The Western Union Company (NYSE: WU) today reported financial
results for the 2012 second quarter.
Financial highlights for the quarter included:
- Revenue of $1.4 billion, a reported
increase of 4%, or 7% constant currency, compared to last year’s
second quarter
- Pro forma revenue increase of 2%
constant currency, including Travelex Global Business Payments
(TGBP) in the prior year period
- Operating margin of 24.3% compared to
25.7% in the prior year. Operating margin was 25.3% excluding TGBP
integration expenses of $14 million, compared to 26.3% excluding $9
million of restructuring expenses in the prior year period. Second
quarter operating margin excluding TGBP integration expenses of
25.3% increased from 24.3% in the first quarter
- Consumer-to-Consumer operating margins
were consistent with prior year. The decrease in consolidated
operating margin compared to prior year was primarily due to the
acquisition of TGBP, including intangibles amortization, and
incremental investments related to compliance and Ventures
- EBITDA margin excluding TGBP
integration expenses of 29.3%, compared to 29.7% excluding
restructuring expenses in the prior year period and 28.9% in the
first quarter
- Effective tax rate of 12.5%, compared
to 21.1% in the prior year and 14.8% in the first quarter. The
effective tax rate in the second quarter included a non-recurring
benefit from favorable resolution of certain foreign and U.S. tax
positions
- EPS of $0.44, compared to $0.41 in the
prior year. EPS excluding TGBP integration expense of $0.46,
compared to $0.42 in the prior year excluding restructuring
expenses. Prior year EPS included a gain of $0.03 related to the
Company’s previous 30% ownership position in Angelo Costa
S.r.l.
- Year-to-date cash provided by operating
activities of $446 million, including the impact of tax payments of
approximately $100 million relating to the agreement with the U.S.
Internal Revenue Service announced December 15, 2011
Western Union President and Chief Executive Officer Hikmet
Ersek commented, “Overall we are on track for our full year
financial outlook. In the quarter, our core consumer money transfer
business, which represents over 80% of Company revenue, delivered
solid 3% constant currency growth with consistent margins. The
Middle East and Africa, Asia Pacific, and Latin America regions and
on-line money transfer performed well, more than offsetting the
impact of consumer slowdowns in Southern Europe and some expected
softness in certain countries. The global diversification of our
portfolio and resiliency of our consumers continue to drive revenue
growth and strong cash flow, even in a challenging economic
environment.”
Ersek continued, “We continue to invest for the future to
support our strategic growth areas of Global Consumer Financial
Services, Business Solutions, and Ventures. We are further
expanding our consumer network, and now have 510,000 agent
locations across the world. Business Solutions global expansion is
on track and new customer acquisition is strong. In Ventures, our
westernunion.com on-line money transfer service continues to
deliver strong growth while we develop new capabilities, and our
prepaid business will soon benefit from a significant increase in
distribution points in the U.S.”
Ersek added, “The long-term opportunities are strong, and we
believe in our growth strategies for the future. Our business
continues to generate significant free cash flow, and we have
returned over $430 million to shareholders through the combination
of share repurchase and dividends in the first half of the year. We
remain committed to strong cash deployment for our
shareholders.”
Additional highlights for the quarter included:
- Consumer-to-Consumer (C2C) revenue flat
on a reported basis and an increase of 3% constant currency, on
transaction growth of 4%
- C2C represented 81% of Company
revenue
- North America region revenue flat with
the prior year period
- Europe and the CIS region revenue
decrease of 8%, including a negative 5% impact from currency
translation
- Middle East and Africa (MEA) region
revenue increase of 3%, including a negative 3% impact from
currency translation
- Asia Pacific (APAC) region revenue
increase of 4%, including a negative 2% impact from currency
translation
- Latin America and the Caribbean (LACA)
region revenue increase of 5%, including a negative 2% impact from
currency translation
- westernunion.com revenue increase of
23%, including a negative 4% impact from currency translation
- C2C operating margin of 28.5% compared
to 28.6% in the prior year
- Consumer-to-Business (C2B) payments
revenue decrease of 3% reported and flat constant currency
- C2B represented 11% of Company
revenue
- C2B operating margin of 22.4% compared
to 24.6% in the prior year
- Business Solutions revenue of $92
million, compared to $31 million in the prior year
- Business Solutions represented 6% of
Company revenue
- Pro forma revenue increase of 4%
constant currency, including TGBP revenue in the prior year
period
- Operating loss of $15 million,
including $15 million of depreciation and amortization and $14
million of TGBP integration expenses (integration expenses include
approximately $1 million that is also included in depreciation and
amortization), compared to an operating loss of $2 million in the
prior year (prior year does not include TGBP)
- Electronic channels revenue increase of
26%
- Electronic channels, which include
westernunion.com, account based money transfer, and mobile money
transfer, represented 3% of total Company revenue (included in the
various segments)
- Prepaid revenue increase of 6%
- Prepaid including third party top-up
represented 1% of Company revenue
- Agent locations of approximately
510,000 as of June 30
- Share repurchases of $163 million (10
million shares at an average price of $16.87 per share) and
dividends declared of $0.10 per share or $61 million in the
quarter
Additional Statistics
Additional key statistics for the quarter and historical trends
can be found in the supplemental tables included with this press
release.
2012 Outlook
The Company affirms its full year 2012 revenue and EBITDA margin
outlook provided on April 24, and has increased its earnings per
share outlook, primarily due to the tax benefit recorded in the
second quarter. The Company has reduced its operating margin
outlook due to increased compliance related costs; reduced its
Business Solutions revenue outlook; and increased its outlook for
cash flow from operations due to timing of tax payments.
