MONEYGRAM INTERNATIONAL INC - FORM 8-K - EX-99.1

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8-K - FORM 8-K - MONEYGRAM INTERNATIONAL INC	c57034e8vk.htm

Exhibit 99.1

TABLE ONE
MONEYGRAM INTERNATIONAL, INC.
CONSOLIDATED STATEMENTS OF INCOME (LOSS)
REVISED AS OF MARCH 15, 2010
(Unaudited)


	Three Months Ended									Year Ended
	December 31,						2009 vs			December 31,						2009 vs
*(Amounts in thousands, except per share data)*	2009			2008			2008			2009			2008			2008


REVENUE
Fee and other revenue	$	289,393		$	274,978		$	14,415		$	1,130,893		$	1,105,676		$	25,217
Investment revenue		6,224			33,836			(27,612	)		33,219			162,130			(128,911	)
Net securities gains (losses)		763			10,155			(9,392	)		7,790			(340,688	)		348,478

Total revenue		296,380			318,969			(22,589	)		1,171,902			927,118			244,784
Fee commissions expense		128,445			124,590			3,855			497,105			502,317			(5,212	)
Investment commissions expense		234			819			(585	)		1,362			102,292			(100,930	)

Total commissions expense		128,679			125,409			3,270			498,467			604,609			(106,142	)

Net revenue		167,701			193,560			(25,859	)		673,435			322,509			350,926


EXPENSES
Compensation and benefits		40,819			50,604			(9,785	)		199,053			224,580			(25,527	)
Transaction and operations support		86,054			68,012			18,042			284,277			219,905			64,372
Occupancy, equipment and supplies		11,908			11,312			596			47,425			45,994			1,431
Interest expense		28,095			28,389			(294	)		107,911			95,020			12,891
Depreciation and amortization		13,257			14,275			(1,018	)		57,091			56,672			419
Valuation loss on embedded derivatives		—			—			—			—			16,030			(16,030	)
Debt extinguishment loss		—			—			—			—			1,499			(1,499	)

Total expenses		180,133			172,592			7,541			695,757			659,700			36,057

(Loss) income before income taxes		(12,432	)		20,968			(33,400	)		(22,322	)		(337,191	)		314,869
Income tax benefit		(20,306	)		(101,893	)		81,587			(20,416	)		(75,806	)		55,390

NET INCOME (LOSS)	$	7,874		$	122,861		$	(114,987	)	$	(1,906	)	$	(261,385	)	$	259,479


Basic (loss) earnings per common share	$	(0.29	)	$	0.23		$	(0.52	)	$	(1.48	)	$	(4.19	)	$	2.71
Diluted (loss) earnings per common share	$	(0.29	)	$	0.22		$	(0.51	)	$	(1.48	)	$	(4.19	)	$	2.71

Net (loss) income available to common stockholders:
Net income (loss) as reported	$	7,874		$	122,861		$	(114,987	)	$	(1,906	)	$	(261,385	)	$	259,479
Accrued preferred stock dividends		(29,168	)		(25,782	)		(3,386	)		(110,279	)		(76,593	)		(33,686	)
Accretion recognized on preferred stock		(2,592	)		(2,545	)		(47	)		(10,213	)		(7,736	)		(2,477	)
Undistributed earnings allocated to preferred stock		—			(75,977	)		75,977			—			—			—

Net (loss) income available to common stockholders	$	(23,886	)	$	18,557		$	(118,420	)	$	(122,398	)	$	(345,714	)	$	223,316
										-


Weighted-average outstanding common shares ⁽¹⁾		82,505			82,464			41			82,499			82,456			43

⁽¹⁾ The following potential common shares are excluded from diluted (loss) earnings per common share as their effect is anti-dilutive. All potential common shares are anti-dilutive in periods of net loss available to common stockholders.
Shares related to stock options and restricted stock		38,156			2,972						21,664			3,704
Shares related to preferred stock		381,749			337,637						381,749			337,637

TABLE TWO
MONEYGRAM INTERNATIONAL, INC.
SEGMENT RESULTS
(Unaudited)


Global Funds Transfer
	Three Months Ended									Year Ended
	December 31,						2009 vs			December 31,						2009 vs
*(Amounts in thousands)*	2009			2008			2008			2009			2008			2008


Money transfer revenue:
Fee and other revenue	$	230,649		$	217,035		$	13,614		$	893,076		$	870,074		$	23,002
Investment revenue		30			420			(390	)		163			1,873			(1,710	)
Bill payment revenue:
Fee and other revenue		33,099			34,731			(1,632	)		134,535			141,169			(6,634	)
Investment revenue		25			9			16			76			38			38

Total revenue		263,803			252,195			11,608			1,027,850			1,013,154			14,696

Commissions expense		125,536			121,331			4,205			488,116			491,932			(3,816	)

Net revenue	$	138,267		$	130,864		$	7,403		$	539,734		$	521,222		$	18,512

Operating income	$	28,967		$	29,198		$	(231	)	$	85,047		$	139,428		$	(54,381	)


Operating margin		11.0	%		11.6	%					8.3	%		13.8	%


Financial Paper Products
	Three Months Ended									Year Ended
	December 31,						2009 vs			December 31,						2009 vs
*(Amounts in thousands)*	2009			2008			2008			2009			2008			2008


Money order revenue:
Fee and other revenue	$	16,988		$	14,995		$	1,993		$	69,296		$	59,954		$	9,342
Investment revenue		1,114			5,702			(4,588	)		5,584			26,357			(20,773	)
Official check revenue:
Fee and other revenue		7,486			4,511			2,975			23,690			18,061			5,629
Investment revenue		4,550			27,687			(23,137	)		24,213			133,820			(109,607	)

