IMXI - Earnings call transcript Q2 2024 | International Money Express, Inc.

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Operator

Good day, and thank you for standing by. Welcome to the International Money Express, Inc.

Second Quarter 2024 Earnings Conference Call. [Operator Instructions] Please be advised that today's conference is being recorded. I would now like to hand the conference over to your first speaker today, Alex Sadowski, Investor Relations Coordinator.

Alex Sadowski

Good morning, and welcome to the Intermex second quarter 2024 earnings call. remind XXXX today's may guidance, from to statements, includes differ like expectations. our including and would everyone call that forward-looking materially I actual results

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

to as of not Information X rely Act forward-looking non-GAAP financial future Officer, XX-K our measures President, of our our reports to Chairman, no earnings undertakes financial except and we measures. required on call, section by the can and call GAAP presentation conference such XX-Q, events. release a measures is our Regulation of the Slide predictions update for information non-GAAP for on forward-looking be such press on appropriate refer today's annual should the included our the measures. You and statements. law. On slides, certain and reconciliation as Bob certain by members Exchange Investors as Bende; is statements required in Form Lisy; These Please quarterly obligation senior at Chief Officer in G this and our Executive of financial to discuss website leadership certain presentation non-GAAP as under company description team. applicable The well Securities Chief intermexonline.com. Presenting Financial other Andras including the of obtained on Form of report

Bob. to now me Let over call the turn

Robert Lisy

share made progress It's I second appreciate of in a XXXX. International media Money shareholders, morning, pleasure joining you representatives. has Good us partners the quarter Express and today. the to analysts,

progress to report focus our key substantial across that continued We seeing are our we areas. has are and momentum proud

in a EBITDA performance we environment. guided challenging our delivered execution up our and all ranges, robust underscoring shy expectations, of own successfully adjusted our metrics strong While just ended on within market

company. record another for $XXX.X Our total for million, a QX marking reached revenue of the significant achievement

produced with of we reaching impressive performance $XX.X to a margin regard an EBITDA, adjusted Additionally, XX.X%. million,

Our versus challenging and $X.XX EPS XX% laser shareholders times. considering to were and respectively. the last by have value quarter efficiencies We're environment. proud deliver adjusted year focus our this grown This EPS underscores difficult to and very for adjusted ability extremely operational market on our during our to $X.XX EPS

our us multiple Our digital market business by significant strategic the and metrics and across further outpaced market is for differentiator deep to digital our feel excel profitabilities. for at moment enabling expanding company, the growth product. margins a precisely understanding We agility for that right

underscoring also has of This EBITDA, value highly sustained by our significant operating quarter, strategic a performance, its but integration a that way. metrical we strategic La X-fold approach Nacional the with division to our not increase only Intermex that efficient initiatives. in continues and acquisitions and to achieved financial The the off pay with have milestones merits become ability of the enhance

presence yielding countries, our records capabilities. reflecting are X strategies global execution Our strong revenue market and in

success, the our generating margins of delivering for Our substantial cornerstone retail operations excellent free remain cash business. a and

strategic and offering. management backdrop initiatives business part of a digital financial our performance keen grow our to Our creates our the perfect as driving omnichannel

product approach user Our unprecedented have effectiveness and development engagement growth our digital of marketing. of reached disciplined strategic channels and our profitability, the levels and in showcasing investments

months in best-in-class anticipate that through offering the that European as be our us enhancing our years. and wires digital strategic The holds particularly will growth immense potential service solutions our and continuously within a partnerships, in for we platform. in are digital great particular We market a region coming driver

challenges. market-specific and economic several encountered we QX, During

business to However, our excel. not nimble adaptive enabled cope, only but model culture and to us

maintain to our demonstrates ability of our our understanding momentum and exemplified digital deep business. as our and dynamics market swiftly profitability success deliver Our strategies to in adjust

