International Money Express, Inc. · NASDAQ:IMXI
International Money Express — Fintech Acquisition Corp. II — SPAC Merger (May 2018)
36 slides from International Money Express's SPAC merger presentation, May 21, 2018
Slide 1: Investor Presentation May 2018
Investor Presentation May 2018 CONFIDENTIAL
Slide 2: Legal Disclaimers
2 CONFIDENTIAL | Legal Disclaimers This Investor Presentation contains "forward - looking statements within the meaning of the “safe harbor" provisions of the Private Securities Litigation Reform Act of 1995 . Forward - looking statements may be identified by the use of words such as “anticipate", "
Slide 3: Transaction Overview
3 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 4: Capitalization & Ownership
4 CONFIDENTIAL | ($ in millions) Proposed Sources Pro Forma Capitalization at Closing Rollover Equity $164.8 Cash (3) $131.4 FinTech Acquisition Corp Equity 176.2 Revolving Credit Facility 20.0 Total Sources $341.0 Term Loan 94.6 Total Debt $114.6 Proposed Uses Implied Market Capitalization (4) $355
Slide 5: Table of Contents
5 CONFIDENTIAL | Table of Contents I. Intermex Overview II. Competitive Landscape III. Differentiators IV. Future Growth V. Financial Highlights VI. Appendix
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 $82+ b
Slide 7: Intermex – Evolution of a Market Leader
7 CONFIDENTIAL | Intermex – Evolution of a Market Leader History of sustained market share growth provides a strong platform for future growth Early Years Expansion • Intermex was founded in 1994 as a money transfer provider headquartered in Miami, Florida • Acquired Servimex, Americana and Maniflo
Slide 8: Intermex Growth Story
8 CONFIDENTIAL | Intermex Growth Story Money Transfer Transactions (#) Remittance Volume ($) (# in millions ) ($ in bn ) Total Revenue Adjusted EBITDA (1) ($ in millions ) ($ in millions ) $12.5 $18.8 $27.1 $33.4 $40.8 2014 2015 2016 2017 2018P $98.3 $124.2 $165.4 $215.5 $261.8 2014 2015 2016 2017 2
Slide 9: Global Remittance Market
9 CONFIDENTIAL | Global Remittance Market (1) The World Bank. “Migration and Remittances Factbook 2016.” (2) The World Bank. “Bilateral Remittance Matrix - 2017” accessed on May 17, 2018 247M $613B USD $148B USD $30B USD people live outside of their country of birth. (1) estimated amount of remittan
Slide 10: Customer Transaction Flow
10 CONFIDENTIAL | Customer Transaction Flow Illustrative example of $350 transaction to Mexico U.S. Customer sends $350 to Mexico through: • Online money transfers • In person wire transfers • Money orders • CheckDirect System • Telewire Service Agent records $350 transaction to Mexico and charges t
Slide 11: Table of Contents
11 CONFIDENTIAL | Table of Contents I. Intermex Overview II. Competitive Landscape III. Differentiators IV. Future Growth V. Financial Highlights VI. Appendix
Slide 12: Favorable, Fragmented Competitive Landscape
12 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: ~$82 Billion (1) LAC Countries - 2017 Mexico Market Share Breakdown 2014 2017 1Q’18 1
Slide 13: Intermex Grows in Excess of the Industry
13 CONFIDENTIAL | Mexico Remittance Volume (1 ) Guatemala Remittance Volume (1 ) 7.4% 5.4% 9.2% 6.4% 5.8% 21.3% 29.3% 37.1% 37.6% 21.4% 2014 2015 2016 2017 Q1 2018 8.6% 13.4% 13.9% 14.4% 4.0% 23.2% 24.4% 39.2% 31.5% 17.2% 2014 2015 2016 2017 1Q'18 Intermex YoY % Growth Market YoY % Growth 7.9% 9.7%
Slide 14: Table of Contents
14 CONFIDENTIAL | Table of Contents I. Intermex Overview II. Competitive Landscape III. Differentiators IV. Future Growth V. Financial Highlights VI. Appendix
