ENGLEWOOD, Colo.--(company WIRE)--The Western Union business (NYSE: WU) these days mentioned financial results for the 2016 third quarter and updated its full yr monetary outlook, which was in the past pronounced on August 3, 2016.
The company delivered earnings of $1.four billion for the quarter, reflecting a decline of 2% in comparison to last yr, or an increase of two% on a continuing forex foundation. revenue per share of $0.forty four comprises a poor $0.02 affect from an additional accrual concerning the in the past disclosed FTC felony rely, and compares to $0.forty five in the identical quarter ultimate yr.
For the whole 12 months, the company narrowed its revenue outlook and affirmed its EPS outlook range of $1.60 to $1.70.
"Our assorted international business and strategic initiatives enabled us to deliver an additional strong income efficiency in the quarter, as we efficiently navigated forex headwinds and macro challenges in international markets," observed President and Chief executive Officer Hikmet Ersek. "whereas effects in oil stylish nations softened, our U.S. enterprise remained powerful, and westernunion.com cash switch transaction growth accelerated to 29%."
Western Union also expanded its in-adult and on-line community this quarter. The enterprise serves buyers in additional than 200 countries and territories via greater than 550,000 agent places, including a recent close doubling of its locations in Mexico. moreover, westernunion.com transaction websites are in 37 international locations, including cellular apps in sixteen of these, and the company has the capacity to carry cash to billions of money owed globally.
govt vice president and Chief economic Officer Raj Agrawal brought up, "we're blissful to be heading in the right direction to meet our income outlook, reflecting tight fee management whereas still progressing focused investments in digital, know-how, and compliance initiatives. Our enterprise mannequin continues to generate amazing money circulation, which allowed us to come back almost $640 million to shareholders through share repurchases and dividends up to now this 12 months."
Q3 business Unit Highlights
additional Q3 fiscal Highlights
2016 Full 12 months Outlook
The company narrowed its full yr outlook for profits boom, and affirmed its full 12 months outlook for working margin, EPS, and operating money circulate.
The up-to-date outlook follows:
earnings
operating profit Margin
salary per Share
money movement
extra records
further key statistics for the quarter and old tendencies can be found in the supplemental tables included with this press release. in the C2C segment, the geographic split for transactions and salary, including transactions initiated via westernunion.com, is determined based mostly upon the region the place the funds transfer is initiated and the vicinity the place the funds switch is paid. For transactions originated and paid in different regions, we cut up the transaction count number and revenue between both areas, with each and every location receiving 50%. For funds transfers initiated and paid within the equal vicinity, a hundred% of the transactions and income are attributed to that area.
earlier than January 1, 2016, we reported westernunion.com as a separate location with a hundred% of the corresponding transactions and profits attributed to that place, despite the place the transactions were paid out. Separate westernunion.com records supplied within the tables protected with this press unencumber keep that 100% allocation methodology. Prior period regional effects have been adjusted to consist of transactions initiated via westernunion.com, as described within the preceding paragraph.
All amounts included in the supplemental tables to this press release are rounded to the nearest tenth of 1,000,000, apart from as otherwise referred to. consequently, the percentage adjustments and margins disclosed herein may also not recalculate exactly the usage of the rounded amounts offered.
Non-GAAP Measures
Western Union presents a number of non-GAAP fiscal measures as a result of administration believes that these metrics supply significant supplemental guidance moreover the GAAP metrics and provide comparability and consistency to prior durations. regular foreign money effects count on international revenues are translated from foreign exchange to the U.S. dollar, web of the impact of foreign currency hedges, at fees in line with those in the prior 12 months.
These non-GAAP monetary measures include earnings trade regular foreign money adjusted; purchaser-to-buyer segment revenue exchange steady foreign money adjusted; client-to-client phase westernunion.com salary trade regular foreign money adjusted; purchaser-to-enterprise segment revenue exchange constant currency adjusted; enterprise options segment income trade steady currency adjusted; salary alternate outlook, consistent currency adjusted; and extra measures found in the supplemental tables protected with this press unlock.
Reconciliations of non-GAAP to comparable GAAP measures are available within the accompanying schedules and in the "Investor family members" component to the company's web site at http://ir.westernunion.com.
Investor and Analyst convention call and Slide Presentation
The business will host a conference name and webcast, including slides, at 4:30 p.m. eastern Time nowadays. To listen to the convention call via cell, dial 1 (888) 317-6003 (U.S.) or +1 (412) 317-6061 (backyard the U.S.) ten minutes just before the beginning of the name. The circulate code is 2678212.
The conference name and accompanying slides could be attainable via webcast at http://ir.westernunion.com. Registration for the adventure is required, so please register at least five minutes in advance of the scheduled delivery time.
A webcast replay might be accessible at http://ir.westernunion.com.
Please be aware: All statements made by means of Western Union officers on this name are the property of Western Union and area to copyright coverage. apart from the replay, Western Union has not authorized, and disclaims responsibility for, any recording, replay or distribution of any transcription of this name.
secure Harbor Compliance statement for forward-searching Statements
This press liberate contains certain statements which are forward-looking within the that means of the private Securities Litigation Reform Act of 1995. These statements aren't ensures of future efficiency and contain certain hazards, uncertainties and assumptions which are difficult to predict. precise outcomes and results might also range materially from those expressed in, or implied by, our forward-looking statements. phrases equivalent to "expects," "intends," "anticipates," "believes," "estimates," "courses," "offers tips," "provides outlook" and different equivalent expressions or future or conditional verbs comparable to "may additionally," "will," "should," "would," "may," and "might" are meant to identify such forward-looking statements. Readers of this press free up of The Western Union company (the "enterprise," "Western Union," "we," "our" or "us") should still no longer count completely on the forward-searching statements and will believe all uncertainties and hazard s mentioned in the "possibility factors" section and right through the Annual file on kind 10-ok for the yr ended December 31, 2015. The statements are most effective as of the date they are made, and the enterprise undertakes no obligation to update any ahead-searching observation.
