International Money Express Inc

Previous wording

We are a leading omnichannel money remittance services company focused primarily on the United States of America (“United States” or “U.S.”) to Latin America and the Caribbean (“LAC”) corridor, which includes Mexico, Central and South America and the Caribbean. We also provide our remittances services to Africa and Asia from the United States and offer sending services from Canada to Latin America and Africa. Also, through the acquisition of LAN Holdings we now provide remittance services from Spain, Italy and Germany to Africa, Asia and Latin America. We utilize our proprietary technology to deliver convenient, reliable and value-added services to consumers through a broad network of sending and paying agents. Our remittance services, which include a comprehensive suite of ancillary financial processing solutions and payment services, are available in all 50 states in the U.S., Washington D.C., Puerto Rico and 13 provinces in Canada, as well as in certain locations in Spain, Italy and Germany, where consumers can send money to beneficiaries in more than 60 countries in LAC, Africa and Asia. Our services are accessible in person through over 180,000 independent sending and paying agents and 120 Company-operated stores, as well as online and via Internet-enabled mobile devices. Additionally, our product and service portfolio include online payment options, pre-paid debit cards and direct deposit payroll cards, which may present different cost, demand, regulatory and risk profiles relative to our core money remittance business.

Current wording

We are a leading omnichannel money remittance services company focused primarily on the United States of America (“United States” or “U.S.”) to Latin America and the Caribbean (“LAC”) corridor, which includes Mexico, Central and South America and the Caribbean. We also provide our remittances services to Africa and Asia from the United States and offer sending services from Canada to Latin America and Africa. Also, through the acquisition of LAN Holdings we now provide remittance services from Spain, Italy and Germany to Africa, Asia and Latin America. We utilize our proprietary technology to deliver convenient, reliable and value-added services to consumers through a broad network of sending and paying agents as well as our own Company-operated stores and paying entities. Our remittance services, which include a comprehensive suite of ancillary financial processing solutions and payment services, are available in all 50 states in the U.S., Washington D.C., Puerto Rico and 13 provinces in Canada, as well as in certain locations in Spain, Italy and Germany, where consumers can send money to beneficiaries in more than 60 countries in LAC, Africa and Asia. Our services are accessible in person through over 180,000 independent sending and paying agents and 118 Company-operated stores, as well as online and via Internet-enabled mobile devices. Additionally, our product and service portfolio include online payment options, pre-paid debit cards and direct deposit payroll cards, which may present different cost, demand, regulatory and risk profiles relative to our core money remittance business.

Previous wording

Our money remittance services enable consumers to send funds through our broad network of locations in the United States, Canada, Spain, Italy and Germany that are primarily operated by third-party businesses, as well as through our Company-operated stores located in those jurisdictions. Transactions are processed and payment is collected by our agents (“sending agent(s)”) and those funds become available for pickup by the beneficiary at the designated destination, usually within minutes, at any Intermex payer location (“paying agent(s)”). We refer to our sending agents and our paying agents collectively as agents. In addition, our services are offered digitally through Intermexonline.com, online.i-transfer.es and via Internet-enabled mobile devices. For the three months ended March 31, 2024, we have grown our agent network by approximately 0.9%. For the three months ended March 31, 2024, principal amount sent increased by approximately 2.6% to $5.5 billion, as compared to the same period in 2023, and total remittances processed were approximately 13.5 million, representing an increase of approximately 4.8%, as compared to the same period in 2023 primarily related to increased volume generated by our agent network.

Current wording

Our money remittance services enable consumers to send funds through our broad network of locations in the United States, Canada, Spain, Italy and Germany that are primarily operated by third-party businesses, as well as through our Company-operated stores located in those jurisdictions. Transactions are processed and payment is collected by our agents (“sending agent(s)”) and those funds become available for pickup by the beneficiary at the designated destination, usually within minutes, at any Intermex payer location (“paying agent(s)”). We refer to our sending agents and our paying agents collectively as agents. In addition, our services are offered digitally through Intermexonline.com, online.i-transfer.es and via Internet-enabled mobile devices. For the six months ended June 30, 2024, we have grown our agent network by approximately 0.5%. For the six months ended June 30, 2024, principal amount sent increased by approximately 1.4% to $11.9 billion, as compared to the same period in 2023, and total remittances processed were approximately 28.7 million, representing an increase of approximately 2.7%, as compared to the same period in 2023 primarily related to increased volume generated by our agent network.

