[May 01, 2018] |
|
Western Union Reports First Quarter Results
The Western Union Company (NYSE: WU), a leader in cross border, cross
currency money movement, today reported first quarter financial results
and an updated outlook for 2018.
In the first quarter, the Company generated revenue of $1.4 billion,
which increased 7% compared to the prior year, or 5% on a constant
currency basis. The revenue increase was driven by strong growth in the
consumer money transfer business.
"We were able to sustain the growth momentum generated at the end of
2017," said president and chief executive officer Hikmet Ersek. "Our
digital money transfer business posted another impressive quarter, with
westernunion.com delivering a 23% revenue increase."
Ersek added, "The positive traction in our core business helps enable us
to pursue new customer segments in cross-border money movement."
GAAP earnings per share in the quarter was $0.46 compared to $0.33 in
the prior year period. On an adjusted basis, earnings per share was
$0.45 compared to $0.35 in the prior year period. The increase in
earnings per share was primarily due to revenue growth, a lower
effective tax rate and fewer shares outstanding compared to the first
quarter of 2017.
Executive Vice President and Chief Financial Officer Raj Agrawal stated,
"We delivered strong revenue growth, profitability, and cash flow in the
first quarter and are solidly on track to meet our full year targets."
Q1 Business Unit Highlights
-
Consumer-to-Consumer (C2C) revenues, which represented 79% of total
Company revenue in the quarter, increased 7%, or 5% constant currency,
while transactions grew 4%. Geographically, revenue growth was led by
sends originated in Latin America, North America, and Europe.
Westernunion.com
C2C revenues increased 23%, or 20% constant currency, on transaction
growth of 24% and represented 11% of total C2C revenue in the quarter.
-
Western Union Business Solutions revenues increased 3% or decreased 2%
on a constant currency basis. Business Solutions represented 7% of
total Company revenues in the quarter.
-
Other revenues, which primarily consist of bill payments businesses in
the U.S. and Argentina, increased 4%, or 10% on a constant currency
basis. Growth in the quarter was driven by the Pago Facil Argentina
walk-in and the Speedpay U.S. electronic bill payments businesses.
Other revenues represented 14% of total Company revenues in the
quarter.
Additional Q1 Financial Highlights
-
GAAP operating margin in the quarter was 19.1%, which compares to
18.4% in the prior year period, or 19.5% in the prior year on an
adjusted basis. The adjusted margin decrease was primarily due to
higher marketing spending and the negative impact of foreign exchange,
partially offset by operating leverage from revenue growth.
-
The effective tax rate in the quarter was 8.9% compared to 24.1% in
the prior year period. On an adjusted basis, the tax rate was 11.4%
compared to 24.8% in the prior year period. The prior year tax rate
reflected a negative impact from changes in the internal ownership
structure of certain of the Company's international subsidiaries,
while the current year rate benefited from certain discrete items.
-
Cash flow from operating activities for the quarter totaled $133
million, which included the impact of a $60 million payment for the
previously announced NYDFS settlement and approximately $20 million of
outflows for prior year WU Way expenses. The Company returned $88
million in dividends to shareholders in the first quarter.
Adjustment Items
Adjusted metrics for the 2018 first quarter exclude the impact of a $6
million tax benefit related to changes in estimates for the provisional
accounting for United States tax reform legislation enacted in December
2017 (the "Tax Act").
Adjusted metrics for the 2017 first quarter exclude $14 million of WU
Way related expenses and the associated tax benefits.
2018 Outlook
The Company affirmed its revenue, operating margin, and cash flow
outlooks for 2018, which were previously reported on February 13. The
GAAP earnings per share outlook was increased to reflect a more
favorable expected tax rate and the impact of the adjustment related to
the 2017 Tax Act. An adjusted EPS outlook that excludes the Tax Act
benefit has also now been provided.
Revenue
-
Low to mid-single digit increase in GAAP and constant currency revenue
Operating Profit Margin
-
Operating margin of approximately 20%
Tax Rate
-
GAAP effective tax rate of approximately 14% and adjusted tax rate of
approximately 15% (previously 15% to 16%)
Earnings per Share
-
GAAP EPS in a range of $1.81 to $1.91 and adjusted EPS in a range of
$1.80 to $1.90 (previously $1.78 to $1.90)
Cash Flow
-
Cash flow from operating activities of approximately $800 million,
which includes approximately $200 million of outflows for the
combination of anticipated final tax payments related to the agreement
with the U.S. Internal Revenue Service announced in 2011, the NYDFS
settlement payment, and WU Way payments related to 2017 expenses
Additional Statistics
Additional key statistics for the quarter and historical trends can be
found in the supplemental tables included with this press release.
Beginning April 1, 2017, the Company implemented a new segment structure
due to leadership and organizational structure changes. The new
structure shifted all businesses previously in the historical
Consumer-to-Business segment into Other.
Expenses related to the WU Way business transformation are not included
in operating segment results, as they are 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. Expenses associated with the WU Way
business transformation initiative were effectively complete as of
December 31, 2017.
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
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. Constant currency results assume
foreign revenues 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.
These non-GAAP financial measures include consolidated revenue change
constant currency adjusted; Consumer-to-Consumer segment revenue change
constant currency adjusted; Consumer-to-Consumer segment
westernunion.com revenue change constant currency adjusted; Business
Solutions segment revenue change constant currency adjusted; Other
revenue change constant currency adjusted; consolidated operating
income, excluding the impact from WU Way business transformation
expenses; consolidated operating margin, excluding WU Way business
transformation expenses; effective tax rate excluding WU Way business
transformation expenses and Tax Act; earnings per share, excluding WU
Way business transformation expenses and Tax Act; effective tax rate
outlook, excluding Tax Act; earnings per share outlook, excluding Tax
Act; and additional measures found in the supplemental tables included
with this press release. Although the expenses related to the WU Way
business transformation are specific to that initiative, the types of
expenses related to the WU Way business transformation are similar to
expenses that the Company has previously incurred and can reasonably be
expected to incur in the future.
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 http://ir.westernunion.com.
Investor and Analyst Conference Call and Slide
Presentation
The Company will host a conference call and webcast, including slides,
at 4:30 p.m. Eastern Time today. To listen to the conference call via
telephone, dial 1 (888) 317-6003 (U.S.) or +1 (412) 317-6061 (outside
the U.S.) ten minutes prior to the start of the call. The pass code is
4160099.
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 webcast replay will be available at http://ir.westernunion.com.
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 "may," "will,"
"should," "would," "could," and "might" are intended to identify such
forward-looking statements. Readers of this press release of 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, 2017. 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: changes in general economic conditions and economic conditions
in the regions and industries in which we operate, including global
economic and trade downturns, 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 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 electronic, 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 in the
United States and abroad which may adversely affect our business and
economic conditions as a whole, including interruptions of United States
or other government relations with countries in which we have or are
implementing significant business relationships with agents or clients;
deterioration in customer confidence in our business, or in money
transfer and payment service providers generally; our ability to adopt
new technology and develop and gain market acceptance of new and
enhanced services in response to changing industry and consumer needs or
trends; 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;
any material breach of security, including cybersecurity, or safeguards
of or interruptions in any of our systems or those of our vendors or
other third parties; cessation of or defects in various services
provided to us by third-party vendors; mergers, acquisitions and
integration of acquired businesses and technologies into our Company,
and the failure to realize anticipated financial benefits from these
acquisitions, and events requiring us to write down our goodwill;
failure to manage credit and fraud risks presented by our agents,
clients and consumers; failure to maintain our agent network and
business relationships under terms consistent with or more advantageous
to us than those currently in place, including due to increased costs or
loss of business as a result of increased compliance requirements or
difficulty for us, our agents or their subagents in establishing or
maintaining relationships with banks needed to conduct our services;
decisions to change our business mix; changes in tax laws, or their
interpretation, including with respect to United States tax reform
legislation enacted in December 2017 (the "Tax Act") and potential
related state income tax impacts, and unfavorable resolution of tax
contingencies; adverse rating actions by credit rating agencies; our
ability to realize the anticipated benefits from business
transformation, productivity and cost-savings, and other related
initiatives, which may include decisions to downsize or to transition
operating activities from one location to another, and to minimize any
disruptions in our workforce that may result from those initiatives; our
ability to protect our brands and our other intellectual property rights
and to defend ourselves against potential intellectual property
infringement claims; our ability to attract and retain qualified key
employees and to manage our workforce successfully; material changes in
the market value or liquidity of securities that we hold; restrictions
imposed by our debt obligations; (ii) events related to our regulatory
and litigation environment, such as: liabilities or loss of business
resulting from a failure by us, our agents or their subagents to comply
with laws and regulations and regulatory or judicial interpretations
thereof, including laws and regulations designed to protect consumers,
or detect and prevent money laundering, terrorist financing, fraud and
other illicit activity; increased costs or loss of business due to
regulatory initiatives and changes in laws, regulations and industry
practices and standards, including changes in interpretations in the
United States, the European Union and globally, affecting us, our agents
or their subagents, or the banks with which we or our agents maintain
bank accounts needed to provide our services, including related to
anti-money laundering regulations, anti-fraud measures, our licensing
arrangements, customer due diligence, agent and subagent due diligence,
registration and monitoring requirements, consumer protection
requirements, remittances, and immigration; liabilities, increased costs
or loss of business and unanticipated developments resulting from
governmental investigations and consent agreements with or enforcement
actions by regulators, including those associated with the settlement
agreements with the United States Department of Justice, certain United
States Attorney's Offices, the United States Federal Trade Commission,
the Financial Crimes Enforcement Network of the United States Department
of Treasury, and various state attorneys general (the "Joint Settlement
Agreements"), and those associated with the January 4, 2018 consent
order which resolved a matter with the New York State Department of
Financial Services (the "NYDFS Consent Order"); liabilities resulting
from litigation, including class-action lawsuits and similar matters,
and regulatory actions, including costs, expenses, settlements and
judgments; failure to comply with regulations and evolving industry
standards regarding consumer privacy and data use and security,
including with respect to the General Data Protection Regulation
("GDPR") approved by the European Union ("EU"); the ongoing impact on
our business from the Dodd-Frank Wall Street Reform and Consumer
Protection Act (the "Dodd-Frank Act"), as well as regulations issued
pursuant to it and the actions of the Consumer Financial Protection
Bureau and similar legislation and regulations enacted by other
governmental authorities in the United States and abroad related to
consumer protection; effects of unclaimed property laws or their
interpretation or the enforcement thereof; failure to maintain
sufficient amounts or types of regulatory capital or other restrictions
on the use of our working capital to meet the changing requirements of
our regulators worldwide; changes in accounting standards, rules and
interpretations or industry standards affecting our business; and (iii)
other events, such as: adverse tax 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 global leader in cross-border,
cross-currency money movement. Our omnichannel platform connects the
digital and physical worlds and makes it possible for consumers and
businesses to send and receive money and make payments with speed, ease,
and reliability. As of March 31, 2018, our network included over 550,000
retail agent locations offering Western Union, Vigo or Orlandi Valuta
branded services in more than 200 countries and territories, with the
capability to send money to billions of accounts. Additionally, westernunion.com,
our fastest growing channel in 2017, is available in more than 40
countries to move money around the world. In 2017, we moved over $300
billion in principal in nearly 130 currencies and processed 32
transactions every second across all our services. With our global
reach, Western Union moves money for better, connecting family, friends
and businesses to enable financial inclusion and support economic
growth. For more information, visit www.westernunion.com.
