IMXI - Earnings call transcript Q2 2021 | International Money Express, Inc.

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Operator

Thank you for standing by. This is the conference operator. Welcome to the International Money Express Inc.

Second Quarter 2021 Earnings Conference Call.

As a reminder, all participants are in listen-only mode and the conference is being recorded. will opportunity there ask presentation, the be to an questions. After to I President conference would Instructions] turn of now Relations. Vice [Operator Gallentine, like the Mike over Investor to ahead. go Please

Mike Gallentine

call. including our XXXX and our welcome from Good differ results updated call expectations. morning, statements, quarterly guidance. everyone earnings forward-looking includes This may to materially Actual conference

therein. For to the the described or refer to as company's risk on filings company, Money the Inc., Express International information Intermex additional which refer including SEC we please factors

call our is Chief Revenue Chief Operating Chairman, today today's be and on to Chief slides Executive President, XX-K to should our certain These statements of this by is in financial for this required assumptions Information will the Presenting Exchange You report Securities Andras update Officer, press as on Nilsen, Financial X future reconciliation presentation in on call, earnings a our events. today. including and Act call except can on of Officer; on to conference predictions rely this statements with Bende. as obligation Form Slide Bob the Aguilar, for Chief the of applicable and website description the not Lisy; non-GAAP measures On appropriate forward-looking presentation obtained XX-Q Regulation GAAP our discuss at based information, refer certain as Also non-GAAP All be measures annual on our Officer. financial and We financial required of quarterly intermexonline.com. Joseph to Randy we our respect statements. Please call of and section and certain our included G forward-looking in the under beliefs release, such are forward-looking call, Form measure. no Officer non-GAAP law. by measures. on undertake Investors such

now over turn to call me Let the Bob.

Bob Lisy

results to we This prepared later And remarks. share answering and we quarterly some joining with to us our look have you exceptional for Good following today. forward you. thank morning, morning questions, your

detailed morning, Intermex recorded press financial saw that operating you of was and in release results. As our another quarter setting record remarkable issued this

increase some highlight increased prior was these period. prior over increase a of Slide the $XX the XX% to revenues million, million with year grew year compared with the Adjusted XX% prior period Adjusted income X. and year million $XX XX% $XXX year period. EBDA a Net prior net XX% to me with compared Let on of income the period. accomplishments million, compared $XX

of over billion of remarkable million, generated in second with we customers. a increase dollars This transferring $XX the number remittances while over $X.X XXXX. quarter a record Additionally, for transferred our XX% represents

of Lastly, continue Honduras, Salvador, share overall the grow than we we a our the Guatemala, the of in faster company's achieved as market XX% success Mexico, strategy. and These record El robust of very market. omni-channel markets core underscore high to results

paid digitally available that through than on cash. option. while and continuing service effectively those ATM ever this and for out before. focused expand prefer our our and consumers, We strategically to loaded best in deliver are more the with are business remittances mobile to to best wallet, wires that digital agents payout a over-the-counter We carefully expand network the meet retail are aggressively partnering those very We paid Whether industry. bank in the needs efficiently an consumer into quality the were on offer picked online do who accounts,

our than remittances more We digitally XX% the country. of to say are that receiving in settled proud are

by currently One ZIP our underserved. improving retail codes of to our our growth are in biggest that opportunities to maximize be or business unserved continues presence digital

once size new XXXX. Pursuant our in than of most added accessed agent Western to years. throughout opportunity, and that the the any over opportunity Although locations we could next more have fully retail than quarters our U.S. maximized last retail the QX several opportunities remittance growth states. many in the time several opportunities business over the in states, more these are even remain This double primarily established

with Guatemala, Our by retail focuses meeting exceptional markets. strategy and It marketplace. transactions our in emerging well in El core and growth omni-channel on and Salvador, markets our service consumer product is the of needs best the fueled as as online our across Mexico, Honduras,

Nicaragua also an to XX% we grow and in Slide also largest of see share. in the in many the two On at on QX of compared unlike in strong has among our significant the transactions in competitors, continue chart, XX% total remittances grew emerging remittances evident in XXXX. increase the the challenging to generated overall XXXX, total sold more XXXX, In led in market an height transactions to this This note in transactions in of the total to Please total multi-year many year good quarter In business. mind quarter. keep of pandemic XX% even million business and is transactions XX is and in our number the year ever remittance second as grow was in have by by and total, X, the as that can continue we're Ecuador market You market rate markets ability chart. last times. to growth our Transactions our both to growth quarter demonstrating transactions on slide. next increase quarter to Republic, and proud and represents of second seen both growth quarter illustrated than transactions company in one emerging grow as important illustrated of markets others emerging total second transactions. the our second Dominican of over markets It of such XX% XXXX. very faster throughout on our emerging emerging the is This

