Western Union Reports Fourth Quarter and Full Year 2021 Results
The Western Union Company (NYSE: WU) reported Q4 earnings with a GAAP EPS of $0.42 and adjusted EPS of $0.64, marking a year-over-year increase. Digital money transfer revenue soared by 22% in 2021, exceeding $1 billion. Q4 revenue reached $1.3 billion, a 1% increase, buoyed by digital growth despite a slump in retail transfers. The company announced a new $1 billion share repurchase program and a quarterly dividend of $0.235 per share. For 2022, revenue is expected to decline mid-single digits, with adjusted EPS projected between $1.90 and $2.00.
- Digital money transfer revenue exceeded $1 billion, growing 22% compared to 2020.
- Fourth quarter adjusted EPS increased to $0.64 from $0.45 the previous year.
- New $1 billion share repurchase authorization to boost shareholder value.
- Quarterly dividend of $0.235 per share, payable March 31, 2022.
- Q4 GAAP EPS declined to $0.42 from $0.43 year-on-year due to a pension plan termination charge.
- Consumer-to-Consumer revenue declined 1% on a reported basis.
- 2022 revenue outlook anticipates a mid-single digit decline.
Q4 GAAP earnings per share (EPS) of
Full year 2021 digital money transfer revenue grows
Company announces new
The Company’s fourth quarter revenue of
GAAP EPS in the fourth quarter was
Adjusted EPS in the fourth quarter was
The Company announced that its board of directors approved a new
“I am excited to be at
“We delivered another strong quarter across our digital business, with double-digit growth in the fourth quarter and more than
CFO
Q4 Business Highlights
-
Consumer-to-Consumer (C2C) revenues declined
1% on a reported basis, or were flat on constant currency basis, while transactions were also flat during the quarter. Regionally, transaction growth in MEASA,Europe and CIS, and LACA was offset by declines in APAC andNorth America .
-
Digital money transfer revenues increased
13% on a reported basis, or12% constant currency, and represented24% and37% of total C2C revenues and transactions, respectively. Digital money transfer reached new quarterly highs for revenue, transactions, and principal. Westernunion.com revenue grew9% on a reported and constant currency basis, including cross-border revenue growth of12% . As expected, digital growth rates continued to moderate, given the significant digital demand the Company experienced in 2020.
-
Westernunion.com active users1 for the full year 2021 increased
6% year-over-year andthe Western Union mobile app was again the most downloaded mobile app among peer money transfer companies during the fourth quarter, according to data provided by mobile app marketing firmSensor Tower 2.
-
Western Union Business Solutions revenues increased
22% on a both reported and constant currency basis, resulting from improvement in international trade, as well as increased activity in the education and financial institution verticals. Other revenues, which consists primarily of retail bill payments in theU.S. andArgentina and money orders, increased5% on a reported basis.
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1 |
Active user defined as a unique consumer transacting at least once during the year |
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2 |
Data obtained from Sensor Tower App Install Market Share Report |
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Q4 Financial Highlights
-
GAAP operating margin in the quarter was
24.7% , compared to17.9% in the prior year period. The adjusted operating margin in the quarter was24.9% , compared to18.8% in the prior year period. The increase in the Company’s GAAP and adjusted operating margins was primarily due to strong Business Solutions segment operating profit, lower planned marketing expense, lower agent losses, and favorable foreign exchange impact. For a detailed reconciliation between GAAP and Adjusted operating margin, please see the “Adjustment Items” section of this press release.
-
The GAAP effective tax rate in the quarter was
6.7% , compared to11.0% in the prior year period, and the adjusted effective tax rate was12.1% in the quarter, compared to11.6% in the prior year period. The decrease in the Company’s GAAP effective tax rate was due to discrete tax benefits associated with the pension termination.
-
The Company returned
to shareholders in the fourth quarter, consisting of approximately$268 million in dividends and$93 million of share repurchases.$175 million
2021 Full Year Financial Highlights
-
The Company’s full year revenue of
increased$5.1 billion 5% compared to the prior year, or4% on a constant currency basis, including a less than1% benefit from inflation inArgentina . The revenue increase was driven by a strong growth in digital money transfer and the Business Solutions segment. Total C2C revenue grew4% , while digital money transfer revenue continued strong double-digit growth, increasing22% compared to 2020, and exceeded for the year. Business Solutions also contributed revenue growth, increasing$1 billion 18% year-over-year.
-
For the full year, the Business Solutions segment generated
of revenue,$422 million of EBITDA, and$120 million of operating profit excluding corporate allocations. In total, Business Solutions contributed approximately$104 million to 2021 adjusted EPS.$0.22
-
GAAP operating margin was
22.1% , compared to20.0% in the prior year. The increase in GAAP operating margin was primarily attributable to revenue growth, mix of commissions and lower other variable costs, the elimination of restructuring expenses, and foreign exchange impacts, partially offset by higher technology investment. Adjusted operating margin was22.5% compared to20.8% in the prior year with margin expansion driven by the same factors noted above and adjusted for restructuring expenses and acquisition and divestiture costs.
-
The GAAP effective tax rate for 2021 was
13.9% , compared to12.9% in the prior year, and the adjusted tax rate was12.7% , compared to13.0% in 2020. The increase in the GAAP tax rate was primarily due to deferred taxes recorded on the pending sale of Business Solutions, partially offset by discrete tax benefits associated with the pension termination.
-
GAAP EPS was
, compared to$1.97 in 2020. Adjusted earnings per share was$1.79 , compared to$2.19 in 2020. The increase in GAAP earnings per share was primarily due to similar factors described above for operating margin increase, as well as a gain on an investment sale and fewer shares outstanding. Growth in adjusted EPS was driven by similar factors as above, adjusted for certain items as described in the “Adjustment Items” section below.$1.87
-
GAAP cash flow from operating activities for the year exceeded
. The Company returned over$1 billion to shareholders in dividends and share repurchases for the full year.$780 million
2022 Outlook
The Company expects the following financial outlook for full year 2022, which assumes no material change in macro-economic conditions.
GAAP figures reflect an expected partial year of Business Solutions ownership including contractual payments to the buyer, representing profits between the first and second closings, associated divestiture and acquisition costs, and an estimated pre-tax gain of approximately
Adjusted revenue growth and operating margin exclude contributions from Business Solutions. In addition, adjusted operating margin excludes associated divestiture and acquisition costs. The adjusted effective tax rate and EPS exclude the expected gain on sale and divestiture and acquisition costs.
Revenue |
GAAP: mid-single digit decline
|
Operating Profit Margin |
GAAP and Adjusted: |
Effective Tax Rate |
GAAP: high-teens range
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EPS |
GAAP: |
Adjustment Items
Adjusted operating profit metrics for 2021 periods exclude acquisition and divestiture costs. Adjusted tax rate and earnings per share metrics for 2021 periods exclude the following items net of related taxes, as applicable: acquisition and divestiture costs (all quarters), the impact from the gain on an investment sale (second quarter), debt retirement expenses (second quarter), Business Solutions change in permanent reinvestment tax assertion (third quarter), and non-cash expenses associated with the termination of the Company’s pension plan (fourth quarter).
