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International Money Express, Inc. (IMXI), also known as Intermex, is a leading provider of money remittance services, primarily facilitating transfers from the United States to Latin America and the Caribbean. The company also offers remittance services to Africa and Asia, as well as from Canada and several European countries to various global destinations. IMXI generates revenue through transaction fees, currency exchange spreads, and ancillary financial services, leveraging a robust network of agents and digital platforms to serve its customers.
- Wire Transfer and Money Order Fees - Facilitates money transfers and money orders, generating revenue from transaction fees paid by consumers and shared with agents.
- Foreign Exchange Gain - Manages currency exchange spreads on remittances paid in local currencies, contributing to revenue through exchange rate differentials.
- Other Income - Includes revenue from ancillary services such as check-cashing fees, abandoned property transfers, and fees from money transfer transactions paid with debit or credit cards.
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Given that retail growth is negative and digital channels are absorbing almost all industry growth, how does Intermex plan to strategically invest in both channels to ensure profitability, considering the higher customer acquisition costs in digital?
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With the removal of guidance due to the strategic review process, can you provide more clarity on the potential outcomes being considered, including a possible sale, and how these might affect your future strategic direction and operations?
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You mentioned that digital transactions now have a higher gross margin per transaction than retail; can you elaborate on the unit economics of digital transactions, including specific figures for customer acquisition costs, transaction costs, and payback periods?
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In the face of intensifying competition at retail, including aggressive pricing by smaller competitors, what specific strategies are you employing to maintain or improve your market share and margins in the retail segment?
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After changing the loyalty program terms from points expiring in 180 days to 90 days, have you observed any impact on customer retention or transaction volumes, and what measures are you taking to address potential customer dissatisfaction?
Competitors mentioned in the company's latest 10K filing.
| Company | Description |
|---|---|
The company is identified as one of the larger competitors in the money remittance services market, competing on the basis of value, service, quality, technical and operational differences, commission structure, and marketing efforts. | |
MoneyGram International, Inc. | This competitor is mentioned as one of the larger companies in the money remittance services market, which is highly competitive and includes both large and small providers. |
This company is listed among the larger competitors in the money remittance services market, which is characterized by increasing competition from digital platform providers. | |
This competitor is noted as one of the larger players in the money remittance services market, which is evolving with the emergence of new technologies. | |
RIA | This company is specifically identified as a competing business in the money transfer and remittance services industry. |
Maxi Transfers | This entity is mentioned as a competitor in the money transfer and remittance services sector. |
Dinex | This company is listed as a competitor in the money transfer and remittance services industry. |
Sigue Corporation | This competitor is identified as a competing business in the money transfer and remittance services market. |
Viaamericas Corporation | This company is mentioned as a competitor in the money transfer and remittance services industry. |
| Customer | Relationship | Segment | Details |
|---|---|---|---|
Elektra | Largest paying agent by transaction volume | Remittance | Approximately 25% of total remittance volume in FY 2024 |
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Money Services Entity (UK) | 2024 | Deal Value/Structure: Acquired for approximately $1.4 million in cash (funded with cash on hand) with net identifiable assets of $223,000 and $1.209 million in goodwill. Strategic rationale: Secures a UK remittance license to enable outbound remittance services and expand into new European markets. |
LAN Holdings, Corp. | 2023 | Deal Value/Structure: Completed for $13.4 million (including $10.3 million in cash and an additional $0.6 million tied to operational milestones) with net identifiable assets of around $7.8 million and $5.5 million in goodwill, plus intangible assets. Strategic rationale: Supports geographic expansion into Spain, Italy, and Germany while integrating agent relationships and other intangible assets to enhance operations. |
Envios de Valores La Nacional Corp. | 2022 | Deal Value/Structure: Finalized with an initial $42.3 million cash payment and up to an additional $2.4 million in contingent consideration, with integration planned over four quarters. Strategic rationale: Strengthens market presence in the Northeast U.S. and the Dominican Republic, targeting an annual revenue contribution of $70–80 million post-integration. |
Recent press releases and 8-K filings for IMXI.
International Money Express, Inc. Executes Share Repurchase Agreement
- International Money Express, Inc. entered into a share repurchase agreement with Latin-American Investment Holdings, Inc. to purchase 100,000 shares of its common stock at $13.30 per share, totaling approximately $1.3 million.
- The transaction received approval from the independent Audit Committee and will be funded using the Company's cash on hand.