Western Union Reports Third Quarter Results
Western Union Company (NYSE: WU) reported third quarter 2021 revenues of $1.3 billion, a 2% increase year-over-year. GAAP EPS rose to $0.57, up from $0.55 in Q3 2020, with adjusted EPS at $0.63. The growth was driven by digital money transfer revenues, which surged 15%. Despite strong cash flow of over $680 million year-to-date, the company updated its 2021 outlook, slightly lowering GAAP EPS to between $1.80 - $1.85. CEO Hikmet Ersek highlighted a new digital banking pilot and the launch of WU Shop as part of their ecosystem strategy.
- Digital money transfer revenues grew 15% year-over-year.
- GAAP EPS increased to $0.57, up from $0.55 in the prior year.
- Adjusted EPS rose to $0.63, compared to $0.57 previously.
- Operating cash flow exceeded $680 million year-to-date.
- Company returned over $510 million to shareholders through dividends and share repurchases.
- Consumer-to-Consumer (C2C) revenues remained flat, with a 1% decline in transactions.
- Retail money transfer segment negatively impacted by slow economic recovery.
- Updated GAAP EPS guidance was slightly lowered to $1.80 - $1.85.
Total Company GAAP revenues grow to
Digital money transfer revenues continue double-digit growth achieving quarterly highs for transactions and principal
Advances ecosystem strategy with the launch of WU Shop and an upcoming pilot of digital banking services in select countries
Continued strong cash flow generation, with over
The Company’s third quarter revenue of
GAAP EPS in the third quarter was
Adjusted EPS in the third quarter was
President and CEO
Ersek continued, “I am also excited to announce the continued progress of our ecosystem strategy with the upcoming digital banking pilot in
CFO
Q3 Business Highlights
-
Consumer-to-Consumer (C2C) revenues were flat on a reported basis, or declined
1% constant currency, while transactions declined1% during the quarter. Within the C2C segment, cross-border money transfer revenues grew1% . Regionally, transaction growth inEurope and CIS, LACA, and MEASA was offset by declines inNorth America and APAC.
-
Digital money transfer revenues increased
15% on a reported basis, or14% constant currency, and represented24% and37% of total C2C revenues and transactions, respectively. Digital money transfer reached new quarterly highs for transactions and principal. Westernunion.com revenue grew12% on a reported basis, or11% constant currency, including cross-border revenue growth of16% . Westernunion.com growth moderated in the quarter, as expected, given the significant digital demand the Company experienced in 2020.
-
Westernunion.com average monthly active users for the third quarter increased
8% year-over-year andthe Western Union mobile app was again the most downloaded mobile app among peer money transfer companies during the third quarter, according to data provided by mobile app marketing firmSensor Tower 1.
-
Western Union Business Solutions revenues increased
31% on a reported basis, or28% constant currency, primarily driven by increased payment services activity and the education vertical as the business grew over the impact of COVID-19. Other revenues, which consists primarily of retail bill payments in theU.S. andArgentina and money orders, increased3% .
_____________________________
1 Data obtained from Sensor Tower App Install Market Share Report
Q3 Financial Highlights
-
GAAP operating margin in the quarter was
24.8% compared to22.7% in the prior year period. The adjusted operating margin in the quarter was25.2% compared to23.5% in the prior year period. The increase in the Company’s GAAP and adjusted operating margins was driven by revenue growth in the Business Solutions segment and lower planned marketing investment, partially offset by higher technology investment, while the GAAP operating margin also increased as a result of restructuring costs in the prior year period. 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
20.2% compared to12.4% in the prior year period, and the adjusted effective tax rate was13.7% in the quarter compared to12.7% in the prior year period. The increase in the Company’s GAAP effective tax rate was due to deferred taxes recorded on the pending sale of Business Solutions.
-
Cash flow from operating activities was
year-to-date. The Company returned$686 million to shareholders in the third quarter consisting of$170 million in dividends and$95 million of share repurchases.$75 million
2021 Outlook
The Company updated its financial outlook for 2021, which was previously reported on
The outlook provided today assumes the macroeconomic environment in the fourth quarter will be similar to the third quarter:
Revenue |
GAAP: approximately 150 basis points higher than constant currency revenue growth (previously mid-to-high single digit increase)
Constant currency (excluding the impact of |
