UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): July 26, 2023 |
THE WESTERN UNION COMPANY
(Exact name of Registrant as Specified in Its Charter)
Delaware |
001-32903 |
20-4531180 |
||
(State or Other Jurisdiction |
(Commission File Number) |
(IRS Employer |
||
|
|
|
|
|
7001 EAST BELLEVIEW AVENUE |
|
|||
Denver, Colorado |
|
80237 |
||
(Address of Principal Executive Offices) |
|
(Zip Code) |
Registrant’s Telephone Number, Including Area Code: 866 405-5012 |
|
(Former Name or Former Address, if Changed Since Last Report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
|
|
Trading |
|
|
Common Stock, $0.01 Par Value |
|
WU |
|
The New York Stock Exchange |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
On July 26, 2023, The Western Union Company (the “Company”) issued a press release relating to the Company’s earnings for the second quarter of 2023 (the “Earnings Release”). A copy of the Earnings Release is attached hereto as Exhibit 99.1. The information furnished under this Item 2.02, including Exhibit 99.1, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Securities Exchange Act”), nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”), except as may be expressly set forth by specific reference to such filing.
Item 9.01. Financial Statements and Exhibits.
(d) Exhibits.
|
|
Exhibit Number |
Description of Exhibit |
|
|
99.1 |
Earnings press release issued by The Western Union Company on July 26, 2023. |
|
|
101 |
Inline XBRL Document Set for the Cover Page from this Current Report on Form 8-K, formatted as Inline XBRL |
|
|
104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document) |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
|
|
|
|
Dated: July 26, 2023 |
|
THE WESTERN UNION COMPANY |
|
|
|
By: |
/s/ DARREN A. DRAGOVICH |
|
|
Name: |
Darren A. Dragovich |
|
|
Title: |
Vice President and Secretary |
Exhibit 99.1
FOR IMMEDIATE RELEASE |
|
|
Western Union Reports Second Quarter 2023 Results
DENVER, July 26, 2023 – The Western Union Company (the “Company”) (NYSE: WU) today reported second quarter 2023 results.
The Company’s second-quarter revenue of $1.17 billion grew 3% on a reported basis, or 9% on a constant currency basis excluding the contribution from Business Solutions, compared to the prior year period. Argentinian inflation benefited revenue by approximately three percentage points. A revenue increase in Iraq was partially offset by investments in the Company’s ‘Evolve 2025’ strategy.
“Our progress continued into the second quarter, with strong results that exceeded our expectations,” said Devin McGranahan, President and Chief Executive Officer of Western Union. “Growth in our C2C transactions was the highest since 2021, primarily driven by our branded digital go-to-market program. We also experienced an increase in revenue from Iraq arising from prior changes in Iraqi monetary policies.”
McGranahan added, “These results reflect the advancement of our ‘Evolve 2025’ strategy and demonstrate continued momentum building across channels and geographies.”
GAAP EPS in the second quarter was $0.47 compared to $0.50 in the prior year period. The year-over-year decrease was due to lower operating profit, including costs related to the Company’s operating expense redeployment program in the current period. Adjusted EPS in the second quarter was $0.51 and flat compared to the prior year period, with the current year period benefiting from a lower share count and a lower adjusted effective tax rate, partially offset by lower pre-tax profit.
Q2 Business Results
represented 21% and 28% of total C2C revenues and transactions, respectively. Transactions accelerated and grew 12% in the quarter driven by the Company’s updated go-to-market strategy.
Q2 Financial Results
2023 Outlook
Today, the Company raised its 2023 full-year revenue and EPS outlook due primarily to business performance in Iraq. The outlook assumes no material changes in macroeconomic conditions, including changes in foreign currencies or Argentinian inflation.
The 2023 outlook is as follows:
|
Revised 2023 Outlook |
Previous 2023 Outlook |
||
GAAP |
Adjusted |
GAAP |
Adjusted |
|
Revenue1 |
(5%) to (3%) |
(1%) to 1% |
(9%) to (7%) |
(4%) to (2%) |
Operating Margin |
18% to 20% |
19% to 21% |
18% to 20% |
19% to 21% |
EPS |
$1.63 to $1.73 |
$1.65 to $1.75 |
$1.53 to $1.63 |
$1.55 to $1.65 |
1 Adjusted revenue excludes currency impact, Argentinian Inflation, and Business Solutions
The Company has been in regular discussions with policymakers in both the U.S. and Iraq about the elevated remittance volumes flowing through its network in Iraq during the second quarter. Due to recent U.S. government actions, including those announced on July 19, 2023, impacting fourteen Iraqi banks, some of whom were the Company’s agents, the ongoing and future application of the Company’s own compliance and risk controls, and future regulatory and policy changes, the Company expects these volumes to be significantly lower going forward. As a result, the Company has not included any of the elevated remittance volume from Iraq in its outlook after July.
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.
Reconciliations of non-GAAP to comparable GAAP measures are available in the accompanying schedules and in the “Investor Relations” section of the Company’s website at https://ir.westernunion.com.
GAAP figures reflect an expected partial year of Business Solutions ownership, including contractual payments to the buyers, representing profits between the first and third closings. Adjusted constant currency revenue growth metrics exclude contributions from Business Solutions. Adjusted operating profit metrics exclude the following items, as applicable: contributions from Business Solutions, operating expense redeployment program costs, acquisition and separation costs, and Russia and Belarus exit costs. Adjusted effective tax rate and adjusted earnings per share metrics exclude the following items and the related taxes, as applicable: Business Solutions gain, operating expense redeployment program costs, acquisition and separation costs, Russia and Belarus exit costs, and the reversal of significant uncertain tax positions.
Additional Statistics
Additional key statistics for the quarter and historical trends can be found in the supplemental tables included with this press release. All amounts included in the supplemental tables to this press release are rounded to the nearest tenth of a million, except as otherwise noted. As a result, the percentage changes and margins disclosed herein may not recalculate precisely using the rounded amounts provided.
Environmental, Social, and Governance (ESG)
Western Union is committed to making a positive impact. For more details on how Western Union is addressing some of the most pressing issues facing society, our shared environment, and our Company, please view our latest ESG report: https://corporate.westernunion.com/esg.
Investor and Analyst Conference Call and Presentation
The Company will host a conference call and webcast at 4:30 p.m. ET today.
The webcast and presentation will be available at https://ir.westernunion.com. Registration for the event is required, so please register at least fifteen minutes prior to the scheduled start time. A webcast replay will be available shortly after the event.