The Company now expects the following outlook for 2012:
Revenue
- Constant currency revenue growth in a
range of +6% to +8%, including a +4% benefit from the full year
inclusion of TGBP
- GAAP revenue growth 2% lower than
constant currency
- Business Solutions pro forma constant
currency revenue growth of mid-single digits, including TGBP
revenue in the prior year period
Operating Margins
- GAAP operating margin of approximately
24.5%. The Company’s previous outlook for GAAP operating margin was
approximately 25%
- Operating margin of approximately 25.5%
excluding TGBP integration costs. The Company’s previous outlook
was approximately 26%
- EBITDA margin excluding TGBP
integration costs of approximately 30%
- The operating margin outlook decrease
is due to incremental compliance costs of approximately $15 million
related to the Dodd-Frank Consumer Financial Protection Bureau
remittance disclosure rules, and other incremental compliance costs
primarily related to the Southwest Border agreement
Tax Rate
- The Company anticipates an effective
tax rate in a range of 15% to 16%, including the non-recurring
benefit recorded in the second quarter. The Company’s previous
outlook was 16% to 17%
Earnings Per Share
- GAAP EPS in a range of $1.68 to $1.72,
which compares to the previous outlook of $1.65 to $1.70
- EPS excluding TGBP integration expenses
in a range of $1.73 to $1.77, which compares to the previous
outlook of $1.70 to $1.75
Cash Flow from Operations
- Cash flow from operations in a range of
$1.1 billion to $1.2 billion, or $1.2 billion to $1.3 billion
excluding anticipated tax payments of approximately $100 million
relating to the IRS agreement announced on December 15, 2011. The
cash flow from operations increased due to timing of the
anticipated tax payments
Non-GAAP Measures
Western Union presents a number of non-GAAP financial measures
because management believes that these metrics provide meaningful
supplemental information in addition to the GAAP metrics and
provide comparability and consistency to prior periods. These
non-GAAP financial measures include revenue change constant
currency adjusted, pro forma revenue change TGBP and constant
currency adjusted, operating income margin excluding restructuring
expense, operating income margin excluding restructuring and TGBP
integration expense, EBITDA margin excluding restructuring and TGBP
integration expense, earnings per share restructuring and TGBP
integration expense adjusted, Consumer-to-Consumer segment revenue
change constant currency adjusted, Consumer-to-Business segment
revenue change constant currency adjusted, Business Solutions
segment pro forma revenue change TGBP and constant currency
adjusted, 2012 revenue change outlook constant currency adjusted,
2012 operating income margin outlook TGBP integration expense
adjusted, 2012 EBITDA margin outlook TGBP integration expense
adjusted, 2012 earnings per share outlook TGBP integration expense
adjusted, 2012 operating cash flow outlook IRS Agreement adjusted,
and additional measures found in the supplemental schedule included
with this press release.
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
www.westernunion.com.
EBITDA
Earnings before Interest, Taxes, Depreciation and Amortization
(EBITDA) results from taking operating income and adjusting for
depreciation and amortization expenses. The 2012 EBITDA has been
adjusted to exclude TGBP integration expense, and the 2011 EBITDA
has been adjusted to exclude restructuring expenses and TGBP
integration expense. EBITDA results provide an additional
performance measurement calculation which helps neutralize the
income statement effect of assets acquired in prior periods.
TGBP Integration
The Company expects approximately $50 million of integration
expense for TGBP in 2012, of which approximately $14 million was
incurred in the second quarter. TGBP integration expense consists
primarily of severance and other benefits, retention, direct and
incremental expense consisting of facility relocation,
consolidation and closures; IT systems integration; amortization of
a transitional trademark license; and other expenses such as
training, travel, and professional fees. Integration expense does
not include costs related to the completion of the TGBP
acquisition.
Restructuring
The Company did not incur any restructuring expenses in the
second quarter of 2012. The Company recorded $9 million of
restructuring charges in the second quarter of 2011. Approximately
$0.5 million was included in cost of services and $8.4 million was
included in selling, general, and administrative expense. The
restructuring charges relate primarily to organizational changes
designed to simplify business processes, move decision-making
closer to the marketplace, and create operating efficiencies. The
Company realized pre-tax savings from the initiatives of
approximately $55 million in 2011, and expects $70 million
annualized beginning in 2012. Restructuring expenses are not
reflected in segment operating results.
Restructuring expenses include expenses related to severance,
outplacement and other related benefits; facility closure and
migration of IT infrastructure; and other expenses related to
relocation of various operations to new or existing Company
facilities and third-party providers, including hiring, training,
relocation, travel, and professional fees. Also included in the
facility closure expenses are non-cash expenses related to fixed
asset and leasehold improvement write-offs, and the acceleration of
depreciation and amortization.
Currency
Constant currency results assume foreign revenues and expenses
are translated from foreign currencies to the U.S. dollar, net of
the effect of foreign currency hedges, at rates consistent with
those in the prior year. Constant currency results also assume any
benefit or loss caused by foreign exchange fluctuations between
foreign currencies and the U.S. dollar, net of the effect of
foreign currency hedges, would have been consistent with the prior
year. Additionally, the measurement assumes the impact of
fluctuations in foreign currency derivatives not designated as
hedges and the portion of fair value that is excluded from the
measure of effectiveness for those contracts designated as hedges
is consistent with the prior year.
Investor and Analyst Conference Call
and Slide Presentation
The Company will host a conference call and webcast, including
slides, at 8:30 a.m. Eastern Time today. To listen to the
conference call live via telephone, dial 866-450-8367 (U.S.) or
+1-412-317-5427 (outside the U.S.) ten minutes prior to the start
of the call. The pass code is 6061472.
The conference call and accompanying slides will be available
via webcast at http://ir.westernunion.com. Registration for the
event is required, so please register at least five minutes prior
to the scheduled start time.
A replay of the call will be available approximately two hours
after the call ends through August 3, 2012, at 877-344-7529 (U.S.)
or +1-412-317-0088 (outside the U.S.). The pass code is 6061472. A
webcast replay will be available at http://ir.westernunion.com for
the same time period.
Please note: All statements made by Western Union officers on
this call are the property of Western Union and subject to
copyright protection. Other than the replay, Western Union has not
authorized, and disclaims responsibility for, any recording, replay
or distribution of any transcription of this call.
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,” “anticipates,” “believes,” “estimates,” “guides,”
“provides guidance,” “provides outlook” and other similar
expressions or future or conditional verbs such as “will,”
“should,” “would” and “could” are intended to identify such
forward-looking statements. Readers of this press release by The
Western Union Company (the “Company,” “Western Union,” “we,” “our”
or “us”) should not rely solely on the forward-looking statements
and should consider all uncertainties and risks discussed in the
“Risk Factors” section and throughout the Annual Report on
Form 10-K for the year ended December 31, 2011. The
statements are only as of the date they are made, and the Company
undertakes no obligation to update any forward-looking
statement.