Operating Profit Margin (GAAP and Adjusted) |
GAAP: approximately
Adjusted: approximately |
Effective Tax Rate (GAAP and Adjusted) |
Mid-teens range (no change) |
EPS |
GAAP: in a range of
Adjusted: in a range of |
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, 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 planned termination of the Company’s pension plan (expected in the 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, or 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 protocols, and other innovations in technology and business models; political conditions and related actions, including trade restrictions and government sanctions, in
About
WU-G
KEY STATISTICS | |||||||||||||||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||||||||||||||
Notes* |
3Q20 |
4Q20 |
FY2020 |
1Q21 |
2Q21 |
3Q21 |
YTD 3Q21 |
||||||||||||||||||||||||||||||||
Consolidated Metrics | |||||||||||||||||||||||||||||||||||||||
Consolidated revenues (GAAP) - YoY % change | (4 |
) |
% |
(3 |
) |
% |
(9 |
) |
% |
2 |
|
% |
16 |
|
% |
2 |
|
% |
6 |
|
% |
||||||||||||||||||
Consolidated revenues (non-GAAP, constant currency and excluding Speedpay and Paymap) - YoY % change | (a) | (1 |
) |
% |
(1 |
) |
% |
(3 |
) |
% |
2 |
|
% |
13 |
|
% |
2 |
|
% |
5 |
|
% |
|||||||||||||||||
Consolidated operating margin (GAAP) | 22.7 |
|
% |
17.9 |
|
% |
20.0 |
|
% |
19.2 |
|
% |
19.8 |
|
% |
24.8 |
|
% |
21.3 |
|
% |
||||||||||||||||||
Consolidated operating margin, excluding restructuring-related expenses and acquisition and divestiture costs (non-GAAP) | (b) | 23.5 |
|
% |
18.8 |
|
% |
20.8 |
|
% |
19.3 |
|
% |
20.2 |
|
% |
25.2 |
|
% |
21.6 |
|
% |
|||||||||||||||||
EBITDA margin (non-GAAP) | (c) | 27.0 |
|
% |
22.3 |
|
% |
24.7 |
|
% |
23.7 |
|
% |
24.1 |
|
% |
28.8 |
|
% |
25.5 |
|
% |
|||||||||||||||||
Consumer-to-Consumer (C2C) Segment Metrics | |||||||||||||||||||||||||||||||||||||||
Revenues (GAAP) - YoY % change | (1 |
) |
% |
0 |
|
% |
(4 |
) |
% |
4 |
|
% |
15 |
|
% |
0 |
|
% |
6 |
|
% |
||||||||||||||||||
Revenues (non-GAAP, constant currency) - YoY % change | (e) | 0 |
|
% |
0 |
|
% |
(3 |
) |
% |
2 |
|
% |
12 |
|
% |
(1 |
) |
% |
4 |
|
% |
|||||||||||||||||
Transactions (in millions) | 77.3 |
|
78.4 |
|
290.5 |
|
73.0 |
|
78.0 |
|
76.6 |
|
227.6 |
|
|||||||||||||||||||||||||
Transactions - YoY % change | 6 |
|
% |
6 |
|
% |
0 |
|
% |
9 |
|
% |
15 |
|
% |
(1 |
) |
% |
7 |
|
% |
||||||||||||||||||
Total principal ($- billions) | $ | 26.9 |
|
$ | 26.7 |
|
$ | 96.1 |
|
$ | 25.7 |
|
$ | 27.9 |
|
$ | 27.7 |
|
$ | 81.3 |
|
||||||||||||||||||
Principal per transaction, as reported - YoY % change | 13 |
|
% |
14 |
|
% |
9 |
|
% |
15 |
|
% |
11 |
|
% |
4 |
|
% |
9 |
|
% |
||||||||||||||||||
Principal per transaction (constant currency) - YoY % change | (f) | 14 |
|
% |
13 |
|
% |
10 |
|
% |
12 |
|
% |
8 |
|
% |
3 |
|
% |
7 |
|
% |
|||||||||||||||||
Cross-border principal, as reported - YoY % change | 23 |
|
% |
24 |
|
% |
12 |
|
% |
28 |
|
% |
29 |
|
% |
4 |
|
% |
19 |
|
% |
||||||||||||||||||
Cross-border principal (constant currency) - YoY % change | (g) | 24 |
|
% |
23 |
|
% |
13 |
|
% |
26 |
|
% |
25 |
|
% |
3 |
|
% |
17 |
|
% |
|||||||||||||||||
Operating margin | 24.6 |
|
% |
20.5 |
|
% |
21.9 |
|
% |
19.6 |
|
% |
20.7 |
|
% |
24.3 |
|
% |
21.6 |
|
% |
||||||||||||||||||
Digital money transfer revenues (GAAP) - YoY % change (1) | 45 |
|
% |
36 |
|
% |
38 |
|
% |
45 |
|
% |
22 |
|
% |
15 |
|
% |
25 |
|
% |
||||||||||||||||||
Digital money transfer foreign currency translation impact | (j) | 1 |
|
% |
(1 |
) |
% |
0 |
|
% |
(1 |
) |
% |
(3 |
) |
% |
(1 |
) |
% |
(1 |
) |
% |
|||||||||||||||||
Digital money transfer revenues (non-GAAP, constant currency) - YoY % change (1) | 46 |
|
% |
35 |
|
% |
38 |
|
% |
44 |
|
% |
19 |
|
% |
14 |
|
% |
24 |
|
% |
||||||||||||||||||
Digital money transfer transactions - YoY % change | 96 |
|
% |
83 |
|
% |
81 |
|
% |
77 |
|
% |
33 |
|
% |
19 |
|
% |
38 |
|
% |
||||||||||||||||||
westernunion.com revenues (GAAP) - YoY % change | (gg) | 33 |
|
% |
27 |
|
% |
27 |
|
% |
38 |
|
% |
18 |
|
% |
12 |
|
% |
21 |
|
% |
|||||||||||||||||
westernunion.com foreign currency translation impact | (j) | (1 |
) |
% |
(1 |
) |
% |
0 |
|
% |
(1 |
) |
% |
(3 |
) |
% |
(1 |
) |
% |
(1 |
) |
% |
|||||||||||||||||
westernunion.com revenues (non-GAAP, constant currency) - YoY % change | (gg) | 32 |
|
% |
26 |
|
% |
27 |
|
% |
37 |
|
% |
15 |
|
% |
11 |
|
% |
20 |
|
% |
|||||||||||||||||
westernunion.com transactions - YoY % change | (gg) | 53 |
|
% |
56 |
|
% |
44 |
|
% |
55 |
|
% |
18 |
|
% |
9 |
|
% |
24 |
|
% |
|||||||||||||||||
C2C Segment Regional Metrics - YoY % change | |||||||||||||||||||||||||||||||||||||||
NA region revenues (GAAP) | (aa), (bb) | 0 |
|
% |
(3 |
) |
% |
(3 |
) |
% |
0 |
|
% |
4 |
|
% |
(2 |
) |
% |
1 |
|
% |
|||||||||||||||||
NA region foreign currency translation impact | (j) | 1 |
