EXHIBIT 99.1
MoneyGram International Announces Second Quarter Results
MINNEAPOLIS--(BUSINESS WIRE)--July 29, 2004--MoneyGram
International, Inc. (NYSE:MGI), which spun-off from Viad Corp
(NYSE:VVI) on June 30, 2004, today announced second quarter 2004
financial results. Due to the relative significance of MoneyGram to
Viad, MoneyGram is considered the divesting entity and treated as the
accounting successor to Viad for financial reporting purposes.
Consequently, and in accordance with applicable accounting rules,
historical financial statements presented by MoneyGram reflect Viad as
a discontinued operation.
Second Quarter Highlights
-- Total revenue increased 6 percent to $199.8 million.
-- Fee and other revenue increased 19 percent to $122.1 million.
-- Global money transfer transaction volume increased 35 percent
and revenue increased over 25 percent.
-- Operating income from the Global Funds Transfer and Payment
Systems segments totaled $30.6 million, in line with guidance
previously provided by Viad.
Results of Operations
Net loss for the second quarter was $1.1 million, or $0.01 per
share, compared to net income of $40.9 million (includes $20.4 million
of discontinued operations), or $0.47 per share, in the second quarter
of 2003. Net loss for the second quarter 2004 includes the following:
-- $20.7 million pre-tax ($19.3 million after tax, which amounts
to $0.22 per share) of non-recurring debt tender and
redemption costs related to Viad's debt.
-- $497 thousand after tax, or nil per share, loss from
discontinued operations primarily for Viad Corp. This includes
$14.5 million after tax expenses related to the spin-off,
which amounts to $0.17 per share.
Second quarter revenue increased 6 percent to $199.8 million from
$187.7 million in the second quarter of 2003 and reflects growth of
fee revenue offset by lower investment revenue and securities gains.
The Global Funds Transfer segment contributed $128.2 million in
revenue, up 15 percent from $111.5 million in the prior year period.
Payment Systems revenue decreased 6 percent to $71.7 million, from
$76.2 million in the second quarter of 2003. Net revenue was $102.2
million in the second quarter 2004, an increase of 11 percent over the
prior year due to the growth in net fee revenue from the money
transfer business.
Total expenses in the second quarter 2004 were $99.2 million. In
connection with the spin-off, Viad retired a substantial majority of
its outstanding subordinated debentures and medium term notes and
redeemed its outstanding preferred stock. Consequently, total expense
includes $20.7 million of non-recurring debt tender and redemption
costs.
Loss from continuing operations was $570 thousand in the second
quarter 2004, compared to income of $20.5 million in the second
quarter 2003. Second quarter 2004 income from continuing operations
was negatively affected by the $19.3 million after tax debt tender and
redemption costs.
Philip Milne, president and chief executive officer said, "In the
second quarter, we continued our focus on providing affordable,
reliable and convenient payment services to our customers. Our global
money transfer business had another exceptional quarter with 35
percent transaction volume growth, which reflects strong performance
both domestically and internationally."
Segment Highlights
MoneyGram operates in two reportable business segments, Global
Funds Transfer and Payment Systems. Prior to the spin-off, Viad Corp
presented MoneyGram as the Payment Services segment.
Global Funds Transfer
($ in millions)
Q2 Q1 Q2
2004 2004 Change 2003 Change
------- ------- ------ ------- ------
Revenue $128.2 $121.0 5.9% $111.5 14.9%
Commissions Expense 48.1 44.2 8.8% 39.0 23.3%
Net Revenue 80.1 76.7 4.3% 72.5 10.4%
Operating Income 24.8 21.0 18.1% 24.2 2.5%
Operating Margin 19.3% 17.3% 21.7%
Global Funds Transfer, which includes global money transfer,
urgent bill payment and retail money orders, increased second quarter
revenue 15 percent over the prior year second quarter to $128.2
million. The money transfer agent network grew 19 percent from the
second quarter of 2003 to over 71,000 agents.
