Accounts receivable, net$123,700 $129,808 

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Agent Advances Receivable

The Company had agentAgent advances receivable, net of allowance for credit losses, from sending agents is as follows (in thousands):

September 30, 2022December 31, 2021June 30, 2023December 31, 2022
Agent advances receivable, currentAgent advances receivable, current$1,532 $791 Agent advances receivable, current$1,513 $1,373 
Allowance for credit lossesAllowance for credit losses(58)(55)Allowance for credit losses(79)(62)
Net currentNet current$1,474 $736 Net current$1,434 $1,311 
Agent advances receivable, long-termAgent advances receivable, long-term$1,422 $656 Agent advances receivable, long-term$1,546 $1,423 
Allowance for credit lossesAllowance for credit losses(24)(13)Allowance for credit losses(63)(31)
Net long-termNet long-term$1,398 $643 Net long-term$1,483 $1,392 

The net current portion of agent advances receivable is included in prepaid expenses and other current assets (see Note 4)5), and the net long-term portion is included in other assets in the condensed consolidated balance sheets. AgentSome agent advances receivable have interest rates ranging from 0% to 15.0%10.5% per annum. At SeptemberThe Company had an immaterial amount of accrued interest receivable as of June 30, 20222023 and December 31, 2021,2022, which was included in the allowance for credit losses calculation. At June 30, 2023 and December 31, 2022, there were $3.0$3.1 million and $1.4$2.8 million, respectively, of agent advances receivable collateralized by personal guarantees from sending agents and assets from their businesses in case of a default by the agent.

The maturities of agent advances receivable at SeptemberJune 30, 20222023 are as follows (in thousands):
Unpaid Advance Balance
Under 1 year$1,5321,513 
Between 1 and 2 years1,2491,137 
More than 2 years173409 
Total$2,9543,059 


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Allowance for Credit Losses

The changes in the allowance for credit losses related to accounts receivable and agent advances receivable are as follows (in thousands):

Three Months Ended September 30,Nine Months Ended September 30,Three Months Ended June 30,Six Months Ended June 30,
20222021202220212023202220232022
Beginning balanceBeginning balance$2,442 $2,028 $2,249 $2,042 Beginning balance$2,657 $2,256 $2,648 $2,249 
ProvisionProvision525 342 2,022 1,009 Provision1,155 1,056 1,940 1,498 
Charge-offsCharge-offs(700)(361)(2,202)(1,249)Charge-offs(1,426)(970)(2,434)(1,502)
RecoveriesRecoveries117 197 315 404 Recoveries304 100 536 197 
Ending BalanceEnding Balance$2,384 $2,206 $2,384 $2,206 Ending Balance$2,690 $2,442 $2,690 $2,442 

The allowance for credit losses allocated by financial instrument category is as follows (in thousands):

September 30, 2022December 31, 2021June 30, 2023December 31, 2022
Accounts receivableAccounts receivable$2,302 $2,181 Accounts receivable$2,548 $2,555 
Agent advances receivableAgent advances receivable82 68 Agent advances receivable142 93 
Allowance for credit lossesAllowance for credit losses$2,384 $2,249 Allowance for credit losses$2,690 $2,648 

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NOTE 45 – PREPAID EXPENSES AND OTHER ASSETS
Prepaid expenses and other current assets consisted of the following (in thousands):

September 30, 2022December 31, 2021June 30, 2023December 31, 2022
Prepaid insurancePrepaid insurance$1,118 $923 Prepaid insurance$432 $1,578 
Prepaid fees and servicesPrepaid fees and services1,739 1,930 Prepaid fees and services2,029 1,986 
Agent incentives advancesAgent incentives advances914 815 Agent incentives advances1,094 1,014 
Agent advances receivable, net of allowanceAgent advances receivable, net of allowance1,474 736 Agent advances receivable, net of allowance1,434 1,311 
Assets pending settlement248 331 
Tenant allowanceTenant allowance2,815 3,753 
Prepaid income taxesPrepaid income taxes2,940 1,563 Prepaid income taxes3,430 2,130 
Prepaid expenses and current assets - otherPrepaid expenses and current assets - other473 690 Prepaid expenses and current assets - other1,086 977 
$8,906 $6,988 $12,320 $12,749 

Other assets consisted of the following (in thousands):

September 30, 2022December 31, 2021June 30, 2023December 31, 2022
Revolving line origination feesRevolving line origination fees$1,650 $2,032 Revolving line origination fees$1,997 $1,578 
Agent incentives advancesAgent incentives advances828 1,010 Agent incentives advances2,063 1,062 
Agent advances receivable, net of allowanceAgent advances receivable, net of allowance1,398 643 Agent advances receivable, net of allowance1,483 1,392 
Right-of-use assets, netRight-of-use assets, net3,186 — Right-of-use assets, net24,446 24,768 
Funds held by seized banking entities, net of allowanceFunds held by seized banking entities, net of allowance1,584 3,114 Funds held by seized banking entities, net of allowance1,868 1,646 
Other assetsOther assets649 635 Other assets2,604 1,430 
$9,295 $7,434 $34,461 $31,876 

During September 2021,Prior to 2022, local banking regulators in Mexico resolved to close and liquidate a local financial institution, citing a lack of compliance with minimum capital requirements. The Company has approximately $5.2 million of exposure from deposits it held with this bank when it was closed. In accordance with the banking regulations in Mexico, large depositors such as the Company will be paid once the assets of the financial institution are liquidated. Currently, it is difficult to predict the length of the liquidation process or if the proceeds from the asset liquidation will be sufficient to recover a portion or allany of itsthe Company's funds on deposit. As a result of management’s reassessment of the current status of the liquidation process, which has been delayed in the court system in Mexico, during the three months ended September 30, 2022, the Company recorded an additional provision of $1.6 million; consequently, theThe Company maintains a valuation allowance of approximately $3.6 million in connection with the balance of deposits held by the financial institution as a result of its closure.

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NOTE 56 – GOODWILL AND INTANGIBLE ASSETS
Goodwill and the majority of intangible assets on the condensed consolidated balance sheets of the Company were recognized from a prior acquisition.business acquisitions. Intangible assets on the condensed consolidated balance sheets of the Company consist of agent relationships, trade name,names, developed technology and other intangible assets. Agent relationships, trade namenames and developed technology are all amortized over their estimated useful lives of up to 15 years using an accelerated method that correlates with the projected realization of the benefit. The agent relationships intangible represents the network of independent sending agents; trade namenames refers to the Intermex, name,La Nacional and I-Transfer names, branded on all applicable agent locations and well recognized in the market; and developed technology includes the state-of-the-art system that the Company has continued to develop and improve over the past 20 years. Other intangible assets relate to the acquisition of Company-operated stores, which are amortized on a straight line basis over 10 years, and non-competition agreements, which are amortized over the length of the agreement, typically 5 years. The determination of our intangible fair values includes several assumptions that are subject to various risks and uncertainties. Management believes it has made reasonable estimates and judgments concerning these risks and uncertainties, and no impairment charges were determined necessary to be recognized during the three and ninesix months ended SeptemberJune 30, 2022.2023.

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The following table presents the changes in goodwill and intangible assets (in thousands):

GoodwillIntangibles
Balance at December 31, 2021$36,260 $15,392 
Acquisition of agent locations— 225 
Amortization expense— (3,018)
Balance at September 30, 2022$36,260 $12,599 
GoodwillIntangibles
Balance at December 31, 2022$49,774 $19,826 
Measurement period adjustment (Refer to Note 2)(1,134)— 
Acquisition of LAN Holdings4,847 3,200 
Amortization expense— (2,404)
Balance at June 30, 2023$53,487 $20,622 


Amortization expense related to intangible assets for the remainder of 20222023 and thereafter is as follows (in thousands):

2022$1,008 
202320233,024 2023$2,479 
202420242,305 20243,965 
202520251,752 20253,156 
202620261,332 20262,521 
202720272,023 
ThereafterThereafter3,178 Thereafter6,478 
$12,599 $20,622 

NOTE 67 – LEASES
To conduct certain of our operations, the Company is a party to leases for office space, warehouses and Company-operated store locations. Our leases have remaining terms of upIn December 2022, the Company entered into a lease agreement, which expires in 2033, for its new headquarters to 8.9 years, some of which include options to renew and extend the lease. We presently intend to exercise certain of the extension options available to us and for purposes of computing the right-of-use assets and lease liabilities required by ASC 842, we have incorporated the options to renew that are reasonably certain of exercise by us.

accommodate its growing workforce. The Company adopted ASC 842, including related amendments, effective January 1, 2022, usingexpects to complete the modified retrospective approach and usedmove to the effective date asnew headquarters in the datesecond half of initial application; therefore comparative periods were not adjusted.2023 following the completion of leasehold improvements. The Company determined that all of its leasing arrangements are classified as operating leases. The Company elected to apply the practical expedients to (i) not reassess its prior conclusions aboutnew lease identification, lease classification and initial direct costs and (ii) use hindsight in determining the lease term. In addition,agreement provides for the Company elected not to separate leasereceive a tenant allowance amounting to approximately $3.8 million through the construction period and non-lease components for all arrangements where the Company is a lessee. Adoption of the new standard resulted in the recording of additional right-of-usewill commence making monthly lease payments on November 1, 2024. Such tenant allowance has been recorded within prepaid expenses and other current assets and lease liabilities of approximately $5.6 million as of January 1, 2022. The adoption of ASC 842 did not materially impact the Company’s consolidated net income and had no impact on cash flows. Additionally, there was no cumulative effect of adoption recognized on retained earnings in the condensed consolidated statement of changes in stockholders’ equity.balance sheet.


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The presentation of right-of-use assets and lease liabilities in the condensed consolidated balance sheet is as follows (in thousands):

LeasesClassificationSeptember 30, 2022
Assets
Right-of-use assets
Other assets(1)
$3,186 
Total leased assets$3,186 
Liabilities
Current
OperatingAccrued and other liabilities$1,273 
Noncurrent
OperatingLease liabilities1,525 
Total Lease liabilities$2,798 
LeasesClassificationJune 30, 2023December 31, 2022
Assets
Right-of-use assets
Other assets(1)
$24,446 $24,768 
Total leased assets$24,446 $24,768 
Liabilities
Current
OperatingAccrued and other liabilities$5,341 $5,258 
Noncurrent
OperatingLease liabilities22,918 23,272 
Total Lease liabilities$28,259 $28,530 
(1) Operating right of-use assets are recorded net of accumulated amortization of $1.5$7.9 million and $5.6 million as of SeptemberJune 30, 2022.

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2023 and December 31, 2022, respectively.
Lease expense for the three and ninesix months ended SeptemberJune 30, 2023 and 2022, was as follows (in thousands):

Three Months EndedNine Months EndedThree Months Ended June 30,Six Months Ended June 30,
Lease CostLease CostClassificationSeptember 30, 2022September 30, 2022Lease CostClassification2023202220232022
Operating lease costOperating lease costOther selling, general and administrative expenses$632 $1,631 Operating lease costOther selling, general and administrative expenses$2,010 $530 $4,074 $999 

Rent expense for the three and nine months ended September 30, 2021 was $0.6 million and $1.8 million, respectively, which is included in other selling, general and administrative expenses in the condensed consolidated statements of income and comprehensive income.

As of SeptemberJune 30, 2023 and December 31, 2022, the Company’s weighted-average remaining lease terms on its operating leases is 2.56.5 years and 6.6 years, and the Company’s weighted-average discount rate is 2.84%5.95% and 5.67%, respectively, which is the Company’s incremental borrowing rate. The Company used its incremental borrowing rate for all leases, as none of the Company’s lease agreements provide a readily determinable implicit rate.

Lease Payments

Future minimum lease payments for assets under non-cancelable operating lease agreements with original terms of more than one year for the remainder of 20222023 and thereafter are as follows (in thousands):

2022$430 
20232023996 2023$3,137 
20242024519 20245,760 
20252025411 20256,229 
20262026277 20264,867 
202720273,607 
ThereafterThereafter312 Thereafter14,978 
Total lease paymentsTotal lease payments2,945 Total lease payments38,578 
Less: Imputed interestLess: Imputed interest(147)Less: Imputed interest(10,319)
Present value of lease liabilitiesPresent value of lease liabilities$2,798 Present value of lease liabilities$28,259 

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NOTE 78 – WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET
Wire transfers and money orders payable, net consisted of the following (in thousands):

September 30, 2022December 31, 2021June 30, 2023December 31, 2022
Wire transfers payable, netWire transfers payable, net$33,981 $20,744 Wire transfers payable, net$49,252 $55,572 
Customer voided wires payableCustomer voided wires payable20,654 16,895 Customer voided wires payable27,860 27,236 
Money orders payableMoney orders payable19,809 18,427 Money orders payable29,159 29,443 
$74,444 $56,066 $106,271 $112,251 

Customer voided wires payable consist primarily of wire transfers that were not completed because the recipient did not collect the funds within 30 days and the sender has not claimed the funds and, therefore, are considered unclaimed property. Unclaimed property laws of each state in the United States in which we operate, the District of Columbia, and Puerto Rico require us to track certain information for all of our money remittances and payment instruments and, if the funds underlying such remittances and instruments are unclaimed at the end of an applicable statutory abandonment period, require us to remit the proceeds of the unclaimed property to the appropriate jurisdiction. Applicable statutory abandonment periods range from three to seven years.

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NOTE 89 – ACCRUED AND OTHER LIABILITIES
Accrued and other liabilities consisted of the following (in thousands):

September 30, 2022December 31, 2021June 30, 2023December 31, 2022
Commissions payable to sending agentsCommissions payable to sending agents$17,243 $16,303 Commissions payable to sending agents$19,013 $19,141 
Accrued salaries and benefitsAccrued salaries and benefits4,200 4,892 Accrued salaries and benefits4,024 5,578 
Accrued bank chargesAccrued bank charges1,412 1,371 Accrued bank charges1,922 1,644 
Accrued legal fees176 422 
Accrued other professional feesAccrued other professional fees1,316 1,619 Accrued other professional fees1,291 1,169 
Accrued taxesAccrued taxes1,355 4,908 Accrued taxes1,579 1,329 
Lease liabilities, current portionLease liabilities, current portion1,273 — Lease liabilities, current portion5,341 5,258 
Contingent consideration liabilityContingent consideration liability1,800 1,321 
Deferred revenue loyalty programDeferred revenue loyalty program4,090 3,391 Deferred revenue loyalty program4,393 4,212 
OtherOther1,158 854 Other2,596 2,203 
$32,223 $33,760 $41,959 $41,855 

The following table shows the changes in the deferred revenue loyalty program liability (in thousands):

Balance, December 31, 20212022$3,3914,212 
Revenue deferred during the period2,1841,493 
Revenue recognized during the period(1,485)(1,312)
Balance, SeptemberJune 30, 20222023$4,0904,393 

NOTE 910 – DEBT
Debt consisted of the following (in thousands):

September 30, 2022December 31, 2021June 30, 2023December 31, 2022
Revolving credit facilityRevolving credit facility$43,000 $— Revolving credit facility$116,000 $76,000 
Term loan facilityTerm loan facility82,031 85,313 Term loan facility78,750 80,938 
125,031 85,313 194,750 156,938 
Less: Current portion of long-term debt (1)
Less: Current portion of long-term debt (1)
(4,429)(3,882)
Less: Current portion of long-term debt (1)
(6,069)(4,975)
Less: Debt origination costsLess: Debt origination costs(1,849)(2,220)Less: Debt origination costs(1,480)(1,728)
$118,753 $79,211 $187,201 $150,235 
(1)Current portion of long-term debt is net of debt origination costs of approximately $0.5 million both at SeptemberJune 30, 20222023 and December 31, 2021.2022, respectively.
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On June 24, 2021, theThe Company and certain of its domestic subsidiaries as borrowers and the other guarantors from time to time party thereto (collectively, the “Loan Parties”) entered into an Amended and Restated Credit Agreement (the “A&R Credit Agreement”) with a group of banking institutions. The A&R Credit Agreement amended and restated in its entirety the Company’s previous credit agreement. The A&R Credit Agreement providesprovided for a $150.0$150.0 million revolving credit facility, an $87.5$87.5 million term loan facility and an uncommitted incremental facility, which may be utilized for additional revolving or term loans, of up to $70.0 million.$70.0 million. The A&R Credit Agreement also provides for the issuance of letters of credit, which would reduce availability under the revolving credit facility. The proceeds of the term loan were used to refinance the existing term loan facility under the Company’s previous credit agreement, and the revolving credit facility is available for working capital, general corporate purposes and to pay fees and expenses in connection with this transaction. The maturity date of the A&R Credit Agreement is June 24, 2026.

This refinancingOn November 11, 2022, the Loan Parties entered into a First Amendment Agreement (the “First Amendment”) to the A&R Credit Agreement. The Amendment replaces LIBOR as a benchmark interest rate for loans under the A&R Credit Agreement with the secured overnight financing rate as administered by the Federal Reserve Bank of New York (“SOFR”), and amends all applicable provisions of the A&R Credit Agreement with respect to such replacement of LIBOR as the benchmark interest rate. Except as amended by the First Amendment, the A&R Credit Agreement remains in full force and effect.