Adjusted operating profit, tax rate, and earnings per share metrics for 2020 periods exclude restructuring expenses and acquisition and divestiture costs, net of related taxes, as applicable.
Although the Company has previously incurred and can reasonably be expected to incur restructuring costs in the future, these expenses were specific to the implementation of a global strategy initiative and the Company has therefore provided adjusted financial results that exclude these expenses.
Additional Statistics
Additional key statistics for the quarter and historical trends can be found in the supplemental tables included with this press release.
All amounts included in the supplemental tables to this press release are rounded to the nearest tenth of a million, except as otherwise noted. As a result, the percentage changes and margins disclosed herein may not recalculate precisely using the rounded amounts provided.
Non-GAAP Measures
Reconciliations of non-GAAP to comparable GAAP measures are available in the accompanying schedules and in the “Investor Relations” section of the Company’s website at https://ir.westernunion.com.
Environmental, Social, and Governance (ESG)
Investor and Analyst Conference Call and Slide Presentation
The Company will host a conference call and webcast, including slides, at
The conference call and accompanying slides will be available via webcast at https://ir.westernunion.com. Registration for the event is required, so please register at least five minutes prior to the scheduled start time.
A webcast replay will be available at https://ir.westernunion.com.
Please note: All statements made by
Safe Harbor Compliance Statement for Forward-Looking Statements
This press release contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied by, our forward-looking statements. Words such as "expects," "intends," "targets," "anticipates," "believes," "estimates," "guides," "provides guidance," "provides outlook," and other similar expressions or future or conditional verbs such as "may," "will," "should," "would," "could," and "might" are intended to identify such forward-looking statements. Readers of this press release of
Possible events or factors that could cause results or performance to differ materially from those expressed in our forward-looking statements include the following: (i) events related to our Business and industry, such as: changes in general economic conditions and economic conditions in the regions and industries in which we operate, including global economic downturns and trade disruptions, or significantly slower growth or declines in the money transfer, payment service, and other markets in which we operate, including downturns or declines related to interruptions in migration patterns or other events, such as public health emergencies, epidemics, or pandemics, such as COVID-19, civil unrest, war, terrorism, natural disasters, or non-performance by our banks, lenders, insurers, or other financial services providers; failure to compete effectively in the money transfer and payment service industry, including among other things, with respect to price, with global and niche or corridor money transfer providers, banks and other money transfer and payment service providers, including digital, mobile and internet-based services, card associations, and card-based payment providers, and with digital currencies and related exchanges and protocols, and other innovations in technology and business models; geopolitical tensions, political conditions and related actions, including trade restrictions and government sanctions, which may adversely affect our business and economic conditions as a whole, including interruptions of
About
WU-G
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KEY STATISTICS |
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(Unaudited) |
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Notes* |
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4Q20 |
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FY2020 |
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1Q21 |
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2Q21 |
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3Q21 |
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4Q21 |
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FY2021 |
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Consolidated Metrics |
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Consolidated revenues (GAAP) - YoY % change |
|
(3) |
% |
(9) |
% |
2 |
% |
16 |
% |
2 |
% |
1 |
% |
5 |
% |
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Consolidated revenues (non-GAAP, constant currency and excluding Speedpay and Paymap) - YoY % change | (a) |
(1) |
% |
(3) |
% |
2 |
% |
13 |
% |
2 |
% |
2 |
% |
4 |
% |
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Consolidated operating margin (GAAP) |
|
17.9 |
% |
20.0 |
% |
19.2 |
% |
19.8 |
% |
24.8 |
% |
24.7 |
% |
22.1 |
% |
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Consolidated operating margin, excluding restructuring-related expenses and acquisition and divestiture costs (non-GAAP) | (b) |
18.8 |
% |
20.8 |
% |
19.3 |
% |
20.2 |
% |
25.2 |
% |
24.9 |
% |
22.5 |
% |
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EBITDA margin (non-GAAP) | (c) |
22.3 |
% |
24.7 |
% |
23.7 |
% |
24.1 |
% |
28.8 |
% |
28.4 |
% |
26.3 |
% |
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Consumer-to-Consumer (C2C) Segment Metrics |
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Revenues (GAAP) - YoY % change |
|
0 |
% |
(4) |
% |
4 |
% |
15 |
% |
0 |
% |
(1) |
% |
4 |
% |
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Revenues (non-GAAP, constant currency) - YoY % change | (e) |
0 |
% |
(3) |
% |
2 |
% |
12 |
% |
(1) |
% |
0 |
% |
3 |
% |
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Transactions (in millions) |
|
78.4 |
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290.5 |
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73.0 |
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78.0 |
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76.6 |
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78.3 |
|
305.9 |