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: deterioration in
consumers' and clients' confidence in our business, or in money
transfer and payment service providers generally; changes in
general economic conditions and economic conditions in the regions
and industries in which we operate, including global economic
downturns and financial market disruptions; political conditions
and related actions in the United States and abroad which may
adversely affect our business and economic conditions as a whole;
interruptions of United States government relations with countries
in which we have or are implementing material agent contracts;
changes in, and failure to manage effectively exposure to, foreign
exchange rates, including the impact of the regulation of foreign
exchange spreads on money transfers and payment transactions;
changes in immigration laws, interruptions in immigration patterns
and other factors related to migrants; our ability to adapt
technology in response to changing industry and consumer needs or
trends; our failure to develop and introduce new services and
enhancements, and gain market acceptance of such services; mergers,
acquisitions and integration of acquired businesses and
technologies into our Company, and the realization of anticipated
financial benefits from these acquisitions; decisions to downsize,
sell or close units, or to transition operating activities from one
location to another or to third parties, particularly transitions
from the United States to other countries; decisions to change our
business mix; failure to manage credit and fraud risks presented by
our agents, clients and consumers or non-performance by our banks,
lenders, other financial services providers or insurers; adverse
movements and volatility in capital markets and other events which
affect our liquidity, the liquidity of our agents or clients, or
the value of, or our ability to recover our investments or amounts
payable to us; any material breach of security or safeguards of or
interruptions in any of our systems; our ability to attract and
retain qualified key employees and to manage our workforce
successfully; our ability to maintain our agent network and
business relationships under terms consistent with or more
advantageous to us than those currently in place; adverse rating
actions by credit rating agencies; failure to compete effectively
in the money transfer industry with respect to global and niche or
corridor money transfer providers, banks and other money transfer
services providers, including telecommunications providers, card
associations, card-based payment providers and electronic and
Internet providers; our ability to protect our brands and our other
intellectual property rights; our failure to manage the potential
both for patent protection and patent liability in the context of a
rapidly developing legal framework for intellectual property
protection; changes in tax laws and unfavorable resolution of tax
contingencies; cessation of various services provided to us by
third-party vendors; material changes in the market value or
liquidity of securities that we hold; restrictions imposed by our
debt obligations; significantly slower growth or declines in the
money transfer market and other markets in which we operate; and
changes in industry standards affecting our business; (ii) events
related to our regulatory and litigation environment, such as: the
failure by us, our agents or their subagents to comply with laws
and regulations designed to detect and prevent money laundering,
terrorist financing, fraud and other illicit activity; changes in
United States or foreign laws, rules and regulations including the
Internal Revenue Code, governmental or judicial interpretations
thereof and industry practices and standards; liabilities resulting
from a failure of our agents or subagents to comply with laws and
regulations; increased costs due to regulatory initiatives and
changes in laws, regulations and industry practices and standards
affecting our agents; liabilities and unanticipated developments
resulting from governmental investigations and consent agreements
with, or enforcement actions by, regulators, including those
associated with compliance with, or a failure to comply with the
settlement agreement with the State of Arizona; the impact on our
business of the Dodd-Frank Wall Street Reform and Consumer
Protection Act, the rules promulgated there-under and the creation
of the Consumer Financial Protection Bureau; liabilities resulting
from litigation, including class-action lawsuits and similar
matters, including costs, expenses, settlements and judgments;
failure to comply with regulations regarding consumer privacy and
data use and security; effects of unclaimed property laws; failure
to maintain sufficient amounts or types of regulatory capital to
meet the changing requirements of our regulators worldwide; and
changes in accounting standards, rules and interpretations; and
(iii) other events, such as: adverse consequences from our spin-off
from First Data Corporation; catastrophic events; and
management's ability to identify and manage these and other
risks.
About Western Union
The Western Union Company (NYSE: WU) is a leader in global
payment services. Together with its Vigo, Orlandi Valuta, Pago
Facil and Western Union Business Solutions branded payment
services, Western Union provides consumers and businesses with
fast, reliable and convenient ways to send and receive money around
the world, to send payments and to purchase money orders. As of
June 30, 2012, the Western Union, Vigo and Orlandi Valuta branded
services were offered through a combined network of approximately
510,000 agent locations in 200 countries and territories. In 2011,
The Western Union Company completed 226 million
consumer-to-consumer transactions worldwide, moving $81 billion of
principal between consumers, and 425 million business payments. For
more information, visit www.westernunion.com.
WU-F, WU-G
THE WESTERN UNION COMPANYKEY
STATISTICS(Unaudited)
Notes* 2Q11 3Q11
4Q11 FY2011 1Q12 2Q12 YTD 2Q12
Consolidated Metrics Consolidated revenues (GAAP) -
YoY % change 7 % 6 % 5 % 6 % 9 % 4 % 6 % Consolidated revenues
(constant currency) - YoY % change a 5 % 5 % 6 % 5 % 9 % 7 % 8 %
Agent locations 470,000 485,000 485,000 485,000 495,000 510,000
