Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2023 | Jul. 31, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-37986 | |
Entity Registrant Name | INTERNATIONAL MONEY EXPRESS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-4219082 | |
Entity Address, Address Line One | 9480 South Dixie Highway | |
Entity Address, City or Town | Miami | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33156 | |
City Area Code | 305 | |
Local Phone Number | 671-8000 | |
Title of 12(b) Security | Common stock ($0.0001 par value) | |
Trading Symbol | IMXI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 35,418,293 | |
Entity Central Index Key | 0001683695 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 147,372 | $ 149,493 |
Accounts receivable, net | 123,700 | 129,808 |
Prepaid wires, net | 119,169 | 90,386 |
Prepaid expenses and other current assets | 12,320 | 12,749 |
Total current assets | 402,561 | 382,436 |
Property and equipment, net | 28,670 | 28,160 |
Goodwill | 53,487 | 49,774 |
Intangible assets, net | 20,622 | 19,826 |
Other assets | 34,461 | 31,876 |
Total assets | 539,801 | 512,072 |
Current liabilities: | ||
Current portion of long-term debt, net | 6,069 | 4,975 |
Accounts payable | 21,658 | 25,686 |
Wire transfers and money orders payable, net | 106,271 | 112,251 |
Accrued and other liabilities | 41,959 | 41,855 |
Total current liabilities | 175,957 | 184,767 |
Long-term liabilities: | ||
Debt, net | 187,201 | 150,235 |
Lease liabilities, net | 22,918 | 23,272 |
Deferred tax liability, net | 2,900 | 3,892 |
Total long-term liabilities | 213,019 | 177,399 |
Commitments and contingencies, see Note 16 | ||
Stockholders’ equity: | ||
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. | 4 | 4 |
Additional paid-in capital | 74,103 | 70,210 |
Retained earnings | 166,318 | 139,134 |
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. | (89,815) | (59,300) |
Total stockholders’ equity | 150,825 | 149,906 |
Total liabilities and stockholders’ equity | $ 539,801 | $ 512,072 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common shares, authorized (in shares) | 230,000,000 | 230,000,000 |
Common shares, issued (in shares) | 39,571,073 | 39,453,236 |
Common shares, outstanding (in shares) | 35,516,226 | 36,630,970 |
Treasury stock (in shares) | 4,054,847 | 2,822,266 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Revenues: | ||||
Total revenues | $ 169,150 | $ 136,935 | $ 314,514 | $ 251,600 |
Operating expenses: | ||||
Service charges from agents and banks | 110,996 | 92,066 | 207,113 | 169,060 |
Salaries and benefits | 17,640 | 11,748 | 33,808 | 23,058 |
Other selling, general and administrative expenses | 12,637 | 7,663 | 23,974 | 14,730 |
Depreciation and amortization | 3,135 | 2,251 | 6,038 | 4,434 |
Total operating expenses | 144,408 | 113,728 | 270,933 | 211,282 |
Operating income | 24,742 | 23,207 | 43,581 | 40,318 |
Interest expense | 2,651 | 1,112 | 4,842 | 2,064 |
Income before income taxes | 22,091 | 22,095 | 38,739 | 38,254 |
Income tax provision | 6,669 | 6,111 | 11,555 | 10,616 |
Net income | 15,422 | 15,984 | 27,184 | 27,638 |
Other comprehensive income (loss) | 175 | (101) | 357 | 11 |
Comprehensive income | $ 15,597 | $ 15,883 | $ 27,541 | $ 27,649 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.43 | $ 0.42 | $ 0.75 | $ 0.72 |
Diluted (in dollars per share) | $ 0.42 | $ 0.41 | $ 0.73 | $ 0.71 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 36,001,670 | 38,257,156 | 36,239,997 | 38,309,295 |
Diluted (in shares) | 36,871,674 | 39,228,991 | 37,115,490 | 39,153,039 |
Wire transfer and money order fees, net | ||||
Revenues: | ||||
Total revenues | $ 144,518 | $ 117,622 | $ 268,968 | $ 215,621 |
Foreign exchange gain, net | ||||
Revenues: | ||||
Total revenues | 22,382 | 18,195 | 41,550 | 33,868 |
Other income | ||||
Revenues: | ||||
Total revenues | $ 2,250 | $ 1,118 | $ 3,996 | $ 2,111 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Treasury Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance, common (in shares) at Dec. 31, 2021 | 38,820,222 | |||||
Beginning balance at Dec. 31, 2021 | $ 143,040 | $ 4 | $ (5,566) | $ 66,875 | $ 81,803 | $ (76) |
Beginning balance, treasury (in shares) at Dec. 31, 2021 | (341,522) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 27,638 | 27,638 | ||||
Issuance of common stock: | ||||||
Exercise of stock options, net of shares withheld for taxes (in shares) | 73,715 | |||||
Exercise of stock options, net of shares withheld for taxes | 487 | 487 | ||||
Restricted stock units and awards, net of shares withheld for taxes (in shares) | 115,327 | |||||
Restricted stock units and awards, net of shares withheld for taxes | (283) | (283) | ||||
Fully vested shares (in shares) | 1,778 | |||||
Share-based compensation | 2,933 | 2,933 | ||||
Adjustment from foreign currency translation, net | $ 11 | 11 | ||||
Acquisition of treasury stock, at cost (in shares) | (727,901) | (727,901) | ||||
Acquisition of treasury stock, at cost | $ (13,628) | $ (13,628) | ||||
Ending balance, common (in shares) at Jun. 30, 2022 | 39,011,042 | |||||
Ending balance at Jun. 30, 2022 | 160,198 | $ 4 | $ (19,194) | 70,012 | 109,441 | (65) |
Ending balance, treasury (in shares) at Jun. 30, 2022 | (1,069,423) | |||||
Beginning balance, common (in shares) at Mar. 31, 2022 | 38,885,736 | |||||
Beginning balance at Mar. 31, 2022 | 152,734 | $ 4 | $ (9,194) | 68,431 | 93,457 | 36 |
Beginning balance, treasury (in shares) at Mar. 31, 2022 | (565,910) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 15,984 | 15,984 | ||||
Issuance of common stock: | ||||||
Exercise of stock options, net of shares withheld for taxes (in shares) | 29,990 | |||||
Exercise of stock options, net of shares withheld for taxes | (75) | (75) | ||||
Restricted stock units and awards, net of shares withheld for taxes (in shares) | 94,540 | |||||
Restricted stock units and awards, net of shares withheld for taxes | (9) | (9) | ||||
Fully vested shares (in shares) | 776 | |||||
Share-based compensation | 1,665 | 1,665 | ||||
Adjustment from foreign currency translation, net | $ (101) | (101) | ||||
Acquisition of treasury stock, at cost (in shares) | (503,513) | (503,513) | ||||
Acquisition of treasury stock, at cost | $ (10,000) | $ (10,000) | ||||
Ending balance, common (in shares) at Jun. 30, 2022 | 39,011,042 | |||||
Ending balance at Jun. 30, 2022 | $ 160,198 | $ 4 | $ (19,194) | 70,012 | 109,441 | (65) |
Ending balance, treasury (in shares) at Jun. 30, 2022 | (1,069,423) | |||||
Beginning balance, common (in shares) at Dec. 31, 2022 | 36,630,970 | 39,453,236 | ||||
Beginning balance at Dec. 31, 2022 | $ 149,906 | $ 4 | $ (59,300) | 70,210 | 139,134 | (142) |
Beginning balance, treasury (in shares) at Dec. 31, 2022 | (2,822,266) | (2,822,266) | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | $ 27,184 | 27,184 | ||||
Issuance of common stock: | ||||||
Exercise of stock options, net of shares withheld for taxes (in shares) | 67,250 | |||||
Exercise of stock options, net of shares withheld for taxes | 822 | 822 | ||||
Restricted stock units and awards, net of shares withheld for taxes (in shares) | 48,980 | |||||
Restricted stock units and awards, net of shares withheld for taxes | (872) | (872) | ||||
Fully vested shares (in shares) | 1,607 | |||||
Share-based compensation | 3,943 | 3,943 | ||||
Adjustment from foreign currency translation, net | $ 357 | 357 | ||||
Acquisition of treasury stock, at cost (in shares) | (1,232,581) | (1,232,581) | ||||
Acquisition of treasury stock, at cost | $ (30,515) | $ (30,515) | ||||
Ending balance, common (in shares) at Jun. 30, 2023 | 35,516,226 | 39,571,073 | ||||
Ending balance at Jun. 30, 2023 | $ 150,825 | $ 4 | $ (89,815) | 74,103 | 166,318 | 215 |
Ending balance, treasury (in shares) at Jun. 30, 2023 | (4,054,847) | (4,054,847) | ||||
Beginning balance, common (in shares) at Mar. 31, 2023 | 39,556,217 | |||||
Beginning balance at Mar. 31, 2023 | $ 155,853 | $ 4 | $ (66,884) | 71,797 | 150,896 | 40 |
Beginning balance, treasury (in shares) at Mar. 31, 2023 | (3,138,725) | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 15,422 | 15,422 | ||||
Issuance of common stock: | ||||||
Exercise of stock options, net of shares withheld for taxes (in shares) | 10,000 | |||||
Exercise of stock options, net of shares withheld for taxes | 99 | 99 | ||||
Restricted stock units and awards, net of shares withheld for taxes (in shares) | 4,075 | |||||
Restricted stock units and awards, net of shares withheld for taxes | (38) | (38) | ||||
Fully vested shares (in shares) | 781 | |||||
Share-based compensation | 2,245 | 2,245 | ||||
Adjustment from foreign currency translation, net | $ 175 | 175 | ||||
Acquisition of treasury stock, at cost (in shares) | (916,122) | (916,122) | ||||
Acquisition of treasury stock, at cost | $ (22,931) | $ (22,931) | ||||
Ending balance, common (in shares) at Jun. 30, 2023 | 35,516,226 | 39,571,073 | ||||
Ending balance at Jun. 30, 2023 | $ 150,825 | $ 4 | $ (89,815) | $ 74,103 | $ 166,318 | $ 215 |
Ending balance, treasury (in shares) at Jun. 30, 2023 | (4,054,847) | (4,054,847) |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Jun. 30, 2022 | |
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 amortization | 6,038 | 4,434 |
Share-based compensation | 3,943 | 2,933 |
Provision for credit losses | 1,940 | 1,498 |