To listen to the conference call via telephone in the U.S., dial +1 (719) 359-4580 fifteen minutes prior to the start of the call, followed by the meeting ID, which is 910 5837 9984 and the passcode, which is 534903. To listen to the conference call via telephone outside the U.S., dial the country number from the international directory, followed by the meeting ID, which is 910 5837 9984 and the passcode, which is 534903.
Safe Harbor Compliance Statement for Forward-Looking Statements
This press release contains certain statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not guarantees of future performance and involve certain risks, uncertainties, and assumptions that are difficult to predict. Actual outcomes and results may differ materially from those expressed in, or implied by, our forward-looking statements. Words such as "expects," "intends," "targets," "anticipates," "believes," "estimates," "guides," "provides guidance," "provides outlook," "projects," "designed to," 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, 2022. 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 downturns and trade disruptions, or significantly slower growth or declines in the money transfer, payment service, and other markets in which we operate, including downturns or declines related to interruptions in migration patterns or other events, such as public health emergencies, epidemics, or pandemics, such as COVID-19, civil unrest, war, terrorism, natural disasters, or non-performance by our banks, lenders, insurers, or other financial services providers; failure to compete effectively in the money transfer and payment service industry, including among other things, with respect to price or customer experience, with global and niche or corridor money transfer providers, banks and other money transfer and payment service providers, including digital, mobile and internet-based services, card associations, and card-based payment providers, and with digital currencies and related exchanges and protocols, and other innovations in technology and business models; geopolitical tensions, political conditions and related actions, including trade restrictions and government sanctions, which may adversely affect our business and economic conditions as a whole, including interruptions of United States or other government relations with countries in which we have or are implementing significant business relationships with agents, clients, or other partners; deterioration in customer confidence in our business, or in money transfer and payment service providers generally; failure to maintain our agent network and business relationships under terms consistent with or more advantageous to us than those currently in place; 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; mergers, acquisitions, and the integration of acquired businesses and technologies into our Company, divestitures, and the failure to realize anticipated financial benefits from these transactions, and events requiring us to write down our goodwill; decisions to change our business mix; 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 tax laws, or their interpretation, any subsequent regulation, and unfavorable resolution of tax contingencies; 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; our ability to realize the anticipated benefits from restructuring-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 attract and retain qualified key employees and to manage our workforce successfully; failure to manage credit and fraud risks presented by our agents, clients, and consumers; adverse rating actions by credit rating agencies; our ability to protect our trademarks, patents, copyrights, and other intellectual property rights, and to defend ourselves against potential intellectual property infringement claims; 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 and abroad, 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, immigration, and sustainability reporting including climate-related reporting; liabilities, increased costs or loss of business and unanticipated developments resulting from governmental investigations and consent agreements with or enforcement actions by regulators; liabilities resulting from litigation, including class-action lawsuits and similar matters, and regulatory enforcement actions, including costs, expenses, settlements, and judgments; failure to comply with regulations and evolving industry standards regarding consumer privacy, data use, the transfer of personal data between jurisdictions, and information security, including with respect to the General Data Protection Regulation in the European Union and the California Consumer Privacy Act; failure to comply with the Dodd-Frank Wall Street Reform and Consumer Protection 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 and derivative transactions; 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 catastrophic events and management’s ability to identify and manage these and other risks.
# # #
About Western Union
The Western Union Company (NYSE: WU) is committed to helping people around the world who aspire to build financial futures for themselves, their loved ones and their communities. Our leading cross-border, cross-currency money movement, payments and digital financial services empower consumers, businesses, financial institutions and governments—across more than 200 countries and territories and nearly 130 currencies—to connect with billions of bank accounts, millions of digital wallets and cards, and a global footprint of hundreds of thousands of retail locations. Our goal is to offer accessible financial services that help people and communities prosper. For more information, visit www.westernunion.com.
WU-G
Contacts:
Media Relations:
Claire Treacy
media@westernunion.com
Investor Relations:
Tom Hadley
WesternUnion.IR@westernunion.com
THE WESTERN UNION COMPANY
KEY STATISTICS
(Unaudited)
|
|
Notes* |
|
2Q22 |
|
3Q22 |
|
|
4Q22 |
|
|
FY2022 |
|
1Q23 |
|
2Q23 |
|
YTD 2Q23 |
|||||
Consolidated Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues (GAAP) - YoY % change |
|
|
|
|
(12)% |
|
|
(15)% |
|
|
(15)% |
|
|
(12)% |
|
|
(10)% |
|
|
3% |
|
|
(4)% |
Adjusted revenues (non-GAAP) - YoY % change |
|
(a) |
|
|
(4)% |
|
|
(6)% |
|
|
(6)% |
|
|
(4)% |
|
|
(1)% |
|
|
9% |
|
|
4% |
Operating margin (GAAP) |
|
|
|
|
23.2% |
|
|
21.3% |