Payment Systems
($ in millions)
Q2 Q1 Q2
2004 2004 Change 2003 Change
------ ------ ------- ------ -------
Revenue $71.7 $70.4 1.9% $76.2 (6.0%)
Commissions Expense 49.5 46.0 7.6% 56.8 (12.8%)
Net Revenue 22.1 24.3 (9.0%) 19.4 13.9%
Operating Income 5.8 9.2 (36.4%) 6.3 (7.0%)
Operating Margin 8.2% 13.1% 8.3%
Payment Systems includes PrimeLink/Official Check outsourcing
services, financial money orders and controlled disbursement
processing services. In comparison to the prior year's second quarter,
revenue declined 6 percent to $71.7 million, reflecting lower average
invested funds.
Mr. Milne concluded, "We are very excited about our future as an
independent company. There are many opportunities in the expanding
global remittance market and our new independent status will enable us
to pursue these opportunities with a strong capital foundation and
clear focus."
Presentation of Historical Income Statements
Viad completed the spin-off of MoneyGram on June 30, 2004.
MoneyGram is considered the divesting entity and treated as the
accounting successor to Viad for financial reporting purposes in
accordance with the EITF No. 02-11, "Accounting for Reverse Spinoffs."
The unaudited income statements for the quarters and full year periods
in 2003 and 2002 in Tables Five and Six to this press release are
being provided to report the historical results of MoneyGram with the
historical results of operations of Viad in discontinued operations in
accordance with the provisions of SFAS No. 144, "Accounting for the
Impairment or Disposal of Long-Lived Assets."
Outlook
The company currently expects 2004 full year revenue growth in the
high single to low double digits. Income from continuing operations
per share is expected to be in the range of $0.44 to $0.48 for the
last half of the year and $0.65 to $0.69 for the full year. The full
year includes after-tax costs for the debt tender and redemption
costs, which amounts to $0.22 per share.
The estimates are dependent on a variety of factors including
interest rate levels and other factors. From time to time securities
may be called or similar events may occur which can result in
unanticipated gains or losses. Our outlook does not reflect these
events.
Conference Call and Webcast
MoneyGram International will have a conference call today at 9:00
a.m. EDT, 8:00 a.m. CDT to discuss second quarter results. Phil Milne,
Chief Executive Officer, and Dave Parrin, Chief Financial Officer,
will speak on the call. The conference call can be accessed by calling
(800) 901-5259 in the U.S. or (617) 786-4514 internationally. The
participant passcode is MoneyGram. The conference call will also be
webcast through the company's website at www.moneygram.com. A replay
of the conference call and webcast will be available one hour after
the call concludes through 5:00 p.m. on August 5, 2004. The replay of
the call is available at (888) 286-8010 in the U.S., or (617) 801-6888
internationally, passcode 70678100. The internet audio cast replay
will be available at www.moneygram.com.
About MoneyGram International, Inc.
MoneyGram International, Inc., is a leading global payment
services company and S&P MidCap 400 company. The company's major
products and services include global money transfer, money orders and
payment processing solutions for financial institutions and retail
customers. For more information, visit the company's website at
www.moneygram.com.
Cautionary Information Regarding Forward-Looking Statements
The statements contained in this press release regarding the
business of MoneyGram International, Inc. that are not historical
facts are forward-looking statements and are made under the Safe
Harbor provisions of the Private Securities Litigation Reform Act of
1995. These statements are based on management's current expectations
and are subject to uncertainty and changes in circumstances due to a
number of factors, including, but not limited to: (a) fluctuations in
interest rates that may materially adversely affect revenue derived
from investment of funds received from the sale of payment
instruments; (b) material changes in the market value of securities we
hold; (c) material changes in our need for and the availability of
liquid assets; (d) successful management of the credit and fraud risks
of retail agents, and the credit risk related to our investment
portfolio; (e) continued growth rates approximating recent levels for
consumer money transfer transactions and other payment product
markets; (f) renewal of material retail agent and financial
institution customer contracts, or loss of business from significant
agents or customers; (g) technological and competitive changes in the
payment services industry; (h) changes in laws, regulations or other
industry practices and standards which may require significant systems
redevelopment, reduce the market for or value of the company's
products or services or render products or services less profitable or
obsolete; (i) continued political stability in countries in which
MoneyGram has material agent relationships; (j) material lawsuits or
investigations; (k) catastrophic events that could materially
adversely impact operating facilities, communication systems and
technology of MoneyGram, its clearing banks or major customers, or
that may have a material adverse impact on current economic conditions
or levels of consumer spending; (l) material breach of security of any
of our systems; and (m) other factors more fully discussed in
MoneyGram's filings with the Securities and Exchange Commission.
