MoneyGram International Reports Third Quarter 2009 Financial Results

Abstract

October 30, 2009 - MoneyGram International, Inc. (NYSE:MGI), a leading global payment services company, today reported financial results for the third quarter of 2009.* Money transfer transaction volume excluding bill payment increased 6 percent, and money transfer fee and other revenue increased 3 percent versus prior year. On a constant currency basis, money transfer fee and other revenue excluding bill payment increased 5 percent versus prior year.* Global agent locations reached 186,000, an increase of 15 percent over prior year.* Adjusted EBITDA in the quarter was $66.6 million versus $75.7 million in the prior year, primarily driven by a $15.8 million decrease in net investment income in the third quarter of 2009.* Net loss for the quarter was $18.3 million and EBITDA was $29.3 million. Both EBITDA and net loss were impacted by $37.4 million of significant items in the quarter. These items include a $16.5 million legal accrual for a patent lawsuit; a $6.0 million legal accrual for settlement with the FTC; $9.2 million of stock-based compensation and executive severance; $8.4 million in impairment charges and $2.7 million of net securities gains.* Total revenue in the third quarter was $304.5 million, roughly unchanged from $305.0 million in the same period last year. Third quarter 2008 total revenue included net securities losses of $13.3 million and investment revenue that was $25.4 million more favorable compared with 2009.* Year-to-date total revenue in 2009 was $875.5 million, up from $608.1 million in the first three quarters of 2008. Year-to-date total revenue in 2008 included net securities losses of $350.8 million and investment revenue that was $101.3 million more favorable compared with 2009.