Earnings call transcript Q4 2022

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Operator

Good morning, and welcome to the International Money Express, Inc. Fourth Quarter and Full Year 2022 Earnings Conference Call. All participants will be in a listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. [Operator Instructions] Please note, this event is being recorded.

turn Investor over Relations. to Vice Mike like of President would the to conference Gallentine, I Please ahead. go

Mike Gallentine

Good morning, call and results I including would welcome XXXX may to our to our expectations. everyone quarterly differ remind materially that and today's guidance, includes from statements, like forward-looking actual earnings call.

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

of as All on on assumptions forward-looking this based beliefs statements are call and today.

rely our not statements certain predictions a should except undertakes forward-looking You on to required information, as such company of as of our refer no by Please Slide description update law. obligation forward-looking The future presentation events. statements. X to of for applicable

call, required discuss annual measures. financial Securities we non-GAAP intermexonline.com. under in the including measures financial non-GAAP section our presentation by be earnings XX-K, the Exchange obtained in G slides, conference our Act report the Form such to Information and and measures. can certain GAAP at our is On website measures for release appropriate non-GAAP Regulation of financial this press These on certain Investors of reconciliation included the

Chief is Randy Lisy; Nilsen, today's today Chief Revenue Andras America; our Officer. Executive on and President, Hunt, Chief Digital Acting Theodoro, Bob Chris are call Presenting Also on and Joseph Officer; and President-Latin Aguilar, Officer Officer, Financial call Chief Chairman, Bende. the Chief Marcelo Operating Officer;

me Let call the to now turn over Bob.

Bob Lisy

have is continues public transfer you omnichannel that another Intermex and year of industrious working us, Good to growing American proud grow. immigrants we behind for company. home loved interest yet their established in to the support number the Welcome rely U.S. remittance to back With and exceptional morning, your families Intermex Latin ones everyone. The fastest and to in market's thank hardworking on money performance Intermex. are of

value-added stands Intermex country. productive our chosen, state-of-the-art service agents, of by delivering a retailers partnership peers thousands With value-added network our across retail apart of and proprietary and from carefully for technology for a highly its our consumers the

customer-focused omnichannel the value unique shareholders. company sustained growth and Our long-term model and for business its drives

Looking the note. a finished high fourth another at quarter, strong on year we

interruption. We growth without delivered double-digit

we online QX. in growth in Additionally, XX% of digital produced transactions

our continue on a to adjusted up million, million, adjusted profitability. net XX%. We $XX and income efficiently we sustainable revenues for up with of XX% economics down Slide million, and XX%. of $XXX the $XX up focus develop of X million, offering generated unit of On $XX quarter, Net income EBITDA slightly;

year, $XX up of XX%; $XXX the of EBITDA adjusted up income XX% million, adjusted $XXX up revenues million, net XX%; and of XX%. net million, for of And million, income up $XX

day During single the we almost December with quarter, a record on also XX. transfers wire XXX,XXX set

send holidays. large money to to in customers Intermex to turn Christmas the numbers As home

the industry this supports and the the when and of trust We brand. absolutely have is our Intermex because customers senders partners us believe need our serve. arrive We important the place outperforming greatest we the Intermex remittances in we we the confidence to belief appreciate in role on hitch, recognize our without have focus retail business. of a their fundamentals

of through concentrate unique us to metrical online for partners of productive enabling above world-class retail sense, Our our that and our digital and transactions to capital-light our Driven record and provides technologies. profitable value significant digital retail makes historic by network in consistently people, as cash making create on operating expansion and that that growth investments scalable products been market. model well our expanding margins to based where the approach well at products We deliver efficient as It service growth growing make be unparalleled continues to and and our efficiencies we achieve has generate for new enable us track model, shareholders. innovative investments to perpetuate success.

fast including Mexico, by fourth markets On significantly increased our our market we compete XX market of Salvador and four has basis the throughout share to Latin Guatemala, where the El we increased American the quarter. XX%. during of growing In Honduras, Slide share year, X, the top points

X, these share markets a we monies the including La these Slide all markets. Subsequent in from sent XX% represent On of the to Nacional Republic, acquisition, Dominican region the U.S. the critical have five to XX

and Our capitalizing as U.S.-based superior the to Republic. our Dominican Nacional's adding strength retail U.S.-based market operations integration contributed Nacional’s a on brand La of to share more La locations