510,000
Consumer-to-Consumer (C2C) Segment Revenues
(GAAP) - YoY % change 8 % 6 % 3 % 5 % 4 % 0 % 2 % Revenues
(constant currency) - YoY % change e 5 % 4 % 3 % 4 % 5 % 3 % 4 %
Operating margin 28.6 % 29.0 % 28.0 % 28.6 % 27.7 % 28.5 % 28.1 %
Transactions (in millions) 56.31 57.64 59.00 225.79 56.37
58.49 114.86 Transactions - YoY% change 6 % 5 % 5 % 6 % 7 % 4 % 5 %
Total principal ($ - billions) 20.6 21.1 20.6 81.3 19.5 20.1
39.6 Principal per transaction ($ - dollars) 365 366 349 360 346
344 345 Principal per transaction - YoY % change 4 % 3 %
(2)
%
1 %
(4)
%
(6)
%
(5)
%
Principal per transaction (constant currency) - YoY % change f 0 %
0 %
(1)
%
0 %
(3)
%
(3)
%
(3)
%
Cross-border principal ($ - billions) 18.6 19.0 18.5 73.2
17.5 18.2 35.7 Cross-border principal - YoY % change 10 % 8 % 2 % 7
% 2 %
(2)
%
0 % Cross-border principal (constant currency) - YoY % change g 6 %
5 % 3 % 5 % 3 % 1 % 2 % Europe and CIS region revenues - YoY
% change t, u 8 % 3 %
(1)
%
3 % 0 %
(8)
%
(4)
%
Europe and CIS region transactions - YoY % change t, u 3 % 0 %
(1)
%
1 % 1 %
(2)
%
(1)
%
North America region revenues - YoY % change t, v 3 % 5 % 2
% 3 % 5 % 0 % 2 % North America region transactions - YoY % change
t, v 7 % 6 % 5 % 7 % 6 % 2 % 4 % Middle East and Africa
region revenues - YoY % change t, w 6 % 5 % 2 % 4 % 6 % 3 % 5 %
Middle East and Africa region transactions - YoY % change t, w 3 %
3 % 4 % 3 % 9 % 9 % 9 % APAC region revenues - YoY % change
t, x 14 % 10 % 6 % 10 % 7 % 4 % 5 % APAC region transactions - YoY
% change t, x 10 % 7 % 9 % 9 % 6 % 5 % 6 % LACA region
revenues - YoY % change t, y 8 % 5 % 3 % 7 % 2 % 5 % 3 % LACA
region transactions - YoY % change t, y 5 % 5 % 5 % 5 % 8 % 5 % 6 %
westernunion.com region revenues - YoY % change t, z 40 % 43
% 39 % 37 % 39 % 23 % 30 % westernunion.com region transactions -
YoY % change t, z 29 % 33 % 35 % 29 % 41 % 35 % 38 %
International revenues (GAAP) - YoY % change aa 8 % 5 % 2 % 5 % 4 %
0 % 2 % International revenues (constant currency) - YoY % change
h, aa 5 % 4 % 3 % 4 % 4 % 3 % 4 % International transactions - YoY
% change aa 5 % 4 % 5 % 5 % 6 % 4 % 5 % International principal per
transaction ($ - dollars) aa 399 401 381 393 378 378 378
International principal per transaction - YoY % change aa 6 % 4 %
(1)
%
3 %
(3)
%
(5)
%
(4)
%
International principal per transaction (constant currency) - YoY %
change i, aa 1 % 1 %
(1)
%
1 %
(2)
%
(2)
%
(2)
%
International revenues excl. US origination (GAAP) - YoY %
change bb 10 % 6 % 2 % 6 % 4 %
(1)
%
2 % International revenues excl. US origination (constant currency)
- YoY % change j, bb 5 % 4 % 3 % 4 % 4 % 3 % 4 % International
transactions excl. US origination - YoY % change bb 6 % 5 % 5 % 6 %
7 % 5 % 6 % Electronic channels revenues - YoY % change cc
39 % 40 % 36 % 35 % 38 % 26 % 32 %
Consumer-to-Business
(C2B) Segment Revenues (GAAP) - YoY % change 2 % 2 % 2 % 1 % 1
%
(3)
%
(1)
%
Revenues (constant currency) - YoY % change k 2 % 3 % 3 % 2 % 3 % 0
% 1 % Operating margin 24.6 % 21.0 % 27.3 % 23.9 % 26.5 % 22.4 %
24.5 %
Business Solutions (B2B) Segment Revenues
(GAAP) - YoY % change 15 % 31 % ** ** ** ** ** Revenues (constant
currency) - YoY % change l 7 % 22 % ** ** ** ** ** Operating margin
(5.7)
%
(4.8)
%
(2.8)
%
(6.0)
%
(17.0)
%
(15.7)
%
(16.3)
%
% of Total Company Revenue Consumer-to-Consumer
segment revenues 84 % 84 % 83 % 84 % 81 % 81 % 81 % Europe and CIS
region revenues t, u 24 % 24 % 23 % 24 % 22 % 22 % 22 % North
America region revenues t, v 22 % 22 % 21 % 22 % 21 % 21 % 21 %
Middle East and Africa region revenues t, w 15 % 16 % 16 % 15 % 15
% 15 % 15 % APAC region revenues t, x 12 % 12 % 12 % 12 % 12 % 12 %
12 % LACA region revenues t, y 9 % 8 % 9 % 9 % 9 % 9 % 9 %
westernunion.com region revenues t, z 2 % 2 % 2 % 2 % 2 % 2 % 2 %
Consumer-to-Business segment revenues 12 % 12 % 11 % 11 % 11 % 11 %
11 % Business Solutions segment revenues 2 % 2 % 5 % 3 % 6 % 6 % 6
% Electronic channels revenues cc 3 % 3 % 3 % 3 % 3 % 3 % 3 %
Prepaid revenues dd 1 % 1 % 1 % 1 % 1 % 1 % 1 % Marketing expense
ee 4.1 % 4.5 % 4.4 % 4.1 % 3.8 % 3.7 % 3.7 % * See page 15
of the press release for the applicable Note references and the
reconciliation of non-GAAP financial measures. **
Calculation of growth percentage is not meaningful due to the
impact of the TGBP acquisition in November 2011.
THE
WESTERN UNION COMPANY CONDENSED CONSOLIDATED STATEMENTS OF
INCOME (Unaudited) (in millions, except per share
amounts) Three Months Ended
June 30,
Six Months Ended
June 30,
2012 2011 Change 2012 2011 Change
Revenues: Transaction fees $ 1,059.4 $ 1,057.0 - $ 2,100.3 $
2,055.0 2 % Foreign exchange revenues 334.6 279.2 20 % 657.2 535.3
23 % Other revenues 31.1 30.1 3 %
61.0 59.0 3 % Total revenues 1,425.1
1,366.3 4 % 2,818.5 2,649.3 6 %
Expenses: Cost of
services 797.5 764.2 4 % 1,580.5 1,509.6 5 % Selling, general and
administrative 281.7 251.4 12 %
559.6 476.1 18 % Total expenses (a)
1,079.2 1,015.6 6 % 2,140.1
1,985.7 8 % Operating income 345.9 350.7
(1)
%
678.4 663.6 2 %
Other income/(expense): Interest
income 1.2 1.3
(8)
%
2.7 2.5 8 % Interest expense (45.1 ) (44.2 ) 2 % (89.5 ) (87.6 ) 2
% Derivative gains/(losses), net (0.7 ) (1.3 )
(46)
%
0.9 0.6 50 % Other income, net 8.8 26.9
(67)
%
7.7 29.0
(73)
%
Total other expense, net (35.8 ) (17.3 )
(b
)
(78.2 ) (55.5 ) 41 % Income before income
taxes 310.1 333.4
(7)
%
600.2 608.1
(1)
%
Provision for income taxes 38.9 70.2
(45)
%
81.7 134.7
(39)
%
Net income $ 271.2 $ 263.2 3 % $ 518.5
$ 473.4 10 %
Earnings per share: Basic $ 0.44
$ 0.42 5 % $ 0.84 $ 0.74 14 % Diluted $ 0.44 $ 0.41 7 % $ 0.84 $
0.74 14 %
Weighted-average shares outstanding: Basic
610.9 631.1 615.0 639.0 Diluted 613.1 635.8 617.5 644.0
Cash dividends declared per common share: $ 0.10 $ 0.08 25 %
$ 0.20 $ 0.15 33 % _______ (a) Total expenses includes TGBP
integration expense of $3.4 million and $3.6 million in cost of
services and $11.1 million and $17.3 million in selling, general
and administrative for the three and six months ended June 30,
2012, respectively, and restructuring and related expenses of $0.5
million and $7.4 million in cost of services and $8.4 million and
$25.5 million in selling, general and administrative for the three
and six months ended June 30, 2011, respectively. (b) Calculation
not meaningful.
