International Money Express, Inc. · NASDAQ:IMXI
International Money Express — Investor Presentation (July 2019)
39 slides from International Money Express's investor presentation, July 2019
Slide 1: Summer 2019 Investor Presentation
Summer 2019 Investor Presentation
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 view with respect to
Slide 3: Company Overview
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Slide 4: Intermex Overview
Intermex Overview • Leading Money Transfer service provider to the $90B US to TT as of Mar TT as of Mar Latin America and Caribbean corridor (LAC)(1) • Recent launch in Africa (inbound) and Canada (outbound) 31st ‘18 31st ‘19 Revenue $225.3M $286.1M • Unique and differentiated approach has driven ra
Slide 5: Intermex – Evolution of a Market Leader
Intermex – Evolution of a Market Leader History of sustained market share growth provides a strong platform for future growth ($ in millions) 2009 – 2012 2013 – 2018 Revenue CAGR: 8% Revenue CAGR: 31% $273.9 $215.5 $165.4 $124.2 $82.8 $98.3 $55.7 $57.9 $61.9 $70.6 2009 2010 2011 2012 2013 2014 2015
Slide 6: Strong and Accelerating Financial Performance
Strong and Accelerating Financial Performance Intermex has an attractive financial profile with strong momentum • Intermex’s differentiated approach, along with its unique and efficient Revenue platform, has allowed the Company ($ in millions) to significantly grow scale and $320-$330 profitability
Slide 7: Experienced and Proven Management Team
Experienced and Proven Management Team Results-driven management team with 110+ years of combined industry experience • Execution focused management with deep industry experience and operational expertise that has successfully increased scale, expanded the ecosystem and driven growth • Maintain an e
Slide 8: Capital Markets Progression
Capital Markets Progression Feb 2017 Stella Point Nov 2018 Jul 2019 acquisition New credit Added to from Lindsay facility led by Russell 2000, Goldberg Key Bank 3000 indexes Jul 2018 Apr 2019 IMXI becomes Repurchase of public through 9M warrants FinTech reverse completed merger 8
Slide 9: Recent Capital Markets Events
Recent Capital Markets Events Warrant Exchange offer expired April 25, 2019 Announced completion and settlement of the exchange in April 30 press release Exchanged 8.9 million or 99.5% of the outstanding warrants and converted the remaining 0.5% leaving no outstanding warrants Issued 1.8 mil
Slide 10: First Quarter 2019
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Slide 11: Review of Key Performance Indicators
Review of Key Performance Indicators Growth Revenue and Adjusted EBITDA growth of 22% year-over-year(1) Market Share Intermex continues to aggregate share in Mexico / Guatemala Expansion Key growth initiatives across new products and markets Returns IMXI shares have appreciated over 40%(2) since ini
Slide 12: Intermex Growth Story
Intermex Growth Story Money Transfer Transactions Volume (# In millions) ($ in millions) 6.16 $2,200.5 4.97 $1,784.2 1Q18 1Q19 1Q18 1Q19 Revenue Adjusted EBITDA(1) ($ in millions) ($ in millions) $10.8 $68.3 $56.0 $8.8 1Q18 1Q19 1Q18 1Q19 (1) Adjusted EBITDA reflects add-backs for one-time, non-recu
Slide 13: First Quarter 2019 Performance Highlights
First Quarter 2019 Performance Highlights Generated impressive year-over-year growth of key metrics: 22.1% revenue growth 21.9% Adjusted EBITDA growth(1) 23.3% growth in remittance volume Net income of $3.2 million vs. a net loss of $0.5 million in Q1 2018 Adjusted EBITDA margin remained
Slide 14: On Track to Execute on 2019 Strategic Priorities
On Track to Execute on 2019 Strategic Priorities Priority #1 is to continue driving core growth initiatives Long runway ahead Core expansion in both growth and stronghold states Continued growth opportunity in secondary and tertiary Latin American markets Expanding our breadth and depth of
Slide 15: Reiterating 2019 Financial Guidance
