- Q1 GAAP revenue of $1.05 billion, up 1% on a reported basis,
or up 3% on an adjusted basis
- Q1 GAAP EPS of $0.41, up 3% or adjusted EPS of $0.45, up
5%
- Consumer Money Transfer transactions grew 6% in Q1 led by
13% growth in Branded Digital transactions
- Branded Digital revenue grew 9% on reported and adjusted
basis
- Raised 2024 full year guidance for revenue and EPS
The Western Union Company (the “Company” or “Western Union”)
(NYSE: WU) today reported first quarter 2024 financial results.
The Company’s first-quarter revenue of $1.05 billion improved 1%
on a reported basis or grew 3% on a constant currency basis, net of
Argentina inflation compared to the prior year period, and
excluding last year’s contribution from Business Solutions.
“This year is off to a positive start with high-single digit
revenue growth in our Branded Digital business,” said Devin
McGranahan, President and Chief Executive Officer, Western Union.
“The acceleration of our digital business was a big driver of the
strong performance in our Consumer Money Transfer business and
positions us well for the remainder of the year. We also continue
to make progress in stabilizing our retail business, with the
second consecutive quarter of positive retail transactions
trends.”
GAAP EPS in the first quarter was $0.41 compared to $0.40 in the
prior year period. Adjusted EPS in the first quarter was $0.45
compared to $0.43 in the prior year period. GAAP and adjusted EPS
in the current period benefited from a lower share count.
Q1 Business Results
- The Company’s Consumer Money Transfer (CMT) segment revenue
increased 3% on a reported and adjusted basis, while transactions
increased 6% compared to the prior year period. Regionally, revenue
increased in MEASA, LACA, and North America. This growth was
partially offset by softness in Europe & CIS and APAC.
- Branded Digital revenue increased 9% on a reported and adjusted
basis with transaction growth of 13%. The Branded Digital business
represented 23% and 31% of total CMT revenues and transactions,
respectively.
- Consumer Services segment revenue grew 5% on a reported basis
and 8% on an adjusted basis, benefiting from the strength of our
Retail Money Order business as well as new services we are
continuing to introduce to our customers.
Q1 Financial Results
- GAAP operating margin in the quarter was 18.3%, compared to
19.7% in the prior year period, and was impacted by higher
operating expense redeployment costs. The adjusted operating margin
was 19.7% compared to 20.5% in the prior year period. GAAP and
adjusted operating margins decreased mainly due to timing of
marketing spend.
- The GAAP effective tax rate in the quarter was 16.0%, compared
to 16.1% in the prior year period. The adjusted effective tax rate
was 15.6% in the quarter, compared to 13.5% in the prior year
period, with the increase primarily due to the effects of the sale
of Business Solutions in the prior period.
2024 Outlook
Based on the performance in the first quarter, the Company
updated full year 2024 revenue and EPS outlook. The outlook assumes
no material changes in macroeconomic conditions.
Revised 2024 Outlook
Previous 2024 Outlook
GAAP
Adjusted
GAAP
Adjusted
Revenue1
$4,125 to $4,200
$4,150 to $4,225
$4,075 to $4,175
$4,100 to $4,200
Operating Margin
18% to 20%
19% to 21%
18% to 20%
19% to 21%
EPS2
$1.62 to $1.72
$1.70 to $1.80
$1.57 to $1.67
$1.65 to $1.75
1 In millions, adjusted revenue excludes
the impact of currency and Argentina inflation 2 The GAAP and
adjusted effective tax rates are expected to be in the mid-teens
range
Non-GAAP Measures
Western Union presents a number of non-GAAP financial measures
because management believes that these metrics provide meaningful
supplemental information in addition to the GAAP metrics and
provide comparability and consistency to prior periods. Constant
currency results assume foreign revenues are translated from
foreign currencies to the U.S. dollar, net of the effect of foreign
currency hedges, at rates consistent with those in the prior year.
The Company estimates Argentina inflation as the revenue growth not
attributable to either transaction growth or the change in price
(revenue divided by principal).
Reconciliations of non-GAAP to comparable GAAP measures are
available in the accompanying schedules and in the “Investor
Relations” section of the Company’s website at
https://ir.westernunion.com.
Additional Statistics
Additional key statistics for the quarter and historical trends
can be found in the supplemental tables included with this press
release. All amounts included in the supplemental tables to this
press release are rounded to the nearest tenth of a million, except
as otherwise noted. As a result, the percentage changes and margins
disclosed herein may not recalculate precisely using the rounded
amounts provided.
Environmental, Social, and Governance
(ESG)
Western Union is committed to making a positive impact. For more
details on how Western Union is addressing some of the most
pressing issues facing society, our shared environment, and our
Company, please view our latest ESG report:
https://corporate.westernunion.com/esg.