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Transactions - YoY % change |
|
6 |
% |
0 |
% |
9 |
% |
15 |
% |
(1) |
% |
0 |
% |
5 |
% |
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Total principal ($- billions) |
|
$ | 26.7 |
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$ | 96.1 |
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$ | 25.7 |
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$ | 27.9 |
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$ | 27.7 |
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$ | 27.7 |
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$ | 109.0 |
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Principal per transaction, as reported - YoY % change |
|
14 |
% |
9 |
% |
15 |
% |
11 |
% |
4 |
% |
4 |
% |
8 |
% |
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Principal per transaction (constant currency) - YoY % change | (f) |
13 |
% |
10 |
% |
12 |
% |
8 |
% |
3 |
% |
4 |
% |
6 |
% |
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Cross-border principal, as reported - YoY % change |
|
24 |
% |
12 |
% |
28 |
% |
29 |
% |
4 |
% |
5 |
% |
15 |
% |
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Cross-border principal (constant currency) - YoY % change | (g) |
23 |
% |
13 |
% |
26 |
% |
25 |
% |
3 |
% |
5 |
% |
14 |
% |
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Operating margin |
|
20.5 |
% |
21.9 |
% |
19.6 |
% |
20.7 |
% |
24.3 |
% |
24.2 |
% |
22.2 |
% |
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Digital money transfer revenues (GAAP) - YoY % change (1) |
|
36 |
% |
38 |
% |
45 |
% |
22 |
% |
15 |
% |
13 |
% |
22 |
% |
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Digital money transfer foreign currency translation impact | (j) |
(1) |
% |
0 |
% |
(1) |
% |
(3) |
% |
(1) |
% |
(1) |
% |
(1) |
% |
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Digital money transfer revenues (non-GAAP, constant currency) - YoY % change (1) |
|
35 |
% |
38 |
% |
44 |
% |
19 |
% |
14 |
% |
12 |
% |
21 |
% |
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Digital money transfer transactions - YoY % change |
|
83 |
% |
81 |
% |
77 |
% |
33 |
% |
19 |
% |
17 |
% |
32 |
% |
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westernunion.com revenues (GAAP) - YoY % change | (gg) |
27 |
% |
27 |
% |
38 |
% |
18 |
% |
12 |
% |
9 |
% |
18 |
% |
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westernunion.com foreign currency translation impact | (j) |
(1) |
% |
0 |
% |
(1) |
% |
(3) |
% |
(1) |
% |
0 |
% |
(1) |
% |
|||||||||||||||
westernunion.com revenues (non-GAAP, constant currency) - YoY % change | (gg) |
26 |
% |
27 |
% |
37 |
% |
15 |
% |
11 |
% |
9 |
% |
17 |
% |
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westernunion.com transactions - YoY % change | (gg) |
56 |
% |
44 |
% |
55 |
% |
18 |
% |
9 |
% |
6 |
% |
19 |
% |
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C2C Segment Regional Metrics - YoY % change |
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NA region revenues (GAAP) | (aa), (bb) |
(3 |
)% |
(3 |
)% |
0 |
% |
4 |
% |
(2 |
)% |
2 |
% |
1 |
% |
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NA region foreign currency translation impact | (j) |
0 |
% |
0 |
% |
1 |
% |
0 |
% |
0 |
% |
0 |
% |
0 |
% |
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NA region revenues (non-GAAP, constant currency) | (aa), (bb) |
(3 |
)% |
(3 |
)% |
1 |
% |
4 |
% |
(2 |
)% |
2 |
% |
1 |
% |
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NA region transactions | (aa), (bb) |
(1 |
)% |
(3 |
)% |
1 |
% |
3 |
% |
(5 |
)% |
(2 |
)% |
(1 |
)% |
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EU & CIS region revenues (GAAP) | (aa), (cc) |
3 |
% |
(2) |
% |
8 |
% |
18 |
% |
(3) |
% |
(8) |
% |
3 |
% |
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EU & CIS region foreign currency translation impact | (j) |
(3) |
% |
(1) |
% |
(4) |
% |
(8) |
% |
(2) |
% |
1 |
% |
(3) |
% |
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EU & CIS region revenues (non-GAAP, constant currency) | (aa), (cc) |
0 |
% |
(3) |
% |
4 |
% |
10 |
% |
(5) |
% |
(7) |
% |
0 |
% |
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EU & CIS region transactions | (aa), (cc) |
23 |
% |
13 |
% |
28 |
% |
26 |
% |
3 |
% |
1 |
% |
13 |
% |
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MEASA region revenues (GAAP) | (aa), (dd) |
1 |
% |
(2 |
)% |
1 |
% |
19 |
% |
(2 |
)% |
2 |
% |
4 |
% |
|||||||||||||||
MEASA region foreign currency translation impact | (j) |
(1 |
)% |
0 |
% |
(1 |
)% |
(1 |
)% |
0 |
% |
0 |
% |
0 |
% |
|||||||||||||||
MEASA region revenues (non-GAAP, constant currency) | (aa), (dd) |
0 |
% |
(2 |
)% |
0 |
% |
18 |
% |
(2 |
)% |
2 |
% |
4 |
% |
|||||||||||||||
MEASA region transactions | (aa), (dd) |
12 |
% |
7 |
% |
13 |
% |
22 |
% |
2 |
% |
6 |
% |
10 |
% |
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LACA region revenues (GAAP) | (aa), (ee) |
(9 |
)% |
(22 |
)% |
3 |
% |
70 |
% |
25 |
% |
8 |
% |
22 |
% |
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LACA region foreign currency translation impact | (j) |
11 |
% |
11 |
% |
5 |
% |
(2 |
)% |
1 |
% |
4 |
% |
2 |
% |
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LACA region revenues (non-GAAP, constant currency) | (aa), (ee) |
2 |
% |
(11 |
)% |
8 |
% |
68 |
% |
26 |
% |
12 |
% |
24 |
% |
|||||||||||||||
LACA region transactions | (aa), (ee) |
(13 |
)% |
(20 |
)% |
(8 |
)% |
42 |
% |
10 |
% |
2 |
% |
9 |
% |
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|
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APAC region revenues (GAAP) | (aa), (ff) |
8 |
% |
(3) |
% |
9 |
% |
20 |
% |
1 |
% |
0 |
% |
6 |
% |
|||||||||||||||
APAC region foreign currency translation impact | (j) |
(2) |
% |
0 |
% |
(6) |
% |
(7) |
% |
(2) |
% |
0 |
% |
(3) |
% |
|||||||||||||||
APAC region revenues (non-GAAP, constant currency) | (aa), (ff) |
6 |
% |
(3) |
% |
3 |
% |
13 |
% |
(1) |
% |
0 |
% |
3 |
% |
|||||||||||||||
APAC region transactions | (aa), (ff) |
(3) |
% |
(10) |
% |
(2) |
% |
3 |
% |
(13) |
% |
(13) |
% |
(7) |
% |
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% of C2C Revenue |
|
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NA region revenues | (aa), (bb) |