WU-G
THE WESTERN UNION COMPANY
|
KEY STATISTICS
|
(Unaudited)
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|
|
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|
|
|
|
|
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Notes*
|
|
1Q17
|
|
2Q17
|
|
3Q17
|
|
4Q17
|
|
FY2017
|
|
1Q18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated revenues (GAAP) - YoY % change
|
|
|
|
|
|
0
|
|
%
|
|
|
0
|
|
%
|
|
|
2
|
|
%
|
|
|
5
|
|
%
|
|
|
2
|
|
%
|
|
|
7
|
|
%
|
Consolidated revenues (constant currency) - YoY % change
|
|
|
a
|
|
|
3
|
|
%
|
|
|
2
|
|
%
|
|
|
3
|
|
%
|
|
|
4
|
|
%
|
|
|
3
|
|
%
|
|
|
5
|
|
%
|
Consolidated operating income/(loss) (GAAP) - YoY % change
|
|
|
|
|
|
(7
|
)
|
%
|
|
|
(18
|
)
|
%
|
|
|
(2
|
)
|
%
|
|
|
19
|
|
%
|
|
|
(2
|
)
|
%
|
|
|
10
|
|
%
|
Consolidated operating income (constant currency adjusted, excluding
Goodwill impairment, NYDFS Consent Order, Joint Settlement
Agreements and WU Way business transformation expenses) - YoY %
change
|
|
|
b
|
|
|
4
|
|
%
|
|
|
10
|
|
%
|
|
|
0
|
|
%
|
|
|
0
|
|
%
|
|
|
3
|
|
%
|
|
|
5
|
|
%
|
Consolidated operating margin (GAAP)
|
|
|
jj
|
|
|
18.4
|
|
%
|
|
|
15.6
|
|
%
|
|
|
19.4
|
|
%
|
|
|
(17.5
|
)
|
%
|
|
|
8.6
|
|
%
|
|
|
19.1
|
|
%
|
Consolidated operating margin (excluding Goodwill impairment, NYDFS
Consent Order, Joint Settlement Agreements and WU Way business
transformation expenses)
|
|
|
c
|
|
|
19.5
|
|
%
|
|
|
21.7
|
|
%
|
|
|
20.7
|
|
%
|
|
|
18.0
|
|
%
|
|
|
20.0
|
|
%
|
|
|
19.1
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer-to-Consumer (C2C) Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues (GAAP) - YoY % change
|
|
|
|
|
|
0
|
|
%
|
|
|
(1
|
)
|
%
|
|
|
1
|
|
%
|
|
|
5
|
|
%
|
|
|
1
|
|
%
|
|
|
7
|
|
%
|
Revenues (constant currency) - YoY % change
|
|
|
g
|
|
|
2
|
|
%
|
|
|
1
|
|
%
|
|
|
1
|
|
%
|
|
|
4
|
|
%
|
|
|
2
|
|
%
|
|
|
5
|
|
%
|
Operating margin (jj)
|
|
|
|
|
|
22.5
|
|
%
|
|
|
24.9
|
|
%
|
|
|
23.5
|
|
%
|
|
|
21.5
|
|
%
|
|
|
23.1
|
|
%
|
|
|
22.2
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions (in millions)
|
|
|
|
|
|
65.3
|
|
|
|
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69.9
|
|
|
|
|
69.2
|
|
|
|
|
71.4
|
|
|
|
|
275.8
|
|
|
|
|
67.8
|
|
|
Transactions - YoY % change
|
|
|
|
|
|
2
|
|
%
|
|
|
3
|
|
%
|
|
|
2
|
|
%
|
|
|
3
|
|
%
|
|
|
3
|
|
%
|
|
|
4
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total principal ($ - billions)
|
|
|
|
|
$
|
19.1
|
|
|
|
$
|
20.4
|
|
|
|
$
|
21.0
|
|
|
|
$
|
21.3
|
|
|
|
$
|
81.8
|
|
|
|
$
|
20.8
|
|
|
Principal per transaction ($ - dollars)
|
|
|
|
|
$
|
292
|
|
|
|
$
|
293
|
|
|
|
$
|
302
|
|
|
|
$
|
300
|
|
|
|
$
|
297
|
|
|
|
$
|
307
|
|
|
Principal per transaction - YoY % change
|
|
|
|
|
|
(2
|
)
|
%
|
|
|
(3
|
)
|
%
|
|
|
1
|
|
%
|
|
|
3
|
|
%
|
|
|
0
|
|
%
|
|
|
5
|
|
%
|
Principal per transaction (constant currency) - YoY % change
|
|
|
h
|
|
|
(1
|
)
|
%
|
|
|
(2
|
)
|
%
|
|
|
0
|
|
%
|
|
|
0
|
|
%
|
|
|
(1
|
)
|
%
|
|
|
2
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross-border principal ($ - billions)
|
|
|
|
|
$
|
17.3
|
|
|
|
$
|
18.7
|
|
|
|
$
|
19.0
|
|
|
|
$
|
19.5
|
|
|
|
$
|
74.5
|
|
|
|
$
|
18.9
|
|
|
Cross-border principal - YoY % change
|
|
|
|
|
|
1
|
|
%
|
|
|
1
|
|
%
|
|
|
4
|
|
%
|
|
|
6
|
|
%
|
|
|
3
|
|
%
|
|
|
9
|
|
%
|
Cross-border principal (constant currency) - YoY % change
|
|
|
i
|
|
|
2
|
|
%
|
|
|
2
|
|
%
|
|
|
2
|
|
%
|
|
|
4
|
|
%
|
|
|
2
|
|
%
|
|
|
5
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA region revenues (GAAP) - YoY % change
|
|
|
aa, bb
|
|
|
3
|
|
%
|
|
|
3
|
|
%
|
|
|
1
|
|
%
|
|
|
3
|
|
%
|
|
|
2
|
|
%
|
|
|
4
|
|
%
|
NA region revenues (constant currency) - YoY % change
|
|
|
j, aa, bb
|
|
|
4
|
|
%
|
|
|
3
|
|
%
|
|
|
1
|
|
%
|
|
|
3
|
|
%
|
|
|
3
|
|
%
|
|
|
4
|
|
%
|
NA region transactions - YoY % change
|
|
|
aa, bb
|
|
|
5
|
|
%
|
|
|
4
|
|
%
|
|
|
2
|
|
%
|
|
|
1
|
|
%
|
|
|
3
|
|
%
|
|
|
1
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EU & CIS region revenues (GAAP) - YoY % change
|
|
|
aa, cc
|
|
|
(1
|
)
|
%
|
|
|
(2
|
)
|
%
|
|
|
2
|
|
%
|
|
|
6
|
|
%
|
|
|
1
|
|
%
|
|
|
14
|
|
%
|
EU & CIS region revenues (constant currency) - YoY % change
|
|
|
k, aa, cc
|
|
|
4
|
|
%
|
|
|
2
|
|
%
|
|
|
1
|
|
%
|
|
|
2
|
|
%
|
|
|
2
|
|
%
|
|
|
5
|
|
%
|
EU & CIS region transactions - YoY % change
|
|
|
aa, cc
|
|
|
8
|
|
%
|
|
|
7
|
|
%
|
|
|
7
|
|
%
|
|
|
7
|
|
%
|
|
|
7
|
|
%
|
|
|
8
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEASA region revenues (GAAP) - YoY % change
|
|
|
aa, dd
|
|
|
(13
|
)
|
%
|
|
|
(12
|
)
|
%
|
|
|
(8
|
)
|
%
|
|
|
1
|
|
%
|
|
|
(8
|
)
|
%
|
|
|
0
|
|
%
|
MEASA region revenues (constant currency) - YoY % change
|
|
|
l, aa, dd
|
|
|
(10
|
)
|
%
|
|
|
(11
|
)
|
%
|
|
|
(8
|
)
|
%
|
|
|
0
|
|
%
|
|
|
(7
|
)
|
%
|
|
|
(1
|
)
|
%
|
MEASA region transactions - YoY % change
|
|
|
aa, dd
|
|
|
(15
|
)
|
%
|
|
|
(10
|
)
|
%
|
|
|
(11
|
)
|
%
|
|
|
(2
|
)
|
%
|
|
|
(10
|
)
|
%
|
|
|
(2
|
)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LACA region revenues (GAAP) - YoY % change
|
|
|
aa, ee
|
|
|
26
|
|
%
|
|
|
21
|
|
%
|
|
|
19
|
|
%
|
|
|
21
|
|
%
|
|
|
22
|
|
%
|
|
|
20
|
|
%
|
LACA region revenues (constant currency) - YoY % change
|
|
|
m, aa, ee
|
|
|
25
|
|
%
|
|
|
22
|
|
%
|
|
|
22
|
|
%
|
|
|
23
|
|
%
|
|
|
23
|
|
%
|
|
|
25
|
|
%
|
LACA region transactions - YoY % change
|
|
|
aa, ee
|
|
|
17
|
|
%
|
|
|
16
|
|
%
|
|
|
17
|
|
%
|
|
|
17
|
|
%
|
|
|
17
|
|
%
|
|
|
17
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APAC region revenues (GAAP) - YoY % change
|
|
|
aa, ff
|
|
|
(2
|
)
|
%
|
|
|
(4
|
)
|
%
|
|
|
(1
|
)
|
%
|
|
|
0
|
|
%
|
|
|
(2
|
)
|
%
|
|
|
2
|
|
%
|
APAC region revenues (constant currency) - YoY % change
|
|
|
n, aa, ff
|
|
|
(1
|
)
|
%
|
|
|
(2
|
)
|
%
|
|
|
1
|
|
%
|
|
|
0
|
|
%
|
|
|
0
|
|
%
|
|
|
0
|
|
%
|
APAC region transactions - YoY % change
|
|
|
aa, ff
|
|
|
(2
|
)
|
%
|
|
|
(1
|
)
|
%
|
|
|
0
|
|
%
|
|
|
3
|
|
%
|
|
|
0
|
|
%
|
|
|
1
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
International revenues - YoY % change
|
|
|