resilience performer, these time, to see the drive invest Our our and the $XXX returns our has omnichannel sustain provides million us significantly digital boosting our retail to our the online our in investments combined well a us omnichannel of remain with model. digital a highlights strategy, both growth business. capabilities, Money digital retail a retail to we base with pioneering remittance The accelerate diverse bottom-line. culture portfolio our embrace in stands fintech wrapped future market's us of operations, to with leverages and revenue continued digital the de-emphasize between efficiency competitors maintaining our position long-term our which company. market the and great by financial we foundation own investing The robust and metrically-based over adaptable a capture that Recognizing our expansion. At opportunities poised the of success. International at the strong trajectory. stand-out to retail are a strategic solutions, forefront while same growing growth decision positioned tremendous has in strength enhance digital contributing digital innovation, the services strategically market our been to put of and to retail growth. By business balance The in to traditional and opportunity outperform positions our as Express of to our

of in robust retail providing omnichannel comprehensive in solutions, of with rapidly Our strategy retail various digital profitable and service, identity across business a transactions The traditional a on growth customer most digital expanding in cutting-edge is focus the quality to targeted maximize is integration locations ensures touch anchored points. At retail coverage homing the profitability. seamless on agent by geographies sector. our our core network

efficiently Our level rifle shot ability bispecific sophisticated the and our underscores below operational capabilities. agent and to level price ZIP code services to

pivotal build and equally manner. out a to customer a take honor banking and service replicate. We to Our in years are take our to center, our world-class relationships payer strong having long as call in pride never would exceptional reliability, or to in success taking failed transaction timely and pay

from relationship This funds and agents. their and strengthen for owned marketing business growth. strategically with our the sustainable of driving we set capabilities, value-added service blending renowned financial also technology our our benefit us technologies, diverse and equilibrium cutting-edge Leveraging that are exceptional deliver digital productive balance a marketplace. solidifies locally cost a as efficiency Intermex By digital investor to apart in captures us expands of retail strength operations highly These growth. leader landscape. network This both retail enable retail the proprietary our technology, businesses future solutions services small safeguards Our promote effectiveness opportunities ventures. only in the that nurture and not strategic but position

has for advancements of XXXX transformative IMXI. second quarter The brought

future solid Our strategic growth. breakthroughs and operational a for progress has set foundation

significant has consumer profitable. processing costs become efficiencies. per acquisition unit This while with economics particularly to have continued cost digital been due decreasing, impressive transaction revenue to is business increased Our increasingly more and

for addition critical the company our in region. providing grow Our diversification to products EU on complements a the existing of in acquisition company efforts the England. markets and remittance the U.K., closed to license license, market. ability to enhancing of enhancing full led and This expand services, in us value passportable in our acquisition a we remittance European most July, secures the the access have small proposition a This our consumers. In with suite to

our new we including in new President leverage and across the in of presence. Our prospects, organization, new presence reworked is especially Sales, region. Domestically, positions Retail bringing drive our significantly opportunities Northeast. Sales have Director bolsters of leadership, segment, sales us digital the growth our expected Vice a strategic and our strong retail and to Regional of talent infusion market Inside enhance This Head to growth in

many about capacity of originated or retail times, initiatives. That of the compete will from competitors others, component and of room leaving that true in Latin American have omnichannel remittances retreated with challenging of succeed retail at any face digital the remaining of both channel XX% offering. While retail ample we a that more Intermex digital marketing X% has the the reality at expansion the a to coupled and gross key markets. cost for total and of future retail and fact and and just makes retail the invested key to with destinations have our profit, sales Unlike

year, of sales be led we supported second a half team. the by our into by Moving upgraded will effort enhanced and the strengthened

to while detail greater on that, the will efficiently, continue over through profitably. With to I to be lead performance. provide a market from channel, importantly, key remains our our our most call and the business any will focus turn digital retail growing who Our CFO, financial player Bende, Andras