37 |
% |
38 |
% |
37 |
% |
37 |
% |
37 |
% |
38 |
% |
37 |
% |
|||||||||||||||
EU & CIS region revenues | (aa), (cc) |
33 |
% |
33 |
% |
33 |
% |
33 |
% |
32 |
% |
31 |
% |
32 |
% |
|||||||||||||||
MEASA region revenues | (aa), (dd) |
15 |
% |
15 |
% |
16 |
% |
15 |
% |
15 |
% |
15 |
% |
15 |
% |
|||||||||||||||
LACA region revenues | (aa), (ee) |
8 |
% |
8 |
% |
8 |
% |
9 |
% |
9 |
% |
9 |
% |
9 |
% |
|||||||||||||||
APAC region revenues | (aa), (ff) |
7 |
% |
6 |
% |
6 |
% |
6 |
% |
7 |
% |
7 |
% |
7 |
% |
|||||||||||||||
|
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Digital money transfer revenues | (aa) |
21 |
% |
20 |
% |
23 |
% |
24 |
% |
24 |
% |
24 |
% |
24 |
% |
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Business Solutions Segment Metrics |
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Revenues (GAAP) - YoY % change |
|
(8) |
% |
(8) |
% |
(2) |
% |
25 |
% |
31 |
% |
22 |
% |
18 |
% |
|||||||||||||||
Revenues (non-GAAP, constant currency) - YoY % change | (h) |
(11) |
% |
(8) |
% |
(8) |
% |
16 |
% |
28 |
% |
22 |
% |
14 |
% |
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Operating margin |
|
(0.2) |
% |
6.9 |
% |
13.1 |
% |
10.9 |
% |
32.9 |
% |
30.8 |
% |
22.6 |
% |
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Other (primarily bill payments businesses in |
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Revenues (GAAP) - YoY % change |
|
(29) |
% |
(48) |
% |
(18) |
% |
8 |
% |
3 |
% |
5 |
% |
(1) |
% |
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Operating margin |
|
15.8 |
% |
21.2 |
% |
22.6 |
% |
16.2 |
% |
18.3 |
% |
21.3 |
% |
19.6 |
% |
|||||||||||||||
|
||||||||||||||||||||||||||||||
% of Total Company Revenue (GAAP) |
|
|||||||||||||||||||||||||||||
Consumer-to-Consumer segment revenues |
|
88 |
% |
87 |
% |
87 |
% |
87 |
% |
86 |
% |
87 |
% |
87 |
% |
|||||||||||||||
Business Solutions segment revenues |
|
7 |
% |
8 |
% |
8 |
% |
8 |
% |
9 |
% |
8 |
% |
8 |
% |
|||||||||||||||
Other revenues |
|
5 |
% |
5 |
% |
5 |
% |
5 |
% |
5 |
% |
5 |
% |
5 |
% |
____________________________ |
||
(1) |
Represents revenue from transactions conducted and funded through westernunion.com and transactions initiated on websites and mobile applications hosted by the Company’s third-party white label or co-branded digital partners. |
|
* See the “Notes to Key Statistics” section of the press release for the applicable Note references and the reconciliation of non-GAAP financial measures, unless already reconciled herein. |
||
|
||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
(in millions, except per share amounts) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
|
2021 |
|
2020 |
|
% Change |
|
2021 |
|
2020 |
|
% Change |
||||||||
Revenues | $ | 1,284.8 |
|
$ | 1,271.8 |
1 |
% |
$ | 5,070.8 |
|
$ | 4,835.0 |
5 |
% |
||||||
Expenses: | ||||||||||||||||||||
Cost of services | 715.3 |
|
759.2 |
(6) |
% |
2,896.4 |
|
2,826.5 |
2 |
% |
||||||||||
Selling, general, and administrative | 252.7 |
|
285.5 |
(11) |
% |
1,051.3 |
|
1,041.2 |
1 |
% |
||||||||||
Total expenses (a) | 968.0 |
|
1,044.7 |
(7) |
% |
3,947.7 |
|
3,867.7 |
2 |
% |
||||||||||
Operating income | 316.8 |
|
227.1 |
40 |
% |
1,123.1 |
|
967.3 |
16 |
% |
||||||||||
Other income/(expense): | ||||||||||||||||||||
Gain on sale of noncontrolling interest in a private company | — |
|
— |
(b) |
47.9 |
|
— |
(b) |
||||||||||||
Pension settlement charges | (109.8 |
) |
— |
(b) |
(109.8 |
) |
— |
(b) |
||||||||||||
Interest income | 0.3 |
|
0.3 |
(19) |
% |
1.4 |
|
3.2 |
(57) |
% |
||||||||||
Interest expense | (25.8) |
(28.1) |
(8) |
% |
(105.5) |
(118.5) |
(11) |
% |
||||||||||||
Other income/(expense), net | (0.6) |
(0.3) |
71 |
% |
(21.7) |
3.1 |
(b) |
|||||||||||||
Total other expense, net | (135.9) |
(28.1) |
(b) |
(187.7) |
(112.2) |
67 |
% |
|||||||||||||
Income before income taxes | 180.9 |
|
199.0 |
(9) |
% |
935.4 |
|
855.1 |
9 |
% |
||||||||||
Provision for income taxes | 12.1 |
|
21.9 |
(44) |
% |
129.6 |
|
110.8 |
17 |
% |
||||||||||
Net income | $ | 168.8 |
|
$ | 177.1 |
(5) |
% |
$ | 805.8 |
|
$ | 744.3 |
8 |
% |
||||||
Earnings per share: | ||||||||||||||||||||
Basic | $ | 0.42 |
|
$ | 0.43 |
(2) |
% |
$ | 1.98 |
|
$ | 1.81 |
9 |
% |
||||||
Diluted | $ | 0.42 |
|
$ | 0.43 |
(2) |
% |
$ | 1.97 |
|
$ | 1.79 |
10 |
% |
||||||
Weighted-average shares outstanding: | ||||||||||||||||||||
Basic | 400.1 |
|
411.7 |
406.8 |
|
412.3 |
||||||||||||||
Diluted | 401.7 |
|
414.5 |
408.9 |
|
415.2 |
____________________________ |
||||||||||||||||||
(a) |
For the three and twelve months ended |
|||||||||||||||||
(b) |
Calculation not meaningful. |
|||||||||||||||||
|
||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||
(Unaudited) |
||||||||
(in millions, except per share amounts) |
||||||||
|
|
|
|
|
||||
|
|
2021 |
|
2020 |
||||
Assets | ||||||||
Cash and cash equivalents | $ | 1,208.3 |
|
$ | 1,428.2 |
|
||
Settlement assets | 2,843.5 |
|
3,821.4 |
|
||||
Property and equipment, net of accumulated depreciation of |
129.4 |
|
150.4 |
|
||||
2,034.6 |
|
2,566.6 |
|
|||||
Other intangible assets, net of accumulated amortization of |
417.1 |
|
505.0 |
|
||||
Other assets | 737.7 |
|
1,024.7 |
|
||||
Assets held for sale (a) | 1,452.9 |
|
— |
|
||||
Total assets | $ | 8,823.5 |
|
$ | 9,496.3 |
|
||
Liabilities and stockholders' equity | ||||||||
Liabilities: | ||||||||
Accounts payable and accrued liabilities | $ | 450.2 |
|
$ | 500.9 |
|
||
Settlement obligations | 2,843.5 |
|
3,821.4 |
|
||||
Income taxes payable | 870.7 |
|
928.9 |
|
||||
Deferred tax liability, net | 203.8 |
|
188.9 |
|
||||
Borrowings | 3,008.4 |
|
3,067.2 |
|
||||
Other liabilities | 269.4 |
|
802.4 |
|
||||
Liabilities associated with assets held for sale (a) | 821.9 |
|
— |
|
||||
Total liabilities | 8,467.9 |
|
9,309.7 |
|
||||
Stockholders' equity: | ||||||||
Preferred stock, |
— |
|
— |
|
||||
Common stock, |
3.9 |
|
4.1 |
|
||||
Capital surplus | 941.0 |
|
885.1 |
|
||||
Accumulated deficit | (537.2 |
) |
(543.1 |
) |
||||
Accumulated other comprehensive loss | (52.1 |
) |
(159.5 |
) |
||||
Total stockholders' equity | 355.6 |
|
186.6 |
|
||||
Total liabilities and stockholders' equity | $ | 8,823.5 |
|
$ | 9,496.3 |
|
____________________________ |
||
