Revenue: 4th quarter revenues of $164.8 million. Full yearly revenue of $658.6 million.
Adjusted EBITDA: Q4 adjusted its $30 million AbitDA with a margin of 18.8%. Annual adjusted EBITDA of $111.3 million.
Adjusted dilution EPS: Q4 Adjusted dilution EPS $0.57, an increase of 1.8% from the previous year.
Digital Revenue: Digital revenue for the fourth quarter increased 48.3% to $5.6 million. $20 million in annual digital revenue.
Consumer base: The company has expanded to 5.7 million, an increase of 1.8% from the previous year.
Interest expenses: 4th quarter interest expenses $2.7 million. The interest expense for the full year is $11.7 million.
Net Free Cash: Net Free Cash was $4.6 million in the fourth quarter.
Stock buyback: More than 1 million shares bought back in the fourth quarter. A total of 3.8 million shares were bought back in 2024.
2025 Guidance: Full-year revenue forecast from $657.5 million to $677.5 million. Adjustable dilution EPS from $2.09 to $2.26. Adjusted EBITDAs ranging from $113.8 million to $117.3 million.
Release date: February 26, 2025
For a complete transcript of revenue calls, see the complete transcript of revenue calls.
International Money Express Inc (NASDAQ: IMXI) reported a total revenue of $164.8 million in the fourth quarter, contributing to a full-year revenue of $658.6 million.
Digital transactions increased 71.7% year-on-year, while digital revenue rose 48.3%, indicating the success of the omnichannel approach.
The company set a fourth quarter record of a adjusted dilution EPS of $0.57, up 1.8% year-on-year.
The acquisition of Amigo Paisano is expected to drive digital growth and leverage the economy of superior units.
The company is strongly equipped with cash-generating capabilities, with annual revenues from retail exceeding $600 million and driving digital expansion.
The wide remittance market faced headwinds in the fourth quarter, with a noticeable slowdown in Mexico, affecting retail growth.
The company anticipates macroeconomic challenges and political uncertainty in the major Latin American corridors, affecting 2025 guidance.
Despite digital growth, the retail segment is experiencing negative growth due to increased digital competition.
The full year interest expense was $11.7 million, reflecting on its continued financial obligations.
The company faces challenges in maintaining market share in its retail segment due to its competitiveness and contract market.
Q: Can you provide insight into the acquisition of Amigo Paisano and its business impact? A: CEO Robert Lisy explained that Amigo Paisano was initially a wire as a service client. This acquisition allows InterMex to own the transaction entirely, significantly increasing the total margin. This acquisition will bring you a quality team in Guatemala, improving your expertise at reasonable costs. The digital business was acquired in lucrative multiples, providing a strategic advantage in the market.
The story continues
Q: How do you approach digital marketing and customer acquisition? A: Digital Digital Director Marcelo Theodoro noted that digital marketing costs are stable or declining. The company has learned to optimize digital marketing through external institutions and internal resources, reducing costs. Acting COO Chris Hunt added that data capture will allow for efficient allocation of marketing spending and reduce customer acquisition costs.
Q: What are the main factors affecting revenue guidance for 2025? A: CEO Robert Lisy highlighted two main factors: Mexico’s challenging macro environment and a shift towards digital transactions. The retail sector has experienced negative growth and is strategically focusing on digital expansion. Despite the challenges, the company remains profitable and invests in both digital and retail growth.
Q: How should investors see the impact of changes in immigration policy on your business? A: CEO Robert Lisy said changes in immigration policy could have an impact, but the size is uncertain. Historically, economic factors such as employment availability have been more important. The company believes its core customer base, which primarily works in the agriculture and services industry, remains stable despite policy changes.
Q: What is your stock repurchase strategy in 2025? A: CFO Andras Bende has shown that he plans to buy back about $40 million worth of stock in 2025. Strategies are flexible and can be more aggressive when market conditions are favorable. The focus is on increasing shareholder value through opportunistic buybacks.
For a complete transcript of revenue calls, see the complete transcript of revenue calls.
This article was first published in Gurufocus.
