Delaware | 001-32903 | 20-4531180 | ||
(State or other jurisdiction of incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) |
12500 East Belford Avenue Englewood, Colorado | 80112 | |
(Address of principal executive offices) | (Zip Code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. | Results of Operations and Financial Condition. |
Item 7.01. | Regulation FD Disclosure. |
Item 9.01. | Financial Statements and Exhibits. |
Exhibit Number | Description of Exhibit |
99.1 | Earnings press release issued by the Company on July 30, 2015. |
99.2 | Presentation of the Company dated July 30, 2015. |
Dated: July 30, 2015 | THE WESTERN UNION COMPANY | |||||||
By: | /s/ JOHN R. DYE | |||||||
Name: | John R. Dye | |||||||
Title: | Executive Vice President, General Counsel and Secretary |
Exhibit Number | Description of Exhibit |
99.1 | Earnings press release issued by The Western Union Company on July 30, 2015. |
99.2 | Presentation of The Western Union Company dated July 30, 2015. |
Contacts: Media | Investors | |
Dan Diaz | Mike Salop | |
720-332-5564 | 720-332-8276 | |
daniel.diaz@westernunion.com | mike.salop@westernunion.com |
• | Low to mid-single digit constant currency revenue increase (previously low single digit increase) |
• | Low to mid-single digit GAAP revenue decrease |
• | Adjusted operating margin of approximately 21% |
• | GAAP operating margin of approximately 20% |
• | Adjusted EPS in a range of approximately $1.60 to $1.67 (previously a range of approximately $1.58 to $1.65) |
• | GAAP EPS in a range of approximately $1.55 to $1.62 |
• | Cash flow from operating activities of approximately $1 billion. The cash flow outlook excludes $100 million of anticipated final tax payments relating to the agreement announced with the U.S. Internal Revenue Service in December 2011. Some or all of these payments may occur in 2015. |
Notes* | 2Q14 | 3Q14 | 4Q14 | FY2014 | 1Q15 | 2Q15 | YTD 2Q15 | ||||||||||||||||||||||
Consolidated Metrics | |||||||||||||||||||||||||||||
Consolidated revenues (GAAP) - YoY % change | 1 | % | 2 | % | (1 | )% | 1 | % | (2 | )% | (2 | )% | (2 | )% | |||||||||||||||
Consolidated revenues (constant currency) - YoY % change | a | 3 | % | 5 | % | 4 | % | 4 | % | 4 | % | 4 | % | 4 | % | ||||||||||||||
Consolidated operating margin (GAAP) | 19.8 | % | 21.8 | % | 19.6 | % | 20.3 | % | 20.6 | % | 18.1 | % | 19.3 | % | |||||||||||||||
Consolidated operating margin (excluding Paymap settlement agreement) | b | N/A | N/A | N/A | N/A | N/A | 20.7 | % | 20.6 | % | |||||||||||||||||||
Consumer-to-Consumer (C2C) Segment | |||||||||||||||||||||||||||||
Revenues (GAAP) - YoY % change | 2 | % | 2 | % | (2 | )% | 1 | % | (4 | )% | (3 | )% | (3 | )% | |||||||||||||||
Revenues (constant currency) - YoY % change | f | 3 | % | 4 | % | 2 | % | 3 | % | 2 | % | 3 | % | 3 | % | ||||||||||||||
Operating margin | 22.7 | % | 24.9 | % | 23.1 | % | 23.4 | % | 23.1 | % | 23.3 | % | 23.2 | % | |||||||||||||||
Transactions (in millions) | 63.96 | 65.31 | 65.42 | 254.93 | 61.75 | 65.76 | 127.51 | ||||||||||||||||||||||
Transactions - YoY % change | 6 | % | 5 | % | 2 | % | 5 | % | 3 | % | 3 | % | 3 | % | |||||||||||||||
Total principal ($ - billions) | $ | 21.8 | $ | 22.1 | $ | 21.2 | $ | 85.4 | $ | 19.5 | $ | 20.8 | $ | 40.3 | |||||||||||||||
Principal per transaction ($ - dollars) | $ | 341 | $ | 339 | $ | 323 | $ | 335 | $ | 315 | $ | 316 | $ | 316 | |||||||||||||||
Principal per transaction - YoY % change | 0 | % | 0 | % | (4 | )% | (1 | )% | (7 | )% | (7 | )% | (7 | )% | |||||||||||||||
Principal per transaction (constant currency) - YoY % change | g | 0 | % | 0 | % | 0 | % | 0 | % | (1 | )% | (1 | )% | (1 | )% | ||||||||||||||
Cross-border principal ($ - billions) | $ | 19.7 | $ | 20.0 | $ | 19.2 | $ | 77.2 | $ | 17.5 | $ | 18.8 | $ | 36.3 | |||||||||||||||
Cross-border principal - YoY % change | 7 | % | 5 | % | (1 | )% | 5 | % | (4 | )% | (5 | )% | (4 | )% | |||||||||||||||
Cross-border principal (constant currency) - YoY % change | h | 6 | % | 5 | % | 2 | % | 6 | % | 2 | % | 2 | % | 2 | % | ||||||||||||||
Europe and CIS region revenues (GAAP) - YoY % change | v, w | 3 | % | 1 | % | (5 | )% | 0 | % | (9 | )% | (9 | )% | (9 | )% | ||||||||||||||
Europe and CIS region revenues (constant currency) - YoY % change | i, v, w | 2 | % | 3 | % | 1 | % | 1 | % | 2 | % | 2 | % | 2 | % | ||||||||||||||
Europe and CIS region transactions - YoY % change | v, w | 11 | % | 10 | % | 6 | % | 9 | % | 4 | % | 1 | % | 2 | % | ||||||||||||||