Previous wording

During the second quarter of 2024, the Company intends to implement a Restructuring Plan (the “Plan") primarily related to its foreign operations. The objectives of the Plan are to reorganize the workforce, streamline operational processes, as well as increase efficiencies within the Company. We expect to incur restructuring costs of approximately $2.4 million in connection with the Plan.

Current wording

During the second quarter of 2024, the Company recorded restructuring costs primarily related to certain of its foreign operations and La Nacional. These restructuring costs are part of the Company's plan, for which the objectives are to reorganize the workforce, streamline operational processes, integrate technology functionality as well as increase efficiencies within the Company.

Previous wording

As a result of implementing the Plan, the Company expects to reduce compensation expense and certain facilities related charges in an amount of approximately $2.0 million a year. The anticipated effect of this reduction in expenses will be primarily realized during 2025. In addition, the Company does not expect that the Plan will result in any material reduction of revenues or increase of its ongoing operating expenses.

Current wording

As a result of implementing this strategy, the Company expects to reduce compensation expense and certain facilities related charges in an amount of approximately [$2.0 million] a year. The anticipated effect of this reduction in expenses will be primarily realized during 2025. In addition, the Company does not expect that the execution of this strategy will result in any material reduction of revenues or increase of its ongoing operating expenses.

Previous wording

•the Company’s ability to successfully execute, manage, integrate and obtain the anticipated financial benefits of key acquisitions and mergers;

Current wording

•our ability to successfully execute, manage, integrate and obtain the anticipated financial benefits of key acquisitions and mergers;

Previous wording

Political, social and economic conditions in key Latin American markets continue to exhibit instability, as evidenced by higher interest rates, high unemployment rates, restricted lending activity, higher inflation, volatility in foreign currencies and low consumer confidence, among other economic and market factors. Our business has generally been resilient during times of economic instability as money remittances are essential to many recipients, with the funds used by the receiving parties for their daily needs; however, long-term sustained appreciation of the Mexican peso or Guatemalan quetzal as compared to the U.S. dollar could negatively affect our revenues and profitability.

Current wording

Political, social and economic conditions in key Latin American markets continue to exhibit instability, as evidenced by higher interest rates, high unemployment rates, restricted lending activity, higher inflation, volatility in foreign currencies and low consumer confidence, among other economic, political and market factors. Our business has generally been resilient during times of economic instability as money remittances are essential to many recipients, with the funds used by the receiving parties for their daily needs; however, long-term sustained appreciation of the Mexican peso or Guatemalan quetzal as compared to the U.S. dollar could negatively affect our revenues and profitability.

Previous wording

We have encountered and continue to expect to encounter increasing competition as new electronic platforms emerge that enable consumers to send and receive money through a variety of channels, but we do not expect adoption rates to be as significant in the near term for the consumer segment we serve. Regardless, we continue to innovate in the industry by differentiating our money remittance business through programs to foster loyalty among agents as well as consumers and have expanded our channels through which our services are accessed to include online and mobile offerings which are experiencing consumer adoption.

Current wording

We have encountered and continue to expect to encounter increasing competition as new electronic platforms emerge that enable consumers to send and receive money through a variety of channels, but we do not expect adoption rates to be as significant in the near term for the consumer segment we serve. Regardless, we continue to innovate in the industry by differentiating our money remittance business through programs to foster loyalty among agents as well as consumers and have expanded our channels through which our services are accessed to include online and mobile offerings which are experiencing increased consumer adoption.

Previous wording

In assessing the performance of our business, we consider a variety of performance and financial measures. The key indicators of the financial condition and operating performance of our business are revenues, service charges from agents and banks, salaries and benefits, other selling, general and administrative expenses and net income. To help us assess our performance with these key indicators, we primarily use Adjusted Net Income, Adjusted Earnings per Share and Adjusted EBITDA as non-GAAP financial measures. We believe these non-GAAP measures provide useful information to investors and expanded insight to measure our revenue and cost performance as a supplement to our U.S. GAAP condensed consolidated financial statements. See the “Adjusted Net Income and Adjusted Earnings per Share” and “Adjusted EBITDA” sections below for reconciliations of these non-GAAP financial measures to net income and earnings per share, our closest GAAP measures.

