International Money Express, Inc.

Greetings. Welcome to International Money Express fourth quarter 2021 earnings conference call. At this time, all participants are in listen-only mode. Any question and answer session will follow the formal presentation. If anyone today should require operator assistance during the conference, please press star zero from your telephone keypad. Please note that today's conference is being recorded. At this time, I'll turn the conference over to Mike Galentine, Vice President of Investor Relations. Mr. Galentine, you may now begin.

Good morning, everyone, and welcome to our quarterly earnings call. I would like to remind you that today's call includes forward-looking statements, including our 2022 guidance, and that actual results may differ materially from expectations. For additional information on International Money Express, which we refer to as Intermex or the company, please see our SEC filings, including the risk factors described therein. All forward-looking statements on this call are based on assumptions and beliefs as of today. 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. The company undertakes no obligation to update such information except as required by applicable law. On this conference call, we will discuss certain non-GAAP financial measures. Information required under Reg G under the Securities and Exchange Act with respect to such non-GAAP financial measures is included in the presentation slides, our earnings press release, and our annual report on 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 NNMXonline.com. Presenting on today's call will be our Chairman, Chief Executive Officer and President, Bob Lissy, and Chief Financial Officer, Andres Bendi. Also on the call today is Joseph Aguilar, Chief Operating Officer, Randy Nelson, Chief Revenue Officer, and Chris Hunt, Chief Information Officer. Let me now turn the call over to Bob.