|
|
13.9% |
|
|
19.8% |
|
|
19.7% |
|
|
20.7% |
|
|
20.3% |
Adjusted operating margin (non-GAAP) |
|
(b) |
|
|
23.3% |
|
|
20.6% |
|
|
15.8% |
|
|
20.4% |
|
|
20.5% |
|
|
21.8% |
|
|
21.2% |
Adjusted EBITDA margin (non-GAAP) |
|
(b) |
|
|
27.5% |
|
|
24.9% |
|
|
20.2% |
|
|
24.7% |
|
|
25.1% |
|
|
25.7% |
|
|
25.4% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer-to-Consumer (C2C) Segment Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues (GAAP) - YoY % change |
|
|
|
|
(9)% |
|
|
(11)% |
|
|
(11)% |
|
|
(9)% |
|
|
(6)% |
|
|
4% |
|
|
(1)% |
Adjusted revenues (non-GAAP) - YoY % change |
|
(f) |
|
|
(6)% |
|
|
(8)% |
|
|
(9)% |
|
|
(6)% |
|
|
(5)% |
|
|
5% |
|
|
0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transactions (in millions) |
|
|
|
|
68.2 |
|
|
66.9 |
|
|
69.3 |
|
|
274.1 |
|
|
65.3 |
|
|
70.6 |
|
|
135.9 |
Transactions - YoY % change |
|
|
|
|
(13)% |
|
|
(12)% |
|
|
(12)% |
|
|
(10)% |
|
|
(6)% |
|
|
4% |
|
|
(1)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cross-border principal, as reported - YoY % change |
|
|
|
|
(12)% |
|
|
(13)% |
|
|
(12)% |
|
|
(10)% |
|
|
(3)% |
|
|
17% |
|
|
7% |
Cross-border principal (constant currency) - YoY % change |
|
(g) |
|
|
(9)% |
|
|
(9)% |
|
|
(9)% |
|
|
(7)% |
|
|
(1)% |
|
|
18% |
|
|
8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating margin |
|
|
|
|
22.0% |
|
|
19.7% |
|
|
14.1% |
|
|
19.2% |
|
|
18.9% |
|
|
21.5% |
|
|
20.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branded Digital revenues (GAAP) - YoY % change |
|
(gg) |
|
|
(1)% |
|
|
(8)% |
|
|
(8)% |
|
|
(3)% |
|
|
(7)% |
|
|
(2)% |
|
|
(5)% |
Branded Digital foreign currency translation impact |
|
(i) |
|
|
2% |
|
|
3% |
|
|
2% |
|
|
2% |
|
|
1% |
|
|
0% |
|
|
1% |
Adjusted Branded Digital revenues (non-GAAP) - YoY % change |
|
(gg) |
|
|
1% |
|
|
(5)% |
|
|
(6)% |
|
|
(1)% |
|
|
(6)% |
|
|
(2)% |
|
|
(4)% |
Branded Digital transactions - YoY % change |
|
(gg) |
|
|
(3)% |
|
|
(1)% |
|
|
2% |
|
|
0% |
|
|
7% |
|
|
12% |
|
|
9% |
THE WESTERN UNION COMPANY
KEY STATISTICS
(Unaudited)
|
|
Notes* |
|
2Q22 |
|
3Q22 |
|
4Q22 |
|
FY2022 |
|
1Q23 |
|
2Q23 |
|
YTD 2Q23 |
C2C Segment Regional Metrics - YoY % change |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA region revenues (GAAP) |
|
(aa), (bb) |
|
(2)% |
|
(5)% |
|
(7)% |
|
(4)% |
|
(8)% |
|
(8)% |
|
(8)% |
NA region foreign currency translation impact |
|
(i) |
|
0% |
|
0% |
|
0% |
|
0% |
|
0% |
|
1% |
|
0% |
Adjusted NA region revenues (non-GAAP) |
|
(aa), (bb) |
|
(2)% |
|
(5)% |
|
(7)% |
|
(4)% |
|
(8)% |
|
(7)% |
|
(8)% |
NA region transactions |
|
(aa), (bb) |
|
(6)% |
|
(5)% |
|
(2)% |
|
(5)% |
|
1% |
|
4% |
|
3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EU & CIS region revenues (GAAP) |
|
(aa), (cc) |
|
(21)% |
|
(23)% |
|
(23)% |
|
(20)% |
|
(16)% |
|
(12)% |
|
(14)% |
EU & CIS region foreign currency translation impact |
|
(i) |
|
5% |
|
7% |
|
6% |
|
5% |
|
3% |
|
2% |
|
2% |
Adjusted EU & CIS region revenues (non-GAAP) |
|
(aa), (cc) |
|
(16)% |
|
(16)% |
|
(17)% |
|
(15)% |
|
(13)% |
|
(10)% |
|
(12)% |
EU & CIS region transactions |
|
(aa), (cc) |
|
(30)% |
|
(32)% |
|
(31)% |
|
(25)% |
|
(23)% |
|
(1)% |
|
(13)% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
MEASA region revenues (GAAP) |
|
(aa), (dd) |
|
(4)% |
|
(5)% |
|
(9)% |
|
(4)% |
|
5% |
|
66% |
|
35% |
MEASA region foreign currency translation impact |
|
(i) |
|
1% |
|
2% |
|
2% |
|
2% |
|
1% |
|
1% |
|
1% |
Adjusted MEASA region revenues (non-GAAP) |
|
(aa), (dd) |
|
(3)% |
|
(3)% |
|
(7)% |
|
(2)% |
|
6% |
|
67% |
|
36% |
MEASA region transactions |
|
(aa), (dd) |
|
(3)% |
|
(1)% |
|
(5)% |
|
(1)% |
|
(3)% |
|
8% |
|
3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LACA region revenues (GAAP) |
|
(aa), (ee) |
|
2% |
|
0% |
|
11% |
|
4% |
|
15% |
|
6% |
|
10% |
LACA region foreign currency translation impact |
|
(i) |
|
2% |
|
4% |
|
2% |
|
3% |
|
2% |
|
2% |
|
3% |
Adjusted LACA region revenues (non-GAAP) |
|
(aa), (ee) |
|
4% |
|
4% |
|
13% |
|
7% |
|
17% |
|
8% |
|
13% |
LACA region transactions |
|
(aa), (ee) |
|
4% |
|
3% |
|
8% |
|
5% |
|
9% |
|
8% |
|
9% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
APAC region revenues (GAAP) |
|
(aa), (ff) |
|
(10)% |
|
(16)% |
|
(20)% |
|
(13)% |
|
(8)% |
|
(7)% |
|
(7)% |
APAC region foreign currency translation impact |
|
(i) |
|
4% |
|
5% |
|
6% |
|
4% |
|
3% |
|
3% |
|
3% |
Adjusted APAC region revenues (non-GAAP) |
|
(aa), (ff) |
|
(6)% |
|
(11)% |
|
(14)% |
|
(9)% |
|
(5)% |
|
(4)% |
|
(4)% |
APAC region transactions |
|
(aa), (ff) |
|
(11)% |
|
(11)% |
|
(12)% |
|
(12)% |
|
(2)% |
|
1% |
|
(1)% |
THE WESTERN UNION COMPANY
KEY STATISTICS
(Unaudited)
|
|
Notes* |
|
2Q22 |
|
3Q22 |
|
4Q22 |
|
FY2022 |
|
1Q23 |
|
2Q23 |
|
YTD 2Q23 |
% of C2C Revenue |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NA region revenues |
|
(aa), (bb) |
|
40% |
|
40% |
|
39% |
|
40% |
|
38% |
|
35% |
|
37% |
EU & CIS region revenues |
|
(aa), (cc) |
|
28% |
|
28% |
|
27% |
|
28% |
|
26% |
|
24% |
|
25% |
MEASA region revenues |
|
(aa), (dd) |
|
16% |
|
16% |
|
16% |
|
16% |
|
19% |
|
26% |
|
22% |
LACA region revenues |
|
(aa), (ee) |
|
10% |
|
10% |
|
12% |
|
10% |
|
11% |
|
10% |
|
10% |
APAC region revenues |
|
(aa), (ff) |
|
6% |
|
6% |
|
6% |
|
6% |
|
6% |
|
5% |
|
6% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Branded Digital revenues |
|
(aa), (gg) |
|
22% |
|
21% |
|
21% |
|
22% |
|
22% |
|
21% |
|
21% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other (primarily bill payments businesses in Argentina and the United States and money orders) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Revenues (GAAP) - YoY % change |
|
|
|
19% |
|
0% |
|
20% |
|
12% |
|
23% |
|
10% |
|
16% |
Operating margin |
|
|
|
40.1% |
|
33.4% |
|
35.5% |
|
35.4% |
|
38.6% |
|
22.0% |
|
30.3% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
% of Total Company Revenue (GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer-to-Consumer segment revenues |
|
|
|
90% |
|
90% |
|
90% |
|
89% |
|
91% |
|
92% |
|
91% |
Business Solutions segment revenues |
|
|
|
3% |
|
4% |
|
3% |
|
5% |
|
1% |
|
1% |
|
1% |
Other revenues |
|
|
|
7% |
|
6% |
|
7% |
|
6% |
|
8% |
|
7% |
|
8% |
* See the “Notes to Key Statistics” section of the press release for the applicable Note references and the reconciliation of non-GAAP financial measures, unless already reconciled herein.
THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(in millions, except per share amounts)
|
|
Three Months Ended |
|
Six Months Ended |
||||||||||||
|
|
June 30, |
|
June 30, |
||||||||||||
|
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||
Revenues |
|
$ |
1,170.0 |
|
$ |
1,138.3 |
|
3% |
|
$ |
2,206.9 |
|
$ |
2,294.0 |
|
(4)% |
Expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cost of services |
|
|
698.9 |
|
|
653.0 |
|
7% |
|
|
1,328.4 |
|
|
1,308.1 |
|
2% |
Selling, general, and administrative |
|
|
228.5 |
|
|
221.3 |
|
3% |
|
|
431.2 |
|
|
484.4 |
|
(11)% |
Total expenses |
|
|
927.4 |
|
|
874.3 |
|
6% |
|
|
1,759.6 |
|
|
1,792.5 |
|
(2)% |
Operating income |
|
|
242.6 |
|
|
264.0 |
|
(8)% |
|
|
447.3 |
|
|
501.5 |
|
(11)% |
Other income/(expense): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on divestiture of business (a) |
|
|
— |
|
|
— |
|
(b) |
|
|
— |
|
|
151.4 |
|
(b) |
Interest income |
|
|
4.2 |
|
|
1.8 |
|
(b) |
|
|
7.4 |
|
|
2.4 |
|
(b) |
Interest expense |
|
|
(27.0) |
|
|
(24.8) |
|
9% |
|
|
(52.0) |
|
|
(49.6) |
|
5% |
Other expense, net |
|
|
(3.4) |
|
|
(4.8) |
|
(30)% |
|
|
(5.3) |
|
|
(7.3) |
|
(26)% |
Total other income/(expense), net |
|
|
(26.2) |
|
|
(27.8) |
|
(6)% |
|
|
(49.9) |
|
|
96.9 |
|
(b) |
Income before income taxes |
|
|
216.4 |
|
|
236.2 |
|
(8)% |
|
|
397.4 |
|
|
598.4 |
|
(34)% |
Provision for income taxes |
|
|
40.2 |
|
|
42.2 |
|
(5)% |
|
|
69.4 |
|
|
111.1 |
|
(38)% |
Net income |
|
$ |
176.2 |
|
$ |
194.0 |
|
(9)% |
|
$ |
328.0 |
|
$ |
487.3 |
|
(33)% |
Earnings per share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.47 |
|
$ |
0.50 |
|
(6)% |
|
$ |
0.88 |
|
$ |
1.25 |
|
(30)% |
Diluted |
|
$ |
0.47 |
|
$ |
0.50 |
|
(6)% |
|
$ |
0.87 |
|
$ |
1.25 |
|
(30)% |
Weighted-average shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
|
375.0 |
|
|
386.7 |
|
|
|
|
374.7 |
|
|
389.9 |
|
|
Diluted |
|
|
375.6 |
|
|
387.6 |
|
|
|
|
375.6 |
|
|
391.0 |
|
|
_________________________________________________
THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(in millions, except per share amounts)
|
|
June 30, |
|
December 31, |
||
|
|
2023 |
|
2022 |
||
Assets |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,585.9 |
|
$ |
1,285.9 |
Settlement assets |
|
|
3,328.1 |
|
|
3,486.8 |
Property and equipment, net of accumulated depreciation of $449.7 and $512.8, respectively |
|
|
96.3 |
|
|
109.6 |
Goodwill |
|
|
2,034.6 |
|
|
2,034.6 |
Other intangible assets, net of accumulated amortization of $655.7 and $616.3, respectively |
|
|
430.3 |
|
|
457.9 |
Other assets |
|
|
771.6 |
|
|
859.9 |
Assets held for sale (a) |
|
|
240.6 |
|
|
261.6 |
Total assets |
|
$ |
8,487.4 |
|
$ |
8,496.3 |
Liabilities and stockholders' equity |
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
Accounts payable and accrued liabilities |
|
$ |
418.2 |
|
$ |
464.0 |
Settlement obligations |
|
|
3,328.1 |
|
|
3,486.8 |
Income taxes payable |
|
|
635.4 |
|
|
725.3 |
Deferred tax liability, net |
|
|
153.9 |
|
|
158.5 |
Borrowings |
|
|
2,813.0 |
|
|
2,616.8 |
Other liabilities |
|
|
350.8 |
|
|
384.6 |
Liabilities associated with assets held for sale (a) |
|
|
161.5 |
|
|
182.5 |
Total liabilities |
|
|
7,860.9 |
|
|
8,018.5 |
|
|
|
|
|
|
|
Stockholders' equity: |
|
|
|
|
|
|
Preferred stock, $1.00 par value; 10 shares authorized; no shares issued |
|
|
— |
|
|
— |
Common stock, $0.01 par value; 2,000 shares authorized; 374.5 shares and 373.5 shares issued and outstanding as of June 30, 2023 and December 31, 2022, respectively |
|
|
3.7 |
|
|
3.7 |
Capital surplus |
|
|
1,013.6 |
|
|
995.9 |
Accumulated deficit |
|
|
(210.4) |
|
|
(353.9) |
Accumulated other comprehensive loss |
|
|
(180.4) |
|
|
(167.9) |
Total stockholders' equity |
|
|
626.5 |
|
|
477.8 |
Total liabilities and stockholders' equity |
|
$ |
8,487.4 |
|
$ |
8,496.3 |
_________________________________________________
THE WESTERN UNION COMPANY
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(in millions)
|
|
Six Months Ended |
||||
|
|
June 30, |
||||
|
|
2023 |
|
2022 |
||
Cash flows from operating activities |
|
|
|
|
|
|
Net income |
|
$ |
328.0 |
|
$ |
487.3 |
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
|
Depreciation |
|
|
20.1 |
|
|
22.6 |
Amortization |
|
|
72.4 |
|
|
70.1 |
Gain on divestiture of business, excluding transaction costs |
|
|
— |
|
|
(155.8) |
Other non-cash items, net |
|
|
35.6 |
|
|
32.8 |
Increase/(decrease) in cash, excluding the effects of divestitures, resulting from changes in: |
|
|
|
|
|
|
Other assets |
|
|
(52.7) |
|
|
(131.2) |
Accounts payable and accrued liabilities |
|
|
(52.0) |
|
|
19.6 |
Income taxes payable |
|
|
(86.4) |
|
|
(20.5) |
Other liabilities |
|
|
(1.0) |
|
|
(18.1) |
Net cash provided by operating activities |
|
|
264.0 |
|
|
306.8 |
Cash flows from investing activities |
|