Effective as of April 18, 2023, the Company amended its A&R Credit Agreement to increase the revolving credit commitments available thereunder from an aggregate of $150.0 million to $220.0 million. The credit commitments are available for general corporate purposes to support the Company’s growth and to fund working capital needs and will be subject to the same interest rate and other terms applicable to the outstanding revolving credit commitments under the A&R Credit Agreement. In addition, as amended, the A&R Credit Agreement provides the Company with a refreshed uncommitted incremental facility which may be utilized for new revolving credit facilities or term loans in an aggregate amount of up to $70.0 million. The amendment was accounted for as a debt modification. The balance of the unamortized debt origination costs of $1.8 million under the Company’s previous credit agreement, the origination costs paid to the Loan Parties of $1.0 million in connection with the term loan facility of the A&R Credit Agreement and the additional debt origination costs paid to the Loan Parties and third-party costs of $1.8approximately $0.7 million incurred in connection with the revolving credit facility of the A&R Credit Agreement will be associated with the new arrangement, and therefore, theythis amendment will be amortized over the remaining life of the A&R Credit Agreement using the straight-line method, as it is not significantly different than the effective interest method. Debt origination costs paid to third parties related to a portion of the term loan facility in connection with the A&R Credit Agreementamendment were expensed as incurred during the second quarter of 2021.2023.

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The unamortized portion of debt origination costs totaled approximately $3.5 million and $4.5$3.3 million at SeptemberJune 30, 20222023 and December 31, 2021,2022, respectively. Amortization of debt origination costs is included as a component of interest expense in the condensed consolidated statements of income and comprehensive income and amounted to approximately $0.2$0.3 million for both the three months ended SeptemberJune 30, 2023 and 2022, and 2021, and $0.8 million and $0.6$0.5 million for both the ninesix months ended SeptemberJune 30, 20222023 and 2021, respectively.2022.

At the election of the Company, interest on the term loan facility and revolving credit facilityloans under the A&R Credit Agreement, isas amended, may be determined by reference to either LIBOR (subject to replacement) or a “base rate”, in each caseSOFR plus an index adjustment of 0.10% and an applicable margin ranging between 2.50% and 3.00% per annum for LIBOR loans and between 1.50% and 2.00% per annum for base rate loans depending onbased upon the level of ourCompany’s consolidated leverage ratio, as calculated pursuant to the terms of the A&R Credit Agreement. Loans (other than Term Loans, as defined in the A&R Credit Agreement), may also bear interest at the Base Rate, plus an applicable margin ranging between 1.50% and 2.00% based upon the Company’s consolidated leverage ratio, as so calculated. The Company is also required to pay a fee on the unused portion of the revolving credit facility equal to 0.35% per annum. The effective interest rates for the ninesix months ended SeptemberJune 30, 20222023 for the term loan facility and revolving credit facility were 4.18%8.03% and 0.80%1.85%, respectively, and 3.59% and 0.75% for the six months ended June 30, 2022, respectively.

Interest is payable (x)(i) generally on the last day of each interest period selected for LIBORSOFR loans, but in any event, not less frequently than every three months, and (ii) on the last business day of each quarter for base rate loans and (y) at final maturity. The principal amount of the term loan facility under the A&R Credit Agreement must be repaid in consecutive quarterly installments of 5.0% in years 1 and 2, 7.5% in year 3, and 10.0% in years 4 and 5, in each case on the last day of each quarter, commencingwhich commenced in September 2021 with a final balloon payment at maturity. The term loans under the A&R Credit Agreement may be prepaid at any time without premium or penalty. Revolving loans may be borrowed, repaid and reborrowed from time to time in accordance with the terms and conditions of the A&R Credit Agreement. The Company is also required to repay the loans upon receipt of net proceeds from certain casualty events, upon the disposition of certain property and upon incurrence of indebtedness not permitted by the A&R Credit Agreement. In addition, the Company is required to make mandatory prepayments annually from excess cash flow if the Company’s consolidated leverage ratio (as calculated under the A&R Credit Agreement) is greater than or equal to 3.0, and the remainder of any such excess cash flow is contributed to the available amount which may be used for a variety of purposes, including investments and distributions.

The A&R Credit Agreement, as amended, contains financial covenants that require the Company to maintain a quarterly minimum fixed charge coverage ratio of 1.25:1.00 and a quarterly maximum consolidated leverage ratio of 3.25:1.00.1.00 and generally restricts the ability of the Company to make certain restricted payments, including the repurchase of shares of its common stock, provided that the Company may make restricted payments, among others, (i) without limitation so long as the Consolidated Leverage Ratio (as defined in the A&R Credit Agreement), as of the then most recently completed four fiscal quarters of the Company, after giving pro forma effect to such restricted payments, is 2.25:1.00 or less, (ii) that do not exceed, in the aggregate during any fiscal year, the greater of (x) $23.8 million and (y) 25.00% of Consolidated EBITDA (as defined in the A&R Credit Agreement) for the then most recently completed four fiscal quarters of
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the Company and (iii) to repurchase Company common stock from current or former employees in an aggregate amount of up to $10.0 million per calendar year. The A&R Credit Agreement also contains covenants that limit the Company’s and its subsidiaries’ ability to, among other things, grant liens, incur additional indebtedness, make acquisitions or investments, dispose of certain assets, change the nature of their businesses, enter into certain transactions with affiliates or amend the terms of material indebtedness.

In addition, the A&R Credit Agreement generally restricts the payment of dividends or cash distributions by the Company with certain exceptions, including the following: i) to repurchase the Company’s common stock from current or former employees in an aggregate amount of up to $10.0 million per calendar year, and ii) other restricted payments in an aggregate amount not to exceed $40.0 million plus the Available Amount (as defined in the A&R Credit Agreement). Through September 30, 2022 and as described in Note 12, the Company funded repurchases of shares of the Company’s common stock in an aggregate amount of $40.0 million plus the Available Amount.

The obligations under the A&R Credit Agreement are guaranteed by the Company and certain domestic subsidiaries of the Company and secured by liens on substantially all of the assets of the Loan Parties, subject to certain exclusions and limitations.

NOTE 1011 – FAIR VALUE MEASUREMENTS
The Company determines fair value in accordance with the provisions of FASB guidance, Fair Value Measurements and Disclosures, which defines fair value as an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-level fair value hierarchy that prioritizes the inputs used to measure fair value was established. There are three levels of inputs used to measure fair value and for disclosure purposes. Level 1 relates to quoted market prices for identical assets or liabilities in active markets. Level 2 relates to observable inputs other than quoted prices included in Level 1. Level 3 relates to unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

The Company’s non-financial assets measured at fair value on a nonrecurring basis include goodwill and intangible assets. The determination of our intangible fair values includes several assumptions and inputs (Level 3) that are subject to various risks and uncertainties. Management believes it has made reasonable estimates and judgments concerning these risks and uncertainties. All other financial assets and liabilities are carried at amortized cost.

The Company’s cash and cash equivalents balances are representative of their fair values as these balances are comprised of deposits available on demand.demand or overnight. The carrying amounts of accounts receivable, prepaid wires, accounts payable and wire transfers and money orders payable are representative of their fair values because of the short turnover of these instruments.

The Company’s financial liabilities include its revolving credit facility and term loan facility. The fair value of the term loan facility, which approximates book value, is estimated by discounting the future cash flows using a current market interest rate. The estimated fair value of
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the revolving credit facility would approximate face value given the payment schedule and interest rate structure, which approximates current market interest rates.

NOTE 1112 – SHARE-BASED COMPENSATION
International Money Express, Inc. Omnibus Equity Compensation Plans

The International Money Express, Inc. 2020 Omnibus Equity Compensation Plan (the “2020 Plan”) provides for the granting of stock-based incentive awards, including stock options, restricted stock units (“RSUs”), restricted stock awards (“RSAs”) and performance stock units (“PSUs”) to employees and independent directors of the Company. There are 3.7 million shares of the Company’s common stock approved for issuance under the 2020 Plan, which includes 0.4 million shares that were previously subject to awards granted under the International Money Express, Inc. 2018 Omnibus Equity Compensation Plan (the “2018 Plan” and together with the 2020 Plan, the “Plans”). Although awards remain outstanding under the 2018 Plan, which was terminated effective June 26, 2020, no additional awards may be granted under the 2018 Plan. As of SeptemberJune 30, 2022, 2.62023, 2.1 million shares remained available for future awards under the 2020 Plan.

Stock Options

The value of each option grant is estimated on the grant date using the Black-Scholes option pricing model (“BSM”). The option pricing model requires the input of subjective assumptions, including the grant date fair value of our common stock, expected volatility, risk-free interest rates, expected term and expected dividend yield. To determine the grant date fair value of the Company’s common stock, we use the closing market price of our common stock at the grant date. We also use an expected volatility based on the historical volatility of the Company’s common stock and the “simplified” method for calculating the expected life of our stock options as the options are “plain vanilla” and we do not have any significant historical post-vesting activity. We have elected to account for forfeitures as they occur. The risk-free interest rates are obtained from publicly available U.S. Treasury yield curve rates.

Share-based compensation is recognized as an expense on a straight-line basis over the requisite service period, which is generally the vesting period. The stock options issued under the Plans have 10-year terms and generally vest in four equal annual installments beginning one year after the date of the grant. The Company recognized compensation expense for stock options of approximately $0.1 million and $0.5 million for the three months ended SeptemberJune 30, 20222023 and 2021,2022, respectively, and $1.2$0.3 million and $1.8$1.1 million for the ninesix months ended SeptemberJune 30, 20222023 and 2021,2022, respectively, which are included in salaries and benefits in the condensed consolidated statements of income and comprehensive income. As of SeptemberJune 30, 2022,2023, unrecognized compensation expense related to stock options of approximately $0.9$0.3 million is expected to be recognized over a weighted-average period of 1.30.9 years.

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A summary of stock option activity under the Plans during the ninesix months ended SeptemberJune 30, 20222023 is presented below:

Number of
Options
Weighted-Average
Exercise Price
Weighted-Average
Remaining Contractual
Term (Years)
Weighted-Average
Grant Date
Fair Value
Number of
Options
Weighted-Average
Exercise Price
Weighted-Average
Remaining Contractual
Term (Years)
Weighted-Average
Grant Date
Fair Value
Outstanding at December 31, 20211,898,687 $11.24 7.11$4.17 
Outstanding at December 31, 2022Outstanding at December 31, 2022711,050 $11.56 6.26$4.28 
GrantedGranted— $— $— Granted— $— $— 
ExercisedExercised(1,018,137)$10.51 $3.70 Exercised(67,250)$12.22 $4.96 
ForfeitedForfeited(114,500)$14.68 $6.72 Forfeited(11,250)$14.07 $6.54 
Outstanding at September 30, 2022766,050 $11.71 6.57$4.42 
Outstanding at June 30, 2023Outstanding at June 30, 2023632,550 $11.44 5.73$4.17 
Exercisable at September 30, 2022577,925 $11.05 6.27$4.00 
Exercisable at June 30, 2023Exercisable at June 30, 2023531,300 $11.03 5.56$3.99 

Restricted Stock Units

The RSUs granted under the Plans to the Company’s employees generally vest in four equal annual installments beginning one year after the date ofset forth in the applicable grant agreement, while RSUs issued to the Company’s independent directors vest on the one-year anniversary from the grant date. The Company recognized compensation expense for RSUs of approximately $0.5$0.7 million and $0.3$0.5 million for the three months ended SeptemberJune 30, 20222023 and 2021,2022, respectively, and $1.3 million and $0.8 million for the ninesix months ended SeptemberJune 30, 20222023 and 2021,2022, respectively, which are included in salaries and benefits in the condensed consolidated statements of income and comprehensive income.
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As of SeptemberJune 30, 2022,2023, unrecognized compensation expense related to RSUs of approximately $4.6$6.7 million is expected to be recognized over a weighted-average period of 1.81.9 years.

A summary of RSU activity during the ninesix months ended SeptemberJune 30, 20222023 is presented below:

Number of RSUsWeighted-Average
Grant Price
Number of RSUsWeighted-Average
Grant Price
Outstanding (nonvested) at December 31, 2021231,934 $14.99 
Outstanding (nonvested) at December 31, 2022Outstanding (nonvested) at December 31, 2022316,902 $16.58 
Granted(1)Granted(1)216,426 $17.47 Granted(1)175,121 $24.80 
VestedVested(68,689)$14.95 Vested(101,700)$17.36 
ForfeitedForfeited(40,104)$15.69 Forfeited(17,319)$19.40 
Outstanding (nonvested) at September 30, 2022339,567 $16.50 
Outstanding (nonvested) at June 30, 2023Outstanding (nonvested) at June 30, 2023373,004 $20.10 
(1) The aggregate fair value of all RSUs granted during the six months ended June 30, 2023 was approximately $4.3 million.

Share Awards

The Lead Independent Director and Chairs of the Committees of the Board of Directors are granted, in aggregate, $64.0$80.5 thousand in awards of fully vested shares of the Company’s common stock, payable on a quarterly basis at the end of each quarter in payment of fees earned in such capacities; effective in the third quarter of 2022 this amount was increased to $80.5 thousand.capacities. During the three and ninesix months ended SeptemberJune 30, 2022, 7822023, 781 and 2,5601,607 fully vested shares, respectively, were granted to the Lead Independent Director and Chairs of the Committees of the Board of Directors resulting in compensation expense of $20.1 thousand and $52.1$40.3 thousand, respectively, recorded and included in salaries and benefits in the condensed consolidated statements of income and comprehensive income.

Restricted Stock Awards

The RSAs issued under the Plans to the Company’s employees generally vest in four equal annual installments beginning one year after the date of grant.set forth in the applicable grant agreement. The Company recognized compensation expense for RSAs granted of $0.2$0.4 million and $0.1$0.2 million for the three months ended SeptemberJune 30, 20222023 and 2021,2022, respectively, and $0.5$0.6 million and $0.2$0.3 million for the ninesix months ended SeptemberJune 30, 20222023 and 2021,2022, respectively, which are included in salaries and benefits in the condensed consolidated statements of income and comprehensive income. As of SeptemberJune 30, 2022,2023, there was $2.0$3.4 million of unrecognized compensation expense related to RSAs, which is expected to be recognized over a weighted-average period of 2.0 years.

A summary of RSA activity during the ninesix months ended SeptemberJune 30, 20222023 is presented below:

Number of RSAsWeighted-Average
Grant Price
Outstanding (nonvested) at December 31, 202188,215 $14.17 
Granted93,400 $16.06 
Vested(22,053)$14.17 
Forfeited— $— 
Outstanding (nonvested) at September 30, 2022159,562 $15.28 
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Number of RSAsWeighted-Average
Grant Price
Outstanding (nonvested) at December 31, 2022159,562 $15.28 
Granted(1)
80,402 $25.68 
Vested(47,984)$15.68 
Forfeited— $— 
Outstanding (nonvested) at June 30, 2023191,980 $19.53 
(1) The aggregate fair value of all RSAs granted during the six months ended June 30, 2023 was approximately $2.1 million.

Performance Stock Units

PSUs granted to the Company’s employees generally vest subject to attainment of performance criteria during the service period established by the Compensation Committee. Each PSU represents the right to receive one share of common stock, and the actual number of shares issuable upon vesting is determined based upon performance compared to financial performance targets. The PSUs vest based on the achievement of certain revenue or adjusted earnings per share parameters for a period of twoup to three years combined with a service period of three years. Compensation cost is recognized over the requisite service period when it is probable that the performance condition will be satisfied. During the third quarter of 2022, the Company reassessed the probability of vesting for PSU awards and determined that it was probable that a higher performance target will be achieved. Therefore, the Company recognized a cumulative catch-up adjustment of approximately $1.1 million as additional compensation expense for the three months ended September 30, 2022.2022 (none in 2023). On February 28, 2023, the Compensation Committee determined that the higher performance target was achieved and approved the incremental grant of PSUs.

The Company recognized compensation expense for PSUs of $1.8$1.0 million and $0.2$0.5 million for the three months ended SeptemberJune 30, 20222023 and 2021,2022, respectively, and $2.5$1.8 million and $0.5$0.7 million for the ninesix months ended SeptemberJune 30, 20222023 and 2021,2022, respectively, which are included in salaries and benefits in the condensed consolidated statements of income and comprehensive income. As of SeptemberJune 30,
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2022, 2023, there was $4.4$5.7 million of unrecognized compensation expense related to PSUs, which is expected to be recognized over a weighted-average period of 1.81.9 years.

A summary of PSU activity during the ninesix months ended SeptemberJune 30, 20222023 is presented below:

Number of PSUsWeighted-Average
Remaining Contractual
Term (Years)
Weighted-Average
Grant Price
Number of PSUsWeighted-Average
Remaining Contractual
Term (Years)
Weighted-Average
Grant Price
Outstanding (nonvested) at December 31, 2021171,500 9.17$14.17 
Outstanding (nonvested) at December 31, 2022Outstanding (nonvested) at December 31, 2022300,871 8.63$17.30 
Granted(1)Granted(1)131,224 $21.45 Granted(1)318,386 $19.49 
VestedVested— $— Vested— $— 
ForfeitedForfeited— $— Forfeited— $— 
Outstanding (nonvested) at September 30, 2022302,724 8.88$17.33 
Outstanding (nonvested) at June 30, 2023Outstanding (nonvested) at June 30, 2023619,257 8.37$18.43 
(1) The aggregate fair value of all PSUs granted during the six months ended June 30, 2023 was approximately $6.2 million.