Nacional's number margins. working Since latter completing footprint a been the underperforming U.S. of operating the optimize stages and We're November, La agent have improve and we the formalizing locations. plan to of of portion efficiencies reduce in to the transaction in

the transition we with more the approach. one business Intermex consistent model As to

the with coming weeks and the for regulatory the Europe make acquisition, As the anticipate close we continue portion regulatory transaction the second the to quarter. of in We process. approval approval in progress to expect

optimistic the European more future. more the become serve as we growth in executive division. anticipation transaction, to for the business leader of An this European have about completing where with President begun an of search familiar As we the even have potential our

promising We Intermex with digital opportunity for believe a online the market both area. and at ripe it at is retail

a be are see larger remittance today, online the Aside is many opportunity retail, be which believe we a customers of banked to the from to than we times likely has great reasons. relating for European number to more digital. opportunity it

the have from underway. in efficiently throughout feel the We digital build digital of our growth believe consumer an getting we presence app. accelerate are U.S., Europe. and transportable is that increased benefiting EU acceptance forward online our we mobile is an we our can looking to We digital it a In business opportunity to

the our store last an of X.X app Our since have over several gone application X.X to rating has experience. from upgraded months we user

a strong profitably. and large Our American is asset digital equity driving community brand Latin transactions

basis is from our Currently are XX% digitally, the XXX points either quarter. year. all received X, increased a of transactions XX% Slide On or in digital fourth transactions last sent that

unit positive offering. our digital eye We a margins of economics to maintain continue and on close keep

has The best the customers app enabling success Intermex features exchange and suit speed of fee, been choice of combines use. mobile or a delivery app to prioritize ease their of rate to Our needs.

with retail, is customer as our by Importantly app supported service. our best-in-class mobile

Everything by have with foundation rock of created our large the competitive of we our a agents. advantage. ecosystem solid is U.S. part growth This gives retail we a true enabled in Intermex do strategic story

ward Intermex We presents replicate of a consumers. and both the an of chosen group in to What to significant value-add highly have their we business potential offer mode competitors. around partner have have created productive agents them and hard extensive because retail we to the that established is marketplace off with the

through to network performing profitable We agent our carefully chosen retail high additions. expand continue

best Our agent growth U.S. with to targeting growth of we foreign-born consumers. and includes generate the individuals. We recruiting from largest efforts organic expanding business population same-store Latin carefully our American recruiting our the by across and serve our retailers focus and existing opportunity the the geographies

Why live neighborhoods are selection we our focused opportunity and the where and agent the significant. in much on retailers is to base states, of where grow are much the care Western Eastern work. more the development top continue to consumers U.S. We that efforts in our the convenient notch great more of take

retail pay the conveniently per the the our these We business paid banks are often located consider and to Intermex profile, understand typical Most you need retail cultural can unbanked. or are with check and people customer. consumers always provide. cost that service either our effective not in do to often potential and and by fit remind not agent welcome same that network Traditional fully, convenience are growth cash

solution turn Andras apart over time-tested to agent a delivers that on our I over technology and sets the our and growth. well for call other offers and Intermex sustained and go us positions consumers to for success before our One Intermex works truly the numbers. It for update partners.

upgrades are nicely. initiated half that during the hardware and of second Software we progressing XXXX

quarter We during thousand the are Intermex retail XXXX. upgrades upgraded a to project and at and and new position experience products of AML will third improved rollout locations digital enhanced complete consumer for enterprise-wide of rapid and These of on capabilities. track card the

software to more have than of did their the will of Agents agents. money position choice. neighborhood Intermex simplify be even technology hardware before, our complete process and launched efficiently as further the and retail they They partner will we our often because solidifying able for transfers choose new our

enhanced We had fueled digital application. pace. XXXX. by agents it much be strength consumer, anticipating service experience. areas in of faster the will means leading service. at our best-in-class This continued given outstanding and will counter and an service online Intermex customer customer network improved growing XXXX continues and our For upgraded be our our retail an Both the sector to a performance exceptional grow and of

products best invest to smart We and as and industry. to technology the that financially and in continue will deliver continue metrically will the decisions make in people service sound we