|
|
|
|
|
Payments for capitalized contract costs |
|
|
(32.9) |
|
|
(26.3) |
Payments for internal use software |
|
|
(46.0) |
|
|
(42.7) |
Purchases of property and equipment |
|
|
(11.2) |
|
|
(15.3) |
Purchases of settlement investments |
|
|
(198.3) |
|
|
(495.3) |
Proceeds from the sale of settlement investments |
|
|
66.8 |
|
|
290.2 |
Maturities of settlement investments |
|
|
54.3 |
|
|
84.4 |
Purchases of non-settlement investments |
|
|
— |
|
|
(400.0) |
Proceeds from the sale of non-settlement investments |
|
|
100.0 |
|
|
— |
Proceeds from divestiture, net of cash divested |
|
|
— |
|
|
896.4 |
Other investing activities |
|
|
2.2 |
|
|
0.9 |
Net cash provided by/(used in) investing activities |
|
|
(65.1) |
|
|
292.3 |
Cash flows from financing activities |
|
|
|
|
|
|
Cash dividends and dividend equivalents paid |
|
|
(178.7) |
|
|
(184.8) |
Common stock repurchased |
|
|
(6.0) |
|
|
(185.5) |
Net proceeds from/(repayments of) commercial paper |
|
|
494.6 |
|
|
(15.0) |
Principal payments on borrowings |
|
|
(300.0) |
|
|
(300.0) |
Proceeds from exercise of options |
|
|
0.3 |
|
|
9.4 |
Net change in settlement obligations |
|
|
(619.8) |
|
|
(112.1) |
Other financing activities |
|
|
0.1 |
|
|
— |
Net cash used in financing activities |
|
|
(609.5) |
|
|
(788.0) |
Net change in cash and cash equivalents, including settlement, and restricted cash |
|
|
(410.6) |
|
|
(188.9) |
Cash and cash equivalents, including settlement, and restricted cash at beginning of period |
|
|
2,040.7 |
|
|
2,110.9 |
Cash and cash equivalents, including settlement, and restricted cash at end of period |
|
$ |
1,630.1 |
|
$ |
1,922.0 |
|
|
|
|
|
|
|
|
|
June 30, |
||||
|
|
2023 |
|
2022 |
||
Reconciliation of balance sheet cash and cash equivalents to cash flows: |
|
|
|
|
|
|
Cash and cash equivalents on balance sheet |
|
$ |
1,585.9 |
|
$ |
1,201.9 |
Settlement cash and cash equivalents |
|
|
11.1 |
|
|
602.7 |
Restricted cash in Other assets |
|
|
33.1 |
|
|
40.4 |
Cash and cash equivalents included in Assets held for sale |
|
|
— |
|
|
77.0 |
Cash and cash equivalents, including settlement, and restricted cash at end of period |
|
$ |
1,630.1 |
|
$ |
1,922.0 |
THE WESTERN UNION COMPANY
SUMMARY SEGMENT DATA
(Unaudited)
(in millions, unless indicated otherwise)
|
|
|
Three Months Ended |
|
|
Six Months Ended |
||||||||||
|
|
|
June 30, |
|
|
June 30, |
||||||||||
|
|
2023 |
|
2022 |
|
% Change |
|
2023 |
|
2022 |
|
% Change |
||||
Revenues: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer-to-Consumer |
|
$ |
1,072.2 |
|
$ |
1,026.9 |
|
4% |
|
$ |
2,010.5 |
|
$ |
2,025.9 |
|
(1)% |
Business Solutions (a) |
|
|
14.3 |
|
|
35.7 |
|
(60)% |
|
|
29.7 |
|
|
124.8 |
|
(76)% |
Other (b) |
|
|
83.5 |
|
|
75.7 |
|
10% |
|
|
166.7 |
|
|
143.3 |
|
16% |
Total consolidated revenues |
|
$ |
1,170.0 |
|
$ |
1,138.3 |
|
3% |
|
$ |
2,206.9 |
|
$ |
2,294.0 |
|
(4)% |
Segment operating income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer-to-Consumer |
|
$ |
230.7 |
|
$ |
225.6 |
|
2% |
|
$ |
408.5 |
|
$ |
432.8 |
|
(6)% |
Business Solutions (a) |
|
|
1.8 |
|
|
8.3 |
|
(79)% |
|
|
3.7 |
|
|
35.8 |
|
(90)% |
Other (b) |
|
|
18.4 |
|
|
30.3 |
|
(39)% |
|
|
50.5 |
|
|
51.8 |
|
(3)% |
Total segment operating income |
|
|
250.9 |
|
|
264.2 |
|
(5)% |
|
|
462.7 |
|
|
520.4 |
|
(11)% |
Russia/Belarus exit costs (c) |
|
|
— |
|
|
(0.2) |
|
(e) |
|
|
— |
|
|
(11.2) |
|
(e) |
Business Solutions exit costs (c) |
|
|
— |
|
|
— |
|
(e) |
|
|
— |
|
|
(7.7) |
|
(e) |
Operating expense redeployment program costs (d) |
|
|
(8.3) |
|
|
— |
|
(e) |
|
|
(15.4) |
|
|
— |
|
(e) |
Total consolidated operating income |
|
$ |
242.6 |
|
$ |
264.0 |
|
(8)% |
|
$ |
447.3 |
|
$ |
501.5 |
|
(11)% |
Segment operating income margin |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consumer-to-Consumer |
|
|
21.5% |
|
|
22.0% |
|
(0.5)% |
|
|
20.3% |
|
|
21.4% |
|
(1.1)% |
Business Solutions (a) |
|
|
12.1% |
|
|
23.5% |
|
(11.4)% |
|
|
12.4% |
|
|
28.7% |
|
(16.3)% |
Other (b) |
|
|
22.0% |
|
|
40.1% |
|
(18.1)% |
|
|
30.3% |
|
|
36.1% |
|
(5.8)% |
_________________________________________________
THE WESTERN UNION COMPANY
NOTES TO KEY STATISTICS
(Unaudited)
(in millions, unless indicated otherwise)
Western Union’s management believes the non-GAAP financial measures presented within this press release and related tables provide meaningful supplemental information regarding the Company’s results to assist management, investors, analysts, and others in understanding the Company’s financial results and to better analyze operating, profitability, and other financial performance trends in the Company’s underlying business because they provide consistency and comparability to prior periods or eliminate currency volatility, increasing the comparability of the Company's underlying results and trends.