Actual results may differ materially from historical and anticipated
results. These forward-looking statements speak only as of the date on
which such statements are made, and MoneyGram undertakes no obligation
to update such statements to reflect events or circumstances arising
after such date.
TABLE ONE
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
NET INVESTMENT REVENUE ANALYSIS
(In thousands) (Unaudited)
Second Quarter 2004 vs
2004 2003 2003
----------- ----------- ----------
Components of net investment
revenue:
Investment revenue $77,580 $82,017 $(4,437)
Investment commissions expense
(1) 53,706 60,802 (7,096)
----------- ----------- ----------
Net investment revenue $23,874 $21,215 $2,659
=========== =========== ==========
Average balances:
Cash equivalents and
Investments $6,888,115 $7,142,154 ($254,039)
Payment service obligations (2) 5,510,137 5,792,583 (282,446)
Average yields earned and rates
paid (3):
Investment yield 4.53% 4.61% -0.08%
Investment commission rate 3.92% 4.21% -0.29%
Net investment margin 1.39% 1.19% 0.20%
June Year to Date 2004 vs
2004 2003 2003
----------- ----------- ----------
Components of net investment
revenue:
Investment revenue $154,234 $168,655 $(14,421)
Investment commissions expense
(1) 103,451 119,728 (16,277)
----------- ----------- ----------
Net investment revenue $50,783 $48,927 $1,856
=========== =========== ==========
Average balances:
Cash equivalents and
Investments $6,736,531 $6,940,122 ($203,591)
Payment service obligations (2) 5,334,893 5,568,136 (233,243)
Average yields earned and rates
paid (3):
Investment yield 4.60% 4.90% -0.30%
Investment commission rate 3.90% 4.34% -0.44%
Net investment margin 1.52% 1.42% 0.10%
(1) Investment commissions expense reported includes payments made to
financial institution customers, costs associated with swaps and the
sale of receivables program.
(2) Commissions are paid to financial institution customers based upon
average outstanding balances generated by the sale of official checks
only. The average balance in the table reflects only the payment
service obligations for which commissions are paid and does not
include the average balance of the sold receivables ($407 million and
$433 million for the second quarter of 2004 and 2003, respectively,
$411 million and $437 million for the first six months of 2004 and
2003, respectively) as these are not recorded on the consolidated
balance sheets.
(3) Average yields/rates are calculated by dividing the applicable
amount shown in the "component of net interest revenue" section by the
applicable amount shown in the "Average balances" section divided by
the number of days in the period presented and multiplied by the
number of days in the year. The "Net investment margin" is calculated
by dividing "Net investment revenue" by the "Cash equivalents and
investments" average balance divided by the number of days in the
period presented and multiplied by the number of days in the year.
TABLE TWO
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except share and per share data) (Unaudited)
Three months ended Six months ended
June 30 June 30
2004 2003 2004 2003
--------- --------- --------- ---------
REVENUE:
Fee and other revenue $122,084 $102,828 $235,706 $199,891
Investment revenue 77,580 82,017 154,234 168,655
Securities gains and losses,
net 156 2,876 1,201 (9,199)
--------- --------- --------- ---------
Total revenue 199,820 187,721 391,141 359,347
Fee commissions expense 43,925 34,987 84,428 66,934
Investment commissions
expense 53,706 60,802 103,451 119,728
--------- --------- --------- ---------
Total commissions expense 97,631 95,789 187,879 186,662
--------- --------- --------- ---------
Net revenue 102,189 91,932 203,262 172,685
EXPENSES:
Compensation and benefits 33,644 26,533 66,389 54,599
Transaction and operations
support 27,447 25,296 55,687 50,682
Depreciation and
amortization 7,396 6,626 14,619 13,149
Occupancy, equipment and
supplies 8,119 6,962 15,715 13,335
Interest expense 1,905 2,765 3,127 5,995
Debt tender and redemption
costs 20,661 20,661
--------- --------- --------- ---------