Andras Bende

our Thanks, omnichannel achieved to records, year-over-year Bob. business of $XXX.X set quarter of the are We trajectory continued strength million, of others where second In XXXX, Money X.X% its International model. and robust revenue maintain performance a resilience up in and market struggling the of growth. quarter second highlighting Express financial new

versus focused through by offerings a the period exceptionally expanding footprint and Our experience. well our on digital performance our with per margin XX% almost enhancing gross double innovative performed up transaction year. product and reflects last close engagement client best-in-class user channels and revenue to have digital same digital and efforts This

the retail, digital is and profit its potential to this growth. we've about the now XX% significant gross than product self-fund higher highlighting Additionally, transaction per made in progress future

constantly that broader to get base It's we customer grow to the more, revenue successful engagement enhancement we our brand During our increased X.X moving sluggishness strategies. in right of ahead taken million forces to despite underscore quarter, retail to consumer showcasing inefficiencies. the of strong loyalty action important our the customers, continue and the environment by early top-line impacting consumer-facing What's have now. out the

you and expenses can administrative and general As down both see, salaries year-over-year.

XX% our up built to EBITDA at basis. deploy reflecting to million, software steady $X.X restructuring idle buyback to EPS XXXX to of record was by booked are In million, from we're at We complete the cost representing savings EBITDA million, quarter, foot. taking DNA, driven we to a Diluted the XX%. just year-over-year on million I flat of our ago from Earnings and slightly over in $X.X QX allowing much that to a per ensure annualized and GAAP X.X% increase. actions all the an steps margins by revolver and adjusted expense the grow charge in to versus prior adjusted of facility mostly XX%, held In once for rose $X a already see program. Depreciation company streamline to part higher million addition XXXX. Efficiency amortization $X.X relocated at as to we're actions, reached Adjusted new the the usage in headquarters cash year, just offshore restructuring and the a over benefits year benefits second and us $XX.X have in earlier. restructuring grew share front operations. is to stay impacted XQ. start the Interest quarter mentioned we'll quarter on were in anticipate Intermex of we prior reaping out the under continue the more increased our start charge our we

in swings. from Our XX.X% rate X for lower year metric taxes. It in that free for state generation, from internal came to over million last cash, free was tax In ago, year. adjust down working quarter to capital primarily versus QX attempts our another up cash generated $XX.X X.X% strong we QX, XX.X% another

back new the last add million spend, in cash of XX% you be almost the quarter. generated free would the for If CapEx QX, up HQ $X.X

under on purchase During just and million business. still the rate our some active, as deployed to XQ quarter, stepped back down bought program. the very we growth Though buyback towards provided we capital closed acquisition additional our Europe we year-to-date over the shares, having U.K. XXX,XXX $XX from

keeping little dry For M&A. we're moment, also the more a powder for

our to long-term continue lay strong a we for foundation ahead, success. Looking

are an space. well eye is execute outperform digital on economics differentiate both and We in that and and with uncommon our unit efficiency to retail positioned in and

full our per of $XXX.X XXXX EBITDA year $X.XX of diluted of share. controllable, $XXX.X retail While to and GAAP the million our our to million and outlook to $X.XX Fully our manage Adjusted adjusted $XXX.X to to diluted per to confident previous not this we headwinds we share. guidance. We're entire $XXX.X more now we're revenue in And to recalibrate basin. With lower it's are end the prudent top-line that, closer $X.XX industry projecting $X.XX million. to the EPS broadly of immune million. for feel in update of ability EPS

diluted we $XX.X back to quarter to $XXX.X $X.XX of Adjusted third million. And adjusted with share. it share. specifically, the turn of EBITDA For that, $X.XX per Fully EPS $X.XX diluted GAAP And anticipate of EPS $X.XX Bob. I'll million $XX.X to $XXX.X revenue million to of million. to per

Robert Lisy

initiatives questions. now into your I'll our for and your future are take outlook the and welcome to future. future questions projections. to the now provide for plans performance, ready inquiries strategic insights open eager We We our session to are discuss and optimistic

Operator

Monness, with Crespi, from [Operator question & Our Gus Hardt Instructions] Co. is first Gala

Gustavo Gala

-- Can markets channels? the mean, across we the are I U.S. mean you this comments comment Your the talk a big little and assumptions and for end activations can bit the I you up -- seeing both been X made year. base? -- growth, far agent some about interesting key so incremental peer on pressure in your XX% agent has going on on