gg
|
|
|
(2
|
)
|
%
|
|
|
(3
|
)
|
%
|
|
|
1
|
|
%
|
|
|
6
|
|
%
|
|
|
0
|
|
%
|
|
|
9
|
|
%
|
International transactions - YoY % change
|
|
|
gg
|
|
|
1
|
|
%
|
|
|
2
|
|
%
|
|
|
3
|
|
%
|
|
|
6
|
|
%
|
|
|
3
|
|
%
|
|
|
6
|
|
%
|
International revenues - % of C2C segment revenues
|
|
|
gg
|
|
|
66
|
|
%
|
|
|
66
|
|
%
|
|
|
67
|
|
%
|
|
|
67
|
|
%
|
|
|
66
|
|
%
|
|
|
67
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States originated revenues - YoY % change
|
|
|
hh
|
|
|
4
|
|
%
|
|
|
3
|
|
%
|
|
|
1
|
|
%
|
|
|
3
|
|
%
|
|
|
3
|
|
%
|
|
|
4
|
|
%
|
United States originated transactions - YoY % change
|
|
|
hh
|
|
|
4
|
|
%
|
|
|
4
|
|
%
|
|
|
1
|
|
%
|
|
|
0
|
|
%
|
|
|
2
|
|
%
|
|
|
1
|
|
%
|
United States originated revenues - % of C2C segment revenues
|
|
|
hh
|
|
|
34
|
|
%
|
|
|
34
|
|
%
|
|
|
33
|
|
%
|
|
|
33
|
|
%
|
|
|
34
|
|
%
|
|
|
33
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
westernunion.com revenues (GAAP) - YoY % change
|
|
|
ii
|
|
|
26
|
|
%
|
|
|
21
|
|
%
|
|
|
23
|
|
%
|
|
|
22
|
|
%
|
|
|
23
|
|
%
|
|
|
23
|
|
%
|
westernunion.com revenues (constant currency) - YoY % change
|
|
|
o, ii
|
|
|
28
|
|
%
|
|
|
23
|
|
%
|
|
|
23
|
|
%
|
|
|
22
|
|
%
|
|
|
24
|
|
%
|
|
|
20
|
|
%
|
westernunion.com transactions - YoY % change
|
|
|
ii
|
|
|
27
|
|
%
|
|
|
25
|
|
%
|
|
|
24
|
|
%
|
|
|
22
|
|
%
|
|
|
24
|
|
%
|
|
|
24
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Consumer-to-Consumer Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Regional Revenues:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA region revenues
|
|
|
aa, bb
|
|
|
37
|
|
%
|
|
|
37
|
|
%
|
|
|
36
|
|
%
|
|
|
37
|
|
%
|
|
|
37
|
|
%
|
|
|
36
|
|
%
|
EU & CIS region revenues
|
|
|
aa, cc
|
|
|
30
|
|
%
|
|
|
31
|
|
%
|
|
|
31
|
|
%
|
|
|
31
|
|
%
|
|
|
31
|
|
%
|
|
|
32
|
|
%
|
MEASA region revenues
|
|
|
aa, dd
|
|
|
17
|
|
%
|
|
|
16
|
|
%
|
|
|
16
|
|
%
|
|
|
16
|
|
%
|
|
|
16
|
|
%
|
|
|
16
|
|
%
|
LACA region revenues
|
|
|
aa, ee
|
|
|
8
|
|
%
|
|
|
8
|
|
%
|
|
|
9
|
|
%
|
|
|
9
|
|
%
|
|
|
8
|
|
%
|
|
|
9
|
|
%
|
APAC region revenues
|
|
|
aa, ff
|
|
|
8
|
|
%
|
|
|
8
|
|
%
|
|
|
8
|
|
%
|
|
|
7
|
|
%
|
|
|
8
|
|
%
|
|
|
7
|
|
%
|
westernunion.com revenues
|
|
|
ii
|
|
|
9
|
|
%
|
|
|
9
|
|
%
|
|
|
10
|
|
%
|
|
|
10
|
|
%
|
|
|
10
|
|
%
|
|
|
11
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Solutions (B2B) Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues (GAAP) - YoY % change
|
|
|
|
|
|
(6
|
)
|
%
|
|
|
(4
|
)
|
%
|
|
|
2
|
|
%
|
|
|
(4
|
)
|
%
|
|
|
(3
|
)
|
%
|
|
|
3
|
|
%
|
Revenues (constant currency) - YoY % change
|
|
|
p
|
|
|
(3
|
)
|
%
|
|
|
(1
|
)
|
%
|
|
|
1
|
|
%
|
|
|
(8
|
)
|
%
|
|
|
(3
|
)
|
%
|
|
|
(2
|
)
|
%
|
Operating margin
|
|
|
|
|
|
2.6
|
|
%
|
|
|
5.5
|
|
%
|
|
|
9.1
|
|
%
|
|
|
(3.2
|
)
|
%
|
|
|
3.6
|
|
%
|
|
|
2.9
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (primarily bill payments businesses in United States and
Argentina)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues (GAAP) - YoY % change
|
|
|
|
|
|
7
|
|
%
|
|
|
9
|
|
%
|
|
|
9
|
|
%
|
|
|
11
|
|
%
|
|
|
9
|
|
%
|
|
|
4
|
|
%
|
Revenues (constant currency) - YoY % change
|
|
|
r
|
|
|
9
|
|
%
|
|
|
12
|
|
%
|
|
|
13
|
|
%
|
|
|
14
|
|
%
|
|
|
12
|
|
%
|
|
|
10
|
|
%
|
Operating margin
|
|
|
|
|
|
12.4
|
|
%
|
|
|
12.1
|
|
%
|
|
|
10.5
|
|
%
|
|
|
7.9
|
|
%
|
|
|
10.7
|
|
%
|
|
|
10.1
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Total Company Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer-to-Consumer segment revenues
|
|
|
|
|
|
78
|
|
%
|
|
|
79
|
|
%
|
|
|
79
|
|
%
|
|
|
80
|
|
%
|
|
|
79
|
|
%
|
|
|
79
|
|
%
|
Business Solutions segment revenues
|
|
|
|
|
|
7
|
|
%
|
|
|
7
|
|
%
|
|
|
7
|
|
%
|
|
|
6
|
|
%
|
|
|
7
|
|
%
|
|
|
7
|
|
%
|
Other revenues
|
|
|
|
|
|
15
|
|
%
|
|
|
14
|
|
%
|
|
|
14
|
|
%
|
|
|
14
|
|
%
|
|
|
14
|
|
%
|
|
|
14
|
|
%
|
|
* See the "Notes to Key Statistics" section of the press release for
the applicable Note references and the reconciliation of non-GAAP
financial measures.
|
|
|
THE WESTERN UNION COMPANY
|
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
|
(Unaudited)
|
(in millions, except per share amounts)
|
|
|
|
|
Three Months Ended
|
|
|
|
March 31,
|
|
|
|
2018
|
|
|
2017
|
|
|
% Change
|
Revenues
|
|
|
$
|
1,389.4
|
|
|
|
$
|
1,302.4
|
|
|
|
7
|
%
|
Expenses:
|
|
|
|
|
|
|
|
|
|
Cost of services (a)
|
|
|
|
825.4
|
|
|
|
|
799.9
|
|
|
|
3
|
%
|
Selling, general and administrative
|
|
|
|
299.1
|
|
|
|
|
262.4
|
|
|
|
14
|
%
|
Total expenses (b)
|
|
|
|
1,124.5
|
|
|
|
|
1,062.3
|
|
|
|
6
|
%
|
Operating income
|
|
|
|
264.9
|
|
|
|
|
240.1
|
|
|
|
10
|
%
|
Other income/(expense):
|
|
|
|
|
|
|
|
|
|
Interest income
|
|
|
|
0.7
|
|
|
|
|
1.1
|
|
|
|
(42)
|
%
|
Interest expense
|
|
|
|
(35.5
|
)
|
|
|
|
(31.3
|
)
|
|
|
13
|
%
|
Other income, net (a)
|
|
|
|
4.4
|
|
|
|
|
3.2
|
|
|
|
40
|
%
|
Total other expense, net
|
|
|
|
(30.4
|
)
|
|
|
|
(27.0
|
)
|
|
|
13
|
%
|
Income before income taxes
|
|
|
|
234.5
|
|
|
|
|
213.1
|
|
|
|
10
|
%
|
Provision for income taxes
|
|
|
|
20.9
|
|
|
|
|
51.4
|
|
|
|
(59)
|
%
|
Net income
|
|
|
$
|
213.6
|
|
|
|
$
|
161.7
|
|
|
|
32
|
%
|
Earnings per share:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
$
|
0.46
|
|
|
|
$
|
0.34
|
|
|
|
35
|
%
|
Diluted
|
|
|
$
|
0.46
|
|
|
|
$
|
0.33
|
|
|
|
39
|
%
|
Weighted-average shares outstanding:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
|
|
460.3
|
|
|
|
|
479.8
|
|
|
|
|
Diluted
|
|
|
|
463.6
|
|
|
|
|
483.4
|
|
|
|
|
Cash dividends declared per common share
|
|
|
$
|
0.19
|
|
|
|
$
|
0.175
|
|
|
|
9
|
%
|
____________
|
(a)
|
|
On January 1, 2018, the Company adopted an accounting pronouncement
that requires the non-service costs of the defined benefit pension
plan to be presented outside a subtotal of income from operations,
with adoption retrospective for periods previously presented. The
adoption of this standard resulted in reductions to "Cost of
services" and "Other income, net" of $0.6 million for the three
months ended March 31, 2017 from the amounts previously reported.