THE WESTERN UNION COMPANYCONDENSED
CONSOLIDATED BALANCE SHEETS(Unaudited)(in millions,
except per share amounts) June 30, December 31,
2012 2011
Assets Cash and cash equivalents (a) $ 1,403.8 $
1,370.9 Settlement assets 3,103.3 3,091.2 Property and equipment,
net of accumulated depreciation of $391.0 and $429.7, respectively
196.4 198.1 Goodwill 3,174.1 3,198.9 Other intangible assets, net
of accumulated amortization of $473.2 and $462.5, respectively
861.6 847.4 Other assets 426.8 363.4
Total assets $ 9,166.0 $ 9,069.9
Liabilities and Stockholders' Equity Liabilities: Accounts
payable and accrued liabilities $ 496.0 $ 535.0 Settlement
obligations 3,103.3 3,091.2 Income taxes payable 189.6 302.4
Deferred tax liability, net 388.8 389.7 Borrowings 3,673.1 3,583.2
Other liabilities 262.4 273.6 Total
liabilities 8,113.2 8,175.1 Stockholders' equity: Preferred
stock, $1.00 par value; 10 shares authorized; no shares issued - -
Common stock, $0.01 par value; 2,000 shares authorized; 604.5
shares and 619.4 shares issued and outstanding as of June 30, 2012
and December 31, 2011, respectively 6.0 6.2 Capital surplus 311.0
247.1 Retained earnings 842.8 760.0 Accumulated other comprehensive
loss (107.0 ) (118.5 ) Total stockholders' equity
1,052.8 894.8 Total liabilities and
stockholders' equity $ 9,166.0 $ 9,069.9
_______ (a) Approximately $710 million was held by entities outside
of the United States as of June 30, 2012.
THE WESTERN
UNION COMPANY CONDENSED CONSOLIDATED STATEMENTS OF CASH
FLOWS (Unaudited) (in millions) Six
Months Ended
June 30,
2012 2011
Cash Flows From Operating Activities Net
income $ 518.5 $ 473.4 Adjustments to reconcile net income to net
cash provided by operating activities: Depreciation 31.3 30.4
Amortization 91.6 60.9 Gain on revaluation of equity interest -
(29.4 ) Other non-cash items, net 1.2 3.6 Increase/(decrease) in
cash, excluding the effects of acquisitions, resulting from changes
in: Other assets (19.8 ) (3.4 ) Accounts payable and accrued
liabilities (45.3 ) (48.4 ) Income taxes payable (a) (111.1 ) 42.4
Other liabilities (20.7 ) (23.2 ) Net cash provided
by operating activities 445.7 506.3
Cash Flows From
Investing Activities Capitalization of contract costs (78.3 )
(44.8 ) Capitalization of purchased and developed software (15.6 )
(4.0 ) Purchases of property and equipment (27.4 ) (26.6 )
Acquisition of businesses (4.8 ) (135.7 ) Net cash
used in investing activities (126.1 ) (211.1 )
Cash Flows
From Financing Activities Proceeds from exercise of options
45.0 91.6 Cash dividends paid (122.3 ) (95.0 ) Common stock
repurchased (302.4 ) (658.5 ) Net proceeds from commercial paper
93.0 - Net proceeds from issuance of borrowings -
299.0 Net cash used in financing activities
(286.7 ) (362.9 ) Net change in cash and cash
equivalents 32.9 (67.7 ) Cash and cash equivalents at beginning of
period 1,370.9 2,157.4 Cash and cash
equivalents at end of period $ 1,403.8 $ 2,089.7
_______
(a) The Company made tax payments of
approximately $100 million through the second quarter of 2012 due
to the December 2011 agreement with the United States Internal
Revenue Services ("IRS") resolving substantially all of the issues
related to the restructuring of our international operations in
2003 ("IRS Agreement").
THE WESTERN UNION COMPANYSUMMARY SEGMENT
DATA(Unaudited)(in millions)
Three Months Ended
June 30,
Six Months Ended
June 30,
2012 2011 Change 2012 2011 Change Revenues: Consumer-to-Consumer
(C2C): Transaction fees $ 893.6 $ 898.0 - $ 1,765.6 $ 1,737.8 2 %
Foreign exchange revenues 248.9 245.4 1 % 488.3 472.8 3 % Other
revenues 12.5 11.7 7 % 25.7
22.6 14 % Total Consumer-to-Consumer: 1,155.0
1,155.1 - 2,279.6 2,233.2 2 % Consumer-to-Business (C2B):
Transaction fees $ 142.1 $ 144.1
(1)
%
$ 289.8 $ 288.8 - Foreign exchange revenues 0.9 2.3
(61)
%
1.7 3.2
(47)
%
Other revenues 6.4 7.1
(10)
%
13.0 14.7
(12)
%
Total Consumer-to-Business: 149.4 153.5
(3)
%
304.5 306.7
(1)
%
Business Solutions (B2B) (a): Transaction fees $ 10.0 $ 1.1
(d
)
$ 16.5 $ 2.0
(d
)
Foreign exchange revenues 82.5 30.1
(d
)
162.6 56.9
(d
)
Other revenues - 0.2
(d
)
0.3 0.4
(d
)
Total Business Solutions: 92.5 31.4
(d
)
179.4 59.3
(d
)
Other: Total revenues: $ 28.2 $ 26.3 7 % $ 55.0 $ 50.1 10 %
Total consolidated revenues $ 1,425.1
$ 1,366.3 4 % $ 2,818.5 $ 2,649.3 6 %
Operating income/(loss): Consumer-to-Consumer $ 328.9 $
329.8 - $ 640.2 $ 638.4 - Consumer-to-Business 33.5 37.7
(11)
%
74.6 72.3 3 % Business Solutions (b) (14.5 ) (1.8 )
(d
)
(29.3 ) (6.1 )
(d
)
Other (2.0 ) (6.1 )
(67)
%
(7.1 ) (8.1 )
(12)
%
Total segment operating income 345.9 359.6
(4)
%
678.4 696.5
(3)
%
Restructuring and related expenses (c) - (8.9
)
(d
)
- (32.9 )
(d
)
Total consolidated operating income $ 345.9 $ 350.7
(1)
%
$ 678.4 $ 663.6 2 % Operating income
margin: Consumer-to-Consumer 28.5 % 28.6 %
(0.1)
%
28.1 % 28.6 %
(0.5)
%
Consumer-to-Business 22.4 % 24.6 %
(2.2)
%
24.5 % 23.6 % 0.9 % Business Solutions
(15.7)
%
(5.7)
%
(10.0)
%
(16.3)
%
(10.3)
%
(6.0)
%
Total consolidated operating income margin 24.3 % 25.7 %
(1.4)
%
24.1 % 25.0 %
(0.9)
%
Depreciation and amortization: Consumer-to-Consumer $ 37.9 $
35.1 8 % $ 80.7 $ 68.3 18 % Consumer-to-Business 3.8 5.1
(25)
%
7.7 10.3
(25)
%
Business Solutions 15.4 4.6
(d
)
30.6 9.0
(d
)
Other 1.9 1.1 73 % 3.9
2.4 63 % Total segment depreciation and amortization
59.0 45.9 29 % 122.9 90.0 37 % Restructuring and related expenses
(c) - 0.7
(d
)
- 1.3
(d
)
Total consolidated depreciation and amortization $ 59.0 $
46.6 27 % $ 122.9 $ 91.3 35 % _______ (a) The
significant change in Business Solutions revenues for the three and
six months ended June 30, 2012 was primarily the result of the
acquisition of Travelex Global Business Payments on November 7,
2011. (b) Business Solutions operating loss includes $14.5 million
and $20.9 million related to TGBP integration expense for the three
and six months ended June 30, 2012, respectively. (c) Restructuring
and related expenses are excluded from the measurement of segment
operating profit provided to the Chief Operating Decision Maker for
purposes of assessing segment performance and decision making with
respect to resource allocation. (d) Calculation not meaningful.
