Exhibit 99.1
MoneyGram International Announces Third Quarter Results;
Money Transfer Volume Grows 35 percent
MINNEAPOLIS--(BUSINESS WIRE)--Oct. 28, 2004--
- ----------------------------------------------------------------------
($ in millions) Q3 Q3 %
2004 2003 Change
----------------------
Revenue $216.2 $188.0 14.9%
Commissions Expense 104.3 97.3 7.2
Net Revenue 111.9 90.8 23.4
Expenses 78.4 69.1 13.5
Income from Continuing Operations 24.5 18.5 32.6
Income from Discontinued Operations, net of tax - 6.3 NM
Net Income 24.5 24.8 -1.3
Earnings per share
Income from Continuing Operations $0.28 $0.22 27.3
Income from Discontinued Operations - $0.07 NM
Net Income $0.28 $0.29 -3.4
Operating Margin 15.5% 11.5% NM
- ----------------------------------------------------------------------
MoneyGram International, Inc. (NYSE:MGI), today announced third
quarter 2004 income from continuing operations of $24.5 million, or
$0.28 per share, up 33 percent from income from continuing operations
of $18.5 million, or $0.22 per share in the third quarter 2003.
Earnings per share from continuing operations of $0.28 in the third
quarter 2004 includes net securities gains and charges for capitalized
technology costs and intangibles assets, which in aggregate, netted to
$0.04 per share.
Net income for the third quarter 2004 was $24.5 million, or $0.28
per share, compared with $24.8 million, or $0.29 per share in the
third quarter 2003. In the third quarter 2003, net income included
discontinued operations related to Viad Corp of $6.3 million, or $0.07
per share.
Third quarter 2004 results reflect:
-- Strong performance of the Global Funds Transfer segment.
Segment revenue grew nearly 20 percent in the third quarter
2004, driven by 27 percent revenue growth of money transfer.
-- Net investment margin of 1.22 percent, computed as shown in
Table One. As expected, this was less than second quarter 2004
net investment margin of 1.39 percent primarily due to higher
short term interest rates mitigated by our hedging strategy.
-- Net securities gains of $10.9 million pre-tax ($6.8 million
after tax, which amounts to $0.08 per share). These net
securities gains resulted from the early pay off of a security
held in the investment portfolio, impairments of certain
securities, and realized losses from repositioning of the
portfolio.
-- A charge of $3.1 million pre-tax ($1.9 million after tax,
which amounts to $0.02 per share) for capitalized technology
costs related primarily to a discontinued development project
with Concorde EFS. The charge is included in transaction and
operations support expense.
-- A charge of $2.1 million pre-tax ($1.3 million after tax,
which amounts to $0.02 per share) for other intangible assets.
The charge is included in transaction and operations support
expense.
Philip Milne, president and chief executive officer said, "Money
transfer transaction volume increased 35 percent in the third quarter
and money transfer revenue increased 27 percent year over year
worldwide. Money transfer agents delivered strong performance as a
result of the company's point of sale technology, consumer value
pricing initiatives, and local currency conversions. Money transfer is
the company's growth driver and our developing agent base is becoming
increasingly productive. These agents are delivering the affordable,
reliable and convenient payment services consumers have come to expect
from MoneyGram."
Milne continued, "The money order business produced solid third
quarter results. Money orders continue to provide a great foundation
for the growth of our company. However, the official check and money
order businesses still exhibit the effects of a challenging interest
rate environment."
Segment Highlights
MoneyGram operates in two reportable business segments, Global
Funds Transfer and Payment Systems.
Global Funds Transfer
($ in millions)
Q3 Q3 %
2004 2003 Change
----------------------
Revenue $137.7 $114.9 19.8%
Commissions Expense 51.6 42.0 23.0
Net Revenue 86.1 72.9 18.0
Operating Income 27.4 24.5 12.0
Operating Margin 19.9% 21.3% NM
For the Global Funds Transfer segment, which consists of money
transfer (including urgent bill payment) and retail money orders,
third quarter revenue increased nearly 20 percent to $137.7 million
and operating income increased 12 percent to $27.4 million in the
third quarter 2004. Both revenue and operating income improved as a
result of money transfer revenue growth of 27 percent. Operating
income in the third quarter 2004 includes $2.2 million in net
securities gains and a $3.1 million charge for capitalized technology
costs. Operating margin in the third quarter 2004 was 19.9 percent
compared to 21.3 percent due to the shift in product mix from retail
money order to money transfer.