Slide 15: Systematic and Efficient Sales Strategy and Execution
15 CONFIDENTIAL | Systematic and Efficient Sales Strategy and Execution Target U.S. ZIP codes with high concentrations of Latin American foreign born residents 1 2 Partner with agent to: • Provide Solutions • Sell Benefits • Complete Business Review • Finalize Commitments 3 Locate and interview agen
Slide 16: Differentiators – Deliver Agent and Consumer Value
16 CONFIDENTIAL | Capture Speed Problem Resolution System Reliability Local Language Loyalty Program Community Member Trust Reliability Differentiators – Deliver Agent and Consumer Value
Slide 17: Per Transaction and Agent Detail
17 CONFIDENTIAL | 11.2 14.8 19.1 $10.99 $11.13 $11.19 $1.67 $1.84 $1.74 $0.00 $2.00 $4.00 $6.00 $8.00 $10.00 $12.00 $14.00 0.0 5.0 10.0 15.0 20.0 2015 2016 2017 Transactions Revenue / Wire Adj. EBITDA / Wire 2,877 3,105 3,457 4,442 $33.84 $39.65 $47.51 $48.21 $4.36 $6.05 $7.84 $7.51 $0.00 $20.00 $40
Slide 18: Intermex Grows in Excess of the Industry
18 CONFIDENTIAL | $4.75 $4.85 $5.06 $5.05 21% 29% 37% 38% 7.4% 5.4% 9.2% 6.4% 2014 2015 2016 2017 Gross Margin per Transaction Intermex Volume Growth Industry Growth Intermex sustains strong margins while increasing volume growth to Mexico Intermex Grows in Excess of the Industry Margin Expansion (M
Slide 19: Highly Scalable and Industry-Leading Technology Platform
19 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 20: Peer Analysis
20 CONFIDENTIAL | 3.4% 12.3% 3.0% 20.9% 4.9% 17.5% 4.5% 21.1% Western Union Euronet Moneygram Intermex Revenue Adj. EBITDA 8.0x 7.5x 5.6x 6.9x Western Union Euronet Moneygram Intermex 3.0% 12.2% (0.2%) 25.8% 0.8% 10.1% 4.5% 22.8% Western Union Euronet Moneygram Intermex Revenue Adj. EBITDA Peer Anal
Slide 21: Table of Contents
21 CONFIDENTIAL | Table of Contents I. Intermex Overview II. Competitive Landscape III. Differentiators IV. Future Growth V. Financial Highlights VI. Appendix
Slide 22: Core Growth Opportunity
22 CONFIDENTIAL | Core Growth Opportunity Intermex has strong organic growth potential in its core business Core growth will be the dominant source of revenue and net income through 2021 15 Stronghold States 18% of Total Market 23% growth rate in 2017 Growth Opportunity in Stronghold States • Increa
Slide 23: Additional Growth Opportunities
23 CONFIDENTIAL | B2B Processing Opportunity • Productively leverage our 10x excess transaction capacity annually to offer B2B processing • Banks and Businesses with need to move money/information throughout Latin America and the US Grow Mobile and Online Presence • Mobile / Web Based money transfer
Slide 24: Table of Contents
24 CONFIDENTIAL | Table of Contents I. Intermex Overview II. Competitive Landscape and Differentiators III. Future Growth IV. Financial Overview V. Appendix
Slide 25: Strong and Accelerating Financial Performance
25 CONFIDENTIAL | 6.1 8.4 $12.5 $18.8 $27.1 $33.4 $40.8 $49.0 2012 2013 2014 2015 2016 2017 2018P 2019P 70.6 82.8 $98.3 $124.2 $165.4 $215.5 $261.8 $315.0 2012 2013 2014 2015 2016 2017 2018P 2019P Strong and Accelerating Financial Performance Intermex has an attractive financial profile with strong
Slide 26: Summary Financials
26 CONFIDENTIAL | Summary Financials Adjusted EBITDA reflects add - backs for one - time, non - recurring items. Please see page 36 for more detail . YoY Growth ($ in thousands) 2015 2016 2017 2018P 2019P 2016 2017 2018 2019P Total Revenue $124,114 $165,394 $215,464 $261,828 $314,978 33.3% 30.3% 21.