outsized numbers the offer market possible consumer overall above wire. and is consumer gain We We continue the driving a We growth rate all grow send share. our a options believe at to growth. this to well orientation

or using can debit card, a a wire using credit send cash online consumers card, or retail ACH. card by Our by at debit

receive Additionally, on in loaded at out consumers receiving on location. ATM bank paid money up the a a digitally accounts, convenient or into cash side, mobile an pick their wallet, can

are of available minutes. these all Importantly, funds in

consumer-based them. has Our a for in consumer omni-channel to investing cent This focused app offering. increase Intermex empowered time, is best in are the At same consumers focused our XX% Historically, choices, approach efficiently the over strategy that we led into on customer total cost to forcing years. of the providing last consumer a is our perspective. the three our expensive choose option dollar consumer options from digital not very acquisition growing

with of continued the On competitors, who define transactions the a the transaction we side. digital with slide, have prior on a was increasing next side processes were experience XX% the period. our initiated with side compared transaction the send definition settled of Based mobile digital than either where strong Intermex is app remittance more year its digitally growth These of our to some transactions of as as XX% to cashless. receive or on digitally. transactions remittances the

settle the wires, credit of are but to transactions online a outpace continue the retail confident year-over-year. cards. well network gain prior are omni-channel quarter growth expand In over-the-counter use both or XXX% second bank closing, market transactions of increased who compared During retailers to the processed strategy, debit combined model the our to year with we with we growing to These grow into Transactions card account, their appeal as as our acceptance number deposited directly unique best-in-class the placed small that digital at will are bank share. Intermex as at a transactions underlying along to debit the were retail XX% in the our continue overall through cash retail, into driven accept in accounts, debit percentage ability that digitally by position of the of period. and of

Our best-in-class at the continue retail to drive unique deliver and strong care, advantage to selection performance. agent will financial company customer process, technological

digit our remain advantage growth me continue turn degree for EBITDA as Andras to by that Over itself provide to Bende. revenue the and competitive us model the a high to future attractive let that, opportunities as our philosophy enables well net growth. our proven years, in over a predictability delivering call has sustainable This of double With returns. significant provide profitable Intermex. growth to reinvest drive to dedication will We and CFO, and additional confident to income

Andras Bende

Thanks, customers joined Bob, analysts, and investors the all today. good morning us that and to have

more through walk Turning second now in X, the let's results detail. Slide quarter to

the us over to of bottom was charges these of SG&A line a function front-end with versus thoughtful line and $XX net can amortization confident company, versus ago. a Bob for translates and for As in key in for year move line our a technology in consensus breaking however, well the it which in and banks growth, against a did amount past an remittance our growth favor, front baseline $XX of XX% prior were Pretty business period, The versus income XX% and but contributed to leadership by just in but comp XQ agents positive not again, most Salaries break negative records positions, with that $XXX.X was digital that's which the revenues single all dynamic versus expenses investment These result. over at growth industry, costs in to to depreciation, XQ our positioning across the million year year key were all especially which on comparative measures in quarter. lower broke in the quarter, is first an quarters In transactions. XX% very different was up the and our XXXX the XXXX. million, mentioned, great quarter are up, were prior $XX.X in plans. our up were the factors XXXX quarter and beyond. the year time Net $XXX which that a remittance driver, beating but increase record contributed half a revenue over success Service the and XX% quarter here. and expense X, from income of see prior the the up our are adjusted XX% $XX.X second than the customers, period, average was interest of million, was key rate, to XX% combination another up end. We're higher for continued our company and million, over transactions milestone for as you climb Page of million, million up we

and was one Adjusted quarters All the adjusted pandemic, as over XQ strongest of company. XX.X% height drove a during was growing quarter this really of the to from the years. XX% for margin seen aside company what XXXX were it's speaking million. has the the ultra-low Again, spend margin the we for against EBITDA the of comp we've where been $XX.X about EBITDA up

mention We coming especially expect to really, was a It's hair our to digital, under quarter the investments, worth us. a margin quarter, but in QX really healthy for just in on our margins that some normalize depending million XX%. successfully at lower our old XXX plus the company rates, XXX LIBOR leverage, at LIBOR $XX.X XXX plus we in facility refinanced at facility. from to loan significantly down

raise and we of expanded X, better between is million company million, With turn and to net we're between position to half million between our GAAP efforts, of put $XX We our only adjusted in will XXXX $XXX relationships great was in executing We're the great $XX million, questions. technology guidance. our adjusted to digital the million now and performance reason new revenue that, of expanded to The $XX and the rates, million. earnings million full on sheet. the in half $XXX time going XXXX. us our more. be let to Slide $XX a plans, going position addition a expect to won't of and and $XX grow. to million right grow $XX earnings facility In and $XXX $XX to keep to On accelerate an million. we banking income confidently EBITDA going back first revolving our income The excellent especially us where and business and for the be be even to had operator million strength from second the the just the net significantly gave I the year me the investment to more It are capitalize around guidance for balance dynamic credit sustained than call facility even