Current wording

In assessing the performance of our business, we consider a variety of performance and financial measures. The key indicators of the financial condition and operating performance of our business are revenues, service charges from agents and banks, salaries and benefits, other selling, general and administrative expenses and net income. To help us assess our performance with these key indicators, we primarily use Adjusted Net Income, Adjusted Earnings per Share and Adjusted EBITDA as non-GAAP financial measures. We believe these non-GAAP measures provide useful information to investors and expanded insight to measure our revenue and cost performance as a

Previous wording

between the set exchange rate charged by us to the sender and the rate available to us in the wholesale foreign exchange market. Also, we generate revenues from technology services provided to the independent network of agents that utilize the Company’s technology in processing transactions paid by credit or debit card, check cashing services and maintenance fees, for which revenue is derived by a fee per transaction.

Current wording

Transaction volume is the primary generator of revenue in our business. Revenue on transactions is derived primarily from transaction fees paid by consumers to transfer money. Revenues per transaction vary based upon send and receive locations and the amount sent. In certain transactions involving different send and receive currencies, we generate foreign exchange gains based on the difference between the set exchange rate charged by us to the sender and the rate available to us in the wholesale foreign exchange market. Also, we generate revenues from technology services provided to the independent network of agents that utilize the Company’s technology in processing transactions paid by credit or debit card, check cashing services and maintenance fees, for which revenue is derived by a fee per transaction.

Previous wording

Salaries and benefits include cash and share-based compensation associated with our corporate employees and sales team as well as employees at our Company-operated stores. Corporate employees include management, customer service, compliance, information technology, operations, finance, legal and human resources. Our sales team, located throughout the United States, Canada, Spain and Italy, is focused on supporting and growing our sending agent network. Share-based compensation is primarily recognized as an expense on a straight-line basis over the requisite service period; unrecognized compensation expense related to stock options, restricted stock units (“RSUs”), restricted stock awards (“RSAs”) and performance stock units (“PSUs”) of approximately $19.2 million is expected to be recognized over a weighted-average period of 2.1 years.

Current wording

Salaries and benefits include cash and share-based compensation associated with our corporate employees and sales team as well as employees at our Company-operated stores. Corporate employees include management, customer service, compliance, information technology, operations, finance, legal and human resources. Our sales team, located throughout the United States, Canada, Spain and Italy, is focused on supporting and growing our sending agent network. Share-based compensation is primarily recognized as an expense on a straight-line basis over the requisite service period; unrecognized compensation expense related restricted stock units (“RSUs”), restricted stock awards (“RSAs”) and performance stock units (“PSUs”) of approximately $17.9 million is expected to be recognized over a weighted-average period of 2.0 years.

Previous wording

Interest expense consists primarily of interest associated with our debt, which consists of a term loan facility and a revolving credit facility. The effective interest rates for the three months ended March 31, 2024 for the term loan facility and revolving credit facility, were 8.70% and 1.93%, respectively.

Current wording

Interest expense consists primarily of interest associated with our debt, which consists of a term loan facility and a revolving credit facility. The effective interest rates for the six months ended June 30, 2024 for the term loan facility and revolving credit facility were 8.70% and 2.31%, respectively.

Previous wording

Our business is organized around one reportable segment that provides money transmittal services primarily between the United States and Canada to Mexico, Guatemala and other countries in Latin America, Africa, Asia and Europe through a network of authorized agents located in various unaffiliated retail establishments and 120 Company-operated stores throughout the United States, Canada, Spain, Italy and Germany. This is based on the objectives of the business and how our chief operating decision maker, the CEO and President, monitors operating performance and allocates resources.

Current wording

Our business is organized around one reportable segment that provides money transmittal services primarily between the United States and Canada to Mexico, Guatemala and other countries in Latin America, Africa, Asia and Europe through a network of authorized agents located in various unaffiliated retail establishments and 118 Company-operated stores throughout the United States, Canada, Spain, Italy and Germany. This is based on the objectives of the business and how our chief operating decision maker, the CEO and President, monitors operating performance and allocates resources.

