IMXI - Earnings call 3 2023 | International Money Express, Inc.

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Operator

Good day, and welcome to the International Money Express Inc.

Third Quarter 2023 Earnings and Conference Call. [Operator Instructions] I would now like to turn the conference over to Mike Gallentine, Head of Investor Relations.

Michael Gallentine

I want to remind everyone that today's call includes forward-looking statements, including our fourth quarter 2023 guidance, and actual results may differ materially from expectations.

For additional information on International Money Express, which we refer to as â€œIntermexâ€ or the â€œCompanyâ€, please see our SEC filings, within the risk factors described therein. this today. based on beliefs assumptions statements of as forward-looking call on are and All

not on X should forward-looking update events. presentation You and such rely Executive a the statements. America; Please of as Sales; Also today XX-K, measures at for financial as Theodoro, website no refer future section The under Officer. required predictions information, Presenting our report GAAP Company the measures to obligation press of call of President, except Slide on and for Information description required measures. of certain can appropriate undertakes intermexonline.com. Andras Joseph earnings our and our non-GAAP our certain Chief forward-looking to is and today's by of applicable Officer, in financial certain the Act in law. included release Exchange On Regulation is this the G presentation These including conference President, to such earnings and Lisy; non-GAAP Hunt, call, we Officer; discuss on Bende. Chairman, Investors our Officer of Chief the Digital Retail non-GAAP Securities Chief financial on statements Nilsen, Form Operating by EVP our measures. Aguilar, Chris annual Bob are call obtained Marcelo Financial Chief Randy Latin reconciliation be slides,

turn now me the Let Bob. call to over

Robert Lisy

of our We growth. have achieved history profitable another on building quarter, productive

We EBITDA continue generating grow to revenues and while cash. free

by last. metrics expectations. These were metrics and skewed did EPS items nonrecurring year this Although meet

our such future all as to division. through streams revenue in this significantly I-Transfer continue the and accomplished have European We digital service and our invest

diluted income per net consolidated million. on decreased $XX.X XX.X% $X.XX to $XX.X net million. the income $X.XX EPS on increased per share Fully Revenue Slide of X.X% on at by to of X. per results million. to X.X% share Adjusted decreased $XXX.X share company earnings Looking adjusted

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strategy year-over-year to create growth a to going this our continue forward. will expect lift We

recognize more growth. all deliver consistent geographies are We maximize more approach our to navigating and profitably profitability on we focusing with to while specific proud progress, but This of access. is Intermex's opportunities many efficiently while to surgical have agents,

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Nacional The strides significant maximizing originally quarter. retail of restructuring efficiencies. thought the its and only rightsizing about made approximately We U.S.-based yield to $X.X operational this have La We network opportunity related expected actions annualized past operations. an integrating that will date and million starting in rightsizing savings was to

We have to that made strides significant end.

line well However, with to the when see a apply we year business, we as after playbook. Intermex more clear opportunity the the top grow than a

and his valuable Andras to Intermex During asset proving for is significantly be quarter likely will over discuss restructuring remarks, and third a time. Nacional contribute La charges profile. will financial

division countries and exceed base in in the more of include are expectations, a have We and Spain, optimistic its terms performance to even existing We both Europe. potential. plan and about continues where not U.K. we yet the grow. to separate market as footprint it from believe requires thoughtfully with potential These are I-Transfer part Germany which we in a we significant a present, European potential markets France.Additionally, profitable and market but for it holds not EU. since the and licensed, such of share. is license The growth, be are opportunity, substantial efficiently will we investing the significant although capture to expand market acquisition markets the our our Italy That I-Transfer to

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together perfect of this come All has a at time.

countries for service to including Philippines India, XX will and additional expansion expand signed recently XXXX. enable to us agreement and with Jamaica, our further Our Visa worldwide, slated with digital Vietnam the

are best a we line profitably created unit and bottom business. have a our this economics We from all, with both Again, significant digital perspective. momentum all doing of

We Investor will XXXX, to but bullish ever than digital more would more we're Day that our in on relative say share we opportunity. like our to

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Andras Bende

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Looking $XX.X to at EBITDA million. Slide X, XX% adjusted increased

income by net the amortization As From million, the previous we the was to up benefit anticipated, but to was related tactical EBITDA tax tax items quarter and net $XX.X transactions, Aggregate X.X% did underlying this pivot to Adjusted down the even were down not million and XXXX. as adjusted quarters, income and our like XX%. restructuring-related the impacted great EPS incremental to in net at in margins heavily QX perspective, recur as during compensation, by impacted driven capture share-based income excludes margin drivers Adjusted in with in items. impacts held that lower $X.XX acquisition. business $X.X third GAAP the was transaction XX.X% core same margins was within those intangibles structural expenses, share. La of also down per the Nacional by around an year last