Investor and Analyst Conference Call
and Presentation
The Company will host a conference call and webcast at 4:30 p.m.
ET today.
The webcast and presentation will be available at
https://ir.westernunion.com. Registration for the event is
required, so please register at least 15 minutes prior to the
scheduled start time. A webcast replay will be available shortly
after the event.
To listen to the conference call via telephone in the U.S., dial
+1 (719) 359-4580 15 minutes prior to the start of the call,
followed by the meeting ID, which is 989 9147 2894, and the
passcode, which is 665244, or follow this link. To listen to the
conference call via telephone outside the U.S., dial the country
number from the international directory, followed by the meeting
ID, which is 989 9147 2894, and the passcode, which is 665244.
Safe Harbor Compliance Statement for Forward-Looking
Statements
This press release contains certain statements that are
forward-looking within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are not guarantees
of future performance and involve certain risks, uncertainties, and
assumptions that are difficult to predict. Actual outcomes and
results may differ materially from those expressed in, or implied
by, our forward-looking statements. Words such as “expects,”
“intends,” “targets,” “anticipates,” “believes,” “estimates,”
“guides,” “provides guidance,” “provides outlook,” “projects,”
“designed to,” and other similar expressions or future or
conditional verbs such as “may,” “will,” “should,” “would,”
“could,” and “might” are intended to identify such forward-looking
statements. Readers of this press release of The Western Union
Company (the “Company,” “Western Union,” “we,” “our,” or “us”)
should not rely solely on the forward-looking statements and should
consider all uncertainties and risks discussed in the Risk Factors
section and throughout the Annual Report on Form 10-K for the year
ended December 31, 2023. The statements are only as of the date
they are made, and the Company undertakes no obligation to update
any forward-looking statement.
Possible events or factors that could cause results or
performance to differ materially from those expressed in our
forward-looking statements include the following: (i) events
related to our business and industry, such as: changes in general
economic conditions and economic conditions in the regions and
industries in which we operate, including global economic downturns
and trade disruptions, or significantly slower growth or declines
in the money transfer, payment service, and other markets in which
we operate, including downturns or declines related to
interruptions in migration patterns or other events, such as public
health emergencies, epidemics, or pandemics, civil unrest, war,
terrorism, natural disasters, or non-performance by our banks,
lenders, insurers, or other financial services providers; failure
to compete effectively in the money transfer and payment service
industry, including among other things, with respect to price or
customer experience, with global and niche or corridor money
transfer providers, banks and other money transfer and payment
service providers, including digital, mobile and internet-based
services, card associations, and card-based payment providers, and
with digital currencies and related exchanges and protocols, and
other innovations in technology and business models; geopolitical
tensions, political conditions and related actions, including trade
restrictions and government sanctions, which may adversely affect
our business and economic conditions as a whole, including
interruptions of United States or other government relations with
countries in which we have or are implementing significant business
relationships with agents, clients, or other partners;
deterioration in customer confidence in our business, or in money
transfer and payment service providers generally; failure to
maintain our agent network and business relationships under terms
consistent with or more advantageous to us than those currently in
place; our ability to adopt new technology and develop and gain
market acceptance of new and enhanced services in response to
changing industry and consumer needs or trends; mergers,
acquisitions, and the integration of acquired businesses and
technologies into our Company, divestitures, and the failure to
realize anticipated financial benefits from these transactions, and
events requiring us to write down our goodwill; decisions to change
our business mix; changes in, and failure to manage effectively,
exposure to foreign exchange rates, including the impact of the
regulation of foreign exchange spreads on money transfers; changes
in tax laws, or their interpretation, any subsequent regulation,
and unfavorable resolution of tax contingencies; any material
breach of security, including cybersecurity, or safeguards of or
interruptions in any of our systems or those of our vendors or
other third parties; cessation of or defects in various services