North America region revenues (GAAP) - YoY % change | v, x | 1 | % | 2 | % | 0 | % | 1 | % | (2 | )% | (2 | )% | (2 | )% | ||||||||||||||
North America region revenues (constant currency) - YoY % change | j, v, x | 1 | % | 2 | % | 1 | % | 1 | % | 0 | % | (1 | )% | (1 | )% | ||||||||||||||
North America region transactions - YoY % change | v, x | 3 | % | 3 | % | 2 | % | 3 | % | 3 | % | 3 | % | 3 | % | ||||||||||||||
Middle East and Africa region revenues (GAAP) - YoY % change | v, y | 6 | % | 3 | % | (3 | )% | 2 | % | (6 | )% | (4 | )% | (5 | )% | ||||||||||||||
Middle East and Africa region revenues (constant currency) - YoY % change | k, v, y | 6 | % | 4 | % | 0 | % | 3 | % | (1 | )% | 1 | % | 0 | % | ||||||||||||||
Middle East and Africa region transactions - YoY % change | v, y | 6 | % | 1 | % | (3 | )% | 3 | % | (3 | )% | 0 | % | (1 | )% | ||||||||||||||
APAC region revenues (GAAP) - YoY % change | v, z | 1 | % | 1 | % | (3 | )% | 0 | % | (6 | )% | (5 | )% | (6 | )% | ||||||||||||||
APAC region revenues (constant currency) - YoY % change | l, v, z | 2 | % | 2 | % | 1 | % | 2 | % | (2 | )% | 0 | % | (1 | )% | ||||||||||||||
APAC region transactions - YoY % change | v, z | 3 | % | 0 | % | (4 | )% | 1 | % | (4 | )% | (3 | )% | (3 | )% | ||||||||||||||
LACA region revenues (GAAP) - YoY % change | v, aa | (13 | )% | (3 | )% | (3 | )% | (6 | )% | 4 | % | 6 | % | 5 | % | ||||||||||||||
LACA region revenues (constant currency) - YoY % change | m, v, aa | (7 | )% | 4 | % | 4 | % | 2 | % | 10 | % | 13 | % | 12 | % | ||||||||||||||
LACA region transactions - YoY % change | v, aa | 0 | % | 2 | % | 2 | % | 3 | % | 6 | % | 7 | % | 7 | % |
Notes* | 2Q14 | 3Q14 | 4Q14 | FY2014 | 1Q15 | 2Q15 | YTD 2Q15 | |||||||||||||||
westernunion.com region revenues (GAAP) - YoY % change | v, bb | 31 | % | 21 | % | 19 | % | 28 | % | 17 | % | 22 | % | 20 | % | |||||||
westernunion.com region revenues (constant currency) - YoY % change | n, v, bb | 30 | % | 20 | % | 23 | % | 29 | % | 23 | % | 28 | % | 26 | % | |||||||
westernunion.com region transactions - YoY % change | v, bb | 46 | % | 34 | % | 27 | % | 39 | % | 25 | % | 27 | % | 26 | % | |||||||
International revenues - YoY % change | cc | 1 | % | 1 | % | (4 | )% | 0 | % | (7 | )% | (5 | )% | (6 | )% | |||||||
International transactions - YoY % change | cc | 6 | % | 4 | % | 0 | % | 5 | % | 0 | % | 1 | % | 0 | % | |||||||
International revenues - % of C2C segment revenues | cc | 71 | % | 72 | % | 72 | % | 72 | % | 69 | % | 70 | % | 69 | % | |||||||
United States originated revenues - YoY % change | dd | 5 | % | 4 | % | 3 | % | 5 | % | 4 | % | 3 | % | 4 | % | |||||||
United States originated transactions - YoY % change | dd | 6 | % | 6 | % | 5 | % | 6 | % | 6 | % | 6 | % | 6 | % | |||||||
United States originated revenues - % of C2C segment revenues | dd | 29 | % | 28 | % | 28 | % | 28 | % | 31 | % | 30 | % | 31 | % | |||||||
Electronic channels revenues - YoY % change | ee | 27 | % | 21 | % | 17 | % | 24 | % | 17 | % | 19 | % | 18 | % | |||||||
Consumer-to-Business (C2B) Segment | ||||||||||||||||||||||
Revenues (GAAP) - YoY % change | (5 | )% | (1 | )% | 4 | % | (2 | )% | 7 | % | 8 | % | 8 | % | ||||||||
Revenues (constant currency) - YoY % change | o | 8 | % | 11 | % | 15 | % | 10 | % | 11 | % | 12 | % | 12 | % | |||||||
Operating margin | 16.2 | % | 15.4 | % | 14.2 | % | 16.5 | % | 18.7 | % | (4.1 | )% | 7.3 | % | ||||||||
Operating margin (excluding Paymap settlement agreement) | p | N/A | N/A | N/A | N/A | N/A | 18.3 | % | 18.5 | % | ||||||||||||
Business Solutions (B2B) Segment | ||||||||||||||||||||||
Revenues (GAAP) - YoY % change | 0 | % | 4 | % | 1 | % | 3 | % | (1 | )% | (1 | )% | (1 | )% | ||||||||
Revenues (constant currency) - YoY % change | q | 0 | % | 3 | % | 5 | % | 4 | % | 7 | % | 9 | % | 8 | % | |||||||
Operating margin | (3.4 | )% | (0.2 | )% | (4.9 | )% | (3.0 | )% | 2.1 | % | (0.4 | )% | 0.9 | % | ||||||||
% of Total Company Revenue | ||||||||||||||||||||||
Consumer-to-Consumer segment revenues | 81 | % | 80 | % | 80 | % | 80 | % | 79 | % | 80 | % | 79 | % | ||||||||
Consumer-to-Business segment revenues | 10 | % | 11 | % | 11 | % | 11 | % | 12 | % | 11 | % | 12 | % | ||||||||
Business Solutions segment revenues | 7 | % | 7 | % | 7 | % | 7 | % | 7 | % | 7 | % | 7 | % | ||||||||
Consumer-to-Consumer region revenues: | ||||||||||||||||||||||