As trajectory EPS, a anticipate we return EPS growth with adjusted the to quarter. fourth GAAP to in

Turning continues generated, cash operator generator. efficient capital same Intermex impacted caused coupled excludes upgrade sheet the drivers to was the agent for by an to income million balance Slide cyclicality the be and measure. Net XX. cash our net That, which Net growth, free for the X.X% to income our measure, of earlier. increased by decrease internal working to technology is this as $XX.X spend metric third quarter. to the capital mentioned basis with on

with earlier, we net once expect mentioned QX. revert we again the growth As measure this in income to to

price market, $XX.XX million we purchasing share $XX the per at to of the repurchase shares for in continue average Board active authorized the though During quarter, be XXX,XXX an program.

program capital remaining our continue buyback as an of active. We excellent use see to and anticipate

quarter Finally, with and improving we're on on up EPS of to $X.XX, $XX.X adjusted the and to growth of $XXX fourth up metrics operations, revenues $X.XX, $XXX XX% X% delivered. the quarter XX% diluted million $X.XX In providing pleased the we're XX%. to we've XX%, GAAP up of EPS guidance: up of XX. to in we're diluted Slide million, $X.XX and to to EBITDA X% Based adjusted $XX.X our XX%. to following XX% to summary, seeing million million, the

Our in paying us of retail turn execution questions. it the I'll With we and pivot continue over growth and products. This that, ahead Europe future dividends, in exciting is will fund more expect that operator the fourth to for of digital, the quarter. other to

Operator

and [Operator question session. from We'll now question with comes begin The JMP. answer first Scharf David Instructions]

David Scharf

the just paragraph I'm off, release, first First at I Bob, press the curious, was it of and has looking your comment.

is that. I'm incremental We retail U.S. to are not to capture in sure on to growth sign-ups our a want agent overthinking per? what make very focused core transaction schedule seeing that comment ahead terms QX? the in plans about transactions broader the that just you're ground that just Is I and the of Or comment expect of in in a you related sales

Robert Lisy

a direct and to we what on fourth. produce expect third in It's we comment produced quarter the what in

and X% projected of X% on earnings, was the in quarter terms we it the the recall our finished in second as growth, you we quarter If delivered we transaction ended. growth, guidance when increasing and quarter,

said growth, in expect quarter. in fourth We the prepared higher as remarks I

we price. really stable and least margins quarter, incremental have sense more that been transactions and our produced business the expected effective overall was also grew where we and That and aggressive. the in margin well, margins. We wires held Additionally, in, we would transaction we're where is our than working really way aside we have up that's X%, that to to the where that in to In of actually really told put at the grew X%, wires core than in set we bring ahead at up growth. a expected gross kept not a and we market both margins more get due picking has that our terms but third margin a where ding actually of be, we're we or really, higher well think

David Scharf

around. pressure or know environment, particularly? has of if of quarter, discounters you I pricing Latin just time in the a lot this follow-up, noted broad the to a maybe a As last more existing increased of to resiliency topic whether pricing little mind, of changed provide the some markets and private anything was top you Can update America a

Robert Lisy

that profitable, the Regardless to and at been we've growth. holding still we're again, related that greater delivered that pressure is would The wires out margins same as to margin base Yes, Those at incremental our are are than we're has, way wires growth. good coming the I wires. that margins a our business, transaction aggressively think the that adjusting doing where where incremental becoming just going I gross news there, original big it's the well us in. pricing is plan and adjusted done not in base then very at at a that come and job mean incremental the really for we've of that high efficient going more our growth wires in keeping the

Now to I'm not question. trying evade the

always there's discounters there. out price think I

method the they I think grow people it's business. the think which

goes. that comes think I and it kind of

way executing I work we're long we we're today, can executing as plan that. as our the think through right

that challenges pricing to the we're the pricing now positioned meet well wires attacking way of relative now we might we're market the and approaching any -- us. with think I to have incremental bring

David Scharf

general imagine from consumers? seeing with didn't to your inflation that business if send much, average I'd isn't on commentary might in want question. demand there's or color kind a remiss your what be promote? ask too remittance I any but I flattish you're the if of impacting through Last you core expecting

Robert Lisy

Yes, has one the I strengthened. of think is the peso big that factors

You to because the but side it to to be if of weaken, the much a getting don't peso pesos as on need send of was big here, flat stronger to up the to go could dollars seeing other able to as thinking you're instance. side started now We're yet need inflation that's any many pesos going to get of was we're of than border. border. That's really now, countervailence many cause other on going people less right the and same peso to the it previously, but the kind get it the of for be amount inflation to

Operator

The Mikel Grondahl next from question Northland with is Securities.