Operator

you. Thank

We The will David question-and-answer question the session. first Securities. Please begin from is Scharf from now [Operator go JMP Instructions] ahead.

David Scharf

inquire Good morning taking you. want and Thank two Bob, to I everyone for things about. my thanks questions.

income of a phenomenon the year. statement. of to The last first you've it that ripples transaction, And you, this it is think, impacts what as relates it margin. until that? may up positive FX it mean, principal the to insights And recently, into steep you but normal, do I XX%, and With obviously I you see has new normal a on margin emerge be more forward? a probably sort whether the know in I lot started therefore believe driving is something rise going have and, still hesitant late throughout implications volume to classify outlook been per new any

Bob Lisy

to biggest the it principal Well, biggest it's the biggest conservative we or where normal the really two normal XXXX, were, wanted where with and seen It's for be happening We've and of the makes clearly built gained went and that's new quarter for amounts, Mexico, FX – as this in particularly the we been more kind a because the It's to now. it's we really market. later one gain. than XXXX, difference. we closer to back plan

in really So speaking sustain We're strong the were we We relatively economy but weaker the also related think our are to is to a we've centers. we know are know border. conservative. of contributing it had people talking and there. factors in to seeing call relatively from south we've very this itself. that that And that a COVID U.S., it economy its that effects – seen We that the own from

harder continue than we We are by we be and border. of And of countries north have those a the COVID Mexico that hit employees to lot in Guatemala. know

their stronger I both think and here, south, more help economy So families. more in the are sending a combination troubled to money of it's able economy people be to

benefit our on They the stimulus it they've someone because stimulus. yard they're or that, getting the it that's certainly, in some manner. may be porch stimulus work because they're the been amount of helping relative every that that to books from stimulus and senders, our decide checks benefiting the of economy consumers government factors, that's creates a a checks. they're also may right Others secondary to documented, economic getting on bolstered and think checks or landscape People a back time that might for and getting a to actually are in whatever directly check. which put I deck put from the addition the money getting who's these greater it's in the been

our and the strong the economy and strong pandemic. think I been housing agriculture remain talked all the seen have in and even of biggest relatively construction, of through we've this, of – – really, as hardest to three So work service. starts about, two those strong. I mean consumers really through we've And days

certainly guidance normal. So you we're we're assuming a at this new and yet half, today number. when look not say ready our is to stronger the guidance, up it's in the But second in

our will, the that to has that of lot for promoting very, profitability, invested efficiently Now creating you technology, in if the into our very better part business. is digital of our getting like card other that related as promoting it also particularly A we're been as as to digital-related understand you and well for app, extra well have that devices, what as businesses from mobile business, a our to business. investing

very help and invested years. triples divisions, this being make efficiently ultimately us is the line more to principal vibrant bottom that So increased new the amount verticals in for to stronger new in coming us

David Scharf

very Got maybe one follow-up. That's And just it. helpful.

specifically prepared your past, you've quantity did agent the over alone agent emphasized side, in terms call and productivity the out other the were talk year remarks metric, front? isn't of for sense on quarter than you the you count always prior but Can the more is that in you this key three-month In And outlook footprint the any strongly more quality about period. where added the they on how added? of that what balance

Bob Lisy

a in more some But home as add adding working pull where we've the And our slower in the throughout heard market the them and the Well, too, share the our ability the still quarters work a in them force last little as you in of we we East. like lot based forborne market back factual we we from the it east. some and have from their the us they of in the opportunity on remarks, think East where country, versus slows been added and think sales West place my the number versus of had the to agents to and over the per we country. West retailers, remains is of phone pent-up agents whereas the just with have West forced and of But opportunity, throughout to down which have retailers. were still bit agent for that's new we number our we forborne – share many were year per right, there's greatest have

part a we're new throughout always agent lately, also make higher have, agents a the agents been have to retailers it's we continue a agents, at same-store then new like continuing. be adding been of the to big growth; see double-digit new want country. we basis, And are So that. productive the growth, on just grow adding which right? our So than that is that. least. to much to But And that's We'd same-store agents

that But an So adding the the can through out slumped we a component, because speed. they've because important some agents a backlog investing of increased think full even into we bit bit of that with day, in but every otherwise there's – West to And added. able above roll of people little doing extra now market could more we than one sustain in more volume always is would. to be the acquisition not a in we momentum XXXX us drive little more of to field, even drive we and to the that we're they're back in COVID be and had gave now kind been be the more we guidance agents, of of particularly in things folks even with to able even revenue the be agent have

David Scharf

Thank Got and congrats. you Great. it.