|
% |
0 |
|
% |
0 |
|
% |
1 |
|
% |
0 |
|
% |
0 |
|
% |
0 |
|
% |
|||||||||||||||||
NA region revenues (non-GAAP, constant currency) | (aa), (bb) | 1 |
|
% |
(3 |
) |
% |
(3 |
) |
% |
1 |
|
% |
4 |
|
% |
(2 |
) |
% |
1 |
|
% |
|||||||||||||||||
NA region transactions | (aa), (bb) | 1 |
|
% |
(1 |
) |
% |
(3 |
) |
% |
1 |
|
% |
3 |
|
% |
(5 |
) |
% |
0 |
|
% |
|||||||||||||||||
EU & CIS region revenues (GAAP) | (aa), (cc) | 3 |
|
% |
3 |
|
% |
(2 |
) |
% |
8 |
|
% |
18 |
|
% |
(3 |
) |
% |
7 |
|
% |
|||||||||||||||||
EU & CIS region foreign currency translation impact | (j) | (2 |
) |
% |
(3 |
) |
% |
(1 |
) |
% |
(4 |
) |
% |
(8 |
) |
% |
(2 |
) |
% |
(4 |
) |
% |
|||||||||||||||||
EU & CIS region revenues (non-GAAP, constant currency) | (aa), (cc) | 1 |
|
% |
0 |
|
% |
(3 |
) |
% |
4 |
|
% |
10 |
|
% |
(5 |
) |
% |
3 |
|
% |
|||||||||||||||||
EU & CIS region transactions | (aa), (cc) | 24 |
|
% |
23 |
|
% |
13 |
|
% |
28 |
|
% |
26 |
|
% |
3 |
|
% |
18 |
|
% |
|||||||||||||||||
MEASA region revenues (GAAP) | (aa), (dd) | 2 |
|
% |
1 |
|
% |
(2 |
) |
% |
1 |
|
% |
19 |
|
% |
(2 |
) |
% |
5 |
|
% |
|||||||||||||||||
MEASA region foreign currency translation impact | (j) | 0 |
|
% |
(1 |
) |
% |
0 |
|
% |
(1 |
) |
% |
(1 |
) |
% |
0 |
|
% |
0 |
|
% |
|||||||||||||||||
MEASA region revenues (non-GAAP, constant currency) | (aa), (dd) | 2 |
|
% |
0 |
|
% |
(2 |
) |
% |
0 |
|
% |
18 |
|
% |
(2 |
) |
% |
5 |
|
% |
|||||||||||||||||
MEASA region transactions | (aa), (dd) | 15 |
|
% |
12 |
|
% |
7 |
|
% |
13 |
|
% |
22 |
|
% |
2 |
|
% |
12 |
|
% |
|||||||||||||||||
LACA region revenues (GAAP) | (aa), (ee) | (21 |
) |
% |
(9 |
) |
% |
(22 |
) |
% |
3 |
|
% |
70 |
|
% |
25 |
|
% |
28 |
|
% |
|||||||||||||||||
LACA region foreign currency translation impact | (j) | 13 |
|
% |
11 |
|
% |
11 |
|
% |
5 |
|
% |
(2 |
) |
% |
1 |
|
% |
2 |
|
% |
|||||||||||||||||
LACA region revenues (non-GAAP, constant currency) | (aa), (ee) | (8 |
) |
% |
2 |
|
% |
(11 |
) |
% |
8 |
|
% |
68 |
|
% |
26 |
|
% |
30 |
|
% |
|||||||||||||||||
LACA region transactions | (aa), (ee) | (21 |
) |
% |
(13 |
) |
% |
(20 |
) |
% |
(8 |
) |
% |
42 |
|
% |
10 |
|
% |
12 |
|
% |
|||||||||||||||||
APAC region revenues (GAAP) | (aa), (ff) | 4 |
|
% |
8 |
|
% |
(3 |
) |
% |
9 |
|
% |
20 |
|
% |
1 |
|
% |
9 |
|
% |
|||||||||||||||||
APAC region foreign currency translation impact | (j) | 1 |
|
% |
(2 |
) |
% |
0 |
|
% |
(6 |
) |
% |
(7 |
) |
% |
(2 |
) |
% |
(5 |
) |
% |
|||||||||||||||||
APAC region revenues (non-GAAP, constant currency) | (aa), (ff) | 5 |
|
% |
6 |
|
% |
(3 |
) |
% |
3 |
|
% |
13 |
|
% |
(1 |
) |
% |
4 |
|
% |
|||||||||||||||||
APAC region transactions | (aa), (ff) | (6 |
) |
% |
(3 |
) |
% |
(10 |
) |
% |
(2 |
) |
% |
3 |
|
% |
(13 |
) |
% |
(5 |
) |
% |
|||||||||||||||||
% of C2C Revenue | |||||||||||||||||||||||||||||||||||||||
NA region revenues | (aa), (bb) | 38 |
|
% |
37 |
|
% |
38 |
|
% |
37 |
|
% |
37 |
|
% |
37 |
|
% |
37 |
|
% |
|||||||||||||||||
EU & CIS region revenues | (aa), (cc) | 33 |
|
% |
33 |
|
% |
33 |
|
% |
33 |
|
% |
33 |
|
% |
32 |
|
% |
33 |
|
% |
|||||||||||||||||
MEASA region revenues | (aa), (dd) | 16 |
|
% |
15 |
|
% |
15 |
|
% |
16 |
|
% |
15 |
|
% |
15 |
|
% |
15 |
|
% |
|||||||||||||||||
LACA region revenues | (aa), (ee) | 7 |
|
% |
8 |
|
% |
8 |
|
% |
8 |
|
% |
9 |
|
% |
9 |
|
% |
9 |
|
% |
|||||||||||||||||
APAC region revenues | (aa), (ff) | 6 |
|
% |
7 |
|
% |
6 |
|
% |
6 |
|
% |
6 |
|
% |
7 |
|
% |
6 |
|
% |
|||||||||||||||||
Digital money transfer revenues | (aa) | 21 |
|
% |
21 |
|
% |
20 |
|
% |
23 |
|
% |
24 |
|
% |
24 |
|
% |
24 |
|
% |
|||||||||||||||||
Business Solutions Segment Metrics | |||||||||||||||||||||||||||||||||||||||
Revenues (GAAP) - YoY % change | (11 |
) |
% |
(8 |
) |
% |
(8 |
) |
% |
(2 |
) |
% |
25 |
|
% |
31 |
|
% |
17 |
|
% |
||||||||||||||||||
Revenues (non-GAAP, constant currency) - YoY % change | (h) | (13 |
) |
% |
(11 |
) |
% |
(8 |
) |
% |
(8 |
) |
% |
16 |
|
% |
28 |
|
% |
11 |
|
% |
|||||||||||||||||
Operating margin | 10.5 |
|
% |
(0.2 |
) |
% |
6.9 |
|
% |
13.1 |
|
% |
10.9 |
|
% |
32.9 |
|
% |
19.8 |
|
% |
||||||||||||||||||
Other (primarily bill payments businesses in |
|||||||||||||||||||||||||||||||||||||||
Revenues (GAAP) - YoY % change | (33 |
) |
% |
(29 |
) |
% |
(48 |
) |
% |
(18 |
) |
% |
8 |
|
% |
3 |
|
% |
(4 |
) |
% |
||||||||||||||||||
Operating margin | 20.0 |
|
% |
15.8 |
|
% |
21.2 |
|
% |
22.6 |
|
% |
16.2 |
|
% |
18.3 |
|
% |
19.0 |
|
% |
||||||||||||||||||
% of Total Company Revenue (GAAP) | |||||||||||||||||||||||||||||||||||||||
Consumer-to-Consumer segment revenues | 88 |
|
% |
88 |
|
% |
87 |
|
% |
87 |
|
% |
87 |
|
% |
86 |
|
% |
87 |
|
% |
||||||||||||||||||
Business Solutions segment revenues | 7 |
|
% |
7 |
|
% |
8 |
|
% |
8 |
|
% |
8 |
|
% |
9 |
|
% |