THE WESTERN UNION COMPANY 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 our operating results to assist management, investors,
analysts, and others in understanding our financial results and to
better analyze trends in our 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 our operations that, when viewed with our GAAP results
and the reconciliation to the corresponding GAAP financial measure,
provide a more complete understanding of our business. Users of the
financial statements are encouraged to review our 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. All adjusted year-over-year
changes were calculated using prior year reported amounts, unless
indicated otherwise.
2Q11 3Q11
4Q11 FY2011 1Q12 2Q12 YTD 2Q12
Consolidated Metrics (a) Revenues, as reported (GAAP) $
1,366.3 $ 1,410.8 $ 1,431.3 $ 5,491.4 $ 1,393.4 $ 1,425.1 $ 2,818.5
Foreign currency translation impact (m) (32.5 ) (18.2
) 10.4 (38.0 ) 8.1 34.6
42.7 Revenues, constant currency adjusted $
1,333.8 $ 1,392.6 $ 1,441.7 $ 5,453.4 $
1,401.5 $ 1,459.7 $ 2,861.2 Prior year
revenues, as reported (GAAP) $ 1,273.4 $ 1,329.6 $ 1,357.0 $
5,192.7 $ 1,283.0 $ 1,366.3 $ 2,649.3 Pro forma prior year
revenues, TGBP adjusted (n) N/A N/A N/A N/A $ 1,338.0 $ 1,426.0 $
2,764.0 Revenue change, as reported (GAAP) 7 % 6 % 5 % 6 % 9 % 4 %
6 % Revenue change, constant currency adjusted 5 % 5 % 6 % 5 % 9 %
7 % 8 % Pro forma revenue change, TGBP adjusted N/A N/A N/A N/A 4 %
0 % 2 % Pro forma revenue change, TGBP and constant currency
adjusted (m) N/A N/A N/A N/A 5 % 2 % 4 % (b) Operating
income, as reported (GAAP) $ 350.7 $ 363.0 $ 358.4 $ 1,385.0 $
332.5 $ 345.9 $ 678.4 Reversal of restructuring and related
expenses (o) 8.9 13.9 - 46.8 N/A N/A N/A Reversal of TGBP
integration expense (p) N/A N/A
4.8 4.8 6.4 14.5
20.9 Operating income, excl. restructuring and TGBP
integration expense $ 359.6 $ 376.9 $ 363.2 $
1,436.6 $ 338.9 $ 360.4 $ 699.3
Operating income margin, as reported (GAAP) 25.7 % 25.7 % 25.0 %
25.2 % 23.9 % 24.3 % 24.1 % Operating income margin, excl.
restructuring 26.3 % 26.7 % 25.0 % 26.1 % 23.9 % 24.3 % 24.1 %
Operating income margin, excl. restructuring and TGBP integration
expense N/A N/A 25.4 % 26.2 % 24.3 % 25.3 % 24.8 % (c)
Operating income, as reported (GAAP) $ 350.7 $ 363.0 $ 358.4 $
1,385.0 $ 332.5 $ 345.9 $ 678.4 Reversal of depreciation and
amortization (q) 46.6 45.9 55.4
192.6 63.9 59.0
122.9 EBITDA (q) $ 397.3 $ 408.9 $ 413.8 $ 1,577.6 $
396.4 $ 404.9 $ 801.3 Reversal of restructuring and related
expenses (o) 8.2 13.9 - 45.5 N/A N/A N/A Reversal of TGBP
integration expense excluding trademark amortization (p) N/A
N/A 4.8 4.8
6.4 13.0 19.4 EBITDA, excl.
restructuring and TGBP integration expense $ 405.5 $ 422.8
$ 418.6 $ 1,627.9 $ 402.8 $ 417.9
$ 820.7 EBITDA margin 29.1 % 29.0 % 28.9 % 28.7 %
28.4 % 28.4 % 28.4 % EBITDA margin, excl. restructuring and TGBP
integration expense 29.7 % 30.0 % 29.2 % 29.6 % 28.9 % 29.3 % 29.1
% (d) Net income, as reported (GAAP) $ 263.2 $ 239.7 $ 452.3
$ 1,165.4 $ 247.3 $ 271.2 $ 518.5 Reversal of restructuring and
related expenses, net of income tax benefit (o) 5.9
9.7 - 32.0 N/A
N/A N/A Net income,
restructuring adjusted $ 269.1 $ 249.4 $ 452.3 $ 1,197.4 $ 247.3 $
271.2 $ 518.5 Reversal of IRS Agreement tax provision benefit (r)
N/A N/A (204.7 ) (204.7 )
N/A N/A N/A Net income,
restructuring and IRS Agreement adjusted $ 269.1 $ 249.4 $ 247.6 $
992.7 $ 247.3 $ 271.2 $ 518.5 Reversal of TGBP integration expense,
net of income tax benefit (p) N/A N/A
3.1 3.1 4.3 10.2
14.5 Net income, restructuring, IRS Agreement
and TGBP integration expense adjusted $ 269.1 $ 249.4
$ 250.7 $ 995.8 $ 251.6 $ 281.4 $ 533.0
Diluted earnings per share ("EPS"), as reported (GAAP) ($ -
dollars) $ 0.41 $ 0.38 $ 0.73 $ 1.84 $ 0.40 $ 0.44 $ 0.84 Impact
from restructuring and related expenses, net of income tax benefit
(o) ($ - dollars) 0.01 0.02 -
0.05 N/A N/A
N/A Diluted EPS, restructuring adjusted ($ - dollars)
$ 0.42 $ 0.40 $ 0.73 $ 1.89 $ 0.40 $ 0.44 $ 0.84 Impact from IRS
Agreement tax provision benefit (r) ($ - dollars) N/A
N/A (0.33 ) (0.32 ) N/A
N/A N/A Diluted EPS, restructuring and
IRS Agreement adjusted ($ - dollars) $ 0.42 $ 0.40 $ 0.40 $ 1.57 $
0.40 $ 0.44 $ 0.84 Impact from TGBP integration expense, net of
income tax benefit (p) ($ - dollars) N/A N/A
- - - 0.02
0.02 Diluted EPS, restructuring, IRS Agreement
and TGBP integration expense adjusted ($ - dollars) $ 0.42 $
0.40 $ 0.40 $ 1.57 $ 0.40 $ 0.46
$ 0.86 Diluted weighted-average shares outstanding 635.8
627.1 621.7 634.2 621.9 613.1 617.5
Consumer-to-Consumer
Segment (e) Revenues, as reported (GAAP) $ 1,155.1 $ 1,193.3 $
1,181.9 $ 4,608.4 $ 1,124.6 $ 1,155.0 $ 2,279.6 Foreign currency
translation impact (m) (31.4 ) (17.9 ) 8.0
(39.1 ) 5.2 30.1
35.3 Revenues, constant currency adjusted $ 1,123.7 $
1,175.4 $ 1,189.9 $ 4,569.3 $ 1,129.8 $
1,185.1 $ 2,314.9 Prior year revenues, as reported
(GAAP) $ 1,073.1 $ 1,128.3 $ 1,151.8 $ 4,383.4 $ 1,078.1 $ 1,155.1
$ 2,233.2 Revenue change, as reported (GAAP) 8 % 6 % 3 % 5 % 4 % 0
% 2 % Revenue change, constant currency adjusted 5 % 4 % 3 % 4 % 5
% 3 % 4 % (f) Principal per transaction, as reported ($ -
dollars) $ 365 $ 366 $ 349 $ 360 $ 346 $ 344 $ 345 Foreign currency
translation impact (m) ($ - dollars) (14 ) (11 )
2 (6 ) 3 11
7 Principal per transaction, constant currency adjusted ($ -
dollars) $ 351 $ 355 $ 351 $ 354 $ 349
$ 355 $ 352 Prior year principal per