(a) |
Includes balances associated with the Company's Business Solutions business, which were held for sale as of |
|
|
||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Unaudited) |
||||||||
(in millions) |
||||||||
|
|
|
|
|
|
|
||
|
|
Year Ended |
||||||
|
|
2021 |
|
2020 |
||||
Cash flows from operating activities | ||||||||
Net income | $ | 805.8 |
|
$ | 744.3 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 49.6 |
|
61.3 |
|
||||
Amortization | 158.6 |
|
164.3 |
|
||||
Pension settlement charges | 109.8 |
|
— |
|
||||
Gain on the sale of noncontrolling interest in a private company | (47.9 |
) |
— |
|
||||
Deferred income tax provision/(benefit) | (2.6 |
) |
13.9 |
|
||||
Other non-cash items, net | 149.6 |
|
145.8 |
|
||||
Increase/(decrease) in cash resulting from changes in: | ||||||||
Other assets | (73.0 |
) |
(44.4 |
) |
||||
Accounts payable and accrued liabilities | (24.8 |
) |
(96.6 |
) |
||||
Income taxes payable | (56.2 |
) |
(94.4 |
) |
||||
Other liabilities | (23.6 |
) |
(16.7 |
) |
||||
Net cash provided by operating activities | 1,045.3 |
|
877.5 |
|
||||
Cash flows from investing activities | ||||||||
Payments for capitalized contract costs | (107.5 |
) |
(69.1 |
) |
||||
Payments for internal use software | (69.4 |
) |
(51.2 |
) |
||||
Purchases of property and equipment | (37.7 |
) |
(36.5 |
) |
||||
Purchases of settlement investments | (433.0 |
) |
(6,421.1 |
) |
||||
Proceeds from the sale of settlement investments | 755.3 |
|
5,978.4 |
|
||||
Maturities of settlement investments | 229.7 |
|
182.6 |
|
||||
Proceeds from the sale of former corporate headquarters and other property | — |
|
49.4 |
|
||||
Proceeds from the sale of noncontrolling interest in a private company | 50.9 |
|
— |
|
||||
Purchase of noncontrolling interest in stc Bank | (200.0 |
) |
— |
|
||||
Other investing activities | 3.7 |
|
(6.0 |
) |
||||
Net cash provided by/(used in) investing activities | 192.0 |
|
(373.5 |
) |
||||
Cash flows from financing activities | ||||||||
Cash dividends and dividend equivalents paid | (381.6 |
) |
(370.3 |
) |
||||
Common stock repurchased | (409.9 |
) |
(239.7 |
) |
||||
Net proceeds from/(repayments of) commercial paper | 195.0 |
|
(165.0 |
) |
||||
Net proceeds from issuance of borrowings | 891.7 |
|
— |
|
||||
Principal payments on borrowings | (1,150.0 |
) |
— |
|
||||
Make-whole premium on early extinguishment of debt | (14.3 |
) |
— |
|
||||
Proceeds from exercise of options | 11.6 |
|
2.2 |
|
||||
Net change in settlement obligations | (412.2 |
) |
587.6 |
|
||||
Other financing activities | 0.2 |
|
(0.7 |
) |
||||
Net cash used in financing activities | (1,269.5 |
) |
(185.9 |
) |
||||
Net change in cash and cash equivalents, including settlement, and restricted cash | (32.2 |
) |
318.1 |
|
||||
Cash and cash equivalents, including settlement, and restricted cash at beginning of period | 2,143.1 |
|
1,825.0 |
|
||||
Cash and cash equivalents, including settlement, and restricted cash at end of period | $ | 2,110.9 |
|
$ | 2,143.1 |
|
||
Reconciliation of balance sheet cash and cash equivalents to cash flows: | ||||||||
Cash and cash equivalents on balance sheet | $ | 1,208.3 |
|
$ | 1,428.2 |
|
||
Settlement cash and cash equivalents | 835.5 |
|
695.7 |
|
||||
Restricted cash in Other assets | 29.4 |
|
19.2 |
|
||||
Cash included in Assets held for sale | 37.7 |
|
— |
|
||||
Cash and cash equivalents, including settlement, and restricted cash | $ | 2,110.9 |
|
$ | 2,143.1 |
|
||
|
||||||||||||||||||||||
SUMMARY SEGMENT DATA |
||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||
(in millions) |
||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Three Months Ended |
|
Twelve Months Ended |
||||||||||||||||||
|
|
|
|
|
||||||||||||||||||
|
|
2021 |
|
2020 |
|
% Change |
|
2021 |
|
2020 |
|
% Change |
||||||||||
Revenues: | ||||||||||||||||||||||
Consumer-to-Consumer | $ | 1,111.5 |
|
$ | 1,121.5 |
|
(1) |
% |
$ | 4,394.0 |
|
$ | 4,220.0 |
|
4 |
% |
||||||
Business Solutions | 109.2 |
|
89.2 |
|
22 |
% |
421.8 |
|
356.1 |
|
18 |
% |
||||||||||
Other (a) | 64.1 |
|
61.1 |
|
5 |
% |
255.0 |
|
258.9 |
|
(1) |
% |
||||||||||
Total consolidated revenues | $ | 1,284.8 |
|
$ | 1,271.8 |
|
1 |
% |
$ | 5,070.8 |
|
$ | 4,835.0 |
|
5 |
% |
||||||
Segment operating income/(loss): | ||||||||||||||||||||||
Consumer-to-Consumer | $ | 269.5 |
|
$ | 229.6 |
|
17 |
% |
$ | 977.6 |
|
$ | 924.7 |
|
6 |
% |
||||||
Business Solutions | 33.6 |
|
(0.2) |
(c) |
95.5 |
|
24.4 |
|
(c) |
|||||||||||||
Other (a) | 13.7 |
|
9.7 |
|
42 |
% |
50.0 |
|
55.0 |
|
(9) |
% |
||||||||||
Total segment operating income | 316.8 |
|
239.1 |
|
32 |
% |
1,123.1 |
|
1,004.1 |
|
12 |
% |
||||||||||
Restructuring-related expenses (b) | — |
|
(12.0) |
(c) |
— |
|
(36.8) |
(c) |
||||||||||||||
Total consolidated operating income | $ | 316.8 |
|
$ | 227.1 |
|
40 |
% |
$ | 1,123.1 |
|
$ | 967.3 |
|
16 |
% |
||||||
Segment operating income/(loss) margin | ||||||||||||||||||||||
Consumer-to-Consumer | 24.2 |
% |
20.5 |
% |
3.7 |
% |
22.2 |
% |
21.9 |
% |
0.3 |
% |
||||||||||
Business Solutions | 30.8 |
% |
(0.2) |
% |
31.0 |
% |
22.6 |
% |
6.9 |
% |
15.7 |
% |
||||||||||
Other (a) | 21.3 |
% |
15.8 |
% |
5.5 |
% |
19.6 |
% |
21.2 |
% |
(1.6) |
% |
____________________________ |
||
(a) |
Other primarily includes the Company’s bill payment services which facilitate payments from consumers to businesses and other organizations and the Company’s money order services. |
|
(b) |
Restructuring-related expenses have been excluded from the measurement of segment operating income provided to the chief operating decision maker for purposes of assessing segment performance and decision making with respect to resource allocation. |
|
(c) |
Calculation not meaningful. |
|
NOTES TO KEY STATISTICS
(Unaudited)
(in millions, unless indicated otherwise)
Western Union’s management believes the non-GAAP financial measures presented provide meaningful supplemental information regarding the Company’s operating results to assist management, investors, analysts, and others in understanding the Company’s financial results and to better analyze trends in the Company’s underlying business because they provide consistency and comparability to prior periods.