possible events or factors that might trigger effects or efficiency to differ materially from those expressed in our forward-looking statements encompass here: (i) hobbies regarding our business and industry, akin to: alterations in accepted economic circumstances and economic circumstances within the regions and industries in which we function, together with world financial and exchange downturns, or enormously slower increase or declines in the cash switch, charge service, and different markets wherein we operate, including downturns or declines regarding interruptions in migration patterns, or non-efficiency by our banks, lenders, insurers, or different fiscal services providers; failure to compete easily in the funds transfer and charge provider business, including amongst other things, with respect to cost, with international and area of interest or corridor money transfer suppliers, banks and different funds transfer and fee carrier providers, together with electronic, cellu lar and cyber web-primarily based capabilities, card associations, and card-based mostly payment providers, and with digital currencies and related protocols, and other innovations in technology and business fashions; deterioration in consumer self belief in our enterprise, or in money switch and price carrier suppliers often; our skill to undertake new expertise and boost and gain market acceptance of new and greater functions in line with altering industry and client wants or tendencies; alterations in, and failure to control with no trouble, exposure to international exchange rates, including the affect of the law of overseas exchange spreads on cash transfers and charge transactions; any cloth breach of safety, including cybersecurity, or safeguards of or interruptions in any of our methods or these of our vendors or different third events; cessation of or defects in a variety of services supplied to us by means of third-party providers; mergers, acquisitions and integration of received organizations and technologies into our enterprise, and the failure to realize predicted fiscal advantages from these acquisitions, and events requiring us to write down down our goodwill; political conditions and linked movements in the u.s. and abroad which may additionally adversely have an effect on our company and economic conditions as a whole, including interruptions of united states or different executive family members with international locations in which we now have or are implementing enormous company relationships with brokers or consumers; failure to manage credit and fraud dangers introduced via our brokers, purchasers and consumers; failure to maintain our agent community and business relationships below phrases in keeping with or greater positive to us than those currently in location, including because of accelerated prices or loss of business as a result of increased compliance necessities or problem for us, our brokers or their subagents in setting up or holding relationships with banks essential to behavior our capabilities; choices to alternate our company mix; alterations in tax legal guidelines, or their interpretation, and unfavourable resolution of tax contingencies; opposed rating actions through credit rating businesses; our capability to recognize the predicted advantages from productivity and value-discounts and different related initiatives, which may additionally encompass choices to downsize or to transition working activities from one location to one other, and to minimize any disruptions in our staff that can result from those initiatives; our means to give protection to our brands and our different highbrow property rights and to safeguard ourselves in opposition t competencies highbrow property infringement claims; our capacity to attract and retain qualified key personnel and to control our group of workers correctly; material adjustments in the market price or liquidity of securities that we hold; restrictions i mposed by using our debt obligations; (ii) pursuits related to our regulatory and litigation atmosphere, equivalent to: liabilities or loss of business as a result of a failure via us, our brokers or their subagents to conform to legal guidelines and rules and regulatory or judicial interpretations thereof, together with laws and regulations designed to give protection to patrons, or discover and stop money laundering, terrorist financing, fraud and other illicit recreation; accelerated charges or loss of enterprise due to regulatory initiatives and adjustments in laws, laws and business practices and requisites, including alterations in interpretations within the united states and globally, affecting us, our agents or their subagents, or the banks with which we or our brokers hold financial institution debts crucial to supply our features, together with related to anti-cash laundering regulations, anti-fraud measures, customer due diligence, agent and subagent due diligence, regist ration and monitoring necessities, and customer insurance policy requirements; liabilities or lack of company and unanticipated traits resulting from governmental investigations and consent agreements with or enforcement movements by regulators, including those associated with compliance with or failure to comply with the agreement contract with the State of Arizona, as amended; the talents impact on our company from the Dodd-Frank Wall road Reform and consumer insurance policy Act (the "Dodd-Frank Act"), as well as laws issued pursuant to it and the actions of the customer fiscal insurance policy Bureau and an identical law and regulations enacted with the aid of other governmental authorities regarding buyer coverage; liabilities due to litigation, together with class-motion proceedings and an identical matters, together with prices, prices, settlements and judgments; failure to agree to laws and evolving industry requisites involving purchaser privateness and data use and pro tection; outcomes of unclaimed property legal guidelines; failure to maintain sufficient quantities or types of regulatory capital or other restrictions on using our working capital to meet the altering requirements of our regulators global; changes in accounting requirements, rules and interpretations or trade necessities affecting our enterprise; and (iii) different pursuits, similar to: opposed tax consequences from our spin-off from First facts organisation; catastrophic activities; and administration's potential to establish and manipulate these and other risks.
About Western Union
The Western Union company (NYSE: WU) is a leader in global fee features. along side its Vigo, Orlandi Valuta, Pago Facil and Western Union enterprise solutions branded price functions, Western Union gives patrons and groups with quickly, professional and convenient tips on how to ship and get hold of funds around the globe, to ship funds and to buy money orders. As of September 30, 2016, the Western Union, Vigo and Orlandi Valuta branded features have been provided through a combined network of over 550,000 agent locations in 200 nations and territories and over a hundred,000 ATMs and kiosks, and covered the ability to send funds to billions of accounts. In 2015, The Western Union business completed 262 million buyer-to-client transactions international, moving $82 billion of important between buyers, and 508 million enterprise funds. For greater counsel, talk over with www.westernunion.com.