Europe and CIS revenues | v, w | 22 | % | 21 | % | 21 | % | 21 | % | 20 | % | 20 | % | 20 | % | |||||||
North America revenues | v, x | 19 | % | 19 | % | 19 | % | 19 | % | 19 | % | 19 | % | 19 | % | |||||||
Middle East and Africa revenues | v, y | 16 | % | 16 | % | 16 | % | 16 | % | 16 | % | 16 | % | 16 | % | |||||||
APAC revenues | v, z | 12 | % | 12 | % | 11 | % | 12 | % | 11 | % | 11 | % | 11 | % | |||||||
LACA revenues | v, aa | 8 | % | 8 | % | 9 | % | 8 | % | 8 | % | 9 | % | 8 | % | |||||||
westernunion.com revenues | v, bb | 4 | % | 4 | % | 4 | % | 4 | % | 5 | % | 5 | % | 5 | % | |||||||
Electronic channels revenues | ee | 6 | % | 6 | % | 6 | % | 6 | % | 7 | % | 7 | % | 7 | % |
* See page 13 of the press release for the applicable Note references and the reconciliation of non-GAAP financial measures. |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
2015 | 2014 | % Change | 2015 | 2014 | % Change | ||||||||||||||||
Revenues: | |||||||||||||||||||||
Transaction fees | $ | 988.3 | $ | 1,029.0 | (4 | )% | $ | 1,936.9 | $ | 2,016.9 | (4 | )% | |||||||||
Foreign exchange revenues | 362.1 | 344.3 | 5 | % | 700.1 | 673.6 | 4 | % | |||||||||||||
Other revenues | 33.2 | 32.3 | 3 | % | 67.5 | 65.9 | 2 | % | |||||||||||||
Total revenues | 1,383.6 | 1,405.6 | (2 | )% | 2,704.5 | 2,756.4 | (2 | )% | |||||||||||||
Expenses: | |||||||||||||||||||||
Cost of services | 799.4 | 827.8 | (3 | )% | 1,571.2 | 1,625.0 | (3 | )% | |||||||||||||
Selling, general and administrative (a) | 333.4 | 299.5 | 11 | % | 610.2 | 581.1 | 5 | % | |||||||||||||
Total expenses | 1,132.8 | 1,127.3 | 0 | % | 2,181.4 | 2,206.1 | (1 | )% | |||||||||||||
Operating income | 250.8 | 278.3 | (10 | )% | 523.1 | 550.3 | (5 | )% | |||||||||||||
Other income/(expense): | |||||||||||||||||||||
Interest income | 2.5 | 2.9 | (14 | )% | 5.4 | 7.6 | (29 | )% | |||||||||||||
Interest expense | (43.1 | ) | (43.4 | ) | (1 | )% | (84.9 | ) | (91.0 | ) | (7 | )% | |||||||||
Derivative gains/(losses), net | — | (2.0 | ) | (b) | 1.0 | (2.6 | ) | (b) | |||||||||||||
Other expense, net | (3.3 | ) | (3.7 | ) | (11 | )% | (5.1 | ) | (4.8 | ) | 6 | % | |||||||||
Total other expense, net | (43.9 | ) | (46.2 | ) | (5 | )% | (83.6 | ) | (90.8 | ) | (8 | )% | |||||||||
Income before income taxes | 206.9 | 232.1 | (11 | )% | 439.5 | 459.5 | (4 | )% | |||||||||||||
Provision for income taxes | 17.6 | 38.3 | (54 | )% | 46.3 | 62.7 | (26 | )% | |||||||||||||
Net income | $ | 189.3 | $ | 193.8 | (2 | )% | $ | 393.2 | $ | 396.8 | (1 | )% | |||||||||
Earnings per share: | |||||||||||||||||||||
Basic | $ | 0.37 | $ | 0.36 | 3 | % | $ | 0.76 | $ | 0.73 | 4 | % | |||||||||
Diluted | $ | 0.36 | $ | 0.36 | 0 | % | $ | 0.75 | $ | 0.73 | 3 | % | |||||||||
Weighted-average shares outstanding: | |||||||||||||||||||||
Basic | 515.2 | 537.1 | 518.1 | 541.5 | |||||||||||||||||
Diluted | 519.8 | 539.9 | 522.5 | 544.6 | |||||||||||||||||
Cash dividends declared per common share | $ | 0.155 | $ | 0.125 | 24 | % | $ | 0.31 | $ | 0.25 | 24 | % |
__________ | |||||||
(a) | For both the three and six months ended June 30, 2015, selling, general and administrative expenses included $35.3 million of expenses related to a settlement agreement reached with the Consumer Financial Protection Bureau regarding the Equity Accelerator service of Paymap, Inc., a subsidiary of the Company. | ||||||
(b) | Calculation not meaningful. |
June 30, 2015 | December 31, 2014 | |||||||
Assets | ||||||||
Cash and cash equivalents (a) | $ | 1,630.5 | $ | 1,783.2 | ||||
Settlement assets | 3,490.4 | 3,313.7 | ||||||
Property and equipment, net of accumulated depreciation of | ||||||||
$509.1 and $478.5, respectively | 201.2 | 206.4 | ||||||
Goodwill | 3,168.3 | 3,169.2 | ||||||
Other intangible assets, net of accumulated amortization of | ||||||||
$834.7 and $820.0, respectively | 768.3 | 748.1 | ||||||
Other assets | 805.1 | 669.8 | ||||||
Total assets | $ | 10,063.8 | $ | 9,890.4 | ||||
Liabilities and Stockholders' Equity | ||||||||
Liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 587.8 | $ | 600.4 | ||||
Settlement obligations | 3,490.4 | 3,313.7 | ||||||
Income taxes payable | 176.8 | 166.3 | ||||||
Deferred tax liability, net | 310.1 | 305.0 | ||||||
Borrowings | 3,725.8 | 3,720.4 | ||||||
Other liabilities | 465.5 | 484.2 | ||||||
Total liabilities | 8,756.4 | 8,590.0 | ||||||
Stockholders' equity: | ||||||||
Preferred stock, $1.00 par value; 10 shares authorized; | ||||||||