Fair value of contingent consideration | (121) | 0 |
Debt origination costs amortization | 528 | 507 |
Deferred income tax benefit, net | (745) | (330) |
Non-cash lease expense | 4,074 | 999 |
Loss on disposal of property and equipment | 840 | 434 |
Total adjustments | 16,497 | 10,475 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 5,314 | (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 activities | 8 | 4,560 |
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) | 0 |
Acquisition of agent locations | 0 | (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, net | 40,000 | 0 |
Debt origination costs | (701) | 0 |
Proceeds from exercise of stock options | 822 | 487 |
Payments for stock awards | (872) | (283) |
Repurchases of common stock | (30,515) | (13,628) |
Net cash provided by (used in) financing activities | 6,546 | (15,612) |
Effect of exchange rate changes on cash and cash equivalents | 1,353 | 45 |
Net decrease in cash and cash equivalents | (2,121) | (17,874) |
Cash and cash equivalents, beginning of period | 149,493 | 132,474 |
Cash and cash equivalents, end of period | 147,372 | 114,600 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 4,285 | 1,468 |
Cash paid for income taxes | 13,257 | 8,767 |
Supplemental disclosure of non-cash investing activities: | ||
Lease liabilities arising from obtaining right-of-use assets | 4,843 | 253 |
Contingent consideration liability | 600 | 0 |
Settlement of receivable balance from LAN Holdings | 2,534 | 0 |
Supplemental disclosure of non-cash investing activities: | ||
Issuance of common stock for cashless exercise of options | $ 0 | $ 1,293 |
BUSINESS AND ACCOUNTING POLICIE
BUSINESS AND ACCOUNTING POLICIES | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
BUSINESS AND ACCOUNTING POLICIES | 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 Germany to Mexico, Guatemala and other countries in Latin America, Africa, Asia and Europe through a network of authorized agents located in various unaffiliated retail establishments and 124 Company-operated stores throughout the United States, Canada, Spain, Italy and 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, 2022. In March 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. The acquisition of La Nacional was closed effective November 1, 2022 and the acquisition of LAN Holdings was closed effective April 5, 2023. Refer to Note 2 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 Company 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 our paying agents are concentrated in a few large banks and financial institutions and large retail chains in Latin American countries. Accounting Pronouncements |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS Envios de Valores La Nacional Corp. On November 1, 2022, the Company completed the acquisition of 100% of the voting interest of La Nacional (the “La Nacional Acquisition”) 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 customary purchase price adjustments) and could 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 financial targets during 2023. The contingent consideration fair value as of June 30, 2023 and December 31, 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 following table summarizes the fair values of consideration transferred and identifiable net assets acquired in the La Nacional Acquisition on November 1, 2022, the measurement period adjustments in the six months ended June 30, 2023 and the fair values of consideration transferred and identifiable net assets acquired as of June 30, 2023. November 1, 2022 Measurement Period Adjustments June 30, 2023 Assets acquired: Cash and cash equivalents $ 39,569 $ — $ 39,569 Accounts receivable 16,504 — 16,504 Prepaid wires 571 — 571 Prepaid expenses and other current assets 1,219 430 1,649 Property and Equipment 4,077 — 4,077 Intangible assets 8,450 — 8,450 Other assets 13,659 — 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 total consideration transferred by the Company in connection with the LAN Acquisition was $13.4 million, which included $10.3 million in cash, subject to customary purchase price adjustments. The Company will 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 determination of the total 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 subject 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. The LAN Holdings results of operations have been included in the Company's results of operations from the date of its acquisition. 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 and external costs directly related to the Company’s acquisition activity, consisting primarily of legal, consulting, accounting and financial 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, 2023 2022 2023 2022 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 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 Company’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, 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 but removed from the pro forma results for the three and six months ended June 30, 2023. These unaudited pro forma financial results do not include adjustments to reflect 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 which are beyond the Company’s control. |
REVENUES
REVENUES | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The Company recognized revenues from contracts with customers for the three and six months ended June 30, 2023 and 2022, as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Wire transfer and money order fees $ 145,252 $ 118,788 $ 270,259 $ 217,191 Discounts and promotions (734) (1,166) (1,291) (1,570) Wire transfer and money order fees, net 144,518 117,622 268,968 215,621 Foreign exchange gain, net 22,382 18,195 41,550 33,868 Other income 2,250 1,118 3,996 2,111 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 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. 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. |
ACCOUNTS RECEIVABLE AND AGENT A
ACCOUNTS RECEIVABLE AND AGENT ADVANCES RECEIVABLE, NET OF ALLOWANCE | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE AND AGENT ADVANCES RECEIVABLE, NET OF ALLOWANCE | 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): June 30, 2023 December 31, 2022 Accounts receivable $ 126,248 $ 132,363 Allowance for credit losses (2,548) (2,555) Accounts receivable, net $ 123,700 $ 129,808 Agent Advances Receivable Agent advances receivable, net of allowance for credit losses, from sending agents is as follows (in thousands): June 30, 2023 December 31, 2022 Agent advances receivable, current $ 1,513 $ 1,373 Allowance for credit losses (79) (62) Net current $ 1,434 $ 1,311 Agent advances receivable, long-term $ 1,546 $ 1,423 Allowance for credit losses (63) (31) 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 5), and the net long-term portion is included in other assets in the condensed consolidated balance sheets. Some agent advances receivable have interest rates ranging from 0% to 10.5% per annum. The Company had an immaterial amount of accrued interest receivable as of June 30, 2023 and December 31, 2022, which was included in the allowance for credit losses calculation. At June 30, 2023 and December 31, 2022, there were $3.1 million and $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 June 30, 2023 are as follows (in thousands): Unpaid Advance Balance Under 1 year $ 1,513 Between 1 and 2 years 1,137 More than 2 years 409 Total $ 3,059 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 June 30, Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 2,657 $ 2,256 $ 2,648 $ 2,249 Provision 1,155 1,056 1,940 1,498 Charge-offs (1,426) (970) (2,434) (1,502) Recoveries 304 100 536 197 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): June 30, 2023 December 31, 2022 Accounts receivable $ 2,548 $ 2,555 Agent advances receivable 142 93 Allowance for credit losses $ 2,690 $ 2,648 |
PREPAID EXPENSES AND OTHER ASSE
PREPAID EXPENSES AND OTHER ASSETS | 6 Months Ended |
Jun. 30, 2023 | |
Prepaid Expense and Other Assets [Abstract] | |
PREPAID EXPENSES AND OTHER ASSETS | PREPAID EXPENSES AND OTHER ASSETS Prepaid expenses and other current assets consisted of the following (in thousands): June 30, 2023 December 31, 2022 Prepaid insurance $ 432 $ 1,578 Prepaid fees and services 2,029 1,986 Agent incentives advances 1,094 1,014 Agent advances receivable, net of allowance 1,434 1,311 Tenant allowance 2,815 3,753 Prepaid income taxes 3,430 2,130 Prepaid expenses and current assets - other 1,086 977 $ 12,320 $ 12,749 Other assets consisted of the following (in thousands): June 30, 2023 December 31, 2022 Revolving line origination fees $ 1,997 $ 1,578 Agent incentives advances 2,063 1,062 Agent advances receivable, net of allowance 1,483 1,392 Right-of-use assets, net 24,446 24,768 Funds held by seized banking entities, net of allowance 1,868 1,646 Other assets 2,604 1,430 $ 34,461 $ 31,876 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 any of the Company's funds on deposit. The 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. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill and the majority of intangible assets on the condensed consolidated balance sheets of the Company were recognized from business acquisitions. Intangible assets on the condensed consolidated balance sheets of the Company consist of agent relationships, trade names, developed technology and other intangible assets. Agent relationships, trade names and developed technology are 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 names refers to the Intermex, 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 six months ended June 30, 2023. The following table presents the changes in goodwill and intangible assets (in thousands): Goodwill Intangibles Balance at December 31, 2022 $ 49,774 $ 19,826 Measurement period adjustment (Refer to Note 2) (1,134) — Acquisition of LAN Holdings 4,847 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 2023 and thereafter is as follows (in thousands): 2023 $ 2,479 2024 3,965 2025 3,156 2026 2,521 2027 2,023 Thereafter 6,478 $ 20,622 |