A non-GAAP financial measure should not be considered in isolation or as a substitute for the most comparable GAAP financial measure. A non-GAAP financial measure reflects an additional way of viewing aspects of the Company’s operations that, when viewed with the Company’s GAAP results and the reconciliation to the corresponding GAAP financial measure, provides a more complete understanding of the Company’s business. Users of the financial statements are encouraged to review the Company’s financial statements and publicly-filed reports in their entirety and not to rely on any single financial measure. A reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures is included below, where not previously reconciled above.
|
|
|
Notes |
|
2Q22 |
|
3Q22 |
|
4Q22 |
|
FY2022 |
|
1Q23 |
|
2Q23 |
|
YTD 2Q23 |
|||||||
|
Consolidated Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(a) |
Revenues (GAAP) |
|
|
|
$ |
1,138.3 |
|
$ |
1,089.6 |
|
$ |
1,091.9 |
|
$ |
4,475.5 |
|
$ |
1,036.9 |
|
$ |
1,170.0 |
|
$ |
2,206.9 |
|
Foreign currency translation impact |
|
(i) |
|
|
42.1 |
|
|
60.8 |
|
|
49.4 |
|
|
185.5 |
|
|
35.2 |
|
|
40.6 |
|
|
75.8 |
|
Revenues, constant currency (non-GAAP) |
|
|
|
|
1,180.4 |
|
|
1,150.4 |
|
|
1,141.3 |
|
|
4,661.0 |
|
|
1,072.1 |
|
|
1,210.6 |
|
|
2,282.7 |
|
Less Business Solutions revenues, constant currency (non-GAAP) |
|
(i), (l) |
|
|
(40.1) |
|
|
(50.4) |
|
|
(34.0) |
|
|
(216.4) |
|
|
(16.0) |
|
|
(13.9) |
|
|
(29.9) |
|
Adjusted revenues (non-GAAP) |
|
|
|
$ |
1,140.3 |
|
$ |
1,100.0 |
|
$ |
1,107.3 |
|
$ |
4,444.6 |
|
$ |
1,056.1 |
|
$ |
1,196.7 |
|
$ |
2,252.8 |
|
Prior year revenues (GAAP) |
|
|
|
$ |
1,289.7 |
|
$ |
1,286.3 |
|
$ |
1,284.8 |
|
$ |
5,070.8 |
|
$ |
1,155.7 |
|
$ |
1,138.3 |
|
$ |
2,294.0 |
|
Less prior year revenues from Business Solutions (GAAP) |
|
(l) |
|
|
(99.3) |
|
|
(116.8) |
|
|
(109.2) |
|
|
(421.8) |
|
|
(89.1) |
|
|
(35.7) |
|
|
(124.8) |
|
Adjusted prior year revenues (non-GAAP) |
|
|
|
$ |
1,190.4 |
|
$ |
1,169.5 |
|
$ |
1,175.6 |
|
$ |
4,649.0 |
|
$ |
1,066.6 |
|
$ |
1,102.6 |
|
$ |
2,169.2 |
|
Revenues (GAAP) - YoY % change |
|
|
|
|
(12)% |
|
|
(15)% |
|
|
(15)% |
|
|
(12)% |
|
|
(10)% |
|
|
3% |
|
|
(4)% |
|
Revenues, constant currency (non-GAAP) - YoY% change |
|
|
|
|
(8)% |
|
|
(11)% |
|
|
(11)% |
|
|
(8)% |
|
|
(7)% |
|
|
6% |
|
|
0% |
|
Adjusted revenues (non-GAAP) - YoY % change |
|
|
|
|
(4)% |
|
|
(6)% |
|
|
(6)% |
|
|
(4)% |
|
|
(1)% |
|
|
9% |
|
|
4% |
THE WESTERN UNION COMPANY
NOTES TO KEY STATISTICS
(Unaudited)
(in millions, unless indicated otherwise)
|
|
|
Notes |
|
2Q22 |
|
3Q22 |
|
4Q22 |
|
FY2022 |
|
1Q23 |
|
2Q23 |
|
YTD 2Q23 |
|||||||
|
Consolidated Metrics cont. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(b) |
Operating income (GAAP) |
|
|
|
$ |
264.0 |
|
$ |
231.8 |
|
$ |
151.6 |
|
$ |
884.9 |
|
$ |
204.7 |
|
$ |
242.6 |
|
$ |
447.3 |
|
Acquisition and separation costs |
|
(k) |
|
|
0.9 |
|
|
0.4 |
|
|
1.6 |
|
|
13.9 |
|
|
— |
|
|
2.4 |
|
|
2.4 |
|
Russia/Belarus exit costs |
|
(m) |
|
|
0.2 |
|
|
(0.6) |
|
|
(0.6) |
|
|
10.0 |
|
|
— |
|
|
— |
|
|
— |
|
Operating expense redeployment program costs |
|
(o) |
|
|
N/A |
|
|
N/A |
|
|
21.8 |
|
|
21.8 |
|
|
7.1 |
|
|
8.3 |
|
|
15.4 |
|
Less Business Solutions operating income |
|
(l) |
|
|
(7.9) |
|
|
(15.6) |
|
|
(6.6) |
|
|
(56.6) |
|
|
(1.9) |
|
|
(1.7) |
|
|
(3.6) |
|
Adjusted operating income (non-GAAP) |
|
|
|
$ |
257.2 |
|
$ |
216.0 |
|
$ |
167.8 |
|
$ |
874.0 |
|
$ |
209.9 |
|
$ |
251.6 |
|
$ |
461.5 |
|
Depreciation and amortization |
|
|
|
|
45.9 |
|
|
44.7 |
|
|
46.4 |
|
|
183.8 |
|
|
46.6 |
|
|
45.9 |
|
|
92.5 |
|
Adjusted EBITDA (non-GAAP) |
|
(j) |
|
$ |
303.1 |
|
$ |
260.7 |
|
$ |
214.2 |
|
$ |
1,057.8 |
|
$ |
256.5 |
|
$ |
297.5 |
|
$ |
554.0 |
|
Operating margin (GAAP) |
|
|
|
|
23.2% |
|
|
21.3% |
|
|
13.9% |
|
|
19.8% |
|
|
19.7% |