transaction, as reported ($ - dollars) $ 351 $ 355 $ 356 $ 355 $
360 $ 365 $ 363 Principal per transaction change, as reported 4 % 3
%
(2)
%
1 %
(4)
%
(6)
%
(5)
%
Principal per transaction change, constant currency adjusted 0 % 0
%
(1)
%
0 %
(3)
%
(3)
%
(3)
%
(g) Cross-border principal, as reported ($ - billions) $
18.6 $ 19.0 $ 18.5 $ 73.2 $ 17.5 $ 18.2 $ 35.7 Foreign currency
translation impact (m) ($ - billions) (0.8 ) (0.6 )
0.2 (1.2 ) 0.2 0.6
0.8 Cross-border principal, constant currency
adjusted ($ - billions) $ 17.8 $ 18.4 $ 18.7 $
72.0 $ 17.7 $ 18.8 $ 36.5 Prior year
cross-border principal, as reported ($ - billions) $ 16.8 $ 17.6 $
18.1 $ 68.6 $ 17.1 $ 18.6 $ 35.7 Cross-border principal change, as
reported 10 % 8 % 2 % 7 % 2 %
(2)
%
0 % Cross-border principal change, constant currency adjusted 6 % 5
% 3 % 5 % 3 % 1 % 2 % (h) International revenues, as
reported (GAAP) $ 962.9 $ 995.7 $ 995.5 $ 3,855.8 $ 936.9 $ 964.3 $
1,901.2 Foreign currency translation impact (m) (30.7 )
(17.4 ) 7.5 (38.0 ) 4.9
29.2 34.1 International revenues,
constant currency adjusted $ 932.2 $ 978.3 $ 1,003.0
$ 3,817.8 $ 941.8 $ 993.5 $ 1,935.3
Prior year international revenues, as reported (GAAP) $
890.8 $ 944.0 $ 972.4 $ 3,669.2 $ 901.7 $ 962.9 $ 1,864.6
International revenue change, as reported (GAAP) 8 % 5 % 2 % 5 % 4
% 0 % 2 % International revenue change, constant currency adjusted
5 % 4 % 3 % 4 % 4 % 3 % 4 % (i) International principal per
transaction, as reported ($ - dollars) $ 399 $ 401 $ 381 $ 393 $
378 $ 378 $ 378 Foreign currency translation impact (m) ($ -
dollars) (18 ) (13 ) 3 (8 )
4 14 9 International
principal per transaction, constant currency adjusted ($ - dollars)
$ 381 $ 388 $ 384 $ 385 $ 382 $
392 $ 387 Prior year international principal per
transaction, as reported ($ - dollars) $ 376 $ 384 $ 386 $ 382 $
390 $ 399 $ 394 International principal per transaction change, as
reported 6 % 4 %
(1)
%
3 %
(3)
%
(5)
%
(4)
%
International principal per transaction change, constant currency
adjusted 1 % 1 %
(1)
%
1 %
(2)
%
(2)
%
(2)
%
(j) International excl. US origination revenues, as reported
(GAAP) $ 788.6 $ 822.2 $ 815.5 $ 3,158.5 $ 759.6 $ 784.1 $ 1,543.7
Foreign currency translation impact (m) (30.7 ) (17.4
) 7.5 (38.0 ) 4.9 29.2
34.1 International excl. US origination
revenues, constant currency adjusted $ 757.9 $ 804.8
$ 823.0 $ 3,120.5 $ 764.5 $ 813.3 $
1,577.8 Prior year international excl. US origination
revenues, as reported (GAAP) $ 719.2 $ 774.3 $ 797.6 $ 2,990.9 $
732.2 $ 788.6 $ 1,520.8 International excl. US origination revenues
change, as reported (GAAP) 10 % 6 % 2 % 6 % 4 %
(1)
%
2 % International excl. US origination revenues change, constant
currency adjusted 5 % 4 % 3 % 4 % 4 % 3 % 4 %
Consumer-to-Business Segment (k) Revenues, as reported
(GAAP) $ 153.5 $ 155.3 $ 153.9 $ 615.9 $ 155.1 $ 149.4 $ 304.5
Foreign currency translation impact (m) 1.1
1.5 2.5 6.4 2.9
3.5 6.4 Revenues, constant currency
adjusted $ 154.6 $ 156.8 $ 156.4 $ 622.3
$ 158.0 $ 152.9 $ 310.9 Prior year
revenues, as reported (GAAP) N/A N/A N/A $ 610.7 $ 153.2 $ 153.5 $
306.7 Revenue change, as reported (GAAP) 2 % 2 % 2 % 1 % 1 %
(3)
%
(1)
%
Revenue change, constant currency adjusted 2 % 3 % 3 % 2 % 3 % 0 %
1 %
Business Solutions Segment (l) Revenues, as
reported (GAAP) $ 31.4 $ 33.6 $ 68.2 $ 161.1 $ 86.9 $ 92.5 $ 179.4
Foreign currency translation impact (m) (2.2 ) (2.1 )
(0.1 ) (5.7 ) (0.1 ) 0.9
0.8 Revenues, constant currency adjusted $ 29.2 $
31.5 $ 68.1 $ 155.4 $ 86.8 $ 93.4
$ 180.2 Prior year revenues, as reported (GAAP) N/A
N/A N/A $ 106.7 $ 27.9 $ 31.4 $ 59.3 Pro forma prior year revenues,
TGBP adjusted (n) N/A N/A N/A N/A $ 82.9 $ 91.1 $ 174.0 Revenue
change, as reported (GAAP) 15 % 31 % ** ** ** ** ** Revenue change,
constant currency adjusted 7 % 22 % ** ** ** ** ** Pro forma
revenue change, TGBP adjusted N/A N/A N/A N/A 5 % 2 % 3 % Pro forma
revenue change, TGBP and constant currency adjusted (m) N/A N/A N/A
N/A 4 % 4 % 4 %
2012 Outlook Metrics Range
Revenue change (GAAP) 4 % 6 % Foreign currency translation impact
(s) 2 % 2 % Revenue change, constant currency
adjusted 6 % 8 % Operating income
margin (GAAP) 24.5 % TGBP integration expense impact (p) 1.0
% Operating income margin, TGBP integration expense adjusted
25.5 % Operating income margin (GAAP) 24.5 %
Depreciation and amortization impact (q) 4.5 % TGBP integration
expense impact (p) 1.0 % EBITDA margin, TGBP integration
expense adjusted 30.0 %
Range EPS guidance
(GAAP) ($ - dollars) $ 1.68 $ 1.72 TGBP integration expense impact,
net of tax benefit (p) ($ - dollars) 0.05 0.05
EPS guidance, TGBP integration expense adjusted ($ -
dollars) $ 1.73 $ 1.77
Range Operating
cash flow (GAAP) ($ - billions) $ 1.1 $ 1.2 Payments on IRS
Agreement (r) ($ - billions) 0.1 0.1
Operating cash flow, IRS Agreement adjusted ($ - billions) $ 1.2
$ 1.3
Non-GAAP related
notes:
(m) Represents the impact from the fluctuation in exchange
rates between all foreign currency denominated amounts and the
United States dollar. Constant currency results exclude any benefit
or loss caused by foreign exchange fluctuations between foreign
currencies and the United States dollar, net of foreign currency
hedges, which would not have occurred if there had been a constant
exchange rate. In pro forma calculations, also includes the
currency impact of $(1.6) million and $(1.3) million for the three