no shares issued | — | — | ||||||
Common stock, $0.01 par value; 2,000 shares authorized; | ||||||||
512.1 shares and 521.5 shares issued and outstanding as of | ||||||||
June 30, 2015 and December 31, 2014, respectively | 5.1 | 5.2 | ||||||
Capital surplus | 541.6 | 445.4 | ||||||
Retained earnings | 884.2 | 968.7 | ||||||
Accumulated other comprehensive loss | (123.5 | ) | (118.9 | ) | ||||
Total stockholders' equity | 1,307.4 | 1,300.4 | ||||||
Total liabilities and stockholders' equity | $ | 10,063.8 | $ | 9,890.4 |
__________ | ||||
(a) | Approximately $1.0 billion and $950 million was held by entities outside of the United States as of June 30, 2015 and December 31, 2014, respectively. |
Six Months Ended June 30, | ||||||||
2015 | 2014 | |||||||
Cash Flows From Operating Activities | ||||||||
Net income | $ | 393.2 | $ | 396.8 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 32.6 | 33.0 | ||||||
Amortization | 94.2 | 102.6 | ||||||
Other non-cash items, net | 24.9 | 32.0 | ||||||
Increase/(decrease) in cash, excluding the effects of acquisitions, resulting from changes in: | ||||||||
Other assets | (57.6 | ) | (16.6 | ) | ||||
Accounts payable and accrued liabilities | (23.1 | ) | (100.9 | ) | ||||
Income taxes payable | 10.9 | (8.5 | ) | |||||
Other liabilities | (9.4 | ) | 11.7 | |||||
Net cash provided by operating activities | 465.7 | 450.1 | ||||||
Cash Flows From Investing Activities | ||||||||
Capitalization of contract costs | (74.7 | ) | (44.4 | ) | ||||
Capitalization of purchased and developed software | (20.8 | ) | (17.6 | ) | ||||
Purchases of property and equipment | (26.9 | ) | (34.3 | ) | ||||
Acquisition of business | — | (10.6 | ) | |||||
Purchase of non-settlement related investments | (100.0 | ) | — | |||||
Proceeds from sale of non-settlement related investments | — | 100.2 | ||||||
Net cash used in investing activities | (222.4 | ) | (6.7 | ) | ||||
Cash Flows From Financing Activities | ||||||||
Proceeds from exercise of options | 77.8 | 5.6 | ||||||
Cash dividends paid | (160.0 | ) | (134.4 | ) | ||||
Common stock repurchased | (313.8 | ) | (318.0 | ) | ||||
Net proceeds from commercial paper | — | 35.0 | ||||||
Principal payments on borrowings | — | (500.0 | ) | |||||
Net cash used in financing activities | (396.0 | ) | (911.8 | ) | ||||
Net change in cash and cash equivalents | (152.7 | ) | (468.4 | ) | ||||
Cash and cash equivalents at beginning of period | 1,783.2 | 2,073.1 | ||||||
Cash and cash equivalents at end of period | $ | 1,630.5 | $ | 1,604.7 |
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||
2015 | 2014 | % Change | 2015 | 2014 | % Change | ||||||||||||||||
Revenues: | |||||||||||||||||||||
Consumer-to-Consumer (C2C): | |||||||||||||||||||||
Transaction fees | $ | 816.1 | $ | 867.1 | (6 | )% | $ | 1,592.3 | $ | 1,692.7 | (6 | )% | |||||||||
Foreign exchange revenues | 268.9 | 249.6 | 8 | % | 513.0 | 485.6 | 6 | % | |||||||||||||
Other revenues | 16.5 | 15.4 | 7 | % | 34.5 | 31.3 | 10 | % | |||||||||||||
Total Consumer-to-Consumer | 1,101.5 | 1,132.1 | (3 | )% | 2,139.8 | 2,209.6 | (3 | )% | |||||||||||||
Consumer-to-Business (C2B): | |||||||||||||||||||||
Transaction fees | 151.6 | 139.4 | 9 | % | 303.0 | 280.1 | 8 | % | |||||||||||||
Foreign exchange and other revenues | 6.3 | 6.5 | (3 | )% | 12.7 | 13.0 | (2 | )% | |||||||||||||
Total Consumer-to-Business | 157.9 | 145.9 | 8 | % | 315.7 | 293.1 | 8 | % | |||||||||||||
Business Solutions (B2B): | |||||||||||||||||||||
Foreign exchange revenues | 87.5 | 87.7 | 0 | % | 175.4 | 178.1 | (2 | )% | |||||||||||||
Transaction fees and other revenues | 10.1 | 10.5 | (4 | )% | 20.2 | 19.5 | 4 | % | |||||||||||||
Total Business Solutions | 97.6 | 98.2 | (1 | )% | 195.6 | 197.6 | (1 | )% | |||||||||||||
Other: | |||||||||||||||||||||
Total revenues | 26.6 | 29.4 | (10 | )% | 53.4 | 56.1 | (5 | )% | |||||||||||||
Total consolidated revenues | $ | 1,383.6 | $ | 1,405.6 | (2 | )% | $ | 2,704.5 | $ | 2,756.4 | (2 | )% | |||||||||
Operating income/(loss): | |||||||||||||||||||||
Consumer-to-Consumer | $ | 256.6 | $ | 257.5 | 0 | % | $ | 496.8 | $ | 504.5 | (2 | )% | |||||||||
Consumer-to-Business | (6.4 | ) | 23.6 | (a) | 23.1 | 53.4 | (a) | ||||||||||||||
Business Solutions | (0.4 | ) | (3.3 | ) | (b) | 1.7 | (6.9 | ) | (b) | ||||||||||||
Other | 1.0 | 0.5 | (b) | 1.5 | (0.7 | ) | (b) | ||||||||||||||
Total consolidated operating income | $ | 250.8 | $ | 278.3 | (10 | )% | $ | 523.1 | $ | 550.3 | (5 | )% | |||||||||
