Exhibit 99.1
MoneyGram International Announces Fourth Quarter and Full Year 2004 Results and
Provides Guidance for 2005
MINNEAPOLIS--(BUSINESS WIRE)--Jan. 26, 2005--MoneyGram International, Inc.
(NYSE:MGI):
Money Transfer Volume Grows 38 percent in the Fourth Quarter and
36 percent for Full Year 2004
($ in millions) Q4 Q4 % Year Year %
2004 2003 Change 2004 2003 Change
Revenue $219.2 $189.8 15.5% $826.5 $737.2 12.1%
Commissions Expense 111.3 93.4 19.2% 403.5 377.3 6.9%
Net Revenue 107.9 96.4 11.9% 423.1 359.9 17.6%
Expenses 79.5 64.8 22.6% 334.0 271.7 22.9%
Income from Continuing
Operations $22.0 $24.4 -9.8% $65.1 $75.7 -13.9%
Income from Discontinued
Operations, net of tax 0 $1.8 NM $21.3 $38.2 -44.3%
Net Income $22.0 $26.2 -16.0% $86.4 $113.9 -24.1%
Earnings per share
Income from Continuing
Operations $0.25 $0.28 -10.0% $0.75 $0.87 -14.6%
Income from Discontinued
Operations 0 $0.02 NM $0.24 $0.44 -44.8%
Net Income $0.25 $0.30 -16.3% $0.99 $1.31 -24.8%
Operating Margin 13.0% 16.7% NM 10.8% 12.0% NM
MoneyGram International, Inc. (NYSE:MGI), today announced fourth quarter
income from continuing operations of $22.0 million, or $0.25 per diluted share,
compared to income from continuing operations of $24.4 million, or $0.28 per
share in fourth quarter 2003. The company had provided guidance for income from
continuing operations for fourth quarter 2004 in the range of $0.21 to $0.24.
Net income in the fourth quarter 2004 of $22.0 million, or $0.25 per
diluted share, compares to net income of $26.2 million, or $0.30 per share in
fourth quarter 2003. Significant items benefiting the fourth quarter 2003
include discontinued operations of Viad Corp and Game Financial of $1.8 million,
or $0.02 per share, and a pension curtailment gain of $3.8 million, which
amounts to $0.03 per share.
For full year 2004, income from continuing operations was $65.1 million, or
$0.75 per share, compared to income from continuing operations of $75.7 million,
or $0.87 per share in 2003. The company previously provided full year guidance
for income from continuing operations of $0.71 to $0.74. Significant items
affecting full year 2004, as previously disclosed, include a second quarter
spin-off related charge for debt tender and redemption expenses of $19.3 million
after tax which amounts to $0.22 per share, third quarter net securities gains
of $6.8 million after tax and write-offs of $3.2 million after tax, which
together amount to $0.04 per share.
Full year 2004 net income of $86.4 million, or $0.99 per share, compares to
net income of $113.9 million, or $1.31 per share in 2003. Net income for full
year includes income from discontinued operations, after tax, related to Game
Financial and Viad Corp of $0.24 per share in 2004 and $0.44 per share in 2003.
In addition, full year 2004 includes the charge for debt tender and redemption,
which amounts to $0.22 per share.
Philip Milne, president and chief executive officer said, "The year 2004
has been a great one for our company. In June, we successfully completed our
spin off from Viad Corp. The money transfer business produced strong results as
we continued to invest in the business. During 2004, money transfer transaction
volume increased 36 percent and money transfer revenue increased 28 percent. In
addition, market conditions stabilized for our PrimeLink/Official Check
business."
Milne added, "I want to thank all MoneyGram employees who are working
harder than ever to make our company one of the best payment services providers
in the industry. Their efforts, resourcefulness and determination to succeed
have produced great results in 2004. Their relentless focus makes it possible
for MoneyGram to provide affordable, reliable and convenient payment products to
our consumers and business partners."