Total expenses 99,172 68,182 176,198 137,760
--------- --------- --------- ---------
Income from continuing
operations before income
taxes 3,017 23,750 27,064 34,925
Income tax expense 3,587 3,293 8,420 2,078
--------- --------- --------- ---------
(Loss) income from continuing
operations (570) 20,457 18,644 32,847
(Loss) income and gain from
discontinued operations, net
of tax (497) 20,411 21,282 30,052
--------- --------- --------- ---------
NET (LOSS) INCOME $(1,067) $40,868 $39,926 $62,899
========= ========= ========= =========
Diluted income per share
(Loss) income from continuing
operations $(0.01) $0.24 $0.21 $0.38
(Loss) income from
discontinued operations, net
of tax - 0.23 0.25 0.34
--------- --------- --------- ---------
(Loss) earnings per common
share $(0.01) $0.47 $0.46 $0.72
========= ========= ========= =========
Average outstanding and
potentially dilutive common
shares 86,929 86,508 87,306 86,418
========= ========= ========= =========
Basic earnings per share
(Loss) income from continuing
operations $(0.01) $0.24 $0.21 $0.38
(Loss) income from
discontinued operations, net
of tax - 0.23 0.25 0.34
--------- --------- --------- ---------
(Loss) earnings per common
share $(0.01) $0.47 $0.46 $0.72
========= ========= ========= =========
Average outstanding common
shares 86,929 86,224 86,819 86,116
========= ========= ========= =========
TABLE THREE
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data) (Unaudited)
June 30, December 31,
2004 2003
------------ ------------
ASSETS
Cash and cash equivalents $- $33,832
Cash and cash equivalents (substantially
restricted) 1,028,814 1,025,026
Receivables, net (substantially restricted) 910,226 755,734
Investments (substantially restricted) 6,369,762 6,013,757
Property and equipment 91,254 95,207
Intangible assets 18,757 18,818
Goodwill 395,526 395,526
Net assets of discontinued operations - 343,931
Other assets 156,148 208,066
------------ ------------
Total assets $8,970,487 $8,889,897
============ ============
LIABILITIES
Payment service obligations $7,862,106 $7,421,481
Debt 150,000 201,351
Derivative financial instruments 82,996 174,588
Pension and other postretirement benefits 104,003 101,039
Preferred stock subject to mandatory
redemption - 6,733
Accounts payable and other liabilities 272,801 115,922
------------ ------------
Total liabilities 8,471,906 8,021,114
STOCKHOLDERS' EQUITY:
Common shares, $.01 par value:
250,000,000 shares authorized,
88,555,989 issued and outstanding 886 149,610
Additional paid-in capital 80,069 218,783
Retained income 461,903 863,944
Unearned employee benefits and other (32,410) (35,442)
Accumulated other comprehensive loss (11,867) (35,208)
Treasury stock - (292,904)
------------ ------------
Total stockholders' equity 498,581 868,783
------------ ------------
Total liabilities and stockholders'
equity $8,970,487 $8,889,897
============ ============
TABLE FOUR
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
(In thousands, except share data) (Unaudited)
Unearned
Employee
Common Additional Retained Benefits
Stock Capital Income and Other
--------- ---------- --------- ---------
Balance, December 31, 2003 $149,610 $218,783 $863,944 $(35,442)
Net income 40,993
Dividends on common and
preferred stock (7,807)
Employee benefit plans (4,635) 2,815
Treasury shares acquired
Unrealized foreign currency
translation adjustment
Unrealized gain on available-
for-sale securities
Unrealized loss on derivative
financial instruments
Other, net 48
--------- ---------- --------- ---------
Balance, March 31, 2004 149,610 214,148 897,178 (32,627)
Net income (1,067)
Dividends on common and
preferred stock (7,822)
Employee benefit plans 4,972 217
Unrealized foreign currency
translation adjustment
Unrealized gain on available-
for-sale securities
Unrealized loss on derivative
financial instruments
Other, net 170
Spin off from Viad Corp (148,724) (139,051) (426,556)
--------- ---------- --------- ---------
Balance, June 30, 2004 $886 $80,069 $461,903 $(32,410)
========= ========== ========= =========
Accumulated
Other
Comprehensive Common
(Loss) Stock in
Income Treasury Total