Money transfer transaction volume grew 35 percent compared to
third quarter 2003, reflecting 13 consecutive quarters of growth over
25 percent. The money transfer agent network grew 21 percent from the
third quarter of 2003 to over 74,000 agent locations. Money order
transaction volume was flat, despite a market trend of declining
paper-based payment instruments.
Payment Systems
($ in millions)
Q3 Q3 %
2004 2003 Change
--------------------
Revenue $78.5 $73.1 7.3%
Commissions Expense 52.7 55.3 -4.7
Net Revenue 25.8 17.8 44.5
Operating Income 9.4 3.7 158
Operating Margin 12.0% 5.0% NM
The Payment Systems segment includes PrimeLink/Official Check
outsourcing services, financial money orders and controlled
disbursement processing services. Payment Systems revenue increased
$5.3 million or 7 percent to $78.5 million in the third quarter 2004,
driven by a $6 million increase in net securities gains. Fee and other
revenue increased nearly 12 percent, however, this was offset by a
decline in investment revenue (excluding gains) due to lower average
invested funds. Operating income for the segment was $9.4 million in
the third quarter 2004 and includes $8.7 million of net securities
gains and a charge of $2.1 million related to intangible assets. The
operating margin increased to 12.0 percent primarily due to higher net
securities gains.
Outlook
MoneyGram International currently expects 2004 full year revenue
growth in the range of 10 percent to 12 percent. Income from
continuing operations per share is expected to be in the range of
$0.21 to $0.24 for the fourth quarter and $0.71 to $0.74 for the full
year 2004. The company expects fourth quarter 2004 income from
continuing operations to be lower in comparison to the 2003 fourth
quarter because last year's fourth quarter results included:
-- Higher net investment revenue. Net investment revenue
benefited in the fourth quarter 2003 from repositioning of the
portfolio and hedge rebalancing activities.
-- A pension curtailment gain of $3.8 million pre-tax included in
fourth quarter 2003 results.
Net investment margin for 2004 is expected to be in the range of
1.30 to 1.35 percent.
These estimates are dependent on a variety of factors including
interest rate levels and other factors. From time to time, events may
occur which can results in unanticipated gains or losses. Our outlook
does not reflect such events.
Presentation of 2004 Financial Statements
MoneyGram International, Inc. was spun off from Viad Corp 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."
MoneyGram results in 2004 include one-time debt tender and redemption
expenses of $20.7 million, which amounts to $0.22 per share, related
to the spin-off in the second quarter 2004. The historical results of
MoneyGram through June 30, 2004, include Viad Corp as discontinued
operations.
Description of Tables
Table One - Net Investment Revenue Analysis
Table Two - Consolidated Statements of Income
Table Three - Consolidated Balance Sheet
Table Four - Consolidated Statements of Changes in Stockholders'
Equity
Table Five - Consolidated Statements of Income (2003 Quarterly)
Table Six - Consolidated Statements of Income (2002 Quarterly)
Table Seven - Segment Information
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 third 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) 599-9795 in the U.S. or (617) 786-2905 internationally. The
participant passcode is 87025068. 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 November 4, 2004. The replay
of the call is available at (888) 286-8010 in the U.S., or (617)
801-6888 internationally, passcode 22643499. 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)
Third Quarter 2004 vs
2004 2003 2003
----------- ----------- ----------
Components of net investment
revenue:
Investment revenue $77,276 $76,783 $493
Investment commissions expense
(1) 56,712 59,408 (2,696)
------------------------------------
Net investment revenue $20,564 $17,375 $3,189
====================================
Average balances:
Cash equivalents and
Investments $6,714,587 $7,390,634 ($676,047)
Payment service obligations (2) 5,315,246 6,034,968 (719,722)
Average yields earned and rates
paid (3):
Investment yield 4.58% 4.12% 0.46%
Investment commission rate 4.24% 3.91% 0.33%
Net investment margin 1.22% 0.93% 0.29%
September Year to Date 2004 vs