provided to us by third-party vendors; our ability to realize the
anticipated benefits from restructuring-related initiatives, which
may include decisions to downsize or to transition operating
activities from one location to another, and to minimize any
disruptions in our workforce that may result from those
initiatives; our ability to attract and retain qualified key
employees and to manage our workforce successfully; failure to
manage credit and fraud risks presented by our agents, clients, and
consumers; adverse rating actions by credit rating agencies; our
ability to protect our trademarks, patents, copyrights, and other
intellectual property rights, and to defend ourselves against
potential intellectual property infringement claims; material
changes in the market value or liquidity of securities that we
hold; restrictions imposed by our debt obligations; (ii) events
related to our regulatory and litigation environment, such as:
liabilities or loss of business resulting from a failure by us, our
agents, or their subagents to comply with laws and regulations and
regulatory or judicial interpretations thereof, including laws and
regulations designed to protect consumers, or detect and prevent
money laundering, terrorist financing, fraud, and other illicit
activity; increased costs or loss of business due to regulatory
initiatives and changes in laws, regulations and industry practices
and standards, including changes in interpretations, in the United
States and abroad, affecting us, our agents or their subagents, or
the banks with which we or our agents maintain bank accounts needed
to provide our services, including related to anti-money laundering
regulations, anti-fraud measures, our licensing arrangements,
customer due diligence, agent and subagent due diligence,
registration and monitoring requirements, consumer protection
requirements, remittances, immigration, and sustainability
reporting including climate-related reporting; liabilities,
increased costs or loss of business and unanticipated developments
resulting from governmental investigations and consent agreements
with, or investigations or enforcement actions by regulators and
other government authorities; liabilities resulting from
litigation, including class-action lawsuits and similar matters,
and regulatory enforcement actions, including costs, expenses,
settlements, and judgments; failure to comply with regulations and
evolving industry standards regarding consumer privacy, data use,
the transfer of personal data between jurisdictions, and
information security, failure to comply with the Dodd-Frank Wall
Street Reform and Consumer Protection Act, as well as regulations
issued pursuant to it and the actions of the Consumer Financial
Protection Bureau (“CFPB”) and similar legislation and regulations
enacted by other governmental authorities in the United States and
abroad related to consumer protection; effects of unclaimed
property laws or their interpretation or the enforcement thereof;
failure to maintain sufficient amounts or types of regulatory
capital or other restrictions on the use of our working capital to
meet the changing requirements of our regulators worldwide; changes
in accounting standards, rules and interpretations, or industry
standards affecting our business; and (iii) other events, such as
catastrophic events and management’s ability to identify and manage
these and other risks.
About Western Union
The Western Union Company (NYSE: WU) is committed to helping
people around the world who aspire to build financial futures for
themselves, their loved ones and their communities. Our leading
cross-border, cross-currency money movement, payments and digital
financial services empower consumers, businesses, financial
institutions and governments—across more than 200 countries and
territories and over 130 currencies—to connect with billions of
bank accounts, millions of digital wallets and cards, and a global
footprint of hundreds of thousands of retail locations. Our goal is
to offer accessible financial services that help people and
communities prosper. For more information, visit
www.westernunion.com.
WU-G
THE WESTERN UNION COMPANY CONDENSED CONSOLIDATED
STATEMENTS OF INCOME (Unaudited) (in millions, except
per share amounts) Three Months Ended March
31,
2024
2023
% Change
Revenues $
1,049.1
$
1,036.9
1%
Expenses: Cost of services
641.3
629.5
2%
Selling, general, and administrative
215.7
202.7
6%
Total expenses
857.0
832.2
3%
Operating income
192.1
204.7
(6)%
Other income/(expense): Interest income
3.1
3.2
(5)%
Interest expense
(26.1)
(25.0)
5%
Other income/(expense), net
0.9
(1.9)
(a) Total other expense, net
(22.1)
(23.7)
(7)%
Income before income taxes
170.0
181.0
(6)%
Provision for income taxes
27.3
29.2
(7)%
Net income $
142.7
$
151.8
(6)%
Earnings per share: Basic $
0.41
$
0.41
0%
Diluted $
0.41
$
0.40
3%
Weighted-average shares outstanding: Basic
344.4
374.4
Diluted
345.7
375.5
___________________________________________
(a)
Calculation not meaningful.
THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in millions, except per share amounts) March 31,
December 31,
2024
2023
Assets Cash and cash equivalents $
1,106.5
$
1,268.6
Settlement assets
3,635.6
3,687.0
Property and equipment, net of accumulated depreciation of $446.1
and $438.8, respectively
88.6
91.4
Goodwill
2,049.5
2,034.6
Other intangible assets, net of accumulated amortization of $685.6
and $685.9, respectively
369.0
380.2
Other assets
804.0
737.0
Total assets $
8,053.2
$
8,198.8
Liabilities and stockholders' equity Liabilities: Accounts
payable and accrued liabilities $
392.7
$
453.0
Settlement obligations
3,635.6
3,687.0
Income taxes payable
668.9
659.5
Deferred tax liability, net
149.4
147.6
Borrowings
2,540.3
2,504.6
Other liabilities
268.4
268.1
Total liabilities
7,655.3
7,719.8
Stockholders' equity: Preferred stock, $1.00 par value; 10
shares authorized; no shares issued
—
—
Common stock, $0.01 par value; 2,000 shares authorized; 339.6
shares and 350.5 shares issued and outstanding as of March 31, 2024
and December 31, 2023, respectively
3.4
3.5
Capital surplus
1,040.6
1,031.9
Accumulated deficit
(485.0)
(389.1)
Accumulated other comprehensive loss
(161.1)
(167.3)
Total stockholders' equity
397.9
479.0
Total liabilities and stockholders' equity $
8,053.2
$
8,198.8
THE WESTERN UNION COMPANY CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS (Unaudited) (in
millions) Three Months Ended March 31,
2024
2023
Cash flows from operating activities Net income $
142.7
$
151.8
Adjustments to reconcile net income to net cash provided by
operating activities: Depreciation
9.2
10.2
Amortization
37.4
36.4
Other non-cash items, net
20.0
19.3
Increase/(decrease) in cash, excluding the effects of acquisitions
and divestitures, resulting from changes in: Other assets
(46.6)
(28.1)
Accounts payable and accrued liabilities
(64.4)
(62.2)
Income taxes payable
8.8
17.2
Other liabilities
(13.1)
(7.3)
Net cash provided by operating activities
94.0
137.3
Cash flows from investing activities Payments for
capitalized contract costs
(2.4)
(31.0)
Payments for internal use software
(21.7)
(19.6)
Purchases of property and equipment
(11.0)
(6.8)
Purchases of settlement investments
(130.2)
(124.7)
Proceeds from the sale of settlement investments
160.2
22.2
Maturities of settlement investments
23.3
22.4
Proceeds from the sale of non-settlement investments
—
100.0
Other investing activities
(24.5)
1.1
Net cash used in investing activities
(6.3)
(36.4)
Cash flows from financing activities Cash dividends and
dividend equivalents paid
(80.5)
(88.1)
Common stock repurchased
(150.6)
(5.1)
Net proceeds from/(repayments of) commercial paper
35.0
(155.0)
Proceeds from exercise of options
—
0.3
Net change in settlement obligations
(136.9)
109.1
Other financing activities
(0.1)
(0.2)
Net cash used in financing activities
(333.1)
(139.0)
Net change in cash and cash equivalents, including settlement, and
restricted cash
(245.4)
(38.1)
Cash and cash equivalents, including settlement, and restricted
cash at beginning of period
1,786.2
2,040.7
Cash and cash equivalents, including settlement, and restricted
cash at end of period $
1,540.8
$
2,002.6
March 31,
2024
2023
Reconciliation of balance sheet cash and cash equivalents to
cash flows: Cash and cash equivalents on balance sheet $
1,106.5
$
1,228.6
Settlement cash and cash equivalents
412.4
737.1
Restricted cash in Other assets
21.9
36.9
Cash and cash equivalents, including settlement, and restricted
cash at end of period $
1,540.8
$
2,002.6
THE WESTERN UNION COMPANY SUMMARY SEGMENT DATA
(Unaudited) (in millions, unless indicated otherwise)
Three Months Ended March 31,
2024
2023
% Change Revenues: Consumer Money Transfer $
962.0
$
938.3
3%
Consumer Services
87.1
83.2
5%
Business Solutions (a)
—
15.4
(d)
Total consolidated revenues $
1,049.1
$
1,036.9
1%
Segment operating income: Consumer Money Transfer $
187.6
$
177.8
6%
Consumer Services
18.6
32.1
(42)%
Business Solutions (a)
—
1.9
(d)
Total segment operating income
206.2
211.8
(3)%
Redeployment program costs (b)
(14.0)
(7.1)
96%
Acquisition, separation, and integration costs (c)
(0.1)
—
(d)
Total consolidated operating income $
192.1
$
204.7
(6)%
Segment operating income margin Consumer Money Transfer
19.5%
18.9%
0.6%
Consumer Services
21.3%
38.6%
(17.3)%
Business Solutions (a)
(d)
12.7%
(d)
___________________________________________
(a)
On August 4, 2021, the Company
entered into an agreement to sell its Business Solutions business.
The sale was completed with the final closing on July 1, 2023.
(b)
Represents severance, expenses
associated with streamlining the Company's organizational and legal
structure, and other expenses associated with the Company's program
to redeploy expenses in its cost base through optimizations in
vendor management, real estate, marketing, and people strategy, as
previously announced in October 2022. Expenses incurred under the
program also include non-cash impairments of operating lease
right-of-use assets and property and equipment. The expenses are
not included in the measurement of segment operating income
provided to the Chief Operating Decision Maker (“CODM”) for
purposes of performance assessment and resource allocation. These
expenses are therefore excluded from the Company's segment
operating income results.
(c)
Represents the impact from
expenses incurred in connection with the Company's acquisition and
divestiture activity, including for the review and closing of these
transactions, and integration costs directly related to the
Company’s acquisitions. Beginning in 2024, the Company changed its
segment reporting methodology to no longer allocate these costs to
its segments. These costs were previously allocated entirely to
Consumer Services, and the amount included in the Consumer Services
segment was immaterial for the three months ended March 31, 2023.