Operating income/(loss) margin: | |||||||||||||||||||||
Consumer-to-Consumer | 23.3 | % | 22.7 | % | 0.6 | % | 23.2 | % | 22.8 | % | 0.4 | % | |||||||||
Consumer-to-Business | (4.1) | % | 16.2 | % | (a) | 7.3 | % | 18.2 | % | (a) | |||||||||||
Business Solutions | (0.4) | % | (3.4 | )% | 3.0 | % | 0.9 | % | (3.5) | % | 4.4 | % | |||||||||
Total consolidated operating income margin | 18.1 | % | 19.8 | % | (1.7 | )% | 19.3 | % | 20.0 | % | (0.7 | )% |
__________ | |
(a) | For both the three and six months ended June 30, 2015, Consumer-to-Business operating income/(loss) included $35.3 million of expenses related to a settlement agreement reached with the Consumer Financial Protection Bureau regarding the Equity Accelerator service of Paymap, Inc., a subsidiary of the Company. |
(b) | Calculation not meaningful. |
2Q14 | 3Q14 | 4Q14 | FY2014 | 1Q15 | 2Q15 | YTD 2Q15 | |||||||||||||||||||||||
Consolidated Metrics | |||||||||||||||||||||||||||||
(a) | Revenues, as reported (GAAP) | $ | 1,405.6 | $ | 1,440.9 | $ | 1,409.9 | $ | 5,607.2 | $ | 1,320.9 | $ | 1,383.6 | $ | 2,704.5 | ||||||||||||||
Foreign currency translation impact (s) | 26.3 | 35.0 | 63.7 | 157.5 | 78.6 | 84.7 | 163.3 | ||||||||||||||||||||||
Revenues, constant currency adjusted | $ | 1,431.9 | $ | 1,475.9 | $ | 1,473.6 | $ | 5,764.7 | $ | 1,399.5 | $ | 1,468.3 | $ | 2,867.8 | |||||||||||||||
Prior year revenues, as reported (GAAP) | $ | 1,385.9 | $ | 1,408.8 | $ | 1,421.9 | $ | 5,542.0 | $ | 1,350.8 | $ | 1,405.6 | $ | 2,756.4 | |||||||||||||||
Revenue change, as reported (GAAP) | 1 | % | 2 | % | (1 | )% | 1 | % | (2 | )% | (2 | )% | (2 | )% | |||||||||||||||
Revenue change, constant currency adjusted | 3 | % | 5 | % | 4 | % | 4 | % | 4 | % | 4 | % | 4 | % | |||||||||||||||
(b) | Operating income, as reported (GAAP) | $ | 278.3 | $ | 314.1 | $ | 276.1 | $ | 1,140.5 | $ | 272.3 | $ | 250.8 | $ | 523.1 | ||||||||||||||
Less: Paymap settlement agreement (t) | N/A | N/A | N/A | N/A | N/A | 35.3 | 35.3 | ||||||||||||||||||||||
Operating income, excluding Paymap settlement agreement | $ | 278.3 | $ | 314.1 | $ | 276.1 | $ | 1,140.5 | $ | 272.3 | $ | 286.1 | $ | 558.4 | |||||||||||||||
Operating income margin, as reported (GAAP) | 19.8 | % | 21.8 | % | 19.6 | % | 20.3 | % | 20.6 | % | 18.1 | % | 19.3 | % | |||||||||||||||
Operating income margin, excluding Paymap settlement agreement | N/A | N/A | N/A | N/A | N/A | 20.7 | % | 20.6 | % | ||||||||||||||||||||
(c) | Operating income, as reported (GAAP) | $ | 278.3 | $ | 314.1 | $ | 276.1 | $ | 1,140.5 | $ | 272.3 | $ | 250.8 | $ | 523.1 | ||||||||||||||
Reversal of depreciation and amortization | 68.4 | 66.8 | 69.5 | 271.9 | 63.9 | 62.9 | 126.8 | ||||||||||||||||||||||
EBITDA (u) | $ | 346.7 | $ | 380.9 | $ | 345.6 | $ | 1,412.4 | $ | 336.2 | $ | 313.7 | $ | 649.9 | |||||||||||||||
Less: Paymap settlement agreement (t) | N/A | N/A | N/A | N/A | N/A | 35.3 | 35.3 | ||||||||||||||||||||||
Adjusted EBITDA, excluding Paymap settlement agreement | $ | 346.7 | $ | 380.9 | $ | 345.6 | $ | 1,412.4 | $ | 336.2 | $ | 349.0 | $ | 685.2 | |||||||||||||||
Operating income margin, as reported (GAAP) | 19.8 | % | 21.8 | % | 19.6 | % | 20.3 | % | 20.6 | % | 18.1 | % | 19.3 | % | |||||||||||||||
EBITDA margin | 24.7 | % | 26.4 | % | 24.5 | % | 25.2 | % | 25.5 | % | 22.7 | % | 24.0 | % | |||||||||||||||
Adjusted EBITDA margin, excluding Paymap settlement agreement | N/A | N/A | N/A | N/A | N/A | 25.2 | % | 25.3 | % | ||||||||||||||||||||
(d) | Net income, as reported (GAAP) | $ | 193.8 | $ | 234.1 | $ | 221.5 | $ | 852.4 | $ | 203.9 | $ | 189.3 | $ | 393.2 | ||||||||||||||
Less: Paymap settlement agreement, net of income tax benefit (t) | N/A | N/A | N/A | N/A | N/A | 24.2 | 24.2 | ||||||||||||||||||||||
Net income, excluding Paymap settlement agreement | $ | 193.8 | $ | 234.1 | $ | 221.5 | $ | 852.4 | $ | 203.9 | $ | 213.5 | $ | 417.4 | |||||||||||||||
Diluted earnings per share ("EPS"), as reported (GAAP) ($-dollars) | $ | 0.36 | $ | 0.44 | $ | 0.42 | $ | 1.59 | $ | 0.39 | $ | 0.36 | $ | 0.75 | |||||||||||||||
Impact from Paymap settlement agreement, net of income tax benefit ($-dollars) | N/A | N/A | N/A | N/A | N/A | 0.05 | 0.05 | ||||||||||||||||||||||
Diluted EPS, excluding Paymap settlement agreement ($-dollars) | N/A | N/A | N/A | N/A | N/A | $ | 0.41 | $ | 0.80 | ||||||||||||||||||||
