International Money Express, Inc.

Good day and thank you for standing by. Welcome to the International Money Express Inc. First Quarter 2025 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker's presentation, there will be a question and answer session. To ask a question during the session, you will need to press star 11 on your telephone. You will then hear an automated message advising your hand is raised. To withdraw your question, please press star 11 again. Please be advised that today's conference is being recorded. I would now like to hand the conference over to your speaker today, Alex Sadowski, Investor Relations Coordinator. Please go ahead.

Good morning, and welcome to the Intermex first quarter 2025 earnings call. I would like to remind everyone that today's call includes forward-looking statements, 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 will 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 our presentation slides, earnings press release, and our quarterly report on Form 10-Q, 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, Anders Bendy. Let me now turn the call over to Bob.

Good morning, everyone. Thanks for joining us today on our first quarter earnings review. The past quarter, brought many changes to the market that were difficult to anticipate. The economic, political, and immigration backdrop presented many challenges to our business model and to the US to Latin America corridor in general. Regardless of this challenging environment, our results reflect the strength of our brand, the excellence of our execution, and our corporate discipline that we continue to bring to our strong and healthy underlying business. The good news is, the overall market for remittances to Latin America remains resilient. The downside is that for the first time in our public history, we have delivered a year-over-year volume growth while experiencing a decline in the number of transactions versus the same period last year. The principal amount per transaction increased, but money transfer fees were lower due to larger send amounts and fewer transactions. This dynamic also had an impact on our foreign exchange profit. While we believe this consumer behavior shift is not in the long term, it is an important dynamic to monitor and one that has impacted our first quarter results. It appears consumers are sending larger principal amounts less often to discern factors about which we can only speculate at this time. Total revenue came in at $144.3 million, net income at $7.8 million, Adjusted EBITDA at $21.6 million. Adjusted diluted EPS was $0.35 per share. While these key metrics were all down year over year, total principal amount sent was up 4%. We believe this is a strong indicator of the underlying strength of our overall business and the resilience of the retail market. Transactions originating at retail remain the foundation of our business in our highly profitable and cash-generating engine. Total volume sent in four out of our five top markets increased significantly with our Intermex brand. Less positive was the fact that four out of the five top markets saw a decrease in transaction sent. Despite that softness, we protected our margins and continued to make smart, targeted investments in our retail business. We focused on the most profitable transactions in state discipline with agent management and continue to optimize at a zip code level, prioritizing our most productive areas. We're also seeing benefits from our operational upgrades. The transaction processing time on our retail platform improved to directly enhance the agent experience. We reduced time from 20 seconds to nine seconds on a typical transaction. We continue to build on the best-in-class system reliability as well, resulting in a total uptime of 99.995%, further supporting our position as the premium retail partner for our highly efficient agent base. We continue to excel in all areas relating to our retail offering, including our best-in-class customer service and banking options for our agent retailers. Now, turning to digital. While our retail platform is the cash engine of our business today, our digital business is the glue of our omnichannel strategy and the most important part of our growth and future. We're growing that business most successfully. In Q1, our digital transactions grew just under 70% year-over-year. Aligned with the digital business strategy, we invested more in the digital marketing than ever before in Q1. We will continue to do so intelligently through daily optimization, and ensuring that every dollar is spent with maximum efficiency. Our customer acquisition costs and LTV projections remain intact as customer acquisition costs are better than projected and our customer retention remains strong. We plan to ramp up our total spend more in the coming quarters as we discussed at our recent Investor Day event. At the same time, engagement across our app, which we believe is the best in class, continues to improve. Our Amigo Paisano brand is now fully integrated and helping us further sharpen our digital acquisition strategies, and our wires-as-a-service pipeline of new partners continues to expand as expected. The infrastructure for robust growth is in place. This includes technology, licenses, and payer relationships, and now it is all about scaling efficiently. We're very encouraged by the performance of our digital business and the long-term opportunity it represents. Our underlying cost performance exhibits the discipline you would expect from Intermix. With salaries and benefits up only 1%, our G&A is up. However, the biggest single driver relative to increasing G&A was our planned digital marketing spend. In February, we completed the shutdown of one of our offshore operation centers supporting La Nationale. We have begun to realize those efficiencies, and we are on track to achieve the approximate $2 million in annual savings we anticipate from those moves. Integration of La Nationale agents onto the Intermex tech platform will continue into the second half of 2025. This places us in a position to further streamline our back office and to ultimately surrender the La Nationale state licenses, further reducing costs while maintaining the look, feel, and integrity of the La Nationale brand. On the balance sheet side, we remain very strong. We ended the quarter with $151.8 million in cash and generated over $10 million in free cash during the quarter. Our net leverage remains low, giving us significant flexibility to invest in growth, continuing to pursue opportunistic share repurchases, and maintain our strong financial foundation. As mentioned, cash generation continues to be the hallmark of this business, and that, again, remains strong, even with the increased investments in digital, retail sales infrastructure, and a challenging macro backdrop. At Intermex, we are focused on what matters most, delivering the best possible service for our customers and doing it with operational excellence. We are a trusted brand for over 6 million customers every year, whether it's through our retail locations or by way of our growing digital channels. Our customers know that they can rely on us to move their hard-earned money quickly securely, and reliably. We have the right foundation in place, including a profitable retail engine, a fast-growing digital platform enhanced by our unique omni-channel strategy, and what we believe the strongest, most well-respected brand in Latin American corridor. We are confident in our ability to continue to deliver value for our shareholders. With that, let me turn the call over to Andrews to walk you through the financials in more detail.