Total revenue		30,138			52,895			(22,757	)		122,783			238,192			(115,409	)
Commissions expense		2,636			3,476			(840	)		8,295			110,310			(102,015	)

Net revenue	$	27,502		$	49,419		$	(21,917	)	$	114,488		$	127,882		$	(13,394	)

Operating income	$	1,360		$	24,069		$	(22,709	)	$	27,372		$	30,169		$	(2,797	)

Operating margin		4.5	%		45.5	%					22.3	%		12.7	%

TABLE THREE
MONEYGRAM INTERNATIONAL, INC.
EBITDA AND ADJUSTED EBITDA
REVISED AS OF MARCH 15, 2010
(Unaudited)


	Three Months Ended						Year Ended
	December 31,						December 31,
*(Amounts in thousands)*	2009			2008			2009			2008


(Loss) income before income taxes	$	(12,432	)	$	20,968		$	(22,322	)	$	(337,191	)
Interest expense		28,095			28,389			107,911			95,020
Depreciation and amortization		13,257			14,275			57,091			56,672
Amortization of agent signing bonuses		10,867			9,452			35,280			37,261

EBITDA		39,787			73,084			177,960			(148,238	)

Significant items impacting EBITDA:
Net securities (gains) losses		(763	)		(10,155	)		(7,790	)		340,688
Gain on security previously priced at zero		—			(10,456	)		—			(10,456	)
Severance and related costs ⁽¹⁾		543			—			4,353			16,653
Asset impairment charges ⁽²⁾		6,062			8,809			18,329			8,809
Stock-based compensation expense		7,105			1,097			14,152			3,691
Net curtailment (gain) loss on benefit plans		(15,537	)		—			(14,339	)		1,000
Legal accruals ⁽³⁾		20,250			—			54,750			—
Valuation loss on embedded derivatives⁽⁴⁾		—			—			—			16,030
Transaction costs related to the recapitalization		—			—			—			7,733
Debt extinguishment loss ⁽⁵⁾		—			—			—			1,499
Valuation loss on interest rate swaps ⁽⁶⁾		—			—			—			27,735

Adjusted EBITDA	$	57,447		$	62,379		$	247,415		$	265,144


⁽¹⁾		Severance and related costs from executive terminations.

⁽²⁾		Includes impairment charges related to goodwill, intangible assets and fixed assets.

⁽³⁾		Legal accruals related to securities litigation, stockholder derivative claims, a patent lawsuit and a settlement agreement with the Federal Trade Commission.

⁽⁴⁾		Change in the fair value of embedded derivatives in our preferred stock.

⁽⁵⁾		Relates to the amendment of the Senior Credit Facility during the recapitalization.

⁽⁶⁾		Loss upon the termination of interest rate swaps.

TABLE FOUR
MONEYGRAM INTERNATIONAL, INC.
CONSOLIDATED BALANCE SHEETS
REVISED AS OF MARCH 15, 2010
(Unaudited)


	December 31,			December 31,
*(Amounts in thousands, except share and per share data)*	2009			2008
ASSETS
Cash and cash equivalents	$	—		$	—
Cash and cash equivalents (substantially restricted)		3,776,824			4,077,381
Receivables, net (substantially restricted)		1,054,381			1,264,885
Trading investments and related put options (substantially restricted)		26,951			47,990
Available-for-sale investments (substantially restricted)		298,633			438,774
Property and equipment		127,972			156,263
Intangible assets		7,680			14,548
Goodwill		425,630			434,337
Other assets		211,592			208,118

Total assets	$	5,929,663		$	6,642,296


LIABILITIES
Payment service obligations	$	4,843,454		$	5,437,999
Debt		796,791			978,881
Pension and other postretirement benefits		119,170			130,900
Accounts payable and other liabilities		188,933			134,040

Total liabilities		5,948,348			6,681,820


MEZZANINE EQUITY
Participating Convertible Preferred Stock-Series B, $0.01 par value, 800,000 shares authorized, 495,000 shares issued and outstanding		539,084			458,408
Participating Convertible Preferred Stock-Series B-1, $0.01 par value, 500,000 shares authorized, 272,500 shares issued and outstanding		325,244			283,804

Total mezzanine equity		864,328			742,212


STOCKHOLDERS’ DEFICIT
Preferred shares, $0.01 par value, none issued		—			—
Common shares, $0.01 par value, 1,300,000,000 shares authorized, 88,556,077 shares issued		886			886
Additional paid-in capital		—			62,324
Retained loss		(694,914	)		(649,254	)
Unearned employee benefits		(8	)		(424	)
Accumulated other comprehensive loss		(35,671	)		(42,707	)
Treasury stock: 6,040,958 and 5,999,175 shares at December 31, 2009 and December 31, 2008, respectively		(153,306	)		(152,561	)

Total stockholders’ deficit		(883,013	)		(781,736	)

Total liabilities, mezzanine equity and stockholders’ deficit	$	5,929,663		$	6,642,296

TABLE FIVE
MONEYGRAM INTERNATIONAL, INC.
ASSETS IN EXCESS OF PAYMENT SERVICE OBLIGATIONS
(Unaudited)


	December 31,			September 30,			June 30,			March 31,
*(Amounts in thousands)*	2009			2009			2009			2009


Cash and cash equivalents	$	3,776,824		$	3,876,105		$	3,973,685		$	3,904,783
Receivables, net		1,054,381			958,937			1,098,388			1,117,184
Trading investments and related put options		26,951			25,804			37,309			50,127
Available-for-sale investments		298,633			324,942			357,432			415,827

		5,156,789			5,185,788			5,466,814			5,487,921
Payment service obligations		(4,843,454	)		(4,775,290	)		(5,079,941	)		(5,067,167	)

Assets in excess of payment service obligations	$	313,335		$	410,498		$	386,873		$	420,754

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