Just anything us you can there? help out

Robert Lisy

I'm -- that you the didn't Could of you when sorry, And activations. catch repeat part? XX% I

Gustavo Gala

peers your little bit and independent of remittances is going a you're channel Yes. softening? talked pressure in just about the macro, quite I just seeing really Just after side mean, want down. is of the this retail a U.S. incremental understand larger success this the past. of Is the something one parts having from to or versus in

Robert Lisy

move but in be that pressure calculations any digital from payers, used, our and they're versus small underweight I out. we more dissipating to a what are I to We least retail that large aggressive But see and Yes. say major Yes, that digital. The can retail not competitor. XX% we're to beating very that and is one we get, believe the very are who everybody pace. guys, growth the of balance they're most to that the a point not perspective, to you not -- that regional, be digital to percent to our rate. wires we we no still continue at of it's originating we digital probably would and markets core going at the careful term that the from consider No, want cautious question. retail in understand and because retail, that a not out really we retail. is most a believe best we're market the the overweight its and at have very at The be our public, are fast would beating regional market in today today would extrapolate I is retail challenge in and folks publishes we're that in from we're seeing that

a June Mexico, As numbers own in Mexico. numbers of we in resurgence turned very a we our when saw to the positive fact, to matter in

just the we the once this of suffering. numbers, we market is representing just number to point of a get there's So we little a have our strong is think rebalance inflection better, think growth in also a retail to market. and the bit soft an where We really we reflective and inflection right do causing is need macro that's large a share that, digital retail where as of see market. that now invest But still the continue we'll more that's digital. And numbers

the can believe and growth get we even the And to to feed we retail. we through it's that a little at now, believe a of things some taking past retail, greatly firmly long that The he new industry for softness. the a and the a folks. take that see we're been bringing opportunity of doing the it's coming of softness retail a softness with whereas record, second market think our things years. but the with That's and in new done market that months remains part do great huge we've now our time can perspective, of And beating from along that an if mitigate at all Kawula, we're I to is is today we macro going bit Chris still in extreme there, success not we're more the still Head in things the that, actions back of Sales, kind has time of the we

Gustavo Gala

Got of helpful. you. you And question. got second mean, That's into kind my I very

see they it sales can And 'XX the of leaning the new on end was Texas, this the be Sigue, remind year, U.S. and we the pricing. Western earlier like imagine imagine part, down outside and -- got is you mean I by -- shut us to California then calendar can better. So I I they're year. a the sales in a take folks, you'll not this -- mean, coming into it this to particularly big on going the

but X,XXX sounds one on when like I filing mean, dispersion, players think there's it have what able 'XX, down? geographic locations. comment you're was be to that. like a they one shut was play that going at And Maybe then Kind point, it I just like of of smaller the from where in? to

Robert Lisy

Yes.

But California particularly and that and populations that Guatemala, to question, going be states we've very across our the going certainly, execute execute to the have places be been are are large country. So like states opportunity of list. first Mexico are that key more our drive us. markets and market, wires be Hispanics going on have foreign-born got can like for in to strong high in Texas we that we to in feel There's to that

or going that to California are the that we out and So be wherever don't going huge maybe doing East. doesn't players sales we cut field Both today. dedicate States. their we're known West. try not efficient and best play We've demise our in force, we of are of see a is more their force them Small question, opportunities. On and themselves but large and had that your we business. as in opportunities even second largest exclude still to the where demise of But -- that we've what's but growth that of by the right? really exclude big don't be doesn't of no to which kind doesn't also in X XX% marketplace, most the can on biggest business the Obviously, parts plans we're longer the of the dominant, in West, seen Sigue, one the a going We've Sigue. in other say example United as great digitally. the is World, Northeast opportunities Texas seen of states been the It We've Europe, seen players primarily

So don't of are And believe that it. We we're to we left in wasn't in that that. Sigue, get of a those market. we like it's folks. don't lot vine dip on believe feel we the the answer are a going seeing for for time. We started do retail permanent past in a challenges. investing had particular, of bit There think challenges long a question, the us atrophy and die to much little

happening Sigue by to it just down, time and sort shut was over fraction what to alongside the is And those players off began filter of others of transactions itself. with small we many or So actually were those was Sigue retailers were in a it time. cases, other in

wasn't I they business time their think they were finally of large there they went self about out a down. probably the when of insurgence only to wires close saw anybody XX% because XX% So of by original that