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. |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||||
|
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
|
||||||||||||||||||||||||
|
2021 |
2020 |
% Change |
2021 |
2020 |
% Change |
||||||||||||||||||
Revenues |
|
$ | 1,286.3 |
|
$ | 1,258.5 |
|
2 |
|
% |
$ | 3,786.0 |
|
$ | 3,563.2 |
|
6 |
|
% |
|||||
Expenses: |
|
|||||||||||||||||||||||
Cost of services |
|
720.1 |
|
721.7 |
|
0 |
|
% |
2,181.1 |
|
2,067.3 |
|
6 |
|
% |
|||||||||
Selling, general, and administrative |
|
247.6 |
|
251.6 |
|
(2 |
) |
% |
798.6 |
|
755.7 |
|
6 |
|
% |
|||||||||
Total expenses (a) |
|
967.7 |
|
973.3 |
|
(1 |
) |
% |
2,979.7 |
|
2,823.0 |
|
6 |
|
% |
|||||||||
Operating income |
|
318.6 |
|
285.2 |
|
12 |
|
% |
806.3 |
|
740.2 |
|
9 |
|
% |
|||||||||
Other income/(expense): |
|
|||||||||||||||||||||||
Interest income |
|
0.4 |
|
0.5 |
|
(21 |
) |
% |
1.1 |
|
2.9 |
|
(62 |
) |
% |
|||||||||
Interest expense |
|
(25.7 |
) |
(28.2 |
) |
(9 |
) |
% |
(79.7 |
) |
(90.4 |
) |
(12 |
) |
% |
|||||||||
Other income/(expense), net |
|
(1.8 |
) |
3.5 |
|
(b) |
26.8 |
|
3.4 |
|
(b) |
|||||||||||||
Total other expense, net |
|
(27.1 |
) |
(24.2 |
) |
11 |
|
% |
(51.8 |
) |
(84.1 |
) |
(38 |
) |
% |
|||||||||
Income before income taxes |
|
291.5 |
|
261.0 |
|
12 |
|
% |
754.5 |
|
656.1 |
|
15 |
|
% |
|||||||||
Provision for income taxes |
|
58.8 |
|
32.4 |
|
81 |
|
% |
117.5 |
|
88.9 |
|
32 |
|
% |
|||||||||
Net income |
|
$ | 232.7 |
|
$ | 228.6 |
|
2 |
|
% |
$ | 637.0 |
|
$ | 567.2 |
|
12 |
|
% |
|||||
Earnings per share: |
|
|||||||||||||||||||||||
Basic |
|
$ | 0.57 |
|
$ | 0.56 |
|
2 |
|
% |
$ | 1.56 |
|
$ | 1.38 |
|
13 |
|
% |
|||||
Diluted |
|
$ | 0.57 |
|
$ | 0.55 |
|
4 |
|
% |
$ | 1.55 |
|
$ | 1.37 |
|
13 |
|
% |
|||||
Weighted-average shares outstanding: |
|
|||||||||||||||||||||||
Basic |
|
406.3 |
|
411.6 |
|
409.1 |
|
412.5 |
|
|||||||||||||||
Diluted |
|
408.0 |
|
414.6 |
|
411.3 |
|
415.5 |
|
(a) |
For the three and nine months ended |
|||||||||||||||||||
(b) |
Calculation not meaningful. |
CONDENSED CONSOLIDATED BALANCE SHEETS | |||||||||
(Unaudited) | |||||||||
(in millions, except per share amounts) | |||||||||
2021 |
2020 |
||||||||
Assets | |||||||||
Cash and cash equivalents | $ | 1,003.4 |
|
$ | 1,428.2 |
|
|||
Settlement assets | 3,007.1 |
|
3,821.4 |
|
|||||
Property and equipment, net of accumulated depreciation of |
131.5 |
|
150.4 |
|
|||||
2,034.6 |
|
2,566.6 |
|
||||||
Other intangible assets, net of accumulated amortization of |
441.0 |
|
505.0 |
|
|||||
Other assets | 761.2 |
|
1,024.7 |
|
|||||
Assets held for sale (a) | 1,492.2 |
|
— |
|
|||||
Total assets | $ | 8,871.0 |
|
$ | 9,496.3 |
|
|||
Liabilities and stockholders' equity | |||||||||
Liabilities: | |||||||||
Accounts payable and accrued liabilities | $ | 442.9 |
|
$ | 500.9 |
|
|||
Settlement obligations | 3,007.1 |
|
3,821.4 |
|
|||||
Income taxes payable | 864.7 |
|
928.9 |
|
|||||
Deferred tax liability, net | 206.4 |
|
188.9 |
|
|||||
Borrowings | 2,852.6 |
|
3,067.2 |
|
|||||
Other liabilities | 273.3 |
|
802.4 |
|
|||||
Liabilities associated with assets held for sale (a) | 855.4 |
|
— |
|
|||||
Total liabilities | 8,502.4 |
|
9,309.7 |
|
|||||
Stockholders' equity: | |||||||||
Preferred stock, |
— |
|
— |
|
|||||
Common stock, |
4.0 |
|
4.1 |
|
|||||
Capital surplus | 927.9 |
|
885.1 |
|
|||||
Accumulated deficit | (436.6 |
) |
(543.1 |
) |
|||||
Accumulated other comprehensive loss | (126.7 |
) |
(159.5 |
) |
|||||
Total stockholders' equity | 368.6 |
|
186.6 |
|
|||||
Total liabilities and stockholders' equity | $ | 8,871.0 |
|
$ | 9,496.3 |
|
(a) |
Includes balances associated with the Company's Business Solutions business, which were held for sale as of |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||
(Unaudited) | ||||||||
(in millions) | ||||||||
Nine Months Ended | ||||||||
2021 |
2020 |
|||||||
Cash flows from operating activities | ||||||||
Net income | $ | 637.0 |
|
$ | 567.2 |
|
||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||
Depreciation | 38.4 |
|
46.3 |
|
||||
Amortization | 121.9 |
|
123.2 |
|
||||
Gain on the sale of noncontrolling interest in a private company | (47.9 |
) |
— |
|
||||
Other non-cash items, net | 124.2 |
|
106.4 |
|
||||
Increase/(decrease) in cash resulting from changes in: | ||||||||
Other assets | (78.3 |
) |
(11.5 |
) |
||||
Accounts payable and accrued liabilities | (27.9 |
) |
(142.7 |
) |
||||
Income taxes payable | (61.7 |
) |
(97.6 |
) |
||||
Other liabilities | (19.7 |
) |
(5.7 |
) |
||||
Net cash provided by operating activities | 686.0 |
|
585.6 |
|
||||
Cash flows from investing activities | ||||||||
Payments for capitalized contract costs | (94.7 |
) |
(51.7 |
) |
||||
Payments for internal use software | (59.1 |
) |
(30.1 |
) |
||||
Purchases of property and equipment | (26.4 |
) |
(24.5 |
) |
||||
Proceeds from the sale of former corporate headquarters | — |