Reiterating 2019 Financial Guidance $320-$330 million Revenue $54-$58 million Adjusted EBITDA(1) (1) A quantitative reconciliation of projected 2019 Adjusted EBITDA to the most comparable GAAP measure is not available without unreasonable efforts because of the inherent difficulty in forecasting and
Slide 16: Competitive Overview
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Slide 17: Global Remittance Market
Global Remittance Market 247M people live outside of $613B USD estimated amount of remittances their country of birth.(1) sent, worldwide in 2017(2) $148B USD $31B USD was sent from the U.S. alone(2) was sent from the U.S. to Mexico in 2017, the largest remittance corridor in the world(2) (1) The Wo
Slide 18: Large Industry with Accelerating Growth
Large Industry with Accelerating Growth The LAC Remittance Market Strong Remittance Volume Growth in Intermex’s Core Markets (1) (Total Remittance Volume, $ in billions) 2005 – 2017 All Other CAGR Guatemala $70.4 $75.4 $82.0 4.4% Mexico $64.4 $63.6 $66.4 $63.4 $61.6 $62.2 $58.9 $56.7 $58.0 $44.3 $48
Slide 19: Favorable, Fragmented Competitive Landscape
Favorable, Fragmented Competitive Landscape Intermex enjoys a strong and growing position across key target markets Intermex Share of Key Target LAC Market Landscape LAC Countries - 2018 Markets (2) Mexico Market Share Breakdown Size Country (US$B)1 Region 2014 2018 1Q19 MEX 35.7 40% GUA 9.6 11% 7.9
Slide 20: Market Share and Percent Of Industry Growth
Market Share and Percent Of Industry Growth Tier I Countries Mexico Remittance Volume Growth Guatemala Remittance Volume Growth 18.0% 17.4% 25.5% 14.9% 24.0% 21.6% 12.1% 18.8% $992 $3,123 $3,079 9.7% $934 15.4% 14.0% $792 7.9% $2,188 $671 59% 58% $1,546 62% 59% 41% 57% 41% 42% $1,208 61% 38% $397 43
Slide 21: Business Model Resiliency
Business Model Resiliency Intermex has exhibited impressive growth even during recessionary periods Industry Growth(1) Intermex Growth (Total Remittance Volume, $ in billions) (Total Remittance Volume, $ in billions) CAGR: 3.7% $70.4 $2.3 $62.2 $63.6 $66.4 $61.6 $56.7 $58.0 $1.8 $1.5 $1.3 $1.1 $1.1
Slide 22: Customer Transaction Flow
Customer Transaction Flow Illustrative example of $375 transaction to Mexico $375 $375 is wired to Mexico. Customer picks up money with transaction code in $375 local currency. $375 +$10 fee Agent records $375 transaction to Mexico and charges the customer $385 and provides customer Intermex process
Slide 23: Intermex Grows in Excess of the Industry
Intermex Grows in Excess of the Industry Intermex sustains strong margins while increasing volume growth to Mexico Margin Expansion (Mexico) 37% 38% 29% 29% $5.05 $5.04 21% $4.90 $4.85 $4.75 9.2% 10.2% 7.4% 6.4% 5.4% 2014 2015 2016 2017 2018 Gross Margin per Transaction Intermex Volume Growth Indust
Slide 24: Core Growth Opportunity
Core Growth Opportunity Long runway for same-store and greenfield growth in “stronghold” states There are more zip codes with high foreign born populations in our “stronghold” states that we want to operate in than zip codes that we currently operate in Growth in our 15 “stronghold” states is ~2
Slide 25: Core Growth Opportunity
Core Growth Opportunity Further penetration is a long-term driver of meaningful growth Total Foreign Born Population by Region 1Q19 Intermex Transactions by Region Central Transaction 10% Northwest Region / Population Central Northwest 19% 27% 26% Southwest Southeast 4.18 13% Northeast 3.12 Midwest
Slide 26: Core Growth Opportunity: Greenfield Growth States
Core Growth Opportunity Significant greenfield opportunity in “growth” states 6 CA 5 Intermex could add Foreign Born Population (millions) up to ~10.7 million wires per quarter in Currently, much lower transaction per foreign California and Texas 4 born in CA and TX vs. stronghold states at similar
Slide 27: Systematic and Efficient Sales Strategy and Execution