Previous wording

Wire transfer and money order fees, net of $126.9 million for the three months ended March 31, 2024 increased by $2.4 million, or 1.9%, from $124.5 million for the three months ended March 31, 2023. The increase was primarily due to a 4.8% increase in transaction volume in the three months ended March 31, 2024 compared to the three months ended March 31, 2023, largely due to the continued

Current wording

Wire transfer and money order fees, net of $145.8 million for the three months ended June 30, 2024 increased by $1.3 million, or 1%, from $144.5 million for the three months ended June 30, 2023. The increase was primarily due to a 1% increase in transaction volume in

Previous wording

Revenues from foreign exchange gain, net of $20.3 million for the three months ended March 31, 2024 increased by $1.1 million, or 5.7%, from $19.2 million for the three months ended March 31, 2023. This increase was primarily due to higher transaction volume and principal amount sent by our agent network combined with a higher foreign exchange spread on money transfers sent to certain countries in LAC.

Current wording

Revenues from foreign exchange gain, net of $22.8 million for the three months ended June 30, 2024 increased by $0.4 million, or 2%, from $22.4 million for the three months ended June 30, 2023. This increase was primarily due to higher transaction volume and principal amount sent by our agent network combined with a slightly higher foreign exchange spread on money transfers sent to certain countries in LAC.

Previous wording

Other selling, general and administrative expenses — Other selling, general and administrative expenses of $11.6 million for the three months ended March 31, 2024 increased by $0.3 million, or 2.7%, from $11.3 million for the three months ended March 31, 2023.

Current wording

Other selling, general and administrative expenses — Other selling, general and administrative expenses of $12.3 million for the three months ended June 30, 2024 decreased by $0.3 million, or 2.4%, from $12.6 million for the three months ended June 30, 2023.

Previous wording

The increase was primarily the result of:

Current wording

The decrease was primarily the result of:

Previous wording

•$0.2 million - decrease in facilities related expenses during the three months ended March 31, 2023 primarily related to facility closures as a result of the restructuring of La Nacional during the third quarter of 2023; and

Current wording

•$0.3 million - decrease in facilities related expenses during the three months ended June 30, 2024 primarily related to facility closures as a result of the restructuring of La Nacional during the third quarter of 2023.

Previous wording

Income tax provision — Income tax provision was $4.8 million for the three months ended March 31, 2024, which represents a decrease of $0.1 million from an income tax provision of $4.9 million for the three months ended March 31, 2023. The decrease in income tax provision was mainly attributable to a decrease in our effective state tax rate as well as higher deductible share based compensation for the three months ended March 31, 2024.

Current wording

Income tax provision — Income tax provision was $5.8 million for the three months ended June 30, 2024, which represents a decrease of $0.9 million from an income tax provision of $6.7 million for the three months ended June 30, 2023. The decrease in income tax provision was mainly attributable to lower income before taxes, a decrease in our effective state tax rate and higher deductible share-based compensation for the three months ended June 30, 2024.

Previous wording

We reported Net Income of $12.1 million for the three months ended March 31, 2024 compared to Net Income of $11.8 million for the three months ended March 31, 2023, which resulted in an increase of $0.3 million, or 2.9%, due to the same factors discussed above.

Current wording

We reported Net Income of $14.0 million for the three months ended June 30, 2024 compared to Net Income of $15.4 million for the three months ended June 30, 2023, which resulted in a decrease of $1.4 million, or 9.1%, due to the same factors discussed above.

Previous wording

Adjusted Net Income for the three months ended March 31, 2024 was $14.7 million, representing an increase of $0.5 million, or 3.5%, from Adjusted Net Income of $14.2 million for the three months ended March 31, 2023. The increase in Adjusted Net Income was primarily due to an increase in Net Income discussed above and the higher net effect of the adjusting items detailed in the table below.

Current wording

Adjusted Net Income for the three months ended June 30, 2024 was $18.1 million, representing a slight decrease of $0.3 million from Adjusted Net Income of $18.4 million for the three months ended June 30, 2023. The decrease in Adjusted Net Income was primarily due to the decrease in Net Income discussed above, offset by the higher net effect of the adjusting items detailed in the table below.

Previous wording

(d)Represents the amortization of intangible assets that resulted from business acquisition transactions.

Current wording

(f)Represents the amortization of intangible assets that resulted from business acquisition transactions.

Previous wording

(e)Represents the current and deferred tax impact of the taxable adjustments to Net Income using the Company’s blended federal and state tax rate for each period. Relevant tax-deductible adjustments include all adjustments to Net Income.

Current wording

(g)Represents the current and deferred tax impact of the taxable adjustments to Net Income using the Company’s blended federal and state tax rate for each period. Relevant tax-deductible adjustments include all adjustments to Net Income.