------------- ---------- ---------
Balance, December 31, 2003 $(35,208) $(292,904) $868,783
Net income 40,993
Dividends on common and preferred
stock (7,807)
Employee benefit plans (574) (2,394)
Treasury shares acquired 6,048 6,048
Unrealized foreign currency
translation adjustment (408) (408)
Unrealized gain on available-for-
sale securities 31,035 31,035
Unrealized loss on derivative
financial instruments (2,992) (2,992)
Other, net 48
------------- ---------- ---------
Balance, March 31, 2004 (7,573) (287,430) 933,306
Net income (1,067)
Dividends on common and preferred
stock (7,822)
Employee benefit plans (345) 4,844
Unrealized foreign currency
translation adjustment (172) (172)
Unrealized gain on available-for-
sale securities (76,570) (76,570)
Unrealized loss on derivative
financial instruments 72,448 72,448
Other, net 170
Spin off from Viad Corp - 287,775 (426,556)
------------- ---------- ---------
Balance, June 30, 2004 $(11,867) $- $498,581
============= ========== =========
TABLE FIVE
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except share and per share data) (Unaudited)
Year
Ended
1st 2nd 3rd 4th December
Quarter Quarter Quarter Quarter 31
2003 2003 2003 2003 2003
-------- --------- --------- --------- ---------
REVENUE:
Fee and other
revenue $97,063 $102,828 $108,067 $111,044 $419,002
Investment revenue 86,638 82,017 76,783 77,661 323,099
Securities gains
and losses, net (12,075) 2,876 3,198 1,123 (4,878)
-------- --------- --------- --------- ---------
Total revenue 171,626 187,721 188,048 189,828 737,223
Fee commissions
expense 31,947 34,987 37,864 40,199 144,997
Investment
commissions
expense 58,926 60,802 59,408 53,200 232,336
-------- --------- --------- --------- ---------
Total commissions
expense 90,873 95,789 97,272 93,399 377,333
-------- --------- --------- --------- ---------
Net revenue 80,753 91,932 90,776 96,429 359,890
EXPENSES:
Compensation and
benefits 28,066 26,533 28,499 24,399 107,497
Transaction and
operations support 25,386 25,296 26,030 24,801 101,513
Depreciation and
amortization 6,523 6,626 6,841 7,305 27,295
Occupancy,
equipment and
supplies 6,373 6,962 5,894 6,328 25,557
Interest expense 3,230 2,765 1,882 1,980 9,857
-------- --------- --------- --------- ---------
Total expenses 69,578 68,182 69,146 64,813 271,719
-------- --------- --------- --------- ---------
Income from
continuing
operations before
income taxes 11,175 23,750 21,630 31,616 88,171
Income tax (benefit)
expense (1,215) 3,293 3,142 7,265 12,485
-------- --------- --------- --------- ---------
Income from
continuing
operations 12,390 20,457 18,488 24,351 75,686
Income from
discontinued
operations, net of
tax 9,641 20,411 6,348 1,816 38,216
-------- --------- --------- --------- ---------
NET INCOME $22,031 $40,868 $24,836 $26,167 $113,902
======== ========= ========= ========= =========
Diluted income per
share
Income from
continuing
operations $0.14 $0.24 $0.22 $0.28 $0.87
Income from
discontinued
operations, net of
tax 0.11 0.23 0.07 0.02 0.44
-------- --------- --------- --------- ---------
Earnings per common
share $0.25 $0.47 $0.29 $0.30 $1.31
======== ========= ========= ========= =========
Average outstanding
and potentially
dilutive common
shares 86,326 86,508 86,720 86,891 86,619
======== ========= ========= ========= =========
Basic earnings per
share
Income from
continuing
operations $0.14 $0.24 $0.22 $0.28 $0.87
Income from
discontinued
operations, net of
tax 0.11 0.23 0.07 0.02 0.44
-------- --------- --------- --------- ---------
Earnings per common
share $0.25 $0.47 $0.29 $0.30 $1.31
======== ========= ========= ========= =========
Average outstanding
common shares 86,008 86,224 86,273 86,387 86,223
======== ========= ========= ========= =========
TABLE SIX
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands except share and per share data) (Unaudited)
Year
Ended
1st 2nd 3rd 4th December
Quarter Quarter Quarter Quarter 31
2002 2002 2002 2002 2002
-------- -------- -------- -------- ---------
REVENUE:
Fee and other revenue $83,060 $91,010 $94,320 $97,245 $365,635
Investment revenue 84,882 85,733 88,827 91,890 351,332
