Don't know if any here are in MGI but the numbers appear to be going a whole lot better for them.
MoneyGram International Announces Second Quarter 2008 Results
Money Transfer Revenue Grows 23 Percent
MINNEAPOLIS--(BUSINESS WIRE)--Aug. 7, 2008--MoneyGram International, Inc. (NYSE:MGI), today announced preliminary second quarter 2008 financial results. The second quarter 2008 financial results are preliminary as the Company is finalizing the market valuation of embedded derivatives within the Series B Preferred Stock agreements. For further information, see the "Preliminary Second Quarter 2008 Results" section of this press release. Following are significant items affecting operating results during the second quarter of 2008:
-- Fee and other revenue increased 21 percent to $281.9 million
in the second quarter of 2008 from $232.5 million in the
second quarter of 2007, driven by continued growth in money
transfer transaction (including bill payment) volume.
-- Global Funds Transfer segment fee and other revenue grew 22
percent in the second quarter of 2008, driven by 23 percent
growth in money transfer transaction revenue and 19 percent
growth in money transfer transaction (including bill payment)
volume.
-- We recorded $30.3 million of net securities losses including
market-to-market losses in auction rate securities and
other-than-temporary impairments on other asset-backed
securities. The recapitalization on March 25, 2008, included
funds to cover these losses.
-- Investment commissions expense reflects a gain of $29.3
million from increases in the fair value of swaps. All swaps
were terminated in the second quarter.
-- EBITDA (earnings before interest, taxes, depreciation and
amortization, and amortization of agent signing bonuses) and
Adjusted EBITDA (EBITDA adjusted for net securities losses,
swap termination, and severance costs) were $39.5 million and
$58.2 million in the second quarter of 2008 compared to $68.8
million and $69.2 million in the second quarter of 2007.
-- Interest expense increased to $24.0 million in the second
quarter of 2008 from $2.0 million in 2007 due to higher
outstanding debt as a result of the recapitalization completed
in March 2008, partially offset by a $4.2 million gain from
increases in the fair value of swaps.
-- Expenses include $17.7 million of executive severance and
related costs.
-- Net loss of $16.0 million as a result of the aforementioned
items.
Anthony Ryan, executive vice president and chief operating officer said, "I want to thank our employees for their efforts and contributions during the second quarter as we continued to execute our purpose; to help people and businesses by providing affordable, reliable, and convenient payment services. We were able to complete another strong quarter in the money transfer business complemented by exceptional growth in our agent network further demonstrating the global growth opportunity ahead of us."
Mr. Ryan continued, "While we reported a net loss, we measure our financial performance based on certain cash flow metrics, including EBITDA, which was very strong in the second quarter despite the decrease in investment revenue as a result of our newly adopted investment policy and the repositioning of the investment portfolio. Our strong cash flow will support capital spending to rapidly grow our agent network and to invest in the infrastructure to support our 2008 growth plans."
Segment Highlights
MoneyGram operates in two reportable business segments, Global Funds Transfer and Payment Systems.
Global Funds Transfer