NOTE 1213 – EQUITY
In August 2021, the Company’s Board of Directors approved a stock repurchase program (the “Repurchase Program”) that authorizes the Company to purchase up to $40.0 million of outstanding shares of the Company’s common stock. On March 3, 2023 the Board of Directors approved an increase to the Repurchase Program that authorizes the Company to purchase an additional $100.0 million of its outstanding shares. Under the Repurchase Program, the Company is authorized to repurchase shares from time to time in accordance with applicable laws, both on the open market and in privately negotiated transactions and may include the use of derivative contracts or structured share repurchase agreements. The timing and amount of repurchases depends on several factors, including market and business conditions, the trading price of the Company’s common stock and the nature of other investment opportunities. The Repurchase Program may be limited, suspended or discontinued at any time without prior notice. The Repurchase Program does not have an expiration date. UnderThe A&R Credit Agreement, as amended, permits the terms ofCompany to make restricted payments (including share repurchases, among others), (i) without limitation so long as the Consolidated Leverage Ratio (as defined in the A&R Credit Agreement, as amended), as of the then most recently completed four fiscal quarters of the Company, has restrictionsafter giving pro forma effect to such restricted payments, is 2.25:1.00 or less, (ii) that limit the maximum amount of repurchases to (i) $40.0 milliondo not exceed, in the aggregate (plusduring any fiscal year, the Available Amount greater of (x) $23.8 million and (y) 25.00% of Consolidated EBITDA
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(as defined in the A&R Credit Agreement) for the then most recently completed four fiscal quarters of the Company and (ii) $10.0 million annually for shares held by any(iii) to repurchase Company common stock from current or former officer, director, employee or consultant (or any spouses, ex-spouses or estatesemployees in an aggregate amount of the foregoing) of the Company or its subsidiaries.up to $10.0 million per calendar year.

The Company accounts for purchases of treasury stock under the cost method. Any direct costs incurred to acquire treasury stock are considered stock issue costs and added to the cost of the treasury stock. On August 9, 2022,May 5, 2023, the Company entered into an agreement with SPC Intermex, LP, a related party, for the purchase of 1,172,485500,000 shares of the Company’s common stock for a total purchase price of $27.6$12.6 million, in a privately-negotiated transaction. During the three and ninesix months ended SeptemberJune 30, 2022,2023, including the shares previously mentioned, the Company purchased 1,287,714916,122 shares and 2,015,615 shares, respectively, for an aggregate purchase price of $30.1 million and $43.7 million, respectively. During both the three and nine months ended September 30, 2021, the Company purchased 70,4401,232,581 shares for an aggregate purchase price of $1.2 million.$22.9 million and $30.5 million, respectively. During the three and six months ended June 30, 2022, the Company purchased 503,513 shares and 727,901 shares for an aggregate purchase price of $10.0 million and $13.6 million, respectively. As of SeptemberJune 30, 2022,2023, there was $18.3$90.7 million available for future share repurchases under the Repurchase Program. The share repurchases under the Repurchase Program and the privately negotiated transaction totaled $49.3 million through September 30, 2022.

NOTE 1314 – EARNINGS PER SHARE
Basic earnings per share is calculated by dividing net income for the period by the weighted-average number of common shares outstanding for the period. In computing dilutive earnings per share, basic earnings per share is adjusted for the assumed issuance of all applicable potentially dilutive share-based awards, including common stock options, RSUs, RSAs and PSUs.

Below are basic and diluted earnings per share for the periods indicated (in thousands, except for share data):
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Three Months Ended September 30,Nine Months Ended September 30,Three Months Ended June 30,Six Months Ended June 30,
20222021202220212023202220232022
Net income for basic and diluted earnings per common shareNet income for basic and diluted earnings per common share$16,626 $11,507 $44,264 $33,711 Net income for basic and diluted earnings per common share$15,422 $15,984 $27,184 $27,638 
Shares:Shares:Shares:
Weighted-average common shares outstanding – basicWeighted-average common shares outstanding – basic37,390,632 38,647,931 37,999,709 38,441,767 Weighted-average common shares outstanding – basic36,001,670 38,257,156 36,239,997 38,309,295 
Effect of dilutive securities:Effect of dilutive securities:Effect of dilutive securities:
RSUsRSUs136,602 66,964 103,526 44,843 RSUs122,030 111,918 131,335 86,988 
Stock optionsStock options559,556 539,111 607,535 548,371 Stock options329,196 713,109 332,531 631,525 
RSAsRSAs270,203 25,199 149,888 11,336 RSAs52,046 45,064 61,626 35,500 
PSUsPSUs68,875 56,846 46,625 25,305 PSUs366,732 101,744 350,001 89,731 
Weighted-average common shares outstanding – dilutedWeighted-average common shares outstanding – diluted38,425,868 39,336,051 38,907,283 39,071,622 Weighted-average common shares outstanding – diluted36,871,674 39,228,991 37,115,490 39,153,039 
Earnings per common share – basicEarnings per common share – basic$0.44 $0.30 $1.16 $0.88 Earnings per common share – basic$0.43 $0.42 $0.75 $0.72 
Earnings per common share – dilutedEarnings per common share – diluted$0.43 $0.29 $1.14 $0.86 Earnings per common share – diluted$0.42 $0.41 $0.73 $0.71 

As of SeptemberJune 30, 2022,2023, there were 12.5111.9 thousand stock optionsRSUs and 15.158.4 thousand RSUsRSAs excluded from the diluted earnings per share calculation because, under the treasury stock method, the inclusion of these would be anti-dilutive.

As of SeptemberJune 30, 2021,2022, there were 0.4 million76.3 thousand stock options, 5.9 thousand RSUs and 131.2 thousand PSUs excluded from the diluted earnings per share calculation because, under the treasury stock method, the inclusion of these would be anti-dilutive.

As discussed in Note 12,13, the Company repurchased 1,287,714916,122 shares and 2,015,6151,232,581 shares of treasuryits common stock for $30.1 million and $43.7 million in the three and ninesix months ended SeptemberJune 30, 2022,2023, respectively. The effect of these repurchases on the Company’s weighted-average shares outstanding for the three and ninesix months ended SeptemberJune 30, 20222023 was a reduction of 1,278,044737,711 shares and 525,131464,658 shares, respectively, due to the timing of the repurchases.

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NOTE 1415 – INCOME TAXES
A reconciliation between the income tax provision at the U.S. statutory tax rate and the Company’s income tax provision on the condensed consolidated statements of income and comprehensive income is below (in thousands, except for tax rates):

Three Months Ended
September 30,
Nine Months Ended
September 30,
Three Months Ended
June 30,
Six Months Ended
June 30,
20222021202220212023202220232022
Income before income taxesIncome before income taxes$19,280 $15,136 $57,534 $45,316 Income before income taxes$22,091 $22,095 $38,739 $38,254 
U.S statutory tax rateU.S statutory tax rate21 %21 %21 %21 %U.S statutory tax rate21 %21 %21 %21 %
Income tax expense at statutory rateIncome tax expense at statutory rate4,049 3,179 12,082 9,516 Income tax expense at statutory rate4,639 4,640 8,135 8,033 
State tax expense, net of federal benefitState tax expense, net of federal benefit1,199 736 3,552 2,409 State tax expense, net of federal benefit1,741 1,369 3,055 2,353 
Foreign tax rates different from U.S. statutory rateForeign tax rates different from U.S. statutory rate38 83 48 Foreign tax rates different from U.S. statutory rate(5)34 43 45 
Non-deductible expensesNon-deductible expenses236 74 592 210 Non-deductible expenses283 220 508 357 
Stock compensationStock compensation(2,890)(368)(2,952)(578)Stock compensation(67)(41)(274)(61)
OtherOther22 — (87)— Other78 (111)88 (111)
Total income tax provisionTotal income tax provision$2,654 $3,629 $13,270 $11,605 Total income tax provision$6,669 $6,111 $11,555 $10,616 

Effective income tax rates for interim periods are based upon our current estimated annual rate. The Company’s effective income tax rate varies based upon an estimate of taxable earnings as well as on the mix of taxable earnings in the various states and countries in which we operate. Changes in the annual allocation and apportionment of the Company’s activity among these jurisdictions results in changes to the effective rate utilized to measure the Company’s deferred tax assets and liabilities.

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Our income tax provision includes the expected benefit of all deferred tax assets, including our net operating loss carryforwards. With few exceptions, our U.S federal and state net operating loss carryforwards will expire from 20292039 through 2038.2042 and our foreign net operating losses will not expire. After consideration of all evidence, both positive and negative, management has determined that no valuation allowance is required at SeptemberJune 30, 20222023 on the Company’s U.S. federal or state deferred tax assets; however, a valuation allowance has been recorded at SeptemberJune 30, 20222023 on deferred tax assets associated with Canadian, Spanish, Italian, German and Dutch net operating loss carryforwards. Utilization of the Company's net operating loss carryforwards is subject to limitation under Internal Revenue Code Section 382 and similar tax provisions in the foreign jurisdictions in which we operate.

As presented in the income tax reconciliation above, the tax provision recognized on the condensed consolidated statements of income and comprehensive income was impacted by state taxes, non-deductible officer compensation and share-based compensation tax benefits, and foreign tax rates applicable to the Company’s foreign subsidiaries that are higher or lower than the U.S. statutory rate. Our effective state tax rate for the three and six months ended June 30, 2023 was higher than our effective state tax rate for the three and six ended June 30, 2022. The increase in our effective state tax rate is primarily a result of revenue from La Nacional earned during the three and six months ended June 30, 2023 which is sourced to states with relatively higher tax rates and from increases in non-deductible officer compensation and share-based compensation tax benefits.expenses.

NOTE 1516 – COMMITMENTS AND CONTINGENCIES
Leases

In the ordinary course of business, the Company enters into leases for office space, warehouses and certain Company-operated store locations. Refer to Note 7 - Leases.
Contingencies and Legal Proceedings

The Company is subject to legal proceedings and claims that have arisen in the ordinary course of its business and have not been finally adjudicated. Although there can be no assurance as to the ultimate disposition of these matters, it is the opinion of the Company’s management, based upon the information available at this time and the stage of the proceedings, that it is not possible to determine the probability of loss or estimate of damages and, therefore, the Company has not established a reserve for any of these proceedings.

The Company operates in all 50 states in the United States, two U.S. territories and threeseven other countries. Money transmitters and their agents are under regulation by state and federal laws. Violations may result in civil or criminal penalties or a prohibition from providing money transfer services in a particular jurisdiction. It is the opinion of the Company’s management, based on information available at this
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time, that the expected outcome of regulatory examinations will not have a material adverse effect on either the results of operations or financial condition of the Company.

Regulatory Requirements

Pursuant to applicable licensing laws, certain domestic subsidiaries of the Company are required to maintain minimum tangible net worth and liquid assets (eligible securities)(permissible investments) to cover the amount outstanding of wire transfers and money orders payable. As of SeptemberJune 30, 2022,2023, the Company’s subsidiaries were in compliance with these two requirements.

NOTE 16 – SUBSEQUENT EVENTS
On November 1, 2022 (the “Closing Date”), the Company finalized the previously announced acquisition of 100% of the issued and outstanding stock of La Nacional (see Note 1) (the “Acquisition”). La Nacional maintains a significant presence in the Northeast region of the U.S., which complements the Company's current business in the region and expands the Company's market share in the Dominican Republic.

The consideration paid by the Company in connection with the Acquisition was $42.3 million in cash, subject to customary purchase price adjustments. The Company may also pay up to an additional $2.4 million in cash based on the achievement of specified financial performance targets as well as operating performance milestones during 2023. The Company incurred $0.3 million and $0.5 million of acquisition-related costs in the three and nine months ended September 30, 2022, respectively, which are included in other selling, general and administrative expenses on the condensed consolidated statements of income and comprehensive income.

As of the date of these condensed consolidated financial statements, due to the recent closing of the Acquisition, the initial accounting for the Acquisition is incomplete, including a preliminary allocation of the consideration transferred to the fair value of the assets acquired and liabilities assumed. In addition, due to the timing of the Acquisition, the income tax considerations of this transaction have not been fully determined.


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ITEM 2.    MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) should be read in conjunction with our Unaudited Condensed Consolidated Financial Statements and related Notes included in this Quarterly Report on Form 10-Q, as well as our Audited Consolidated Financial Statements and related Notes and MD&A included in our Annual Report on Form 10-K for the year ended December 31, 2021.2022. This Quarterly Report on Form 10-Q contains forward-looking statements that involve risks and uncertainties. The forward-looking statements are not historical facts, but rather are based on current expectations, estimates, assumptions and projections about our industry, business and future financial results. Our actual results could differ materially from the results contemplated by these forward-looking statements due to a number of factors, including those discussed in other sections of this Quarterly Report on Form 10-Q, including “Risk Factors,” which are incorporated in the MD&A by reference. See “Special Note Regarding Forward-Looking Statements” for additional factors relating to such statements, and see “Risk Factors” in the documents that we have filed with or furnished to the SEC for a discussion of certain risk factors applicable to our business, financial condition and results of operations. Past operating results are not necessarily indicative of operating results in any future periods.

Overview
We are a leading omnichannel money remittance serviceservices company focused primarily on the United States of America (“United States” or “U.S.”) to Latin America and the Caribbean (“LAC”) corridor, which includes Mexico, Central and South America and the Caribbean. In recent years, we expanded our services to allow remittances to Africa and Asia from the United States and also began offering sending services from Canada to Latin America and Africa. Also, through the acquisition of LAN Holdings we now provide remittance services from Spain, Italy and Germany to Africa, Asia and Latin America. We utilize our proprietary technology to deliver convenient, reliable and value-added services to our customersconsumers through a broad network of sending and paying agents. Our remittance services, which include a comprehensive suite of ancillary financial processing solutions and payment services, are available in all 50 states in the U.S., Washington D.C., Puerto Rico and 13 provinces in Canada as well as in certain locations in Spain, Italy and Germany, where consumers can send money to beneficiaries in 16 LAC countries, eightmore than 60 countries in LAC, Africa and two countries in Asia. Our services are accessible in person through over 100,000 independent sending and paying agents and 37124 Company-operated stores, as well as online and via Internet-enabled mobile devices. Additionally, our product and service portfolio include online payment options, pre-paid debit cards and direct deposit payroll cards, which may present different cost, demand, regulatory and risk profiles relative to our core money remittance business.

Money remittance services to LAC countries, mainly Mexico and Guatemala, are the primary source of our revenue. These services involve the movement of funds on behalf of an originating consumer for receipt by a designated beneficiary at a designated receiving location. Our remittances to LAC countries are primarily generated in the United States by consumers with roots in Latin American and Caribbean countries, many of whom do not have an existing relationship with a traditional full-service financial institution capable of providing the services we offer. We provide these consumers with flexibility and convenience to help them meet their financial needs. We believe many consumers who use our services may have access to traditional banking services, but prefer to use our services based on reliability, convenience and value. We generate money remittance revenue from fees paid by consumers (i.e., the senders of funds), which we share with our sending agents in the originating country and our paying agents in the destination country. Remittances paid in local currencies that are not pegged to the U.S. dollar, Canadian dollar or Euro can also generate revenue if we are successful in our daily management of currency exchange spreads.

Our money remittance services enable consumers to send funds through our broad network of locations in the United StatesStates. Canada, Spain, Italy and CanadaGermany that are primarily operated by third-party businesses, as well as through our Company-operated stores.stores located in the United States, Canada, Spain, Italy and Germany. Transactions are processed and payment is collected by our agentagents (“sending agent(s)”) and those funds become available for pickup by the beneficiary at the designated destination, usually within minutes, at any Intermex payer location (“paying agent(s)”). We refer to our sending agents and our paying agents collectively as agents. In addition, our services are offered digitally through Intermexonline.com and via Internet-enabled mobile devices. For the ninesix months ended SeptemberJune 30, 2022,2023, we have grown our agent network by approximately 7.1%.15.6% primarily due to the agents added as a result of the acquisition of LAN Holdings offset by the termination of low volume and unproductive sending agents. For the ninesix months ended SeptemberJune 30, 2022,2023, principal amount sent increased by approximately 22.2%20.8% to $15.2$11.7 billion, as compared to the same period in 20212022, and total remittances processed were approximately 34.128.0 million, representing an increase of approximately 17.8%27.6%, as compared to the same period in 2021.2022.

COVID-19 Update
The coronavirus (“COVID-19”) pandemic that started in 2020 has had and continues to have a significant effect on economic conditions in the United States of America (“United States” or “U.S.”), as the efforts of federal, state, local and foreign governments to react to the public health crisis with mitigation measures has created, and to a certain degree continues to cause, significant uncertainties in the U.S. and global economy, particularly as a result of the emergence of new variants and sub-variants of COVID-19. Public health officials and medical professionals have warned that COVID-19 resurgences may continue to occur due to a variety of factors, including the extent of economic activity, social interaction, vaccination rates and the emergence of potent variants. It is unclear if and when resurgences will occur or how long any resurgence will last, how severe it will be, and what safety measures governments and businesses will impose in response.