Systematic and Efficient Sales Strategy and Execution = concentration of Latin American foreign born residents 1 Target U.S. ZIP codes with high concentrations of Latin American foreign born residents 2 3 4 Average number of wires per agent Locate and interview agents Partner with agent to: 4,407 in
Slide 28: Differentiators – Deliver Agent and Consumer Value
Differentiators – Deliver Agent and Consumer Value Why Agents Choose Intermex Why Consumers Choose Intermex Local Increased Language Loyalty Transaction Program Volume Trust Banking Solutions Reliability Community Problem Trust Member Capture Speed System Resolution Reliability 28
Slide 29: Incremental Growth
Incremental Growth New markets and value-add customer services are long-term growth opportunities Africa inbound – 1Q19 launch Africa’s total addressable market could be similar to Guatemala in terms of remittance volume First wire completed January 10th, 2019 Canada outbound – 3Q19 launch
Slide 30: Superior Compliance Culture
Superior Compliance Culture Intermex maintains a highly comprehensive, rigorous compliance process • Conduct all compliance checks through the extensive Key Milestones in the Process compliance module which is part of our proprietary POS system Compliance – “Know Your Customer” due diligence Checks
Slide 31: Competitive Strengths
Competitive Strengths The growth potential is significant and durable in both our established and newer entry markets Our differentiated approach focuses on prioritizing agent productivity and consistently growing transactions per agent Dedication to superior customer service is our key competitive
Slide 32: Appendix
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Slide 33: Highly Scalable and Industry-Leading Technology Platform
Highly Scalable and Industry-Leading Technology Platform 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 Leadi
Slide 34: From Irma to Earthquake – Testing Resilience
From Irma to Earthquake – Testing Resilience Hurricane Irma Mexico Earthquake (Tuesday, Sept 19 2017) • Intermex deployed its Business Continuity Plan • Facilities in Puebla, Mexico were evacuated at (BCP) 3 days before the event 2:14PM EST • Mexico and Guatemala subsidiaries supported • Intermex im
Slide 35: Consolidated Balance Sheets
Consolidated Balance Sheets March 31, December 31, (in thousands of dollars) 2019 2018 ASSETS Current assets: Cash $ 84,739 $ 73,029 Accounts receivable, net of allowance of $621 and $842, respectively 86,664 35,795 Prepaid wires 7,293 26,655 Other prepaid expenses and current assets 2,050 3,171 Tot
Slide 36: Consolidated Statements of Operations
Consolidated Statements of Operations Three Months Ended March 31, (in thousands of dollars) 2019 2018 (Unaudited) Revenues: Wire transfer and money order fees $ 58,451 $ 47,854 Foreign exchange 9,402 7,731 Other income 496 371 Total revenues $ 68,349 $ 55,956 Operating expenses: Service charges fro
Slide 37: Net Income (Loss) to Adj. EBITDA Reconciliation
Net Income (Loss) to Adj. EBITDA Reconciliation Three Months Ended March 31, (in thousands of dollars) 2019 2018 Net income (loss) $ 3,156 $ (540) Adjusted for: Interest expense 2,071 3,284 Income tax provision (benefit) 1,081 (207) Depreciation and amortization 3,152 3,789 EBITDA 9,460 6,326 Transa
Slide 38: Net Income (Loss) to Adj. EBITDA Reconciliation
Net Income (Loss) to Adj. EBITDA Reconciliation TTM as of March 31, (in thousands of dollars) 2019 2018 Net (loss) income $ (6,423) $ (2,952) Adjusted for: Interest expense 17,235 13,357 Income tax provision (benefit) 6,031 (674) Depreciation and amortization 15,034 17,457 EBITDA 31,877 27,188 Trans
Slide 39: Net Income(Loss) to Adj. EBITDA Reconciliation
Net Income(Loss) to Adj. EBITDA Reconciliation Three Months Ended 2015 FY 2016 FY 2017 FY 2018 FY March 31, 2019 Net income (loss) $ 5,757,824 $ 9,400,026 $ (13,491,874) $ (7,244,353) $ 3,156,221 Adjusted for: Interest expense 4,234,371 9,540,046 12,061,677 18,448,192 2,070,615 Tax expense 4,191,643
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