LEASES
LEASES | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
LEASES | LEASESTo conduct certain of our operations, the Company is a party to leases for office space, warehouses and Company-operated store locations. In December 2022, the Company entered into a lease agreement, which expires in 2033, for its new headquarters to accommodate its growing workforce. The Company expects to complete the move to the new headquarters in the second half of 2023 following the completion of leasehold improvements. The new lease agreement provides for the Company to receive a tenant allowance amounting to approximately $3.8 million through the construction period and the Company will commence making monthly lease payments on November 1, 2024. Such tenant allowance has been recorded within prepaid expenses and other current assets in the condensed consolidated balance sheet. The presentation of right-of-use assets and lease liabilities in the condensed consolidated balance sheet is as follows (in thousands): Leases Classification June 30, 2023 December 31, 2022 Assets Right-of-use assets Other assets (1) $ 24,446 $ 24,768 Total leased assets $ 24,446 $ 24,768 Liabilities Current Operating Accrued and other liabilities $ 5,341 $ 5,258 Noncurrent Operating Lease liabilities 22,918 23,272 Total Lease liabilities $ 28,259 $ 28,530 (1) Operating right of-use assets are recorded net of accumulated amortization of $7.9 million and $5.6 million as of June 30, 2023 and December 31, 2022, respectively. Lease expense for the three and six months ended June 30, 2023 and 2022, was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, Lease Cost Classification 2023 2022 2023 2022 Operating lease cost Other selling, general and administrative expenses $ 2,010 $ 530 $ 4,074 $ 999 As of June 30, 2023 and December 31, 2022 , the Company’s weighted-average remaining lease terms on its operating leases is 6.5 years and 6.6 years, and the Company’s weighted-average discount rate is 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 2023 and thereafter are as follows (in thousands): 2023 $ 3,137 2024 5,760 2025 6,229 2026 4,867 2027 3,607 Thereafter 14,978 Total lease payments 38,578 Less: Imputed interest (10,319) Present value of lease liabilities $ 28,259 |
WIRE TRANSFERS AND MONEY ORDERS
WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET | WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET Wire transfers and money orders payable, net consisted of the following (in thousands): June 30, 2023 December 31, 2022 Wire transfers payable, net $ 49,252 $ 55,572 Customer voided wires payable 27,860 27,236 Money orders payable 29,159 29,443 $ 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 |
ACCRUED AND OTHER LIABILITIES
ACCRUED AND OTHER LIABILITIES | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED AND OTHER LIABILITIES | ACCRUED AND OTHER LIABILITIES Accrued and other liabilities consisted of the following (in thousands): June 30, 2023 December 31, 2022 Commissions payable to sending agents $ 19,013 $ 19,141 Accrued salaries and benefits 4,024 5,578 Accrued bank charges 1,922 1,644 Accrued other professional fees 1,291 1,169 Accrued taxes 1,579 1,329 Lease liabilities, current portion 5,341 5,258 Contingent consideration liability 1,800 1,321 Deferred revenue loyalty program 4,393 4,212 Other 2,596 2,203 $ 41,959 $ 41,855 The following table shows the changes in the deferred revenue loyalty program liability (in thousands): Balance, December 31, 2022 $ 4,212 Revenue deferred during the period 1,493 Revenue recognized during the period (1,312) Balance, June 30, 2023 $ 4,393 |
DEBT
DEBT | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consisted of the following (in thousands): June 30, 2023 December 31, 2022 Revolving credit facility $ 116,000 $ 76,000 Term loan facility 78,750 80,938 194,750 156,938 Less: Current portion of long-term debt (1) (6,069) (4,975) Less: Debt origination costs (1,480) (1,728) $ 187,201 $ 150,235 (1) Current portion of long-term debt is net of debt origination costs of approximately $0.5 million both at June 30, 2023 and December 31, 2022, respectively. 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 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 provided 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 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. On 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 in connection with the A&R Credit Agreement and the additional debt origination costs of approximately $0.7 million incurred in connection with this 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 in connection with the amendment were expensed as incurred during the second quarter of 2023. The unamortized portion of debt origination costs totaled approximately $3.5 million and $3.3 million at June 30, 2023 and December 31, 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 $0.3 million for both the three months ended June 30, 2023 and 2022, and $0.5 million for both the six months ended June 30, 2023 and 2022. At the election of the Company, interest on the term loan facility and revolving loans under the A&R Credit Agreement, as amended, may be determined by reference to SOFR plus an index adjustment of 0.10% and an applicable margin ranging between 2.50% and 3.00% based upon the Company’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 six months ended June 30, 2023 for the term loan facility and revolving credit facility were 8.03% and 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 SOFR 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, which 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 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 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. 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. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Jun. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | 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 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 the revolving credit facility would approximate face value given the payment schedule and interest rate structure, which approximates current market interest rates. |
SHARE-BASED COMPENSATION
SHARE-BASED COMPENSATION | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
SHARE-BASED COMPENSATION | 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 June 30, 2023, 2.1 million shares remained available for future awards under the 2020 Plan. Stock Options 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 June 30, 2023 and 2022, respectively, and $0.3 million and $1.1 million for the six months ended June 30, 2023 and 2022, respectively, which are included in salaries and benefits in the condensed consolidated statements of income and comprehensive income. As of June 30, 2023, unrecognized compensation expense related to stock options of approximately $0.3 million is expected to be recognized over a weighted-average period of 0.9 years. A summary of stock option activity under the Plans during the six months ended June 30, 2023 is presented below: Number of Weighted-Average Weighted-Average Weighted-Average Outstanding at December 31, 2022 711,050 $ 11.56 6.26 $ 4.28 Granted — $ — $ — Exercised (67,250) $ 12.22 $ 4.96 Forfeited (11,250) $ 14.07 $ 6.54 Outstanding at June 30, 2023 632,550 $ 11.44 5.73 $ 4.17 Exercisable at June 30, 2023 531,300 $ 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 set 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 $0.7 million and $0.5 million for the three months ended June 30, 2023 and 2022, respectively, and $1.3 million and $0.8 million for the six months ended June 30, 2023 and 2022, respectively, which are included in salaries and benefits in the condensed consolidated statements of income and comprehensive income. As of June 30, 2023, unrecognized compensation expense related to RSUs of approximately $6.7 million is expected to be recognized over a weighted-average period of 1.9 years. A summary of RSU activity during the six months ended June 30, 2023 is presented below: Number of RSUs Weighted-Average Outstanding (nonvested) at December 31, 2022 316,902 $ 16.58 Granted (1) 175,121 $ 24.80 Vested (101,700) $ 17.36 Forfeited (17,319) $ 19.40 Outstanding (nonvested) at June 30, 2023 373,004 $ 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, $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. During the three and six months ended June 30, 2023, 781 and 1,607 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 $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 set forth in the applicable grant agreement. The Company recognized