THE WESTERN UNION company KEY statistics (Unaudited) Notes* 3Q15 4Q15 FY2015 1Q16 2Q16 3Q16 YTD 3Q16 Consolidated Metrics Consolidated revenues (GAAP) - YoY % change (three )% (2 )% (2 )% (2 )% (1 )% (2 )% (1 )% Consolidated revenues (regular forex) - YoY % trade a three % three % 4 % three % three % 2 % three % Consolidated working margin (GAAP) 21.eight % 20.4 % 20.2 % 19.9 % 18.9 % 20.2 % 19.7 % Consolidated working margin (with the exception of Paymap agreement agreement) b N/A N/A 20.9 % N/A N/A N/A N/A client-to-client (C2C) section Revenues (GAAP) - YoY % exchange (three )% (three )% (three )% (2 )% (1 )% (1 )% (1)%
Revenues (constant currency) - YoY % change f three % 2 % 3 % 1 % 2 % 1 % 1 % working margin 25.5 % 24.0 % 24.0 % 22.7 % 21.5 % 23.4 % 22.5 % Transactions (in hundreds of thousands) 66.6 67.4 261.5 63.7 67.7 67.8 199.2 Transactions - YoY % trade 2 % three % three % three % 3 % 2 % three % total major ($ - billions) $ 20.9 $ 20.4 $ eighty one.6 $ 19.1 $ 20.four $ 20.3 $ fifty nine.8 principal per transaction ($ - dollars) $ 315 $ 303 $ 312 $ 299 $ 301 $ 300 $ 300 essential per transaction - YoY % change (7 )% (6 )% (7 )% (5 )% (5 )% (5 )% (5 )% main per transaction (consistent currency) - YoY % trade g 0 % (1 )% (1 )% (three )% (four )% (4 )% (3 )% move-border important ($ - billions) $ 18.9 $ 18.four $ seventy three.6 $ 17.three $ 18.5 $ 18.4 $ 54.2 move-border important - YoY % change (6 )% (4 )% (5 )% (2 )% (1 )% (3 )% (2 )% cross-border major (constant currency) - YoY % alternate h 1 % 1 % 2 % 1 % 0 % (2 )% 0 % North the usa location revenues (GAAP) - YoY % exchange v, w 2 % three % 2 % three % 6 % 6 % 5 % North the united states vicinity revenues (consistent currency) - YoY % exchange i, v, w 4 % 5 % 3 % 5 % 7 % 7 % 6 % North america vicinity transactions - YoY % alternate v, w 6 % eight % 6 % 7 % 7 % 7 % 7 % Europe and CIS location revenues (GAAP) - YoY % alternate v, x (9 )% (7 )% (8 )% (3 )% (3 )% (2 )% (three )% Europe and CIS location revenues (consistent currency) - YoY % trade j, v, x 0 % 1 % 2 % 0 % (1 )% 1 % 0 % Europe and CIS area transactions - YoY % alternate v, x (2 )% three % 2 % three % 3 % 2 % 3 % middle East and Africa area revenues (GAAP) - YoY % change v, y (2 )% (four )% (4 )% (four )% (four )% (10 )% (6 )% center East and Africa location revenues (steady forex) - YoY % alternate okay, v, y 3 % 0 % 1 % (1 )% (three )% (8 )% (four )% center East and Africa place transactions - YoY % alternate v, y 0 % (1 )% (1 )% (three )% (5 )% (9 )% (6 )% APAC area revenues (GAAP) - YoY % exchange v, z (7 )% (5 )% (5 )% (4 )% (three )% (four )% (four )% APAC location revenues (regular currency) - YoY % exchange l, v, z 0 % 0 % 0 % (1 )% (1 )% (3 )% (1 )% APAC location transactions - YoY % change v, z (5 )% (4 )% (three )% (four )% (three )% (5 )% (four )% LACA area revenues (GAAP) - YoY % alternate v, aa 1 % (1 )% three % (5 )% 0 % 3 % (1 )% LACA vicinity revenues (consistent foreign money) - YoY % exchange m, v, aa 8 % 5 % 10 % 1 % 6 % eight % 5 % LACA vicinity transactions - YoY % trade v, aa eight % eight % eight % eleven % 12 % 12 % 12 % foreign revenues - YoY % alternate bb (7 )% (7 )% (6 )% (5 )% (4 )% (5 )% (5 )% international transactions - YoY % alternate bb (2 )% 0 % 0 % 0 % 0 % (2 )% (1 )% overseas revenues - % of C2C segment revenues bb 70 % sixty nine % 69 % 67 % 67 % sixty seven % sixty seven % u.s. originated revenues - YoY % alternate cc 6 % 6 % 5 % 5 % 7 % 7 % 6 % united states originated transactions - YoY % trade cc eight % eight % 7 % eight % 8 % 7 % eight % united states originated revenues - % of C2C phase revenues cc 30 % 31 % 31 % 33 % 33 % 33 % 33 % westernunion.com revenues (GAAP) - YoY % exchange dd 22 % 21 % 21 % 16 % 19 % 26 % 20 % westernunion.com revenues (regular currency) - YoY % trade n, dd 28 % 25 % 26 % 18 % 20 % 28 % 22 % westernunion.com transactions - YoY % change dd 25 % 28 % 26 % 25 % 25 % 29 % 26 % % of buyer-to-client salary Regional Revenues: North the us location revenues v, w 27 % 27 % 27 % 28 % 28 % 29 % 28 % Europe and CIS place revenues v, x 26 % 27 % 26 % 26 % 26 % 26 % 26 % core East and Africa area revenues v, y 21 % 20 % 21 % 20 % 20 % 19 % 20 % APAC location revenues v, z 15 % 15 % 15 % 15 % 15 % 14 % 15 % LACA vicinity revenues v, aa 11 % eleven % eleven % 11 % eleven % 12 % eleven % westernunion.com revenues dd 6 % 7 % 6 % 7 % eight % eight % 8 % purchaser-to-company (C2B) section Revenues (GAAP) - YoY % alternate 6 % 4 % 6 % (1 )% (2 )% (three )% (2 )% Revenues (steady foreign money) - YoY % exchange o 10 % 9 % eleven % 12 % 12 % eleven % 12 % operating margin 16.four % eleven.9 % 10.8 % 14.6 % 11.5 % 9.1 % 11.8 % operating margin (apart from Paymap agreement agreement) p N/A N/A sixteen.3 % N/A N/A N/A N/A company options (B2B) section Revenues (GAAP) - YoY % trade (four )% 1 % (1 )% 1 % 3 % (4 )% 0 % Revenues (constant forex) - YoY % trade q 6 % 8 % 7 % 6 % 6 % 0 % four % operating margin (2.7 )% 3.7 % 0.7 % 2.four % 5.0 % three.5 % 3.7 % % of complete company profits buyer-to-consumer phase revenues eighty % seventy nine % 79 % 78 % 80 % eighty % seventy nine % buyer-to-enterprise segment revenues 11 % 12 % 12 % 12 % eleven % 11 % 12 % company solutions section revenues 7 % 7 % 7 % 8 % 7 % 7 % 7 % * See the "Notes to Key statistics" element of the press unencumber for the relevant notice references and the reconciliation of non-GAAP fiscal measures. THE WESTERN UNION enterprise CONDENSED CONSOLIDATED STATEMENTS OF profits (Unaudited) (in hundreds of thousands, except per share amounts)Three Months EndedSeptember 30,
9 Months EndedSeptember 30,
2016 2015 % exchange 2016 2015 % alternate Revenues: Transaction charges $ 960.four $ 994.9 (three )% $ 2,840.7 $ 2,931.8 (three )% overseas change revenues 381.5 372.3 2%
1,105.8 1,072.4 three%
different revenues 35.9 32.0 12%
104.7 99.5 5%
total revenues 1,377.8 1,399.2 (2 )% four,051.2 4,103.7 (1 )% prices: cost of features 822.9 817.2 1%
2,424.2 2,388.four 1%
selling, conventional and administrative (a) 276.6 277.5 0%
829.8 887.7 (7 )% complete expenses 1,099.5 1,094.7 0%
3,254.0 3,276.1 (1 )% operating income (b) 278.three 304.5 (9 )% 797.2 827.6 (4 )% other profits/(expense): hobby salary 1.1 three.0 (64 )% 2.7 eight.4 (sixty eight )% activity cost (forty one.four ) (forty two.2 ) (2 )% (122.9 ) (127.1 ) (3 )% by-product positive aspects, web 0.3 1.4 (76 )% 2.2 2.4 (8 )% different revenue/(cost), net 1.7 (1.three )(c
)
0.8 (6.four )(c
)
total different fee, internet (38.3 ) (39.1 ) (2 )% (117.2 ) (122.7 ) (4 )% profits earlier than revenue taxes 240.0 265.4 (10 )% 680.0 704.9 (four )% Provision for revenue taxes 23.1 33.1 (30 )% 71.eight seventy nine.4 (9 )% internet salary $ 216.9 $ 232.three (7 )% $ 608.2 $ 625.5 (3 )% profits per share: primary $ 0.45 $ 0.46 (2 )% $ 1.24 $ 1.21 2%
Diluted $ 0.44 $ 0.45 (2 )% $ 1.23 $ 1.20 3%
Weighted-general shares amazing: basic 487.0 509.6 492.four 515.3 Diluted 490.three 513.2 495.5 519.four cash dividends declared per standard share $ 0.16 $ 0.155 3%
$ 0.forty eight $ 0.465 3%
_________________
(a) For the three and nine months ended September 30, 2016, selling, everyday and administrative fees covered $15 million and $30 million, respectively, for accruals related to a depend with the USA Federal trade fee (the "FTC") regarding our purchaser insurance plan and anti-fraud classes, as described in part II, merchandise I, prison complaints, of our third quarter 2016 Quarterly report on kind 10-Q. For the 9 months ended September 30, 2015, promoting, commonplace and administrative costs protected $35.3 million of charges related to a settlement settlement reached with the client fiscal coverage Bureau involving the fairness Accelerator provider of Paymap, Inc., a subsidiary of the business. (b) For the three and 9 months ended September 30, 2016 compared to the corresponding periods within the prior 12 months, the strengthening of the USA greenback in comparison to foreign exchange, internet of the impact of international forex hedges, negatively impacted working earnings by means of approximately $22 million and $sixty two million, respectively. (c) Calculation now not meaningful. THE WESTERN UNION enterprise CONDENSED CONSOLIDATED stability SHEETS (Unaudited) (in hundreds of thousands, except per share quantities) September 30,2016
December 31,2015
property cash and cash equivalents (a) $ 1,280.7 $ 1,315.9 settlement belongings 3,389.0 3,308.7 Property and equipment, web of amassed depreciation of $587.2 and $538.2, respectively 224.four 231.8 Goodwill 3,162.3 three,163.eight different intangible assets, web of gathered amortization of $955.4 and $884.four, respectively 693.four 705.0 other belongings 768.9 724.0 total belongings $ 9,518.7 $ 9,449.2 Liabilities and Stockholders' equity Liabilities: money owed payable and amassed liabilities $ 557.four $ 606.6 settlement tasks three,389.0 3,308.7 revenue taxes payable 235.8 211.5 Deferred tax liability, net 272.8 272.6 Borrowings three,224.eight three,215.9 different liabilities 451.3 429.0 total liabilities eight,131.1 8,044.three Stockholders' fairness: preferred stock, $1.00 par price; 10 shares approved; no shares issued — — average inventory, $0.01 par cost; 2,000 shares authorized; 485.2 shares and 502.4 shares issued and striking as of September 30, 2016 and December 31, 2015, respectively 4.9 5.0 Capital surplus 628.7 566.5 Retained earnings 930.9 977.3 gathered different complete loss (176.9 ) (143.9 ) complete stockholders' equity 1,387.6 1,404.9 total liabilities and stockholders' equity $ 9,518.7 $ 9,449.2____________