Diluted weighted-average shares outstanding | 539.9 | 531.2 | 526.9 | 536.8 | 525.2 | 519.8 | 522.5 | ||||||||||||||||||||||
(e) | Effective tax rate, as reported (GAAP) | 16.5 | % | 14.2 | % | 6.1 | % | 12.0 | % | 12.3 | % | 8.5 | % | 10.5 | % | ||||||||||||||
Impact from Paymap settlement agreement, net of income tax benefit (t) | N/A | N/A | N/A | N/A | N/A | 3.3 | % | 1.6 | % | ||||||||||||||||||||
Effective tax rate, excluding Paymap settlement agreement | N/A | N/A | N/A | N/A | N/A | 11.8 | % | 12.1 | % |
2Q14 | 3Q14 | 4Q14 | FY2014 | 1Q15 | 2Q15 | YTD 2Q15 | |||||||||||||||||||||||
Consumer-to-Consumer Segment | |||||||||||||||||||||||||||||
(f) | Revenues, as reported (GAAP) | $ | 1,132.1 | $ | 1,150.9 | $ | 1,125.3 | $ | 4,485.8 | $ | 1,038.3 | $ | 1,101.5 | $ | 2,139.8 | ||||||||||||||
Foreign currency translation impact (s) | 7.5 | 17.9 | 42.8 | 80.7 | 63.0 | 69.1 | 132.1 | ||||||||||||||||||||||
Revenues, constant currency adjusted | $ | 1,139.6 | $ | 1,168.8 | $ | 1,168.1 | $ | 4,566.5 | $ | 1,101.3 | $ | 1,170.6 | $ | 2,271.9 | |||||||||||||||
Prior year revenues, as reported (GAAP) | $ | 1,108.8 | $ | 1,128.1 | $ | 1,146.5 | $ | 4,433.6 | $ | 1,077.5 | $ | 1,132.1 | $ | 2,209.6 | |||||||||||||||
Revenue change, as reported (GAAP) | 2 | % | 2 | % | (2 | )% | 1 | % | (4 | )% | (3) | % | (3) | % | |||||||||||||||
Revenue change, constant currency adjusted | 3 | % | 4 | % | 2 | % | 3 | % | 2 | % | 3 | % | 3 | % | |||||||||||||||
(g) | Principal per transaction, as reported ($ - dollars) | $ | 341 | $ | 339 | $ | 323 | $ | 335 | $ | 315 | $ | 316 | $ | 316 | ||||||||||||||
Foreign currency translation impact (s) ($ - dollars) | (2 | ) | — | 12 | 3 | 19 | 23 | 21 | |||||||||||||||||||||
Principal per transaction, constant currency adjusted ($ - dollars) | $ | 339 | $ | 339 | $ | 335 | $ | 338 | $ | 334 | $ | 339 | $ | 337 | |||||||||||||||
Prior year principal per transaction, as reported ($ - dollars) | $ | 340 | $ | 339 | $ | 335 | $ | 338 | $ | 338 | $ | 341 | $ | 339 | |||||||||||||||
Principal per transaction change, as reported | 0 | % | 0 | % | (4 | )% | (1 | )% | (7 | )% | (7) | % | (7) | % | |||||||||||||||
Principal per transaction change, constant currency adjusted | 0 | % | 0 | % | 0 | % | 0 | % | (1 | )% | (1) | % | (1) | % | |||||||||||||||
(h) | Cross-border principal, as reported ($ - billions) | $ | 19.7 | $ | 20.0 | $ | 19.2 | $ | 77.2 | $ | 17.5 | $ | 18.8 | $ | 36.3 | ||||||||||||||
Foreign currency translation impact (s) ($ - billions) | (0.1 | ) | — | 0.8 | 0.8 | 1.1 | 1.3 | 2.4 | |||||||||||||||||||||
Cross-border principal, constant currency adjusted ($ - billions) | $ | 19.6 | $ | 20.0 | $ | 20.0 | $ | 78.0 | $ | 18.6 | $ | 20.1 | $ | 38.7 | |||||||||||||||
Prior year cross-border principal, as reported ($ - billions) | $ | 18.5 | $ | 19.0 | $ | 19.5 | $ | 73.9 | $ | 18.3 | $ | 19.7 | $ | 38.0 | |||||||||||||||
Cross-border principal change, as reported | 7 | % | 5 | % | (1 | )% | 5 | % | (4 | )% | (5) | % | (4) | % | |||||||||||||||
Cross-border principal change, constant currency adjusted | 6 | % | 5 | % | 2 | % | 6 | % | 2 | % | 2 | % | 2 | % | |||||||||||||||
2Q14 | 3Q14 | 4Q14 | FY2014 | 1Q15 | 2Q15 | YTD 2Q15 | ||||||||||||||||
Consumer-to-Consumer Segment cont. | ||||||||||||||||||||||
(i) | Europe and CIS region revenue change, as reported (GAAP) | 3 | % | 1 | % | (5 | )% | 0 | % | (9 | )% | (9 | )% | (9 | )% | |||||||
Europe and CIS region foreign currency translation impact (s) | (1 | )% | 2 | % | 6 | % | 1 | % | 11 | % | 11 | % | 11 | % | ||||||||
Europe and CIS region revenue change, constant currency adjusted | 2 | % | 3 | % | 1 | % | 1 | % | 2 | % | 2 | % | 2 | % | ||||||||
(j) | North America region revenue change, as reported (GAAP) | 1 | % | 2 | % | 0 | % | 1 | % | (2 | )% | (2 | )% | (2 | )% | |||||||
North America region foreign currency translation impact (s) | 0 | % | 0 | % | 1 | % | 0 | % | 2 | % | 1 | % | 1 | % | ||||||||
North America region revenue change, constant currency adjusted | 1 | % | 2 | % | 1 | % | 1 | % | 0 | % | (1 | )% | (1 | )% | ||||||||
(k) | Middle East and Africa region revenue change, as reported (GAAP) | 6 | % | 3 | % | (3 | )% | 2 | % | (6 | )% | (4 | )% | (5 | )% | |||||||
Middle East and Africa region foreign currency translation impact (s) | 0 | % | 1 | % | 3 | % | 1 | % | 5 | % | 5 | % | 5 | % | ||||||||
Middle East and Africa region revenue change, constant currency adjusted | 6 | % | 4 | % | 0 | % | 3 | % | (1 | )% | 1 | % | 0 | % | ||||||||