The expenses are no longer included in the measurement of segment
operating income provided to the CODM for purposes of performance
assessment and resource allocation. These expenses are therefore
excluded from the Company's segment operating income results.
(d)
Calculation not meaningful.
THE WESTERN UNION COMPANY KEY STATISTICS
(Unaudited) Notes*
1Q23
2Q23
3Q23
4Q23
FY2023
1Q24
Consolidated Metrics Revenues (GAAP) - YoY % change
(10)%
3%
1%
(4)%
(3)%
1%
Adjusted revenues (non-GAAP) - YoY % change (a)
(3)%
6%
4%
(1)%
1%
3%
Operating margin (GAAP)
19.7%
20.7%
19.2%
15.1%
18.8%
18.3%
Adjusted operating margin (non-GAAP) (b)
20.5%
21.8%
19.6%
16.1%
19.6%
19.7%
Consumer Money Transfer (CMT) Segment Metrics
Revenues (GAAP) - YoY % change
(6)%
4%
4%
(1)%
0%
3%
Adjusted revenues (non-GAAP) - YoY % change (g)
(5)%
5%
3%
(1)%
0%
3%
Transactions (in millions)
65.3
70.6
70.6
72.9
279.4
69.0
Transactions - YoY % change
(6)%
4%
5%
5%
2%
6%
Cross-border principal, as reported - YoY % change
(3)%
17%
13%
8%
9%
7%
Cross-border principal (constant currency) - YoY % change (h)
(1)%
18%
11%
7%
9%
7%
Operating margin
18.9%
21.5%
19.0%
15.3%
18.7%
19.5%
Branded Digital revenues (GAAP) - YoY % change (gg)
(7)%
(2)%
3%
4%
0%
9%
Branded Digital foreign currency translation and Argentina
inflation impact (k)
1%
0%
0%
0%
0%
0%
Adjusted Branded Digital revenues (non-GAAP) - YoY % change (gg)
(6)%
(2)%
3%
4%
0%
9%
Branded Digital transactions - YoY % change (gg)
7%
12%
12%
13%
11%
13%
CMT Segment Regional Metrics - YoY % change NA region
revenues (GAAP) (aa), (bb)
(8)%
(8)%
(3)%
(1)%
(5)%
2%
NA region foreign currency translation impact (k)
0%
1%
0%
0%
0%
0%
Adjusted NA region revenues (non-GAAP) (aa), (bb)
(8)%
(7)%
(3)%
(1)%
(5)%
2%
NA region transactions (aa), (bb)
1%
4%
7%
6%
5%
6%
EU & CIS region revenues (GAAP) (aa), (cc)
(16)%
(12)%
(9)%
(8)%
(11)%
(5)%
EU & CIS region foreign currency translation impact (k)
3%
2%
(1)%
(1)%
0%
0%
Adjusted EU & CIS region revenues (non-GAAP) (aa), (cc)
(13)%
(10)%
(10)%
(9)%
(11)%
(5)%
EU & CIS region transactions (aa), (cc)
(23)%
(1)%
0%
4%
(6)%
5%
MEASA region revenues (GAAP) (aa), (dd)
5%
66%
42%
12%
31%
16%
MEASA region foreign currency translation impact (k)
1%
1%
0%
0%
1%
1%
Adjusted MEASA region revenues (non-GAAP) (aa), (dd)
6%
67%
42%
12%
32%
17%
MEASA region transactions (aa), (dd)
(3)%
8%
9%
7%
6%
6%
LACA region revenues (GAAP) (aa), (ee)
15%
6%
10%
2%
8%
7%
LACA region foreign currency translation and Argentina inflation
impact (k)
(1)%
(2)%
(5)%
(4)%
(3)%
(2)%
Adjusted LACA region revenues (non-GAAP) (aa), (ee)
14%
4%
5%
(2)%
5%
5%
LACA region transactions (aa), (ee)
9%
8%
9%
4%
7%
3%
APAC region revenues (GAAP) (aa), (ff)
(8)%
(7)%
(8)%
(7)%
(7)%
(10)%
APAC region foreign currency translation impact (k)
3%
3%
1%
2%
2%
4%
Adjusted APAC region revenues (non-GAAP) (aa), (ff)
(5)%
(4)%
(7)%
(5)%
(5)%
(6)%
APAC region transactions (aa), (ff)
(2)%
1%
0%
6%
1%
7%
% of CMT Revenue NA region revenues (aa), (bb)
38%
35%
37%
39%
37%
38%
EU & CIS region revenues (aa), (cc)
26%
24%
24%
25%
25%
24%
MEASA region revenues (aa), (dd)
19%
26%
23%
18%
21%
21%
LACA region revenues (aa), (ee)
11%
10%
11%
12%
11%
12%
APAC region revenues (aa), (ff)
6%
5%
5%
6%
6%
5%
Branded Digital revenues (aa), (gg)
22%
21%
21%
23%
22%
23%
Consumer Services (CS) Revenues (GAAP) - YoY % change
23%
10%
22%
(1)%
13%
5%
Adjusted revenues (non-GAAP) - YoY % change (i)
24%
16%
24%
6%
17%
8%
Operating margin
38.6%
22.0%
27.5%
26.6%
28.7%
21.3%
% of Total Company Revenue (GAAP) Consumer Money
Transfer segment revenues
91%
92%
93%
93%
92%
92%
Consumer Services segment revenues
8%
7%
7%
7%
7%
8%
Business Solutions segment revenues
1%
1%
0%
0%
1%
0%
* See the “Notes to Key Statistics” section of the press
release for the applicable Note references and the reconciliation
of non-GAAP financial measures, unless already reconciled herein.
