MoneyGram International Announces Full Year 2007 Results

Mar.25, 2008 in Market Outlook

Files 2007 10-K Completes Comprehensive Recapitalization Agreement

MINNEAPOLIS, Mar 25, 2008 (BUSINESS WIRE) — MoneyGram International, Inc. (MGI),
today announced full year 2007 financial results and filed its 2007 Form 10-K. As
previously announced, the Company successfully completed the transaction with an
investment group (the “Investors”) led by Thomas H. Lee Partners, L.P. (THL) and
Goldman, Sachs & Co. (Goldman Sachs), to provide for a comprehensive
recapitalization of the Company.

The recapitalization included the purchase of $760 million of Series B and Series
B-1 Preferred Stock, convertible into 79% of the common equity of the Company at
an initial conversion price of $2.50 per share, by the Investors. The Company
also received $500 million in debt financing from affiliates of Goldman Sachs and
the Company obtained an additional $250 million in senior debt financing.
Following completion of the transaction, the Company has $100 million of
revolving credit available under its $350 million credit agreement.

Investors are urged to carefully read MoneyGram’s 2007 Form 10-K, which has been
filed with the Securities and Exchange Commission and is posted on the Company’s
website at http://www.moneygram.com, for a detailed description of the
recapitalization and an analysis of Company’s 2007 financial performance. The
limited information that follows in this press release is inadequate for making
an informed investment judgment or for an evaluation of MoneyGram’s 2007
financial performance due to a number of significant items that have impacted the
Company’s business.

The Company’s loss from continuing operations of ($1.07) billion, or loss per
diluted share from continuing operations of ($12.94) compared to net income of
$124 million, or $1.45 for the full year 2006. The fourth quarter 2007 loss from
continuing operations was ($1.17) billion, or ($14.18) per diluted share,
compared to net income of $26.4 million, or $0.31 per diluted share in the fourth
quarter of 2006. Financial results from continuing operations include $1.2
billion of net securities losses resulting from the decline in the value of the
Company’s investment portfolio.

Operating results from continuing operations for the fourth quarter and full year
2007 were affected by several significant items:

– During the fourth quarter of 2007 the Company recorded $1.2 billion of
other-than-temporary impairments in its investment portfolio.

– Fee and other revenue increased 24 percent in the fourth quarter and 24
percent in the full year 2007, driven primarily by continued growth in money
transfer transaction volume. Global Fund Transfer segment fee and other revenue
grew 25 percent in the fourth quarter and 25 percent in 2007. Growth in money
transfer fee and other revenue (including bill payment services) increased 28
percent over the prior year and continued to be in line with growth in money
transfer transaction volume, which increased 27 percent during the year as a
result of network expansion and targeted pricing initiatives.

– Expenses increased by 12 percent in the fourth quarter and 16 percent in full
year 2007 driven primarily by increased transaction and operations support costs,
increased headcount and increased infrastructure costs to support the growth of
the money transfer business and increases in depreciation and amortization.

About MoneyGram International, Inc.

MoneyGram International, Inc. is a leading global payment services company. The
company’s major products and services include global money transfers, money
orders and payment processing solutions for financial institutions and retail
customers. MoneyGram is a New York Stock Exchange listed company with
approximately 150,000 global money transfer agent locations in 180 countries and
territories. For more information, visit the company’s website at
http://www.moneygram.com.

Did you like this? If so, please bookmark it,