Slide 27: Summary Financials – 1Q (unaudited)
27 CONFIDENTIAL | Summary Financials – 1Q (unaudited) YoY Growth ($ in millions) 2017 2018 $ Variance % Variance Total Revenue $46.0 $ 56.0 $10.0 21.7% Total Cost of Sales $ 30.2 $ 37.9 $7.7 25.5% Gross Profit $15.9 $18.2 $ 2.3 14.5% Total Adjusted SG&A $ 8.6 $ 9.4 $0.8 9.3% Adjusted EBITDA $7.3 $ 8
Slide 28: Cash Flow Statement
28 CONFIDENTIAL | ($ in millions) 2015 2016 2017 Cash Flows from Operating Activities: Net Income / (Loss) $5.8 $9.4 ($13.5) Depreciation & Amortization $2.5 $2.5 $17.0 Share - based Compensation 0.1 0.1 4.8 Provision for Bad Debts 0.7 0.9 1.5 Debt Issuance Cost Amortization 0.7 2.7 0.4 Deferred Tax
Slide 29: Balance Sheet
29 CONFIDENTIAL | Balance Sheet ($ in millions) December 31 2016 December 31 2017 December 31 2016 December 31 2017 Assets Liabilities Cash $37.6 $59.2 Current Portion of Long - Term Debt $0.8 $3.9 Accounts Receivable, Net (1) 27.7 51.4 Accounts Payable 5.9 8.9 Prepaid Wires 11.3 7.7 Wire Transfers
Slide 30: Highly Compelling Investment Opportunity
30 CONFIDENTIAL | Highly Compelling Investment Opportunity Since 2011, Intermex has grown in excess of the industry while sustaining strong margins and increasing transaction growth to Mexico This is driven by our disciplined approach to expansion which focuses on prioritizing agent productivity and
Slide 31: IV. Appendix
31 CONFIDENTIAL | IV. Appendix
Slide 32: Experienced and Proven Management Team
32 CONFIDENTIAL | Experienced and Proven Management Team Results - driven management team with 110+ years of combined industry experience • Execution focused management with deep industry experience and operational expertise that has successfully increased scale, expanded the ecosystem and driven gr
Slide 33: Large Industry with Accelerating Growth
33 CONFIDENTIAL | Large Industry with Accelerating Growth The LAC remittance market is supported by four key growth drivers • Hispanics represent over 50% of foreign - born residents in the U.S. and are highly concentrated in California, Texas, Florida, and New York • Substantial opportunities exist
Slide 34: Superior Compliance Culture
34 CONFIDENTIAL | Superior Compliance Culture Intermex maintains a highly comprehensive, rigorous compliance process Transaction entry at Sending Agent requires completion of mandatory fields and ID requirements Sender and receiver screened against government - required lists (OFAC, etc.) Transactio
Slide 35: From Irma to Earthquake – Testing Resilience
35 CONFIDENTIAL | Note: Graphs show minimal to no impact to business operations. From Irma to Earthquake – Testing Resilience Hurricane Irma • Intermex deployed its Business Continuity Plan (BCP) 3 days before the event • Mexico and Guatemala subsidiaries supported key stakeholders in Miami • Equipm
Slide 36: Adjusted EBITDA Reconciliation – Full Year
36 CONFIDENTIAL | ($ in millions) 2015 2016 2017 Net Income $5.8 $9.4 ($13.5) Interest, Net 4.2 9.5 12.1 Taxes 4.2 4.1 (1.7) Depreciation & Amortization 2.5 2.5 17.0 EBITDA, As Reported $16.6 $25.6 $13.9 % Margin, As Reported 13.4% 15.5% 6.5% Adjustments Transaction Costs $1.6 $0.9 $12.6 Incentive U
Fintech Acquisition Corp. II — SPAC Merger (May 2018) on 6ix