THE WESTERN UNION COMPANY NOTES TO KEY STATISTICS
(Unaudited) (in millions, unless indicated otherwise)
Western Union’s management believes the non-GAAP financial
measures presented within this press release and related tables
provide meaningful supplemental information regarding the Company’s
results to assist management, investors, analysts, and others in
understanding the Company’s financial results and to better analyze
operating, profitability, and other financial performance trends in
the Company’s underlying business because they provide consistency
and comparability to prior periods or eliminate currency
volatility, increasing the comparability of the Company's
underlying results and trends. A non-GAAP financial measure
should not be considered in isolation or as a substitute for the
most comparable GAAP financial measure. A non-GAAP financial
measure reflects an additional way of viewing aspects of the
Company’s operations that, when viewed with the Company’s GAAP
results and the reconciliation to the corresponding GAAP financial
measure, provides a more complete understanding of the Company’s
business. Users of the financial statements are encouraged to
review the Company’s financial statements and publicly-filed
reports in their entirety and not to rely on any single financial
measure. A reconciliation of non-GAAP financial measures to the
most directly comparable GAAP financial measures is included below,
where not previously reconciled above.
Notes
1Q23
2Q23
3Q23
4Q23
FY2023
1Q24
Consolidated Metrics (a) Revenues (GAAP) $
1,036.9
$
1,170.0
$
1,097.8
$
1,052.3
$
4,357.0
$
1,049.1
Foreign currency translation and Argentina inflation impact (k)
11.9
8.2
(5.9)
1.2
15.4
5.6
Revenues, constant currency, net of Argentina inflation (non-GAAP)
1,048.8
1,178.2
1,091.9
1,053.5
4,372.4
1,054.7
Less Business Solutions revenues, constant currency (non-GAAP) (k),
(n)
(16.0)
(13.9)
—
—
(29.9)
—
Adjusted revenues (non-GAAP) $
1,032.8
$
1,164.3
$
1,091.9
$
1,053.5
$
4,342.5
$
1,054.7
Prior year revenues (GAAP) $
1,155.7
$
1,138.3
$
1,089.6
$
1,091.9
$
4,475.5
$
1,036.9
Less prior year revenues from Business Solutions (GAAP) (n)
(89.1)
(35.7)
(42.6)
(29.5)
(196.9)
(15.4)
Adjusted prior year revenues (non-GAAP) $
1,066.6
$
1,102.6
$
1,047.0
$
1,062.4
$
4,278.6
$
1,021.5
Revenues (GAAP) - YoY % change
(10)%
3%
1%
(4)%
(3)%
1%
Revenues, constant currency, net of Argentina inflation (non-GAAP)
- YoY% change
(9)%
4%
0%
(4)%
(2)%
2%
Adjusted revenues (non-GAAP) - YoY % change
(3)%
6%
4%
(1)%
1%
3%
(b) Operating income (GAAP) $
204.7
$
242.6
$
210.9
$
159.3
$
817.5
$
192.1
Acquisition, separation, and integration costs (m)
—
2.4
0.5
0.2
3.1
0.1
Redeployment program costs (o)
7.1
8.3
4.1
10.0
29.5
14.0
Less Business Solutions operating income (n)
(1.9)
(1.7)
—
—
(3.6)
—
Adjusted operating income (non-GAAP) $
209.9
$
251.6
$
215.5
$
169.5
$
846.5
$
206.2
Operating margin (GAAP)
19.7%
20.7%
19.2%
15.1%
18.8%
18.3%
Adjusted operating margin (non-GAAP)
20.5%
21.8%
19.6%
16.1%
19.6%
19.7%
(c) Net income (GAAP) $
151.8
$
176.2
$
171.0
$
127.0
$
626.0
$
142.7
Acquisition, separation, and integration costs (m)
—
2.4
0.5
0.2
3.1
0.1
Business Solutions gain (n)
—
—
(18.0)
—
(18.0)
—
Redeployment program costs (o)
7.1
8.3
4.1
10.0
29.5
14.0
Income tax expense/(benefit) from other adjustments (m), (n), (o)
3.7
3.8
1.7
(4.6)
4.6
(1.5)
Adjusted net income (non-GAAP) $
162.6
$
190.7
$
159.3
$
132.6
$
645.2
$
155.3
(d) Net income (GAAP) $
151.8
$
176.2
$
171.0
$
127.0
$
626.0
$
142.7
Provision for income taxes
29.2
40.2
33.3
17.1
119.8
27.3
Interest income
(3.2)
(4.2)
(3.6)
(4.6)
(15.6)
(3.1)
Interest expense
25.0
27.0
27.0
26.3
105.3
26.1
Depreciation and amortization
46.6
45.9
46.0
45.1
183.6
46.6
Other (income)/expense, net
1.9
3.4
1.2
(6.5)
—
(0.9)
Business Solutions gain (n)
—
—
(18.0)
—
(18.0)
—
Acquisition, separation, and integration costs (m)
—
2.4