A non-GAAP financial measure should not be considered in isolation or as a substitute for the most comparable GAAP financial measure. A non-GAAP financial measure reflects an additional way of viewing aspects of the Company’s operations that, when viewed with the Company’s GAAP results and the reconciliation to the corresponding GAAP financial measure, provides a more complete understanding of the Company’s business. Users of the financial statements are encouraged to review the Company’s financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is included below, where not previously reconciled above.
|
|
Three Months Ended |
||||||||||||||||||
Notes |
|
Revenues |
|
Operating
|
|
Income
|
|
Provision for
|
|
Net
|
|
Diluted
|
||||||||
(in millions, except per share amounts) |
|
|||||||||||||||||||
Reported results (GAAP) |
|
$ | 1,284.8 |
$ | 316.8 |
$ | 180.9 |
$ | 12.1 |
$ | 168.8 |
$ | 0.42 |
|||||||
Acquisition and divestiture costs and related tax benefit | (n) |
— |
3.7 |
3.7 |
0.7 |
3.0 |
0.01 |
|||||||||||||
Gain on investment sale and related tax expense | (o) |
— |
— |
— |
(1.1) |
1.1 |
— |
|||||||||||||
Debt extinguishment costs and related tax benefit | (p) |
— |
— |
— |
0.2 |
(0.2) |
— |
|||||||||||||
Change in permanent reinvestment assertion related to the pending sale of Business Solutions | (r) |
— |
— |
— |
0.2 |
(0.2) |
— |
|||||||||||||
Pension plan settlement charge and related tax benefit | (q) |
— |
— |
109.8 |
23.5 |
86.3 |
0.21 |
|||||||||||||
Adjusted results (non-GAAP) |
|
$ | 1,284.8 |
$ | 320.5 |
$ | 294.4 |
$ | 35.6 |
$ | 258.8 |
$ | 0.64 |
|||||||
Foreign currency translation impact | (j) |
14.8 |
||||||||||||||||||
Revenues, constant currency adjusted (non-GAAP) |
|
$ | 1,299.6 |
|||||||||||||||||
|
||||||||||||||||||||
|
|
Three Months Ended |
||||||||||||||||||
Notes |
|
Revenues |
|
Operating
|
|
Income
|
|
Provision for
|
|
Net
|
|
Diluted
|
||||||||
(in millions, except per share amounts) |
|
|||||||||||||||||||
Reported results (GAAP) |
|
$ | 1,271.8 |
$ | 227.1 |
$ | 199.0 |
$ | 21.9 |
$ | 177.1 |
$ | 0.43 |
|||||||
Restructuring related expenses and related tax benefit | (m) |
— |
12.0 |
12.0 |
2.6 |
9.4 |
0.02 |
|||||||||||||
Acquisition and divestiture costs and related tax benefit | (n) |
— |
0.3 |
0.3 |
— |
0.3 |
— |
|||||||||||||
Adjusted results (non-GAAP) |
|
$ | 1,271.8 |
$ | 239.4 |
$ | 211.3 |
$ | 24.5 |
$ | 186.8 |
$ | 0.45 |
|||||||
|
|
|||||||||||||||||||
Quarter over quarter growth/(decline) (GAAP) |
|
|
|
(9)% |
(44)% |
(5)% |
(2)% |
|||||||||||||
Quarter over quarter growth/(decline) (non-GAAP) |
|
|
|
|
|
|
|
|||||||||||||
|
||||||||||||||||||||
|
|
Twelve Months Ended |
||||||||||||||||||
Notes |
|
Revenues |
|
Operating
|
|
Income
|
|
Provision for
|
|
Net
|
|
Diluted
|
||||||||
(in millions, except per share amounts) |
|
|||||||||||||||||||
Reported results (GAAP) |
|
$ | 5,070.8 |
$ | 1,123.1 |
$ | 935.4 |
$ | 129.6 |
$ | 805.8 |
$ | 1.97 |
|||||||
Acquisition and divestiture costs and related tax benefit | (n) |
— |
15.7 |
15.7 |
3.2 |
12.5 |
0.03 |
|||||||||||||
Gain on investment sale and related tax expense | (o) |
— |
— |
(47.9) |
(10.9) |
(37.0) |
(0.09) |
|||||||||||||
Debt extinguishment costs and related tax benefit | (p) |
— |
— |
14.8 |
3.2 |
11.6 |
0.03 |
|||||||||||||
Change in permanent reinvestment assertion related to the pending sale of Business Solutions | (r) |
— |
— |
— |
(17.9) |
17.9 |
0.04 |
|||||||||||||
Pension plan settlement charge and related tax benefit | (q) |
— |
— |
109.8 |
23.5 |
86.3 |
0.21 |
|||||||||||||
Adjusted results (non-GAAP) |
|
$ | 5,070.8 |
$ | 1,138.8 |
$ | 1,027.8 |
$ | 130.7 |
$ | 897.1 |
$ | 2.19 |
|||||||
Foreign currency translation impact | (j) |
(18.3) |
||||||||||||||||||
Revenues, constant currency adjusted (non-GAAP) |
|
$ | 5,052.5 |
|||||||||||||||||
|
||||||||||||||||||||
|
|
Twelve Months Ended |
||||||||||||||||||
Notes |
|
Revenues |
|
Operating
|
|
Income
|
|
Provision for
|
|
Net
|
|
Diluted
|
||||||||
(in millions, except per share amounts) |
|
|||||||||||||||||||
Reported results (GAAP) |
|
$ | 4,835.0 |
$ | 967.3 |
$ | 855.1 |
$ | 110.8 |
$ | 744.3 |
$ | 1.79 |
|||||||
Restructuring related expenses and related tax benefit | (m) |
— |
36.8 |
36.8 |
5.3 |
31.5 |
0.08 |
|||||||||||||
Acquisition and divestiture costs and related tax benefit | (n) |
— |
2.5 |
2.5 |
0.5 |
2.0 |
— |
|||||||||||||
Adjusted results (non-GAAP) |
|
$ | 4,835.0 |
$ | 1,006.6 |
$ | 894.4 |
$ | 116.6 |
$ | 777.8 |
$ | 1.87 |
|||||||
|
||||||||||||||||||||
Year over year growth/(decline) (GAAP) |
|
|
|
|
|
|
|
|||||||||||||
Year over year growth/(decline) (non-GAAP) |
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NOTES TO KEY STATISTICS |
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(Unaudited) |
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(in millions, unless indicated otherwise) |
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Notes |
|
4Q20 |
|
FY2020 |
|
1Q21 |
|
2Q21 |
|
3Q21 |
|
4Q21 |
|
FY2021 |
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Consolidated Metrics | ||||||||||||||||||||||||
(a) |
Revenues (GAAP) | $ | 1,271.8 |
$ | 4,835.0 |
$ | 1,210.0 |
$ | 1,289.7 |
$ | 1,286.3 |
$ | 1,284.8 |
$ | 5,070.8 |
||||||||||
|
Foreign currency translation impact | (j) |
22.4 |
157.2 |
(0.9) |
(29.4) |
(2.8) |
14.8 |
(18.3) |
||||||||||||||||
|
Revenues (non-GAAP, constant currency) |
|
$ | 1,294.2 |
$ | 4,992.2 |
$ | 1,209.1 |
$ | 1,260.3 |
$ | 1,283.5 |
$ | 1,299.6 |
$ | 5,052.5 |
|||||||||
|
Prior year revenues (GAAP) |
|
$ | 1,307.7 |
$ | 5,292.1 |
$ | 1,190.0 |
$ | 1,114.7 |
$ | 1,258.5 |
$ | 1,271.8 |
$ | 4,835.0 |
|||||||||
|
Less prior year revenues from Speedpay and Paymap divestitures | (k) |
N/A |
(130.7) |
N/A |
N/A |
N/A |
N/A |
N/A |
||||||||||||||||
|
Prior year revenues, adjusted for divestitures (non-GAAP) |
|
$ | 1,307.7 |
$ | 5,161.4 |
$ | 1,190.0 |
$ | 1,114.7 |
$ | 1,258.5 |
$ | 1,271.8 |
$ | 4,835.0 |
|||||||||
|
