International Money Express(US:IMXI)2021-05-10 20:01Financial Performance - Total revenues for Q1 2021 were $94,577,000, a 22.5% increase from $77,251,000 in Q1 2020[16] - Net income for Q1 2021 was $8,977,000, compared to $5,688,000 in Q1 2020, representing a 57.5% increase[16] - Operating income increased to $13,490,000 in Q1 2021 from $9,638,000 in Q1 2020, reflecting a 39.1% growth[16] - Earnings per share for Q1 2021 were $0.23, compared to $0.15 in Q1 2020, reflecting a 53.3% increase[16] - For the three months ended March 31, 2021, total revenues increased to $94,577,000 from $77,251,000 in the same period of 2020, representing a growth of approximately 22.5%[33] - Net income for the three months ended March 31, 2021, was $9.0 million, compared to $5.7 million in the same period of 2020, reflecting a 57.5% increase[113] - Adjusted Net Income for the three months ended March 31, 2021, was $10.6 million, representing a 40.0% increase from $7.6 million in the same period of 2020[129] - Adjusted EBITDA for the three months ended March 31, 2021, was $16.8 million, a 27.4% increase from $13.2 million for the same period in 2020[138] Cash Flow and Liquidity - The company experienced a net cash used in operating activities of $32,406,000 in Q1 2021, compared to a net cash provided of $18,780,000 in Q1 2020[18] - Net cash used in operating activities was $32.4 million for the three months ended March 31, 2021, a decrease of $51.2 million from $18.8 million in the same period of 2020[155] - Net cash used in investing activities increased to $1.9 million for the three months ended March 31, 2021, compared to $0.9 million for the same period in 2020, due to higher purchases of property and equipment[158] - Net cash provided by financing activities was $14.5 million for the three months ended March 31, 2021, primarily from a $15.0 million draw on the revolving credit facility[159] - The company expects to fund its liquidity requirements through internally generated funds and borrowings under its revolving credit facility[143] Assets and Liabilities - Cash and cash equivalents decreased to $55,087,000 as of March 31, 2021, down from $74,907,000 at the end of 2020[18] - Total assets increased to $286,803,000 as of March 31, 2021, compared to $259,473,000 at the end of 2020, marking a 10.5% growth[15] - Current liabilities rose to $87,512,000 as of March 31, 2021, compared to $83,941,000 at the end of 2020, an increase of 4.5%[15] - The company has a total debt of $102,468,000 as of March 31, 2021, up from $89,383,000 at the end of 2020, reflecting a 14.6% increase[48] - Total contractual obligations as of March 31, 2021, amounted to $117.1 million, including $102.5 million in principal payments and $9.7 million in interest payments[161] Operational Metrics - Wire transfer and money order fees, net, rose to $80,912,000 in Q1 2021, compared to $67,095,000 in Q1 2020, marking an increase of about 20.5%[33] - Total remittances processed reached approximately 8.4 million in Q1 2021, a 19% increase compared to the same period in 2020[89] - Principal amount sent through the company's services increased by approximately 30% year-over-year for the three months ended March 31, 2021[89] - Service charges from agents and banks increased by $11.2 million to $63.4 million, primarily due to the increase in transaction volume[116] Tax and Regulatory - The total tax provision for Q1 2021 was $3.174 million, up from $2.080 million in Q1 2020, indicating a 52.7% increase[73] - The effective income tax rate for Q1 2021 was influenced by state taxes and non-deductible expenses, with a total tax expense of $3.174 million[74] - The company continues to enhance compliance programs to address regulatory requirements, which may lead to increased costs in the future[94] - The company qualifies as an "emerging growth company" under the JOBS Act, allowing it to benefit from certain reporting exemptions until specific revenue or market value thresholds are met[100] Employee Compensation - Salaries and benefits increased by $2.5 million to $9.9 million for the three months ended March 31, 2021, primarily due to increased wages and commission expenses[117] - The company recognized stock-based compensation expense of approximately $0.6 million for stock options for both the three months ended March 31, 2021 and 2020[60] - The company granted 158,705 restricted stock units (RSUs) with an average grant price of $14.17 during the three months ended March 31, 2021[64] - The company recognized compensation expense for performance stock units (PSUs) of $63,600 for the three months ended March 31, 2021[67] Foreign Exchange and International Operations - The company reported a foreign exchange gain of $13,049,000 in Q1 2021, up from $9,554,000 in Q1 2020, a 36.8% increase[16] - The average exchange rate for the U.S. dollar to the Mexican peso was 20.33 for the three months ended March 31, 2021, compared to 19.97 for the same period in 2020[173] - Revenues from foreign subsidiaries represented less than 1% of consolidated revenues for the three months ended March 31, 2021[172] Debt and Interest Rates - The current portion of long-term debt is $7,682,000, which is net of debt origination costs of approximately $0.6 million[48] - The effective interest rates for the term loan facility and revolving credit facility were 5.32% and 0.96%, respectively, for the three months ended March 31, 2021[47] - A hypothetical 1% increase in interest rates would increase cash interest expense on the term loan facility by approximately $0.9 million per annum[175] - The provision for credit losses was approximately $0.2 million for the three months ended March 31, 2021, representing 0.2% of total revenues, down from $0.7 million or 1% of total revenues in the same period of 2020[180]