and six months ended June 30, 2012 associated with the acquisition
of Travelex Global Business Payments ("TGBP"). (n)
Represents the pro forma incremental impact of TGBP on Consolidated
and Business Solutions segment revenues. Pro forma revenues
presents the results of operations of the Company and its Business
Solutions segment as they may have appeared had the acquisition of
TGBP occurred as of January 1, 2011. The pro forma information is
provided for illustrative purposes only and does not purport to
present what the actual results of operations would have been had
the acquisition actually occurred on the date indicated. The
results of operations for TGBP have been included in Consolidated
and Business Solutions segment revenues from November 7, 2011, the
date of acquisition. (o) Restructuring and related expenses
consist of direct and incremental expenses including the impact
from fluctuations in exchange rates associated with restructuring
and related activities, consisting of severance, outplacement and
other related benefits; facility closure and migration of the
Company's IT infrastructure; and other expenses related to the
relocation of various operations to new or existing Company
facilities and third-party providers, including hiring, training,
relocation, travel, and professional fees. Also included in the
facility closure expenses are non-cash expenses related to fixed
asset and leasehold improvement write-offs and the acceleration of
depreciation and amortization. Restructuring and related expenses
were not allocated to the segments. (p) TGBP integration
expense consists primarily of severance and other benefits,
retention, direct and incremental expense consisting of facility
relocation, consolidation and closures; IT systems integration;
amortization of a transitional trademark license; and other
expenses such as training, travel and professional fees.
Integration expense does not include costs related to the
completion of the TGBP acquisition. (q) Earnings before
Interest, Taxes, Depreciation and Amortization (EBITDA) results
from taking operating income and adjusting for depreciation and
amortization expenses. (r) Represents the impact from the
tax benefit in December 2011 due to the agreement with the IRS
resolving substantially all issues related to the restructuring of
our international operations in 2003 of $204.7 million. The Company
made tax payments of approximately $100 million through the second
quarter of 2012 and expects to pay the majority of the remaining
tax payments of approximately $90 million in 2013. (s)
Represents the estimated impact from the fluctuation in exchange
rates between all foreign currency denominated amounts and the
United States dollar. Constant currency results exclude any
estimated benefit or loss caused by foreign exchange fluctuations
between foreign currencies and the United States dollar, net of
foreign currency hedges, which would not have occurred if there had
been a constant exchange rate.
Other
notes:
(t) Geographic split is determined based upon the region
where the money transfer is initiated and the region where the
money transfer is paid. For transactions originated and paid in
different regions, the Company splits the transaction count and
revenue between the two regions, with each region receiving 50%.
For money transfers initiated and paid in the same region, 100% of
the revenue and transactions are attributed to that region. For
money transfers initiated through the Company’s websites
(“westernunion.com”), 100% of the revenue and transactions are
attributed to that business. (u) Represents the Europe and
the Commonwealth of Independent States ("CIS") region of our
Consumer-to-Consumer segment. (v) Represents the North
America region, including the United States, Mexico, and Canada, of
our Consumer-to-Consumer segment. (w) Represents the Middle
East and Africa region of our Consumer-to-Consumer segment.
(x) Represents the Asia Pacific ("APAC") region of our
Consumer-to-Consumer segment, including India, China, and South
Asia. (y) Represents the Latin America and the Caribbean
("LACA") region of our Consumer-to-Consumer segment. (z)
Represents transactions initiated on westernunion.com which are
primarily paid out at Western Union agent locations in the
respective regions. (aa) Represents transactions between and
within foreign countries (excluding Canada and Mexico),
transactions originated in the United States or Canada and paid
elsewhere, and transactions originated outside the United States or
Canada and paid in the United States or Canada. Excludes all
transactions between or within the United States and Canada and all
transactions to and from Mexico. (bb) Represents
transactions between and within foreign countries (excluding Canada
and Mexico). Excludes all transactions originated in the United
States and all transactions to and from Mexico. (cc)
Represents revenue generated from electronic channels, which
include westernunion.com, account based money transfer and mobile
money transfer (included in the various segments). (dd)
Represents revenue from prepaid services. This revenue is included
within Other. (ee) Marketing expense includes advertising,
events, costs to administer loyalty programs, and the cost of
employees dedicated to marketing activities.
Western Union (NYSE:WU)
과거 데이터 주식 차트
부터 6월(6) 2024 으로 7월(7) 2024
Western Union (NYSE:WU)
과거 데이터 주식 차트
부터 7월(7) 2023 으로 7월(7) 2024