Previous wording

Adjusted Earnings per Share - Diluted for the three months ended March 31, 2024 was $0.43, representing an increase of $0.05, or 13.2%, compared to $0.38 for the three months ended March 31, 2023. The increase in Adjusted Earnings per Share - Diluted was primarily due to the increase in Net Income and the higher net effect of the adjusting items detailed in the table above combined with the effect of a lower weighted average common shares total for the period due to stock repurchases.

Current wording

Adjusted Earnings per Share - Diluted for the three months ended June 30, 2024 was $0.55, representing an increase of $0.05, or 10.0%, compared to $0.50 for the three months ended June 30, 2023. The increase in Adjusted Earnings per Share - Diluted was primarily due to a lower weighted average common shares total for the period due to stock repurchases.

Previous wording

Adjusted EBITDA is defined as net income before depreciation and amortization, interest expense, income taxes, and also adjusted to add back certain charges and expenses, such as non-cash compensation costs and other items set forth in the table below, as these charges and expenses are not considered a part of our core business operations and are not an indicator of ongoing, future company performance.

Current wording

Adjusted EBITDA is defined as net income before depreciation and amortization, interest expense, income taxes, and also adjusted to add back certain charges and expenses, such as non-cash share-based compensation costs and other items set forth in the table below, as these charges and expenses are not considered a part of our core business operations and are not an indicator of ongoing, future company performance.

Previous wording

Adjusted EBITDA for the three months ended March 31, 2024 was $25.4 million, representing an increase of $1.3 million, or 5.5%, from $24.1 million for the three months ended March 31, 2023. The increase in Adjusted EBITDA was primarily due to the higher net effect of the adjusting items detailed in the table below, as well as the increase in Net Income discussed above.

Current wording

Adjusted EBITDA for the three months ended June 30, 2024 was $31.1 million, representing an increase of $0.2 million, or 0.6%, from $30.9 million for the three months ended June 30, 2023. The increase in Adjusted EBITDA was primarily due to the higher net effect of the adjusting items detailed in the table below offset by the decrease in Net Income discussed above.

Previous wording

Other income of $3.1 million for the three months ended March 31, 2024 increased by $1.4 million, or 82.4%, from $1.7 million for the three months ended March 31, 2023 primarily due to the effect of higher revenue generated from other ancillary services provided by our corporate-operated stores such as check-cashing fees, an increase in fees related to a higher volume of transfers deemed abandoned property, and higher fees related to advances to sending agents as well as an increase in income related to money transfer transactions paid with debit or credit cards.

Current wording

Other income of $6.0 million for the six months ended June 30, 2024 increased by $2.0 million, or 50.0%, from $4.0 million for the six months ended June 30, 2023 primarily due to the effect of higher revenue generated from other ancillary services provided by our corporate-operated stores such as check-cashing fees, an increase in fees related to a higher volume of transfers deemed abandoned property, and higher fees related to advances to sending agents as well as an increase in income related to money transfer transactions paid with debit or credit cards.

Previous wording

Service charges from agents and banks — Service charges from agents and banks were $97.9 million for the three months ended March 31, 2024 compared to $96.1 million for the three months ended March 31, 2023. The increase of $1.8 million, or 1.9%, was primarily due to the increase in transaction volume described above.

Current wording

Service charges from agents and banks — Service charges from agents and banks were $211.3 million for the six months ended June 30, 2024 compared to $207.1 million for the six months ended June 30, 2023. The increase of $4.2 million, or 2.0%, was primarily due to the increase in transaction volume described above and an increase in fees related to money transfers processed online or by using mobile devices.

Previous wording

Salaries and benefits— Salaries and benefits of $18.1 million for the three months ended March 31, 2024 increased by $1.9 million, or 11.7%, from $16.2 million for the three months ended March 31, 2023. The increase of $1.9 million is primarily attributable to our expanded workforce as a result of the LAN Holdings acquisition as it operates independently in the execution of certain operational functions, as well as costs incurred in talent acquisition and retention, increased wages and related payroll taxes. These increases were offset by the lower salaries and benefits at La Nacional by $0.4 million as a result of the workforce reduction actions that took place in the third quarter of 2023. Salaries and benefits for the three months ended March 31, 2024 represent 12% of total Revenues compared to 11% for the three months ended March 31, 2023, which increase is attributable to our expanded workforce as a result of the LAN Holdings acquisition.