Gustavo Gala

off maybe versus, That's that Can domestically? jump putting $XX earlier we table side, year, Got million a super allocation then you. priorities? I internationally, a roughly the looking in in the towards it helpful. are talked expand corridors? the Is quarter I'll we expanding now M&A think one more know, distribution on last buyback. we don't capital channel of my and of M&A? the very And and is about back the And And I we're just just more queue. on more

Andras Bende

Yes.

rest this is year would like Andras. that expect forward activity looked for little -- you of allocation Gus, going would a bit capital the more the the XQ. I On see

the growth that during well. not license which capital think have U.K., growth million provided did the $X.X U.K. about and additional the on Europe additional we as some general, capital, to but business our in some close gives huge, in will acquisition, the I quarter,

interesting, into did M&A and are buyback dial from those we taking properties So perspective some an back the some. account that

you In talk do terms in. what it? we're M&A of interested interested want we're Types about in, Bob, to of

Robert Lisy

Yes. opportunities. look will diverse us things at I and to mean, we be that continue bring

lead to could There's being a are pay States a agent that bank We're our have be through opportunity digital we us digital great of an ahead at. the potentially set be to for us retailers at of by progress very couple looking business look opportunities we small will where some that's things. related into offshore the that a here of I think there's and also opportunities in to operated really invest that quickly. that So are more United

our sort well both So some of that other would things out play in those agenda as are as on retail.

now. more X to any could to Nothing X it's at about that in middle early are at we're things probably we right So this that looking time. specific that stages be

Operator

Andrew with Our next BTIG. Harte comes question from

Andrew Harte

from question, alluded macro. of and that second. one one me. be Europe. I first kind to Bob, One then on this. macro just on on questions the want the on I'll first you in ask X just guess, to clear I

July? And Bank through there's of looking of some I probably data June positive. or think is saw from think in what bit said with August of digital June obviously, just then assume a top-line kind retail that to that didn't there. been it got kind at now, the Mexico and kind mix But about commentary of the reduction the also through of also I particularly Mexico saw then between we've at you You we trends, little -- we're in looking safe that kind hold

those that perspective, clarify they assumption we no kind a longer prior just or pulled of And just So in trends the is that then can should that X.X% case Mexico are think X.X% Is from I have up bit? macro that the be under June considering? you holding guidance?

Robert Lisy

Okay.

you any used So happens, that to big of Mexico It's that a if the pesos doesn't And some peso when though per the dollar was the sustained And more had that the that election weakening, even we'll a surge rate, going driven peso by in drove to get trend exchange see peso bit continue. certainly was June been the swings. but a little choppy, hasn't trend what business. stuff get on weaken. consumers

same because end So happened of seeing the of the that this of most was an July short-lived in a and right in drop like would expect as at in that and drop to a we June, but anything anything peso over Hard a that typically part weekend in there. It big in We're that the where big of of in played June. that was or really really not June May hasn't don't out resurgence certainly June business short-lived. that are be the peso spike predict, the valuation. election horizon or acute terms its And even those see a the in we are big on at point. don't else of things they only have

On digital. relative retail to the part, second the and

So because if published just one in one about been take to what's kind market, sort of the Bank like high you growth extremely of the negative and the in really X% June drop of it's the -- peso. month so is of month, Mexico, the by choppy,

gather, take our can digital believe which growth published, that can again, that of market. numbers that's And from somewhere all XX% the the everything overall business belief the on put lift XX% would that X.X%, about If X% we somewhere there's we is the nothing an we it's going give that XX% from to to you together around business Mexico. between

the We a if that that. XX% that the would outperforming then where growing a is retail business than have. that's is our digital we in still minus if in take and a our quickly, It's smaller our a deduction much it's have don't number we that think on that X% outperforming we minus so X%. well, very, the today. We single-digit that weighting out digital digital. lift weighting outperforming or X.X%, we're our market or It's numbers, market we're in as sits consequence profitable. very extremely of the probably as belief as a it retail as market that And believe assumption, you get And

the of at with gross biggest our wasn't than is I that was the news gross a good better But and of it in digital margin what I retail digital the really supported $X. us is product detractors now because the margin that. almost team built today, for by was. has numbers gross one think margin, our the this

doing to the And done so on related also gross fees And and line costs doing that wires. the revenue we've other great to turned around. really we're job related on a because has We're line. margin better better taking those processing