0.5
0.2
3.1
0.1
Redeployment program costs (o)
7.1
8.3
4.1
10.0
29.5
14.0
Less Business Solutions operating income (n)
(1.9)
(1.7)
—
—
(3.6)
—
Adjusted EBITDA (non-GAAP) (l) $
256.5
$
297.5
$
261.5
$
214.6
$
1,030.1
$
252.8
(e) Effective tax rate (GAAP)
16%
19%
16%
12%
16%
16%
Other adjustments (m), (n), (o)
(2)%
(3)%
1%
2%
(1)%
0%
Adjusted effective tax rate (non-GAAP)
14%
16%
17%
14%
15%
16%
(f) Diluted earnings per share (GAAP) ($- dollars) $
0.40
$
0.47
$
0.46
$
0.35
$
1.68
$
0.41
Pretax impacts from the following: Acquisition, separation, and
integration costs (m)
—
0.01
—
—
0.01
—
Business Solutions gain (n)
—
—
(0.05)
—
(0.05)
—
Redeployment program costs (o)
0.02
0.02
0.01
0.03
0.08
0.04
Income tax expense/(benefit) impacts from the following: Other
adjustments (m), (n), (o)
0.01
0.01
0.01
(0.01)
0.02
—
Adjusted diluted earnings per share (non-GAAP) ($- dollars) $
0.43
$
0.51
$
0.43
$
0.37
$
1.74
$
0.45
CMT Segment Metrics (g) Revenues (GAAP) $
938.3
$
1,072.2
$
1,019.0
$
975.5
$
4,005.0
$
962.0
Foreign currency translation and Argentina inflation impact (k)
10.6
4.5
(7.1)
(3.4)
4.6
2.5
Revenues, constant currency, net of Argentina inflation (non-GAAP)
$
948.9
$
1,076.7
$
1,011.9
$
972.1
$
4,009.6
$
964.5
Prior year revenues (GAAP) $
999.0
$
1,026.9
$
982.4
$
985.2
$
3,993.5
$
938.3
Revenues (GAAP) - YoY % change
(6)%
4%
4%
(1)%
0%
3%
Adjusted revenues (non-GAAP) - YoY % change
(5)%
5%
3%
(1)%
0%
3%
(h) Cross-border principal, as reported ($- billions) $
23.0
$
27.5
$
26.0
$
25.2
$
101.7
$
24.6
Foreign currency translation impact (k)
0.5
0.0
(0.3)
(0.2)
0.0
0.0
Cross-border principal, constant currency ($- billions) $
23.5
$
27.5
$
25.7
$
25.0
$
101.7
$
24.6
Prior year cross-border principal, as reported ($- billions) $
23.8
$
23.4
$
23.0
$
23.4
$
93.6
$
23.0
Cross-border principal, as reported - YoY % change
(3)%
17%
13%
8%
9%
7%
Cross-border principal, constant currency - YoY % change
(1)%
18%
11%
7%
9%
7%
CS Segment Metrics (i) Revenues (GAAP) $
83.2
$
83.5
$
78.8
$
76.8
$
322.3
$
87.1
Foreign currency translation and Argentina inflation impact (k)
0.6
4.1
1.2
4.8
10.7
3.0
Revenues, constant currency, net of Argentina inflation (non-GAAP)
$
83.8
$
87.6
$
80.0
$
81.6
$
333.0
$
90.1
Prior year revenues (GAAP) $
67.6
$
75.7
$
64.6
$
77.2
$
285.1
$
83.2
Revenues (GAAP) - YoY % change
23%
10%
22%
(1)%
13%
5%
Adjusted revenues (non-GAAP) - YoY % change
24%
16%
24%
6%
17%
8%
Business Solutions Segment Metrics (j) Revenues
(GAAP) $
15.4
$
14.3
$
—
$
—
$
29.7
$
—
Foreign currency translation impact (k)
0.6
(0.4)
—
—
0.2
—
Revenues, constant currency (non-GAAP) $
16.0
$
13.9
$
—
$
—
$
29.9
$
—
2024 Consolidated Outlook Metrics
Notes Range Revenues (GAAP) $
4,125
$
4,200
Foreign currency translation and Argentina inflation impact (k)
25
25
Revenues, adjusted (non-GAAP) $
4,150
$
4,225
Range Operating margin (GAAP)
18%
20%
Redeployment program costs (o)
1%
1%
Impact from acquisition, separation, and integration costs (m)
0%
0%
Operating margin, adjusted (non-GAAP)
19%
21%
Range Earnings per share (GAAP) ($- dollars) $
1.62
$
1.72
Redeployment program costs (o)
0.08
0.08
Acquisition, separation, and integration costs (m)
—
—
Income taxes associated with these adjustments (m), (o)
—
—
Earnings per share, adjusted (non-GAAP) ($- dollars) $
1.70
$
1.80
Non-GAAP related notes: (k)
Represents the impact from the fluctuation in exchange rates
between all foreign currency denominated amounts and the United
States dollar. Constant currency results exclude any benefit or
loss caused by foreign exchange fluctuations between foreign
currencies and the United States dollar, net of foreign currency
hedges, which would not have occurred if there had been a constant
exchange rate. Constant currency results also reflect the impact of
Argentina inflation, where indicated, due to its economy being
hyperinflationary. The Company estimates Argentina inflation as the