(a) approximately $650 million and $950 million turned into held by using entities outdoor of the united states as of September 30, 2016 and December 31, 2015, respectively. THE WESTERN UNION business CONDENSED CONSOLIDATED STATEMENTS OF cash FLOWS (Unaudited) (in thousands and thousands) nine Months EndedSeptember 30,
2016 2015 money Flows From operating activities net earnings $ 608.2 $ 625.5 adjustments to reconcile net earnings to internet cash supplied by means of working activities: Depreciation 55.0 49.6 Amortization 142.9 151.6 different non-cash gadgets, net sixty two.0 32.8boost/(decrease) in cash due to alterations in:
different assets (41.8 ) (118.2 ) debts payable and collected liabilities (50.2 ) forty one.1 revenue taxes payable 25.6 33.5 other liabilities 20.2 (11.7 ) net cash provided by using operating activities 821.9 804.2 cash Flows From Investing actions Capitalization of contract costs (85.9 ) (one hundred ten.5 ) Capitalization of purchased and developed software (39.7 ) (30.5 ) Purchases of property and gadget (fifty one.4 ) (65.7 ) Purchases of non-contract connected investments and other (forty four.1 ) (111.2 ) Proceeds from maturity of non-contract related investments and different 22.7 — Purchases of held-to-maturity non-contract connected investments (39.7 ) — Proceeds from held-to-maturity non-contract connected investments four.2 — net cash utilized in investing actions (233.9 ) (317.9 ) money Flows From Financing actions money dividends paid (235.1 ) (238.5 ) general stock repurchased (419.8 ) (441.9 ) main payments on borrowings — (250.0 ) Proceeds from pastime of options and other 31.7 75.three internet money utilized in financing activities (623.2 ) (855.1 ) internet exchange in cash and money equivalents (35.2 ) (368.8 ) cash and cash equivalents at beginning of period 1,315.9 1,783.2 cash and money equivalents at conclusion of length $ 1,280.7 $ 1,414.four THE WESTERN UNION business abstract segment statistics (Unaudited) (in tens of millions)Three Months Ended
September 30,
nine Months EndedSeptember 30,
2016 2015 % exchange 2016 2015 % trade Revenues: buyer-to-purchaser (C2C): Transaction fees $ 791.four $ 820.four (4 )% $ 2,337.0 $ 2,412.7 (3 )% foreign trade revenues 290.3 276.1 5%
825.2 789.1 5%
different revenues 17.2 sixteen.four 5%
forty nine.9 50.9 (2 )% total purchaser-to-purchaser 1,098.9 1,112.9 (1 )% three,212.1 three,252.7 (1 )% buyer-to-business (C2B): Transaction costs 149.4 154.1 (3 )% 447.6 457.1 (2 )% international change and other revenues 6.three 6.0 4%
18.4 18.7 (2 )% total purchaser-to-enterprise a hundred and fifty five.7 160.1 (three )% 466.0 475.8 (2 )% company solutions (B2B): overseas exchange revenues 85.three 90.6 (6 )% 264.6 266.0 (1 )% Transaction expenses and different revenues eleven.9 10.6 12%
32.6 30.8 6%
complete enterprise solutions 97.2 a hundred and one.2 (4 )% 297.2 296.eight 0%
different: complete revenues 26.0 25.0 4%
seventy five.9 seventy eight.four (three )% total consolidated revenues $ 1,377.eight $ 1,399.2 (2 )% $ four,051.2 $ four,103.7 (1 )% working income/(loss): buyer-to-purchaser (a) $ 257.1 $ 283.three (9 )% $ 723.7 $ 780.1 (7 )% customer-to-enterprise (b) 14.2 26.2 (forty six )% fifty four.8 forty nine.3 eleven%
enterprise solutions 3.four (2.7 )(c
)
10.9 (1.0 )(c
)
different 3.6 (2.3 )(c
)
7.eight (0.eight )(c
)
total consolidated operating revenue $ 278.three $ 304.5 (9 )% $ 797.2 $ 827.6 (four )% working income/(loss) margin: consumer-to-purchaser 23.4 % 25.5 % (2.1 )% 22.5 % 24.0 % (1.5 )% buyer-to-enterprise 9.1 % sixteen.4 % (7.3 )% eleven.8 % 10.4 % 1.four%
enterprise solutions three.5 % (2.7 )% 6.2%
three.7 % (0.3 )% four.0%
total consolidated working profits margin 20.2 % 21.8 % (1.6 )% 19.7 % 20.2 % (0.5 )%________________
