International Money Express, Inc. · NASDAQ:IMXI

International Money Express — Q2 2020 Earnings Presentation

19 slides from International Money Express's earnings presentation, August 2020

  1. Slide 1: Second Quarter 2020 Earnings Presentation

    Second Quarter 2020 Earnings Presentation August 2020

  2. Slide 2: Safe Harbor Statement / Non-GAAP Financial Measures

    Safe Harbor Statement / Non-GAAP Financial Measures This presentation contains “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect our current views with respect to

  3. Slide 3: Review of Key Performance Indicators 2Q'20 vs 2Q'19

    Review of Key Performance Indicators 2Q’20 vs 2Q’19 Revenue Growth 2.9% Net Income 26.9% Adj. EBITDA 6.8% Growth(1) Adj. Net Income(1) 12.7% Free Cash 16.4% Generated(1) (1) Non-GAAP measure. See Appendix for reconciliations to the most directly comparable GAAP measures. 3

  4. Slide 4: Intermex – Well Positioned to Succeed

    Intermex – Well Positioned to Succeed  House Built of Brick  Profitable and Sustainable Growth  Resilient and Differentiated Business Model  Unique Agent Recruitment Approach  Superior Customer Service  High Liquidity and Free Cash Generation 4

  5. Slide 5: Intermex – Driving Revenue Growth

    Intermex – Driving Revenue Growth Money Transfer Transactions Customers (# In millions) (in millions) 2.1 7.6 7.4 2.0 2Q19 2Q20 2Q19 2Q20 Money Transfer Transactions Online Business 2Q20 versus 2Q19 (% Change from prior year period) (Growth from prior period) 13.0 8.3 Transactions* +279% 7.3 Custome

  6. Slide 6: Growth Initiatives

    Growth Initiatives  New Products and Channels: Digital, White Label, Card Products, Africa Inbound and Canada Outbound  Revenue Growth of 78% from Q1 to Q2  Emerging LATAM Corridors  Revenue Growth of 17% from Q1 to Q2 Combined, these new markets now represent approximately 7% of total Intermex

  7. Slide 7: Intermex – Profitable and Sustainable Growth

    Intermex – Profitable and Sustainable Growth Money Transfer Transactions Volume (# In millions) ($ in millions) 7.4 7.6 $2,846.0 $2,703.4 2Q19 2Q20 2Q19 2Q20 Revenue Adjusted EBITDA(1) ($ in millions) ($ in millions) $85.1 $17.4 $82.7 $16.3 2Q19 2Q20 2Q19 2Q20 (1) Non-GAAP measure. See Appendix for

  8. Slide 8: Capital & Liquidity Update

    Capital & Liquidity Update  Estimated Free Cash(1) of $10.0M in Q2 2020  Increase of $1.4M or 16.4% from Q2 2019  Highly Cash Generative Business Model  Converted 58% of Adjusted EBITDA(1) to Free Cash, after taxes, investments and debt service in Q2 2020  Continuing to Generate Free Cash  80%

  9. Slide 9: Highly Cash Generative Business Model

    Highly Cash Generative Business Model Free Cash(1) as a Percentage of Adjusted EBITDA(1) 100% 90% 80% 70% 57.7% 60% 53.0% 50% 40% 30% 20% 10% 0% 2Q19 2Q20 (1) Non-GAAP measure. See Appendix for reconciliations to the most directly comparable GAAP measures. 9

  10. Slide 10: Second Quarter 2020 Performance Highlights

    Second Quarter 2020 Performance Highlights Remittance Revenue Adj. EBITDA(1) Net Income Volume $85.1M $2.8B $17.4M $9.0M +2.9% +5.3% +6.8% +26.9%  Strong and resilient results in challenging COVID-19 environment  Adjusted EBITDA margin expanded 75bps YoY to 20.4%(1) (1) Non-GAAP measure. See Appen

  11. Slide 11: Third Quarter 2020 Guidance

    Third Quarter 2020 Guidance  Revenue of $88M – $91M  Adjusted EBITDA of $17M - $18M(2) (2) A quantitative reconciliation of projected Adjusted EBITDA to the most comparable GAAP measure is not available without unreasonable efforts because of the inherent difficulty in forecasting and qualifying t

  12. Slide 12: Appendix

    wy intermex \ INTERNATIONAL MONEY EXPRESS 7 Appendix

  13. Slide 13: Condensed Consolidated Balance Sheets

    Condensed Consolidated Balance Sheets June 30, December 31, (in thousands of dollars) 2020 2019 ASSETS (Unaudited) Current assets: Cash $ 101,985 $ 86,117 Accounts receivable, net of allowance of $808 and $759, respectively 60,023 39,754 Prepaid wires, net 5,460 18,201 Prepaid expenses and other cur

  14. Slide 14: Condensed Consolidated Statements of Operations

    Condensed Consolidated Statements of Operations Three Months Ended June 30, (in thousands of dollars) 2020 2019 (Unaudited) Revenues: Wire transfer and money order fees, net $ 72,793 $ 70,490 Foreign exchange gain, net 11,660 11,623 Other income 609 562 Total revenues $ 85,062 $ 82,675 Operating exp

  15. Slide 15: Reconciliation from Net Income to Adj. Net Income

    Reconciliation from Net Income to Adj. Net Income Three Months Ended June 30, (in thousands of dollars) 2020 2019 (Unaudited) Net income $ 8,978 $ 7,074 Adjusted for: Share-based compensation, 2018 plan (a) 686 634 Offering costs (b) - 386 TCPA Settlement (c) 23 - Other employee severance (d) - 66 O

  16. Slide 16: Reconciliation from GAAP EPS to Adj. EPS

    Reconciliation from GAAP EPS to Adj. EPS Three Months Ended June 30, 2020 2019 (Unaudited) GAAP Earnings per Share Basic and Diluted $ 0.24 $ 0.19 Adjusted for: Share-based compensation, 2018 Plan 0.02 0.02 Offering costs - 0.01 TCPA settlement NM - Other employee severance - NM Other charges and ex

  17. Slide 17: Reconciliation from Net Income to Adj. EBITDA

    Reconciliation from Net Income to Adj. EBITDA Three Months Ended June 30, (in thousands of dollars) 2020 2019 (Unaudited) Net income $ 8,978 $ 7,074 Adjusted for: Interest expense 1,633 2,288 Income tax provision 3,265 2,602 Depreciation and amortization 2,691 3,155 EBITDA 16,567 15,119 Share-based

  18. Slide 18: Reconciliation from Net Income to Net Free Cash

    Reconciliation from Net Income to Net Free Cash Three months ended June 30, (in thousands of dollars) 2020 2019 (Unaudited) Net income for the period $ 8,978 $ 7,074 Depreciation and amortization 2,691 3,155 Stock compensation expense 686 634 Provision for bad debt 364 191 Other noncash expenses 97

  19. Slide 19: Reconciliation from Net Income Margin to Adj. EBITDA Margin

    Reconciliation from Net Income Margin to Adj. EBITDA Margin Three Months Ended June 30, 2020 2019 (Unaudited) Net Income margin 10.6% 8.6% Adjusted for: Interest expense 1.9% 2.8% Income tax provision 3.8% 3.1% Depreciation and amortization 3.2% 3.8% EBITDA 19.5% 18.3% Share-based compensation, 2018

International Money Express — Q2 2020 Earnings Presentation on 6ix