|
44.2 |
|
||||
Proceeds from the sale of noncontrolling interest in a private company | 50.9 |
|
— |
|
||||
Regulatory deposit made to purchase a noncontrolling interest in stc Bank | (200.0 |
) |
— |
|
||||
Other investing activities | (3.6 |
) |
(6.6 |
) |
||||
Net cash used in investing activities | (332.9 |
) |
(68.7 |
) |
||||
Cash flows from financing activities | ||||||||
Cash dividends and dividend equivalents paid | (288.7 |
) |
(277.8 |
) |
||||
Common stock repurchased | (235.8 |
) |
(238.0 |
) |
||||
Net proceeds from/(repayments of) commercial paper | 40.0 |
|
(195.0 |
) |
||||
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 |
|
1.7 |
|
||||
Other financing activities | — |
|
(0.7 |
) |
||||
Net cash used in financing activities | (745.5 |
) |
(709.8 |
) |
||||
Net change in cash, cash equivalents, and restricted cash | (392.4 |
) |
(192.9 |
) |
||||
Cash, cash equivalents, and restricted cash at beginning of period | 1,447.4 |
|
1,456.8 |
|
||||
Cash, cash equivalents, and restricted cash at end of period (a), (b) | $ | 1,055.0 |
|
$ | 1,263.9 |
|
(a) |
As of |
|||||||
(b) |
As of |
SUMMARY SEGMENT DATA | |||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||
(in millions) | |||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
2021 |
2020 |
% Change |
2021 |
2020 |
% Change |
||||||||||||||||||
Revenues: | |||||||||||||||||||||||
Consumer-to-Consumer | $ | 1,104.5 |
$ | 1,106.5 |
|
0 |
|
% |
$ | 3,282.5 |
$ | 3,098.5 |
|
6 |
|
% |
|||||||
Business Solutions | 116.8 |
89.1 |
|
31 |
|
% |
312.6 |
266.9 |
|
17 |
|
% |
|||||||||||
Other (a) | 65.0 |
62.9 |
|
3 |
|
% |
190.9 |
197.8 |
|
(4 |
) |
% |
|||||||||||
Total consolidated revenues | $ | 1,286.3 |
$ | 1,258.5 |
|
2 |
|
% |
$ | 3,786.0 |
$ | 3,563.2 |
|
6 |
|
% |
|||||||
Segment operating income: | |||||||||||||||||||||||
Consumer-to-Consumer | $ | 268.2 |
$ | 272.4 |
|
(2 |
) |
% |
$ | 708.1 |
$ | 695.1 |
|
2 |
|
% |
|||||||
Business Solutions | 38.4 |
9.4 |
|
(c) | 61.9 |
24.6 |
|
(c) | |||||||||||||||
Other (a) | 12.0 |
12.5 |
|
(6 |
) |
% |
36.3 |
45.3 |
|
(20 |
) |
% |
|||||||||||
Total segment operating income | 318.6 |
294.3 |
|
8 |
|
% |
806.3 |
765.0 |
|
5 |
|
% |
|||||||||||
Restructuring-related expenses (b) | — |
(9.1 |
) |
(c) | — |
(24.8 |
) |
(c) | |||||||||||||||
Total consolidated operating income | $ | 318.6 |
$ | 285.2 |
|
12 |
|
% |
$ | 806.3 |
$ | 740.2 |
|
9 |
|
% |
|||||||
Segment operating income margin | |||||||||||||||||||||||
Consumer-to-Consumer | 24.3 |
% |
24.6 |
|
% |
(0.3 |
) |
% |
21.6 |
% |
22.4 |
|
% |
(0.8 |
) |
% |
|||||||
Business Solutions | 32.9 |
% |
10.5 |
|
% |
22.4 |
|
% |
19.8 |
% |
9.2 |
|
% |
10.6 |
|
% |
|||||||
Other (a) | 18.3 |
% |
20.0 |
|
% |
(1.7 |
) |
% |
19.0 |
% |
22.9 |
|
% |
(3.9 |
) |
% |
(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 | |||||||||||||||||||||||||||
(in millions, unless indicated otherwise) | |||||||||||||||||||||||||||
(Unaudited) | |||||||||||||||||||||||||||
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 |
Income Before Income Taxes |
Provision for Income Taxes |
Net Income |
Diluted Earnings per Share |
||||||||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||||||||||||
Reported results (GAAP) | $ | 1,286.3 |
|
$ | 318.6 |
$ | 291.5 |
|
$ | 58.8 |
|
$ | 232.7 |
|
$ | 0.57 |
|
|||||||||||||||
Acquisition and divestiture costs and related tax benefit | (n) | — |
|
5.5 |
5.5 |
|
1.0 |
|
4.5 |
|
0.01 |
|
||||||||||||||||||||
Gain on investment sale and related tax expense | (o) | — |
|
— |
— |
|
(1.5 |
) |
1.5 |
|
— |
|
||||||||||||||||||||
Debt extinguishment costs and related tax benefit | (p) | — |
|
— |
— |
|
0.5 |
|
(0.5 |
) |
— |
|
||||||||||||||||||||
Change in permanent reinvestment assertion related to the pending sale of Business Solutions | (r) | — |
|
— |
— |
|
(18.1 |
) |
18.1 |
|
0.05 |
|
||||||||||||||||||||
Adjusted results (non-GAAP) | $ | 1,286.3 |
|
$ | 324.1 |
$ | 297.0 |
|
$ | 40.7 |
|
$ | 256.3 |
|
$ | 0.63 |
|
|||||||||||||||
Foreign currency translation impact | (j) | (2.8 |
) |
|||||||||||||||||||||||||||||
Revenues, constant currency adjusted (non-GAAP) | $ | 1,283.5 |
|
|||||||||||||||||||||||||||||
Three Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
Notes |
Revenues |
Operating
|
Income
|
Provision for
|
Net
|
Diluted
|
||||||||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||||||||||||
Reported results (GAAP) | $ | 1,258.5 |
|
$ | 285.2 |
$ | 261.0 |
|
$ | 32.4 |
|
$ | 228.6 |
|
$ | 0.55 |
|
|||||||||||||||
Restructuring related expenses and related tax benefit | (m) | — |
|
9.1 |
9.1 |
|
1.7 |
|
7.4 |
|
0.02 |
|
||||||||||||||||||||
Acquisition and divestiture costs and related tax benefit | (n) | — |
|
1.5 |
1.5 |
|
0.4 |
|
1.1 |
|
— |
|
||||||||||||||||||||
Adjusted results (non-GAAP) | $ | 1,258.5 |
|
$ | 295.8 |
$ | 271.6 |
|
$ | 34.5 |
|
$ | 237.1 |
|