In response to the pandemic, we continue to prioritize taking appropriate actions to protect the health and safety of our employees. We have adjusted standard operating procedures within our business operations to ensure continued worker safety, and are continually monitoring evolving health guidelines and responding to changes as appropriate. These procedures include reconfiguring facilities to reduce employee density, expanded and more frequent cleaning within facilities, implementation of appropriate distancing programs and requiring use of certain personal protective equipment at our call centers in Mexico and Guatemala. As of September 30, 2022, all of our facilities are open and operating with adjustments to ensure compliance with social distancing and facial covering recommendations and requirements established by state and local regulations.

Although certain measures that restrict the normal course of operations of businesses and consumers were still in place for the three and nine months ended September 30, 2022, such measures did not have a material adverse effect on the Company’s financial condition, results of operations and cash flows for the three and nine months ended September 30, 2022. Notwithstanding the foregoing, the Company’s business is dependent upon the willingness and ability of its employees, network of agents and consumers to conduct money transfer services and the ultimate effects of the economic disruption caused by the pandemic and responses thereto. Although the Company’s operations continued effectively despite social distancing and other measures taken in response to the pandemic, the ultimate impact of the COVID-19 pandemic on our financial condition, results of operations and cash flows is subject to future developments, including the duration of the pandemic and the related extent of its severity, as well as its impact on the economic conditions, particularly the level of unemployment of our customers, inflation (including changes in wages) and governmental efforts to restrain inflation, interest rate levels and foreign exchange volatility, all of which remain uncertain and cannot be predicted at this time along with any potential material adverse effect on its financial condition, results of operations and cash flows.

Acquisition of La Nacional and LAN Holdings
On March 16, 2022, the Company entered into a definitive purchase agreement to acquire Envios de Valores La Nacional Corp. (“La Nacional”) and LAN Holdings, Corp. (“LAN Holdings”), which either directly or indirectly operate as money remittance companies in the United States, Canada and certain countries in Europe. OnEffective November 1, 2022, the Company entered into an Amended and Restated Stock Purchase Agreement to allow the parties to close oncompleted the acquisition of La Nacional and effective November 1, 2022 and to close onApril 5, 2023, we completed the acquisition of LAN Holdings at a later date following receipt of pending regulatory approvals.Holdings. See Note 162 in Item 1 Financial Statements for additional information regarding the closing of the acquisitionacquisitions of La Nacional on November 1, 2022.and LAN Holdings. The acquisition of LAN Holdings is expected to close late in the fourth quarter of 2022 or early 2023. The Company expects the integrationacquisitions of La Nacional and LAN Holdings to be completedstrengthen the Company’s presence in the four quarters following the closing of the respective transactions. Once La Nacional and LAN Holdings are fully integrated, the Company continues to expect the combined entities to contribute approximately $70.0 million to $80.0 million a year in revenues with an Adjusted EBITDA margin in the range of 9% to 11%. A quantitative reconciliation of projected Adjusted EBITDA margin to the most comparable GAAP measure is not available without unreasonable efforts because of the inherent difficulty in forecasting and quantifying the amounts necessary under GAAP guidance for operating or other adjusted items including, without limitation, integration costs and expenses, amortization of intangible assets and depreciation, which may be significant and difficult to project with a reasonable degree of accuracy, as the allocation of the purchase price to intangible assets and to property and equipment has not yet been performed, tax effects of certain adjustmentsDominican Republic, Europe and other items related to the acquisition.key markets in Latin America, Africa and Asia.

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Key Factors and Trends Affecting our Business
Various trends and other factors have affected and may continue to affect our business, financial condition and operating results, including, but not limited to:

the Company’sCompany's ability to successfully execute, manage, integrate and obtain the anticipated financial benefits of key acquisitions and mergers, including the acquisitionacquisitions of La Nacional and LAN Holdings;

economic factors such as inflation, the level of economic activity, recession risks and labor market conditions, as well as rising interest rates;

public health conditions, including the COVID-19 pandemic, responses thereto and the economic and market effects thereof;

competition in the markets in which we operate;

volatility in foreign exchange rates that could affect the volume of consumer remittance activity and/or affect our foreign exchange related gains and losses;

our ability to maintain favorable banking and agent relationships necessary to conduct our business;

credit risks from our agents and the financial institutions with which we do business;

bank failures, sustained financial illiquidity, or illiquidity at our clearing, cash management or custodial financial institutions;

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new technology or competitors that disrupt the current ecosystem, including by introducingthe introduction of new digital platforms;

cyber-attacks or disruptions to our information technology, computer network systems, data centers and phonemobile devices apps;

our ability to satisfy our debt obligations and remain in compliance with our credit facility requirements;

our success in developing and introducing new products, services and infrastructure;

consumer confidence in our brand and in consumer money transfers generally;

our ability to maintain compliance with applicable regulatory requirements;

international political factors, political stability, tariffs, border taxes or restrictions on remittances or transfers of money out offrom the United States and Canada;

outbound countries in which we operate;
currency restrictions and volatility in countries in which we operate or plan to operate;

consumer fraud and other risks relating to the authenticity of customers’ orders;

changes in immigration laws and their enforcement;

our ability to protect our brandbrands and intellectual property rights;

weakness in U.S. or international economic conditions;

changes in tax laws;laws in the countries we operate; and

our ability to recruit and retain key personnel.

Worldwide political and economic conditions in key Latin American markets, particularly Mexico, Guatemala and certain countries in South America, continue to exhibit instability, as evidenced by higher interest rates, high unemployment rates, in key Latin American markets, restricted lending activity, higher inflation, andvolatility in foreign currencies, volatility and low consumer confidence, some of which reflect the impact of the COVID-19 pandemic,and supply chain disruptions, among other economic and market factors. Specifically, continued political and economic unrest in Mexico, Guatemala and some countries in South America contributed to volatility. Our business has generally been resilient during times of economic instability as money remittances are essential to many recipients, with the funds used by the receiving parties for their daily needs; however, long-term sustained appreciation of the Mexican peso or Guatemalan quetzal as compared to the U.S. dollar could negatively affect our revenues and profitability.

Money remittance businesses have continued to be subject to strict legal and regulatory requirements, and we continue to focus on and regularly review our compliance programs. In connection with these reviews, and in light of regulatory complexity and heightened attention of governmental and regulatory authorities related to cybersecurity and compliance activities, we have made, and continue to make, enhancements to our processes and systems designed to detect and prevent cyber-attacks, consumer fraud, money laundering, terrorist financing and other illicit activities, along with enhancements to improve consumer protection, including the Dodd-Frank Wall Street Reform and Consumer Protection Act and similar regulations outside the United States. In coming periods, we expect these and future regulatory requirements will continue to result in changes to certain of our business and administrative practices and may result in increased costs.

We maintain a compliance department, the responsibility of which is to monitor transactions, detect and report suspicious activity, maintain appropriate records and train our employees and agents. An independent third-party periodically reviews our policies and
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procedures and performs independent testing to assess the effectiveness of our anti-money laundering and Bank Secrecy Act compliance program. We also maintain a regulatory affairs and licensing department, under the direction of our Chief Operating Officer, whose responsibility is to manage regulatory affairs and licensing.Compliance Officer.

The market for money remittance services is very competitive. Our competitors include a small number of large money remittance providers, financial institutions, banks and a large number of small niche money remittance service providers that serve select regions. We compete with larger companies, such as Western Union, MoneyGram, Remitly and Euronet, and a number of other smaller money services business (“MSB”) entities. We generally compete for money remittance agents on the basis of value, service, quality, technical and operational differences, commission structure and marketing efforts. As a philosophy, we sell credible solutions to our sending agents, not discounts or higher commissions, as is typical for the industry. We compete for money remittance customersconsumers on the basis of trust, convenience, service, efficiency of outlets, value, enhanced technology and brand recognition.

We have encountered and continue to expect to encounter increasing competition as new electronic platforms emerge that enable consumers to send and receive money through a variety of channels, but we do not expect adoption rates to be as significant in the near
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term for the consumer segment we serve. Regardless, we continue to innovate in the industry by differentiating our money remittance business through programs to foster loyalty among agents as well as consumers and have expanded our channels through which our services are accessed to include online and mobile offerings which are experiencing consumer adoption.

We qualify as an “emerging growth company” pursuant to the provisions of the Jumpstart Our Business Startups Act of 2012 (the “JOBS Act”), enacted on April 5, 2012. An “emerging growth company” can take advantage of certain exemptions from various reporting requirements that are applicable to other public companies that are not “emerging growth companies.” These provisions include:

an exemption from the auditor attestation requirement of Section 404 of the Sarbanes-Oxley Act in the assessment of the emerging growth company’s internal control over financial reporting;

an exemption from the adoption of new or revised financial accounting standards until they would apply to private companies; and

an exemption from compliance with any new requirements adopted by the Public Company Accounting Oversight Board requiring mandatory audit firm rotation or communication of Critical Audit Matters (“CAMs”) in the auditor’s report. A CAM is defined as any matter arising from the audit of the financial statements that was communicated or required to be communicated to the audit committee and that (1) relates to accounts or disclosures that are material to the financial statements; and (2) involves especially challenging, subjective, or complex auditor judgment.

We will remain an “emerging growth company” until the earlier of (1) the earliest of the last day of the fiscal year (a) following January 19, 2022, the fifth anniversary of us becoming a publicly-traded company, (b) in which we have total annual gross revenue of at least $1.07 billion or (c) in which we are deemed to be a large accelerated filer, which means the market value of our common stock that is held by non-affiliates exceeds $700.0 million as of the last business day of our prior second fiscal quarter, and (2) the date on which we have issued more than $1.0 billion in non-convertible debt during the prior three-year period. As of June 30, 2022, the market value of our common stock that is held by non-affiliates approximated $674.0 million. The Company will no longer be considered an emerging growth company effective December 31, 2022, as we reached the fifth anniversary of becoming a publicly-traded company.

How We Assess the Performance of Our Business
In assessing the performance of our business, we consider a variety of performance and financial measures. The key indicators of the financial condition and operating performance of our business are revenues, service charges from agents and banks, salaries and benefits, other selling, general and administrative expenses and net income. To help us assess our performance with these key indicators, we primarily use Adjusted Net Income, Adjusted Earnings per Share and Adjusted EBITDA as non-GAAP financial measures. We believe these non-GAAP measures provide useful information to investors and expanded insight to measure our revenue and cost performance as a supplement to our U.S. GAAP consolidated financial statements. See the “Adjusted Net Income and Adjusted Earnings per Share” and “Adjusted EBITDA” sections below for reconciliations of these non-GAAP financial measures to net income and earnings per share, our closest GAAP measures.

Revenues
Transaction volume is the primary generator of revenue in our business. Revenue on transactions is derived primarily from transaction fees paid by consumers to transfer money. Revenues per transaction vary based upon send and receive locations and the amount sent. In certain transactions involving different send and receive currencies, we generate foreign exchange gains based on the difference between the set exchange rate charged by us to the sender and the rate available to us in the wholesale foreign exchange market.

Operating Expenses
Service Charges from Agents and Banks

Service charges primarily consist of sending agent commissions and payer and bank fees. Service charges vary based on agent commission percentages and the amount of fees charged by thepayers and banks. Sending agents earn a commission on each transaction they process of approximately 50% of the transaction fee. Payer fees are based on a fixed amount per transaction processed. Service charges may increase if banks or payer organizations increase their fee structure or sending agents use higher fee methods to remit funds to us. Service charges also vary based on the method the consumer selects to send the transfer and the payer organization that facilitates the transaction.

Salaries and Benefits

Salaries and benefits include cash and share-based compensation associated with our corporate employees and sales team as well as employees at our Company-operated stores. Corporate employees include management, customer service, compliance, information technology, operations, finance, legal and human resources. Our sales team, located throughout the United States and Canada, is focused on supporting and growing our sending agent network. Share-based compensation is primarily recognized as an expense on a straight-line
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basis over the requisite service period; unrecognized compensation expense related to stock options, restricted stock units (“RSUs”), restricted stock awards (“RSAs”) and performance stock units (“PSUs”) of approximately $12.0$16.0 million is expected to be recognized over a weighted-average period of 1.791.9 years.

Other Selling, General and Administrative

General and administrative expenses primarily consist of fixed overhead expenses associated with our operations, such as information technology, telecommunications, rent, insurance, professional services, non-income or indirect taxes, facilities maintenance, provision for credit losses and other similar types of operating expenses. A portion of these expenses relate to our Company-operated stores;
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however, the majority relate to the overall business operation and compliance requirements of a regulated publicly traded financial services company. Selling expenses include expenses such as advertising and promotion, shipping, supplies and other expenses associated with serving and increasing our network of agents.

Transaction Costs

We incurred transaction costs associated with the acquisitions of La Nacional and LAN Holdings. These costs included all internal and external costs directly related to the transaction, consisting primarily of legal, consulting, accounting and advisory fees and certain incentive bonuses. They are presented within other selling, general and administrative expenses in our condensed consolidated statements of income and comprehensive income. See Note 2 to the condensed consolidated financial statements for additional information.

Depreciation and Amortization

Depreciation and amortization largely consists of depreciation of computer equipment and amortization of software that supports our technology platform. In addition, it includes amortization of intangible assets primarily related to our agent relationships, trade namenames and developed technology.

Non-Operating Expenses
Interest Expense

Interest expense consists primarily of interest associated with our debt, which consists of a term loan facility and a revolving credit facility. The effective interest rates for the ninesix months ended SeptemberJune 30, 20222023 for the term loan facility and revolving credit facility, were 4.18%8.03% and 0.80%1.85%, respectively.

Income tax provision

Our income tax provision includes the expected benefit of all deferred tax assets, including our net operating loss carryforwards. Our income tax provision reflects the effects of state taxes, non-deductible expenses, share-based compensation expense, and foreign tax rates applicable to the Company’s foreign subsidiaries that are higher or lower than the U.S. statutory rate.

Net Income
Net income is determined by subtracting operating and non-operating expenses from revenues.

Earnings per Share
Basic earnings per share is calculated by dividing net income by the weighted-average number of common shares outstanding for each period. Diluted earnings per share is calculated by dividing net income by the weighted-average number of common shares and common share equivalents outstanding for each period. Diluted earnings per share reflects the potential dilution that could occur if outstanding stock options at the presented dates are exercised and shares of RSUs, RSAs and PSUs have vested, using the treasury stock method. Shares of treasury stock are not considered outstanding and therefore are excluded from the weighted-average number of common shares outstanding calculation.

Segments
Our business is organized around one reportable segment that provides money transmittal services primarily between the United States and Canada to Mexico, Guatemala and other countries in Latin America, Africa, Asia and AsiaEurope through a network of authorized agents located in various unaffiliated retail establishments and 37124 Company-operated stores throughout the United States, Canada, Spain, Italy and Canada.Germany. This is based on the objectives of the business and how our chief operating decision maker, the CEO and President, monitors operating performance and allocates resources.