(a) For the three and 9 months ended September 30, 2016, purchaser-to-consumer operating earnings covered $15 million and $30 million, respectively, for accruals regarding a rely with the FTC related to our client protection and anti-fraud programs, as described partly II, item I, legal court cases, of our third quarter 2016 Quarterly document on kind 10-Q. (b) For the 9 months ended September 30, 2015, consumer-to-company operating income protected $35.3 million of costs concerning a contract settlement reached with the client fiscal coverage Bureau involving the fairness Accelerator carrier of Paymap, Inc., a subsidiary of the enterprise. (c) Calculation now not significant. THE WESTERN UNION enterprise NOTES TO KEY data (in millions, except indicated in any other case) (Unaudited) Western Union's administration believes the non-GAAP financial measures offered deliver significant supplemental counsel concerning our working consequences to assist administration, traders, analysts, and others in understanding our monetary effects and to better analyze developments in our underlying enterprise, as a result of they supply consistency and comparability to prior periods. A non-GAAP monetary measure should still no longer be regarded in isolation or as an alternative choice to probably the most related GAAP economic measure. A non-GAAP monetary measure reflects an additional method of viewing aspects of our operations that, when viewed with our GAAP outcomes and the reconciliation to the corresponding GAAP financial measure, provide a more finished knowing of our company. clients of the financial statements are encouraged to assessment our fiscal statements and publicly-filed reports of their entirety and never to count on any single economic measure. A reconciliation of non-GAAP financial measures to probably the most without delay similar GAAP economic measures is protected under. All adjusted 12 months-over-year changes had been calculated the usage of prior 12 months mentioned quantities. 3Q15 4Q15 FY2015 1Q16 2Q16 3Q16 YTD 3Q16 Consolidated Metrics (a) Revenues, as pronounced (GAAP) $ 1,399.2 $ 1,380.0 $ 5,483.7 $ 1,297.7 $ 1,375.7 $ 1,377.eight $ four,051.2 overseas forex translation influence (s) 85.four seventy three.9 322.6 fifty seven.4 48.9 52.1 158.four Revenues, constant foreign money adjusted $ 1,484.6 $ 1,453.9 $ 5,806.3 $ 1,355.1 $ 1,424.6 $ 1,429.9 $ 4,209.6 Prior 12 months revenues, as mentioned (GAAP) $ 1,440.9 $ 1,409.9 $ 5,607.2 $ 1,320.9 $ 1,383.6 $ 1,399.2 $ four,103.7 revenue exchange, as mentioned (GAAP) (3 )% (2 )% (2 )% (2 )% (1 )% (2 )% (1 )% income alternate, steady forex adjusted three % 3 % 4 % three % three % 2 % 3 % (b) working revenue, as suggested (GAAP) $ 304.5 $ 281.eight $ 1,109.four $ 258.6 $ 260.three $ 278.3 $ 797.2 Paymap contract agreement (t) N/A N/A 35.3 N/A N/A N/A N/A working earnings, excluding Paymap agreement contract $ 304.5 $ 281.eight $ 1,144.7 $ 258.6 $ 260.3 $ 278.three $ 797.2 working salary margin, as suggested (GAAP) 21.eight % 20.four % 20.2 % 19.9 % 18.9 % 20.2 % 19.7 % operating income margin, except for Paymap agreement agreement N/A N/A 20.9 % N/A N/A N/A N/A (c) operating earnings, as stated (GAAP) $ 304.5 $ 281.8 $ 1,109.4 $ 258.6 $ 260.three $ 278.3 $ 797.2 Reversal of depreciation and amortization 74.four 69.0 270.2 65.6 65.9 66.4 197.9 EBITDA (u) $ 378.9 $ 350.eight $ 1,379.6 $ 324.2 $ 326.2 $ 344.7 $ 995.1 Paymap agreement settlement (t) N/A N/A 35.3 N/A N/A N/A N/A Adjusted EBITDA, apart from Paymap contract agreement $ 378.9 $ 350.8 $ 1,414.9 $ 324.2 $ 326.2 $ 344.7 $ 995.1 operating revenue margin, as said (GAAP) 21.eight % 20.four % 20.2 % 19.9 % 18.9 % 20.2 % 19.7 % EBITDA margin 27.1 % 25.four % 25.2 % 25.0 % 23.7 % 25.0 % 24.6 % Adjusted EBITDA margin, except Paymap contract settlement N/A N/A 25.8 % N/A N/A N/A N/A (d) net income, as mentioned (GAAP) $ 232.3 $ 212.3 $ 837.8 $ 185.7 $ 205.6 $ 216.9 $ 608.2 Paymap agreement contract (t) N/A N/A 35.3 N/A N/A N/A N/A income tax improvement from Paymap settlement agreement (t) N/A N/A (eleven.1 ) N/A N/A N/A N/A Paymap settlement settlement, net of earnings tax benefit (t) N/A N/A 24.2 N/A N/A N/A N/A web profits, aside from Paymap agreement agreement $ 232.3 $ 212.3 $ 862.0 $ 185.7 $ 205.6 $ 216.9 $ 608.2 Diluted salary per share ("EPS"), as stated (GAAP) ($ - bucks) $ 0.45 $ 0.forty two $ 1.62 $ 0.37 $ 0.forty two $ 0.44 $ 1.23 Paymap contract agreement ($ - bucks) N/A N/A $ 0.07 N/A N/A N/A N/A salary tax benefit from Paymap contract contract ($ - bucks) N/A N/A $ (0.02 ) N/A N/A N/A N/A have an effect on from Paymap settlement settlement, web of income tax benefit ($ - bucks) N/A N/A $ 0.05 N/A N/A N/A N/A Diluted EPS, excluding Paymap settlement settlement ($ - greenbacks) N/A N/A $ 1.sixty seven N/A N/A N/A N/A Diluted weighted-common shares miraculous 513.2 508.6 516.7 503.2 493.0 490.three 495.5 (e) useful tax expense, as stated (GAAP) 12.5 % 10.four % 11.0 % 14.6 % 7.6 % 9.6 % 10.6 % have an impact on from Paymap settlement contract (t) N/A N/A 0.eight % N/A N/A N/A N/A positive tax cost, aside from Paymap agreement