compensation expense for RSAs granted of $0.4 million and $0.2 million for the three months ended June 30, 2023 and 2022, respectively, and $0.6 million and $0.3 million for the six months ended June 30, 2023 and 2022, respectively, which are included in salaries and benefits in the condensed consolidated statements of income and comprehensive income. As of June 30, 2023, there was $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 six months ended June 30, 2023 is presented below: Number of RSAs Weighted-Average Outstanding (nonvested) at December 31, 2022 159,562 $ 15.28 Granted (1) 80,402 $ 25.68 Vested (47,984) $ 15.68 Forfeited — $ — Outstanding (nonvested) at June 30, 2023 191,980 $ 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 up 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 (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 $1.0 million and $0.5 million for the three months ended June 30, 2023 and 2022, respectively, and $1.8 million and $0.7 million for the six months ended June 30, 2023 and 2022, respectively, which are included in salaries and benefits in the condensed consolidated statements of income and comprehensive income. As of June 30, 2023, there was $5.7 million of unrecognized compensation expense related to PSUs, which is expected to be recognized over a weighted-average period of 1.9 years. A summary of PSU activity during the six months ended June 30, 2023 is presented below: Number of PSUs Weighted-Average Weighted-Average Outstanding (nonvested) at December 31, 2022 300,871 8.63 $ 17.30 Granted (1) 318,386 $ 19.49 Vested — $ — Forfeited — $ — Outstanding (nonvested) at June 30, 2023 619,257 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. |
EQUITY
EQUITY | 6 Months Ended |
Jun. 30, 2023 | |
Equity [Abstract] | |
EQUITY | 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. The A&R Credit Agreement, as amended, permits the Company 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, 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 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 May 5, 2023, the Company entered into an agreement with SPC Intermex, LP, a related party, for the purchase of 500,000 shares of the Company’s common stock for a total purchase price of $12.6 million, in a privately-negotiated transaction. During the three and six months ended June 30, 2023, including the shares previously mentioned, the Company purchased 916,122 shares and 1,232,581 shares for an aggregate purchase price of $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 June 30, 2023, there was $90.7 million available for future share repurchases under the Repurchase Program. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | 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): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net income for basic and diluted earnings per common share $ 15,422 $ 15,984 $ 27,184 $ 27,638 Shares: Weighted-average common shares outstanding – basic 36,001,670 38,257,156 36,239,997 38,309,295 Effect of dilutive securities: RSUs 122,030 111,918 131,335 86,988 Stock options 329,196 713,109 332,531 631,525 RSAs 52,046 45,064 61,626 35,500 PSUs 366,732 101,744 350,001 89,731 Weighted-average common shares outstanding – diluted 36,871,674 39,228,991 37,115,490 39,153,039 Earnings per common share – basic $ 0.43 $ 0.42 $ 0.75 $ 0.72 Earnings per common share – diluted $ 0.42 $ 0.41 $ 0.73 $ 0.71 As of June 30, 2023, there were 111.9 thousand RSUs and 58.4 thousand RSAs excluded from the diluted earnings per share calculation because, under the treasury stock method, the inclusion of these would be anti-dilutive. As of June 30, 2022, there were 76.3 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 13, the Company repurchased 916,122 shares and 1,232,581 shares of its common stock in the three and six months ended June 30, 2023, respectively. The effect of these repurchases on the Company’s weighted-average shares outstanding for the three and six months ended June 30, 2023 was a reduction of 737,711 shares and 464,658 shares, respectively, due to the timing of the repurchases. |
INCOME TAXES
INCOME TAXES | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | 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 Six Months Ended 2023 2022 2023 2022 Income before income taxes $ 22,091 $ 22,095 $ 38,739 $ 38,254 U.S statutory tax rate 21 % 21 % 21 % 21 % Income tax expense at statutory rate 4,639 4,640 8,135 8,033 State tax expense, net of federal benefit 1,741 1,369 3,055 2,353 Foreign tax rates different from U.S. statutory rate (5) 34 43 45 Non-deductible expenses 283 220 508 357 Stock compensation (67) (41) (274) (61) Other 78 (111) 88 (111) 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. 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 2039 through 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 June 30, 2023 on the Company’s U.S. federal or state deferred tax assets; however, a valuation allowance has been recorded at June 30, 2023 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 expenses. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | 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 seven 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 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 (permissible investments) to cover the amount outstanding of wire transfers and money orders payable. As of June 30, 2023, the Company’s subsidiaries were in compliance with these requirements. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 15,422 | $ 15,984 | $ 27,184 | $ 27,638 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 shares | Jun. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Adopted | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Robert Lisy [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | 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.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. | |
Name | Robert Lisy | |
Title | Chief Executive Officer, President and Chairman of the Board of Directors | |
Adoption Date | December 16, 2022 | |
Rule 10b5-1 Arrangement Terminated | true | |
Termination Date | May 11, 2023 | |
Aggregate Available | 150,000 | 150,000 |
BUSINESS AND ACCOUNTING POLIC_2
BUSINESS AND ACCOUNTING POLICIES (Policies) | 6 Months Ended |
Jun. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Accounting | 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, 2022. |
Concentrations | ConcentrationsThe 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 Company maintains various bank accounts in Mexico, Guatemala, Canada and certain countries in Europe, which may not be fully insured. |
Accounting Pronouncements | Accounting PronouncementsThe 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. |
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 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 the revolving credit facility would approximate face value given the payment schedule and interest rate structure, which approximates current market interest rates. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Summary of Estimated Fair Values of Consideration Paid and Net Assets Acquired | The following table summarizes the fair values of consideration transferred and identifiable net assets acquired in the La Nacional Acquisition on November 1, 2022, the measurement period adjustments in the six months ended June 30, 2023 and the fair values of consideration transferred and identifiable net assets acquired as of June 30, 2023. November 1, 2022 Measurement Period Adjustments June 30, 2023 Assets acquired: Cash and cash equivalents $ 39,569 $ — $ 39,569 Accounts receivable 16,504 — 16,504 Prepaid wires 571 — 571 Prepaid expenses and other current assets 1,219 430 1,649 Property and Equipment 4,077 — 4,077 Intangible assets 8,450 — 8,450 Other assets 13,659 — 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 |
Pro Forma Revenue and Net Income | 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, 2023 2022 2023 2022 Total revenues $ 169,150 $ 140,629 $ 319,222 $ 258,991 Net income $ 15,814 $ 16,079 $ 27,698 $ 27,827 |
REVENUES (Tables)
REVENUES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | The Company recognized revenues from contracts with customers for the three and six months ended June 30, 2023 and 2022, as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Wire transfer and money order fees $ 145,252 $ 118,788 $ 270,259 $ 217,191 Discounts and promotions (734) (1,166) (1,291) (1,570) Wire transfer and money order fees, net 144,518 117,622 268,968 215,621 Foreign exchange gain, net 22,382 18,195 41,550 33,868 Other income 2,250 1,118 3,996 2,111 Total revenues $ 169,150 $ 136,935 $ 314,514 $ 251,600 |
ACCOUNTS RECEIVABLE AND AGENT_2
ACCOUNTS RECEIVABLE AND AGENT ADVANCES RECEIVABLE, NET OF ALLOWANCE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Receivables [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | The outstanding balance of accounts receivable, net of allowance for credit losses, consists of the following (in thousands): June 30, 2023 December 31, 2022 Accounts receivable $ 126,248 $ 132,363 Allowance for credit losses (2,548) (2,555) Accounts receivable, net $ 123,700 $ 129,808 The changes in the allowance for credit losses related to accounts receivable and agent advances receivable are as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Beginning balance $ 2,657 $ 2,256 $ 2,648 $ 2,249 Provision 1,155 1,056 1,940 1,498 Charge-offs (1,426) (970) (2,434) (1,502) Recoveries 304 100 536 197 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): June 30, 2023 December 31, 2022 Accounts receivable $ 2,548 $ 2,555 Agent advances receivable 142 93 Allowance for credit losses $ 2,690 $ 2,648 |
