International Money Express, Inc.

Thank you for standing by. This is the conference operator. Welcome to the International Money Express Inc. Second Quarter 2022 Earnings Conference Call. As a reminder, all participants are in listen-only mode and the conference is being recorded. After the presentation, there'll be an opportunity to ask questions. To join the question queue, you may press star then 1 on your telephone keypad. Should you need assistance during the conference call, You may signal an operator by pressing star and zero. I would now like to turn the conference over to Mike Galentine, Vice President of Investor Relations. Please go ahead.

Good morning and welcome to our quarterly earnings call. I would like to remind everyone that today's call includes forward-looking statements, including our updated 2022 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 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 our slide in our presentation 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 discussed certain non-GAAP financial measures. Information required by Regulation G under the Securities and Exchange Act for such non-GAAP financial measures 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 investor section on our website at intermexonline.com. Presenting on today's call is our Chairman, Chief Executive Officer and President, Bob Lissy, and Chief Financial Officer, Andres Bendi. Also on the call today are 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. As always, we appreciate your interest in Intermex. The company's unprecedented growth continued unabated during the second quarter as we set a number of notable performance records and reached some significant milestones. On slide three, during the three-month period, we completed a record number of remittances, driving record revenues adjusted to the DA and net income. I'm proud to report that Intermex is selling almost twice as many transactions as we did when we became a public company just four years ago. To put our history of performance excellence in perspective, we have met or beaten IBIDEA expectations every quarter since we went public, 16 out of 16 quarters. Intermex is delivering sector-leading profitable growth and consistently strong operating results, creating significant value for our shareholders. As for important milestones on slide four, we surpassed 4 million wires in a single month for the first time in May. Strong volume during Mother's Day weekend, which is always a significant event in our industry, helped us achieve that record. We sold 650,000 wires during Mother's Day weekend and 232,000 wires on Mother's Day itself, which also were company records. We ramp up every year for Mother's Day because we know how important it is for our customers to honor their mothers, grandmothers, and other important women in their lives by sending money home. Our omnichannel strategy, which we articulated several quarters ago, is the foundation for our impressive growth. This strategy enables remittance senders to match their preferred way of sending wires home using various payment methods, including conveniently located best-in-class agents, or our state-of-the-art digital platform. Turning to slide five, our network of high-quality, high-volume neighborhood agents is the largest and most established distribution channel. Our growing network of highly efficient Intermex agents has been carefully crafted through a lot of hard work that makes it difficult for new or existing competitors to replicate. It is a dominant presence and an exceptional baseline for growth. Expanding our agent network is the key to the company's long-term success, and the opportunity ahead is significant. During the second quarter, the number of Intermex agents grew 11% compared with the same period last year. Within our agent network, there is a built-in opportunity for organic same-store growth. As agents mature from year one to year two, their average number of wires increases significantly. We see the same pattern repeat from year two to year three, and again going into year four. So as you can see, our retail business is growing vigorously and profitably. We are confident that that pace of growth we are achieving is sustainable over time. We're expanding the retail side of our business through surgical-focused efforts to recreate highly productive retailers in unserved and underserved zip codes. This highly targeted recruitment of retailers places our agents conveniently and efficiently where the business is being transacted. We have identified over 1,800 zip codes in the U.S. with populations of 2,000 or more foreign-born Hispanic residents where an Intermex agent is not conveniently located. We have also identified an additional 1,000 zip codes where we do not have an optimal agent presence to support the population of potential customers. Our market research and experience tells us most of our current and potential customers prefer to do business in person. We believe 90% of Intermex customers are paid in cash or by paper check, and many of these customers are unbanked. They use our retail channel because it is easy, convenient, and safe for them to stop at a local retailer on payday to send money directly home to their loved ones. It is more than just convenience, though. It is a matter of trust. Banks are not always welcoming or cost-effective solution for our customers, so many prefer doing business in their community at retail stores with a merchant they know and are comfortable with. A retailer speaks their language and understands their culture. That said, we're seeing a growing number of Intermex customers turning to their smartphones or other electronic devices to wire money home as they choose alternative benefits provided by using our state-of-the-art mobile app we launched earlier this year. The app combines the best features of choice and ease of use. For example, customers can select between the best transaction fee speed of delivery, or exchange rate to suit their preferences. Staying ahead of the consumer demand for digital remittance channels is another of our key strategic priorities. Demonstrating that commitment to expand our digital capabilities on slide six, we recently added a senior level executive to our leadership team to help build this important part of our business. Marcelo Theodoro joined our company as our chief digital officer, coming to us from XP Incorporated, where he was the EVP and head of business units focused on the company's digital and card products. Before that, he was a global head of digital products and solutions for MasterCard worldwide. We're fortunate to have Marcelo's expertise on board. We will rely on him to oversee our digital initiatives and further develop our card products, including our general-purpose reloadable card. The challenge for our customers, though, is not access to technology. It is being unbanked. And our GPR card is designed to provide an alternative to bridge that gap. Marcelo will take the lead in empowering our consumers to participate in e-commerce economy, providing with more opportunities for inclusion. He will be building our digital business on an innovative and highly scalable technology that already sets us apart from our peers. Pure world-class customer service is another point of differentiation for Intermex. Whether our customers are wiring money in person or using our digital platform, they know they can rely on us to help them complete their transactions easily, safely, and efficiently. Backing that commitment to customer service is our call centers. We have 600 highly trained customer service reps on staff who are available to help our retail agents and our customers on a moment's notice. It routinely takes us five seconds or less to answer the phone with a live person with a customer or an agent calls. Even on Mother's Day, while some competitors were apologizing for excessive hold times due to the increased volume, with some hold times running as much as 20 minutes or more, we continued to answer our phones in five seconds or less. That is important to our partner agents in thousands of retail locations across the country who value how quickly and efficiently they can deliver service to their customers. It is also important to our customers who are venturing onto a digital platform to complete transactions on their own. If they have an issue, they can call and in seconds be talking to a person who speaks their native language. With this emphasis on service, we put the customer in charge. It's a powerful combination. Our best-in-class technology combined with our best-in-class customer service delivers the highest level of service to our customers in the remittance space. Turning to our global expansion efforts on slide seven, let me give you an update on the national acquisitions. We're working through the necessary regulatory approvals at the state and country level. We expect to close the transaction during the third quarter. We will let you know as soon as the deal is completed. With the completion of the transaction, Intermex will be a market leader in all top five Latin American Caribbean markets, adding the Dominican Republic to the list. The DR, along with Mexico, Guatemala, El Salvador, and Honduras, collectively represent 83 percent of all money sent to the region from the U.S. In aggregate, we'll have more than a 21% market share in these five key markets. Acquiring La Nationale and land holdings will also enable us to enter the European remittance market for the first time, expanding our global reach from 28 to more than 70 countries. In summary, we expect Intermex to continue to grow faster than the high-growth market in which we compete. We will continue to win with our retail and online business because we have developed through our metrical approach the most productive agent retail network in the industry, complemented by industry-leading technology and outstanding customer service. There continues to be significant positive momentum for Intermex and our shareholders. With that, I will turn the call over to Anders Bendi, our Chief Financial Officer, to provide more context around the strong results we reported this morning.