settlement N/A N/A eleven.8 % N/A N/A N/A N/A buyer-to-consumer section (f) Revenues, as suggested (GAAP) $ 1,112.9 $ 1,091.2 $ 4,343.9 $ 1,017.4 $ 1,095.eight $ 1,098.9 $ three,212.1 international currency translation affect (s) sixty seven.1 fifty six.eight 256.0 30.5 23.0 25.3 78.8 Revenues, regular forex adjusted $ 1,a hundred and eighty.0 $ 1,148.0 $ 4,599.9 $ 1,047.9 $ 1,118.eight $ 1,124.2 $ three,290.9 Prior 12 months revenues, as suggested (GAAP) $ 1,one hundred fifty.9 $ 1,a hundred twenty five.three $ four,485.8 $ 1,038.3 $ 1,one hundred and one.5 $ 1,112.9 $ 3,252.7 revenue change, as suggested (GAAP) (three )% (3 )% (three )% (2 )% (1 )% (1 )% (1 )% earnings alternate, constant forex adjusted three % 2 % 3 % 1 % 2 % 1 % 1 % (g) fundamental per transaction, as mentioned ($ - bucks) $ 315 $ 303 $ 312 $ 299 $ 301 $ 300 $ 300 overseas currency translation have an impact on (s) ($ - dollars) 23 sixteen 20 7 3 three 4 primary per transaction, constant foreign money adjusted ($ - bucks) $ 338 $ 319 $ 332 $ 306 $ 304 $ 303 $ 304 Prior yr major per transaction, as suggested ($ - bucks) $ 339 $ 323 $ 335 $ 315 $ 316 $ 315 $ 315 major per transaction exchange, as said (7 )% (6 )% (7 )% (5 )% (5 )% (5 )% (5 )% major per transaction alternate, constant currency adjusted 0 % (1 )% (1 )% (three )% (four )% (4 )% (3 )% (h) move-border major, as said ($ - billions) $ 18.9 $ 18.4 $ seventy three.6 $ 17.three $ 18.5 $ 18.four $ 54.2 international forex translation have an impact on (s) ($ - billions) 1.three 1.2 four.9 0.4 0.2 0.2 0.eight move-border major, consistent forex adjusted ($ - billions) $ 20.2 $ 19.6 $ 78.5 $ 17.7 $ 18.7 $ 18.6 $ fifty five.0 Prior year go-border most important, as pronounced ($ - billions) $ 20.0 $ 19.2 $ seventy seven.2 $ 17.5 $ 18.eight $ 18.9 $ 55.2 pass-border principal exchange, as mentioned (6 )% (four )% (5 )% (2 )% (1 )% (three )% (2 )% cross-border fundamental change, steady forex adjusted 1 % 1 % 2 % 1 % 0 % (2 )% 0 % (i) North the usa area revenue trade, as stated (GAAP) 2 % three % 2 % three % 6 % 6 % 5 % North the united states region international currency translation impact (s) 2 % 2 % 1 % 2 % 1 % 1 % 1 % North the usa place profits exchange, steady currency adjusted four % 5 % 3 % 5 % 7 % 7 % 6 % (j) Europe and CIS location earnings trade, as suggested (GAAP) (9 )% (7 )% (8 )% (3 )% (three )% (2 )% (three )% Europe and CIS place international foreign money translation have an impact on (s) 9 % 8 % 10 % three % 2 % 3 % 3 % Europe and CIS area earnings alternate, constant currency adjusted 0 % 1 % 2 % 0 % (1 )% 1 % 0 % (k) middle East and Africa region earnings trade, as reported (GAAP) (2 )% (four )% (four )% (four )% (4 )% (10 )% (6 )% core East and Africa place foreign forex translation have an impact on (s) 5 % 4 % 5 % 3 % 1 % 2 % 2 % middle East and Africa place salary alternate, steady foreign money adjusted three % 0 % 1 % (1 )% (three )% (8 )% (four )% (l) APAC region income exchange, as suggested (GAAP) (7 )% (5 )% (5 )% (four )% (three )% (4 )% (four )% APAC region foreign forex translation have an impact on (s) 7 % 5 % 5 % 3 % 2 % 1 % 3 % APAC vicinity income alternate, constant foreign money adjusted 0 % 0 % 0 % (1 )% (1 )% (3 )% (1 )%(m)
LACA location salary change, as stated (GAAP) 1 % (1 )% 3 % (5 )% 0 % three % (1 )% LACA location foreign forex translation influence (s) 7 % 6 % 7 % 6 % 6 % 5 % 6 % LACA location income alternate, consistent forex adjusted eight % 5 % 10 % 1 % 6 % 8 % 5 % (n) westernunion.com salary alternate, as said (GAAP) 22 % 21 % 21 % sixteen % 19 % 26 % 20 % westernunion.com foreign forex translation have an effect on (s) 6 % four % 5 % 2 % 1 % 2 % 2 % westernunion.com earnings change, consistent foreign money adjusted 28 % 25 % 26 % 18 % 20 % 28 % 22 % client-to-company phase (o) Revenues, as stated (GAAP) $ a hundred and sixty.1 $ 161.9 $ 637.7 $ 156.1 $ 154.2 $ a hundred and fifty five.7 $ 466.0 foreign currency translation impact (s) 5.6 7.8 24.6 20.9 21.9 22.eight 65.6 Revenues, regular foreign money adjusted $ 165.7 $ 169.7 $ 662.three $ 177.0 $ 176.1 $ 178.5 $ 531.6 Prior year revenues, as pronounced (GAAP) $ 150.four $ 155.three $ 598.eight $ 157.eight $ 157.9 $ 160.1 $ 475.8 income change, as pronounced (GAAP) 6 % 4 % 6 % (1 )% (2 )% (3 )% (2 )% salary change, regular currency adjusted 10 % 9 % eleven % 12 % 12 % 11 % 12 %
(p)
working profits, as said (GAAP)
$ 26.2 $ 19.3 $ sixty eight.6 $ 22.9 $ 17.7 $ 14.2 $ fifty four.eight Paymap agreement agreement (t) N/A N/A 35.three N/A N/A N/A N/A working revenue, except for Paymap agreement settlement $ 26.2 $ 19.three $ 103.9 $ 22.9 $ 17.7 $ 14.2 $ fifty four.eightoperating income margin, as stated (GAAP)