|
(b)
|
|
For the three months ended March 31, 2017, total WU Way business
transformation expenses were $14.3 million, including $4.2 million
in cost of services and $10.1 million in selling, general and
administrative, respectively.
|
|
|
|
|
|
|
THE WESTERN UNION COMPANY
|
CONDENSED CONSOLIDATED BALANCE SHEETS
|
(Unaudited)
|
(in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
|
December 31,
|
|
|
|
2018
|
|
|
2017
|
Assets
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$
|
934.3
|
|
|
|
$
|
838.2
|
|
Settlement assets
|
|
|
|
4,026.5
|
|
|
|
|
4,188.9
|
|
Property and equipment, net of accumulated depreciation of
|
|
|
|
|
|
|
$653.6 and $635.7, respectively
|
|
|
|
215.7
|
|
|
|
|
214.2
|
|
Goodwill
|
|
|
|
|
2,726.7
|
|
|
|
|
2,727.9
|
|
Other intangible assets, net of accumulated amortization of
|
|
|
|
|
|
|
$1,071.8 and $1,042.7, respectively
|
|
|
|
569.2
|
|
|
|
|
586.3
|
|
Other assets
|
|
|
|
715.6
|
|
|
|
|
675.9
|
|
Total assets
|
|
|
$
|
9,188.0
|
|
|
|
$
|
9,231.4
|
|
Liabilities and Stockholders' Deficit
|
|
|
|
|
|
|
Liabilities:
|
|
|
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
$
|
594.1
|
|
|
|
$
|
718.5
|
|
Settlement obligations
|
|
|
|
4,026.5
|
|
|
|
|
4,188.9
|
|
Income taxes payable
|
|
|
|
1,262.4
|
|
|
|
|
1,252.0
|
|
Deferred tax liability, net
|
|
|
|
173.8
|
|
|
|
|
173.0
|
|
Borrowings
|
|
|
|
3,143.4
|
|
|
|
|
3,033.6
|
|
Other liabilities
|
|
|
|
363.6
|
|
|
|
|
356.8
|
|
Total liabilities
|
|
|
|
9,563.8
|
|
|
|
|
9,722.8
|
|
|
|
|
|
|
|
|
Stockholders' deficit:
|
|
|
|
|
|
|
Preferred stock, $1.00 par value; 10 shares authorized;
|
|
|
|
|
|
|
no shares issued
|
|
|
|
-
|
|
|
|
|
-
|
|
Common stock, $0.01 par value; 2,000 shares authorized;
|
|
|
|
|
|
|
460.6 shares and 459.0 shares issued and outstanding as of
|
|
|
|
|
|
|
March 31, 2018 and December 31, 2017, respectively
|
|
|
|
4.6
|
|
|
|
|
4.6
|
|
Capital surplus
|
|
|
|
715.4
|
|
|
|
|
697.8
|
|
Accumulated deficit
|
|
|
|
(819.8
|
)
|
|
|
|
(965.9
|
)
|
Accumulated other comprehensive loss
|
|
|
|
(276.0
|
)
|
|
|
|
(227.9
|
)
|
Total stockholders' deficit
|
|
|
|
(375.8
|
)
|
|
|
|
(491.4
|
)
|
Total liabilities and stockholders' deficit
|
|
|
$
|
9,188.0
|
|
|
|
$
|
9,231.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE WESTERN UNION COMPANY
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Unaudited)
|
(in millions)
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2018
|
|
|
2017
|
Cash Flows From Operating Activities
|
|
|
|
|
|
|
Net income
|
|
|
$
|
213.6
|
|
|
|
$
|
161.7
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation
|
|
|
|
19.3
|
|
|
|
|
18.6
|
|
Amortization
|
|
|
|
47.4
|
|
|
|
|
47.8
|
|
Other non-cash items, net
|
|
|
|
8.9
|
|
|
|
|
76.0
|
|
Increase/(decrease) in cash resulting from changes in:
|
|
|
|
|
|
|
Other assets
|
|
|
|
(47.3
|
)
|
|
|
|
(20.4
|
)
|
Accounts payable and accrued liabilities
|
|
|
|
(123.2
|
)
|
|
|
|
(192.7
|
)
|
Income taxes payable
|
|
|
|
11.5
|
|
|
|
|
(5.2
|
)
|
Other liabilities
|
|
|
|
2.5
|
|
|
|
|
0.5
|
|
Net cash provided by operating activities
|
|
|
|
132.7
|
|
|
|
|
86.3
|
|
Cash Flows From Investing Activities
|
|
|
|
|
|
|
Capitalization of contract costs
|
|
|
|
(10.3
|
)
|
|
|
|
(6.8
|
)
|
Capitalization of purchased and developed software
|
|
|
|
(6.7
|
)
|
|
|
|
(11.7
|
)
|
Purchases of property and equipment
|
|
|
|
(20.2
|
)
|
|
|
|
(7.9
|
)
|
Purchases of non-settlement related investments and other
|
|
|
|
(4.3
|
)
|
|
|
|
(21.3
|
)
|
Proceeds from maturity of non-settlement related investments
|
|
|
|
10.0
|
|
|
|
|
-
|
|
Purchases of held-to-maturity non-settlement related investments
|
|
|
|
(1.4
|
)
|
|
|
|
(15.2
|
)
|
Proceeds from held-to-maturity non-settlement related investments
|
|
|
|
-
|
|
|
|
|
12.3
|
|
Net cash used in investing activities
|
|
|
|
(32.9
|
)
|
|
|
|
(50.6
|
)
|
Cash Flows From Financing Activities
|
|
|
|
|
|
|
Cash dividends paid
|
|
|
|
(87.5
|
)
|
|
|
|
(83.3
|
)
|
Common stock repurchased
|
|
|
|
(11.6
|
)
|
|
|
|
(219.3
|
)
|
Net proceeds from commercial paper
|
|
|
|
110.0
|
|
|
|
|
310.0
|
|
Net proceeds from issuance of borrowings
|
|
|
|
-
|
|
|
|
|
396.9
|
|
Proceeds from exercise of options
|
|
|
|
3.8
|
|
|
|
|
5.8
|
|
Other financing activities
|
|
|
|
(5.2
|
)
|
|
|
|
-
|
|
Net cash provided by financing activities
|
|
|
|
9.5
|
|
|
|
|
410.1
|
|
Net change in cash, cash equivalents and restricted cash
|
|
|
|
109.3
|
|
|
|
|
445.8
|
|
Cash, cash equivalents and restricted cash at beginning of period
|
|
|
|
844.4
|
|
|
|
|
877.5
|
|
Cash, cash equivalents and restricted cash at end of period
|
|
|
$
|
953.7
|
|
|
|
$
|
1,323.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THE WESTERN UNION COMPANY
|
SUMMARY SEGMENT DATA
|
(Unaudited)
|
(in millions)
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2018
|
|
|
2017
|
|
|
% Change
|
Revenues:
|
|
|
|
|
|
|
|
|
|
Consumer-to-Consumer
|
|
|
$
|
1,091.0
|
|
|
|
$
|
1,015.0
|
|
|
|
7
|
%
|
Business Solutions
|
|
|
|
96.7
|
|
|
|
|
93.6
|
|
|
|
3
|
%
|
Other (a)
|
|
|
|
201.7
|
|
|
|
|
193.8
|
|
|
|
4
|
%
|
Total consolidated revenues
|
|
|
$
|
1,389.4
|
|
|
|
$
|
1,302.4
|
|
|
|
7
|
%
|
Operating income (b):
|
|
|
|
|
|
|
|
|
|
Consumer-to-Consumer
|
|
|
$
|
241.7
|
|
|
|
$
|
228.0
|
|
|
|
6
|
%
|
Business Solutions
|
|
|
|
2.8
|
|
|
|
|
2.4
|
|
|
|
19
|
%
|
Other (a)
|
|
|
|
20.4
|
|
|
|
|
24.0
|
|
|
|
(15)
|
%
|
Total segment operating income (b)
|
|
|
|
264.9
|
|
|
|
|
254.4
|
|
|
|
4
|
%
|
Business transformation expenses (c)
|
|
|
|
-
|
|
|
|
|
(14.3
|
)
|
|
|
(d)
|
Total consolidated operating income (b)
|
|
|
$
|
264.9
|
|
|
|
$
|
240.1
|
|
|
|
10
|
%
|
Operating income margin (b):
|
|
|
|
|
|
|
|
|
|
Consumer-to-Consumer
|
|
|
|
22.2
|
%
|
|
|
|
22.5
|
%
|
|
|
(0.3)
|
%
|
Business Solutions
|
|
|
|
2.9
|
%
|
|
|
|
2.6
|
%
|
|
|
0.3
|
%
|
Other (a)
|
|
|
|
10.1
|
%
|
|
|
|
12.4
|
%
|
|
|
(2.3)
|
%
|
Total consolidated operating income margin (b)
|
|
|
|
19.1
|
%
|
|
|
|
18.4
|
%
|
|
|
0.7
|
%
|
____________
|
(a)
|
|
Consists primarily of the Company's bill payments businesses in the
United States and Argentina.