2004 2003 2003
----------- ----------- ----------
Components of net investment
revenue:
Investment revenue $231,510 $245,439 $(13,929)
Investment commissions expense
(1) 160,164 179,136 (18,972)
------------------------------------
Net investment revenue $71,346 $66,303 $5,043
====================================
Average balances:
Cash equivalents and
Investments $6,729,216 $7,090,293 ($361,077)
Payment service obligations (2) 5,328,344 5,723,746 (395,402)
Average yields earned and rates
paid (3):
Investment yield 4.60% 4.63% -0.03%
Investment commission rate 4.02% 4.18% -0.16%
Net investment margin 1.42% 1.25% 0.17%
(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 include
the average balance of the sold receivables ($400 million and $428
million for the third quarter of 2004 and 2003, respectively, $408
million and $434 million for the first nine months of 2004 and 2003,
respectively) as these are not recorded on the consolidated balances
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 Nine months ended
September 30 September 30
2004 2003 2004 2003
--------- --------- --------- ---------
REVENUE:
Fee and other revenue $128,000 $108,067 $363,706 $307,958
Investment revenue 77,276 76,783 231,510 245,439
Securities gains and losses,
net 10,877 3,198 12,078 (6,001)
--------- --------- --------- ---------
Total revenue 216,153 188,048 607,294 547,396
Fee commissions expense 47,593 37,864 132,021 104,798
Investment commissions
expense 56,712 59,408 160,164 179,136
--------- --------- --------- ---------
Total commissions expense 104,305 97,272 292,185 283,934
--------- --------- --------- ---------
Net revenue 111,848 90,776 315,109 263,462
EXPENSES:
Compensation and benefits 29,320 28,499 95,709 83,098
Transaction and operations
support 33,383 26,030 89,069 76,712
Depreciation and
amortization 7,439 6,841 22,058 19,990
Occupancy, equipment and
supplies 7,012 5,894 22,727 19,230
Interest expense 1,234 1,882 4,361 7,877
Debt tender and redemption
costs - - 20,661 -
--------- --------- --------- ---------
Total expenses 78,388 69,146 254,585 206,907
--------- --------- --------- ---------
Income from continuing
operations before income
taxes 33,460 21,630 60,524 56,555
Income tax expense 8,945 3,142 17,365 5,220
--------- --------- --------- ---------
Income from continuing
operations 24,515 18,488 43,159 51,335
Income and gain from
discontinued operations, net
of tax - 6,348 21,282 36,400
--------- --------- --------- ---------
NET INCOME $24,515 $24,836 $64,441 $87,735
========= ========= ========= =========
Basic earnings per share
Income from continuing
operations $0.28 $0.22 $0.50 $0.59
Income from discontinued
operations, net of tax - 0.07 0.24 0.42
--------- --------- --------- ---------
Earnings per common share $0.28 $0.29 $0.74 $1.01
========= ========= ========= =========
Average outstanding common
shares 87,262 86,273 86,968 86,168
========= ========= ========= =========
Diluted income per share
Income from continuing
operations $0.28 $0.22 $0.50 $0.59
Income from discontinued
operations, net of tax - 0.07 0.24 0.42
--------- --------- --------- ---------
Earnings per common share $0.28 $0.29 $0.74 $1.01
========= ========= ========= =========
Average outstanding and
potentially dilutive common
shares 87,588 86,720 87,400 86,524
========= ========= ========= =========
TABLE THREE
MONEYGRAM INTERNATIONAL, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands, except share data) (Unaudited)
September 30 December 31
2004 2003
------------ ------------
ASSETS
Cash and cash equivalents $- $33,832
Cash and cash equivalents (substantially
restricted) 788,687 1,025,026
Receivables, net (substantially restricted) 844,956 755,734
Investments (substantially restricted) 6,279,016 6,013,757
Property and equipment 90,273 95,207
Intangible assets 16,355 18,818
Goodwill 395,526 395,526
Assets of discontinued operations - 641,724
Other assets 103,023 242,530
------------ ------------
Total assets $8,517,836 $9,222,154
============ ============
LIABILITIES
Payment service obligations $7,532,691 $7,421,481
Debt 150,000 201,351
Derivative financial instruments 77,307 174,588
Pension and other postretirement benefits 105,541 101,039
Preferred stock subject to mandatory
redemption - 6,733
Accounts payable and other liabilities 92,731 115,922