$ | 0.57 |
|
|||||||||||||||
Quarter over quarter growth/(decline) (GAAP) | 2 |
|
% |
12 |
% |
12 |
|
% |
81 |
|
% |
2 |
|
% |
4 |
|
% |
|||||||||||||||
Quarter over quarter growth/(decline) (non-GAAP) | 2 |
|
% |
10 |
% |
9 |
|
% |
18 |
|
% |
8 |
|
% |
11 |
|
% |
|||||||||||||||
Nine Months Ended September 30, 2021 | ||||||||||||||||||||||||||||||||
Notes | Revenues | Operating Income |
Income Before Income Taxes |
Provision for Income Taxes |
Net Income |
Diluted Earnings per Share |
||||||||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||||||||||||
Reported results (GAAP) | $ | 3,786.0 |
|
$ | 806.3 |
$ | 754.5 |
|
$ | 117.5 |
|
$ | 637.0 |
|
$ | 1.55 |
|
|||||||||||||||
Acquisition and divestiture costs and related tax benefit | (n) | — |
|
12.0 |
12.0 |
|
2.5 |
|
9.5 |
|
0.02 |
|
||||||||||||||||||||
Gain on investment sale and related tax expense | (o) | — |
|
— |
(47.9 |
) |
(9.8 |
) |
(38.1 |
) |
(0.10 |
) |
||||||||||||||||||||
Debt extinguishment costs and related tax benefit | (p) | — |
|
— |
14.8 |
|
3.0 |
|
11.8 |
|
0.03 |
|
||||||||||||||||||||
Change in permanent reinvestment assertion related to the pending sale of Business Solutions | (r) | — |
|
— |
— |
|
(18.1 |
) |
18.1 |
|
0.05 |
|
||||||||||||||||||||
Adjusted results (non-GAAP) | $ | 3,786.0 |
|
$ | 818.3 |
$ | 733.4 |
|
$ | 95.1 |
|
$ | 638.3 |
|
$ | 1.55 |
|
|||||||||||||||
Foreign currency translation impact | (j) | (33.1 |
) |
|||||||||||||||||||||||||||||
Revenues, constant currency adjusted (non-GAAP) | $ | 3,752.9 |
|
|||||||||||||||||||||||||||||
Nine Months Ended September 30, 2020 | ||||||||||||||||||||||||||||||||
Notes | Revenues | Operating Income |
Income Before Income Taxes |
Provision for Income Taxes |
Net Income |
Diluted Earnings per Share |
||||||||||||||||||||||||||
(in millions, except per share amounts) | ||||||||||||||||||||||||||||||||
Reported results (GAAP) | $ | 3,563.2 |
|
$ | 740.2 |
$ | 656.1 |
|
$ | 88.9 |
|
$ | 567.2 |
|
$ | 1.37 |
|
|||||||||||||||
Restructuring related expenses and related tax benefit | (m) | — |
|
24.8 |
24.8 |
|
2.7 |
|
22.1 |
|
0.05 |
|
||||||||||||||||||||
Acquisition and divestiture costs and related tax benefit | (n) | — |
|
2.2 |
2.2 |
|
0.5 |
|
1.7 |
|
— |
|
||||||||||||||||||||
Adjusted results (non-GAAP) | $ | 3,563.2 |
|
$ | 767.2 |
$ | 683.1 |
|
$ | 92.1 |
|
$ | 591.0 |
|
$ | 1.42 |
|
|||||||||||||||
Year over year growth/(decline) (GAAP) | 6 |
|
% |
9 |
% |
15 |
|
% |
32 |
|
% |
12 |
|
% |
13 |
|
% |
|||||||||||||||
Year over year growth/(decline) (non-GAAP) | 5 |
|
% |
7 |
% |
7 |
|
% |
3 |
|
% |
8 |
|
% |
9 |
|
% |
|
||||||||||||||||||||||||||||||||||||||||
NOTES TO KEY STATISTICS |
||||||||||||||||||||||||||||||||||||||||
(in millions, unless indicated otherwise) |
||||||||||||||||||||||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||||||||||||||||||||||
Notes |
3Q20 |
4Q20 |
FY2020 |
1Q21 |
2Q21 |
3Q21 |
YTD 3Q21 |
|||||||||||||||||||||||||||||||||
Consolidated Metrics | ||||||||||||||||||||||||||||||||||||||||
(a) | Revenues (GAAP) | $ | 1,258.5 |
|
$ | 1,271.8 |
|
$ | 4,835.0 |
|
$ | 1,210.0 |
|
$ | 1,289.7 |
|
$ | 1,286.3 |
|
$ | 3,786.0 |
|
||||||||||||||||||
Foreign currency translation impact | (j) | 41.1 |
|
22.4 |
|
157.2 |
|
(0.9 |
) |
(29.4 |
) |
(2.8 |
) |
(33.1 |
) |
|||||||||||||||||||||||||
Revenues (non-GAAP, constant currency) | $ | 1,299.6 |
|
$ | 1,294.2 |
|
$ | 4,992.2 |
|
$ | 1,209.1 |
|
$ | 1,260.3 |
|
$ | 1,283.5 |
|
$ | 3,752.9 |
|
|||||||||||||||||||
Prior year revenues (GAAP) | $ | 1,306.9 |
|
$ | 1,307.7 |
|
$ | 5,292.1 |
|
$ | 1,190.0 |
|
$ | 1,114.7 |
|
$ | 1,258.5 |
|
$ | 3,563.2 |
|
|||||||||||||||||||
Less prior year revenues from Speedpay and Paymap divestitures | (k) | N/A |
|
N/A |
|
(130.7 |
) |
N/A |
|
N/A |
|
N/A |
|
N/A |
|
|||||||||||||||||||||||||
Prior year revenues, adjusted for divestitures (non-GAAP) | $ | 1,306.9 |
|
$ | 1,307.7 |
|
$ | 5,161.4 |
|
$ | 1,190.0 |
|
$ | 1,114.7 |
|
$ | 1,258.5 |
|
$ | 3,563.2 |
|
|||||||||||||||||||
Revenues (GAAP) - YoY % Change | (4 |
) |
% |
(3 |
) |
% |
(9 |
) |
% |
2 |
|
% |
16 |
|
% |
2 |
|
% |
6 |
|
% |
|||||||||||||||||||
Revenues, constant currency and adjusted for divestitures (non-GAAP) - YoY % Change | (1 |
) |
% |
(1 |
) |
% |
(3 |
) |
% |
2 |
|
% |
13 |
|
% |
2 |
|
% |
5 |
|
% |
|||||||||||||||||||
(b) | Operating income (GAAP) | $ | 285.2 |
|
$ | 227.1 |
|
$ | 967.3 |
|
$ | 232.8 |
|
$ | 254.9 |
|
$ | 318.6 |
|
$ | 806.3 |
|
||||||||||||||||||
Restructuring-related expenses | (m) | 9.1 |
|
12.0 |
|
36.8 |
|
N/A |
|
N/A |
|
N/A |
|
N/A |
|
|||||||||||||||||||||||||
Acquisition and divestiture costs | (n) | 1.5 |
|
0.3 |
|
2.5 |
|
0.9 |
|
5.6 |
|
5.5 |
|
12.0 |
|
|||||||||||||||||||||||||
Operating income, adjusted (non-GAAP) | $ | 295.8 |
|
$ | 239.4 |
|
$ | 1,006.6 |
|
$ | 233.7 |
|
$ | 260.5 |
|
$ | 324.1 |
|
$ | 818.3 |
|
|||||||||||||||||||