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Results of Operations
The following table summarizes key components of our results of operations for the periods indicated:

Three Months Ended September 30,Nine Months Ended September 30,Three Months Ended June 30,Six Months Ended June 30,
(in thousands, except for share data)(in thousands, except for share data)2022202120222021(in thousands, except for share data)2023202220232022
Revenues:Revenues:Revenues:
Wire transfer and money order fees, netWire transfer and money order fees, net$120,718 $104,191 $336,340 $284,409 Wire transfer and money order fees, net$144,518 $117,622 $268,968 $215,621 
Foreign exchange gain, netForeign exchange gain, net18,851 15,643 52,719 45,347 Foreign exchange gain, net22,382 18,195 41,550 33,868 
Other incomeOther income1,198 873 3,309 2,275 Other income2,250 1,118 3,996 2,111 
Total revenuesTotal revenues140,767 120,707 392,368 332,031 Total revenues169,150 136,935 314,514 251,600 
Operating expenses:Operating expenses:Operating expenses:
Service charges from agents and banksService charges from agents and banks93,658 81,416 262,717 222,654 Service charges from agents and banks110,996 92,066 207,113 169,060 
Salaries and benefitsSalaries and benefits13,853 10,859 36,911 30,909 Salaries and benefits17,640 11,748 33,808 23,058 
Other selling, general and administrative expensesOther selling, general and administrative expenses10,232 9,966 24,964 22,549 Other selling, general and administrative expenses12,637 7,663 23,974 14,730 
Depreciation and amortizationDepreciation and amortization2,278 2,362 6,712 7,041 Depreciation and amortization3,135 2,251 6,038 4,434 
Total operating expensesTotal operating expenses120,021 104,603 331,304 283,153 Total operating expenses144,408 113,728 270,933 211,282 
Operating incomeOperating income20,746 16,104 61,064 48,878 Operating income24,742 23,207 43,581 40,318 
Interest expenseInterest expense1,466 968 3,530 3,562 Interest expense2,651 1,112 4,842 2,064 
Income before income taxesIncome before income taxes19,280 15,136 57,534 45,316 Income before income taxes22,091 22,095 38,739 38,254 
Income tax provisionIncome tax provision2,654 3,629 13,270 11,605 Income tax provision6,669 6,111 11,555 10,616 
Net incomeNet income$16,626 $11,507 $44,264 $33,711 Net income$15,422 $15,984 $27,184 $27,638 
Earnings per common share:Earnings per common share:Earnings per common share:
BasicBasic$0.44 $0.30 $1.16 $0.88 Basic$0.43 $0.42 $0.75 $0.72 
DilutedDiluted$0.43 $0.29 $1.14 $0.86 Diluted$0.42 $0.41 $0.73 $0.71 

Three Months Ended SeptemberJune 30, 20222023 Compared to Three Months Ended SeptemberJune 30, 20212022
Revenues
Revenues for the above periods are presented below:

($ in thousands)($ in thousands)Three Months Ended September 30, 2022% of
Revenues
Three Months Ended September 30, 2021% of
Revenues
($ in thousands)Three Months Ended June 30, 2023% of
Revenues
Three Months Ended June 30, 2022% of
Revenues
Revenues:Revenues:Revenues:
Wire transfer and money order fees, netWire transfer and money order fees, net$120,718 86 %$104,191 86 %Wire transfer and money order fees, net$144,518 86 %$117,622 86 %
Foreign exchange gain, netForeign exchange gain, net18,851 13 %15,643 13 %Foreign exchange gain, net22,382 13 %18,195 13 %
Other incomeOther income1,198 %873 %Other income2,250 %1,118 %
Total revenuesTotal revenues$140,767 100 %$120,707 100 %Total revenues$169,150 100 %$136,935 100 %

Wire transfer and money order fees, net of $120.7$144.5 million for the three months ended SeptemberJune 30, 20222023 increased by $16.5$26.9 million, or 15.9%22.9%, from $104.2$117.6 million for the three months ended SeptemberJune 30, 2021.2022. The increase was primarily due to a 16.0%26.7% increase in transaction volume in the thirdsecond quarter of 20222023 compared to the thirdsecond quarter of 2021, largely2022, due to the continued growth in our agent network which increased by 8.8% from September 2021 to September 2022.that
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expanded as a result of the La Nacional and LAN Holdings acquisitions, which network increased by 38.3% when compared to June 30, 2022.

Revenues from foreign exchange gain, net of $18.9$22.4 million for the three months ended SeptemberJune 30, 20222023 increased by $3.3$4.2 million, or 20.5%23.1%, from $15.6$18.2 million for the three months ended SeptemberJune 30, 2021.2022. This increase was primarily due to higher transaction volume achieved by growth in our agent network and a higher average amount sent by consumers to destination countries in which our business is concentrated, as well as increased foreign exchange volatility in the Mexican peso and Guatemalan quetzal during the quarter ended SeptemberJune 30, 2022.2023.

Other income of $2.3 million for the three months ended June 30, 2023 increased by $1.2 million, or 90.4%, from $1.1 million for the three months ended June 30, 2022 primarily due to the impact of the revenue generated from ancillary services provided by La Nacional and LAN Holdings to a particular segment of their consumer bases and commercial customers, an increase in fees related to higher volume of transfers deemed abandoned property, as well as an increase in income related to money transfer transactions paid with debit or credit card.

Operating Expenses
Operating expenses for the above periods are presented below:

($ in thousands)($ in thousands)Three Months Ended September 30, 2022% of
Revenues
Three Months Ended September 30, 2021% of
Revenues
($ in thousands)Three Months Ended June 30, 2023% of
Revenues
Three Months Ended June 30, 2022% of
Revenues
Operating expenses:Operating expenses:Operating expenses:
Service charges from agents and banksService charges from agents and banks$93,658 67 %$81,416 67 %Service charges from agents and banks$110,996 66 %$92,066 67 %
Salaries and benefitsSalaries and benefits13,853 10 %10,859 %Salaries and benefits17,640 10 %11,748 %
Other selling, general and administrative expensesOther selling, general and administrative expenses10,232 %9,966 %Other selling, general and administrative expenses12,637 %7,663 %
Depreciation and amortizationDepreciation and amortization2,278 %2,362 %Depreciation and amortization3,135 %2,251 %
Total operating expensesTotal operating expenses$120,021 86 %$104,603 87 %Total operating expenses$144,408 85 %$113,728 84 %

Service charges from agents and banks — Service charges from agents and banks were $93.7$111.0 million for the three months ended SeptemberJune 30, 20222023 compared to $81.4$92.1 million for the three months ended SeptemberJune 30, 2021.2022. The increase of $12.3$18.9 million, or 15.0%20.5%, was primarily due to the increase in transaction volume described above.

Salaries and benefits — Salaries and benefits of $13.9$17.6 million for the three months ended SeptemberJune 30, 20222023 increased by $3.0$5.9 million, or 27.6%50.4%, from $10.9$11.7 million for the three months ended SeptemberJune 30, 2021.2022. The increase is primarily due to $1.4$5.4 million spent in talent acquisition and retention, as well as increased wages, including the additional compensation related to La Nacional and bonuses to recognize performanceLAN Holdings employees, which represents approximately 24.7% of salaries and to support the continued growth of our business,benefits, and a $1.5$0.6 million increase in share-based compensation as a result of new awards granted induring the six months ended June 30, 2023. Salaries and benefits for the three months ended SeptemberJune 30, 2023 represent 10% of total Revenues compared to 9% for the three months ended June 30, 2022, which increase is attributable to our expanded workforce as a result of the La Nacional and updated probabilityLAN Holdings acquisitions as they operate independently in the execution of vesting of performance stock units, and a $0.1 million increase in commission expense for our sales representatives.certain operational functions.

Other selling, general and administrative expenses — Other selling, general and administrative expenses of $10.2$12.6 million for the three months ended SeptemberJune 30, 20222023 increased by $0.2$4.9 million, or 2.7%63.6%, from $10.0$7.7 million for the three months ended SeptemberJune 30, 2021.2022.

The increase was primarily the result of:

$0.61.9 million - higher facilities and rent expenses for scheduled maintenance and contracted lease rate increases to support our business growth and expenses related to the company-operated stores and other facilities added as a result of the La Nacional and LAN Holdings acquisitions;
$1.4 million - higher other operating expenses as a result of the receipt of a $0.8 million refund of state business and occupancy (“B&O”) tax for the state of Washington during the three months ended June 30, 2022, which was offset by higher operational losses and litigation settlements incurred in the three months ended June 30, 2023;
$0.9 million - higher IT related expenses incurred to sustain our business expansion and to improve our technology environment;
$0.5 million - higher audit related and professional fees to support our internal audit and compliance functions;
$0.50.1 million - higher travel costs, primarily of our sales force, to support our business growth and expansion;
$0.3 million - higher facilities and rent expenses for scheduled maintenance and contracted lease rate increases to support our business growth; and
$0.30.1 million - higher IT related expenses incurred to sustain our business expansion and to improve our technology environment.

These increases were partially offset by:

$0.9 million - lower loss on disposal of assets asprimarily due to replacement of equipment used by our sending agents during the three months ended SeptemberJune 30, 2021 included a $1.0 million impairment charge that did not reoccur in the three months ended September 30, 2022;
$0.4 million - related to a decrease in the valuation allowance on deposits frozen at certain closed financial institutions in Mexico. The provisions amounted to $1.6 million and $2.0 million in September 2022 and 2021, respectively; and
$0.2 million - in lower advertising and promotion expenses, primarily as a result of higher co-branding investment by some of our paying agents in the third quarter of 2022.2023.

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Depreciation and amortization — Depreciation and amortization of $3.1 million for the three months ended June 30, 2023 increased by $0.8 million from $2.3 million for the three months ended SeptemberJune 30, 2022 decreased by $0.1 million from $2.4 million for the three months ended September 30, 2021.2022. The varianceincrease is the result of a $0.3 million increase in depreciation associated with additional computer equipment acquired to support our growing business and sending agent network, as well as approximately $0.3 million of depreciation for assets assumed in the La Nacional and LAN Holdings acquisitions and approximately $0.5 million for amortization of intangibles resulting from the La Nacional and LAN Holdings acquisitions. These increases were partially offset by a decrease of approximately $0.3 million in amortization related to our Intermex trade name, developed technology and agent relationships during the thirdsecond quarter of 2022,2023, as these intangibles are being amortized on an accelerated basis, which declines over time, which was partially offset by an increase of $0.2 million in depreciation associated primarily with additional computer equipment acquired to support our growing business and sending agent network.time.

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Non-Operating Expenses
Interest expense — Interest expense of $1.5$2.7 million for the three months ended SeptemberJune 30, 20222023 increased by $0.5$1.6 million, or 51.5%145.5%, from $1.0$1.1 million for the three months ended SeptemberJune 30, 2021.2022. The increase was primarily due to higher market interest rates and higher drawingsdraws under our revolving credit facility.facility to support the growth in our business.

Income tax provision — Income tax provision was $2.7$6.7 million for the three months ended SeptemberJune 30, 2022,2023, which represents a decreasean increase of $0.9$0.6 million from an income tax provision of $3.6$6.1 million for the three months ended SeptemberJune 30, 2021.2022. The decreaseincrease in the income tax provision was mainly attributable to aan increase in our effective state tax windfall from deductible stock-compensationrate primarily as a result of stock option exercises, partially offset byrevenue from La Nacional earned during the three months ended June 30, 2023, which is sourced to states with relatively higher taxable income resulting from higher revenues from our growth.tax rates.

Net Income
We reported Net Income of $16.6$15.4 million for the three months ended SeptemberJune 30, 20222023 compared to Net Income of $11.5$16.0 million for the three months ended SeptemberJune 30, 2021,2022, which resulted in an increasea decrease of $5.1$0.6 million, or 44.5%3.5%, due to the same factors discussed above.

Non-GAAP Financial Measures
We use Adjusted Net Income, Adjusted Earnings per Share and Adjusted EBITDA to evaluate our performance, both internally and as compared with our peers, because these measures exclude certain items that may not be indicative of our core operating results, as well as items that can vary widely among companies within our industry. For example, non-cash share-basednoncash compensation costs can be subject to volatility from changes in the market price per share of our common stock or variations in the value and number of shares granted, and amortization of intangible assets is subject to business acquisition activities, which varyvaries from period to period.

We present these non-GAAP financial measures because we believe they are frequently used by analysts, investors and other interested parties to evaluate companies in our industry. Furthermore, we believe they are helpful in highlighting trends in our operating results by focusing on our core operating results and are useful to evaluate our performance in conjunction with our GAAP financial measures. Adjusted Net Income, Adjusted Earnings per Share and Adjusted EBITDA are non-GAAP financial measures and should not be considered as an alternative to operating income, net income or earnings per share as a measure of operating performance or cash flows or as a measure of liquidity. Non-GAAP financial measures are not necessarily calculated the same way by different companies and should not be considered a substitute for or superior to GAAP measures.

Adjusted EBITDA is one of the primary metrics used by management to evaluate the financial performance of our business because it excludes, among other things, the effects of certain transactions that are outside the control of management, while other measures can differ significantly depending on long-term strategic decisions regarding capital structure, the jurisdictions in which we operate and capital investments.

In particular, Adjusted EBITDA is subject to certain limitations, including the following:

Adjusted EBITDA does not reflect interest expense, or the amounts necessary to service interest or principal payments on our debt;

Adjusted EBITDA does not reflect income tax provision (benefit), and because the payment of taxes is part of our operations, tax provision is a necessary element of our costs and ability to operate;

Although depreciation and amortization are eliminated in the calculation of Adjusted EBITDA, the assets being depreciated and amortized will often have to be replaced in the future, and Adjusted EBITDA does not reflect any costs of such replacements;

Adjusted EBITDA does not reflect the non-cash component of share-based compensation;

Adjusted EBITDA does not reflect the impact of earnings or charges resulting from matters we consider not to be reflective, on a recurring basis, of our ongoing operations; and

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other companies in our industry may calculate Adjusted EBITDA or similarly titled measures differently than we do, limiting its usefulness as a comparative measure.

We adjust for these limitations by relying primarily on our GAAP results and using Adjusted EBITDA, as well as our other non-GAAP financial measures, only as supplemental information.

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Adjusted Net Income and Adjusted Earnings per Share

Adjusted Net Income is defined as net income adjusted to add back certain charges and expenses, such as non-cash amortization of intangible assets resulting from business acquisition transactions, which will recur in future periods until these assets have been fully amortized, non-cash share-based compensation costs litigation settlements and other items set forth in the table below, as these charges and expenses are not considered a part of our core business operations and are not an indicator of ongoing, future company performance.

Adjusted Earnings per Share - Basic and Diluted is calculated by dividing Adjusted Net Income by GAAP weighted-average common shares outstanding (basic and diluted).

Adjusted Net Income for the three months ended SeptemberJune 30, 20222023 was $20.7$18.4 million, representing ana slight increase of $5.0$0.1 million or 32.3%, from Adjusted Net Income of $15.7$18.3 million for the three months ended SeptemberJune 30, 2021.2022. The increase in Adjusted Net Income was primarily due to the increasedecrease in Net Income discussed above.above offset by the higher net effect of the adjusting items detailed in the table below.

The following table presents the reconciliation of Net Income, our closest GAAP measure, to Adjusted Net Income:

Three Months Ended September 30,Three Months Ended June 30,
(in thousands, except for per share data)(in thousands, except for per share data)20222021(in thousands, except for per share data)20232022
Net IncomeNet Income$16,626 $11,507 Net Income$15,422 $15,984 
Adjusted for:Adjusted for:Adjusted for:
Share-based compensation (a)Share-based compensation (a)2,625 1,112 Share-based compensation (a)2,245 1,665 
Loss on bank closure (b)1,583 2,000 
Transaction costs (c)258 — 
Other charges and expenses (d)301 1,300 
Amortization of intangibles (e)972 1,264 
Income tax benefit related to adjustments (f)(1,632)(1,514)
Transaction costs (b)Transaction costs (b)275 216 
Other charges and expenses (c)Other charges and expenses (c)492 317 
Amortization of intangibles (d)Amortization of intangibles (d)1,209 972 
Income tax benefit related to adjustments (e)Income tax benefit related to adjustments (e)(1,274)(899)
Adjusted Net IncomeAdjusted Net Income$20,733 $15,669 Adjusted Net Income$18,369 $18,255 
Adjusted Earnings per ShareAdjusted Earnings per ShareAdjusted Earnings per Share
BasicBasic$0.55 $0.41 Basic$0.51 $0.48 
DilutedDiluted$0.54 $0.40 Diluted$0.50 $0.47 
Weighted-average common shares outstandingWeighted-average common shares outstandingWeighted-average common shares outstanding
BasicBasic37,390,632 38,647,931 Basic36,001,670 38,257,156 
DilutedDiluted38,425,868 39,336,051 Diluted36,871,674 39,228,991 

(a)Represents share-based compensation relating to equity awards granted to employees and independent directors of the Company.
(b)Represents losses related to the closure of aprimarily financial institution in Mexico during 2021.
(c)Represents primarilyadvisory, professional and legal fees related to business acquisition transactions.
(d)(c)Represents primarily loss on disposal of fixed assets, including a write-off of software development expenditures in an amount of $1.0 million during the three months ended September 30, 2021 (none in 2022) and foreign currency (gains) losses.assets.
(e)(d)Represents the amortization of intangible assets that resulted from business acquisition transactions.
(f)(e)Represents the current and deferred tax impact of the taxable adjustments to Net Income using the Company’s blended federal and state tax rate for each period. Relevant tax-deductible adjustments include all adjustments to Net Income.

Adjusted Earnings per Share - Basic for the three months ended SeptemberJune 30, 20222023 was $0.55,$0.51, representing an increase of $0.14,$0.03, or 34.1%6.3%, compared to $0.41$0.48 for the three months ended SeptemberJune 30, 2021.2022. The increase in Adjusted Earnings per Share - Basic was primarily due to the higher net effect of the adjusting items detailed in the table above combined with a lower weighted average common shares total for the period due to stock repurchases.

Adjusted Earnings per Share - Diluted for the three months ended SeptemberJune 30, 20222023 was $0.54,$0.50, representing an increase of $0.14,$0.03, or 35.0%6.4%, compared to $0.40$0.47 for the three months ended SeptemberJune 30, 2021.2022. The increase in Adjusted Earnings per Share - Diluted was primarily due to
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the higher net effect of the adjusting items detailed in the table above combined with a lower weighted average common shares total for the period due to stock repurchases.

