International Money Express, Inc.

Greetings. Welcome to the International Money Express Inc. Third Quarter 2021 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. I will now turn the conference over to your host, Mike Galentine. You may begin.

Good morning everyone and welcome to our quarterly earnings call. I would like to remind everyone that today's call includes forward-looking statements including our updated 2021 guidance and actual results may differ materially from expectations. For additional information on International Money Express, which we refer to as Intermex or the company, Please refer to the company's SEC filings, including the risk factors described therein. All forward-looking statements on this call are based on assumptions and beliefs as of today, and you should not rely on our forward-looking statements as predictions of future events. Please refer to slide two of our presentation for a description of certain forward-looking statements. that the company undertakes no obligation to update such information except as required by applicable law. On this conference call, we discussed certain non-GAAP financial measures. Information required under Regulation G under the Securities and Exchange Act with respect to such non-GAAP financial measures is included in the presentation slides, in our earnings press release, our quarterly Form 10-Q, and our annual report, Form 10-K, including reconciliation of certain non-GAAP financial measures to the appropriate GAAP measures. These can be obtained in the Investors section of our website at intermaxonline.com. Presenting on today's call will be our Chairman, Chief Executive Officer and President, Bob Lissy, Chief Financial Officer, Andres Bendi. Also on the call today is Joseph Aguilar, Chief Operating Officer, and Randy Nelson, Chief Revenue Officer. Let me now turn the call over to Bob.

Good morning, and thank you for joining us today. We are proud to announce another quarter of very strong growth across all of our operating and financial metrics. Let me highlight some of these accomplishments on slide three, compared to third quarter of 2020. Revenues grew 26.3%, to $120.7 million. Total dollars sent grew 36%. Net income was $11.5 million, an increase of 21.2%. Adjusted net income of $15.7 million, an increase of 28.3%. And adjusted EBITDA increased 19.8% to $22.9 million. As has been the theme since we have been a publicly traded company, we again generated a record number of remittances during the third quarter, with more than 10.5 million while transferring $4.7 billion for our customers. Underlying this performance, I want to commend the entire Intermex team, both in the U.S. and abroad. The Intermex brand continues to gain more traction each quarter. Our market share increased to a record high in our core markets of Mexico, Guatemala, El Salvador, and Honduras, capturing a share of 21.8% as we grew 40% more than what was already a very robust market. The company's omni-channel strategy continues to meet our customers' needs while delivering strong financial results for our shareholders. We have spoken about it before, but particularly for those who may be new to our call, it is always worth highlighting. Intermex employs a growth strategy that focuses on the consumer and meeting their needs efficiently, effectively, with a constant focus on security and timeliness. We provide choices for our consumers for what we believe to be the best retail and online product and service in the marketplace, enabling consumers to choose whatever is the best method for them to send and for their beneficiaries to receive money. On the send side, we partner with engaged, carefully vetted, top quality group of retail agents located where our customers live and work. Both our agents and Intermex strive to provide the best quality of service in the industry. At the same time, for those consumers who prefer to initiate remittances through their laptop or their smartphone, we continuously work to improve and expand our online digital business offering. Additionally, Intermex consumers can choose to send money at retail by using cash or debit card, or online by using debit card, credit card, or ACH. On the payout side, or receive side, we have thoughtfully assembled a network that delivers wires more efficiently and effectively than ever before, while providing consumers with more options than any other competitor. Our customers and beneficiaries can receive money digitally into their bank accounts loaded on a mobile wallet, paid out in an ATM, or they may pick up cash over the counter at one of our convenient payment locations. Importantly, all of these funds are available in minutes. We believe our strategy is a major differentiator for Intermex, particularly when considering the widely differing demographics of those who send and receive money throughout the world. We believe that the cashed option remains critically important in Latin American corridor, where the vast majority of wires are sent and received in cash. One of the biggest opportunities that remains for the company is our retail digital business. There are hundreds of zip codes throughout the country that are either underserved or unserved by Intermex. This means we do not have a retailer in the zip code, or we have fewer retailers in the zip code than would be optimal. We feel confident that we are in the best position to exploit these opportunities through our best-in-class retail sales force. A disproportionate share of these zip codes are found in California and the western states, and are expected to produce significant numbers of wires. We have a tremendous opportunity for organic growth in the western states, along with plenty of organic opportunity remaining even in our most established states. For the quarter, our agent base increased 13% over the prior year period, with most agents added in California and the West. Our agent growth helped deliver a 19% increase in unique customers this quarter compared with the prior year period. We finished the quarter with 2.7 million unique customers who transferred with us. Our relationship with the 4 million customers who trust and value our service is a tremendous asset for the company. We will be able to market additional products, like our card products, that I will talk about later, and of course, our digital service to these consumers. In the third quarter, our customers sent money more frequently and also sent larger amounts. As I mentioned earlier, we delivered more than 10.5 million transactions, an increase of 23% over the third quarter of 2020. This is also the largest number of remittances ever sold by the company in one quarter, and as a result, our principal sent increased 36%, to $4.7 billion in the quarter. Again, the most the company has ever sent in a quarter. With our expanding agent network, Intermex continues to capture market share fueled by exceptional growth in transactions across our core markets of Mexico, Guatemala, Honduras, El Salvador, as well as emerging markets. You can see illustrated on the next slide. We now have achieved a 21.8% market share in our combined core markets. We did this with a growth rate 40% faster than the total market for this period. Shown on slide six, emerging markets such as Dominican Republic, Ecuador, and Nicaragua, among others, also continue to experience robust growth during the quarter. The one year growth in these markets was similar to that in our core markets. The emerging markets had much more difficult comp versus last year. In total, our emerging markets grew transactions by 23% compared to third quarter of 2020. However, looking past the impact of the pandemic in 2020, our two-year growth rate for the third quarter is 66% for emerging markets and 39% for our four core markets. Both are very strong performances considering the overall market. While growing a very highly profitable base of retail agents and growing remittances at retail much faster than market, Intermex is also continuing to invest in our digital app and furthering our presence online. On the next slide, you will see the continued penetration of a digital online initiative with transactions increasing 71% compared to the prior year period. Based on the definition of some of our industry competitors who define a digital transaction as a transaction where either side of the remittance is cashless, Intermex processes more than 23% of its transactions digitally. These remittances were either initiated cashless transactions on the send side or recital cashless on the receive side. During the quarter, transactions that were deposited directly into a bank account increased 37% compared with the prior year period. Transactions processed through the use of a debit card at retail, although a small percentage of our overall wires, grew at 78% year-over-year. These transactions will continue to increase as the number of retailers who accept debit cards is expanded. Lastly, another key pillar of our growth strategy is our card product category. Cardirect, Prepaid MasterCard, and Payroll MasterCard. We have been enhancing our systems infrastructure to efficiently and effectively support these products while adding field sales and support personnel to expand our presence in the market to drive meaningful contribution to future revenue and profitability growth. Before I turn the call over to Andres, I'll conclude by saying Intermex continues to execute at a very high level. That execution has led to significant gains in market share, strong growth in revenue, adjusted IBDA, and net income. This has all been accomplished while we have simultaneously invested in the future of our company through the development of our new products. Third quarter represents another period in which Intermex has met or exceeded market expectations for revenue, adjusted IBDA, and net income. Having now been a public company for 13 quarters, we have now met or exceeded our IBDA and net income expectation for 13 consecutive quarters. We are confident in our ability to continue to execute our multi-channel plan, which provides and fuels consumer choice, ultimately resulting in the company's continued growth and strong performance in what we believe is a tremendous growth opportunity that lies ahead. With that, I will turn the call over to our CFO, Andrew Spindy.