Operating margin (GAAP) | 22.7 |
|
% |
17.9 |
|
% |
20.0 |
|
% |
19.2 |
|
% |
19.8 |
|
% |
24.8 |
|
% |
21.3 |
|
% |
|||||||||||||||||||
Operating margin, adjusted (non-GAAP) | 23.5 |
|
% |
18.8 |
|
% |
20.8 |
|
% |
19.3 |
|
% |
20.2 |
|
% |
25.2 |
|
% |
21.6 |
|
% |
|||||||||||||||||||
(c) | Operating income (GAAP) | $ | 285.2 |
|
$ | 227.1 |
|
$ | 967.3 |
|
$ | 232.8 |
|
$ | 254.9 |
|
$ | 318.6 |
|
$ | 806.3 |
|
||||||||||||||||||
Depreciation and amortization | 54.2 |
|
56.1 |
|
225.6 |
|
53.4 |
|
55.6 |
|
51.3 |
|
160.3 |
|
||||||||||||||||||||||||||
EBITDA (non-GAAP) | (l) | $ | 339.4 |
|
$ | 283.2 |
|
$ | 1,192.9 |
|
$ | 286.2 |
|
$ | 310.5 |
|
$ | 369.9 |
|
$ | 966.6 |
|
||||||||||||||||||
Operating margin (GAAP) | 22.7 |
|
% |
17.9 |
|
% |
20.0 |
|
% |
19.2 |
|
% |
19.8 |
|
% |
24.8 |
|
% |
21.3 |
|
% |
|||||||||||||||||||
EBITDA margin (non-GAAP) | 27.0 |
|
% |
22.3 |
|
% |
24.7 |
|
% |
23.7 |
|
% |
24.1 |
|
% |
28.8 |
|
% |
25.5 |
|
% |
|||||||||||||||||||
(d) | Effective tax rate (GAAP) | 12 |
|
% |
11 |
|
% |
13 |
|
% |
10 |
|
% |
14 |
|
% |
20 |
|
% |
16 |
|
% |
||||||||||||||||||
Impact from change in permanent reinvestment assertion related to the pending sale of Business Solutions | (r) | N/A |
|
N/A |
|
N/A |
|
N/A |
|
N/A |
|
(6 |
) |
% |
(3 |
) |
% |
|||||||||||||||||||||||
Impact from restructuring-related expenses | (m) | 1 |
|
% |
1 |
|
% |
0 |
|
% |
N/A |
|
N/A |
|
N/A |
|
N/A |
|
||||||||||||||||||||||
Impact from acquisition and divestiture costs | (n) | 0 |
|
% |
0 |
|
% |
0 |
|
% |
0 |
|
% |
0 |
|
% |
0 |
|
% |
0 |
|
% |
||||||||||||||||||
Impact from gain on investment sale | (o) | N/A |
|
N/A |
|
N/A |
|
N/A |
|
0 |
|
% |
0 |
|
% |
0 |
|
% |
||||||||||||||||||||||
Impact from debt extinguishment costs | (p) | N/A |
|
N/A |
|
N/A |
|
N/A |
|
0 |
|
% |
0 |
|
% |
0 |
|
% |
||||||||||||||||||||||
Effective tax rate, adjusted (non-GAAP) | 13 |
|
% |
12 |
|
% |
13 |
|
% |
10 |
|
% |
14 |
|
% |
14 |
|
% |
13 |
|
% |
|||||||||||||||||||
C2C Segment Metrics | ||||||||||||||||||||||||||||||||||||||||
(e) | Revenues (GAAP) | $ | 1,106.5 |
|
$ | 1,121.5 |
|
$ | 4,220.0 |
|
$ | 1,050.9 |
|
$ | 1,127.1 |
|
$ | 1,104.5 |
|
$ | 3,282.5 |
|
||||||||||||||||||
Foreign currency translation impact | (j) | 11.1 |
|
(1.2 |
) |
41.2 |
|
(11.1 |
) |
(32.1 |
) |
(9.4 |
) |
(52.6 |
) |
|||||||||||||||||||||||||
Revenues (non-GAAP, constant currency) | $ | 1,117.6 |
|
$ | 1,120.3 |
|
$ | 4,261.2 |
|
$ | 1,039.8 |
|
$ | 1,095.0 |
|
$ | 1,095.1 |
|
$ | 3,229.9 |
|
|||||||||||||||||||
Prior year revenues (GAAP) | $ | 1,113.0 |
|
$ | 1,125.0 |
|
$ | 4,407.8 |
|
$ | 1,015.4 |
|
$ | 976.6 |
|
$ | 1,106.5 |
|
$ | 3,098.5 |
|
|||||||||||||||||||
Revenues (GAAP) - YoY % change | (1 |
) |
% |
0 |
|
% |
(4 |
) |
% |
4 |
|
% |
15 |
|
% |
0 |
|
% |
6 |
|
% |
|||||||||||||||||||
Revenues (non-GAAP, constant currency) - YoY % change | 0 |
|
% |
0 |
|
% |
(3 |
) |
% |
2 |
|
% |
12 |
|
% |
(1 |
) |
% |
4 |
|
% |
|||||||||||||||||||
(f) | Principal per transaction, as reported ($- dollars) | $ | 348 |
|
$ | 341 |
|
$ | 331 |
|
$ | 353 |
|
$ | 357 |
|
$ | 361 |
|
$ | 357 |
|
||||||||||||||||||
Foreign currency translation impact ($- dollars) | (j) | 1 |
|
(2 |
) |
2 |
|
(7 |
) |
(10 |
) |
(1 |
) |
(6 |
) |
|||||||||||||||||||||||||
Principal per transaction (constant currency) ($- dollars) | $ | 349 |
|
$ | 339 |
|
$ | 333 |
|
$ | 346 |
|
$ | 347 |
|
$ | 360 |
|
$ | 351 |
|
|||||||||||||||||||
Prior year principal per transaction, as reported ($- dollars) | $ | 307 |
|
$ | 300 |
|
$ | 303 |
|
$ | 308 |
|
$ | 322 |
|
$ | 348 |
|
$ | 327 |
|
|||||||||||||||||||
Principal per transaction, as reported - YoY % change | 13 |
|
% |
14 |
|
% |
9 |
|
% |
15 |
|
% |
11 |
|
% |
4 |
|
% |
9 |
|
% |
|||||||||||||||||||
Principal per transaction (constant currency) - YoY % change | 14 |
|
% |
13 |
|
% |
10 |
|
% |
12 |
|
% |
8 |
|
% |
3 |
|
% |
7 |
|
% |
|||||||||||||||||||
(g) | Cross-border principal, as reported ($- billions) | $ | 25.5 |
|
$ | 25.3 |
|
$ | 90.6 |
|
$ | 24.5 |
|
$ | 26.6 |
|
$ | 26.5 |
|
$ | 77.6 |
|
||||||||||||||||||
Foreign currency translation impact ($- billions) | (j) | — |
|
(0.1 |
) |
0.6 |
|
(0.5 |
) |
(0.7 |
) |
(0.2 |
) |
(1.4 |
) |
|||||||||||||||||||||||||
Cross-border principal (constant currency) ($- billions) | $ | 25.5 |
|
$ | 25.2 |
|
$ | 91.2 |
|
$ | 24.0 |
|
$ | 25.9 |
|
$ | 26.3 |
|
$ | 76.2 |
|
|||||||||||||||||||
Prior year cross-border principal, as reported ($- billions) | $ | 20.6 |
|
$ | 20.5 |
|
$ | 80.7 |
|
$ | 19.1 |
|
$ | 20.7 |
|
$ | 25.5 |
|
$ | 65.3 |
|
|||||||||||||||||||
Cross-border principal, as reported - YoY % change | 23 |
|
% |
24 |
|
% |
12 |
|
% |
28 |
|
% |
29 |
|
% |
4 |
|
% |
19 |
|
% |
|||||||||||||||||||
Cross-border principal (constant currency) - YoY % change | 24 |
|
% |
23 |
|
% |
13 |
|
% |
26 |
|
% |
25 |
|
% |
3 |
|
% |
17 |
|
% |
|||||||||||||||||||