The following table presents the reconciliation of GAAP Earnings per Share, our closest GAAP measure, to Adjusted Earnings per Share:

Three Months Ended September 30,Three Months Ended June 30,
2022202120232022
BasicDilutedBasicDilutedBasicDilutedBasicDiluted
GAAP Earnings per ShareGAAP Earnings per Share$0.44 $0.43 $0.30 $0.29 GAAP Earnings per Share$0.43 $0.42 $0.42 $0.41 
Adjusted for:Adjusted for:Adjusted for:
Share-based compensationShare-based compensation0.07 0.07 0.03 0.03 Share-based compensation0.06 0.06 0.04 0.04 
Loss on bank closure0.04 0.04 0.05 0.05 
Transaction costsTransaction costs0.01 0.01 — — Transaction costs0.01 0.01 0.01 0.01 
Other charges and expensesOther charges and expenses0.01 0.01 0.03 0.03 Other charges and expenses0.01 0.01 0.01 0.01 
Amortization of intangiblesAmortization of intangibles0.03 0.03 0.03 0.03 Amortization of intangibles0.03 0.03 0.03 0.02 
Income tax benefit related to adjustmentsIncome tax benefit related to adjustments(0.04)(0.04)(0.04)(0.04)Income tax benefit related to adjustments(0.04)(0.03)(0.02)(0.02)
Adjusted Earnings per ShareAdjusted Earnings per Share$0.55 $0.54 $0.41 $0.40 Adjusted Earnings per Share$0.51 $0.50 $0.48 $0.47 

The table above may contain slight summation differences due to rounding.

Adjusted EBITDA

Adjusted EBITDA is defined as net income before depreciation and amortization, interest expense, income taxes, and also adjusted to add back certain charges and expenses, such as non-cash share-based compensation costs and other items set forth in the table below, as these charges and expenses are not considered a part of our core business operations and are not an indicator of ongoing, future company performance.

Adjusted EBITDA for the three months ended SeptemberJune 30, 20222023 was $27.8$30.9 million, representing an increase of $4.9$3.2 million, or 21.5%11.7%, from $22.9$27.7 million for the three months ended SeptemberJune 30, 2021.2022. The increase in Adjusted EBITDA was primarily due to the increasedecrease in Net Income discussed above andoffset by the higher net effect of the adjusting items detailed in the table below.

The following table presents the reconciliation of Net Income, our closest GAAP measure, to Adjusted EBITDA:

Three Months Ended September 30,Three Months Ended June 30,
(in thousands)(in thousands)20222021(in thousands)20232022
Net IncomeNet Income$16,626 $11,507 Net Income$15,422 $15,984 
Adjusted for:Adjusted for:Adjusted for:
Interest expenseInterest expense1,466 968 Interest expense2,651 1,112 
Income tax provisionIncome tax provision2,654 3,629 Income tax provision6,669 6,111 
Depreciation and amortizationDepreciation and amortization2,278 2,362 Depreciation and amortization3,135 2,251 
EBITDAEBITDA23,024 18,466 EBITDA27,877 25,458 
Share-based compensation (a)Share-based compensation (a)2,625 1,112 Share-based compensation (a)2,245 1,665 
Loss on bank closure (b)1,583 2,000 
Transaction costs (c)258 — 
Other charges and expenses (d)301 1,300 
Transaction costs (b)Transaction costs (b)275 216 
Other charges and expenses (c)Other charges and expenses (c)492 317 
Adjusted EBITDAAdjusted EBITDA$27,791 $22,878 Adjusted EBITDA$30,889 $27,656 

(a)Represents share-based compensation relating to equity awards granted to employees and independent directors of the Company.
(b)Represents losses related to the closure of aprimarily financial institution in Mexico during 2021.
(c)Represents primarilyadvisory, professional and legal fees related to business acquisition transactions.
(d)(c)Represents primarily loss on disposal of fixed assets, including a write-off of software development expenditures in an amount of $1.0 million during the three months ended September 30, 2021 (none in 2022) and foreign currency (gains) losses.assets.


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NineSix Months Ended SeptemberJune 30, 20222023 Compared to NineSix Months Ended SeptemberJune 30, 20212022
Revenues
Revenues for the above periods are presented below:

($ in thousands)($ in thousands)Nine Months Ended September 30, 2022% of
Revenues
Nine Months Ended September 30, 2021% of
Revenues
($ in thousands)Six Months Ended June 30, 2023% of
Revenues
Six Months Ended June 30, 2022% of
Revenues
Revenues:Revenues:Revenues:
Wire transfer and money order fees, netWire transfer and money order fees, net$336,340 86 %$284,409 86 %Wire transfer and money order fees, net$268,968 86 %$215,621 86 %
Foreign exchange gain, netForeign exchange gain, net52,719 13 %45,347 13 %Foreign exchange gain, net41,550 13 %33,868 13 %
Other incomeOther income3,309 %2,275 %Other income3,996 %2,111 %
Total revenuesTotal revenues$392,368 100 %$332,031 100 %Total revenues$314,514 100 %$251,600 100 %

Wire transfer and money order fees, net of $336.3$269.0 million for the ninesix months ended SeptemberJune 30, 20222023 increased by $51.9$53.4 million, or 18.3%24.7%, from $284.4$215.6 million for the ninesix months ended SeptemberJune 30, 2021.2022. The increase was primarily due to a 17.8%27.6% increase in transaction volume in the ninesix months ended SeptemberJune 30, 20222023 compared to the ninesix months ended SeptemberJune 30, 2021,2022, largely due to the continued growth in our agent network that expanded as a result of the La Nacional and LAN Holdings acquisitions, which network increased by 8.8% from September 202138.3% when compared to SeptemberJune 30, 2022.

Revenues from foreign exchange gain, net of $52.7$41.6 million for the ninesix months ended SeptemberJune 30, 20222023 increased by $7.4$7.7 million, or 16.3%22.7%, from $45.3$33.9 million for the ninesix months ended SeptemberJune 30, 2021.2022. This increase was primarily due to higher transaction volume achieved by growth in our agent network and a higher average amount sent by consumers, as well as increased foreign exchange volatility in the Mexican peso and Guatemalan quetzal during the ninesix months ended SeptemberJune 30, 2022.2023.

Other income of $4.0 million for the three months ended June 30, 2023 increased by $1.9 million, or 90.5%, from $2.1 million for the three months ended June 30, 2022 primarily due to the impact of the revenue generated from other ancillary services provided by La Nacional and LAN Holdings to a particular segment of their consumer bases and commercial customers, an increase in fees related to higher volume of transfers deemed abandoned property, as well as an increase in income related to money transfer transactions paid with debit or credit card.

Operating Expenses
Operating expenses for the above periods are presented below:

($ in thousands)($ in thousands)Nine Months Ended September 30, 2022% of
Revenues
Nine Months Ended September 30, 2021% of
Revenues
($ in thousands)Six Months Ended June 30, 2023% of
Revenues
Six Months Ended June 30, 2022% of
Revenues
Operating expenses:Operating expenses:Operating expenses:
Service charges from agents and banksService charges from agents and banks$262,717 67 %$222,654 67 %Service charges from agents and banks$207,113 66 %$169,060 67 %
Salaries and benefitsSalaries and benefits36,911 %30,909 %Salaries and benefits33,808 11 %23,058 %
Other selling, general and administrative expensesOther selling, general and administrative expenses24,964 %22,549 %Other selling, general and administrative expenses23,974 %14,730 %
Depreciation and amortizationDepreciation and amortization6,712 %7,041��%Depreciation and amortization6,038 %4,434 %
Total operating expensesTotal operating expenses$331,304 84 %$283,153 85 %Total operating expenses$270,933 86 %$211,282 84 %

Service charges from agents and banks — Service charges from agents and banks were $262.7$207.1 million for the ninesix months ended SeptemberJune 30, 20222023 compared to $222.7$169.1 million for the ninesix months ended SeptemberJune 30, 2021.2022. The increase of $40.0$38.0 million, or 18.0%22.5%, was primarily due to the increase in transaction volume described above.

Salaries and benefits — Salaries and benefits of $36.9$33.8 million for the ninesix months ended SeptemberJune 30, 20222023 increased by $6.0$10.7 million, or 19.4%46.3%, from $30.9$23.1 million for the ninesix months ended SeptemberJune 30, 2021.2022. The increase is primarily due to $4.1$9.2 million spent in talent acquisition and retention, as well as increased wages, including the additional compensation related to La Nacional and bonuses to recognize performanceLAN Holdings employees, which represents approximately 22.2% of salaries and to support the continued growth of our businessbenefits, and a $2.2$1.0 million increase in share-based compensation as a result of new awards granted throughout 2023. Salaries and benefits for the six months ended June 30, 2023 represent 11% of total Revenues compared to 9% for the six months ended June 30, 2022, which increase is attributable to our expanded workforce as a result of the La Nacional and updated probabilityLAN Holdings acquisitions as they operate independently in the execution of vesting of performance stock units, offset by a $0.3 million decrease in commission expense for our sales representatives.certain operational functions.

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Other selling, general and administrative expenses — Other selling, general and administrative expenses of $25.0$24.0 million for the ninesix months ended SeptemberJune 30, 20222023 increased by $2.5$9.3 million, or 10.7%63.3%, from $22.5$14.7 million for the ninesix months ended SeptemberJune 30, 2021.2022.

The increase was primarily the result of:

$1.34.0 million - higher facilities and rent expenses for scheduled maintenance and contracted lease rate increases to support our business growth and expenses related to the company-operated stores and other facilities added as a result of the La Nacional and LAN Holdings acquisitions;
$1.2 million - higher other operating expenses resulting from the receipt during the six months ended June 30, 2022 of a $0.8 million refund of state business and occupancy (“B&O”) tax for the state of Washington, which was offset by higher operational losses and litigation settlements incurred in the six months ended June 30, 2023;
$1.5 million - higher IT related expenses incurred to sustain our business expansion and to improve our technology environment;
$1.00.7 million - higher audit related and professional fees to support our internal audit and compliance functions;
$0.4 million - increase in provision for credit losses due to higher net write-offs of accounts receivable during the ninesix months ended SeptemberJune 30, 20222023 compared to the same period in 2021,2022, primarily as a result of sending agents that were not able to pay in accordance with the original terms and are, accordingly, subject to our normal collection procedures;
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$0.4 million - higher loss on disposal of assets primarily due to replacement of equipment used by our agent network and write-off of equipment assigned to sending agents closed during the six months ended June 30, 2023;
$0.90.4 million - higher travel costs, primarily of our sales force, to support or business growth and expansion; and
$0.7 million - higher audit related and professional fees to support our internal audit and compliance functions;
$0.6 million - higher facilities and rent expenses for scheduled maintenance and contracted lease rate increases to support our business growth;
$0.50.2 million - transaction costs associated with business acquisitions; and
$0.3 million - higher shipping costs due to deployment of equipment for new and existing agents.acquisitions.

These increases were partially offset by:

$0.90.2 million - in lower advertising and promotion expenses, primarily as a result of lower investment in advertising during 2023 and higher co-branding investment by some of our paying agents during 2022;
$0.7 million - lower loss on disposal of assets, as the nine months ended September 30, 2021 included a $1.0 million impairment charge that did not reoccur in the nine months ended September 30, 2022;
$0.8 million - refund of state business and occupancy (“B&O”) tax for the state of Washington; and
$0.4 million - related to an increase in the valuation allowance on deposits frozen at certain closed financial institutions in Mexico. The provisions amounted to $1.6 million and $2.0 million in September 2022 and 2021, respectively.2022.

Depreciation and amortization — Depreciation and amortization of $6.7$6.0 million for the ninesix months ended SeptemberJune 30, 2022 decreased2023 increased by $0.3$1.6 million from $7.0$4.4 million or 36.4% for the ninesix months ended SeptemberJune 30, 2021. This decrease2022. The increase is mainly duethe result of a $0.6 million increase in depreciation associated with additional computer equipment acquired to support our growing business and sending agent network, as well as approximately $0.6 million of depreciation for assets assumed in the La Nacional and LAN Holdings acquisitions and approximately $0.9 million lessfor amortization of intangibles resulting from the La Nacional and LAN Holdings acquisitions. These increases were partially offset by a decrease of approximately $0.5 million in amortization related to our Intermex trade name, developed technology and agent relationships during the ninesix months ended SeptemberJune 30, 2022,2023, as these intangibles are being amortized on an accelerated basis, which declines over time. This decrease was partially offset by an increase in depreciation associated primarily with additional computer equipment acquired to support our growing business and sending agent network.

Non-Operating Expenses
Interest expense — Interest expense of $3.5$4.8 million for the ninesix months ended SeptemberJune 30, 2022 remained2023 increased by $2.7 million, or 128.6%, from $2.1 million for the same as the ninesix months ended SeptemberJune 30, 2021 as the savings2022. The increase was primarily due to a lower benchmark rate negotiated in 2021 were offset by higher market interest rates prevailing in 2022.paid under our Amended and Restated Credit Agreement, as well as higher and more frequent draws under our revolving credit facility during the six months ended June 30, 2023.

Income tax provision — Income tax provision was $13.3$11.6 million for the ninesix months ended SeptemberJune 30, 2022,2023, which represents an increase of $1.7$1.0 million from an income tax provision of $11.6$10.6 million for the ninesix months ended SeptemberJune 30, 2021.2022. The increase in the income tax provision was mainly attributable to higher taxable income resulting from higher revenues froman increase in our growth offset by aeffective state tax windfall from deductible stock-compensationrate primarily as a result of stock option exercises.revenue from La Nacional earned during the six months ended June 30, 2023, which is sourced to states with relatively higher tax rates.

Net Income
We reported Net Income of $44.3$27.2 million for the ninesix months ended SeptemberJune 30, 20222023 compared to Net Income of $33.7$27.6 million for the ninesix months ended SeptemberJune 30, 2021,2022, which resulted in an increasea decrease of $10.6$0.4 million, or 31.3%1.5%, due to the same factors discussed above. 

Non-GAAP Financial Measures

Adjusted Net Income and Adjusted Earnings per Share
Adjusted Net Income (previously defined and used as described above) for the ninesix months ended SeptemberJune 30, 20222023 was $52.4$32.6 million, representing an increase of $10.8$1.0 million, or 25.9%3.2%, from Adjusted Net Income of $41.6$31.6 million for the ninesix months ended SeptemberJune 30, 2021.2022. The increase in Adjusted Net Income was primarily due to the increasehigher net effect of the adjusting items detailed in the table below offset by a decrease in Net Income discussed above.

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The following table presents the reconciliation of Net Income, our closest GAAP measure, to Adjusted Net Income:

Nine Months Ended September 30,Six Months Ended June 30,
(in thousands, except for per share data)(in thousands, except for per share data)20222021(in thousands, except for per share data)20232022
Net IncomeNet Income$44,264 $33,711 Net Income$27,184 $27,638 
Adjusted for:Adjusted for:Adjusted for:
Share-based compensation (a)Share-based compensation (a)5,558 3,382 Share-based compensation (a)3,943 2,933 
Loss on bank closure (b)1,583 2,000 
Transaction costs (c)474 — 
Other charges and expenses (d)759 1,593 
Amortization of intangibles (e)2,916 3,789 
Income tax benefit related to adjustments (f)(3,200)(2,896)
Transaction costs (b)Transaction costs (b)399 216 
Other charges and expenses (c)Other charges and expenses (c)1,021 458 
Amortization of intangibles (d)Amortization of intangibles (d)2,334 1,944 
Income tax benefit related to adjustments (e)Income tax benefit related to adjustments (e)(2,296)(1,566)
Adjusted Net IncomeAdjusted Net Income$52,354 $41,579 Adjusted Net Income$32,585 $31,623 
Adjusted Earnings per ShareAdjusted Earnings per ShareAdjusted Earnings per Share
BasicBasic$1.38 $1.08 Basic$0.90 $0.83 
DilutedDiluted$1.35 $1.06 Diluted$0.88 $0.81 
Weighted-average common shares outstandingWeighted-average common shares outstandingWeighted-average common shares outstanding
BasicBasic37,999,709 38,441,767 Basic36,239,997 38,309,295 
DilutedDiluted38,907,283 39,071,622 Diluted37,115,490 39,153,039 

(a)Represents share-based compensation relating to equity awards granted to employees and independent directors of the Company.
(b)Represents losses related to the closure of aprimarily financial institution in Mexico during 2021.
(c)Represents primarilyadvisory, professional and legal fees related to business acquisition transactions.
(d)(c)Represents primarily loss on disposal of fixed assets, including a write-off of software development expenditures in an amount of $1.0 million during the nine months ended September 30, 2021 (none in 2022) and foreign currency (gains) losses.assets.
(e)(d)Represents the amortization of intangible assets that resulted from business acquisition transactions.
(f)(e)Represents the current and deferred tax impact of the taxable adjustments to Net Income using the Company’s blended federal and state tax rate for each period. Relevant tax-deductible adjustments include all adjustments to Net Income.

Adjusted Earnings per Share - Basic for the ninesix months ended SeptemberJune 30, 20222023 was $1.38,$0.90, representing an increase of $0.30,$0.07, or 27.8%8.4%, compared to $1.08$0.83 for the ninesix months ended SeptemberJune 30, 2021.2022. The increase in Adjusted Earnings per Share - Basic was primarily due to the higher net effect of the adjusting items detailed in the table above combined with a lower weighted average common shares total for the period due to stock repurchases.

Adjusted Earnings per Share - Diluted for the ninesix months ended SeptemberJune 30, 20222023 was $1.35,$0.88, representing an increase of $0.29,$0.07, or 27.4%8.6%, compared to $1.06$0.81 for the ninesix months ended SeptemberJune 30, 2021.2022. The increase in Adjusted Earnings per Share - Diluted was primarily due to the higher net effect of the adjusting items detailed in the table above combined with a lower weighted average common shares total for the period due to stock repurchases.