Milne said, "In 2005 we plan to build our brand by increasing our spending
on marketing over 40 percent. We plan to enhance our infrastructure to support
new product and agent growth. The vast potential of the global remittance market
offers great opportunity. By making these investments now and over the next
several years, our goal is to create a sustainable platform for future revenue
and profitable growth of MoneyGram International."
Segment Highlights
MoneyGram operates in two reportable business segments, Global Funds
Transfer and Payment Systems.
Global Funds Transfer
($ in millions)
Full Full
Q4 Q4 % Year Year %
2004 2003 Change 2004 2003 Change
-----------------------------------------------
Revenue $145.2 $118.5 22.6% $532.1 $450.1 18.2%
Commissions Expense 55.9 44.3 26.3% 199.8 161.7 23.5%
Net Revenue 89.4 74.2 20.4% 332.2 288.4 15.2%
Operating Income $29.5 $26.5 11.1% $102.6 $96.8 6.0%
Operating Margin 20.3% 22.4% NM 19.3% 21.5% NM
For the Global Funds Transfer segment, which consists of money transfer
(including urgent bill payment) and retail money orders, fourth quarter revenue
increased 23 percent to $145.2 million over fourth quarter 2003 and operating
income increased over 11 percent to $29.5 million in the fourth quarter 2004.
Both revenue and operating income improved primarily as a result of growth in
the money transfer business. Fourth quarter 2004 operating margin was 20.3
percent compared to 22.4 percent in the fourth quarter 2003. The decline in
operating margin was due to the ongoing product mix shift from higher margin
retail money order to money transfer.
For the full year 2004, Global Funds Transfer segment revenue was $532.1
million and operating income was $102.6 million, up 18 percent and 6 percent,
respectively, from 2003. Both revenue and operating income improved primarily as
a result of growth in the money transfer business. Operating margin for the full
year 2004 was 19.3 percent in comparison to 2003 operating margin of 21.5
percent. The decline in operating margin was predominantly due to the ongoing
product mix shift from the higher margin retail money order to money transfer.
In the fourth quarter 2004, money transfer transaction volume grew 38
percent compared to fourth quarter 2003, representing 14 consecutive quarters of
growth over 25 percent. The money transfer agent network grew 22 percent from
63,000 in the fourth quarter 2003 to over 77,000 agent locations in the fourth
quarter 2004. Money order transaction volume was flat, despite the market trend
of declining paper-based payment instruments.
Payment Systems
($ in millions)
Full Full
Q4 Q4 % Year Year %
2004 2003 Change 2004 2003 Change
---------------------------------------------
Revenue $74.0 $71.4 3.7% $294.5 $287.1 2.6%
Commissions Expense 55.4 49.1 12.7% 203.7 215.6 -5.5%
Net Revenue 18.6 22.2 -16.3% 90.8 71.5 27.0%
Operating Income $2.7 $7.8 -65.4% $27.2 $15.1 79.6%
Operating Margin 3.6% 10.9% NM 9.2% 5.3% NM
The Payment Systems segment includes PrimeLink/Official Check outsourcing
services, financial money orders and controlled disbursement processing
services. Payment Systems revenue grew 4 percent to $74.0 million in the fourth
quarter 2004 compared to fourth quarter 2003. Operating income for the segment
was $2.7 million in the fourth quarter 2004, down from $7.8 million in the
fourth quarter 2003. Payment Systems operating margin was 3.6 percent in the
fourth quarter 2004, down from 10.9 percent in 2003. The decline in margin is
primarily due to higher commissions paid to financial institution customers,
which was only partially offset by lower swap costs.
For full year 2004, Payment Systems segment revenue was $294.5 million and
operating income was $27.2 million, up 3 percent and 80 percent compared to
2003. Operating margin for full year was 9.2 percent in comparison to 5.3
percent in 2003.
2005 Outlook
MoneyGram International offers first time guidance for full year 2005 as
follows:
-- Net revenue (total revenue less total commissions) is expected to be
in the range of $450 million to $475 million.
-- Net investment margin is expected to be in the range of 130 to 140
basis points. Portfolio balances are expected to average $6.5 billion
for the year, declining slightly from 2004 due to bank consolidation
and the company's efforts to focus more on fee-based business.
