MoneyGram International Reports Fourth Quarter, Full-Year 2009 Financial Results

MoneyGram International, Inc. reported financial results for the fourth quarter and full year 2009.

• Money transfer transaction volume increased 7 percent, and money transfer fee and other revenue increased 6 percent in the fourth quarter of 2009 versus prior year. On a constant currency basis, money transfer fee and other revenue increased 3 percent versus prior year.
• Global agent locations reached 190,000, an 8 percent increase over prior year.
• Total revenue in the fourth quarter was $296.4 million compared with $319.0 million in the same period last year. Fourth quarter 2008 total revenue included net securities gains of $10.2 million and investment revenue that was $27.6 million more favorable compared with 2009.
• Full-year total revenue in 2009 was $1,171.9 million, up from $927.1 million in 2008. Total revenue in 2008 included net securities losses of $340.7 million and investment revenue that was $128.9 million more favorable compared with 2009.
• Net income for the quarter was $28.1 million and EBITDA was $60.0 million. Both net income and EBITDA benefited from $2.6 million (pre-tax) of significant items in the quarter. These items include a $15.5 million curtailment gain on the Company’s benefit plans, partially offset by $7.1 million of stock-based compensation and $6.1 million in asset impairment charges. Net income included a $20.3 million tax benefit related to net securities losses in 2007 and 2008.
• Adjusted EBITDA in the quarter was $57.4 million versus $62.4 million in the prior year. Fourth-quarter 2009 Adjusted EBITDA includes $6.0 million of net investment revenue compared with $33.0 million in the comparable period last year.

IAMTN: It is difficult and dangerous to compare the results between companies as there are too many extraordinary items over the last 12-18 months and the reporting methodologies are wrong. The volume and revenue growth appeared to be moving in the right direction – particularly compared to last year.