Notes Receivable, Net of Allowance for Credit Loss | Agent advances receivable, net of allowance for credit losses, from sending agents is as follows (in thousands): June 30, 2023 December 31, 2022 Agent advances receivable, current $ 1,513 $ 1,373 Allowance for credit losses (79) (62) Net current $ 1,434 $ 1,311 Agent advances receivable, long-term $ 1,546 $ 1,423 Allowance for credit losses (63) (31) Net long-term $ 1,483 $ 1,392 |
Maturities of Notes Receivable | The maturities of agent advances receivable at June 30, 2023 are as follows (in thousands): Unpaid Advance Balance Under 1 year $ 1,513 Between 1 and 2 years 1,137 More than 2 years 409 Total $ 3,059 |
PREPAID EXPENSES AND OTHER AS_2
PREPAID EXPENSES AND OTHER ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Prepaid Expense and Other Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): June 30, 2023 December 31, 2022 Prepaid insurance $ 432 $ 1,578 Prepaid fees and services 2,029 1,986 Agent incentives advances 1,094 1,014 Agent advances receivable, net of allowance 1,434 1,311 Tenant allowance 2,815 3,753 Prepaid income taxes 3,430 2,130 Prepaid expenses and current assets - other 1,086 977 $ 12,320 $ 12,749 |
Schedule of Other Assets | Other assets consisted of the following (in thousands): June 30, 2023 December 31, 2022 Revolving line origination fees $ 1,997 $ 1,578 Agent incentives advances 2,063 1,062 Agent advances receivable, net of allowance 1,483 1,392 Right-of-use assets, net 24,446 24,768 Funds held by seized banking entities, net of allowance 1,868 1,646 Other assets 2,604 1,430 $ 34,461 $ 31,876 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill and Intangible Assets | The following table presents the changes in goodwill and intangible assets (in thousands): Goodwill Intangibles Balance at December 31, 2022 $ 49,774 $ 19,826 Measurement period adjustment (Refer to Note 2) (1,134) — Acquisition of LAN Holdings 4,847 3,200 Amortization expense — (2,404) Balance at June 30, 2023 $ 53,487 $ 20,622 |
Amortization Expense Related to Intangible Assets | Amortization expense related to intangible assets for the remainder of 2023 and thereafter is as follows (in thousands): 2023 $ 2,479 2024 3,965 2025 3,156 2026 2,521 2027 2,023 Thereafter 6,478 $ 20,622 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Leases [Abstract] | |
Presentation of Right-of-Use Assets and Lease Liabilities in Condensed Consolidated Balance Sheet | The presentation of right-of-use assets and lease liabilities in the condensed consolidated balance sheet is as follows (in thousands): Leases Classification June 30, 2023 December 31, 2022 Assets Right-of-use assets Other assets (1) $ 24,446 $ 24,768 Total leased assets $ 24,446 $ 24,768 Liabilities Current Operating Accrued and other liabilities $ 5,341 $ 5,258 Noncurrent Operating Lease liabilities 22,918 23,272 Total Lease liabilities $ 28,259 $ 28,530 (1) Operating right of-use assets are recorded net of accumulated amortization of $7.9 million and $5.6 million as of June 30, 2023 and December 31, 2022, respectively. |
Lease, Cost | Lease expense for the three and six months ended June 30, 2023 and 2022, was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, Lease Cost Classification 2023 2022 2023 2022 Operating lease cost Other selling, general and administrative expenses $ 2,010 $ 530 $ 4,074 $ 999 |
Schedule of Future Minimum 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 2023 and thereafter are as follows (in thousands): 2023 $ 3,137 2024 5,760 2025 6,229 2026 4,867 2027 3,607 Thereafter 14,978 Total lease payments 38,578 Less: Imputed interest (10,319) Present value of lease liabilities $ 28,259 |
WIRE TRANSFERS AND MONEY ORDE_2
WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Wire Transfer and Money Orders Payable | Wire transfers and money orders payable, net consisted of the following (in thousands): June 30, 2023 December 31, 2022 Wire transfers payable, net $ 49,252 $ 55,572 Customer voided wires payable 27,860 27,236 Money orders payable 29,159 29,443 $ 106,271 $ 112,251 |
ACCRUED AND OTHER LIABILITIES (
ACCRUED AND OTHER LIABILITIES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Payables and Accruals [Abstract] | |
Accrued and Other Liabilities | Accrued and other liabilities consisted of the following (in thousands): June 30, 2023 December 31, 2022 Commissions payable to sending agents $ 19,013 $ 19,141 Accrued salaries and benefits 4,024 5,578 Accrued bank charges 1,922 1,644 Accrued other professional fees 1,291 1,169 Accrued taxes 1,579 1,329 Lease liabilities, current portion 5,341 5,258 Contingent consideration liability 1,800 1,321 Deferred revenue loyalty program 4,393 4,212 Other 2,596 2,203 $ 41,959 $ 41,855 |
Changes in Deferred Revenue Loyalty Program Liability | The following table shows the changes in the deferred revenue loyalty program liability (in thousands): Balance, December 31, 2022 $ 4,212 Revenue deferred during the period 1,493 Revenue recognized during the period (1,312) Balance, June 30, 2023 $ 4,393 |
DEBT (Tables)
DEBT (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | Debt consisted of the following (in thousands): June 30, 2023 December 31, 2022 Revolving credit facility $ 116,000 $ 76,000 Term loan facility 78,750 80,938 194,750 156,938 Less: Current portion of long-term debt (1) (6,069) (4,975) Less: Debt origination costs (1,480) (1,728) $ 187,201 $ 150,235 (1) Current portion of long-term debt is net of debt origination costs of approximately $0.5 million both at June 30, 2023 and December 31, 2022, respectively. |
SHARE-BASED COMPENSATION (Table
SHARE-BASED COMPENSATION (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Option Activity | A summary of stock option activity under the Plans during the six months ended June 30, 2023 is presented below: Number of Weighted-Average Weighted-Average Weighted-Average Outstanding at December 31, 2022 711,050 $ 11.56 6.26 $ 4.28 Granted — $ — $ — Exercised (67,250) $ 12.22 $ 4.96 Forfeited (11,250) $ 14.07 $ 6.54 Outstanding at June 30, 2023 632,550 $ 11.44 5.73 $ 4.17 Exercisable at June 30, 2023 531,300 $ 11.03 5.56 $ 3.99 |
RSU Activity | A summary of RSU activity during the six months ended June 30, 2023 is presented below: Number of RSUs Weighted-Average Outstanding (nonvested) at December 31, 2022 316,902 $ 16.58 Granted (1) 175,121 $ 24.80 Vested (101,700) $ 17.36 Forfeited (17,319) $ 19.40 Outstanding (nonvested) at June 30, 2023 373,004 $ 20.10 (1) The aggregate fair value of all RSUs granted during the six months ended June 30, 2023 was approximately $4.3 million. |
RSA Activity | A summary of RSA activity during the six months ended June 30, 2023 is presented below: Number of RSAs Weighted-Average Outstanding (nonvested) at December 31, 2022 159,562 $ 15.28 Granted (1) 80,402 $ 25.68 Vested (47,984) $ 15.68 Forfeited — $ — Outstanding (nonvested) at June 30, 2023 191,980 $ 19.53 (1) The aggregate fair value of all RSAs granted during the six months ended June 30, 2023 was approximately $2.1 million. |
PSU Activity | A summary of PSU activity during the six months ended June 30, 2023 is presented below: Number of PSUs Weighted-Average Weighted-Average Outstanding (nonvested) at December 31, 2022 300,871 8.63 $ 17.30 Granted (1) 318,386 $ 19.49 Vested — $ — Forfeited — $ — Outstanding (nonvested) at June 30, 2023 619,257 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. |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss per Share | Below are basic and diluted earnings per share for the periods indicated (in thousands, except for share data): Three Months Ended June 30, Six Months Ended June 30, 2023 2022 2023 2022 Net income for basic and diluted earnings per common share $ 15,422 $ 15,984 $ 27,184 $ 27,638 Shares: Weighted-average common shares outstanding – basic 36,001,670 38,257,156 36,239,997 38,309,295 Effect of dilutive securities: RSUs 122,030 111,918 131,335 86,988 Stock options 329,196 713,109 332,531 631,525 RSAs 52,046 45,064 61,626 35,500 PSUs 366,732 101,744 350,001 89,731 Weighted-average common shares outstanding – diluted 36,871,674 39,228,991 37,115,490 39,153,039 Earnings per common share – basic $ 0.43 $ 0.42 $ 0.75 $ 0.72 Earnings per common share – diluted $ 0.42 $ 0.41 $ 0.73 $ 0.71 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 6 Months Ended |
Jun. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Tax Provision (Benefit) | 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 Six Months Ended 2023 2022 2023 2022 Income before income taxes $ 22,091 $ 22,095 $ 38,739 $ 38,254 U.S statutory tax rate 21 % 21 % 21 % 21 % Income tax expense at statutory rate 4,639 4,640 8,135 8,033 State tax expense, net of federal benefit 1,741 1,369 3,055 2,353 Foreign tax rates different from U.S. statutory rate (5) 34 43 45 Non-deductible expenses 283 220 508 357 Stock compensation (67) (41) (274) (61) Other 78 (111) 88 (111) Total income tax provision $ 6,669 $ 6,111 $ 11,555 $ 10,616 |
