Moneygram Slips To Loss In Q3, Results Miss Estimates - Quick Facts

(RTTNews) - Moneygram International Inc. (MGI), money transfer company, reported that net loss for its third quarter ending September 30, 2014 was $3.0 million or $0.05 per share, compared to net income of $22.5 million or $0.31 per share in the same quarter last year.

The company reported EBITDA of $44.5 million, and pre-tax income of $4.7 million. Results were impacted by $7.8 million of expenses related to reorganization and restructuring costs, $7.1 million of expenses related to the compliance enhancement program, $4.5 million of stock-based and contingent performance compensation expense, $3.7 million of expenses related to direct monitor costs, $3.5 million of loss related to an agent closure, $0.9 million of legal expenses related to certain matters.

Adjusted net income for the quarter fell to $14.5 million or $0.22 per share from $24.9 million or $0.34 per share in the previous year. Analysts polled by Thomson Reuters expected the company to report earnings of $0.34 per share for the quarter. Analysts' estimates typically exclude special items.

Total revenuefor the quarter dropped to $358.0 million from $383.0 million in the previous year. Total revenue, constant currency adjusted, for the latest-quarter was $357.1 million. Wall Street expected revenues of $371.92 million for the quarter.

"MoneyGram's revenue growth was impacted by U.S.-to-U.S. white label competition, and we are taking action to position MoneyGram for the future with new lower prices in the U.S. By launching a nationwide multi-channel marketing campaign, we are confident we will regain our momentum in this market," said Pamela H. Patsley, MoneyGram's chairman and CEO.

Because of the introduction of lower prices, the company removed its previous guidance. For the fourth quarter, the Company estimates Adjusted EBITDA to be between $60 and $65 million due to the anticipated impact from lower prices, the associated marketing expense and softness in certain geographies.