Revenues (GAAP) - YoY % Change |
|
(3)% |
(9)% |
|
|
|
|
|
||||||||||||||||
|
Revenues, constant currency and adjusted for divestitures (non-GAAP) - YoY % Change |
|
(1)% |
(3)% |
|
|
|
|
|
||||||||||||||||
|
|
||||||||||||||||||||||||
(b) |
Operating income (GAAP) |
|
$ | 227.1 |
$ | 967.3 |
$ | 232.8 |
$ | 254.9 |
$ | 318.6 |
$ | 316.8 |
$ | 1,123.1 |
|||||||||
|
Restructuring-related expenses | (m) |
12.0 |
36.8 |
N/A |
N/A |
N/A |
N/A |
N/A |
||||||||||||||||
|
Acquisition and divestiture costs | (n) |
0.3 |
2.5 |
0.9 |
5.6 |
5.5 |
3.7 |
15.7 |
||||||||||||||||
|
Operating income, adjusted (non-GAAP) |
|
$ | 239.4 |
$ | 1,006.6 |
$ | 233.7 |
$ | 260.5 |
$ | 324.1 |
$ | 320.5 |
$ | 1,138.8 |
|||||||||
|
Operating margin (GAAP) |
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Operating margin, adjusted (non-GAAP) |
|
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|
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(c) |
Operating income (GAAP) |
|
$ | 227.1 |
$ | 967.3 |
$ | 232.8 |
$ | 254.9 |
$ | 318.6 |
$ | 316.8 |
$ | 1,123.1 |
|||||||||
|
Depreciation and amortization |
|
56.1 |
225.6 |
53.4 |
55.6 |
51.3 |
47.9 |
208.2 |
||||||||||||||||
|
EBITDA (non-GAAP) | (l) |
$ | 283.2 |
$ | 1,192.9 |
$ | 286.2 |
$ | 310.5 |
$ | 369.9 |
$ | 364.7 |
$ | 1,331.3 |
|||||||||
|
Operating margin (GAAP) |
|
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|
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EBITDA margin (non-GAAP) |
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||||||||||||||||||||||||
(d) |
Effective tax rate (GAAP) |
|
|
|
|
|
|
|
|
||||||||||||||||
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Impact from change in permanent reinvestment assertion related to the pending sale of Business Solutions | (r) |
N/A |
N/A |
N/A |
N/A |
(6)% |
|
(2)% |
||||||||||||||||
|
Impact from restructuring-related expenses | (m) |
|
|
N/A |
N/A |
N/A |
N/A |
N/A |
||||||||||||||||
|
Impact from acquisition and divestiture costs | (n) |
|
|
|
|
|
|
|
||||||||||||||||
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Impact from gain on investment sale | (o) |
N/A |
N/A |
N/A |
|
|
( |
|
||||||||||||||||
|
Impact from debt extinguishment costs | (p) |
N/A |
N/A |
N/A |
|
|
|
|
||||||||||||||||
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Impact from pension settlement charge | (q) |
N/A |
N/A |
N/A |
|
|
|
|
||||||||||||||||
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Effective tax rate, adjusted (non-GAAP) |
|
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||||||||||||||||||||||||
|
C2C Segment Metrics |
|
|||||||||||||||||||||||
(e) |
Revenues (GAAP) |
|
$ | 1,121.5 |
$ | 4,220.0 |
$ | 1,050.9 |
$ | 1,127.1 |
$ | 1,104.5 |
$ | 1,111.5 |
$ | 4,394.0 |
|||||||||
|
Foreign currency translation impact | (j) |
(1.2) |
41.2 |
(11.1) |
(32.1) |
(9.4) |
6.2 |
(46.4) |
||||||||||||||||
|
Revenues (non-GAAP, constant currency) |
|
$ | 1,120.3 |
$ | 4,261.2 |
$ | 1,039.8 |
$ | 1,095.0 |
$ | 1,095.1 |
$ | 1,117.7 |
$ | 4,347.6 |
|||||||||
|
Prior year revenues (GAAP) |
|
$ | 1,125.0 |
$ | 4,407.8 |
$ | 1,015.4 |
$ | 976.6 |
$ | 1,106.5 |
$ | 1,121.5 |
$ | 4,220.0 |
|||||||||
|
Revenues (GAAP) - YoY % change |
|
|
(4)% |
|
|
|
(1)% |
|
||||||||||||||||
|
Revenues (non-GAAP, constant currency) - YoY % change |
|
|
(3)% |
|
|
(1)% |
|
|
||||||||||||||||
|
|
||||||||||||||||||||||||
(f) |
Principal per transaction, as reported ($- dollars) |
|
$ | 341 |
$ | 331 |
$ | 353 |
$ | 357 |
$ | 361 |
$ | 354 |
$ | 356 |
|||||||||
|
Foreign currency translation impact ($- dollars) | (j) |
(2) |
2 |
(7) |
(10) |
(1) |
2 |
(4) |
||||||||||||||||
|
Principal per transaction (constant currency) ($- dollars) |
|
$ | 339 |
$ | 333 |
$ | 346 |
$ | 347 |
$ | 360 |
$ | 356 |
$ | 352 |
|||||||||
|
Prior year principal per transaction, as reported ($- dollars) |
|
$ | 300 |
$ | 303 |
$ | 308 |
$ | 322 |
$ | 348 |
$ | 341 |
$ | 331 |
|||||||||
|
Principal per transaction, as reported - YoY % change |
|
|
|
|
|
|
|
|
||||||||||||||||
|
Principal per transaction (constant currency) - YoY % change |
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
||||||||||||||||||||||||
(g) |
Cross-border principal, as reported ($- billions) |
|
$ | 25.3 |
$ | 90.6 |
$ | 24.5 |
$ | 26.6 |
$ | 26.5 |
$ | 26.5 |
$ | 104.1 |
|||||||||
|
Foreign currency translation impact ($- billions) | (j) |
(0.1) |
0.6 |
(0.5) |
(0.7) |
(0.2) |
0.2 |
(1.2) |
||||||||||||||||
|
Cross-border principal (constant currency) ($- billions) |
|
$ | 25.2 |
$ | 91.2 |
$ | 24.0 |
$ | 25.9 |
$ | 26.3 |
$ | 26.7 |
$ | 102.9 |
|||||||||
|
Prior year cross-border principal, as reported ($- billions) |
|
$ | 20.5 |
$ | 80.7 |
$ | 19.1 |
$ | 20.7 |
$ | 25.5 |
$ | 25.3 |
$ | 90.6 |
|||||||||
|
Cross-border principal, as reported - YoY % change |
|
|
|
|
|
|
|
|
||||||||||||||||
|
Cross-border principal (constant currency) - YoY % change |
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
||||||||||||||||||||||||
|
Business Solutions Segment Metrics |
|
|||||||||||||||||||||||
(h) |
Revenues (GAAP) |
|
$ | 89.2 |
$ | 356.1 |
$ | 96.5 |
$ | 99.3 |
$ | 116.8 |
$ | 109.2 |
$ | 421.8 |
|||||||||
|
Foreign currency translation impact | (j) |
(2.4) |
(0.1) |
(5.6) |
(7.2) |
(3.1) |
0.0 |
(15.9) |
||||||||||||||||
|
Revenues (non-GAAP, constant currency) |
|
$ | 86.8 |
$ | 356.0 |
$ | 90.9 |
$ | 92.1 |
$ | 113.7 |
$ | 109.2 |
$ | 405.9 |
|||||||||
|
Prior year revenues (GAAP) |
|
$ | 97.0 |
$ | 388.8 |
$ | 98.4 |
$ | 79.4 |
$ | 89.1 |
$ | 89.2 |
$ | 356.1 |
|||||||||
|
Revenues (GAAP) - YoY % change |
|
(8)% |
(8)% |
(2)% |
|
|
|
|
||||||||||||||||
|
Revenues (non-GAAP, constant currency) - YoY % change |
|
(11)% |
(8)% |
(8)% |
|
|
|
|
||||||||||||||||
|
|
||||||||||||||||||||||||
(i) |
Operating income/(loss) (GAAP) |
|
$ | (0.2) |
$ | 24.4 |
$ | 12.6 |
$ | 10.9 |
$ | 38.4 |
$ | 33.6 |
$ | 95.5 |
|||||||||
|
Depreciation and amortization |
|
8.1 |
36.1 |
6.9 |
6.8 |
2.4 |
0.0 |
16.1 |
||||||||||||||||