BUSINESS AND ACCOUNTING POLIC_3
BUSINESS AND ACCOUNTING POLICIES (Details) | 6 Months Ended |
Jun. 30, 2023 store | |
Accounting Policies [Abstract] | |
Number of company owned stores | 124 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||||
Jun. 30, 2023 | Apr. 05, 2023 | Nov. 01, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Apr. 04, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | |||||||||
Adjustment to fair value of contingent consideration | $ (121,000) | $ 0 | |||||||
Receivable balance maintained | $ 123,700,000 | $ 123,700,000 | 123,700,000 | $ 129,808,000 | |||||
Goodwill | 53,487,000 | 53,487,000 | 53,487,000 | 49,774,000 | |||||
LAN Holdings | |||||||||
Business Acquisition [Line Items] | |||||||||
Receivable balance maintained | $ 2,500,000 | ||||||||
La Nacional | |||||||||
Business Acquisition [Line Items] | |||||||||
Percentage of outstanding common stock owned | 100% | ||||||||
Cash paid for acquisition | $ 39,700,000 | ||||||||
Additional contingent consideration liability (up to) | 2,400,000 | ||||||||
Fair value of contingent consideration | 1,200,000 | 1,200,000 | 1,200,000 | $ 1,300,000 | |||||
Adjustment to fair value of contingent consideration | 100,000 | 100,000 | |||||||
Consideration transferred | 41,021,000 | 41,021,000 | |||||||
Net identifiable assets acquired | 28,641,000 | 27,507,000 | 28,641,000 | 28,641,000 | |||||
Intangible assets | 8,450,000 | 8,450,000 | 8,450,000 | 8,450,000 | |||||
Goodwill | 12,380,000 | $ 13,514,000 | 12,380,000 | 12,380,000 | |||||
LAN Holdings | |||||||||
Business Acquisition [Line Items] | |||||||||
Percentage of outstanding common stock owned | 100% | ||||||||
Cash paid for acquisition | $ 10,300,000 | ||||||||
Fair value of contingent consideration | 600,000 | ||||||||
Consideration transferred | $ 13,400,000 | ||||||||
Net identifiable assets acquired | 8,500,000 | 8,500,000 | 8,500,000 | ||||||
Intangible assets | 3,200,000 | 3,200,000 | 3,200,000 | ||||||
Goodwill | $ 4,900,000 | 4,900,000 | 4,900,000 | ||||||
Pro forma revenue since acquisition date | 4,700,000 | 4,700,000 | |||||||
Pro forma net income since acquisition date | 28,500 | 28,500 | |||||||
Transaction costs from acquisition | $ 300,000 | $ 200,000 | $ 400,000 | $ 200,000 |
ACQUISITIONS - Summary of Estim
ACQUISITIONS - Summary of Estimated Fair Values of Consideration Paid and Net Assets Acquired (Details) - USD ($) $ in Thousands | 8 Months Ended | |||
Jun. 30, 2023 | Nov. 01, 2022 | Jun. 30, 2023 | Dec. 31, 2022 | |
Liabilities assumed: | ||||
Goodwill | $ 53,487 | $ 53,487 | $ 49,774 | |
Measurement Period Adjustments, Goodwill | (1,134) | |||
La Nacional | ||||
Assets acquired: | ||||
Cash and cash equivalents | 39,569 | $ 39,569 | 39,569 | |
Accounts receivable | 16,504 | 16,504 | 16,504 | |
Prepaid wires | 571 | 571 | 571 | |
Prepaid expenses and other current assets | 1,649 | 1,219 | 1,649 | |
Measurement Period Adjustments, Prepaid expenses and other current assets | 430 | |||
Property and Equipment | 4,077 | 4,077 | 4,077 | |
Intangible assets | 8,450 | 8,450 | 8,450 | |
Other assets | 13,659 | 13,659 | 13,659 | |
Total identifiable assets acquired | 84,479 | 84,049 | 84,479 | |
Measurement Period Adjustments, Total identifiable assets acquired | 430 | |||
Liabilities assumed: | ||||
Accounts payable | (1,260) | (1,260) | (1,260) | |
Wire transfers and money orders payable | (35,595) | (35,595) | (35,595) | |
Accrued and other liabilities | (3,285) | (3,651) | (3,285) | |
Measurement Period Adjustments, Accrued and other liabilities | 366 | |||
Lease liabilities | (13,067) | (13,067) | (13,067) | |
Deferred tax liability | (2,631) | (2,969) | (2,631) | |
Measurement Period Adjustments, Deferred tax liability | 338 | |||
Total liabilities assumed | (55,838) | (56,542) | (55,838) | |
Measurement Period Adjustments, Total liabilities assumed | 704 | |||
Net identifiable assets acquired | 28,641 | 27,507 | 28,641 | |
Measurement Period Adjustments, Net identifiable assets acquired | 1,134 | |||
Consideration transferred | 41,021 | 41,021 | ||
Goodwill | $ 12,380 | $ 13,514 | 12,380 | |
Measurement Period Adjustments, Goodwill | $ (1,134) |
ACQUISITIONS - Pro Forma Revenu
ACQUISITIONS - Pro Forma Revenue and Net Income (Details) - LAN Holdings - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Business Acquisition [Line Items] | ||||
Total revenues | $ 169,150 | $ 140,629 | $ 319,222 | $ 258,991 |
Net income | $ 15,814 | $ 16,079 | $ 27,698 | $ 27,827 |
REVENUES - Revenues from Contra
REVENUES - Revenues from Contract with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 169,150 | $ 136,935 | $ 314,514 | $ 251,600 |
Wire transfer and money order fees, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Wire transfer and money order fees | 145,252 | 118,788 | 270,259 | 217,191 |
Discounts and promotions | (734) | (1,166) | (1,291) | (1,570) |
Revenues | 144,518 | 117,622 | 268,968 | 215,621 |
Foreign exchange gain, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 22,382 | 18,195 | 41,550 | 33,868 |
Other income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 2,250 | $ 1,118 | $ 3,996 | $ 2,111 |
REVENUES - Narrative (Details)
REVENUES - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 USD ($) obligation | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) obligation point | Jun. 30, 2022 USD ($) | |
Revenue from Contract with Customer [Abstract] | ||||
Point earned for each wire transfer processed | point | 1 | |||
Point expiration period for non completion of wire transfer transaction | 180 days | |||
Point expiration period after end of program | 30 days | |||
Number of performance obligation | obligation | 1 | 1 | ||
Money order fees | $ | $ 0.5 | $ 0.4 | $ 1.1 | $ 0.8 |
ACCOUNTS RECEIVABLE AND AGENT_3
ACCOUNTS RECEIVABLE AND AGENT ADVANCES RECEIVABLE, NET OF ALLOWANCE - Accounts Receivable Outstanding Balance (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Accounts receivable | $ 126,248 | $ 132,363 |
Allowance for credit losses | (2,548) | (2,555) |
Accounts receivable, net | $ 123,700 | $ 129,808 |
ACCOUNTS RECEIVABLE AND AGENT_4
ACCOUNTS RECEIVABLE AND AGENT ADVANCES RECEIVABLE, NET OF ALLOWANCE - Notes Receivable, Net of Allowance for Credit Loss (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Agent advances receivable, current | $ 1,513 | $ 1,373 |
Allowance for credit losses | (79) | (62) |
Net current | 1,434 | 1,311 |
Agent advances receivable, long-term | 1,546 | 1,423 |
Allowance for credit losses | (63) | (31) |
Net long-term | $ 1,483 | $ 1,392 |
ACCOUNTS RECEIVABLE AND AGENT_5
ACCOUNTS RECEIVABLE AND AGENT ADVANCES RECEIVABLE, NET OF ALLOWANCE - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Notes collateralized | $ 3.1 | $ 2.8 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest rate on notes receivable | 0% | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest rate on notes receivable | 10.50% |
ACCOUNTS RECEIVABLE AND AGENT_6
ACCOUNTS RECEIVABLE AND AGENT ADVANCES RECEIVABLE, NET OF ALLOWANCE - Maturities of Notes Receivable (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Receivables [Abstract] | |
Under 1 year | $ 1,513 |
Between 1 and 2 years | 1,137 |
More than 2 years | 409 |
Total | $ 3,059 |
ACCOUNTS RECEIVABLE AND AGENT_7
ACCOUNTS RECEIVABLE AND AGENT ADVANCES RECEIVABLE, NET OF ALLOWANCE - Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 2,657 | $ 2,256 | $ 2,648 | $ 2,249 |
Provision | 1,155 | 1,056 | 1,940 | 1,498 |
Charge-offs | (1,426) | (970) | (2,434) | (1,502) |
Recoveries | 304 | 100 | 536 | 197 |
Ending Balance | $ 2,690 | $ 2,442 | $ 2,690 | $ 2,442 |
ACCOUNTS RECEIVABLE AND AGENT_8
ACCOUNTS RECEIVABLE AND AGENT ADVANCES RECEIVABLE, NET OF ALLOWANCE - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||||||
Accounts receivable | $ 2,548 | $ 2,555 | ||||
Agent advances receivable | 142 | 93 | ||||
Allowance for credit losses | $ 2,690 | $ 2,657 | $ 2,648 | $ 2,442 | $ 2,256 | $ 2,249 |
PREPAID EXPENSES AND OTHER AS_3
PREPAID EXPENSES AND OTHER ASSETS - Prepaid Expenses and Other Current Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets [Abstract] | ||
Prepaid insurance | $ 432 | $ 1,578 |
Prepaid fees and services | 2,029 | 1,986 |
Agent incentives advances | 1,094 | 1,014 |
Agent advances receivable, net of allowance | 1,434 | 1,311 |
Tenant allowance | 2,815 | 3,753 |
Prepaid income taxes | 3,430 | 2,130 |
Prepaid expenses and current assets - other | 1,086 | 977 |
Prepaid expenses and other assets | $ 12,320 | $ 12,749 |
PREPAID EXPENSES AND OTHER AS_4
PREPAID EXPENSES AND OTHER ASSETS - Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Prepaid Expense and Other Assets [Abstract] | ||
Revolving line origination fees | $ 1,997 | $ 1,578 |
Agent incentives advances | 2,063 | 1,062 |
Agent advances receivable, net of allowance | 1,483 | 1,392 |
Right-of-use assets, net | 24,446 | 24,768 |
Funds held by seized banking entities, net of allowance | 1,868 | 1,646 |
Other assets | 2,604 | 1,430 |
Other assets | $ 34,461 | $ 31,876 |
PREPAID EXPENSES AND OTHER AS_5
PREPAID EXPENSES AND OTHER ASSETS - Narrative (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash and cash equivalents | $ 147,372 | $ 149,493 | |
MEXICO | |||
Cash and cash equivalents | $ 5,200 | ||
Write off from financial institution closure | $ 3,600 |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Jun. 30, 2023 USD ($) | Jun. 30, 2023 USD ($) | |