|
|
20.7% |
|
|
20.3% |
|
Adjusted operating margin (non-GAAP) |
|
|
|
|
23.3% |
|
|
20.6% |
|
|
15.8% |
|
|
20.4% |
|
|
20.5% |
|
|
21.8% |
|
|
21.2% |
|
Adjusted EBITDA margin (non-GAAP) |
|
|
|
|
27.5% |
|
|
24.9% |
|
|
20.2% |
|
|
24.7% |
|
|
25.1% |
|
|
25.7% |
|
|
25.4% |
THE WESTERN UNION COMPANY
NOTES TO KEY STATISTICS
(Unaudited)
(in millions, unless indicated otherwise)
|
|
|
Notes |
|
2Q22 |
|
3Q22 |
|
4Q22 |
|
FY2022 |
|
1Q23 |
|
2Q23 |
|
YTD 2Q23 |
|||||||
(c) |
Net income (GAAP) |
|
|
|
$ |
194.0 |
|
$ |
173.9 |
|
$ |
249.4 |
|
$ |
910.6 |
|
$ |
151.8 |
|
$ |
176.2 |
|
$ |
328.0 |
|
Acquisition and separation costs |
|
(k) |
|
|
0.9 |
|
|
0.4 |
|
|
1.6 |
|
|
13.9 |
|
|
— |
|
|
2.4 |
|
|
2.4 |
|
Business Solutions gain |
|
(l) |
|
|
— |
|
|
— |
|
|
(96.9) |
|
|
(248.3) |
|
|
— |
|
|
— |
|
|
— |
|
Russia/Belarus exit costs |
|
(m) |
|
|
0.2 |
|
|
(0.6) |
|
|
(0.6) |
|
|
10.0 |
|
|
— |
|
|
— |
|
|
— |
|
Operating expense redeployment program costs |
|
(o) |
|
|
N/A |
|
|
N/A |
|
|
21.8 |
|
|
21.8 |
|
|
7.1 |
|
|
8.3 |
|
|
15.4 |
|
Income tax benefit from reversal of significant uncertain tax positions |
|
(n) |
|
|
N/A |
|
|
(13.2) |
|
|
(68.5) |
|
|
(81.7) |
|
|
— |
|
|
— |
|
|
— |
|
Income tax expense from other adjustments |
|
(k), (l), (m), (o) |
|
|
2.0 |
|
|
3.0 |
|
|
14.7 |
|
|
58.4 |
|
|
3.7 |
|
|
3.8 |
|
|
7.5 |
|
Adjusted net income (non-GAAP) |
|
|
|
$ |
197.1 |
|
$ |
163.5 |
|
$ |
121.5 |
|
$ |
684.7 |
|
$ |
162.6 |
|
$ |
190.7 |
|
$ |
353.3 |
THE WESTERN UNION COMPANY
NOTES TO KEY STATISTICS
(Unaudited)
(in millions, unless indicated otherwise)
|
|
|
Notes |
|
2Q22 |
|
3Q22 |
|
4Q22 |
|
FY2022 |
|
1Q23 |
|
2Q23 |
|
YTD 2Q23 |
|||||||
|
Consolidated Metrics cont. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(d) |
Effective tax rate (GAAP) |
|
|
|
|
18% |
|
|
10% |
|
|
(15)% |
|
|
10% |
|
|
16% |
|
|
19% |
|
|
17% |
|
Reversal of significant uncertain tax positions |
|
(n) |
|
|
N/A |
|
|
7% |
|
|
32% |
|
|
8% |
|
|
0% |
|
|
0% |
|
|
0% |
|
Other adjustments |
|
(k), (l), (m), (o) |
|
|
(1)% |
|
|
(2)% |
|
|
(2)% |
|
|
(3)% |
|
|
(2)% |
|
|
(3)% |
|
|
(2)% |
|
Adjusted effective tax rate (non-GAAP) |
|
|
|
|
17% |
|
|
15% |
|
|
15% |
|
|
15% |
|
|
14% |
|
|
16% |
|
|
15% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(e) |
Diluted earnings per share (GAAP) ($- dollars) |
|
|
|
$ |
0.50 |
|
$ |
0.45 |
|
$ |
0.65 |
|
$ |
2.34 |
|
$ |
0.40 |
|
$ |
0.47 |
|
$ |
0.87 |
|
Pretax impacts from the following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acquisition and separation costs |
|
(k) |
|
|
— |
|
|
— |
|
|
— |
|
|
0.03 |
|
|
— |
|
|
0.01 |
|
|
0.01 |
|
Business Solutions gain |
|
(l) |
|
|
— |
|
|
— |
|
|
(0.25) |
|
|
(0.64) |
|
|
— |
|
|
— |
|
|
— |
|
Russia/Belarus exit costs |
|
(m) |
|
|
— |
|
|
— |
|
|
— |
|
|
0.03 |
|
|
— |
|
|
— |
|
|
— |
|
Operating expense redeployment program costs |
|
(o) |
|
|
N/A |
|
|
N/A |
|
|
0.06 |
|
|
0.06 |
|
|
0.02 |
|
|
0.02 |
|
|
0.04 |
|
Income tax expense/(benefit) impacts from the following: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Reversal of significant uncertain tax positions |
|
(n) |
|
|
N/A |
|
|
(0.03) |
|
|
(0.18) |
|
|
(0.21) |
|
|
— |
|
|
— |
|
|
— |
|
Other adjustments |
|
(k), (l), (m), (o) |
|
|
0.01 |
|
|
— |
|
|
0.04 |
|
|
0.15 |
|
|
0.01 |
|
|
0.01 |
|
|
0.02 |
|
Adjusted diluted earnings per share (non-GAAP) ($- dollars) |
|
|
|
$ |
0.51 |
|
$ |
0.42 |
|
$ |
0.32 |
|
$ |
1.76 |
|
$ |
0.43 |
|
$ |
0.51 |
|
$ |
0.94 |
THE WESTERN UNION COMPANY
NOTES TO KEY STATISTICS
(Unaudited)
(in millions, unless indicated otherwise)
|
|
|
Notes |
|
2Q22 |
|
3Q22 |
|
4Q22 |
|
FY2022 |
|
1Q23 |
|
2Q23 |
|
YTD 2Q23 |
|||||||
|
C2C Segment Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(f) |
Revenues (GAAP) |
|
|
|
$ |
1,026.9 |
|
$ |
982.4 |
|
$ |
985.2 |
|
$ |
3,993.5 |
|
$ |
938.3 |