Here’s the numbers. Andras to over go

Andras Bende

followed of some strong good guidance morning Thank for of in with review quarter management full highly context continues drive the growing XXXX we The provide Bob, fourth you, for results that efficient business competitive release. of and the for advantage by morning XXXX provided this and created we’ve press ourselves the operating combined I’ll everyone. year to our results. lines

and our shareholders we’re technologies company in growth that mentioned, innovative sustainable making that new the expect. products position have to Bob for people, scalable intelligent the As investments double-digit come

is digital of what strategy, profitable We offering. and best-in-class continue growing network rapidly our omni-channel retail to execute expanding productive ecosystem while our feel on agents, we a

business, retail during number transactions, app customer building our originated XX% a on unique $XX the year XX% increase of grew remittance fourth million active X, more acceptance in growth of was this record of These our Contributing than a the mobile continued. ago. strength as in an Slide to digitally customers remittances total quarter. transactions customers generated robust On the XX%

of fourth contribution double-digit reflect a through Nacional, results. thread and business numbers growth La quarter activity our two which in from runs our of core months is which the These

increase On Slide the fundamentals for $X transferred principle strength in billion business X, our XX% three-month period. total a the drove to of

amount increased principle total down at was The $XXX $XX remittance for year, full the quarter transaction. XX% billion. the X% average per to transferred For

only to the [ph] as lower was Intermex than trend by La average slightly, fueled core average business. the are amounts DR Nacional broader majority down business core Intermex’s an the trend of but the was transaction

Slide million. XX% up Full million revenue growth reaching year agent On revenue quarter. $XXX during and fourth was at contributed line the X, customer the $XXX to the top increase XX% year-over-year looking to in

banking manage retail we smart While efficiently and results, so partners agent payer to continue achieving consistently our win. incentives, structuring while these Intermex both fees and strong

online to match Additionally, stay of app pacing spend we’re our thoughtfully offerings ahead consumer around and acceptance. or

digital up year-on-year the quarter. with We’re growing successfully fourth efficiently transactions in and the business profitably over XX%

behavior positions us on support unit the products invest pulse it. when there new are well to economics tight services to Our digital and consumer in

fourth strong. the in On growth Slide core and was XX, it business was a quarter very good

$XX.X the at buyback However, Important interest expense GAAP million. Net XX%. slightly costs headwinds, higher a over $X to still on these about and that income million in was net our front. full this year due income $XX opportunistic deal EPS for million at positive related our up to finished mention the year by had X% down activity despite

share-based the slide, tax adjusted and On was Slide up XX, expenses, amortization benefits related XX%. net but million, were items, perspective, certain like excluding related the adjusted previous $XX intangibles, quarter, up like income compensation, over fourth the EPS intangibles XX% we from these an of for again, transaction on to

income full For year. was of the million, for $XX net increase the adjusted full XX% an year,

efficiencies strong On Slide for XX%. $XXX EBITDA from of rare management, over and year. the up Intermex revenue million is an $XX and for growth, the among it increased quarter growing over XX% part on was measures at to over million Both companies DNA XX% which operating to adjusted exceptional benefit focus cost XX, adjusted and EBITDA the

position million. Intermex the an XX, On year to is in cash. strong and company generator $XXX the million The almost ended Slide cash $XX and undrawn quarter operator an revolver of the sheet and turning efficient cash. and with balance fourth of

on the we total capacity and Had utilize it that which is closed on for $XXX peak about drawn revolver ended we since on revolver Thursday a would’ve we million, time. a undrawn. the at quarter weekends been example, had Our Saturday, of half

generated working year. the capital over removes generated remains for free which cyclicality Our $XX million net internal measure, strong cash with

quarter, the at shares average an XXX,XXX price fourth the as we buyback of $XX During see we for program just an of repurchased $XX.XX excellent under per opportunistic million and capital. use share,

XXXX third repurchased Board about million and and share quarter has XXXX XXXX. authorization of million. over $XX the the company and value we an additional our from Based Board success Including Intermex $XXX activity, program a significant the the of This inherent approved purchased million stock, to-date includes X $XX the shares in in the season management has the amounts recently for original directly for repurchases. shareholder million on

for On Slide XXXX. guidance XX, to turning

and guide full for the both quarter. year now will the current We

the to to net $XXX.X $XX.X Revenue of $XXX.X EBITDA the increase be XXXX, increase to an $XX million adjusted million $XXX to in For of expect range, income an XX%; XX% increase to following. XX%; to of million and we million, in an $XXX range, XX%. to XX% XX% of million the million

following. the in million X% of XX%. range, XX%; increase the of the quarter, range, and $XXX.X the million flat; increase to to X% For income decrease an $XX.X we be expect million to XX% million, a $XX.X $XX.X of EBITDA adjusted $XXX.X of to million to Net million $XX.X in Revenue to to an

we business, second positioned the In This U.S. closed strong account La year company guidance in another our to execute shareholders. for impact business as close of in the continue which takes international the that feel into summary, a the deliver quarter we and well quarter. Nacional, to fourth the expect and full

With questions. it operator that, over I’ll to the turn for

Operator

We [Operator session. Our the question first Northland begin with come Mike will now Securities. Grondahl Instructions] question-and-answer from will

go ahead. now may You

Mike Grondahl

Hey questions. guys. Two

one, can outlook in your little talk then embedded that and agent of bit for your on And pricing pricing just of is you seeing guidance? secondly, force trends any a XXXX about first the you’re The kind and what kind sales update growth.

Bob Lisy

first that of for first, part I’ll that Mike. I’ll part take it way, me of put take the the second let Yes. – that second

one small retail. two more of of terms and in maybe larger pricing, public quarter, the in by we relative particularly behavior at So or companies, price competitors have the companies the seen fourth to aggressive

haven’t gross We if or you our numbers, we have look of per margin. in our decline real not, would terms at had transaction any revenue

responded As usual, that we fashion. in broad to really haven’t

industry We’re small and and and strategically. years. many, see doing country. seen throughout it then around down been line, prices permanently. many kind you the that will go that to of others competitors, many The I’ve price very And of We’ve in join with times get is kind up come aggressive in years, the certain hold driving flurry end you’ll of regions kind the challenge because that of

some we’ve So seen of that.

our a FX fee in little as generally – towards remaining the small per stable. a relative look see XXXX, we stable that reduction down, and itself the revenue bit we we gain is coming As see to though

be a to where markets end see big aggressive will – the So like There very, be particularly in we don’t California. markets West, in very need degradation. markets we more aggressive,

We with there continue to see very aggressive behavior along the whole west coast.

a that, to call full on Randy sales capacity managers. again, chime but we Relative margins. I’ll more the our to respond we’ll so but and lowering And we’re strategically than our in, fashion to of of with gross district force, broad – sort we ask overall and will what in almost revenues

reviewed, we open. position yesterday, had think I we one

be doing are new to out We in of and we’re per nothing are people the bonds of executives, weighted going the which what district states, sales terms wires retail western adding managers, where a heavily per bonds. that rovers number call more adding but underrepresented people and in we towards addition to are foreign they’re locations because that’s agents strategically. foreign They’ll regional

we’ll against So be that. working

going. in talked really As many really XXXX impactful today times, in seeds themselves if add but you folks a be plant sort that? and the we’ve those in crop, of Randy, later will, that to up that’s year, beginning we – to and are will about manifest the as anything

Randy Nilsen

Yes. Hi, Mike.

productivity agents base, a little brought from at agents. last on realized terms and the have a like got mentioned things process agent look of caused over our really year, that the we we Just had to to And and we And specifically the the quickly of it base into the of quality back agents. that year. as bit rolling high half new course focus new of in that really software the we’re the away to our in us of take got we of Bob agent as that we out hardware the our thick

of wouldn’t want producing have that the I our bringing of bring all at get bringing the don’t software, some out not we the we’re And and may agents hopefully, of because throughout to we’re the agents investment. the is we’re if churn quality look our be churn. even agents plan network quality XXXX of you’ll we on on we lower if on. out number cost of taken course versus the higher be So surprised we agents return a at to simply hard of to of putting and equipment new see, going

Mike Grondahl

Thank guys. helpful you. That’s it. Got

Operator

David question come JMP. Next will with from Scharf

ahead. go now may You

David Scharf

taking Good my sales past, number. Mike’s morning wanted force and I know of kind for growth. an Hey, follow-up to years thanks. and count regarding on agent specifically from questions. agent shied providing question thanks Great, you’ve away I in

thinking in opportunity it one for productivity most You’ve agent tangible on about growth framework as seeds visualize that’s of a in embedded of more broadly the in guidance comments with agent that Bob. in in spoken provide per you footprint those various ways based about the embedded noted you your to refocusing Can But guidance the regions. you’re planting growth that’s us productivity? the on the is about kind for the or your of kind investors the

Bob Lisy

Yes.