(l) | APAC region revenue change, as reported (GAAP) | 1 | % | 1 | % | (3 | )% | 0 | % | (6 | )% | (5 | )% | (6 | )% | |||||||
APAC region foreign currency translation impact (s) | 1 | % | 1 | % | 4 | % | 2 | % | 4 | % | 5 | % | 5 | % | ||||||||
APAC region revenue change, constant currency adjusted | 2 | % | 2 | % | 1 | % | 2 | % | (2 | )% | 0 | % | (1 | )% | ||||||||
(m) | LACA region revenue change, as reported (GAAP) | (13 | )% | (3 | )% | (3 | )% | (6 | )% | 4 | % | 6 | % | 5 | % | |||||||
LACA region foreign currency translation impact (s) | 6 | % | 7 | % | 7 | % | 8 | % | 6 | % | 7 | % | 7 | % | ||||||||
LACA region revenue change, constant currency adjusted | (7 | )% | 4 | % | 4 | % | 2 | % | 10 | % | 13 | % | 12 | % | ||||||||
(n) | westernunion.com region revenue change, as reported (GAAP) | 31 | % | 21 | % | 19 | % | 28 | % | 17 | % | 22 | % | 20 | % | |||||||
westernunion.com region foreign currency translation impact (s) | (1 | )% | (1 | )% | 4 | % | 1 | % | 6 | % | 6 | % | 6 | % | ||||||||
westernunion.com region revenue change, constant currency adjusted | 30 | % | 20 | % | 23 | % | 29 | % | 23 | % | 28 | % | 26 | % | ||||||||
2Q14 | 3Q14 | 4Q14 | FY2014 | 1Q15 | 2Q15 | YTD 2Q15 | |||||||||||||||||||||||
Consumer-to-Business Segment | |||||||||||||||||||||||||||||
(o) | Revenues, as reported (GAAP) | $ | 145.9 | $ | 150.4 | $ | 155.3 | $ | 598.8 | $ | 157.8 | $ | 157.9 | $ | 315.7 | ||||||||||||||
Foreign currency translation impact (s) | 18.8 | 18.1 | 16.6 | 70.1 | 6.3 | 4.9 | 11.2 | ||||||||||||||||||||||
Revenues, constant currency adjusted | $ | 164.7 | $ | 168.5 | $ | 171.9 | $ | 668.9 | $ | 164.1 | $ | 162.8 | $ | 326.9 | |||||||||||||||
Prior year revenues, as reported (GAAP) | $ | 153.0 | $ | 152.3 | $ | 149.5 | $ | 608.5 | $ | 147.2 | $ | 145.9 | $ | 293.1 | |||||||||||||||
Revenue change, as reported (GAAP) | (5 | )% | (1 | )% | 4 | % | (2 | )% | 7 | % | 8 | % | 8 | % | |||||||||||||||
Revenue change, constant currency adjusted | 8 | % | 11 | % | 15 | % | 10 | % | 11 | % | 12 | % | 12 | % | |||||||||||||||
(p) | Operating income/(loss), as reported (GAAP) | $ | 23.6 | $ | 23.2 | $ | 22.1 | $ | 98.7 | $ | 29.5 | $ | (6.4 | ) | $ | 23.1 | |||||||||||||
Less: Paymap settlement agreement (t) | N/A | N/A | N/A | N/A | N/A | 35.3 | 35.3 | ||||||||||||||||||||||
Operating income, excluding Paymap settlement agreement | $ | 23.6 | $ | 23.2 | $ | 22.1 | $ | 98.7 | $ | 29.5 | $ | 28.9 | $ | 58.4 | |||||||||||||||
Operating income/(loss) margin, as reported (GAAP) | 16.2 | % | 15.4 | % | 14.2 | % | 16.5 | % | 18.7 | % | (4.1 | )% | 7.3 | % | |||||||||||||||
Operating income margin, excluding Paymap settlement agreement | N/A | N/A | N/A | N/A | N/A | 18.3 | % | 18.5 | % | ||||||||||||||||||||
Business Solutions Segment | |||||||||||||||||||||||||||||
(q) | Revenues, as reported (GAAP) | $ | 98.2 | $ | 105.8 | $ | 101.2 | $ | 404.6 | $ | 98.0 | $ | 97.6 | $ | 195.6 | ||||||||||||||
Foreign currency translation impact (s) | (0.3 | ) | (1.6 | ) | 3.7 | 4.5 | 8.1 | 9.4 | 17.5 | ||||||||||||||||||||
Revenues, constant currency adjusted | $ | 97.9 | $ | 104.2 | $ | 104.9 | $ | 409.1 | $ | 106.1 | $ | 107.0 | $ | 213.1 | |||||||||||||||
Prior year revenues, as reported (GAAP) | $ | 98.3 | $ | 101.6 | $ | 100.2 | $ | 392.9 | $ | 99.4 | $ | 98.2 | $ | 197.6 | |||||||||||||||
Revenue change, as reported (GAAP) | 0 | % | 4 | % | 1 | % | 3 | % | (1 | )% | (1 | )% | (1 | )% | |||||||||||||||
Revenue change, constant currency adjusted | 0 | % | 3 | % | 5 | % | 4 | % | 7 | % | 9 | % | 8 | % | |||||||||||||||
(r) | Operating income/(loss), as reported (GAAP) | $ | (3.3 | ) | $ | (0.2 | ) | $ | (5.0 | ) | $ | (12.1 | ) | $ | 2.1 | $ | (0.4 | ) | $ | 1.7 | |||||||||
Reversal of depreciation and amortization | 14.8 | 13.7 | 12.7 | 56.1 | 12.2 | 12.2 | 24.4 | ||||||||||||||||||||||
EBITDA (u) | $ | 11.5 | $ | 13.5 | $ | 7.7 | $ | 44.0 | $ | 14.3 | $ | 11.8 | $ | 26.1 | |||||||||||||||
Operating income/(loss) margin, as reported (GAAP) | (3.4 | )% | (0.2 | )% | (4.9 | )% | (3.0 | )% | 2.1 | % | (0.4 | )% | 0.9 | % | |||||||||||||||
EBITDA margin | 11.7 | % | 12.8 | % | 7.6 | % | 10.9 | % | 14.6 | % | 12.1 | % | 13.3 | % |
2015 Operating Income Margin Outlook | ||||||||
Operating income margin (GAAP) | 20 | % | ||||||
Impact for Paymap settlement agreement (t) | 1 | % | ||||||
Operating income margin, excluding Paymap settlement agreement | 21 | % | ||||||