|
(b)
|
|
On January 1, 2018, the Company adopted an accounting pronouncement
that requires the non-service costs of the defined benefit pension
plan to be presented outside a subtotal of income from operations,
with adoption retrospective for periods previously presented. The
adoption of this standard resulted in an increase of $0.6 million to
operating income for the three months ended March 31, 2017 from the
amounts previously reported, and this increase was allocated among
the segments in a method consistent with the original allocation of
this expense.
|
(c)
|
|
Expenses related to the WU Way business transformation are 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.
|
(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
amounts, which have been adjusted for changes in our reporting segments,
as described earlier. Although the expenses related to the WU Way are
specific to that initiative, the types of expenses related to the WU Way
initiative are similar to expenses that the Company has previously
incurred and can reasonably be expected to incur in the future.
|
|
|
|
|
1Q17
|
|
2Q17
|
|
3Q17
|
|
4Q17
|
|
FY2017
|
|
1Q18
|
|
|
Consolidated Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a)
|
|
Revenues, as reported (GAAP)
|
|
|
$
|
1,302.4
|
|
|
$
|
1,378.9
|
|
|
$
|
1,404.7
|
|
|
$
|
1,438.3
|
|
|
$
|
5,524.3
|
|
|
$
|
1,389.4
|
|
|
|
Foreign currency translation impact (s)
|
|
|
|
30.1
|
|
|
|
29.0
|
|
|
|
7.7
|
|
|
|
(5.5
|
)
|
|
|
61.3
|
|
|
|
(18.9
|
)
|
|
|
Revenues, constant currency adjusted
|
|
|
$
|
1,332.5
|
|
|
$
|
1,407.9
|
|
|
$
|
1,412.4
|
|
|
$
|
1,432.8
|
|
|
$
|
5,585.6
|
|
|
$
|
1,370.5
|
|
|
|
Prior year revenues, as reported (GAAP)
|
|
|
$
|
1,297.7
|
|
|
$
|
1,375.7
|
|
|
$
|
1,377.8
|
|
|
$
|
1,371.7
|
|
|
$
|
5,422.9
|
|
|
$
|
1,302.4
|
|
|
|
Revenue change, as reported (GAAP)
|
|
|
|
0
|
%
|
|
|
0
|
%
|
|
|
2
|
%
|
|
|
5
|
%
|
|
|
2
|
%
|
|
|
7
|
%
|
|
|
Revenue change, constant currency adjusted
|
|
|
|
3
|
%
|
|
|
2
|
%
|
|
|
3
|
%
|
|
|
4
|
%
|
|
|
3
|
%
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b)
|
|
Operating income/(loss), as reported (GAAP) (jj)
|
|
|
$
|
240.1
|
|
|
$
|
215.3
|
|
|
$
|
272.2
|
|
|
$
|
(251.9
|
)
|
|
$
|
475.7
|
|
|
$
|
264.9
|
|
|
|
Foreign currency translation impact (s)
|
|
|
|
15.0
|
|
|
|
6.8
|
|
|
|
8.9
|
|
|
|
13.3
|
|
|
|
44.0
|
|
|
|
3.4
|
|
|
|
Goodwill impairment (t)
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
464.0
|
|
|
|
464.0
|
|
|
|
N/A
|
|
|
|
NYDFS Consent Order (u)
|
|
|
|
N/A
|
|
|
|
49.0
|
|
|
|
-
|
|
|
|
11.0
|
|
|
|
60.0
|
|
|
|
N/A
|
|
|
|
Joint Settlement Agreements (v)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8.0
|
|
|
|
-
|
|
|
|
8.0
|
|
|
|
N/A
|
|
|
|
WU Way business transformation expenses (w)
|
|
|
|
14.3
|
|
|
|
35.0
|
|
|
|
9.9
|
|
|
|
35.2
|
|
|
|
94.4
|
|
|
|
N/A
|
|
|
|
Operating income, constant currency adjusted, excluding Goodwill
impairment, NYDFS Consent Order, Joint Settlement Agreements and WU
Way business transformation expenses
|
|
|
$
|
269.4
|
|
|
$
|
306.1
|
|
|
$
|
299.0
|
|
|
$
|
271.6
|
|
|
$
|
1,146.1
|
|
|
$
|
268.3
|
|
|
|
Prior year operating income, excluding Joint Settlement Agreements
and WU Way business transformation expenses
|
|
|
$
|
259.4
|
|
|
$
|
278.2
|
|
|
$
|
299.2
|
|
|
$
|
271.5
|
|
|
$
|
1,108.3
|
|
|
$
|
254.4
|
|
|
|
Operating income change, as reported (GAAP)
|
|
|
|
(7)
|
%
|
|
|
(18)
|
%
|
|
|
(2)
|
%
|
|
|
19
|
%
|
|
|
(2)
|
%
|
|
|
10
|
%
|
|
|
Operating income change, constant currency adjusted, excluding
Goodwill impairment, NYDFS Consent Order, Joint Settlement
Agreements and WU Way business transformation expenses
|
|
|
|
4
|
%
|
|
|
10
|
%
|
|
|
0
|
%
|
|
|
0
|
%
|
|
|
3
|
%
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(c)
|
|
Operating income/(loss), as reported (GAAP) (jj)
|
|
|
$
|
240.1
|
|
|
$
|
215.3
|
|
|
$
|
272.2
|
|
|
$
|
(251.9
|
)
|
|
$
|
475.7
|
|
|
$
|
264.9
|
|
|
|
Goodwill impairment (t)
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
464.0
|
|
|
|
464.0
|
|
|
|
N/A
|
|
|
|
NYDFS Consent Order (u)
|
|
|
|
N/A
|
|
|
|
49.0
|
|
|
|
-
|
|
|
|
11.0
|
|
|
|
60.0
|
|
|
|
N/A
|
|
|
|
Joint Settlement Agreements (v)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8.0
|
|
|
|
-
|
|
|
|
8.0
|
|
|
|
N/A
|
|
|
|
WU Way business transformation expenses (w)
|
|
|
|
14.3
|
|
|
|
35.0
|
|
|
|
9.9
|
|
|
|
35.2
|
|
|
|
94.4
|
|
|
|
N/A
|
|
|
|
Operating income, excluding Goodwill impairment, NYDFS Consent
Order, Joint Settlement Agreements and WU Way business
transformation expenses
|
|
|
$
|
254.4
|
|
|
$
|
299.3
|
|
|
$
|
290.1
|
|
|
$
|
258.3
|
|
|
$
|
1,102.1
|
|
|
$
|
264.9
|
|
|
|
Operating margin, as reported (GAAP) (jj)
|
|
|
|
18.4
|
%
|
|
|
15.6
|
%
|
|
|
19.4
|
%
|
|
|
(17.5)
|
%
|
|
|
8.6
|
%
|
|
|
19.1
|
%
|
|
|
Operating margin, excluding Goodwill impairment, NYDFS Consent
Order, Joint Settlement Agreements and WU Way business
transformation expenses
|
|
|
|
19.5
|
%
|
|
|
21.7
|
%
|
|
|
20.7
|
%
|
|
|
18.0
|
%
|
|
|
20.0
|
%
|
|
|
19.1
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d)
|
|
Operating income/(loss), as reported (GAAP) (jj)
|
|
|
$
|
240.1
|
|
|
$
|
215.3
|
|
|
$
|
272.2
|
|
|
$
|
(251.9
|
)
|
|
$
|
475.7
|
|
|
$
|
264.9
|
|
|
|
Reversal of depreciation and amortization
|
|
|
|
66.4
|
|
|
|
65.2
|
|
|
|
65.5
|
|
|
|
65.8
|
|
|
|
262.9
|
|
|
|
66.7
|
|
|
|
EBITDA (y)
|
|
|
$
|
306.5
|
|
|
$
|
280.5
|
|
|
$
|
337.7
|
|
|
$
|
(186.1
|
)
|
|
$
|
738.6
|
|
|
$
|
331.6
|
|
|
|
Goodwill impairment (t)
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
464.0
|
|
|
|
464.0
|
|
|
|
N/A
|
|
|
|
NYDFS Consent Order (u)
|
|
|
|
N/A
|
|
|
|
49.0
|
|
|
|
-
|
|
|
|
11.0
|
|
|
|
60.0
|
|
|
|
N/A
|
|
|
|
Joint Settlement Agreements (v)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8.0
|
|
|
|
-
|
|
|
|
8.0
|
|
|
|
N/A
|
|
|
|
WU Way business transformation expenses (w)
|
|
|
|
14.3
|
|
|
|
35.0
|
|
|
|
9.9
|
|
|
|
35.2
|
|
|
|
94.4
|
|
|
|
N/A
|
|
|
|
Adjusted EBITDA, excluding Goodwill impairment, NYDFS Consent Order,
Joint Settlement Agreements and WU Way business transformation
expenses
|
|
|
$
|
320.8
|
|
|
$
|
364.5
|
|
|
$
|
355.6
|
|
|
$
|
324.1
|
|
|
$
|
1,365.0
|
|
|
$
|
331.6
|
|
|
|
Operating margin, as reported (GAAP) (jj)
|
|
|
|
18.4
|
%
|
|
|
15.6
|
%
|
|
|
19.4
|
%
|
|
|
(17.5)
|
%
|
|
|
8.6
|
%
|
|
|
19.1
|
%
|
|
|
EBITDA margin
|
|
|
|
23.5
|
%
|
|
|
20.4
|
%
|
|
|
24.0
|
%
|
|
|
(13.0)
|
%
|
|
|
13.4
|
%
|
|
|
23.9
|
%
|
|
|
Adjusted EBITDA margin, excluding Goodwill impairment, NYDFS Consent
Order, Joint Settlement Agreements and WU Way business
transformation expenses
|
|
|
|
24.6
|
%
|
|
|
26.4
|
%
|
|
|
25.3
|
%
|
|
|
22.5
|
%
|
|
|
24.7
|
%
|
|
|
23.9
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(e)
|
|
Net income/(loss), as reported (GAAP)
|
|
|
$
|
161.7
|
|
|
$
|
166.5
|
|
|
$
|
235.6
|
|
|
$
|
(1,120.9
|
)
|
|
$
|
(557.1
|
)
|
|
$
|
213.6
|
|
|
|
Goodwill impairment (t)
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
464.0
|
|
|
|
464.0
|
|
|
|
N/A
|
|
|
|
NYDFS Consent Order (u)
|
|
|
|
N/A
|
|
|
|
49.0
|
|
|
|
-
|
|
|
|
11.0
|
|
|
|
60.0
|
|
|
|
N/A
|
|
|
|
Joint Settlement Agreements (v)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
8.0
|
|
|
|
-
|
|
|
|
8.0
|
|
|
|
N/A
|
|
|
|
WU Way business transformation expenses (w)
|
|
|
|
14.3
|
|
|
|
35.0
|
|
|
|
9.9
|
|
|
|
35.2
|
|
|
|
94.4
|
|
|
|
N/A
|
|
|
|
Income tax benefit from Goodwill impairment (t)
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
(17.2
|
)
|
|
|
(17.2
|
)
|
|
|
N/A
|
|
|
|
Income tax benefit from Joint Settlement Agreements (v)
|
|
|
|
-
|
|
|
|
-
|
|
|
|
(2.9
|
)
|
|
|
-
|
|
|
|
(2.9
|
)
|
|
|
N/A
|
|
|
|
Income tax benefit from WU Way business transformation expenses (w)
|
|
|
|
(5.0
|
)
|
|
|
(12.3
|
)
|
|
|
(2.7
|
)
|
|
|
(11.1
|
)
|
|
|
(31.1
|
)
|
|
|
N/A
|
|
|
|
Income tax expense/(benefit) from Tax Act (x)
