International Money Express, Inc.

Good morning and welcome to the International Money Express third quarter 2022 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on your telephone keypad. To withdraw your question, please press star then two. Please note, this event is being recorded. I would now like to turn the conference over to Mike Galentine. 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 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 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 discuss certain non-GAAP financial measures. Information required by Regulation G under the Securities and Exchange Act for 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 intermexonline.com. Presenting on today's call is our Chairman, Chief Executive Officer and President, Bob Lissy, and Chief Financial Officer, Andres Bendy. Also on the call today are Joseph Aguilar, Chief Operating Officer, Randy Nelson, Chief Revenue Officer, Chris Hunt, Chief Information Officer, and Marcelo Theodoro, Chief Digital Officer. Let me now turn the call over to Bob.

Good morning, everyone. Thank you for joining us. We appreciate your interest in Intermex. Our strong growth continues as we build on our market-leading position as one of the world's premier remittance service companies. On slide three, The company achieved record performance during the third quarter in every way we measure success. Total remittances, revenue, net income, and adjusted BDA all set records in the quarter. The number of customers, total dollars sent, and the market share all reached new highs. This strong performance reflects the company's ability to sustain exceptional growth that our unique omni-channel business model affords us. Intermex remains one of the fastest growing companies in the sector. We are creating tremendous value for shareholders by delivering on our highly strategic and very profitable business plan. We are focused on maximizing the performance of our existing base of highly productive retail agents by carefully and strategically expanding our presence and opportunity zip codes through high volume neighborhood retailers. We do this intelligently and profitably as we advance the development of our state of the art digital offering. We provide customers with the choice to send money home to their loved ones by any means they choose, ultimately delivering convenience and, most importantly, choice. Strategy is clearly working. Intermex is outperforming its peers in top-line and profitability growth, and the company continues to capture market share at an impressive rate, outpacing the growth of the market overall. On slide four, in the four key markets of Mexico, Guatemala, El Salvador, and Honduras collectively, which account for 75 percent of all money transferred from the U.S. to Latin America, the market grew by a very healthy 13 percent during third quarter. Intermex continued to grow faster than the market, reaching a market share of more than 22 percent, an accomplishment we are very proud of and a growth trend we will work hard to sustain. As you see on slide five, with the U.S. portion of La Nationale transaction completed, Intermex is a market leader in all top five Latin American and Caribbean markets, adding Dominican Republic to our portfolio. If we add Nicaragua and Ecuador into the mix, these countries collectively represent 87% of all money sent to the region from the U.S. In aggregate, we have more than a 20% market share in these key corridors, and we continue to grow. On slide six, on the digital front, our consumer-facing mobile apps and online platform continue to grow in triple digits. Consumer acceptance of our digital platform and services is increasing, and we're achieving this efficiently and profitably. We have grown the total number of transactions that are deposited directly into bank accounts to 28% as a result of expanding our digital penetration on the receive side. The adoption rate of our mobile app that we launched earlier this year is showing great promise. The app combines the best features of choice and ease of use, allowing the consumer, using their smartphone, to select between the best transaction fee, speed of delivery, or exchange rate to suit their preferences. We see a tremendous opportunity to empower our customers to participate in the e-commerce economy. That includes products such as our general purpose reloadable card, which bridges the gap for customers who have easy access to digital platforms and devices, but not necessarily to banks. As we improve the digital consumer experience, we're keeping a close eye on unit economics with the intent of maintaining healthy gross margins. We continue to leverage our strong brand equity in Latin American community to drive our growth in digital online transactions. Another important component of our strategy is the investment we're making to upgrade our proprietary, enterprise-wide technology platform. We're making software and hardware upgrades that will enable the rapid rollout of new products and continuous improvement of the consumer experience at our thousands of agent locations across the U.S., while enhancing our digital offering as well. We have been rolling out our IMX Direct software package, which is our retail technology along with new upgraded hardware that will simplify the wire transaction process for our neighborhood retail agents and enable them to complete transactions even more quickly than they did before, while upgrading our AML capabilities. Many of our agents manage small retail establishments with limited staff and by necessity have to multitask. Making it easier for them to complete transactions enables them to focus more on their core business, which also provides faster counter service for our consumers. IMX Connect unifies all the company's retail software, mobile, and online applications on a single enterprise integration platform. The system upgrades fully integrate all consumer-facing B2B digital offerings, streamlining the development or rollout of new digital products. The improvements will enable the onboarding and activation of new digital customers and cross-selling across all of our product lines. We expect our retail agents to be converted to the new platform by the end of the second quarter of next year. For those who have already made the transition, we're seeing early indications that the upgrades are facilitating a sale of more transactions at a greater speed. Through this combination of hardware and software development, we're solidifying our competitive advantage as preferred remittance provider for our retail partners. This is important because our retail network drives large transaction volumes at a very profitable margin while delivering an excellent return on investment. We have developed this growing network of highly efficient, best-in-class agents through our strategic approach to agent selection development. It requires time and a lot of hard work, which makes it difficult for new or existing competitors to infiltrate and replicate. On slide seven, Expanding our agent network is one of the keys to the company's long-term success. The opportunity we see ahead for the retail side of our business is significant. Our retail network is a dominant presence in the industry and provides Intermex with an exceptional baseline for growth. That includes both same-store organic growth from our existing agents and the growth we generate by carefully recruiting the best high-performing targeted retailers. We have been consistently expanding our retail network by recruiting high-performance retailers throughout the country by zip code. The largest opportunities exist in the western United States. We focus on zip codes with the largest foreign-born population of Latin Americans. That strategy resulted in a 9% increase in year-over-year growth in the number of Intermex agents during third quarter. Each of our new agents is carefully recruited in neighborhoods convenient to where our customers live, work, and transact business. To fully understand the growth potential of our retail business, it's important to remember that the vast majority of our Intermex customers are paid either in cash or by paper check. Most are unbanked. Traditional retail banks are often not conveniently located and do not always welcome the consumer with the same cost-effective, convenient personal finance solutions and cultural fit that our agent network can provide. On payday, it is easy and convenient for our customers to drop by their local retailer, cast their check, and send money home. It is an environment that they are comfortable and familiar with, and they are transacting business with someone they trust and in their native language. Our attention to personalized, best-in-class customer service combined with scalable, proprietary technology that powers our business is why Intermex stands out from its peers. Intermex is the only omni-channel, remittance provider that continues to grow revenue and profitability through our retail network each and every quarter by more than double digits while achieving triple-digit growth in our digital online division year over year. We believe this omnichannel strategy and willingness to meet the consumer where they choose, combined with our customer service approach and world-class technology, place Intermex in an excellent position to continue to grow and flourish for many years to come. With that, I turn the call over to Anders.