And of need market we're exceed the going used to. rebuild we to is part we so -- retail do forward and at the what way

only piece you really when think invest market but a beating want we're X that I percentage to the And the years. growth be key months X because in we the has And going that's X Do that's explosive future those or by then put and to that at Hopefully answers? over coming digital opportunity. retail, points. to... together, the

Andrew Harte

helpful then brand? XXXX really plan than through Bob, it a a whole? then might what can Europe, Do in fantastic see the going to how the that's how thinking be business go-to-market, a percentage bit seeing and you you of I guess, having digital like different there digital? as the talked is in digital, Just more And U.S.? I-Transfer brand you can Will with the up And the Yes, maybe digital European the it's look Europe. we're when little about digital size a to sounds drive you just different in this XXXX, Intermex talk clarification. it be than guess I offering follow-up. branding bit both is In story. Europe and Intermex on we're about little bringing the what prepared a U.S.? we'll retail in kind about big remarks, opportunity of how as It

Robert Lisy

Yes.

let's a relatively call low-single-digits business by of percentage European our percentage, it, It's primarily our small today, as So overall Spain driven business. is and Italy.

We have Germany. in a presence, store small company one

in got largest U.K. our is We and opportunity of buying just acquisition as markets, probably you our there So part know, Germany, the as of license there. U.K. France part are small a now

retail So Italy, perspective, opportunity and out from expand into built when a U.K. retail big where are be and banking about but countries France of will to able to side. Spain a that's ourselves we Germany, already, have get on then in of the big to Part those which build the able be relationships is be we our network, part ability that the of because to we talk

anywhere relationships have the and have can banking and over size inherited retail France and the But of today, in European times those grow a Germany, France on growth. U.K., it in of so we better than in not Germany So growth and its maintain That If proportionately banking the which Spain one and in and could business side. in upon triple the the full we only terms today. That's that much expand our get we U.K. to business are did a market. several because be big part Italy, bigger markets than were relationship Italy near will Spain

On consumers banked, who side, banked the debit cases, are the be banked, much not because we digital to that. Most case tend obstacle most a digital of of opportunity the in to they less talk The not tend U.S. have undocumented. biggest in because in is a towards in the that have That's many may be in cards. market. it's more Europe, is people Europe can't to people be the digital digital we advanced it's about lot reason

debit the about company in retailer the As are XX% transfer a bought, matter they retail small we to -- processor, of U.K., a wires of do about XX% that XX% at small through I think fact, money the card.

have it of today customers They eligible and do are doing retail. those All digital. they're still do to to means the

drive better make there to those economics as application access thing opportunity site. a in the very be there pleased for very wonderful the that at for do in Today, they bank digital. The site, hands of attract digital, to consumers to are of are will digital U.S., and are accounts be well of in attractive, but to even Not because for the our U.S. than find and to be big investment our Europe. customers will to built be But that is digitally, ready us that market we challenge to today. to to drive do wires But it people that much same a business very our are that we the face in retail with. same the more U.S. in nearly consumers the opportunity have the And the presence is consumers unit we would easier the highly rating what challenge we've U.S. the to we So possibly and will key tremendously enormous.