The following table presents the reconciliation of GAAP Earnings per Share, our closest GAAP measure, to Adjusted Earnings per Share:

Nine Months Ended September 30,Six Months Ended June 30,
2022202120232022
BasicDilutedBasicDilutedBasicDilutedBasicDiluted
GAAP Earnings per ShareGAAP Earnings per Share$1.16 $1.14 $0.88 $0.86 GAAP Earnings per Share$0.75 $0.73 $0.72 $0.71 
Adjusted for:Adjusted for:Adjusted for:
Share-based compensationShare-based compensation0.15 0.14 0.09 0.09 Share-based compensation0.11 0.11 0.08 0.07 
Loss on bank closure0.04 0.04 0.05 0.05 
Transaction costsTransaction costs0.01 0.01 — — Transaction costs0.01 0.01 0.01 0.01 
Other charges and expensesOther charges and expenses0.02 0.02 0.04 0.04 Other charges and expenses0.03 0.03 0.01 0.01 
Amortization of intangiblesAmortization of intangibles0.08 0.07 0.10 0.10 Amortization of intangibles0.06 0.06 0.05 0.05 
Income tax benefit related to adjustmentsIncome tax benefit related to adjustments(0.08)(0.08)(0.08)(0.07)Income tax benefit related to adjustments(0.06)(0.06)(0.04)(0.04)
Adjusted Earnings per ShareAdjusted Earnings per Share$1.38 $1.35 $1.08 $1.06 Adjusted Earnings per Share$0.90 $0.88 $0.83 $0.81 


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The table above may contain slight summation differences due to rounding.

Adjusted EBITDA

Adjusted EBITDA (previously defined and used as described above) for the ninesix months ended SeptemberJune 30, 20222023 was $76.2$55.0 million, representing an increase of $13.3$6.6 million, or 21.1%13.6%, from $62.9$48.4 million for the ninesix months ended SeptemberJune 30, 2021.2022. The increase in Adjusted EBITDA was primarily due to the increase in Net Income discussed above and the higher net effect of the adjusting items detailed in the table below.below offset by the decrease in Net Income discussed above.

The following table presents the reconciliation of Net Income, our closest GAAP measure, to Adjusted EBITDA:

Nine Months Ended September 30,Six Months Ended June 30,
(in thousands)(in thousands)20222021(in thousands)20232022
Net IncomeNet Income$44,264 $33,711 Net Income$27,184 $27,638 
Adjusted for:Adjusted for:Adjusted for:
Interest expenseInterest expense3,530 3,562 Interest expense4,842 2,064 
Income tax provisionIncome tax provision13,270 11,605 Income tax provision11,555 10,616 
Depreciation and amortizationDepreciation and amortization6,712 7,041 Depreciation and amortization6,038 4,434 
EBITDAEBITDA67,776 55,919 EBITDA49,619 44,752 
Share-based compensation (a)Share-based compensation (a)5,558 3,382 Share-based compensation (a)3,943 2,933 
Loss on bank closure (b)1,583 2,000 
Transaction costs (c)474 — 
Other charges and expenses (d)759 1,593 
Transaction costs (b)Transaction costs (b)399 216 
Other charges and expenses (c)Other charges and expenses (c)1,021 458 
Adjusted EBITDAAdjusted EBITDA$76,150 $62,894 Adjusted EBITDA$54,982 $48,359 

(a)Represents share-based compensation relating to equity awards granted to employees and independent directors of the Company.
(b)Represents losses related to the closure of aprimarily financial institution in Mexico during 2021.
(c)Represents primarilyadvisory, professional and legal fees related to business acquisition transactions.
(d)(c)Represents primarily loss on disposal of fixed assets, including a write-off of software development expenditures in an amount of $1.0 million during the nine months ended September 30, 2021 (none in 2022) and foreign currency (gains) losses.assets.


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Liquidity and Capital Resources
We consider liquidity in terms of our cash and cash equivalents position, cash flows from operations and their sufficiency to fund business operations, including working capital needs, debt service, acquisitions, capital expenditures, contractual obligations and other commitments. In particular, to meet our payment service obligations at all times, we must have sufficient highly liquid assets and be able to move funds on a timely basis.

Our principal sources of liquidity are our cash generated by operating activities supplemented with borrowings under our revolving credit facility. Our primary cash needs are for day-to-day operations, to pay interest and principal on our indebtedness, to fund working capital requirements and to make capital expenditures.

We have funded and still expect to continue funding our liquidity requirements through internally generated funds, supplemented in the ordinary course, with borrowings under our revolving credit facility. We maintain a strong cash and cash equivalents balance position and have access to committed funding sources, which we have used only on a limited andan ordinary course basis during the ninesix months ended SeptemberJune 30, 2022.2023. Therefore, we believe that our current cash and cash equivalents position, as well as projected cash flows generated from operations, together with borrowings under our revolving credit facility are sufficient to fund our principal and interest payments, lease expenses, our working capital needs, our business acquisitions and our expected capital expenditures for at least the next twelve months.

Amended and Restated Credit Agreement

On June 24, 2021, the Company and certain of its domestic subsidiaries as borrowers and the other guarantors from time to time party thereto (collectively, the “Loan Parties”) entered intoWe have an Amended and Restated Credit Agreement (the(as amended as described below, the “A&R Credit Agreement”) with a group of banking institutions. The A&R Credit Agreement amended and restated in its entirety the Company’s previous credit agreement. The A&R Credit Agreement providesprovided for a $150.0 million revolving credit facility, an $87.5 million term loan facility and an uncommitted incremental facility, which may be utilized for additional revolving or term loans, of up to $70.0 million. The A&R Credit Agreement also provides for the issuance of letters of credit, which would reduce availability under the revolving credit facility. The proceeds of the term loan were used to refinance the existing term loan under the Company’s previous credit agreement, and the revolving credit facility is available for working capital, general corporate purposes and to pay fees and expenses in connection with this transaction. The maturity date of the A&R Credit Agreement is June 24, 2026.

In November 2022, the A&R Credit Agreement was amended to replace the London Inter-bank Offered Rate (“LIBOR”) as a benchmark interest rate for loans with the secured overnight financing rate as administered by the Federal Reserve Bank of New York (“SOFR”).

Effective as of April 18, 2023, the Company amended the A&R Credit Agreement to increase the revolving credit commitments thereunder by $70.0 million to an aggregate of $220.0 million. The credit commitments are available for general corporate purposes to support the Company’s growth and to fund working capital needs and will be subject to the same interest rate and other terms applicable to the outstanding revolving credit commitments under the A&R Credit Agreement. Refer to Note 10 for additional information. In addition, as amended, the A&R Credit Agreement provides the Company with a refreshed uncommitted incremental facility which may be utilized for new revolving credit facilities or term loans in an aggregate amount of up to $70.0 million.

As of SeptemberJune 30, 2022,2023, we had total indebtedness of $125.0$78.8 million consisting of borrowings under the term loan facility and revolving credit facility, excluding debt origination costs of $1.8$1.5 million. As of SeptemberJune 30, 20222023, there was $43.0were $116.0 million of outstanding amounts drawn on the revolving credit facility (none as of December 31, 2021).facility. There were $177.0$174.0 million of additional borrowings available under these facilities as of SeptemberJune 30, 2022.2023.

At the election of the Company, interest on the term loan facility and revolving credit facilityloans under the A&R Credit Agreement ismay be determined by reference to either LIBOR (subject to replacement) or a “base rate”, in each caseSOFR plus an index adjustment of 0.10% and an applicable margin ranging between 2.50% and 3.00% per annum for LIBOR loans or between 1.50% and 2.00% per annum for base rate loans depending onbased upon the level of ourCompany’s consolidated leverage ratio, as calculated pursuant to the terms of the A&R Credit Agreement. Loans (other than Term Loans, as defined in the A&R Credit Agreement), may also bear interest at the base rate plus an applicable margin ranging between 1.50% and 2.00% based upon the Company’s consolidated leverage ratio, as so calculated. The Company is also required to pay a fee on the unused portion of the revolving credit facility equal to 0.35% per annum. The effective interest rates for the ninesix months ended SeptemberJune 30, 20222023 for the term loan facility and revolving credit facility were 4.18%8.03% and 0.80%1.85%, respectively.
Interest is payable (x)(i) generally on the last day of each interest period selected for LIBORSOFR loans, but in any event, not less frequently than every three months, and (ii) on the last business day of each quarter for base rate loans and (y) at final maturity. The A&R Credit Agreement contains provisions for the replacement of the benchmark for interest rates in light of the cessation of the publication of LIBOR rates.

The principal amount of the term loan facility under the A&R Credit Agreement must be repaid in consecutive quarterly installments of 5.0% in years 1 and 2, 7.5% in year 3, and 10.0% in years 4 and 5, in each case on the last day of each quarter, commencingwhich commenced in September 2021 with a final balloon payment at maturity. The term loans under the A&R Credit Agreement may be prepaid at any time without premium or penalty. Revolving loans may be borrowed, repaid and reborrowed from time to time in accordance with the terms and conditions of the A&R Credit Agreement. The Company is also required to repay the loans upon receipt of net proceeds from certain casualty events, upon the disposition of certain property and upon incurrence of indebtedness not permitted by the A&R Credit Agreement. In addition, the Company is required to make mandatory prepayments annually from excess cash flow if the Company’s consolidated
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leverage ratio (as calculated under the A&R Credit Agreement) is greater than or equal to 3.0, and the remainder of any such excess cash flow is contributed to the available amount which may be used for a variety of purposes, including investments and distributions.

The A&R Credit Agreement contains financial covenants that require the Company to maintain a quarterly minimum fixed charge coverage ratio of 1.25:1.00 and a quarterly maximum consolidated leverage ratio of 3.25:1.00. As of SeptemberJune 30, 2022,2023, we were in compliance with the covenants of the A&R Credit Agreement. The A&R Credit Agreement generally restricts the ability of the Company to make certain restricted payments, including the repurchase of shares of its common stock, provided that the Company may make restricted payments, among others, (i) without limitation so long as the Consolidated Leverage Ratio (as defined in the A&R Credit Agreement), as of the then most recently completed four fiscal quarters of the Company, after giving pro forma effect to such restricted payments, is 2.25:1.00 or less, (ii) that do not exceed, in the aggregate during any fiscal year, the greater of (x) $23.8 million and (y) 25.00% of Consolidated EBITDA (as defined in the A&R Credit Agreement) for the then most recently completed four fiscal quarters of the Company and (iii) to repurchase Company common stock from current or former employees in an aggregate amount of up to $10.0 million per calendar year. The A&R Credit Agreement also contains covenants that limit the Company’s and its subsidiaries’ ability to, among other things, grant liens, incur additional indebtedness, make acquisitions or investments, dispose of certain assets, change the nature of their businesses, enter into certain transactions with affiliates or amend the terms of material indebtedness.
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In addition, the A&R Credit Agreement generally restricts the payment of dividends or cash distributions by the Company with certain exceptions, including the following: i) to repurchase the Company’s common stock from current or former employees in an aggregate amount of up to $10.0 million per calendar year, and ii) other restricted payments in an aggregate amount not to exceed $40.0 million plus the Available Amount (as defined in the A&R Credit Agreement). Through September 30, 2022 and in connection with the Repurchase Program and a private repurchase transaction, as described in Note 12, the Company funded repurchases of shares of the Company’s common stock in an aggregate amount of $40.0 million plus the Available Amount.

The obligations under the A&R Credit Agreement are guaranteed by the Company and certain domestic subsidiaries of the Company and secured by liens on substantially all of the assets of the Loan Parties, subject to certain exclusions and limitations.

Our indebtedness could adversely affect our ability to raise additional capital, limit our ability to react to changes in the economy or our industry, expose us to interest rate risk and prevent us from meeting our obligations. See “Risk Factors—Risks Relating to Our Indebtedness—We have a substantial amount ofThe Company's indebtedness which may limit our operating flexibility and could adversely affect our business, financial condition and results of operations.” included in our Annual Report on Form 10-K for the year ended December 31, 2021.2022.

Repurchase Program

In August 2021, the Company’s Board of Directors approved a stock repurchase program (the “Repurchase Program”) that authorizes the Company to purchase up to $40.0 million of its outstanding shares of the Company’s common stock. On March 3, 2023 the Board of Directors approved an increase to the Repurchase Program that authorizes the Company to purchase an additional $100.0 million of its outstanding shares. Under the Repurchase Program, the Company is authorized to repurchase shares from time to time in accordance with applicable laws, both on the open market and in privately negotiated transactions and may include the use of derivative contracts or structured share repurchase agreements. The timing and amount of repurchases depends on several factors, including market and business conditions, the trading price of the Company’s common stock and the nature of other investment opportunities. The Repurchase Program may be limited, suspended or discontinued at any time without prior notice. The Repurchase Program does not have an expiration date. Under the terms of theThe A&R Credit Agreement, as amended, permits the Company has restrictions that limit the maximum amountto make restricted payments (including share repurchases, among others) under a variety of repurchases to (i) $40.0 milliontests as described in the aggregate (plussecond preceding paragraph, including, without limitation, so long as the Available Amount asConsolidated Leverage Ratio (as defined in the A&R Credit Agreement) and (ii) $10.0 million annually for shares held by any current or former officer, director, employee or consultant (or any spouses, ex-spouses or estatesAgreement, as amended), as of the foregoing)then most recently completed four fiscal quarters of the Company, after giving pro forma effect to such restricted payments, is 2.25:1.00 or its subsidiaries.less.

The Company accounts for purchases of treasury stock under the cost method. Any direct costs incurred to acquire treasury stock are considered stock issue costs and added to the cost of the treasury stock. During the ninesix months ended SeptemberJune 30, 2022,2023, including the shares purchased in the privately-negotiated transaction described below, the Company purchased 2,015,6151,232,581 shares for an aggregate purchase price of $43.7$30.5 million. During the six months ended June 30, 2022, the Company purchased 727,901 shares for an aggregate purchase price of $13.6 million. As of SeptemberJune 30, 2022,2023, there were no amounts remaining amountwas $90.7 million available for future share repurchases under the Repurchase Program. As of September 30, 2022, there were $18.3 million remaining amount available for future share repurchases under the Repurchase Program. The share repurchases under the Repurchase Program and the privately-negotiated transaction totaled $49.3 million through September 30, 2022.

Privately-Negotiated Share Repurchase Transaction

On August 9, 2022,May 5, 2023, the Company entered into an agreement with SPC Intermex, LP, a related party, for the purchase of 1,172,485500,000 shares of the Company’s common stock for a total purchase price of $27.6$12.6 million, or a per share price of $23.50,$25.28, in a privately-negotiated transaction.

Operating Leases

We are party to operating leases for office space, warehouses and Company-operated store locations, which we use as part of our day-to-day operations. Operating lease expenses were $0.6$2.0 million and $1.6$4.1 million for the three and ninesix months ended SeptemberJune 30, 2022,2023, which we expect to be consistent throughout the year. We have not entered into finance lease commitments. For additional information on operating lease obligations, refer to Note 6,7, Leases, to the Condensed Consolidated Financial Statements.

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Cash Flows
The following table summarizes the changes to our cash flows for the periods presented:

Nine Months Ended September 30,
(in thousands)20222021
Statement of Cash Flows Data:
Net cash (used in) provided by operating activities$(9,848)$60,705 
Net cash used in investing activities(9,380)(5,523)
Net cash used in financing activities(7,990)(4,733)
Effect of exchange rate changes on cash(204)(224)
Net (decrease) increase in cash(27,422)50,225 
Cash, beginning of period132,474 74,907 
Cash, end of period$105,052 $125,132 
Six Months Ended June 30,
(in thousands)20232022
Statement of Cash Flows Data:
Net cash provided by operating activities$$4,560 
Net cash used in investing activities(10,028)(6,867)
Net cash provided by (used in) financing activities6,546 (15,612)
Effect of exchange rate changes on cash and cash equivalents1,353 45 
Net decrease in cash and cash equivalents(2,121)(17,874)
Cash and cash equivalents, beginning of period149,493 132,474 
Cash and cash equivalents, end of period$147,372 $114,600 

Operating Activities
Net cash used inprovided by operating activities was $9.8 million$8.0 thousand for the ninesix months ended SeptemberJune 30, 2022,2023, a decrease of $70.5$4.6 million from net cash provided by operating activities of $60.7$4.6 million for the ninesix months ended SeptemberJune 30, 2021.2022. The decrease is primarily a result of a $83.0$10.1 million change in working capital, which varies due to timing of transmittal orders and payments, as well as prefunding of payers primarily duringfor weekends, such as itwhich was on Septemberthe case for the quarter ended June 30, 2022.2023. The changes in working capital were offset by additional cash generated by our operating results adjusted for noncash items for the ninesix months ended SeptemberJune 30, 2022,2023, resulting from the further growth of the business.

Investing Activities
Net cash used in investing activities was $9.4$10.0 million for the ninesix months ended SeptemberJune 30, 2022,2023, representing an increase of $3.9$3.1 million from net cash used in investing activities of $5.5$6.9 million for the ninesix months ended SeptemberJune 30, 2021.2022. This increase in cash used was primarily due to higherthe acquisition of LAN Holdings through a cash transaction which resulted in $5.5 million of cash used, net of cash acquired, offset by lower purchases of computer equipment during the ninesix months ended SeptemberJune 30, 2022 as a result of2023 in comparison with the continued expansion of our business, as well as upgrades of equipment used by our sending agent network. In addition, the Company acquired an agent location during the ninesix months ended SeptemberJune 30, 2022 (none in 2021).2022.