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
828.3
|
|
|
|
828.3
|
|
|
|
(6.0
|
)
|
|
|
Goodwill impairment, NYDFS Consent Order, Joint Settlement
Agreements and WU Way business transformation expenses, net of
income tax expense/(benefit) and Tax Act
|
|
|
|
9.3
|
|
|
|
71.7
|
|
|
|
12.3
|
|
|
|
1,310.2
|
|
|
|
1,403.5
|
|
|
|
(6.0
|
)
|
|
|
Net income, excluding Goodwill impairment, NYDFS Consent Order,
Joint Settlement Agreements, WU Way business transformation expenses
and Tax Act
|
|
|
$
|
171.0
|
|
|
$
|
238.2
|
|
|
$
|
247.9
|
|
|
$
|
189.3
|
|
|
$
|
846.4
|
|
|
$
|
207.6
|
|
|
|
Diluted earnings/(loss) per share ("EPS"), as reported (GAAP) ($ -
dollars)
|
|
|
$
|
0.33
|
|
|
$
|
0.35
|
|
|
$
|
0.51
|
|
|
$
|
(2.44
|
)
|
|
$
|
(1.19
|
)
|
|
$
|
0.46
|
|
|
|
EPS impact as a result of Goodwill impairment ($ - dollars) (t)
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
$
|
1.01
|
|
|
$
|
1.00
|
|
|
|
N/A
|
|
|
|
EPS impact as a result of NYDFS Consent Order ($ - dollars) (u)
|
|
|
|
N/A
|
|
|
$
|
0.10
|
|
|
$
|
-
|
|
|
$
|
0.02
|
|
|
$
|
0.13
|
|
|
|
N/A
|
|
|
|
EPS impact as a result of Joint Settlement Agreements ($ - dollars)
(v)
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
0.02
|
|
|
$
|
-
|
|
|
$
|
0.02
|
|
|
|
N/A
|
|
|
|
EPS impact as a result of WU Way business transformation expenses ($
- dollars) (w)
|
|
|
$
|
0.03
|
|
|
$
|
0.07
|
|
|
$
|
0.02
|
|
|
$
|
0.08
|
|
|
$
|
0.20
|
|
|
|
N/A
|
|
|
|
EPS impact from income tax benefit from Goodwill impairment ($ -
dollars) (t)
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
$
|
(0.04
|
)
|
|
$
|
(0.04
|
)
|
|
|
N/A
|
|
|
|
EPS impact from income tax benefit from Joint Settlement Agreements
($ - dollars) (v)
|
|
|
$
|
-
|
|
|
$
|
-
|
|
|
$
|
(0.01
|
)
|
|
$
|
-
|
|
|
$
|
(0.01
|
)
|
|
|
N/A
|
|
|
|
EPS impact from income tax benefit from WU Way business
transformation expenses ($ - dollars) (w)
|
|
|
$
|
(0.01
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.01
|
)
|
|
$
|
(0.02
|
)
|
|
$
|
(0.07
|
)
|
|
|
N/A
|
|
|
|
EPS impact as a result of Tax Act ($ - dollars) (x)
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
$
|
1.80
|
|
|
$
|
1.76
|
|
|
$
|
(0.01
|
)
|
|
|
EPS impact as a result of Goodwill impairment, NYDFS Consent Order,
Joint Settlement Agreements and WU Way business transformation
expenses, net of income tax expense/(benefit) and Tax Act ($ -
dollars)
|
|
|
$
|
0.02
|
|
|
$
|
0.15
|
|
|
$
|
0.02
|
|
|
$
|
2.85
|
|
|
$
|
2.99
|
|
|
$
|
(0.01
|
)
|
|
|
Diluted EPS, excluding Goodwill impairment, NYDFS Consent Order,
Joint Settlement Agreements, WU Way business transformation expenses
and Tax Act ($ - dollars)
|
|
|
$
|
0.35
|
|
|
$
|
0.50
|
|
|
$
|
0.53
|
|
|
$
|
0.41
|
|
|
$
|
1.80
|
|
|
$
|
0.45
|
|
|
|
Diluted weighted-average shares outstanding (z)
|
|
|
|
483.4
|
|
|
|
472.0
|
|
|
|
465.4
|
|
|
|
462.9
|
|
|
|
470.9
|
|
|
|
463.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(f)
|
|
Effective tax rate, as reported (GAAP)
|
|
|
|
24
|
%
|
|
|
10
|
%
|
|
|
2
|
%
|
|
|
(288)
|
%
|
|
|
260
|
%
|
|
|
9
|
%
|
|
|
Impact from Goodwill impairment (t)
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
773
|
%
|
|
|
(146)
|
%
|
|
|
N/A
|
|
|
|
Impact from NYDFS Consent Order (u)
|
|
|
|
N/A
|
|
|
|
(2)
|
%
|
|
|
0
|
%
|
|
|
(29)
|
%
|
|
|
(8)
|
%
|
|
|
N/A
|
|
|
|
Impact from Joint Settlement Agreements (v)
|
|
|
|
0
|
%
|
|
|
0
|
%
|
|
|
1
|
%
|
|
|
0
|
%
|
|
|
(1)
|
%
|
|
|
N/A
|
|
|
|
Impact from WU Way business transformation expenses (w)
|
|
|
|
1
|
%
|
|
|
3
|
%
|
|
|
1
|
%
|
|
|
(67)
|
%
|
|
|
(7)
|
%
|
|
|
N/A
|
|
|
|
Impact from Tax Act (x)
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
N/A
|
|
|
|
(375)
|
%
|
|
|
(85)
|
%
|
|
|
2
|
%
|
|
|
Effective tax rate, excluding Goodwill impairment, NYDFS Consent
Order, Joint Settlement Agreements, WU Way business transformation
expenses and Tax Act
|
|
|
|
25
|
%
|
|
|
11
|
%
|
|
|
4
|
%
|
|
|
14
|
%
|
|
|
13
|
%
|
|
|
11
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer-to-Consumer Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(g)
|
|
Revenues, as reported (GAAP)
|
|
|
$
|
1,015.0
|
|
|
$
|
1,087.3
|
|
|
$
|
1,107.7
|
|
|
$
|
1,144.5
|
|
|
$
|
4,354.5
|
|
|
$
|
1,091.0
|
|
|
|
Foreign currency translation impact (s)
|
|
|
|
24.1
|
|
|
|
20.8
|
|
|
|
1.8
|
|
|
|
(9.0
|
)
|
|
|
37.7
|
|
|
|
(26.4
|
)
|
|
|
Revenues, constant currency adjusted
|
|
|
$
|
1,039.1
|
|
|
$
|
1,108.1
|
|
|
$
|
1,109.5
|
|
|
$
|
1,135.5
|
|
|
$
|
4,392.2
|
|
|
$
|
1,064.6
|
|
|
|
Prior year revenues, as reported (GAAP)
|
|
|
$
|
1,017.4
|
|
|
$
|
1,095.8
|
|
|
$
|
1,098.9
|
|
|
$
|
1,092.5
|
|
|
$
|
4,304.6
|
|
|
$
|
1,015.0
|
|
|
|
Revenue change, as reported (GAAP)
|
|
|
|
0
|
%
|
|
|
(1)
|
%
|
|
|
1
|
%
|
|
|
5
|
%
|
|
|
1
|
%
|
|
|
7
|
%
|
|
|
Revenue change, constant currency adjusted
|
|
|
|
2
|
%
|
|
|
1
|
%
|
|
|
1
|
%
|
|
|
4
|
%
|
|
|
2
|
%
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(h)
|
|
Principal per transaction, as reported ($ - dollars)
|
|
|
$
|
292
|
|
|
$
|
293
|
|
|
$
|
302
|
|
|
$
|
300
|
|
|
$
|
297
|
|
|
$
|
307
|
|
|
|
Foreign currency translation impact ($ - dollars) (s)
|
|
|
|
3
|
|
|
|
3
|
|
|
|
(2
|
)
|
|
|
(6
|
)
|
|
|
(1
|
)
|
|
|
(10
|
)
|
|
|
Principal per transaction, constant currency adjusted ($ - dollars)
|
|
|
$
|
295
|
|
|
$
|
296
|
|
|
$
|
300
|
|
|
$
|
294
|
|
|
$
|
296
|
|
|
$
|
297
|
|
|
|
Prior year principal per transaction, as reported ($ - dollars)
|
|
|
$
|
299
|
|
|
$
|
301
|
|
|
$
|
300
|
|
|
$
|
292
|
|
|
$
|
298
|
|
|
$
|
292
|
|
|
|
Principal per transaction change, as reported
|
|
|
|
(2)
|
%
|
|
|
(3)
|
%
|
|
|
1
|
%
|
|
|
3
|
%
|
|
|
0
|
%
|
|
|
5
|
%
|
|
|
Principal per transaction change, constant currency adjusted
|
|
|
|
(1)
|
%
|
|
|
(2)
|
%
|
|
|
0
|
%
|
|
|
0
|
%
|
|
|
(1)
|
%
|
|
|
2
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(i)
|
|
Cross-border principal, as reported ($ - billions)
|
|
|
$
|
17.3
|
|
|
$
|
18.7
|
|
|
$
|
19.0
|
|
|
$
|
19.5
|
|
|
$
|
74.5
|
|
|
$
|
18.9
|
|
|
|
Foreign currency translation impact ($ - billions) (s)
|
|
|
|
0.2
|
|
|
|
0.2
|
|
|
|
(0.2
|
)
|
|
|
(0.4
|
)
|
|
|
(0.2
|
)
|
|
|
(0.7
|
)
|
|
|
Cross-border principal, constant currency adjusted ($ - billions)
|
|
|
$
|
17.5
|
|
|
$
|
18.9
|
|
|
$
|
18.8
|
|
|
$
|
19.1
|
|
|
$
|
74.3
|
|
|
$
|
18.2
|
|
|
|
Prior year cross-border principal, as reported ($ - billions)
|
|
|
$
|
17.3
|
|
|
$
|
18.5
|
|
|
$
|
18.4
|
|
|
$
|
18.3
|
|
|
$
|
72.5
|
|
|
$
|
17.3
|
|
|
|
Cross-border principal change, as reported
|
|
|
|
1
|
%
|
|
|
1
|
%
|
|
|
4
|
%
|
|
|
6
|
%
|
|
|
3
|
%
|
|
|
9
|
%
|
|
|
Cross-border principal change, constant currency adjusted
|
|
|
|
2
|
%
|
|
|
2
|
%
|
|
|
2
|
%
|
|
|
4
|
%
|
|
|
2
|
%
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(j)
|
|
NA region revenue change, as reported (GAAP)
|
|
|
|
3
|
%
|
|
|
3
|
%
|
|
|
1
|
%
|
|
|
3
|
%
|
|
|
2
|
%
|
|
|
4
|
%
|
|
|
NA region foreign currency translation impact (s)
|
|
|
|
1
|
%
|
|
|
0
|
%
|
|
|
0
|
%
|
|
|
0
|
%
|
|
|
1
|
%
|
|
|
0
|
%
|
|
|
NA region revenue change, constant currency adjusted
|
|
|
|
4
|
%
|
|
|
3
|
%
|
|
|
1
|
%
|
|
|
3
|
%
|
|
|
3
|
%
|
|
|
4
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(k)
|
|
EU & CIS region revenue change, as reported (GAAP)
|
|
|
|
(1)
|
%
|
|
|
(2)
|
%
|
|
|
2
|
%
|
|
|
6
|
%
|
|
|
1
|
%
|
|
|
14
|
%
|
|
|
EU & CIS region foreign currency translation impact (s)
|
|
|
|
5
|
%
|
|
|
4
|
%
|
|
|
(1)
|
%
|
|
|
(4)
|
%
|
|
|
1
|
%
|
|
|
(9)
|
%
|
|
|
EU & CIS region revenue change, constant currency adjusted
|
|
|
|
4
|
%
|
|
|
2
|
%
|
|
|
1
|
%
|
|
|
2
|
%
|
|
|
2
|
%
|
|
|
5
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(l)
|
|
MEASA region revenue change, as reported (GAAP)
|
|
|
|
(13)
|
%
|
|
|
(12)
|
%
|
|
|
(8)
|
%
|
|
|
1
|
%
|
|
|
(8)
|
%
|
|
|
0
|
%
|
|
|
MEASA region foreign currency translation impact (s)