-- Income from continuing operations before taxes is expected to grow in
the range of 28 percent to 35 percent from the $89.0 million income
from continuing operations before taxes in 2004. As previously noted,
the $89.0 million includes debt tender and redemption costs of $20.7
million, third quarter net securities gains of $10.9 million and third
quarter write-offs of $5.2 million. Taking these items into account,
2004 income from continuing operations before tax is $104 million, and
the expected growth in income from continuing operations before taxes
for 2005 is in the range of 10 percent to 15 percent.
-- Earnings per share is expected to be in the range of $0.99 to $1.03,
which reflects an annual tax rate assumption of 25 percent.
Income from continuing operations before taxes of $104 million and net
investment margin are measures of performance that are not defined by generally
accepted accounting principles (GAAP). This information is provided solely to
assist an investor's understanding of the company's operations and should not be
construed as an alternative to the reported results determined in accordance
with GAAP.
These estimates are dependent on a variety of factors including interest
rate levels. From time to time, events may occur which can result in
unanticipated gains or losses. Our outlook does not reflect such events. In
addition, our outlook does not reflect the impact of Financial Accounting
Standards No. 123R, Share-Based Payment. This standard requires that all
share-based compensation awards be measured at fair value at the date of grant
and expensed over their vesting or service periods. FAS 123R is effective for
the company beginning in the third quarter 2005, however it can be adopted
earlier. While the company has not determined whether it will early adopt, the
estimated impact could be as much as $0.02 per share in 2005.
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."
The historical results of MoneyGram through June 30, 2004, include Viad
Corp as discontinued operations.
Index of Tables
Table One - Net Investment Revenue Analysis
Table Two - Consolidated Statements of Income
Table Three - Consolidated Statements of Income (2003 Quarterly)
Table Four - Consolidated Statements of Income (2002 Quarterly)
Table Five - Segment Information
Conference Call and Webcast
MoneyGram International will have a conference call today at 5:00 p.m. EST,
4:00 p.m. CST to discuss fourth quarter and full year results and guidance for
2005. 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) 299-7089 in the U.S. or (617) 801-9714 internationally. The participant
passcode is 89535394. 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
February 3, 2005. The replay of the call is available at (888) 286-8010 in the
U.S., or (617) 801-6888 internationally, passcode 23159420. 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 (m) our ability to comply with the requirements of
Sarbanes-Oxley Section 404 regarding the effectiveness of internal controls; and
(n) 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)
Fourth Quarter 2004 vs
2004 2003 2003
---- ---- ----
Components of net investment revenue:
Investment revenue $84,473 $77,661 $6,812
Investment commissions expense (1) 59,748 53,200 6,548
---------------------------------
Net investment revenue $24,725 $24,461 $264
=================================
Average balances:
Cash equivalents and Investments $6,900,848 $6,646,112 $254,736
Payment service obligations (2) 5,498,039 5,291,010 207,029
Average yields earned and rates paid
(3):
Investment yield 4.87% 4.64% 0.23%
Investment commission rate 4.32% 3.99% 0.33%
Net investment margin 1.43% 1.46% -0.03%
Year to Date 2004 vs
2004 2003 2003
---- ---- ----
Components of net investment revenue:
Investment revenue $315,983 $323,099 $(7,116)
Investment commissions expense (1) 219,912 232,336 (12,424)
---------------------------------
Net investment revenue $96,071 $90,763 $5,308
=================================
Average balances:
Cash equivalents and Investments $6,772,124 $6,979,247 ($207,123)
Payment service obligations (2) 5,370,768 5,615,562 (244,794)
Average yields earned and rates paid
(3):
Investment yield 4.67% 4.63% 0.04%
Investment commission rate 4.09% 4.14% -0.05%
Net investment margin 1.42% 1.30% 0.12%
(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 ($394 million and $411