Financing Activities
Net cash used inprovided by financing activities was $8.0$6.5 million for the ninesix months ended SeptemberJune 30, 2022,2023, which primarily consisted of $3.3$40.0 million of borrowings, net under the revolving credit facility, $2.2 million in scheduled quarterly payments due on the term loan facility, $43.7$30.5 million used for repurchases of common stock, and $5.3$0.9 million of payments for stock-based awards for shares withheld for tax payments in connection with share-based compensation arrangements and $0.7 million of debt origination costs related to the A&R Credit Agreement, partially offset by $43.0 of borrowings, net under the revolving credit facility and $1.4$0.8 million in proceeds from issuance of stock as a result of the exercise of stock options.

Net cash used in financing activities was $4.7$15.6 million for the ninesix months ended SeptemberJune 30, 2021,2022, which primarily consisted of a $43.1$2.2 million repayment on the term loan facility and $2.9 million of debt origination costs in connection with the refinancing of the Company’s previous credit agreement, and a $2.9 million scheduled quarterly paymentpayments due on the term loan facility, offset by $40.2$13.6 million borrowingsused for repurchases of common stock and $0.3 million of payments for stock-based awards for shares withheld in connection with the refinancing of the Company’s previous credit agreement and $3.2share-based compensation arrangements, offset by $0.5 million in proceeds from issuance of stock as a result of the exercise of stock options.

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Critical Accounting Policies and Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions about future events that affect amounts reported in our condensed consolidated financial statements and related notes, as well as the related disclosure of contingent assets and liabilities at the date of the financial statements. Management evaluates its accounting policies, estimates and judgments on an on-going basis. Management bases its estimates and judgments on historical experience and various other factors that are believed to be reasonable under the circumstances. Actual results may differ from these estimates under different assumptions and conditions.

An accounting policy is considered to be critical if it requires an accounting estimate to be made based on assumptions about matters that are highly uncertain at the time the estimate is made, and if different estimates that reasonably could have been used, or changes in the accounting estimate that are reasonably likely to occur, could materially impact the consolidated financial statements. Our Critical Accounting Policies and Estimates disclosed in “Management’s Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates” in our Annual Report on Form 10-K for the year ended December 31, 2021,2022, for which there were no material changes during the three and ninesix months ended SeptemberJune 30, 2022,2023, included the following:

Accounts Receivable and Allowance for Credit Losses
Goodwill and Intangible Assets
Income Taxes

Recent Accounting Pronouncements
Refer to Note 1, Business and Accounting Policies, of the Condensed Consolidated Financial Statements for information on recent accounting pronouncements.

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ITEM 3.    QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Foreign Currency Risk
We manage foreign currency risk through the structure of the business and an active risk management process. One of the methods to settle with our payers in Latin America is entering into foreign exchange tom and spot transactions with local and foreign currency providers (“counterparties”). The foreign currency exposure on our foreign exchange tom and spot transactions is limited by the fact that all transactions are settled within two business days from trade date. Foreign currency fluctuations, however, may negatively affect our average exchange gain per transaction. The Company had open tom and spot foreign exchange contracts for Mexican pesos and Guatemalan quetzales amounting to approximately $58.0$86.3 million and $48.6$41.3 million at SeptemberJune 30, 20222023 and December 31, 2021,2022, respectively.

In addition, included in wire transfers and money orders payable, net in our condensed consolidated balance sheets as of SeptemberJune 30, 20222023 and December 31, 2021,2022, there are $26.7$31.7 million and $17.8$39.3 million, respectively, of wires payable denominated in foreign currencies, primarily Mexican pesos and Guatemalan quetzales.

Also, included in prepaid wires, net in our condensed consolidated balance sheets as of SeptemberJune 30, 20222023 and December 31, 2021,2022, there are $100.2$94.3 million and $39.7$82.3 million, respectively, of prepaid wires denominated in foreign currencies, primarily Mexican pesos and Guatemalan quetzales.

We are also exposed to changes in currency rates as a result of our investments in foreign operations and revenues generated in currencies other than the U.S. dollar. Revenues and profits generated by international operations will increase or decrease because of changes in foreign currency exchange rates. This foreign currency risk is related primarily to our operations in our foreign subsidiaries. Revenues from our foreign subsidiaries represent less than 1%2% of our consolidated revenues for the ninesix months ended SeptemberJune 30, 2022.2023. Therefore, a 10% increase or decrease in these currency rates against the U.S. Dollar would result in a de minimis change to our overall operating results.

The spot and average exchange rates for Mexico, Guatemala and Canadathe currencies in which we operate to U.S. dollar are as follows:

2022202120232022
Spot(1)
Average(2)
Spot(1)
Average(2)
Spot(1)
Average(2)
Spot(1)
Average(2)
U.S. dollar/Mexico PesoU.S. dollar/Mexico Peso20.16 20.21 19.89 20.12 U.S. dollar/Mexico Peso17.09 18.17 19.40 20.25 
U.S. dollar/Guatemala QuetzalU.S. dollar/Guatemala Quetzal7.86 7.74 7.74 7.73 U.S. dollar/Guatemala Quetzal7.84 7.81 7.85 7.68 
U.S. dollar/Canadian DollarU.S. dollar/Canadian Dollar1.37 1.30 1.24 1.25 U.S. dollar/Canadian Dollar1.33 1.35 1.36 1.27 
U.S. dollar/Dominican Peso(3)
U.S. dollar/Dominican Peso(3)
54.95 54.42 — — 
U.S. dollar/Euro(3)
U.S. dollar/Euro(3)
0.92 0.92 — — 
(1)Spot exchange rates are as of SeptemberJune 30, 20222023 and December 31, 2021.2022.
(2)Average exchange rates are for the ninesix months ended SeptemberJune 30, 20222023 and 2021.2022.
(3)We commenced operations in Dominican Republic and Europe in connection with the LAN Acquisition in April 2023 and, therefore, no information is provided prior to 2023.

Long-term sustained appreciation of the Mexican peso or Guatemalan quetzal as compared to the U.S. dollar could affect our profit margins.

Interest Rate Risk
Interest on the term loan facility and revolving credit facilityAs discussed above, interest under the A&R Credit Agreement is determined by reference to either LIBOR (subject to replacement) or a “base rate”, in each case plus an applicable margin ranging between 2.50% and 3.00% per annum for LIBOR loans and between 1.50% and 2.00% per annum for base rate loans dependingvariable based on the level of our consolidated leverage ratio. The Company is also required to pay a fee on the unused portion of the revolving credit facility equal to 0.35% per annum.certain benchmark rates, including SOFR. Because interest expense is subject to fluctuation, if interest rates increase, our debt service obligations on such variable rate indebtedness would increase even though the amount borrowed remained the same. Accordingly, an increase in interest rates would adversely affect our profitability. The A&R Credit Agreement contains provisions for the replacement of the benchmark for interest rates in light of the cessation of the publication of LIBOR rates.

During the six months ended June 30, 2023, the Federal Reserve continued raising the fed funds rate from 4.50% to 5.25% as a countermeasure to control inflation in the United States. As a consequence, other benchmark interest rates such as SOFR and previously LIBOR increased as well. These increases have resulted in the Company incurring higher interest expense. The Company expects that the Federal Reserve will continue to monitor the fed funds rate and may consider further increases through the remainder of 2023, which will continue exposing the Company to higher interest rate risk as benchmark interest rates such as SOFR will continue increasing as well.As of SeptemberJune 30, 2022,2023, we had $125.0$78.8 million and $116.0 million in outstanding borrowings under the term loan facility and revolving credit facilities.facility, respectively. A hypothetical 1% increase or decrease in the interest rate on our indebtedness as of SeptemberJune 30, 20222023 would have increased or decreased cash interest expense on our term loan facility and revolving credit facility by approximately $0.8 million and $0.4$1.2 million per annum, respectively.


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Credit Risk
We maintain certain cash balances in various U.S. banks, which at times, may exceed federally insured limits. We have not incurred any losses on these accounts. In addition, we maintain cash in various bank accounts in Mexico, Guatemala, Canada, Spain and Canada,Italy and short-term investment accounts in Mexico, which aremay not be fully insured. During the ninesix months ended SeptemberJune 30, 2022,2023, we havedid not incurredincur any new losses on these uninsured accounts. However, during the three months ended September 30, 2022, as a result of management’s reassessment of the current status of the liquidation process of a previously closed financial institution in Mexico, which has been delayed in the court system, the Company recorded an additional provision of $1.6 million on the balance outstanding of deposits frozen at the closed financial institution. To manage our exposure to credit risk with respect to cash balances and other credit risk exposure resulting from our relationships with banks and financial institutions, we regularly review cash concentrations, and we attempt to diversify our cash balances among global financial institutions.

We are also exposed to credit risk related to receivable balances from sending agents. We perform a credit review before each agent signing and conduct ongoing analyses of sending agents and certain other parties we transact with directly. As of SeptemberJune 30, 2022,2023, we also had $3.0$3.1 million outstanding of agent advances receivable from sending agents. Most of the agent advances receivable are collateralized by personal guarantees from the sending agents and by assets from their businesses. Due to the COVID-19 pandemic as well as other factors, it is possible we could be adversely affected by credit losses, such as those related to our outstanding agent advances receivable from sending agents. At the date of this report, however, we are not aware of any significant exposure and we continue monitoring our credit risk.

Our provision for credit losses was approximately $2.0$1.9 million for the ninesix months ended SeptemberJune 30, 2022 (0.5%2023 (0.6% of total revenues) and $1.0$1.5 million for the ninesix months ended SeptemberJune 30, 2021 (0.3%2022 (0.6% of total revenues). The increase in our provision for credit losses in the ninesix months ended SeptemberJune 30, 20222023 is due to higher write-offs of accounts receivable in 20222023 compared to 20212022 primarily as a result of sending agents that were not able to pay in accordance with the original terms and are, accordingly, subject to our normal collection procedures.

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ITEM 4.    CONTROLS AND PROCEDURES
Evaluation of Disclosure Controls and Procedures
We maintain disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) that are designed to ensure that information required to be disclosed in our reports filed pursuant to the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules, regulations and related forms, and that such information is accumulated and communicated to our management, including our Chief Executive Officer and President, and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure.

A control system, no matter how well conceived and operated, can provide only reasonable, not absolute, assurance that the objectives of the control system are met. Because of inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues, if any, within an organization have been detected. Accordingly, our disclosure controls and procedures are designed to provide reasonable, not absolute, assurance that the objectives of our disclosure control system are met.

As required by Rules 13a-15(b) and 15d-15(b) under the Exchange Act, our Chief Executive Officer and President, and Chief Financial Officer, carried out an evaluation of the effectiveness of our disclosure controls and procedures as of SeptemberJune 30, 2022.2023. Based on their evaluation, the Company’s principal executive officer and principal financial officer concluded that the Company’s disclosure controls and procedures were effective and operating to provide reasonable assurance that material information required to be disclosed in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, including ensuring that such material information is accumulated and communicated to our management, including our Chief Executive Officer and President, and Chief Financial Officer, as appropriate, to allow timely decisions regarding required disclosure as of SeptemberJune 30, 2022.2023.

Changes in Internal Control Over Financial Reporting
During the most recently completed fiscal quarter, there have been no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

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PART II – OTHER INFORMATION
ITEM 1. LEGAL PROCEEDINGS
From time to time, we are subject to various claims, charges and litigation matters that arise in the ordinary course of business. We believe these actions are a normal incident of the nature and kind of business in which we are engaged. While it is not feasible to predict the outcome of these matters with certainty, we do not believe that any asserted or unasserted legal claims or proceedings, individually or in the aggregate, will have a material and adverse effect on our business, financial condition and results of operations.

Reference is made to Note 1516 – Commitments and Contingencies in the Unaudited Condensed Consolidated Financial Statements of the Company contained elsewhere in this Quarterly Report on Form 10–Q for information regarding certain legal proceedings to which we are a party, which information is incorporated by reference herein.

ITEM 1A. RISK FACTORS
There have been no material changes to our principal risks that we believe are material to our business, results of operations and financial condition, from the risk factors previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 20212022 (the “2021“2022 Form 10-K”). Prospective investors are encouraged to consider the risks described in our 20212022 Form 10-K, our Management’s Discussion and Analysis of Financial Condition and Results of Operations contained in this Quarterly Report on Form 10-Q and in our 20212022 Form 10-K, and other information publicly disclosed or contained in documents we file with the Securities and Exchange Commission before purchasing our securities.

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
Issuer Purchases of Equity Securities
The following table provides information about repurchases of our common stock during the quarter ended SeptemberJune 30, 2022:2023:
PeriodTotal Number of Shares Purchased
(a)
Average Price Paid per ShareTotal Number of Shares Purchased as Part of Publicly Announced Program
(b)
Approximate Dollar Value of Shares that May Yet be Purchased under the Program
July 1 through July 31115,229$— 115,229$18,253,402 
August 1 through August 311,669,058$23.50 $18,253,402 
September 1 through September 30$— $18,253,402 
Total1,784,287115,229
PeriodTotal Number of Shares Purchased
(a)
Average Price Paid per ShareTotal Number of Shares Purchased as Part of Publicly Announced Program
(b)
Approximate Dollar Value of Shares that May Yet be Purchased under the Program
April 1 through April 301,007$25.26 $100,669,397 
May 1 through May 31647,264$24.80 147,063$97,263,137 
June 1 through June 30269,059$24.50 269,059$90,672,499 
Total917,330416,122

(a)Includes 115,229147,063 and 269,059 shares purchased in JulyMay 2023 and June 2023, respectively, under the Repurchase Program (as defined below) and 496,5731,007 and 201 shares withheld for income tax purposes in August 2022,April 2023 and May 2023, respectively, in connection with shares issued under compensation and benefit programs. In addition, in August 2022,May 2023, the Company repurchased 1,172,485500,000 shares at a price of $23.50$25.28 per share in a privately negotiated transaction outside of the Repurchase Program.
(b)On August 18, 2021, the Company’s Board of Directors approved a stock repurchase program (the “Repurchase Program”) that authorizes the Company to purchase up to $40.0 million of outstanding shares of the Company’s common stock. The Repurchase Program does not have an expiration date. On March 3, 2023 the Board of Directors approved an increase to the Repurchase Program that authorizes the Company to purchase an additional $100.0 million of its outstanding shares.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES
None.

ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.

ITEM 5. OTHER INFORMATION
None.On May 11, 2023, Robert Lisy, the Company’s Chief Executive Officer, President and Chairman of the Board of Directors, terminated a plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act (the “10b5-1 plan”), which 10b5-1 plan was entered into on December 16, 2022 and provided for the potential sale of up to 150,000 shares of the Company’s common stock between May and June 2023.
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Mr. Lisy sold 116,000 shares of the Company’s common stock under the 10b5-1 plan during May 2023 prior to termination of such plan.



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ITEM 6. EXHIBITS
Exhibit No.Document
Share Repurchase Agreement, dated August 9, 2022,May 5, 2023, between International Money Express, Inc. and SPC Intermex, LPLP. (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on August 10, 2022)May 8, 2023).
Second Amendment Agreement, dated as of April 18, 2023, by and among International Money Express, Inc., International Money Express Sub 2, LLC, Intermex Holdings, Inc., Intermex Wire Transfer, LLC, the other guarantors from time to time party thereto, the lenders from time to time party thereto and KeyBank National Association, as the Administrative Agent and L/C Issuer (incorporated by reference to Exhibit 10.1 to the Registrant’s Current Report on Form 8-K filed on April 19, 2023).
Certification pursuant to Section 302 of the Sarbanes-Oxley Act - Chief Executive Officer
Certification pursuant to Section 302 of the Sarbanes-Oxley Act - Chief Financial Officer
Certification of Chief Executive Officer pursuant to 18 U.S.C. § 1350.
Certification of Chief Financial Officer pursuant to 18 U.S.C. § 1350.
101.INSInline XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the Inline XBRL document.
101.SCHInline XBRL Taxonomy Extension Schema
101.CALInline XBRL Taxonomy Extension Calculation Linkbase
101.DEFInline XBRL Taxonomy Extension Definition Linkbase
101.LABInline XBRL Taxonomy Extension Label Linkbase
101.PREInline XBRL Taxonomy Extension Presentation Linkbase
104*The cover page from the Company’s Quarterly Report on Form 10-Q for the quarter ended SeptemberJune 30, 2022,2023, formatted in Inline XBRL (included with the Exhibit 101 attachments).
*Filed herewith.
** Previously filed.
#    Furnished herewith.

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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
International Money Express, Inc. (Registrant)
Date: November 9, 2022August 4, 2023By:/s/ Robert Lisy
Robert Lisy
Chief Executive Officer and President
(Principal Executive Officer)
Date: November 9, 2022August 4, 2023By:/s/ Andras Bende
Andras Bende
Chief Financial Officer
(Principal Financial Officer)

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