Business Solutions Segment Metrics | ||||||||||||||||||||||||||||||||||||||||
(h) | Revenues (GAAP) | $ | 89.1 |
|
$ | 89.2 |
|
$ | 356.1 |
|
$ | 96.5 |
|
$ | 99.3 |
|
$ | 116.8 |
|
$ | 312.6 |
|
||||||||||||||||||
Foreign currency translation impact | (j) | (1.9 |
) |
(2.4 |
) |
(0.1 |
) |
(5.6 |
) |
(7.2 |
) |
(3.1 |
) |
(15.9 |
) |
|||||||||||||||||||||||||
Revenues (non-GAAP, constant currency) | $ | 87.2 |
|
$ | 86.8 |
|
$ | 356.0 |
|
$ | 90.9 |
|
$ | 92.1 |
|
$ | 113.7 |
|
$ | 296.7 |
|
|||||||||||||||||||
Prior year revenues (GAAP) | $ | 100.6 |
|
$ | 97.0 |
|
$ | 388.8 |
|
$ | 98.4 |
|
$ | 79.4 |
|
$ | 89.1 |
|
$ | 266.9 |
|
|||||||||||||||||||
Revenues (GAAP) - YoY % change | (11 |
) |
% |
(8 |
) |
% |
(8 |
) |
% |
(2 |
) |
% |
25 |
|
% |
31 |
|
% |
17 |
|
% |
|||||||||||||||||||
Revenues (non-GAAP, constant currency) - YoY % change | (13 |
) |
% |
(11 |
) |
% |
(8 |
) |
% |
(8 |
) |
% |
16 |
|
% |
28 |
|
% |
11 |
|
% |
|||||||||||||||||||
(i) | Operating income/(loss) (GAAP) | $ | 9.4 |
|
$ | (0.2 |
) |
$ | 24.4 |
|
$ | 12.6 |
|
$ | 10.9 |
|
$ | 38.4 |
|
$ | 61.9 |
|
||||||||||||||||||
Depreciation and amortization | 9.3 |
|
8.1 |
|
36.1 |
|
6.9 |
|
6.8 |
|
2.4 |
|
16.1 |
|
||||||||||||||||||||||||||
EBITDA (non-GAAP) | (l) | $ | 18.7 |
|
$ | 7.9 |
|
$ | 60.5 |
|
$ | 19.5 |
|
$ | 17.7 |
|
$ | 40.8 |
|
$ | 78.0 |
|
||||||||||||||||||
Operating income margin (GAAP) | 10.5 |
|
% |
(0.2 |
) |
% |
6.9 |
|
% |
13.1 |
|
% |
10.9 |
|
% |
32.9 |
|
% |
19.8 |
|
% |
|||||||||||||||||||
EBITDA margin (non-GAAP) | 21.1 |
|
% |
8.8 |
|
% |
17.0 |
|
% |
20.2 |
|
% |
17.8 |
|
% |
34.9 |
|
% |
25.0 |
|
% |
|||||||||||||||||||
2021 Consolidated Outlook Metrics | ||||||||||||||||||||||||||||||||||||||||
Range | ||||||||||||||||||||||||||||||||||||||||
Revenues (GAAP) | 4.5 |
|
% |
5.5 |
|
% |
||||||||||||||||||||||||||||||||||
Foreign currency translation impact, excluding |
(j) | (1.5 |
) |
% |
(1.5 |
) |
% |
|||||||||||||||||||||||||||||||||
Revenues, constant currency adjusted, excluding |
3.0 |
|
% |
4.0 |
|
% |
||||||||||||||||||||||||||||||||||
Operating margin (GAAP) | 21.0 |
|
% |
|||||||||||||||||||||||||||||||||||||
Impact from acquisition and divestiture costs | (n) | 0.5 |
|
% |
||||||||||||||||||||||||||||||||||||
Operating margin, adjusted, excluding acquisition and divestiture costs (non-GAAP) | 21.5 |
|
% |
|||||||||||||||||||||||||||||||||||||
Range | ||||||||||||||||||||||||||||||||||||||||
Earnings per share (GAAP) ($- dollars) | $ | 1.80 |
|
$ | 1.85 |
|
||||||||||||||||||||||||||||||||||
Pension plan termination charge | (q) | 0.23 |
|
0.23 |
|
|||||||||||||||||||||||||||||||||||
Gain on an investment sale | (o) | (0.09 |
) |
(0.09 |
) |
|||||||||||||||||||||||||||||||||||
Debt extinguishment costs | (p) | 0.03 |
|
0.03 |
|
|||||||||||||||||||||||||||||||||||
Acquisition and divestiture costs | (n) | 0.03 |
|
0.03 |
|
|||||||||||||||||||||||||||||||||||
Change in permanent reinvestment assertion related to the pending sale of Business Solutions | (r) | 0.05 |
|
0.05 |
|
|||||||||||||||||||||||||||||||||||
Earnings per share, adjusted, excluding the expected termination of pension plan, gain on an investment sale, debt extinguishment costs, acquisition and divestiture costs, and change in permanent reinvestment assertion related to the pending sale of Business Solutions (non-GAAP) ($- dollars) | $ | 2.05 |
|
$ | 2.10 |
|
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 three months ended September 30, 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 shares it held as a minority investor in a private company for cash proceeds of |
||||||||||||||
(p) | On April 1, 2021, the Company repaid |
||||||||||||||
(q) | The Company expects to settle and terminate its frozen defined benefit pension plan in the fourth quarter of 2021. The Company's 2021 earnings per share outlook has been adjusted to exclude the impact of this expected settlement and termination, which will primarily include the recognition of non-cash actuarial losses currently recorded in accumulated other comprehensive loss. Management believes that presenting the Company's 2021 earnings per share outlook as adjusted to exclude the impact of the settlement and termination 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. Management believes that presenting the Company's effective tax rates, earnings per share, and related outlooks as adjusted to exclude the impact of the changes in the permanent reinvestment assertions will provide investors with a more meaningful comparison of results with the historical periods presented. | ||||||||||||||
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/20211102006037/en/
Media Relations:
+1(720) 332-0652
Claire.treacy@westernunion.com
Investor Relations:
+1(720) 332-2510
brad.windbigler@westernunion.com
Source:
FAQ
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