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Mar 31, 2020
Intermex Q1 2020 Earnings Report
Intermex's Q1 2020 results were announced, showcasing significant year-over-year growth in net income and revenue.
Key Takeaways
Intermex reported a strong first quarter in 2020, with an 80% increase in net income compared to the previous year. Revenues also grew by 13.0%, driven by volume growth in the LATAM and Caribbean corridor. Despite challenges from the COVID-19 pandemic, the company remained profitable and generated free cash flow.
Revenues increased by 13.0% compared to the prior year period.
Net income grew by 80.2% to $5.7 million, compared to $3.2 million in Q1 2019.
Basic and diluted earnings per share were $0.15, up from $0.09 in the same quarter last year.
Adjusted EBITDA rose by 22.8% to $13.2 million, driven by higher revenues from volume growth.
Intermex
Intermex
Forward Guidance
Due to the uncertainty caused by the COVID-19 pandemic, Intermex has suspended its financial guidance for 2020. The company remains confident in its customer service and operational excellence.
Positive Outlook
- The company continues to meet the critical needs of customers.
- The company is keeping employees safe and healthy.
- The company has only seen modest declines in year over year volume since the beginning of the crisis.
- Current volumes are well above breakeven on a cash flow basis
- 80% of the Company’s costs are variable with transaction volume.
Challenges Ahead
- The COVID-19 crisis significantly increases uncertainty for the foreseeable future.
- The company is suspending its Financial Guidance for 2020.
- Temporarily closed all 33 Company-operated stores
- Implemented social-distancing practices at Mexico and Guatemala call centers
- Empowered all headquarter and certain other administrative employees to work efficiently from home