Good morning, and thank you for joining us today. We are proud to announce the fourth quarter and 2021 year-ending results. Let me highlight some of our accomplishments on slide three, compared with fourth quarter and full year 2020. We achieved revenue of $127 million, a 28% increase versus last year. Net income of $13 million, 37% increase. Adjusted net income was $16 million, an increase of 36%. and adjusted IBDA for the quarter of $24 million, an increase of 27%. For the year, revenues were $459 million, an increase of 29% over the previous year. Net income was $47 million, an increase of 39%. Adjusted income was $57 million, an increase of 36%. Adjusted IBDA was $87 million, an increase of 27%. These are very impressive results in their own right, but even more impressive given the comparison to our very strong results of 2020 fourth quarter and full year, in which revenues increased 19% and 12% respectively. That income increased 80% on the quarter and 72% for the year, and adjusted EBITDA grew 32% and 19%. The two-year growth for 2021 was 45% in revenue, 139% in income, and 51% in adjusted VDA. We are truly a stronger, more profitable company than we were when the pandemic began in 2020. This performance validates our high-quality, omni-channel, customer-focused strategy. The company utilizes cutting-edge, high-tech proprietary software through every step of our business to meet the customers where they choose to transact, whether digitally or in person. This allows Intermex to deliver a robust, and easy-to-use agent interface, provide our services efficiently, and support back-office IT infrastructure. As a result, Intermex exhibits all of the characteristics of a high-tech growth company. Importantly, as I will discuss more in greater detail momentarily, because the service we provide to our customers is essential, our business was built to operate well in both good times and in challenging economic environments. We firmly believe this position's intermix to take advantage of a very long runway ahead. Before I provide additional color on the customer side of the business, I would like to discuss the company strategy related to our agent partners, who are carefully chosen to ensure that they share our philosophy of providing superior customer service and support. Our service is vital to customers who may be sending funds to assist their family's critical needs in such areas as housing, food, and medical expenses. We accept that responsibility and work diligently to deliver 100% of the time. We fully expect the agents with whom we work to have the same sense of urgency, realizing that our service is essential and may be life-changing. Our agents are located in areas that have been strategically selected, including the demographic characteristics of the geographies, to help meet the needs of each and every consumer. The agents who partner with us benefit from using our cutting-edge proprietary software that enables the fastest remittance processing in the industry. We continue to endeavor to upgrade our industry-leading platform at retail. In 2021, we invested in significant IT enhancements. One of these investments is the launch of our new Intermex Direct agency software application in December, which features both upgrades in hardware and software. Intermex Direct provides the added benefit of streamlining the process for agents by allowing them to log into one system and access multiple applications with added security and enhancements. The system also benefits Intermex through better reporting and the ability to provide continuous improved support. Agents also choose Intermex because of our strong compliance culture that we have built and in which we continue to invest. Those investments span systems and people to ensure that Intermex remains best in class and at the forefront of the remittance industry. Strong compliance culture allows agents to utilize our extensive network of banking relationships and conveniently located local branches deposit funds. This is an important fact because some of the banks are not willing to bank small businesses that generate large amounts of cash deposits. With Intermix's wide network of banking relationships, we can solve this problem by providing Intermix's own bank accounts for the agent partner to deposit into. Finally, agents benefit from the same top-notch, unparalleled customer service as do our customers, with average speed of answering calls within five seconds and often faster. This quick turnaround time frees the agent to focus on customer service, resulting in shorter wait times and more satisfied customers. We also provide significant value to our customers on the product side, as Intermex firmly believes in providing the customer with choices that best meet how they want to conduct a transaction. We give our consumers the choice of initiating a transaction remotely via our digital app or in person at one of our convenient agent locations or one of our company-operated stores. Consumers can send cash or use a debit card at a convenient retail location, or they can use a debit card, credit card, or bank account to initiate a transaction online. This philosophy of consumer choice also extends to how remittances are received and paid in country. Our customers' beneficiaries can receive money digitally into their bank accounts, loaded on a mobile wallet, paid out in an ATM, paid out over the counter in a convenient retail location, or home delivered. Importantly, all of these funds are available in minutes. We have further enhanced customer choice with the launch of our new digital application this week. This app offers consumers the option of selecting lower fees or higher exchange rate in real time. It also includes enhanced functionality that provides consumers with several options to fund their remittances and payout methods. As with our retail-based remittances, funds are available within minutes and backed by our world-class customer care. The new Intermex application also contains an intuitive navigation flow that allows users to fund a remittance with debit or credit card or ACH for a transfer. Users can select a variety of receiving methods, including cash pack pickup at thousands of locations, direct deposits into bank accounts, debit cards, mobile wallets, and home delivery in select markets. Intermex also expects to make this application available to our co-branded digital and mobile partners in Latin America and Asia. This omnichannel, customer-focused strategy has generated strong and consistent growth for Intermex and has resulted in our taking market share from our competitors. On slide four, in the fourth quarter of 2021, our market share increased to 21% to a record high in our core markets of Mexico, Guatemala, El Salvador, and Honduras. Besides the strong growth we have generated in our core markets, as shown on slide five, emerging markets such as the Dominican Republic, Ecuador, and Nicaragua, among others, continue to experience strong growth during the quarter. Our emerging market business is one of our many bright spots, with transactions increasing 32% from the fourth quarter of 2020. Turning to slide six, as I previously noted, Intermex is continuing to invest in our digital application, and you see the company's continued progress in our digital initiatives, with transactions increasing 96% versus the prior year period. Some of our peers define a digital transaction as one where either side of the remittance is cashless. Based on this definition, Intermex currently processes more than 24% of its transactions digitally. where they were initiated as cashless transactions on the send side or settled as cashless on the receive side. During the fourth quarter, transactions that were deposited directly into bank accounts increased 44% compared with the prior year period. Transactions processed through the use of a debit card at retail are a small percentage of our overall wires but grew at 98% year-over-year. We expect these transactions will continue to increase as we expand the number of retailers who accept debit cards. Lastly, another key pillar of our growth strategy is our card product, where some of our 2021 investment was directed. This category includes card direct, prepaid MasterCard, and payroll MasterCard. We have been enhancing our systems infrastructure to efficiently and effectively support these products, while also adding field sales and support personnel to expand our presence in the market to drive meaningful contribution to future revenue and profitability. We plan on discussing more on this product category on Investor Day we are holding later today, which will be available by webcast for those of you who are unable to attend in person. In a second, I will turn the call over to our CFO, Andrew Spendi, for his remarks on our record financial performance that Intermex delivered for fourth quarter and for full year 2021. I will conclude by reiterating how our unique customer-focused strategy that provides choice matched with high-quality products in the form of reliable, fast money remittance, supported by quality agents and customer service, and utilizing proprietary apps and infrastructure is sustainable and differentiating ourselves. This strategy has produced peer-leading results and positions Intermex as a high-growth fintech leader with sustainable long-term growth strategy. We believe 2022 will be another year of strong, market share growth, coupled with double-digit increases in revenue, net income, and adjusted VDA. And we look forward to sharing our continued progress with you. Now I'll turn the call over to Andres.