Bob Lisy

it. Appreciate you. Thank

Operator

question from Suisse. Chiodo Timothy ahead. Credit next The is go Please from

Timothy Chiodo

of and talk in their Maybe a discussing Thanks their I competitors, your of conferences, question. could remittance at wanted of Good the been calls with thanks some publicly morning terms for to partnership terms lot. in Visa of talk about taking earnings other a many on terms about in what of just method. you my has payout little bit providers.

mentioned offer to cetera, the about You et the industry? overall to broader talk you could already and you a potential many you that with Direct, customers. in to fits work where Visa your Send, really that Maybe Mastercard think

Bob Lisy

mean, it shuffle I I talked have a today what mean, lost Yes. and terms sometimes our looks business I gets we bit – of little in like. think about, we the in

our On is there's directly our into bank and be bank share cash, ATMs. share wallets, side, remittances are that accounts, to of them the can payouts directly payout which significant paid today, accounts, at now go that get go mobile some XX% accessed about number, some of a in of into there's a a

and we and as reader our our extending card they card were card able heard XXX% And agents access to have of you that been consumer retail at number send money believe, that might that a look in cards the the our that remarks, prepared guys, still in do but Relative a retail of retail, debit to us our to in I has in curve. of because the every about and talk border side, We side. continue plan of to we we've many a agents we receiving the credit And think we retail. the the of ahead retail on grown send. consumers first took side more prefer on So the to to prefer year-over-year, kind funds, both marketplace of debit and the want option cashless be that.

payout of the up side There's how being may a people – send. on of side. cash also sort the Now, a mismatch cashless on send still end

be side on here, there. that card Sometimes cash in it cash card side, by can on to a this

and that So with think involved consumer. grab the possible every what's been in We've important that. and we options, makes look and doing headlines certainly is we're to less option, We'll in if XXX Mastercard signing. to Visa and Fortune consumer less explore trying our sense really companies for offer likely

currencies You and with that saw it competitors and how well one affected well how one out their rug got financials. our how work with – of and when cyber working that how the of well pulled worked

XX% consumers our not big we're really numbers. do form, many why our as That's into grow. that big have that And looking of And really, options now trying best So the at to we to consumers to both share to you that's won't are things the from what's over we're because we a why continues that trying steal find market are things share our can dividends, substance. we're market XX% countries that for headlines what you No day very retailers. we're for America of out, best core way do money of is offer to continue But four day to on border. see sides is our the paying going best and of one has growing us and share the Latin Latin represent America. very kind for because do options else just many, that our and that in

Timothy Chiodo

Excellent. Thank you so much for questions. taking the

Bob Lisy

You’re welcome.

Operator

Northland Securities. ago ahead. Please last question from [Operator Mike Grondahl is Instructions] from The

Mike Grondahl

pipeline, the looks? is bit, and sales robust little on you Could helping to had stronger Hey agent years – the you contribute mentioned guys. the it And this been. little more was bit too? pipeline. little force, the backlog growth mentioned obviously a Congratulations that quarter. to larger And to like in it you Bob, sounds a And a that the in how the speak new about than bit several backlog

Bob Lisy

force. we to on larger a have have have Yes. but closer add, years, growing I But and backlog recently decision were making we it made we our to to heard locations, have. are We've for been those us – much mean, will try we open the full investing as the our ability I to much agent jobs. in sales you've retail represented a faster, don't expand population. positions we what some full but a our more at to need are in retail talk had the related that jobs the areas huge people particularly be think competitors, sales adding to know over We've new to employment focused than under that been we we've force it's mostly exclusively don't those where as talk want open areas, is know too do growing relative faster we're closer – today, it to the that sometimes and fill we you we salespeople West, I to the in about was

we we more at look give far directionally. general don't I'll the when forborne you So at per in have When states of East, it, share look sort population. we retailers the numbers, and the but we those