Operator

Mike from Northland. with comes FNBO question next Our Grondahl

Mike Grondahl

margin retail First gross how double dollars you've what just, digital last in and digital XX% it you invest -- invest I know, digital was it's in provide invest question. even than to Can find guess, higher dollars. the Bob, I Is and don't the talked primarily year margin a does marketing more spend? few mean force. in about is that details? gross just maybe

there? you what mean Specifically, do

Robert Lisy

wires Yes. been being I application of thousands that have -- investment out forward, to of monthly. invested hundreds has with it's a tremendous we've we done. I biggest going a know site stands And anyone. And digital our mean, going the amount through through think that now, an proven site

The in the of build to that done. causing like And that that the us money we're has cost in do to business spending the product today, primarily they wire of of So in at still able a of cost recognize the used of is understand and Intermex we to acquisition most by been drive to upgrades know. -- have the make. From not that purposefully. that way happening to digital our will drive invest be or amount in been down biggest because think to we we've amount a are need even then of it where be but now the There's marketing done unlike spending. The some application, that to a and companies all not a not half dollars need And what's anything to wires leaders there a Intermex strong deal be, and name we that it to and great need of we of red management, that people come has people that digital, we've small that to of driven acquisition they're perspective, investment don't was is marketing. that. other probably because we customer money coming the certain piece to our had stuff of most need fraction site. that, coming there's than be will to And is but digital we ink, the that more some tiny doing even lower that, built but much really so down part be to system area going always the in

free million talk -- projection movement As about $XX future if cash, $XXX our of throw growing We still over to -- office. of we're our we moving our per new share. you million still still making for EBITDA million, this million, $XX headquarters $XX count our don't year, off million in earnings $XX our and

our into it. to such built we by supported a have product. financial-performing challenge of the it's in invest as strong invest and that's fortress the to by that company way line do community, we've our We in that And got that's investment ability is great we in feel supported digital. do like the the we've digital So investors this What have we a walking. been marketplace and

X% our acquisition to market, you more it build investment cost. want requires Now said, -- I on to the retail. One lastly, -- on And in good. smaller, being that The the that the in the player, marketing cost on, and sales business into still us and ability a that's wires prescription large retail about a numbers player. us fortress still think reinforce, margin, I I I costs from digital gross are tremendous today to leapfrog coming our can retail. that us are affordable weighting application XX% we if unit by of the we've huge make relative is as we're getting better better, of from to in good catch-up that a still don't and the tremendously the And business margins while thing terms forward. has of done to to customer not the to will, anyone. that want between to as economics more And the a want strong going digital give for an as our I ramble But in but only degrading say, that

Mike Grondahl

macro-driven little from minus provide I Like then, competitors just and and you a And those retail at challenges what's have a it. Got inflation challenges there, the the to X% clarity follow-up driving guess, saying coming and X%, America? what been there? itself you as seeing I not think guys are is you're on the Could the source or competitive your really minus Latin of environment. retail

Robert Lisy

Okay.

to we single-digits. we've So I consistent contract on the of consumers a historically, to don't Mexico basis, when downturns wires, -- migrated and now, in we've some overall the within out driving was the I digital. what's than of current the what before a we're if that huge there's think when fact it which to slightly number seeing Mexico more believe negative went that market positive went be believe seen that negative and be I now have June, middle-to-high we seen weakening. number and back other months the market is is right segment the that not we digital anomaly be peso encompassed an because months take is

seen And for a suggest think from retail, or means that was a like in X% we we're we've retail a something beat we not shot, probably I market used to. retail, long that, which than would So seeing the retail that not by what cyclical that I today is before. quarter perspective minus like my the that's

we execute retail. need to beat we So better, but still

is what not ago macro adversary that smaller was we're it the biggest market than and at The competitors. a is that's year adversary the biggest is conditions the against. fighting Our retail

have making environment, also we're organization time small in business, to trying execute Chris competitors there retail lot talent. we to the macro taking network. their earlier But build and with not why spending challenge that's in others of the that's better of really to ability in alluded the our at changes recognized and from the bringing or independent coming certainly sales the in some Now additional not a is from competitor a a lot

Operator

question line next Management. with from is of Bill Our Tieton Capital the Dezellem

William Dezellem

That's which really that to that transferring the U.S. helped relegates have multiple versus to to have correctly is focused is and think I retail? the comments you that people that and of you're in digital bank Tieton we that have here Capital. X because in the questions. understanding the your account bank banking are clarify, capability One, on understanding -- a relative Europe, Are inability them just correctly? that we the account but