Finite-Lived Intangible Assets, Net [Abstract] | ||
Goodwill and intangible asset impairment | $ 0 | $ 0 |
Agent Relationships | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Intangible assets amortization period, under accelerated method | 15 years | |
Trade Names | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Intangible assets amortization period, under accelerated method | 15 years | |
Developed Technology Rights | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Intangible assets amortization period, under accelerated method | 15 years | |
Number of development years for state-of-the-art system | 20 years | |
Other Intangible Assets | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Intangible asset, useful life | 10 years | 10 years |
Noncompete Agreements | ||
Finite-Lived Intangible Assets, Net [Abstract] | ||
Intangible asset, useful life | 5 years | 5 years |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Changes in Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 8 Months Ended |
Jun. 30, 2023 | Jun. 30, 2023 | |
Goodwill | ||
Beginning balance | $ 49,774 | |
Measurement period adjustment (Refer to Note 2) | $ (1,134) | |
Amortization expense | 0 | |
Ending balance | 53,487 | 53,487 |
Intangibles | ||
Beginning balance | 19,826 | |
Measurement period adjustment (Refer to Note 2) | 0 | |
Amortization expense | (2,404) | |
Ending balance | 20,622 | 20,622 |
LAN Holdings | ||
Goodwill | ||
Acquisition of LAN Holdings | 4,847 | |
Ending balance | 4,900 | $ 4,900 |
Intangibles | ||
Acquisition of LAN Holdings | $ 3,200 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Amortization Expense Related to Intangible Assets (Details) $ in Thousands | Jun. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 | $ 2,479 |
2024 | 3,965 |
2025 | 3,156 |
2026 | 2,521 |
2027 | 2,023 |
Thereafter | 6,478 |
Net amortizable intangible assets | $ 20,622 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
Tenant allowance | $ 2,815 | $ 3,753 |
Operating lease, weighted average remaining lease terms | 6 years 6 months | 6 years 7 months 6 days |
Operating lease, weighted average discount rate | 5.95% | 5.67% |
LEASES - Right-Of-Use Assets an
LEASES - Right-Of-Use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Right-of-use assets | $ 24,446 | $ 24,768 |
Current | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued and other liabilities | Accrued and other liabilities |
Operating | $ 5,341 | $ 5,258 |
Noncurrent | ||
Operating | 22,918 | 23,272 |
Total Lease liabilities | 28,259 | 28,530 |
Operating lease, right-of-use asset, accumulated amortization | $ 7,900 | $ 5,600 |
LEASES - Lease Cost (Details)
LEASES - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Leases [Abstract] | ||||
Operating lease cost | $ 2,010 | $ 530 | $ 4,074 | $ 999 |
LEASES - Lease Payments (Detail
LEASES - Lease Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2023 | $ 3,137 | |
2024 | 5,760 | |
2025 | 6,229 | |
2026 | 4,867 | |
2027 | 3,607 | |
Thereafter | 14,978 | |
Total lease payments | 38,578 | |
Less: Imputed interest | (10,319) | |
Present value of lease liabilities | $ 28,259 | $ 28,530 |
WIRE TRANSFERS AND MONEY ORDE_3
WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2023 | Dec. 31, 2022 | |
Wire transfers payable, net | $ 49,252 | $ 55,572 |
Customer voided wires payable | 27,860 | 27,236 |
Money orders payable | 29,159 | 29,443 |
Total wire transfers and money orders payable, net | $ 106,271 | $ 112,251 |
Wires payable collection period | 30 days | |
Minimum | ||
Statutory abandonment period | 3 years | |
Maximum | ||
Statutory abandonment period | 7 years |
ACCRUED AND OTHER LIABILITIES -
ACCRUED AND OTHER LIABILITIES - Accrued and Other Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Commissions payable to sending agents | $ 19,013 | $ 19,141 |
Accrued salaries and benefits | 4,024 | 5,578 |
Accrued bank charges | 1,922 | 1,644 |
Accrued other professional fees | 1,291 | 1,169 |
Accrued taxes | 1,579 | 1,329 |
Lease liabilities, current portion | 5,341 | 5,258 |
Contingent consideration liability | 1,800 | 1,321 |
Deferred revenue loyalty program | 4,393 | 4,212 |
Other | 2,596 | 2,203 |
Total accrued and other liabilities | $ 41,959 | $ 41,855 |
ACCRUED AND OTHER LIABILITIES_2
ACCRUED AND OTHER LIABILITIES - Changes in Deferred Revenue Loyalty Program Liability (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2023 USD ($) | |
Contract With Customer, Liability [Roll Forward] | |
Beginning balance | $ 4,212 |
Revenue deferred during the period | 1,493 |
Revenue recognized during the period | (1,312) |
Ending balance | $ 4,393 |
DEBT - Schedule of Debt Instrum
DEBT - Schedule of Debt Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 194,750 | $ 156,938 |
Less: Current portion of long-term debt | (6,069) | (4,975) |
Less: Debt origination costs | (1,480) | (1,728) |
Long-term debt, noncurrent | 187,201 | 150,235 |
Debt origination costs, current | 500 | 500 |
Term loan facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | 78,750 | 80,938 |
Revolving credit facility | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 116,000 | $ 76,000 |
DEBT - Narrative (Details)
DEBT - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | Apr. 18, 2023 | Apr. 17, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||||||
Debt origination costs amortization | $ 528 | $ 507 | |||||
A&R Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Unamortized debt origination costs | $ 3,500 | 3,500 | $ 3,300 | ||||
Debt origination costs amortization | 300 | $ 300 | $ 500 | $ 500 | |||
Consolidated leverage ratio | 3 | ||||||
Debt instrument, covenant, restricted payment threshold | $ 23,800 | $ 23,800 | |||||
Debt instrument, covenant, restricted payment threshold, percent of EBITDA | 25% | 25% | |||||
Debt instrument, covenant, repurchase of common stock threshold | $ 10,000 | $ 10,000 | |||||
A&R Credit Agreement | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Fixed charge coverage ratio | 1.25 | ||||||
A&R Credit Agreement | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Consolidated leverage ratio | 3.25 | ||||||
Leverage ratio, restricted payments | 2.25 | ||||||
A&R Credit Agreement | SOFR | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 0.10% | ||||||
A&R Credit Agreement | SOFR | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 2.50% | ||||||
A&R Credit Agreement | SOFR | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 3% | ||||||
A&R Credit Agreement | Base Rate | Minimum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 1.50% | ||||||
A&R Credit Agreement | Base Rate | Maximum | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate | 2% | ||||||
A&R Credit Agreement | Term loan facility | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 87,500 | $ 87,500 | |||||
Effective interest rate | 8.03% | 3.59% | 8.03% | 3.59% | |||
A&R Credit Agreement | Term loan facility | Year 1 | |||||||
Debt Instrument [Line Items] | |||||||
Periodic repayment percentage | 5% | 5% | |||||
A&R Credit Agreement | Term loan facility | Year 2 | |||||||
Debt Instrument [Line Items] | |||||||
Periodic repayment percentage | 5% | 5% | |||||
A&R Credit Agreement | Term loan facility | Year 3 | |||||||
Debt Instrument [Line Items] | |||||||
Periodic repayment percentage | 7.50% | 7.50% | |||||
A&R Credit Agreement | Term loan facility | Year 4 | |||||||
Debt Instrument [Line Items] | |||||||
Periodic repayment percentage | 10% | 10% | |||||
A&R Credit Agreement | Term loan facility | Year 5 | |||||||
Debt Instrument [Line Items] | |||||||
Periodic repayment percentage | 10% | 10% | |||||
Revolving credit facility | A&R Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 150,000 | $ 150,000 | $ 220,000 | $ 150,000 | |||
Unused line fee percentage | 0.35% | ||||||
Effective interest rate | 1.85% | 0.75% | 1.85% | 0.75% | |||
Uncommitted Incremental Facility | A&R Credit Agreement | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 70,000 | $ 70,000 | 70,000 | ||||
Unamortized debt origination costs | $ 700 |
SHARE-BASED COMPENSATION - Narr
SHARE-BASED COMPENSATION - Narrative (Details) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2023 USD ($) shares | Sep. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Jun. 30, 2023 USD ($) installment shares | Jun. 30, 2022 USD ($) | Jun. 26, 2020 shares | |
Stock options | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Stock options term | 10 years | |||||
Number of equal installments for options vesting | installment | 4 | |||||
Award vesting period | 1 year | |||||
Share-based compensation expense | $ 100,000 | $ 500,000 | $ 300,000 | $ 1,100,000 | ||
Unrecognized compensation expense | 300,000 | $ 300,000 | ||||
Weighted-average period for recognition | 10 months 24 days | |||||
Stock options | 2020 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized (in shares) | shares | 3,700,000 | |||||
Shares issued in period (in shares) | shares | 2,100,000 | |||||
Stock options | 2018 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for grant (in shares) | shares | 400,000 | |||||
RSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | 700,000 | 500,000 | $ 1,300,000 | 800,000 | ||
Unrecognized compensation expense | 6,700,000 | $ 6,700,000 | ||||
Weighted-average period for recognition | 1 year 10 months 24 days | |||||