will, continue we'll So been a be for – huge retailers the the much of engage thing financial be, people, need very we focused West, the you retail have you And about which takes right, XX in going field if much opportunities in beat there's locations. we're are also have we And of we fill be it backlog into because growth to you we're really retail the continuing going in opportunity of it's got factor may geographies to our in plan that to backlog. the invest a we want but much to to be of we at a because quality until retailer, able more have support with guidance business. XX, do to the months list more of that right more have, up. actually how bald ramp time where those places or lot many you the if people people with In sort a XX add has but the quicker it we the people have, saying, have right? sales people, more think will able adding spots. think sign EBITDA been up. that XXXX that have And locations. in west. add how to to a when reps, while to to they're our XX a a It And takes on performance us be people But If we've us obviously penetrated that's extra and when to do retail where is to still more more that if resources, importantly, go original we rolling that a XXs; I particularly necessarily add mean many and ramp you that little up we doesn't fill you get retailers to momentum growth while some retailers, strong to our need always with exclusively then

to XXXX, dividends half So the in in pay of going these making investments XXXX. we second now we're feel really are big

about our a that typical year given in we've Additionally, their talked year. we've XXXX doubles retailers usually that retailer add we transactions in any next remember, added already the

new momentum swinging started half So we've second that of and even in our got in way year. retail emphasis on of that the terms the adding more it locations

Mike Grondahl

amount Got in dollar have quantified growth investments it. of That's the you roughly And great. XXXX?

Bob Lisy

retail have. that business is mean, the And and in recognize But have way going not we to several we we it, ways. guidance and cash building time what long our Yes, this the that is be out that's we're we a a deliver the done – net why we could, And the that to doing highest we for going be is business. we power would for higher. I business first EBITDA have. at share to if were have we're we but that, we don't income

side also talking a account the on And us a our includes about digital one the can people out it's of getting have We taking option heard border don't at of digital And when ATM recognize wallets Paint what' to or money digital for lot of that It the necessarily digital, or a the of building things. say be importance an other? our consumers. or retail. bank directly you why mobile we card

So, the transaction. and and conventional online traditional

of investments continued, in are growth, in we we really of in in company extend that field, mind; lot XXXX. actually and accelerated. second to to in a We grew high retail only Keep the right, has public quarter the that that are that put invest going the that continue and money

in So into we – both and growth lapped growth. for for the EBITDA XXXX revenue transactions well a that was strong I'm with XXs XXXX number a for both, number sorry,

for So revenue and we're sorry, growth. EBITDA

So we're also well because bottom all all as that drives us. we're in other for and then the to is us building own as card know that invest in the and these we online, enables core to then the online, investing in core enables invest it us but our digital which business, you feel growing business important the growing is line, options

years, consumers the money to sure be of today, need make of road and two shareholders send as make need to curve talking in. the and dimensional drive doing kind year, ahead of benefit the years that but decisions size it. XX business in balancing we receive five not most a we'll continue want the we that's to the how good in that, and to about they vibrant cash of our flow options that stay So with We're a have the years, we're profitability try able to to we think the down

Mike Grondahl

really or maybe just And growth it. Bob, Was that... or regions XX% geographies customer geography growth. there lastly, Got that surprised that stood any One XX% and the out two you? transaction

Bob Lisy

Yes.

share Mike, just attack that marketplace because signal know, you to don't the we As where us. a to it’s

generally, but to will has in say continue been that state. promising very growth share our country, – throughout every So and the just about and I very, we take really grow

the opportunities total is So the West have in and target close don't of problem the still their of a areas, a They're in the terms we in have both lot lot growth and to very and East. We in East. growth year-over-year. of

a retail right, and there. vacated a we people they feel of of we is think, We So its proving are have but think none still there lot still, surprising. of not lot very business only that people

Now consumers, deposing into things, by all our in why that's wallets Mexico product, these and card about we've we our Guatemala. we do and on continue – and we backs don't online a new accounts options own with our mobile to new need in turning these will to to taking retail because and that and leader all carter as invest a business those, but they talk

just the different that, than take those and faster we taking market much lot countries, folks a and grown because to both throughout we and have We from factor that's the in of the share are continue share, of its country.

Mike Grondahl

Great.

like it based. appreciate I guys. Sounds Thank you. broad

Bob Lisy

welcome. You're

Operator

to question-and-answer over remarks. Bob for conference turn I'd back like the concludes This to the session. closing any Lisy

Bob Lisy

all joining Thank us. for you

have we to you to are are call, on half We happy and second year. the a strong of looking forward the

soon. We to Thank you. you will talk

Operator

This concludes conference call. today's

your You may lines. have a day. participating pleasant disconnect for Thank you and

International Money Express (IMXI) 7 Aug 212021 Q2 Earnings call transcript