Mike Grondahl

the call plan. like you on targeted about last Bob, talked a it

I to think items? markets. pricing one you've were you wood and have actions think was some lost offers you to the where of Could successful bit little two, you four, you and those most these agents; where pricing new you chip a volume; new on rank still three, agents been targeting where four

Robert Lisy

Yes.

bit and happy a surgical do because easiest lower going weeds that now I'll us makes and XXX, the country. core protecting to thing certainly -- we're at does discount we're up. the used think and into is really after go get really just mistake on to the better our them take I base. after wires the and We're their that margin Again, event.They it's We're an the in being on wires going going with in discounting successful I wires already we if the wires agent to the we've where most they in still they all. give opportunities think answer retailer and do the anything here not not way where those an and most we've agent this able margin this, lost because decreasing that a sickle of to to XXX not have with a only and in base. to past protecting -- do haven't if market X,XXX you profitably a that of they while pricing the is The lost competitors and go across little retailers and at place the been that aggressively, the

a believe have for business already but lot and growth lift months, transaction the can few over that and have that number We month-over-month to well piece more up we that project of project perpetuity, months lift XX our clearly responsible producing have. a performing points quite huge basis line the we on quite bring best a about of or a the that we that's is bit. probably last that, not That still, our at continue we That's numbers X.X% core of for to do. margins trend so a been into

wires we're performing focused performance of I to the as total but of the points? been want agents, been I'm the total bringing in new agents of -- well. on New was the the the is quite not asked, That's been really much as and that in the big sorry, agents I been new make the are amount other we past, sure agents on think, all touch you in things I as have helpful. What as we've is it's never number

Mike Grondahl

Yes.

think added was some or increase last -- to were some markets pricing the it targeted. new I and was any markets selectively that you've just looking able and certain maybe one at in you three

Robert Lisy

to name there our from in pricing let's of I'd I maintaining much our is I haven't our we turned margins if in more doing macro whole business. that growing, well. geographies, that mostly make a than at new mean not the pricing there's for in Then Everything pricing, that us around I them the some say sure there's are states omnichannel bigger macro states if thought necessarily everybody West didn't significant all. number been state few we've Yes. approach. aggressive, we because states that a doing new every is those state, us of I transactions. extending any, the margins the rifle that We're growing won't really are macro, the done I is actually mean, are growth and quite say the and better we're like not key because Arizona. about. say, that getting shot would in is digital is quite a underdeveloped are no states. absolute has well. other are been the now we're they made helpful, trend that lift approach but out that to significantly want in some the the performing California we've that have we be getting and turns remiss street way. and overall in with right believe I our clear blood our Western

throw We're We our is of an our extreme off individual on and well. the best. we're basis, money wires quite continue on views to digital. recent amounts business well, unit it's cash. digital that highly quite now growing We're app making working profitable, on economic The and on amongst it's

costs is where the wonderful for if there of digital we marketing compared the that X% expensive sales perspective, is model that moves have a have digital solid of and you're prevail of that it's will grow spend expensive, this and believe to over from with business this of our model is. out to but still us. acquisition we The and that the retail that to customer to and at total time. some Just only strictly for working margin approach how retail, grow about omnichannel perfectly our way beachhead to this We customer are gross really acquire

Mike Grondahl

year? July to to thinking you're maybe Xst Then today on any next from, salespeople for what just secondly, of update say, about number

Robert Lisy

have Yes. that. relooked we at I mean

put but we had time in program. six three we telemarketing we of last than more have in to Guatemala, folks salespeople are about basically part the have another in going We six and we're put people spoke Guatemala our that field,

we a as customer more six meaning extended person. lot monthly of can imagine can we've that have us bringing thousands visit We reach you are retailers because our contacts, basis, think on we that in basis, literally more on people, daily of retail much at best call number that. Those more ground a a a that's the our people more we second can people added grown and reach have by extend to although we're We retailers way going quarter. to now actually from three right double the on to