a the drive base I we teens, agents is of in core the of with same-store for sales. it same-store that need sales agents could drive first of if of for instance. instance, middle piece We’ve think to the and got you

today, that’s provide it drive in there saying been has and then going Now times, to and I’m base. growth but the not it’s our highest

going get than are same-store you growth more always from to You’re new. from

second is year, their the which growth same-store. the new get in by agents You’ll from definition

up Randy be not as new agent certainly locations, then productive about agent locations what not is, and bring on not a talking much thing. – focus is is but there a great to our new was So so

retailer average averages Our XXX over well month. a transactions

calculate could many have. we from like per to number you number So how of our That is a retailers kind drive get to XXX well of over number month. we’d to back transactions a

shot of stage that XXX even kind of force new that the you’re down be that producing will that existing that and but you a rifle or mix approach. kind bringing from early means at wires, XXX brings and be beginning Now, bit, are driving or in mix the wires performance really that retailers of may only the XX

for instance that we’re know We take putting do We and We resources going we’ve our able or that many think let’s people like double are have to network had maybe the as to in to that. there we’re agent the could there seven though, or easily XX somewhere we the think as California. ground only there six or on past eight. selling, XX which be

looking So But at in productivity. we’re day, be to resources, we’re be Randy more driving to agents. the of going also end increasing said, the as going

number productivity So you remainder I it’s adds number the that from agents. the the we much number so have But XX% growth can or of come we will comes and in And we’re disclosing new of the the that of not haven’t we adds about same-store tell new of new them. targeting. been the terms add our really growth from of of

David Scharf

some that past just granularity Understood. to organic… actually had you over in into Got they that years agents five I broke maybe that into three trajectories. five, And I were healthy visually, that three, think it, window growth and more percentage one much got years provides a how kind old Any to your of different of of it. the slides to out kind used know have given

Bob Lisy

look Yes, I that. take a understand. at we’ll And

great data, challenge and overshared a lot other and and that companies we look of against public of and it may they’re made are a have us to the public we part for that is, compete competitors. of and companies sharing think at what lot access really is I a our then sometimes we’re not be target

possibly market possibly can, that we as walk. So and to we that’s want that give much we little give to as we as fine can right? we don’t the our want as competitors So overshare, line

David Scharf

buyback cash based curious based goes coming that $XX how regarding into that of follow-up what you’re little to of periods agreements? of based flow a Understood. is it of the your is loan analysis million as restricted it certain or figure covenant I’m on that Just such just on over multiple net Hey, Is one income million? the internal formidable on much million $XXX a how versus figure $XXX with time? allowed color on up or Absolutely. precisely figure. Is buyback formula derived? percentage kind a free $XXX million

Andras Bende

use much. plan, allocation, in I’d the we’ve that good buybacks capital number a said, having you Yes, the if I that like the change the it if I and then hey, how the makes think opportunity kind go to allocation is we don’t of under, proven formidable to a did program at David, Andras. to the we’re a guess, short-term this sense. $XXX have of, buying and say, of we been we wanted think an million think But increase us that, we buyback we as gave capital re-look flexibility

the think the if allowed allocation run program allowed that we point to while wanted wanted also a I a latitude the number company. and with capital So to us for for rethink the we for current is

David Scharf

you. Thank Understood. Great.

Operator

KeyBanc Markets. will Capital Markgraff Our with from next come Alex question

You may go now ahead.

Alex Markgraff

question. for my actually I taking everyone. couple. Thanks Hey, had a

amount. First Intermex what’s in the send between principal curious principal bit to embedded of amounts? XXXX La more and around guess just a appreciate in guide, breakout kind detail I as the core your Nacional. I assumptions just on the just send maybe

Andras Bende

say Yes, relatively I – we’re planning the flat. say, would for would I

was right So for send in amounts you just and we we La those relatively be for And flat. $XXX where send well, tell around the million. plan the $XXX Intermex I’ll The ended to Intermex fourth was million quarter. Nacional average –

going you be not so in sequentially, compare when relatively the to flat year. flat it’s quarter-to-quarter Now, not – it’s it’s

could about geographies because are for help amounts going are on planning Mexico we’re thing not increasing. most us in bit, but Mexico’s general, to good so that not send a bit, flat. – actually The So bank is that we’re growing little a

Alex Markgraff

then one Okay, the detail appreciate And there. I around the guidance. thanks. more just

basis and the think of If you margin adjusted it’s maybe revenue and implied the consider XXX points XXXX. from EBITDA of midpoint compression there, I

Just margin curious, commentary of expansion… a of La of assume kind Any lot in sort terms to that’s Nacional. of I related organic

Andras Bende

That’s… Yes.

Alex Markgraff

Go ahead.

Andras Bende

$XX this to I got revenue get the question business, Nacional I our the European take to XX% K. in for EBITDA little got million Alex. of to $X.X it’s And we’ll four And which that million. and fully time, we previous think the we’ve of then U.S. which in three K know you about the – same to for for of mentioned and once back, in address that and we’re a think quarters million the net see Within in say La had that $X going year, the integrated, in call expect business that about to income we’ve number it K, EBITDA guide here. is I so about bit better previously, you’ll is we revenue, to $XX update X% and million, that’s the released quarters that revenue then in our going about $XX million, and going business margins it

going get us but I started. it to work optimistic think to it’s a while there, and for to take little we’re So excited up

Alex Markgraff

Okay. was That’s my great. Yes, follow-up. that

that some or integration. of conservatism to some that going the as there potential point like the revisions of some kind provided kind of clarify Is today optimize last around a the fair sounds on. guide So that’s It you on just is, you summary? optimization that to within

Andras Bende

Yes, that’s fair.

Bob Lisy

the to Nacional is of We knew that’ll then Bob. Yes, and If future, that business had a I what in things future. the U.S. think of the potential clear I it invested the in that it things to what we want that lot saw we goes the that minds this is a exactly being – were that a sized. in expected. but along we were we how were upside had think their consistent integration was that have make be I necessarily in great were with probably had certainly happen. – not thought with It right La business lot for faster,

of revenue of So we’ve the year-over-year. started see you’ll expenses cut and already even some some to affect those that

the for will revenue EBITDA but over time up. So way could down come go U.S. the the year-over-year, business

but the trump over. when money, that, we that haven’t European In a bigger which to to the us the European making has card, an and business the in I to with money small mean, a online much take opportunity, understand really amount then I grow business, everything U.S. have from is times today, many solid And about, provides business opportunity we is that’s than addition in but the talked the this we business want opportunity of

be Our that core more the are driving or big might get would are other the we business as digital much where is force with two the factors. money as ones the the be due strength online to countries. of their percentage countries business U.S. the in greater receiving oriented. when it One, in countries is not a And from there’s destinations are But more retail Europe, digitally. that U.S.

lot a there’s undocumented. there themselves Europe, less in might secondly, then find folks And that

on of much a are accounts. with that paid have payroll paid bank and their folks percentage they are So greater

the they candidates so side. for And digital become

things opportunities in the about saw, that in La many unrefined and excited fall much time. over terms business. all Nacional creating we’re will with piece then and online So investment La There’s the in Nacional facets other right the in today Europe of stages. these that. and of the sizing what were is see that There acquisition the you and we And it’s of to very kind

Alex Markgraff

the Thank Great. both Appreciate you all it. commentary. for

Operator

Our next Instructions] question [Operator will come Suisse. from with Young Credit Chris

now may You ahead. go

Chris Young

revenue locations, you opportunities could as lower or the reasons? commission the contribution also and just probably if agent of and also great to and the some of now the the Latin because wanted some Latin you for America of question desire? Europe. our La bring the color margin versus the XXXX to contribution taking And America agent from margins profile the and legacy what and I Nacional then that the little for will structurally of they’re Thanks both appreciate at contracts Nacional’s down on being, just there level are but right Hi. the from – margin to Latin in dig the profile, you which in including just in the right Nacional the La understand a La are lower break mentioned wanted the then America is business margins to Europe more optimizing the the

Bob Lisy

Okay.

margins. So was pretty me, every of those I’ll But asked one piece, first questions. the hopefully you let remember extensive. about That on

Dominican Nacional, country business the the La Republic, is sent where money is a So is which U.S. U.S. most piece to by driven of in their dollars.

rate there any doesn’t made very there the and is exchange little. – are not profit So

Some currency. of in it goes local

a as or And even profitable outbound, Dominican Guatemala. as U.S. throughout sure so market as the not Mexico for the market is

to you’re So going margins smaller there. see

other until any lower much with the is piece revenue. has still business that would all a overhead right sized of the is it’s The business have

And Were SG&A And what it making so making you Go making sized of that cost, something? doing makes. part that right it right. saying sure that’s ahead. sure size. of sort terms in and of in that we’re it’s And right

questions. – What that lot to help a has was other So next the do it. was the me question? What your with with

