International Money Express, Inc.

Good morning and welcome to the International Money Express Inc. fourth quarter and four-year 2022 earnings conference call. All participants will be in listen-only mode. Should you need assistance, please signal conference buses 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 on your telephone keypad. To withdraw a question, please press star then two. Please note this event is being recorded. I would like to turn the conference over to Mike Gallantine, Vice President of Investment 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 2023 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 discussed 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 investor 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 Bendi. Also on the call today are Chris Hunt, Acting Chief Operating Officer, Joseph Aguilar, President, Latin America, Randy Nelson, Chief Revenue Officer, and Marcelo Theodoro, Chief Digital Officer. Let me now turn the call over to Bob.

Good morning, everyone. Welcome and thank you for your interest in Intermex. With yet another year of exceptional performance behind us, we are proud to have established Intermex as the public market's fastest-growing omnichannel remittance company. The number of industrious and hardworking Latin American immigrants working in the U.S. that rely on Intermex transfer money to support their families and loved ones back home continues to grow. With our state-of-the-art proprietary technology and our carefully chosen, highly productive network of retail agents, Intermec stands apart from its peers by delivering a value-added service for our consumers and a value-added partnership for thousands of retailers across the country. Our unique, customer-focused, omni-channel business model drives sustained long-term growth in value for the company and its shareholders. Looking at the fourth quarter, we finished another strong year on a high note. We delivered double-digit growth without interruption. Additionally, we produced online digital growth of 80% in transactions in Q4. We continue to efficiently develop our offering with a focus on unit economics and sustainable profitability. On slide three, for the quarter, we generated revenues of $154 million, up 21%, net income of $13 million, down slightly, adjusted net income of $18 million, up 10%, and adjusted EBITDA of $29 million, up 22%. And for the year, revenues of $547 million, up 19%, net income of $57 million, up 22%, adjusted net income of $70 million, up 22%, and adjusted EBITDA of $105 million, up 21%. During the quarter, we also set a single-day record with almost 250,000 wire transfers on December 23rd, as customers in large numbers turned to Intermex to send money home for the Christmas holidays. We believe this supports our belief that when remittances absolutely need to arrive without a hitch, senders have the greatest trust in the Intermex brand. We appreciate the confidence our customers and retail partners have in us, and we recognize the important role we serve. Intermex is outperforming the industry because of the focus we place on the fundamentals of our business. Our unique approach to retail expansion, as well as our metric-based model, provides for profitable growth well above the market. We concentrate on growing transactions at margins that make sense, enabling us to deliver world-class service through our expanding network of retail partners and our online digital products. where I'm making efficient and productive investments in people, innovative new digital products, and scalable technologies. Driven by our Capital Light model, we consistently achieve operating efficiencies that enable us to generate significant cash to perpetuate growth and make investments that create value for our shareholders. It has been and continues to be a historic and unparalleled track record of success. On slide four, Our share of the fast-growing market where we compete has increased significantly throughout the year, including during the fourth quarter. In the top four Latin American markets of Mexico, Guatemala, El Salvador, and Honduras, we increased our market share by 90 basis points to 22%. On slide five, including the Dominican Republic, these five markets represent 87% of all money sent to the region from the U.S. Subsequent to the national acquisition, we have a 21 share in these critical markets. Our integration of LaNationale's US-based operations contributed to our market share, adding more US-based retail locations and capitalizing on LaNationale's strength as a superior brand to the Dominican Republic. Since completing the US portion of the transaction in November, we have been working to optimize LaNationale's agent footprint and reduce the number of underperforming locations. We are in the latter stages of formalizing a plan to improve operating efficiencies and margins as we transition the business model to one more consistent with the Intermex approach. As for the Europe portion of the acquisition, we continue to make progress with the regulatory approval process. We anticipate regulatory approval in the coming weeks and expect to close the transaction in the second quarter. As we have become more familiar with the European business, we are even more optimistic about the growth potential in the future. In anticipation of completing this transaction, we have begun an executive search for the leader to serve as president of our European division. We believe it is a promising market rife with opportunity for Intermex, both at retail and at the online digital area. Aside from retail, which we believe has the opportunity to be many times larger than it is today, we see a great opportunity relating to the online digital. European remittance customers are more likely to be banked for a number of reasons. We believe we have an opportunity to accelerate our online digital growth in Europe. We feel we can efficiently build a digital presence that is transportable throughout the EU, and we are looking forward to getting it underway. In the US, our digital business is benefiting from an increased consumer acceptance of our mobile app. Our application has gone from an app store rating of 2.7 to 4.7 over the last several months, since we have upgraded our user experience. Our strong brand equity in Latin American community is a large asset driving digital transactions profitably. On slide six, our digital transactions increased 84% in the fourth quarter. Currently, 28% of all transactions are either sent or received digitally. That is up 480 basis points from last year. We continue to maintain positive margins and keep a close eye on unit economics of our digital offering. Our mobile app has been a success enabling Intermex customers to prioritize fee, speed of delivery, or exchange rate to suit their needs. The app combines the best features of choice and ease of use. Importantly, as with retail, our mobile app is supported by our best-in-class customer service. Everything we do is enabled by our rock-solid foundation we have created in the U.S. with a large ecosystem of retail agents. This part of our strategic growth story gives Intermex a true competitive advantage. We have created an extensive, highly productive group of retail agents that have chosen to partner with Intermex because of the value add we offer to both them and their consumers. What we have established in the marketplace is hard to replicate and presents a significant mode around the business to ward off potential competitors. We continue to expand our retail network through carefully chosen, high-performing, profitable agent additions. Our expanding business includes same-store organic growth from our existing agents, and the growth we generate by carefully targeting and recruiting the best retailers to serve our consumers. We focus our recruiting efforts and opportunity geographies across the U.S. with the largest population of Latin American foreign-born individuals. While we continue to grow our agent base in the eastern states, much more of the development efforts are focused on the western U.S., where the opportunity is much more significant. We take great care in the selection of top-notch retailers in neighborhoods that are convenient to where our consumers live and work. We often remind people that to understand our retail business and growth potential fully, you need to consider the profile of the typical Intermex customer. Most are either paid in cash or by paper check and are unbanked. Traditional retail banks are often not conveniently located and do not always welcome these consumers with the same cost-effective convenience service and cultural fit that our agent network can provide. Intermex offers and delivers a time-tested solution that works for our consumers and for our agent partners. It truly sets Intermex apart and well positions us for success and sustained growth. One other update on our technology before I turn the call over to Andres to go over the numbers. Software and hardware upgrades that we initiated during the second half of 2022 are progressing nicely. We are on track to complete the enterprise-wide project during the third quarter of 2023. These upgrades will position Intermex for a rapid rollout of new digital and card products and improve consumer experience at thousands of retail locations and enhance and upgrade AML capabilities. Agents often choose Intermex because of our technology, and the new hardware and software we have launched will further simplify the process for our neighborhood retail agents. They will be able to complete money transfers even more efficiently than they did before, solidifying our position as their partner of choice. For the consumer, it means faster counter service and an enhanced customer service experience. Intermex continues to grow at a sector-leading pace. We had an outstanding 2022 and are anticipating continued exceptional performance in 2023. This will be fueled by the strength of our growing network of retail agents and our upgraded and much improved online digital application. Both areas will be given our best in class customer service. We will continue to make financially sound and metrically smart decisions as we continue to invest in people and technology that will deliver the best products and service in the industry. Here's Andrews to go over the numbers.