|
$ |
1,072.2 |
|
$ |
2,010.5 |
|
Foreign currency translation impact |
|
(i) |
|
|
28.1 |
|
|
37.1 |
|
|
30.9 |
|
|
116.9 |
|
|
13.8 |
|
|
8.5 |
|
|
22.3 |
|
Revenues, constant currency (non-GAAP) |
|
|
|
$ |
1,055.0 |
|
$ |
1,019.5 |
|
$ |
1,016.1 |
|
$ |
4,110.4 |
|
$ |
952.1 |
|
$ |
1,080.7 |
|
$ |
2,032.8 |
|
Prior year revenues (GAAP) |
|
|
|
$ |
1,127.1 |
|
$ |
1,104.5 |
|
$ |
1,111.5 |
|
$ |
4,394.0 |
|
$ |
999.0 |
|
$ |
1,026.9 |
|
$ |
2,025.9 |
|
Revenues (GAAP) - YoY % change |
|
|
|
|
(9)% |
|
|
(11)% |
|
|
(11)% |
|
|
(9)% |
|
|
(6)% |
|
|
4% |
|
|
(1)% |
|
Adjusted revenues (non-GAAP) - YoY % change |
|
|
|
|
(6)% |
|
|
(8)% |
|
|
(9)% |
|
|
(6)% |
|
|
(5)% |
|
|
5% |
|
|
0% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(g) |
Cross-border principal, as reported ($- billions) |
|
|
|
$ |
23.4 |
|
$ |
23.0 |
|
$ |
23.4 |
|
$ |
93.6 |
|
$ |
23.0 |
|
$ |
27.5 |
|
$ |
50.5 |
|
Foreign currency translation impact |
|
(i) |
|
|
0.9 |
|
|
1.1 |
|
|
0.8 |
|
|
3.3 |
|
|
0.5 |
|
|
0.0 |
|
|
0.5 |
|
Cross-border principal, constant currency ($- billions) |
|
|
|
$ |
24.3 |
|
$ |
24.1 |
|
$ |
24.2 |
|
$ |
96.9 |
|
$ |
23.5 |
|
$ |
27.5 |
|
$ |
51.0 |
|
Prior year cross-border principal, as reported ($- billions) |
|
|
|
$ |
26.6 |
|
$ |
26.5 |
|
$ |
26.5 |
|
$ |
104.1 |
|
$ |
23.8 |
|
$ |
23.4 |
|
$ |
47.2 |
|
Cross-border principal, as reported - YoY % change |
|
|
|
|
(12)% |
|
|
(13)% |
|
|
(12)% |
|
|
(10)% |
|
|
(3)% |
|
|
17% |
|
|
7% |
|
Cross-border principal, constant currency - YoY % change |
|
|
|
|
(9)% |
|
|
(9)% |
|
|
(9)% |
|
|
(7)% |
|
|
(1)% |
|
|
18% |
|
|
8% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business Solutions Segment Metrics |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(h) |
Revenues (GAAP) |
|
|
|
$ |
35.7 |
|
$ |
42.6 |
|
$ |
29.5 |
|
$ |
196.9 |
|
$ |
15.4 |
|
$ |
14.3 |
|
$ |
29.7 |
|
Foreign currency translation impact |
|
(i) |
|
|
4.4 |
|
|
7.8 |
|
|
4.5 |
|
|
19.5 |
|
|
0.6 |
|
|
(0.4) |
|
|
0.2 |
|
Revenues, constant currency (non-GAAP) |
|
|
|
$ |
40.1 |
|
$ |
50.4 |
|
$ |
34.0 |
|
$ |
216.4 |
|
$ |
16.0 |
|
$ |
13.9 |
|
$ |
29.9 |
|
Prior year revenues (GAAP) |
|
|
|
$ |
99.3 |
|
$ |
116.8 |
|
$ |
109.2 |
|
$ |
421.8 |
|
$ |
89.1 |
|
$ |
35.7 |
|
$ |
124.8 |
|
Revenues (GAAP) - YoY % change |
|
|
|
|
(64)% |
|
|
(63)% |
|
|
(73)% |
|
|
(53)% |
|
|
(83)% |
|
|
(60)% |
|
|
(76)% |
|
Adjusted revenues (non-GAAP) - YoY % change |
|
|
|
|
(60)% |
|
|
(57)% |
|
|
(69)% |
|
|
(49)% |
|
|
(82)% |
|
|
(61)% |
|
|
(76)% |
THE WESTERN UNION COMPANY
NOTES TO KEY STATISTICS
(Unaudited)
2023 Consolidated Outlook Metrics |
|
|
|
|
|
|
|
|
|
|
Notes |
|
|
Range |
|||
Revenues (GAAP) - YoY % change |
|
|
|
|
(5)% |
|
|
(3)% |
Foreign currency translation impact |
|
(i) |
|
|
0% |
|
|
0% |
Impact from Business Solutions |
|
(l) |
|
|
4% |
|
|
4% |
Revenues, constant currency, excluding Business Solutions (non-GAAP) - YoY % change |
|
|
|
|
(1)% |
|
|
1% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Range |
|||
Operating margin (GAAP) |
|
|
|
|
18% |
|
|
20% |
Operating expense redeployment program costs |
|
(o) |
|
|
1% |
|
|
1% |
Impact from acquisition and separation costs |
|
(k) |
|
|
0% |
|
|
0% |
Impact from Business Solutions |
|
(l) |
|
|
0% |
|
|
0% |
Operating margin, adjusted (non-GAAP) |
|
|
|
|
19% |
|
|
21% |
|
|
|
|
|
|
|
|
|
|
|
|
|
Range |
||||
Earnings per share (GAAP) ($- dollars) |
|
|
|
$ |
1.63 |
|
$ |
1.73 |
Gain on the sale of Business Solutions |
|
(l) |
|
|
(0.06) |
|
|
(0.06) |
Operating expense redeployment program costs |
|
(o) |
|
|
0.08 |
|
|
0.08 |
Acquisition and separation costs |
|
(k) |
|
|
— |
|
|
— |
Income taxes associated with these adjustments |
|
(l), (o) |
|
|
— |
|
|
— |
Earnings per share, adjusted (non-GAAP) ($- dollars) |
|
|
|
$ |
1.65 |
|
$ |
1.75 |
Non-GAAP related notes:
Other notes: