International Money Express, Inc. · NASDAQ:IMXI
International Money Express — Intermex Holdings II — SPAC Merger (December 2017)
37 slides from International Money Express's SPAC merger presentation, Dec 20, 2017
Slide 1: Investor Presentation December 2017
Investor Presentation December 2017 CONFIDENTIAL
Slide 2: Transaction Overview
2 CONFIDENTIAL | TRANSACTION • FinTech Acquisition Corp. II (“FNTE”), a publicly - traded Special - Purpose Acquisition Company (“SPAC”), will merge with Intermex Holdings II, Inc. (dba “ Intermex ”) • Merged company will apply to continue the listing of its common stock on the NASDAQ • Transaction
Slide 3: Capitalization & Ownership
3 CONFIDENTIAL | Capitalization & Ownership (1) (1) Pro forma as of October 31, 2017; subject to potential changes in transaction structure, capitalization and working capital a dju stments between now and expected transaction closing. (2) Subject to treatment of Closing Excess Cash Amount per the m
Slide 4: Table of Contents
4 CONFIDENTIAL | Table of Contents I. Executive Summary II. Investment Highlights III. Financial Highlights IV. Appendix
Slide 5: I. Executive Summary
5 CONFIDENTIAL | I. Executive Summary
Slide 6: Intermex Overview
6 CONFIDENTIAL | Intermex Overview • Intermex utilizes its technology enabled platform to deliver differentiated financial services to consumers. It is a leading provider of money transfer services in the large and growing U.S. to Latin America and Caribbean (“LAC”) corridor, which represents $73+ b
Slide 7: Global Remittance Market
7 CONFIDENTIAL | Global Remittance Market Worldwide, an estimated US$582B was sent in 2015, US$133.6B from the U.S. alone (1) • In 2015, the top recipient countries of recorded remittances were India, China, the Philippines and Mexico (2) • Developing countries are estimated to receive about $441 bi
Slide 8: Large Industry with Accelerating Growth
8 CONFIDENTIAL | Large Industry with Accelerating Growth The LAC remittance market is supported by four key growth drivers • Hispanics represent over 50% of foreign - born residents in the U.S. and are highly concentrated in California, Texas, Florida, and New York • Substantial opportunities exist
Slide 9: Favorable, Fragmented Competitive Landscape
9 CONFIDENTIAL | Favorable, Fragmented Competitive Landscape LAC Market Landscape Intermex enjoys a strong and growing position across key target markets Intermex Share of Key Target Markets (2) Total Market Size: ~$73 Billion (1) LAC Countries - 2016 Mexico Market Share Breakdown 2017P 2014 19% 13%
Slide 10: Peer Analysis
10 CONFIDENTIAL | 8.7x 9.9x 7.6x 9.0x Western Union Euronet Moneygram Intermex 1.3% 11.4% 0.9% 22.1% (0.8%) 14.0% 4.0% 21.7% Western Union Euronet Moneygram Intermex Revenue Adj. EBITDA (0.1%) 14.5% 2.1% 30.8% (2.6%) 18.3% 9.7% 34.9% Western Union Euronet Moneygram Intermex Revenue Adj. EBITDA Peer
Slide 11: Intermex – Evolution of a Market Leader
11 CONFIDENTIAL | Intermex – Evolution of a Market Leader History of sustained market share growth provides a strong platform for future growth Early Years Expansion Future State • Intermex was founded in 1994 as a money transfer provider headquartered in Miami, Florida • Acquired Servimex, American
Slide 12: II. Investment Highlights
12 CONFIDENTIAL | II. Investment Highlights
Slide 13: Highly Compelling Investment Opportunity
13 CONFIDENTIAL | Highly Compelling Investment Opportunity Numerous Highly Attractive Growth Opportunities 1 Intermex Employs a Highly Differentiated Approach 2 Intermex Grows in Excess of the Industry 3 Deepen Customer Relationships 5 Superior Compliance Culture 7 Highly Scalable and Industry - Lea
Slide 14: Growth Opportunities
14 CONFIDENTIAL | Leverage CRM Platform • Increase repeat customer usage through CRM / loyalty platform • Track and effectively target one - time users of Intermex platform • Continued improvement in sending agent productivity Continued Growth in Stronghold States • Intermex is currently well establ
Slide 15: Intermex Employs a Highly Differentiated Approach
15 CONFIDENTIAL | Intermex Employs a Highly Differentiated Approach Send Corridors Agents Marketing / Sales Pricing Service Levels Growth Reinvestment • Focus on the most profitable corridors, market share growth and efficiency • Focus on productive agent growth and agent performance • Concentrated
Slide 16: Intermex Grows in Excess of the Industry
16 CONFIDENTIAL | • Within its core markets of Mexico and Guatemala, Intermex has consistently grown above the market rate of growth and gains meaningful market share • Intermex has demonstrated strong 27% and 29% growth in its newer markets of El Salvador and Honduras, respectively Source: World Ba
Slide 17: Intermex Grows in Excess of the Industry (cont'd)
17 CONFIDENTIAL | $4.75 $4.85 $5.06 $5.11 18% 27% 33% 32% 5.4% 9.2% 6.4% 8.2% 2014 2015 2016 LTM Sep-17 Gross Margin per Transactions Intermex Growth Industry Growth Intermex sustains strong margins while increasing transaction growth to Mexico Margin Expansion (Mexico) • In 2016 margins increased b
Slide 18: Intermex Grows in Excess of the Industry (cont'd)
18 CONFIDENTIAL | Intermex Grows in Excess of the Industry (cont’d) Intermex has grown its market share while focusing on larger send states such as California and New York • Intermex was initially focused on small and mid - sized states, predominantly in the Southeast, and enjoys strong market shar
Slide 19: Systematic and Efficient Sales Strategy and Execution
19 CONFIDENTIAL | Prioritizing agent productivity and consistently growing wires per agent 2,845 2,588 2,655 2,877 3,105 3,457 4,162 5.5 6.3 7.5 8.9 11.2 14.7 17.9 2011 2012 2013 2014 2015 2016 LTM Sep- 17A Agent Count Average Total Transactions Highly Productive Agent Network 1,927 2,440 2,830 3,10
Slide 20: Systematic and Efficient Sales Strategy and Execution (cont'd)
20 CONFIDENTIAL | $50,000 $16,000 30 50 0 10 20 30 40 50 60 $0 $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 Intermex Competition Agent Recruitment ~ Average Revenue per Agent ~ Agent Recruitment Target per Rep $1,500,000 $800,000 $0 $200,000 $400,000 $600,000 $800,000 $1,000,000 $1,200,000 $1,400
Slide 21: Deepen Customer Relationships
21 CONFIDENTIAL | 5 Deepen Customer Relationships Leverage industry - leading loyalty program to drive preference for Intermex Program Overview • Interpuntos was piloted beginning in October 2014 and is currently live in 9 states (1,000 agents) • Members earn 1 point for each wire sent and paid, wit
Slide 22: Highly Scalable and Industry-Leading Technology Platform
22 CONFIDENTIAL | Highly Scalable and Industry - Leading Technology Platform Proprietary software and world - class technology Custom Business Rules Engine Agent Relationship Management (ARM) Integrated Back Office Technology POS & Checks Processing Technology Processing Capacity (60 transactions pe
Slide 23: Highly Scalable and Industry-Leading Technology Platform
23 CONFIDENTIAL | Speed of POS Transactions Repeat sender transactions completed in half the time of most competitors Systems Uptime and Reliability 99.95% historical uptime SLA with 3 - datacenter balancing and auto failover Technical Support Response Time Best - in - class 8 - second answer time,
Slide 24: Superior Compliance Culture
24 CONFIDENTIAL | Superior Compliance Culture Intermex maintains a highly comprehensive, rigorous compliance process Transaction entry at Sending Agent requires completion of mandatory fields and ID requirements Sender and receiver screened against government - required lists (OFAC, etc.) Transactio
Slide 25: Strong and Accelerating Financial Performance
25 CONFIDENTIAL | Strong and Accelerating Financial Performance Intermex has a highly attractive financial profile with strong momentum • Intermex’s highly differentiated approach, along with its unique and efficient platform, has allowed the Company to significantly grow scale and profitability • S
Slide 26: Experienced and Proven Management Team
26 CONFIDENTIAL | Experienced and Proven Management Team Results - driven management team with 110+ years of combined industry experience • Execution focused management with deep industry experience and operational expertise that has successfully increased scale, expanded the ecosystem and driven gr
Slide 27: III. Financial Highlights
27 CONFIDENTIAL | III. Financial Highlights
Slide 28: Summary Financials
28 CONFIDENTIAL | Summary Financials ($ in millions) 2014 2015 2016 2017P 2018P 2019P Agents 3,028 3,236 3,889 5,079 6,039 6,999 YoY Growth % 7.9% 6.9% 20.2% 30.6% 18.9% 15.9% Transactions, Net 8,876,523 11,103,988 14,586,268 18,926,266 22,714,554 26,127,048 YoY Growth % 18.7% 25.1% 31.4% 29.8% 20.0
Slide 29: Per Transaction and Agent Detail
29 CONFIDENTIAL | 2,877 3,105 3,457 4,880 $33.8 $39.6 $47.5 $41.6 $4.36 $5.98 $7.83 $6.56 $0.0 $20.0 $40.0 $60.0 0 1,000 2,000 3,000 4,000 5,000 2014 2015 2016 LTM Sep'17 Agents Revenue / Agent Adj. EBITDA / Agent 8.9 11.1 14.6 17.8 $10.97 $11.09 $11.26 $11.42 $1.41 $1.67 $1.86 $1.80 $0.00 $2.00 $4.
Slide 30: Balance Sheet
30 CONFIDENTIAL | Balance Sheet ($ in millions) Dec. 31 2016 Sep. 30 2017 Dec. 31 2016 Sep. 30 2017 Assets Liabilities Cash $36.4 $42.2 Wire Transfers Payable $10.7 $27.0 Restricted Cash 0.6 0.6 Money Orders Payable 3.1 5.9 Accounts Receivable, Net 29.9 53.2 Accounts Payable & Accrued Expenses 12.6
Slide 31: Statement of Cash Flows
31 CONFIDENTIAL | Statement of Cash Flows ($ in millions) 2015 2016 YTD Sep. 2017 Cash Flows from Operating Activities: Net Income / (Loss) $17.6 $8.3 ($5.0) Depreciation and Amortization $4.3 $4.3 $4.0 Deferred finance cost amortization 0.7 2.7 0.0 Deferred Taxes (9.7) 3.0 0.0 Equity Compensation E
Slide 32: Adjusted EBITDA Reconciliation
32 CONFIDENTIAL | Adjusted EBITDA Reconciliation ($ in millions) 2014 2015 2016 Net income $26.1 $17.6 $8.3 Interest, net 1.7 4.1 9.5 Taxes (1) (20.2) (9.5) 3.4 Depreciation & amortization 4.3 4.3 4.3 EBITDA, as reported $11.9 $16.6 $25.5 Margin %, as reported 12.1% 13.3% 15.4% Adjustments Transacti
Slide 33: Key Takeaways
33 CONFIDENTIAL | Key Takeaways • Since 2011, Intermex has grown in excess of the industry while sustaining strong margins and increasing transaction growth to Mexico • This is driven by our disciplined approach to expansion which focuses on prioritizing agent productivity and consistently growing t
Slide 34: IV. Appendix
34 CONFIDENTIAL | IV. Appendix
Slide 35: Agent Production vs Agent Count
35 CONFIDENTIAL | (598) (257) 67 222 228 352 705 8% 15% 19% 19% 25% 32% 31% 2011 2012 2013 2014 2015 2016 LTM Sep-17A Annual Agent Count Variance Transactions Growth • In 2009 Intermex started terminating unproductive agents while adopting a new approach to recruitment • Despite a declining agent ba
Slide 36: Vector for Success – Agent Recruitment
36 CONFIDENTIAL | • Identify targets based upon foreign born by ZIP code through our sales force of 39 sales reps • Utilize onsite business review (OBR) • Commit agent to minimum volume • Utilize metrics to measure ROI • Average payback – 5 months • Ramp up period – 2 - 3 years • Ultimately ramping
Slide 37: From Irma to Earthquake – Testing Resilience
37 CONFIDENTIAL | Note: Graphs show minimal to no impact to business operations. From Irma to Earthquake – Testing Resilience Hurricane Irma • Intermex deployed its Business Continuity Plan (BCP) 3 days before the event • Mexico and Guatemala subsidiaries supported key stakeholders in Miami • Equipm