|
EBITDA (non-GAAP) | (l) |
$ | 7.9 |
$ | 60.5 |
$ | 19.5 |
$ | 17.7 |
$ | 40.8 |
$ | 33.6 |
$ | 111.6 |
|||||||||
|
Operating income/(loss) margin (GAAP) |
|
(0.2)% |
|
|
|
|
|
|
||||||||||||||||
|
EBITDA margin (non-GAAP) |
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
||||||||||||||||||||||||
|
2022 Consolidated Outlook Metrics |
|
|||||||||||||||||||||||
|
|
Range |
|||||||||||||||||||||||
|
Operating margin (GAAP) |
|
|
|
|||||||||||||||||||||
|
Impact from acquisition and divestiture costs | (n) |
|
|
|||||||||||||||||||||
|
Impact from the pending sale of Business Solutions | (s) |
(0.5)% |
(0.5)% |
|||||||||||||||||||||
|
Operating margin, adjusted, excluding acquisition and divestiture costs and the pending sale of Business Solutions (non-GAAP) |
|
|
|
|||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
|
||||||||||||||||||||||||
|
|
Range |
|||||||||||||||||||||||
|
Earnings per share (GAAP) ($- dollars) |
|
$ | 2.38 |
$ | 2.48 |
|||||||||||||||||||
|
Impact from acquisition and divestiture costs | (n) |
0.04 |
0.04 |
|||||||||||||||||||||
|
Gain on the sale of Business Solutions, net of related taxes | (s) |
(0.52) |
(0.52) |
|||||||||||||||||||||
|
Earnings per share, adjusted, excluding the acquisition and divestiture costs and gain on the sale of Business Solutions, net of related taxes (non-GAAP) ($- dollars) | $ | 1.90 |
$ | 2.00 |
||||||||||||||||||||
|
NOTES TO KEY STATISTICS | ||
(in millions, unless indicated otherwise) | ||
(Unaudited) | ||
Non-GAAP related notes: | ||
(j) |
Represents the impact from the fluctuation in exchange rates between all foreign currency denominated amounts and |
|
|
|
|
(k) |
On May 9, 2019, the Company completed the sale of its |
|
|
|
|
(l) |
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. The Company ceased depreciation and amortization for its Business Solutions business during the second half of 2021 as this business was held for sale. |
|
|
|
|
(m) |
Represents impact from expenses incurred in connection with an overall restructuring plan, approved by the Board of Directors on August 1, 2019, to improve the Company's business processes and cost structure by reducing headcount and consolidating various facilities. While certain of these expenses are identifiable to the Company's business segments, primarily to the Company's Consumer-to-Consumer segment, they have been excluded from the measurement of segment operating income provided to the Chief Operating Decision Maker for purposes of assessing segment performance and decision making with respect to resource allocation. These expenses are therefore excluded from the Company's segment operating income results. While these expenses are specific to this initiative, the types of expenses related to this initiative are similar to expenses that the Company has previously incurred and can reasonably be expected to incur in the future. The Company believes that, by excluding the effects of these charges that can impact operating trends, management and investors are provided with a measure that increases the comparability of the Company's underlying operating results. As of December 31, 2020, all expenses associated with this plan have been incurred. |
|
|
|
|
(n) |
Represents the impact from expenses incurred in connection with the Company's acquisition and divestiture activity, including for the review and closing of these transactions. The Company believes that, by excluding the effects of these charges that can impact operating trends, management and investors are provided with a measure that increases the comparability of the Company's underlying operating results. |
|
|
|
|
(o) |
On April 12, 2021, the Company sold a substantial majority of the noncontrolling interest it held in a private company for cash proceeds of |
|
|
|
|
(p) |
On April 1, 2021, the Company repaid |
|
|
|
|
(q) |
Represents the settlement charges for the Company's defined benefit pension plan incurred in the fourth quarter of 2021. On July 22, 2021, the Company's Board of Directors approved a plan to terminate and settle this frozen defined benefit plan, and during the fourth quarter of 2021, the Company settled its obligations under the plan and transferred the corresponding amount of plan assets to the insurer. The expenses associated with the pension settlement were recorded to Pension settlement charges within Total other expense, net. The Company believes excluding the impact of this charge will provide investors with a more meaningful comparison of results with the historical periods presented. |
|
|
|
|
(r) |
Represents the tax impact from changes to certain of the Company's permanent reinvestment assertions related to its decision to classify its Business Solutions business as held for sale in the third quarter of 2021. The Company believes excluding the impact of this charge will provide investors with a more meaningful comparison of results with the historical periods presented. |
|
|
|
|
(s) |
During 2021, the Company entered into an agreement to sell its Business Solutions business to Goldfinch Partners LLC and The Baupost Group LLC for cash consideration of |
|
|
||
Other notes: |
||
|
||
(aa) |
Geographic split for transactions and revenue, including transactions initiated digitally, as earlier defined, is determined entirely based upon the region where the money transfer is initiated. |
|
|
|
|
(bb) |
Represents the |
|
|
|
|
(cc) |
Represents the |
|
|
|
|
(dd) |
Represents the |
|
|
|
|
(ee) |
Represents the |
|
|
|
|
(ff) |
Represents the |
|
|
|
|
(gg) |
Represents transactions conducted and funded through websites and mobile applications marketed under the Company's brands (“westernunion.com”). |
View source version on businesswire.com: https://www.businesswire.com/news/home/20220210005235/en/
Media Relations:
Claire.Treacy@westernunion.com
Investor Relations:
Brad.Windbigler@westernunion.com
Source:
FAQ
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