2015 EPS Outlook | Range | |||||||
EPS guidance (GAAP) ($ - dollars) | $ | 1.55 | $ | 1.62 | ||||
Impact from Paymap settlement agreement, net of income tax benefit (t) ($ - dollars) | 0.05 | 0.05 | ||||||
EPS guidance, excluding Paymap settlement agreement, net of income tax benefit ($ - dollars) | $ | 1.60 | $ | 1.67 |
Non-GAAP related notes: | ||||||||||||||
(s) | Represents the impact from the fluctuation in exchange rates between all foreign currency denominated amounts and the United States dollar. Constant currency results exclude any benefit or loss caused by foreign exchange fluctuations between foreign currencies and the United States dollar, net of foreign currency hedges, which would not have occurred if there had been a constant exchange rate. | |||||||||||||
(t) | Represents the impact from a settlement agreement reached with the Consumer Financial Protection Bureau regarding the Equity Accelerator service of Paymap, Inc., a subsidiary of the Company. | |||||||||||||
(u) | Earnings before Interest, Taxes, Depreciation and Amortization ("EBITDA") results from taking operating income and adjusting for depreciation and amortization expenses. EBITDA results provide an additional performance measurement calculation which helps neutralize the operating income effect of assets acquired in prior periods. | |||||||||||||
Other notes: | ||||||||||||||
(v) | Geographic split is determined based upon the region where the money transfer is initiated and the region where the money transfer is paid. For transactions originated and paid in different regions, the Company splits the transaction count and revenue between the two regions, with each region receiving 50%. For money transfers initiated and paid in the same region, 100% of the revenue and transactions are attributed to that region. For money transfers initiated through the Company’s websites (“westernunion.com”), 100% of the revenue and transactions are attributed to westernunion.com. | |||||||||||||
(w) | Represents the Europe and the Commonwealth of Independent States ("CIS") region of our Consumer-to-Consumer segment. | |||||||||||||
(x) | Represents the North America region of our Consumer-to-Consumer segment, including the United States, Mexico, and Canada. | |||||||||||||
(y) | Represents the Middle East and Africa region of our Consumer-to-Consumer segment. | |||||||||||||
(z) | Represents the Asia Pacific ("APAC") region of our Consumer-to-Consumer segment, including India, China, and South Asia. | |||||||||||||
(aa) | Represents the Latin America and the Caribbean ("LACA") region of our Consumer-to-Consumer segment. | |||||||||||||
(bb) | Represents transactions initiated on westernunion.com which are primarily paid out at Western Union agent locations in the respective regions. | |||||||||||||
(cc) | Represents transactions between and within foreign countries (including Canada and Mexico). Excludes all transactions originated in the United States. | |||||||||||||
(dd) | Represents transactions originated in the United States, including intra-country transactions. | |||||||||||||
(ee) | Represents revenue generated from electronic channels, which include westernunion.com, account based money transfer and mobile money transfer (included in the various segments). |
A:'1/B!0EQUB-Z84(=83<%"0;F%#A;36&4EYA0OQ$-O04PB
M5.PH(=23(:7F*DD&+$V)1(%ZZQ8F*2`VBY.E0#HOA,4`;1IBZY(8Z]XTI[A:
M'`Q=&5T5`)<0
M\&D0Q8MM"B*BIO@E$=[7BB0PQ1*3>$&I"9SVB&3M'@W$"%8L201E9(AMS`:3
M:*F[?(Z5#;DGM!8PX0P,"+B)%2HA5:,K[EB(#QC.2$15DH:K7Y17(8C/"*FR
MT9?6T0`*%Q`/'L+%0Q&M.L+("(B*F.F0NI-X4=$"DPA8G0Q0B1[1&I/,0C1)
M&H )W,!V:'C+DBA08M3L*"YBQ,5JQZ5ZQ=&39
M6U1*E47)T0.!O&F$ZX%:%!M&J,J(%!O%T9V`X&T71E3(:'A=M!%ZDNPM"E9Y
M:0UDB%=Q:% :-6D-KE76
M9Y@NR-1ER0?2K0.-DI2H*0000-0;B/T+EAT[VFT26[='OPZE%_R?P9Y1/+I,
ME]F9S;AXS-J_BQD9#!K\E*LR#LPA::)AN4<4N=>'L9[J6M=B;A(TOK8D`C/T
MWV?Z?T23U$6W*OI2:X7[DOM&S:K+J?=?[CZ&?1W>$&I>'G`-3KN+6TRF,\2;
MK>R5PHR$JBY0RH@VWBE$J4!PL@<08\+[4ZV'5 H#@NPM%GBM=D!('01Q,.LE^8#5.](5SL#7,;;0,-;-J,FKXKKT
MAAVEJ>3+BS8^0]CNNX=!.
M6CU4JA-VF^R?;GT3]?7[3H]0TTLB62"Y1X^V0?2`;5MA6`1@B0;I4_)R.=J2
M7691;DQ(`J)*$V6FZ0HDA*P;7MPTCZ#K_9;IW4]1\KG:;[[7P_CV?XHY6+6Y
M<,-B,AX1/#AB_P`4FV=K&N*69M_"S51^ZE9K4XBR9]W/G+#9(LM2U:*RZ)3>
M]O2#3U_K&FZ)HGI=.TLE;8Q7Z*JK?I7EZO[Q]+IYZG)OEV\V?9%3FI)MH2B]52TTPEYH^]*P1&
MA16'(I2F_L5B/WD86D;+,`4&>3.4O!>':;.).8/RE'EVG+]
("R67R(=2IQ!6@<4@VO`).VJB;#+5.66V
M$A6ZL``E4;(98)
&SZ0/PNYC(NYZ+38/
M"C;[FL+%U&+SJ&[JF1FL3IUB6 @]
M0RK*]E+'=MOBTK:7>_X'->>$=J]3