Operator

& from Next from Company. Needham Salvas Sam question is

Sam Salvas

Just a you changes seeing the talk any wanted retail it's on that's maybe the just little that since last competitive you in business? to Could digital ask evolved bit guys competition. dynamics, quarter? Are and or how about whether on

Robert Lisy

any there's real believe don't evolution. I

been discounters. to I that think be people have discounters continue

it's been changed. approach our it think to really that's I

out we've been gotten this very we that to preserving saying, and put base. the base, that has but in plan that day related a we're almost don't then is we've there's change. really solid really base a really after wires I which coming at high of competitive wires. and It's a margin that think preserving our where working going aggressively place I intricate seen big people every It's infringement think well. redundant keep to working like

been to there. be always going there. think have always discounters I They're

really, really with our up well Over we've the pricing. held consistently years,

but with happy before quarter we combat we're transactionally doing higher where than at quite third zip code doing higher To the for it me, that to apply and can not against bringing it margin. we properly how projected we really the near bit, with retail discounting a think says even ability can slicing zip we anywhere by if a well. reverse at approach, on thinly because a trend, than had I the growth right trend Now we're that code ourselves a reversing pushout better level necessarily but have of the we're

pricing on Marcelo, digital? On side, let the you the I'll comment like to would in digital

Marcelo Theodoro

strategy better a significantly, increased pricing with management. cost efficient has combining more a Our price

the better investment. a which return comment, to I'm give are have digital confident grow sure on us on Bob's for players, foundation very For the we the and versus top profitability of to

Sam Salvas

aren't Then third the to guess relative any kind head quarter? just or transaction is whether I into of color preliminary -- guys Any a of providing fourth around the 'XX. it's of quarter quick provide, 'XX? there follow-up. thoughts guidance we Obviously, expectations you you kind any guys could kind any for as

Andras Bende

at time. this Not

through we Not that that I give year-end the in an doing we and we'll coming financials come also picture Investor that February, go will Day be mention behind will be strategy that. this our of the think together point. broader did a and will where results that at

Operator

Capital question [Operator Last with Instructions] KeyBanc Markgraff from of Markets. Alexander the comes line

Alexander Markgraff

a being oversimplifying boil of Just some at to this been stable I'm it. lot sequentially. quarter. per observations there's of transaction kind just it maybe pricing and one fairly commentary I'm the on outputs model of I If and look of curious down revenue the

the the if for helpful? curious kind business success Any of around would for this level mix just about had modeling Nacional La considering factors you've pricing, Just industry the right purposes model, think and general I-Transfer. all you for recently on the more the near some thoughts as just that that and of considering of be level the term,

Robert Lisy

Yes.

I made that stronghold think we business previously. competition side, to as we've one base aggressive be We've incremental maximizing after into being have it been to, the to we're margins on headway go been in -- that wires sure believe really that at to good areas. been may our our able making we've lost our related

good on because strategy think margins is are good revenue the would that and that us we're we term. we not near that not going perspective per sit the would but should tell forward. you your guiding today that's and that, probably carry a a have a where view where good of think guaranteed really I I today transaction Obviously, we through

Alexander Markgraff

the GPR one the and side, payroll you thank product comments. Just for on

this later payroll had upgrade quarter, think launch year. you last I a card mentioned

Just detail of kind that would updates of or what entails helpful. be any sort to as or thoughts

Marcelo Theodoro

our is of The happening. evolution payroll

completely about program redesigned that to in launch with the are connects product. weeks, program the We even more a wire card sending two

we consumers don't looking reality U.S. we the business, in Andras cards of the believe a underserved then are mentioned for In to of e-commerce, notes expanded money due bunch subscription cross-sell will think what a wire that know that for regarding extremely huge we go I are unbanked launched which purchases a to access or QX, opportunity going. -- because is We still U.S. Xx, their makes they are exactly make this services growing that bring an they our very out we GPI it the have They to and and in can we can the another them they profitable cross-sell are card, we direction users have head this situation to in retail. are business.That's today, his go

Operator

conference This of any Mike would over Head Relations remarks. concludes back Investor to I turn our to for Gallentine, like closing question-and-answer session. the

Robert Lisy

all great talking Yes. to is Bob Thanks your you Thank this Have forward a Lisy. all look Actually, and day. you again. to in for soon. in the tuning We company. interest

Operator

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

may You disconnect. now

International Money Express (IMXI) 7 Nov 232023 Q3 Earnings call transcript