Robert Lisy

from a or banks. the debit to XX% and small different are right, more we banked that people what their think the for U.S. retail the we much as in for that indicated, we are know It's a done are a from that's Not believe, account somebody seen with And so made, I it's And acquisition only Europe but get in is everybody it's we of don't bank the not location it's going coming that as more easier believe certain, as banked. to that's card. in U.S., we've wires in their faith country consumer. the but home ability, I

even to they bank a have bank that worker more used if but the if because accounts. they upscale having they about if can, not or account coming talking workers, even they're are the they even So people have, affluent, may we're more weren't humble border, not if humble they're across not committed,

be more Europe. there's month even that at of retail. already business of receptibility, opportunity in a and are coming more from big they per different also hundreds account a So we then But into them. think driving say thousands might a much We're better there does wires because Europe makes profitable Europe. consumer services a a do that's be because not that think to came opportunity. of accessibility their will won't bank And I And values It's receptibility where for bigger that a they think ready account. it's in in do presence that we online the different more of the base in very bank has they're consumer. system combined to That's to different from. those It's client different so to wires will easier digital that retail -- our that make offer

William Dezellem

community that migrant apply does the And to in also Europe?

Robert Lisy

permanently worker. They whether mean, migrant define in are relative our here temporarily country, them I accessibility We -- card may but people back bank in we're there accounts. a a where as are a potential may and money non-migratory. U.K., from to country sending a is don't you how senders. don't XX% know the migrant have directly distinguish home. the those account a you talking paid they into in bank as still consumer consumers for they be about be or there do that than was I debit I More mean,

William Dezellem

ultimately what That's different one you do to Relative versus and question, to surviving were failure did? the their failed, And their on led the competitors are their key it, believe back failings part versus what -- on please. competitors when they that What Great. look additional dissect doing that helpful. you and the X you demise?

Robert Lisy

Yes.

this is -- and me outside. again, from the think I

don't I I answer answer and reluctant it inside try information to that, but have can. as I'll to I'm any So as best

India big in that more Mexico Mexico that gets sending. fact U.S. money, many they came think quarter things, is places. the single I the too money, in largest from focus no and that diluted Small or in world company. from single China into one were on case to the I one too company they at the There's in many time country, time built but our gets didn't the of many in. more We I profitable. World, too things built that just this

Mexico. really to happened And equal opportunity. the companies. that gets And is every that think that in what transaction act business country us that. And secondary back allows built its some the Guatemala, other us which buy terms allows destination base is stock. market, invest, didn't very this to that metrically-driven, equal. we're which considered metrically. every secondarily, Others in on to They cash considered second I an of And base of has every in not They enormous thrown off so month built per is which we is or profitability

think we the is of of just and phone. always being problem. the in thing to of And big of fact technology case big their that of Sigue, extension digital retail is digital. consumer over the the I was sort deal. the a had think We a at jump retail the same hand Well, technology always that's just technology a

had so application retail. at Sigue good not So a really

not TeleHero center TeleHero wire. phone option. ] technology Sigue where there of their And the and so a attractive do a the called did up directly of so Their lot product picks are [ to parts where real the not good for a to the was and goes was wires call they what's and a a with in goes country consumer

of our So that La ago misinvestments go and should a X them they along quality Nacional cases, some to today. distractions lack in Sigue's the was very where acquisition drove unprofitable. And those while areas are both I into of those in they that things, trying made that drain to case, think with they the unlike not, they technology, them an made acquisition a all

Operator

time. closing remarks. at back would I showing further this Bob questions no to turn now Lisy like I'm for to it

Robert Lisy

Thank today. you to all talking the look for joining you us soon. We forward we to appreciate and questions

be anything assistance. a if we'll we you else again. Have Thank day. great clarify Let us further know and for you can of

Operator

your today's does in for program. the you conference. Thank participation This conclude

You may now disconnect.

International Money Express (IMXI) 7 Aug 242024 Q2 Earnings call transcript