revenue growth not attributable to either transaction growth or the
change in price (revenue divided by principal). (l) Earnings
before Interest, Taxes, Depreciation, and Amortization (“EBITDA”)
results from taking operating income and adjusting for depreciation
and amortization expenses. EBITDA results provide an additional
performance measurement calculation which helps neutralize the
operating income effect of assets acquired in prior periods.
(m) Represents the impact from expenses incurred in connection with
the Company's acquisition and divestiture activity, including for
the review and closing of these transactions, and integration costs
directly related to the Company's acquisitions. Beginning in 2024,
the expenses are not included in the measurement of segment
operating income provided to the CODM for purposes of performance
assessment and resource allocation. (n) During 2021, the
Company entered into an agreement to sell its Business Solutions
business to Goldfinch Partners LLC and The Baupost Group LLC
(collectively, the “Buyer”). The sale was completed in three
closings, the first of which occurred on March 1, 2022 with the
entirety of the cash consideration collected at that time and
allocated to the closings on a relative fair value basis. The final
closing, which included the European Union operations, occurred on
July 1, 2023 and resulted in a gain of $18.0 million. Revenues have
been adjusted to exclude the carved out financial information for
the Business Solutions business to compare the year-over-year
changes and trends in the Company's continuing businesses,
excluding the effects of this divestiture. (o) Represents
severance, expenses associated with streamlining the Company's
organizational and legal structure, and other expenses associated
with the Company's program to redeploy expenses in its cost base
through optimizations in vendor management, real estate, marketing,
and people strategy as previously announced in October 2022.
Expenses incurred under the program also include non-cash
impairments of operating lease right-of-use assets and property and
equipment. The expenses are not included in the measurement of
segment operating income provided to the CODM for purposes of
performance assessment and resource allocation. The Company has
also excluded a tax benefit directly associated with streamlining
the Company’s legal structure in the fourth quarter of 2023 from
its measures of adjusted net income, adjusted effective tax rate,
and adjusted diluted earnings per share.
Other notes: (aa) Geographic split for
transactions and revenue, including transactions initiated
digitally, as earlier defined, is determined entirely based upon
the region where the money transfer is initiated. (bb)
Represents the North America (United States and Canada) (“NA”)
region of the Company's Consumer Money Transfer segment.
(cc) Represents the Europe and the Commonwealth of Independent
States (“EU & CIS”) region of the Company's Consumer Money
Transfer segment. (dd) Represents the Middle East, Africa,
and South Asia (“MEASA”) region of the Company's Consumer Money
Transfer segment, including India and certain South Asian
countries, which consist of Bangladesh, Bhutan, Maldives, Nepal,
and Sri Lanka. (ee) Represents the Latin America and the
Caribbean (“LACA”) region of the Company’s Consumer Money Transfer
segment, including Mexico. (ff) Represents the Asia Pacific
(“APAC”) region of the Company’s Consumer Money Transfer segment.
(gg) Represents transactions conducted and funded through
websites and mobile applications marketed under the Company’s
brands (“Branded Digital”).
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240424544701/en/
Media Relations: Brad Jones media@westernunion.com
Investor Relations: Tom Hadley
WesternUnion.IR@westernunion.com
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