Securities gains and
losses, net (2,341) (1,255) 2,954 (8,635) (9,277)
-------- -------- -------- -------- ---------
Total revenue 165,601 175,488 186,101 180,500 707,690
Fee commissions
expense 25,856 29,484 30,510 32,418 118,268
Investment commissions
expense 55,607 58,088 62,541 63,916 240,152
-------- -------- -------- -------- ---------
Total commissions
expense 81,463 87,572 93,051 96,334 358,420
-------- -------- -------- -------- ---------
Net revenue 84,138 87,916 93,050 84,166 349,270
EXPENSES:
Compensation and
benefits 26,309 23,881 27,462 22,037 99,689
Transaction and
operations support 25,825 25,578 23,597 21,608 96,608
Depreciation and
amortization 6,514 6,191 6,497 6,692 25,894
Occupancy, equipment
and supplies 5,932 6,112 5,888 7,248 25,180
Interest expense 3,930 3,846 4,101 3,335 15,212
-------- -------- -------- -------- ---------
Total expenses 68,510 65,608 67,545 60,920 262,583
-------- -------- -------- -------- ---------
Income from continuing
operations before
income taxes 15,628 22,308 25,505 23,246 86,687
Income tax expense 352 3,290 4,502 3,779 11,923
-------- -------- -------- -------- ---------
Income from continuing
operations 15,276 19,018 21,003 19,467 74,764
(Loss) income from
discontinued
operations, net of tax (24,619) 10,697 11,254 (14,210) (16,878)
-------- -------- -------- -------- ---------
NET (LOSS) INCOME $(9,343) $29,715 $32,257 $5,257 $57,886
======== ======== ======== ======== =========
Diluted income per share
Income from continuing
operations $0.18 $0.22 $0.24 $0.23 $0.86
(Loss) income from
discontinued
operations, net of tax (0.29) 0.12 0.13 (0.17) (0.21)
-------- -------- -------- -------- ---------
(Loss) earnings per
common share $(0.11) $0.34 $0.37 $0.06 $0.65
======== ======== ======== ======== =========
Average outstanding and
potentially dilutive
common shares 86,095 87,672 86,616 86,068 86,716
======== ======== ======== ======== =========
Basic earnings per share
Income from continuing
operations $0.18 $0.22 $0.24 $0.23 $0.87
(Loss) income from
discontinued
operations, net of tax (0.29) 0.12 0.13 (0.17) (0.21)
-------- -------- -------- -------- ---------
(Loss) earnings per
common share $(0.11) $0.34 $0.37 $0.06 $0.66
======== ======== ======== ======== =========
Average outstanding
common shares 86,095 86,693 86,188 85,738 86,178
======== ======== ======== ======== =========
TABLE SEVEN
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
SEGMENT INFORMATION
(In thousands) (Unaudited)
2003
-------------------------------------------------
First Second Third Fourth Full
Quarter Quarter Quarter Quarter Year
--------- --------- --------- --------- ---------
Revenue:
Global Funds
Transfer $105,226 $111,500 $114,916 $118,466 $450,108
Payment Systems 66,400 76,221 73,132 71,362 287,115
-------------------------------------------------
Total revenue 171,626 187,721 188,048 189,828 737,223
Operating income:
Global Funds
Transfer 21,690 24,169 24,453 26,511 96,823
Payment Systems (2,611) 6,289 3,650 7,795 15,123
-------------------------------------------------
19,079 30,458 28,103 34,306 111,946
Corporate
activities:
Debt tender and
redemption costs
Interest expense 3,230 2,765 1,882 1,980 9,857
Other corporate
activities 4,674 3,943 4,591 710 13,918
-------------------------------------------------
Income from
continuing
operations before
income taxes $11,175 $23,750 $21,630 $31,616 $88,171
=================================================
2004
-------------------
First Second
Quarter Quarter
--------- ---------
Revenue:
Global Funds Transfer $120,969 $128,165
Payment Systems 70,352 71,655
-------------------
Total revenue 191,321 199,820
Operating income:
Global Funds Transfer 20,978 24,777
Payment Systems 9,190 5,848
-------------------
30,168 30,625
Corporate activities:
Debt tender and redemption costs 20,661
Interest expense 1,222 1,905
Other corporate activities 4,899 5,042
-------------------
Income from continuing operations before income
taxes $24,047 $3,017
===================
CONTACT: MoneyGram International, Inc., Minneapolis
Investor Relations:
Patricia D. Phillips, 952-591-3840
ir@moneygram.com