|
|
|
|
3
|
%
|
|
|
1
|
%
|
|
|
0
|
%
|
|
|
(1)
|
%
|
|
|
1
|
%
|
|
|
(1)
|
%
|
|
|
MEASA region revenue change, constant currency adjusted
|
|
|
|
(10)
|
%
|
|
|
(11)
|
%
|
|
|
(8)
|
%
|
|
|
0
|
%
|
|
|
(7)
|
%
|
|
|
(1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(m)
|
|
LACA region revenue change, as reported (GAAP)
|
|
|
|
26
|
%
|
|
|
21
|
%
|
|
|
19
|
%
|
|
|
21
|
%
|
|
|
22
|
%
|
|
|
20
|
%
|
|
|
LACA region foreign currency translation impact (s)
|
|
|
|
(1)
|
%
|
|
|
1
|
%
|
|
|
3
|
%
|
|
|
2
|
%
|
|
|
1
|
%
|
|
|
5
|
%
|
|
|
LACA region revenue change, constant currency adjusted
|
|
|
|
25
|
%
|
|
|
22
|
%
|
|
|
22
|
%
|
|
|
23
|
%
|
|
|
23
|
%
|
|
|
25
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(n)
|
|
APAC region revenue change, as reported (GAAP)
|
|
|
|
(2)
|
%
|
|
|
(4)
|
%
|
|
|
(1)
|
%
|
|
|
0
|
%
|
|
|
(2)
|
%
|
|
|
2
|
%
|
|
|
APAC region foreign currency translation impact (s)
|
|
|
|
1
|
%
|
|
|
2
|
%
|
|
|
2
|
%
|
|
|
0
|
%
|
|
|
2
|
%
|
|
|
(2)
|
%
|
|
|
APAC region revenue change, constant currency adjusted
|
|
|
|
(1)
|
%
|
|
|
(2)
|
%
|
|
|
1
|
%
|
|
|
0
|
%
|
|
|
0
|
%
|
|
|
0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(o)
|
|
westernunion.com revenue change, as reported (GAAP)
|
|
|
|
26
|
%
|
|
|
21
|
%
|
|
|
23
|
%
|
|
|
22
|
%
|
|
|
23
|
%
|
|
|
23
|
%
|
|
|
westernunion.com foreign currency translation impact (s)
|
|
|
|
2
|
%
|
|
|
2
|
%
|
|
|
0
|
%
|
|
|
0
|
%
|
|
|
1
|
%
|
|
|
(3)
|
%
|
|
|
westernunion.com revenue change, constant currency adjusted
|
|
|
|
28
|
%
|
|
|
23
|
%
|
|
|
23
|
%
|
|
|
22
|
%
|
|
|
24
|
%
|
|
|
20
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Solutions Segment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(p)
|
|
Revenues, as reported (GAAP)
|
|
|
$
|
93.6
|
|
|
$
|
96.6
|
|
|
$
|
99.4
|
|
|
$
|
94.3
|
|
|
$
|
383.9
|
|
|
$
|
96.7
|
|
|
|
Foreign currency translation impact (s)
|
|
|
|
2.8
|
|
|
|
3.2
|
|
|
|
(1.2
|
)
|
|
|
(3.0
|
)
|
|
|
1.8
|
|
|
|
(4.8
|
)
|
|
|
Revenues, constant currency adjusted
|
|
|
$
|
96.4
|
|
|
$
|
99.8
|
|
|
$
|
98.2
|
|
|
$
|
91.3
|
|
|
$
|
385.7
|
|
|
$
|
91.9
|
|
|
|
Prior year revenues, as reported (GAAP)
|
|
|
$
|
99.2
|
|
|
$
|
100.8
|
|
|
$
|
97.2
|
|
|
$
|
98.8
|
|
|
$
|
396.0
|
|
|
$
|
93.6
|
|
|
|
Revenue change, as reported (GAAP)
|
|
|
|
(6)
|
%
|
|
|
(4)
|
%
|
|
|
2
|
%
|
|
|
(4)
|
%
|
|
|
(3)
|
%
|
|
|
3
|
%
|
|
|
Revenue change, constant currency adjusted
|
|
|
|
(3)
|
%
|
|
|
(1)
|
%
|
|
|
1
|
%
|
|
|
(8)
|
%
|
|
|
(3)
|
%
|
|
|
(2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(q)
|
|
Operating income/(loss), as reported (GAAP) (jj)
|
|
|
$
|
2.4
|
|
|
$
|
5.3
|
|
|
$
|
9.1
|
|
|
$
|
(3.0
|
)
|
|
$
|
13.8
|
|
|
$
|
2.8
|
|
|
|
Reversal of depreciation and amortization
|
|
|
|
10.6
|
|
|
|
10.6
|
|
|
|
10.6
|
|
|
|
10.7
|
|
|
|
42.5
|
|
|
|
10.6
|
|
|
|
EBITDA (y)
|
|
|
$
|
13.0
|
|
|
$
|
15.9
|
|
|
$
|
19.7
|
|
|
$
|
7.7
|
|
|
$
|
56.3
|
|
|
$
|
13.4
|
|
|
|
Operating income margin, as reported (GAAP) (jj)
|
|
|
|
2.6
|
%
|
|
|
5.5
|
%
|
|
|
9.1
|
%
|
|
|
(3.2)
|
%
|
|
|
3.6
|
%
|
|
|
2.9
|
%
|
|
|
EBITDA margin
|
|
|
|
13.8
|
%
|
|
|
16.6
|
%
|
|
|
19.8
|
%
|
|
|
8.1
|
%
|
|
|
14.7
|
%
|
|
|
13.8
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(r)
|
|
Other (primarily bill payments businesses in United States and
Argentina)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues, as reported (GAAP)
|
|
|
$
|
193.8
|
|
|
$
|
195.0
|
|
|
$
|
197.6
|
|
|
$
|
199.5
|
|
|
$
|
785.9
|
|
|
$
|
201.7
|
|
|
|
Foreign currency translation impact (s)
|
|
|
|
3.2
|
|
|
|
5.0
|
|
|
|
7.1
|
|
|
|
6.5
|
|
|
|
21.8
|
|
|
|
12.3
|
|
|
|
Revenues, constant currency adjusted
|
|
|
$
|
197.0
|
|
|
$
|
200.0
|
|
|
$
|
204.7
|
|
|
$
|
206.0
|
|
|
$
|
807.7
|
|
|
$
|
214.0
|
|
|
|
Prior year revenues, as reported (GAAP)
|
|
|
$
|
181.1
|
|
|
$
|
179.1
|
|
|
$
|
181.7
|
|
|
$
|
180.4
|
|
|
$
|
722.3
|
|
|
$
|
193.8
|
|
|
|
Revenue change, as reported (GAAP)
|
|
|
|
7
|
%
|
|
|
9
|
%
|
|
|
9
|
%
|
|
|
11
|
%
|
|
|
9
|
%
|
|
|
4
|
%
|
|
|
Revenue change, constant currency adjusted
|
|
|
|
9
|
%
|
|
|
12
|
%
|
|
|
13
|
%
|
|
|
14
|
%
|
|
|
12
|
%
|
|
|
10
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2018 Consolidated Outlook Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range
|
|
|
|
|
|
|
|
|
|
|
Earnings per share (GAAP) ($ - dollars)
|
|
|
$
|
1.81
|
|
|
$
|
1.91
|
|
|
|
|
|
|
|
|
|
|
|
Impact as a result of Tax Act ($ - dollars) (x)
|
|
|
|
(0.01
|
)
|
|
|
(0.01
|
)
|
|
|
|
|
|
|
|
|
|
|
Earnings per share excluding Tax Act ($ - dollars)
|
|
|
$
|
1.80
|
|
|
$
|
1.90
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate (GAAP)
|
|
|
|
|
|
14
|
%
|
|
|
|
|
|
|
|
|
|
|
Impact from Tax Act (x)
|
|
|
|
|
|
1
|
%
|
|
|
|
|
|
|
|
|
|
|
Effective tax rate excluding Tax Act
|
|
|
|
|
|
15
|
%
|
|
|
|
|
|
|
|
|
Non-GAAP related notes:
|
(s)
|
|
Represents the impact from the fluctuation in exchange rates
between all foreign currency denominated amounts and the United
States dollar. Constant currency results exclude any benefit or
loss caused by foreign exchange fluctuations between foreign
currencies and the United States dollar, net of foreign currency
hedges, which would not have occurred if there had been a constant
exchange rate. We believe that this measure provides management
and investors with information about operating results and trends
that eliminates currency volatility and provides greater clarity
regarding, and increases the comparability of, our underlying
results and trends.
|
|
|
|
(t)
|
|
Represents a non-cash goodwill impairment charge related to our
Business Solutions reporting unit. The impairment primarily resulted
from a decrease in projected revenue growth rates and EBITDA
margins. These projections were reevaluated due to the declines in
revenues and operating results recognized in the fourth quarter of
2017, which were significantly below management's expectations.
Additionally, as disclosed in prior Annual Reports on Form 10-K and
Quarterly Reports on Form 10-Q, the total estimated fair value of
the Business Solutions reporting unit previously included value
derived from strategies to optimize United States cash flow
management and global liquidity by utilizing international cash
balances (including balances generated by other operating segments)
to initially fund global principal payouts for Business Solutions
transactions initiated in the United States that would have been
available to certain market participants. However, the December 2017
enactment of tax reform into United States law ("Tax Act")
eliminated any fair value associated with these cash management
strategies. This charge has been excluded from segment operating
income, as this charge has 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. We believe that, by
excluding the effects of significant charges associated with
non-cash impairment charges that can impact operating trends,
management and investors are provided with a measure that increases
the comparability of our underlying operating results.
|
|
|
|
(u)
|
|
Represents the impact from an accrual for a consent order with the
New York State Department of Financial Services ("NYDFS") related to
matters identified as part of the Joint Settlement Agreements
(referred to above as the "NYDFS Consent Order" or the "NYDFS
Settlement"), as described in our Form 8-K filed with the Securities
and Exchange Commission on January 4, 2018. Amounts related to the
NYDFS Consent Order were recognized in the second and fourth
quarters of 2017, and the expenses had no related income tax
benefit. These expenses have been excluded from segment operating
income, as these expenses are 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. We believe that, by
excluding the effects of significant charges associated with the
settlement of litigation that can impact operating trends,