Liabilities of discontinued operations - 332,257
------------ ------------
Total liabilities 7,958,270 8,353,371
STOCKHOLDERS' EQUITY:
Common shares, $.01 par value: 250,000,000
shares authorized, 88,556,077 issued and
outstanding 886 149,610
Additional paid-in capital 75,360 218,783
Retained income 485,519 863,944
Unearned employee benefits and other (25,956) (35,442)
Accumulated other comprehensive income
(loss) 23,757 (35,208)
Treasury stock - (292,904)
------------ ------------
Total stockholders' equity 559,566 868,783
------------ ------------
Total liabilities and stockholders'
equity $8,517,836 $9,222,154
============ ============
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 (loss) - - (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)
Net income - - 24,515 -
Dividends on common and
preferred stock - - (899) -
Employee benefit plans - (4,709) - 6,454
Unrealized foreign currency
translation adjustment - - - -
Unrealized gain on available-
for-sale securities - - - -
Unrealized loss on derivative
financial instruments - - - -
Other, net - - - -
--------- ---------- --------- ---------
Balance, September 30, 2004 $886 $75,360 $485,519 $(25,956)
========= ========== ========= =========
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 - 5,474 3,654
Treasury shares acquired -
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 (loss) - - (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) 0 498,581
Net income - - 24,515
Dividends on common and preferred
stock - - (899)
Employee benefit plans - - 1,745
Unrealized foreign currency
translation adjustment 293 - 293
Unrealized gain on available-for-
sale securities 45,787 - 45,787
Unrealized loss on derivative
financial instruments (10,456) - (10,456)
Other, net - - -
------------- ---------- ---------
Balance, September 30, 2004 $23,757 $- $559,566
============= ========== =========
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)
2002
-------------------------------------------------
First Second Third Fourth Full
Quarter Quarter Quarter Quarter Year
--------- --------- --------- --------- ---------
Revenue:
Global Funds
Transfer $94,992 $103,621 $107,638 $106,702 $412,953
Payment Systems 70,609 71,867 78,463 73,798 294,737
-------------------------------------------------
165,601 175,488 186,101 180,500 707,690
Operating income:
Global Funds
Transfer 18,370 28,303 24,860 27,628 99,161
Payment Systems 6,421 5,270 7,873 2,094 21,658
-------------------------------------------------
24,791 33,573 32,733 29,722 120,819
Interest expense 3,930 3,846 4,101 3,335 15,212
Other unallocated
expenses 4,769 6,421 1,295 1,183 13,668
Minority interest
in earnings 464 998 1,832 1,958 5,252
-------------------------------------------------
Income from
continuing
operations before
income taxes $15,628 $22,308 $25,505 $23,246 $86,687
=================================================
Operating Margin:
Global Funds
Transfer 19.3% 27.3% 23.1% 25.9% 24.0%
Payment Systems 9.1% 7.3% 10.0% 2.8% 7.3%
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
-------------------------------------------------
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
Interest expense 3,230 2,765 1,882 1,980 9,857
Other unallocated
expenses 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
=================================================
Operating Margin:
Global Funds
Transfer 20.6% 21.7% 21.3% 22.4% 21.5%
Payment Systems -3.9% 8.3% 5.0% 10.9% 5.3%
2004
-----------------------------
First Second Third
Quarter Quarter Quarter
--------- --------- ---------
Revenue:
Global Funds
Transfer $120,969 $128,165 $137,688
Payment Systems 70,352 71,655 78,465
--------- --------- ---------
191,321 199,820 216,153
Operating income:
Global Funds
Transfer 20,978 24,777 27,393
Payment Systems 9,190 5,848 9,429
--------- --------- ---------
30,168 30,625 36,822
Debt tender and
redemption costs - 20,661 -
Interest expense 1,222 1,905 1,234
Other unallocated
expenses 4,899 5,042 2,128
--------- --------- ---------
Income from
continuing
operations before
income taxes $24,047 $3,017 $33,460
========= ========= =========
Operating Margin:
Global Funds
Transfer 17.3% 19.3% 19.9%
Payment Systems 13.1% 8.2% 12.0%
CONTACT: MoneyGram International, Inc., Minneapolis
Investor Relations:
Patricia D. Phillips, 952-591-3840
ir@moneygram.com