million for the fourth quarter of 2004 and 2003, respectively, $405
million and $428 million for the full year 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 "Components 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 Year ended
December 31 December 31,
2004 2003 2004 2003
--------- --------- --------- ---------
REVENUE:
Fee and other revenue $137,234 $111,044 $500,940 $419,002
Investment revenue 84,473 77,661 315,983 323,099
Securities gains and losses,
net (2,471) 1,123 9,607 (4,878)
--------- --------- --------- ---------
Total revenue 219,236 189,828 826,530 737,223
Fee commissions expense 51,540 40,199 183,561 144,997
Investment commissions
expense 59,748 53,200 219,912 232,336
--------- --------- --------- ---------
Total commissions
expense 111,288 93,399 403,473 377,333
--------- --------- --------- ---------
Net revenue 107,948 96,429 423,057 359,890
EXPENSES:
Compensation and benefits 30,931 24,399 126,641 107,497
Transaction and operations
support 31,695 24,801 120,767 101,513
Depreciation and
amortization 7,509 7,305 29,567 27,295
Occupancy, equipment and
supplies 8,102 6,328 30,828 25,557
Interest expense 1,214 1,980 5,573 9,857
Debt tender and redemption
costs - - 20,661 -
--------- --------- --------- ---------
Total expenses 79,451 64,813 334,037 271,719
--------- --------- --------- ---------
Income from continuing
operations before income taxes 28,497 31,616 89,020 88,171
Income tax expense 6,526 7,265 23,891 12,485
--------- --------- --------- ---------
Income from continuing
operations 21,971 24,351 65,129 75,686
Income and gain from
discontinued operations, net
of tax - 1,816 21,283 38,216
--------- --------- --------- ---------
NET INCOME $21,971 $26,167 $86,412 $113,902
========= ========= ========= =========
Basic earnings per share
Income from continuing
operations $0.25 $0.28 $0.75 $0.87
Income from discontinued
operations, net of tax - 0.02 0.24 0.44
--------- --------- --------- ---------
Earnings per common share $0.25 $0.30 $0.99 $1.31
========= ========= ========= =========
Average outstanding common
shares 86,761 86,387 86,916 86,223
========= ========= ========= =========
Diluted income per share
Income from continuing
operations $0.25 $0.28 $0.75 $0.87
Income from discontinued
operations, net of tax - 0.02 0.24 0.44
--------- --------- --------- ---------
Earnings per common share $0.25 $0.30 $0.99 $1.31
========= ========= ========= =========
Average outstanding and
potentially dilutive common
shares 87,117 86,891 87,330 86,619
========= ========= ========= =========
TABLE THREE
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
======== ========= ========= ========= =========
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
======== ========= ========= ========= =========
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
======== ========= ========= ========= =========
TABLE FOUR
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
======== ======== ======== ======== =========
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
======== ======== ======== ======== =========
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
======== ======== ======== ======== =========
TABLE FIVE
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 Fourth Full
Quarter Quarter Quarter Quarter Year
------- ------- ------- ------- ----
Revenue:
Global Funds Transfer $120,969 $128,165 $137,688 $145,243 $532,065
Payment Systems 70,352 71,655 78,465 73,993 294,465
---------------------------------------------
191,321 199,820 216,153 219,236 826,530
Operating income:
Global Funds Transfer 20,978 24,777 27,393 29,458 102,606
Payment Systems 9,190 5,848 9,429 2,696 27,163
---------------------------------------------
30,168 30,625 36,822 32,154 129,769
Debt tender and
redemption costs - 20,661 - - 20,661
Interest expense 1,222 1,905 1,234 1,214 5,575
Other unallocated
expenses 4,899 5,042 2,129 2,443 14,513
---------------------------------------------
Income from continuing
operations before
income taxes $24,047 $3,017 $33,459 $28,497 $89,020
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Operating Margin:
Global Funds Transfer 17.3% 19.3% 19.9% 20.3% 19.3%
Payment Systems 13.1% 8.2% 12.0% 3.6% 9.2%
CONTACT: MoneyGram International, Inc., Minneapolis
Investor Relations:
Patricia D. Phillips, 952-591-3840
ir@moneygram.com