management and investors are provided with a measure that increases
the comparability of our underlying operating results.
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(v)
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Represents the impact from the settlement agreements related to
(1) a Deferred Prosecution Agreement with the United States
Department of Justice, and the United States Attorney's Offices
for the Eastern and Middle Districts of Pennsylvania, the Central
District of California, and the Southern District of Florida, (2)
a Stipulated Order for Permanent Injunction and Final Judgment
with the United States Federal Trade Commission ("FTC"), and (3) a
Consent to the Assessment of Civil Money Penalty with the
Financial Crimes Enforcement Network of the United States
Department of Treasury (referred to above, collectively, as the
"Joint Settlement Agreements"), to resolve the respective
investigations of those agencies, as described in our Form 8-K
filed with the Securities and Exchange Commission on January 20,
2017, and related matters. Amounts related to these matters were
recognized in the second, third, and fourth quarters of 2016 and
the full year 2016 results. Additionally, in the third quarter of
2017, we recorded an additional accrual in the amount of $8
million related to an independent compliance auditor, pursuant to
the terms of the Joint Settlement Agreements. These expenses have
been excluded from our segment operating income, as these expenses
are 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. Additionally, income tax benefit was adjusted
in the fourth quarter of 2016 to reflect the revised
determination, based on final agreement terms. We believe that, by
excluding the effects of significant charges associated with the
settlement of litigation that can impact operating trends,
management and investors are provided with a measure that
increases the comparability of our underlying operating results.
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(w)
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Represents the expenses incurred to transform our operating model,
focusing on technology transformation, network productivity,
customer and agent process optimization, and organizational
redesign to better drive efficiencies and growth initiatives ("WU
Way business transformation expenses"). Amounts related to the WU
Way business transformation expenses were recognized beginning in
the second quarter of 2016, and each subsequent quarter in 2017.
As of December 31, 2017, expenses associated with the WU Way
initiative were effectively complete. These expenses have been
excluded from our segment operating income, as these expenses are
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. We believe that, by excluding the effects of
significant charges associated with the transformation of our
operating model that can impact operating trends, management and
investors are provided with a measure that increases the
comparability of our other underlying operating results. Although
the expenses related to the WU Way are specific to that
initiative, the types of expenses related to the WU Way initiative
are similar to expenses that the Company has previously incurred
and can reasonably be expected to incur in the future.
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(x)
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Represents the estimated impact to our provision for income taxes
related to the Tax Act, primarily due to a tax on previously
undistributed earnings of certain foreign subsidiaries, partially
offset by the remeasurement of deferred tax assets and liabilities
and other tax balances to reflect the lower federal income tax rate,
among other effects. Certain of the Tax Act's impacts have been
provisionally estimated and will likely be adjusted in future
periods as we complete our accounting for these matters in 2018, in
accordance with a recent staff accounting bulletin issued by the SEC.
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(y)
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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.
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(z)
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For the three months and twelve months ended December 31, 2017,
non-GAAP diluted weighted-average shares outstanding includes 3.3
million and 3.0 million shares, respectively. These shares are
excluded from the Company's GAAP diluted weighted-average shares
outstanding, as they are anti-dilutive due to the Company's GAAP net
losses for the respective periods.
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Other notes:
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(aa)
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Geographic split for transactions and revenue, including
transactions initiated through westernunion.com, is determined
entirely based upon the region where the money transfer is
initiated.
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(bb)
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Represents the North America (United States and Canada) ("NA")
region of our Consumer-to-Consumer segment.
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(cc)
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Represents the Europe and the Russia/Commonwealth of Independent
States ("EU & CIS") region of our Consumer-to-Consumer segment.
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(dd)
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Represents the Middle East, Africa, and South Asia ("MEASA")
region of our Consumer-to-Consumer segment, including India and
certain South Asian countries, which consist of Bangladesh,
Bhutan, Maldives, Nepal, and Sri Lanka.
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(ee)
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Represents the Latin America and the Caribbean ("LACA") region of
our Consumer-to-Consumer segment, including Mexico.
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(ff)
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Represents the East Asia and Oceania ("APAC") region of our
Consumer-to-Consumer segment.
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(gg)
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Represents transactions, including westernunion.com transactions
initiated outside the United States, between and within foreign
countries (including Canada and Mexico). Excludes all transactions
originated in the United States.
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(hh)
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Represents transactions originated in the United States, including
intra-country transactions and westernunion.com transactions
initiated from the United States.
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(ii)
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Represents transactions initiated and funded on Western Union
branded websites and mobile apps (referred to throughout as
"westernunion.com").
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(jj)
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On January 1, 2018, the Company adopted an accounting
pronouncement that requires the non-service costs of a defined
benefit pension plan to be presented outside a subtotal of income
from operations, with adoption retrospective for periods
previously presented. The adoption of this standard resulted in
increases to operating income in the amount of $0.6 million for
each quarter of 2017, $2.4 million for the year ended December 31,
2017, $0.8 million for each of the first, second, and fourth
quarters of 2016, $0.9 million for the third quarter of 2016, and
$3.3 million for the year ended December 31, 2016.
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