Granted (in shares) | shares | 175,121 | |||||
RSUs | Employees | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of equal installments for options vesting | installment | 4 | |||||
Award vesting period | 1 year | |||||
RSUs | Independent Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 1 year | |||||
Share Awards | Independent Directors | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Fully vested (in shares) | $ 80,500 | |||||
Share Awards | 2020 Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Share-based compensation expense | $ 20,100 | $ 40,300 | ||||
Granted (in shares) | shares | 781 | 1,607 | ||||
RSAs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of equal installments for options vesting | installment | 4 | |||||
Award vesting period | 1 year | |||||
Share-based compensation expense | $ 400,000 | 200,000 | $ 600,000 | 300,000 | ||
Unrecognized compensation expense | 3,400,000 | $ 3,400,000 | ||||
Weighted-average period for recognition | 2 years | |||||
Granted (in shares) | shares | 80,402 | |||||
PSUs | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Share-based compensation expense | 1,000,000 | $ 500,000 | $ 1,800,000 | $ 700,000 | ||
Unrecognized compensation expense | $ 5,700,000 | $ 5,700,000 | ||||
Weighted-average period for recognition | 1 year 10 months 24 days | |||||
Granted (in shares) | shares | 318,386 | |||||
Award service period | 3 years | |||||
Catch-up adjustment to compensation expense | $ 1,100,000 | $ 0 |
SHARE-BASED COMPENSATION - Stoc
SHARE-BASED COMPENSATION - Stock Option Activity (Details) - Stock options | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 $ / shares shares | Dec. 31, 2022 $ / shares shares | |
Number of Options | ||
Outstanding, beginning balance (in shares) | shares | 711,050 | |
Granted (in shares) | shares | 0 | |
Exercised (in shares) | shares | (67,250) | |
Forfeited (in shares) | shares | (11,250) | |
Outstanding, ending balance (in shares) | shares | 632,550 | 711,050 |
Exercisable, ending balance (in shares) | shares | 531,300 | |
Weighted-Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ 11.56 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 12.22 | |
Forfeited (in dollars per share) | 14.07 | |
Outstanding, ending balance (in dollars per share) | 11.44 | $ 11.56 |
Exercisable, ending balance (in dollars per share) | $ 11.03 | |
Weighted-Average Remaining Contractual Term (Years) | ||
Weighted average remaining contractual term, outstanding | 5 years 8 months 23 days | 6 years 3 months 3 days |
Weighted average remaining contractual term, exercisable | 5 years 6 months 21 days | |
Weighted-Average Grant Date Fair Value | ||
Outstanding beginning balance (in dollars per share) | $ 4.28 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 4.96 | |
Forfeited (in dollars per share) | 6.54 | |
Outstanding ending balance (in dollars per share) | 4.17 | $ 4.28 |
Exercisable ending balance (in dollars per share) | $ 3.99 |
SHARE-BASED COMPENSATION - RSU,
SHARE-BASED COMPENSATION - RSU, RSA, and PSU Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2023 | Dec. 31, 2022 | |
RSUs | ||
Number | ||
Outstanding beginning balance (in dollar per share) | 316,902 | |
Granted (in shares) | 175,121 | |
Vested (in shares) | (101,700) | |
Forfeited (in shares) | (17,319) | |
Outstanding ending balance (in dollar per share) | 373,004 | 316,902 |
Weighted-Average Grant Price | ||
Nonvested at beginning of period (in dollars per share) | $ 16.58 | |
Granted (in dollars per share) | 24.80 | |
Vested (in dollars per share) | 17.36 | |
Forfeited (in dollars per share) | 19.40 | |
Nonvested at end of period (in dollars per share) | $ 20.10 | $ 16.58 |
Aggregate fair value of awards granted | $ 4.3 | |
RSAs | ||
Number | ||
Outstanding beginning balance (in dollar per share) | 159,562 | |
Granted (in shares) | 80,402 | |
Vested (in shares) | (47,984) | |
Forfeited (in shares) | 0 | |
Outstanding ending balance (in dollar per share) | 191,980 | 159,562 |
Weighted-Average Grant Price | ||
Nonvested at beginning of period (in dollars per share) | $ 15.28 | |
Granted (in dollars per share) | 25.68 | |
Vested (in dollars per share) | 15.68 | |
Forfeited (in dollars per share) | 0 | |
Nonvested at end of period (in dollars per share) | $ 19.53 | $ 15.28 |
Aggregate fair value of awards granted | $ 2.1 | |
PSUs | ||
Number | ||
Outstanding beginning balance (in dollar per share) | 300,871 | |
Granted (in shares) | 318,386 | |
Vested (in shares) | 0 | |
Forfeited (in shares) | 0 | |
Outstanding ending balance (in dollar per share) | 619,257 | 300,871 |
Weighted-Average Grant Price | ||
Nonvested at beginning of period (in dollars per share) | $ 17.30 | |
Granted (in dollars per share) | 19.49 | |
Vested (in dollars per share) | 0 | |
Forfeited (in dollars per share) | 0 | |
Nonvested at end of period (in dollars per share) | $ 18.43 | $ 17.30 |
Weighted-Average Remaining Contractual Term (Years) | 8 years 4 months 13 days | 8 years 7 months 17 days |
Aggregate fair value of awards granted | $ 6.2 |
EQUITY (Details)
EQUITY (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
May 05, 2023 USD ($) shares | Jun. 30, 2023 USD ($) shares | Jun. 30, 2022 USD ($) shares | Jun. 30, 2023 USD ($) shares | Jun. 30, 2022 USD ($) shares | Mar. 03, 2023 USD ($) | Aug. 31, 2021 USD ($) | |
Schedule of Capitalization [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 40,000 | ||||||
Treasury stock repurchased (in shares) | shares | 500,000 | 916,122 | 503,513 | 1,232,581 | 727,901 | ||
Value of treasury stock repurchased | $ 12,600 | $ 22,931 | $ 10,000 | $ 30,515 | $ 13,628 | ||
Stock repurchase program, remaining authorized repurchase amount | 90,700 | 90,700 | |||||
A&R Credit Agreement | |||||||
Schedule of Capitalization [Line Items] | |||||||
Stock repurchase program, authorized amount | $ 100,000 | ||||||
Debt instrument, covenant, restricted payment threshold | $ 23,800 | $ 23,800 | |||||
Debt instrument, covenant, restricted payment threshold, percent of EBITDA | 25% | 25% | |||||
Debt instrument, covenant, repurchase of common stock threshold | $ 10,000 | $ 10,000 | |||||
A&R Credit Agreement | Maximum | |||||||
Schedule of Capitalization [Line Items] | |||||||
Leverage ratio, restricted payments | 2.25 |
EARNINGS PER SHARE - Basic and
EARNINGS PER SHARE - Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Net income for basic and diluted earnings per common share | $ 15,422 | $ 15,984 | $ 27,184 | $ 27,638 |
Shares: | ||||
Weighted-average common shares outstanding - basic (in shares) | 36,001,670 | 38,257,156 | 36,239,997 | 38,309,295 |
Weighted-average common shares outstanding - diluted (in shares) | 36,871,674 | 39,228,991 | 37,115,490 | 39,153,039 |
Earnings per common share – basic (in dollars per share) | $ 0.43 | $ 0.42 | $ 0.75 | $ 0.72 |
Earnings per common share – diluted (in dollars per share) | $ 0.42 | $ 0.41 | $ 0.73 | $ 0.71 |
RSUs | ||||
Shares: | ||||
Effect of dilutive securities (in shares) | 122,030 | 111,918 | 131,335 | 86,988 |
RSAs | ||||
Shares: | ||||
Effect of dilutive securities (in shares) | 52,046 | 45,064 | 61,626 | 35,500 |
Stock options | ||||
Shares: | ||||
Effect of dilutive securities (in shares) | 329,196 | 713,109 | 332,531 | 631,525 |
PSUs | ||||
Shares: | ||||
Effect of dilutive securities (in shares) | 366,732 | 101,744 | 350,001 | 89,731 |
EARNINGS PER SHARE - Narrative
EARNINGS PER SHARE - Narrative (Details) - shares | 3 Months Ended | 6 Months Ended | |||
May 05, 2023 | Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Treasury stock repurchased (in shares) | 500,000 | 916,122 | 503,513 | 1,232,581 | 727,901 |
Decrease in weighted average shares outstanding (in shares) | 737,711 | 464,658 | |||
RSUs | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Securities excluded from computation of diluted loss per share (in shares) | 111,900 | 5,900 | |||
RSAs | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Securities excluded from computation of diluted loss per share (in shares) | 58,400 | ||||
Stock options | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Securities excluded from computation of diluted loss per share (in shares) | 76,300 | ||||
PSUs | |||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||
Securities excluded from computation of diluted loss per share (in shares) | 131,200 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2023 | Jun. 30, 2022 | Jun. 30, 2023 | Jun. 30, 2022 | |
Income Tax Disclosure [Abstract] | ||||
Income before income taxes | $ 22,091 | $ 22,095 | $ 38,739 | $ 38,254 |
U.S statutory tax rate | 21% | 21% | 21% | 21% |
Income tax expense at statutory rate | $ 4,639 | $ 4,640 | $ 8,135 | $ 8,033 |
State tax expense, net of federal benefit | 1,741 | 1,369 | 3,055 | 2,353 |
Foreign tax rates different from U.S. statutory rate | (5) | 34 | 43 | 45 |
Non-deductible expenses | 283 | 220 | 508 | 357 |
Stock compensation | (67) | (41) | (274) | (61) |
Other | 78 | (111) | 88 | (111) |
Total income tax provision | $ 6,669 | $ 6,111 | $ 11,555 | $ 10,616 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Jun. 30, 2023 country territory state |
Commitments and Contingencies Disclosure [Abstract] | |
Number of states in which entity operates | state | 50 |
Number of territories in which entity operates | territory | 2 |
Number of countries in which entity operates | country | 7 |