Chris Young

of growing sized, of versus revenue big portion Republic what the And how there kind you you think run I kind the was portion? again? wondering when right just revenue start before the rate is then the is business Europe do is Dominican a

Bob Lisy

great We’ve Nacional the grow always margins. has making growth the Well, more been talked about that with believe we’ll profitable one U.S. U.S. grow a been never than small in that, opportunity. division. growth have do The we We our their talked the the always It’s it we Canada, in business about Nacional said is about having it, La in in which slower which also we’ve increasing it and anything and opportunity big European haven’t with La may core Canada. opportunity with business business

opens Today, have together, Quebec the province, business in Canada we’ll in Now more a not. they’re we’re formidable that up.

where shore. will off will brand U.S. So come Dominicans across business eastern our the that U.S. seaboard Nacional primarily La drives growth Dominican be Republic. from the that most are to the in

countries, other small it’s very, but our for in stores, very agents, those Now, or mix. a in offer we’ll instance,

not countries, compared largest very, small Second very Colombia, probably to Republic. Dominican – but it’s it’s

focused is Europe. the sends a a really world to countries a more European sub-Saharan serve. opens Republic. even in and other primarily So Eastern Africa like parts up to The country U.S. than Morocco in lot money even Africa, The of of Asia, Dominican to to we the places and rest Africa – business it of company currently

a it’s growth with more growth stabilizing U.S. mild business, that the business in a broader mission more it versus of time opportunity which is time. profitable huge over So has over making sort for

Andras Bende

elaborate on in bit just to little too. And allow guide what’s me the a

the then From about X our I that’s playbook from to point million net before the about we’re And million. over to from half standpoint, and the – a and Europe. revenue guide mentioned, our putting million work. XX little U.S. a one contribution and is U.S. half million. guide million. Europe one EBITDA and As income XX about a to X about million XX US to one Europe obviously about about in one XX and and one the In in a

Chris Young

for both thorough you. very a the helpful appreciate of – All to Really color. right. [ph] and Thanks lot very

Operator

a last with Our be Northland Securities. Mike will Grondahl question follow-up from

now may ahead. go You

Mike Grondahl

to was of upgrade follow-up. upgrade. kind year. about My for question that two it? like that guys hardware should taking thanks what kind the curious you And of software related the watch mentioned of of or in Bob, the benefits two, we think for cost Hey, the are biggest this and just XQ about One,

Bob Lisy

agent CIO chime and will One where me, obsolescent and certainly are for is in in equipment to much And Well, and from piece number. of I think that But plus. on old is COO, a really big put a increase because that to is also the he equipment locations the quality now there’s a plus. there’s new a comes Chris position. like the but big software this of the is

when it online that’s at easier also our addition and to out them make of us us things. enhancements process to that, we just for from to number for other easier card going an our GPR perspective Now related activities. But check One It’s it enables makes aesthetics does in a direct. to optics. is it retail. roll it It’s

have a actually are at, retail makes efficient. that even at stays is sort speed going at important up. for better we AML, and but sure It which though that quality regulatory more not behaviors is faster little perspective service it’s faster already the and makes the our only even of It requirements the

the I’ll over locations. does use think, dovetails customer that it, it highest our And fastest the So makes our highest that a that world-class of at might us have software lot or processing, then The appealing of of from technical and to of for continue hardware, very And of retailers. Chris turn perspective easiest of to mix put I service. to I forefront the things missed. a in with terms reliability, in the keep us quality retail the anything

Chris Hunt

I the this to products new biggest think for and that to new being market and platform have omnichannel on new with go software advantage new is allows think the we building about releasing that strategy as we our architecture able and scalability.

be a we’re to consumers interact also further ways but into we location, strategy. not to a with tie only lot So that retail able of that have in going

to it’s a big going benefit It be a benefit. already. is So big

We’re the agencies from growth very that numbers positive using seeing from it. some are

excited So it. very we’re about

Mike Grondahl

Got it.

thank Hey, you. Okay.

Operator

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

Bob Lisy

us a Thank you talking Yes. we day. and you great Have to for look forward joining to all soon. all

Operator

for you is now conference The Thank today’s presentation. attending concluded.

disconnect. now may You

International Money Express (IMXI) 8 Mar 232022 Q4 Earnings call transcript