16.four % 11.9 % 10.eight % 14.6 % 11.5 % 9.1 % eleven.8 % operating salary margin, with the exception of Paymap agreement settlement N/A N/A sixteen.three % N/A N/A N/A N/A business options phase (q) Revenues, as said (GAAP) $ a hundred and one.2 $ one hundred and one.9 $ 398.7 $ 99.2 $ one hundred.8 $ ninety seven.2 $ 297.2 international forex translation influence (s) 10.9 7.7 36.1 4.6 three.0 three.5 11.1 Revenues, regular forex adjusted $ 112.1 $ 109.6 $ 434.eight $ 103.eight $ 103.eight $ one hundred.7 $ 308.three Prior yr revenues, as reported (GAAP) $ one hundred and five.8 $ a hundred and one.2 $ 404.6 $ ninety eight.0 $ ninety seven.6 $ a hundred and one.2 $ 296.eight income alternate, as pronounced (GAAP) (four )% 1 % (1 )% 1 % 3 % (4 )% 0 % profits exchange, steady currency adjusted 6 % 8 % 7 % 6 % 6 % 0 % 4 % (r) working earnings/(loss), as stated (GAAP) $ (2.7 ) $ 3.8 $ 2.eight $ 2.4 $ 5.1 $ 3.4 $ 10.9 Reversal of depreciation and amortization 20.three 12.7 fifty seven.4 12.6 13.1 13.2 38.9 EBITDA (u) $ 17.6 $ 16.5 $ 60.2 $ 15.0 $ 18.2 $ 16.6 $ 49.8 working revenue/(loss) margin, as pronounced (GAAP) (2.7 )% three.7 % 0.7 % 2.four % 5.0 % three.5 % 3.7 % EBITDA margin 17.four % 16.2 % 15.1 % 15.1 % 18.1 % 17.1 % sixteen.7 % 2016 Consolidated Outlook Metrics income change (1 )%foreign forex translation have an impact on (s)
four % earnings change, consistent foreign money adjusted three %Non-GAAP connected notes:
(s) Represents the impact from the fluctuation in change costs between all overseas foreign money denominated quantities and the us greenback. consistent foreign money outcomes exclude any advantage or loss led to with the aid of foreign exchange fluctuations between foreign currency and the united states dollar, web of overseas currency hedges, which do not have took place if there had been a constant alternate price. We accept as true with that this measure offers administration and investors with tips about operating consequences and developments that eliminates forex volatility and provides superior readability regarding, and increases the comparability of, our underlying consequences and trends. (t) Represents the have an impact on from a contract agreement reached with the client fiscal insurance policy Bureau regarding the equity Accelerator provider of Paymap, Inc., a subsidiary of the company. We accept as true with that, by apart from the effects of gigantic fees linked to the agreement of litigation that may have an effect on operating traits, management and traders are offered with a measure that raises the comparability of our underlying working outcomes. (u) earnings earlier than pastime, Taxes, Depreciation and Amortization ("EBITDA") results from taking operating profits and adjusting for depreciation and amortization expenses. EBITDA effects give an further efficiency measurement calculation which helps neutralize the operating income effect of assets bought in prior durations.other notes:
(v) Geographic cut up for transactions and revenue, together with westernunion.com transactions, is determined based mostly upon the place where the cash transfer is initiated and the place the place the cash switch is paid. For transactions originated and paid in distinctive areas, the business splits the transaction count number and earnings between the two regions, with each region receiving 50%. For funds transfers initiated and paid within the same location, a hundred% of the salary and transactions are attributed to that area. (w) Represents the North the us location of our buyer-to-buyer phase, together with the us, Mexico, and Canada. (x) Represents the Europe and the Commonwealth of impartial States ("CIS") area of our buyer-to-consumer section. (y) Represents the center East and Africa location of our customer-to-client section. (z) Represents the Asia Pacific ("APAC") location of our buyer-to-client segment, together with India, China, and South Asia. (aa) Represents the Latin the usa and the Caribbean ("LACA") region of our client-to-buyer segment. (bb) Represents transactions, including westernunion.com transactions initiated outdoor the united states, between and within foreign countries (together with Canada and Mexico). Excludes all transactions originated in the u.s.. (cc) Represents transactions originated in the united states, including intra-country transactions and westernunion.com transactions initiated from the us. (dd) Represents transactions initiated on westernunion.com.WU-G
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