Current wording

Salaries and benefits— Salaries and benefits of $35.0 million for the six months ended June 30, 2024 increased by $1.2 million, or 3.6%, from $33.8 million for the six months ended June 30, 2023. The increase of $1.2 million is primarily attributable to $1.4 million related to our expanded workforce as a result of the LAN Holdings acquisition as it operates independently in the execution of certain operational functions, as well as an increase of $0.6 million in share-based compensation as a result of new awards granted throughout 2024, partially offset by cost savings of $0.9 million related to the restructuring plan of La Nacional, which was implemented in the third quarter of 2023.

Previous wording

Depreciation and amortization — Depreciation and amortization of $3.2 million for the three months ended March 31, 2024 increased by $0.3 million from $2.9 million or 10.3% for the three months ended March 31, 2023. The increase is the result of a $0.3 million increase in depreciation associated with additional software developed and computer equipment acquired to support our growing business and sending agent network, approximately $0.1 million of depreciation related to assets capitalized in connection with the Company’s new headquarters, $0.1 million of depreciation for assets assumed in the LAN Holdings acquisition and approximately $0.1 million for amortization of intangibles resulting from the LAN Holdings acquisition. These increases were partially offset by a decrease of approximately $0.2 million in amortization related to our Intermex trade name, developed technology and agent relationships during the three months ended March 31, 2024, as these intangibles are being amortized on an accelerated basis, which declines over time.

Current wording

Depreciation and amortization — Depreciation and amortization of $6.6 million for the six months ended June 30, 2024 increased by $0.6 million from $6.0 million or 10.0% for the six months ended June 30, 2023. The increase is the result of higher depreciation associated with additional software developed and computer equipment acquired to support our growing business and sending agent network, as well as depreciation related to assets capitalized in connection with the Company’s new headquarters. These increases were partially offset by a decrease of approximately $0.4 million in amortization related to our Intermex trade name, developed technology and agent relationships during the six months ended June 30, 2024, as these intangibles are being amortized on an accelerated basis, which declines over time.

Previous wording

Interest expense — Interest expense of $2.7 million for the three months ended March 31, 2024 increased by $0.5 million, or 22.7%, from $2.2 million for the three months ended March 31, 2023. The increase was primarily due to higher market interest rates paid under our A&R Credit Agreement, as well as higher and more frequent draws under our revolving credit facility during the three months ended March 31, 2024.

Current wording

Interest expense — Interest expense of $5.8 million for the six months ended June 30, 2024 increased by $1.0 million, or 20.8%, from $4.8 million for the six months ended June 30, 2023. The increase was primarily due to higher market interest rates, as well as higher and more frequent draws under our revolving credit facility during the six months ended June 30, 2024.

Previous wording

Earnings per Share - Basic for the three months ended March 31, 2024 was $0.36, representing an increase of $0.04, or 12.5%, compared to $0.32 for the three months ended March 31, 2023.

Current wording

Earnings per Share - Basic for the six months ended June 30, 2024 was $0.79, representing an increase of $0.04, or 5.3%, compared to $0.75 for the six months ended June 30, 2023.

Previous wording

The increase in both basic and diluted EPS largely reflect the increased net income discussed above and the effect of a reduced share count as a result of the stock repurchases.

Current wording

The increase in both basic and diluted EPS largely reflect the decrease in net income discussed above and the effect of a reduced share count as a result of the stock repurchases.

Previous wording

Adjusted Earnings per Share - Basic for the three months ended March 31, 2024 was $0.44, representing an increase of $0.05, or 12.8%, compared to $0.39 for the three months ended March 31, 2023. The increase in Adjusted Earnings per Share - Basic was primarily due to the increase in Net Income and the higher net effect of the adjusting items detailed in the table above combined with the effect of a lower weighted average common shares total for the period due to stock repurchases.

Current wording

Adjusted Earnings per Share - Basic for the six months ended June 30, 2024 was $0.99, representing an increase of $0.09, or 10.0%, compared to $0.90 for the six months ended June 30, 2023. The increase in Adjusted Earnings per Share - Basic was primarily due to the higher net effect of the adjusting items detailed in the table above combined with the effect of a lower weighted average common shares total for the period due to stock repurchases.

Previous wording

We have funded and still expect to continue funding our liquidity requirements through internally generated funds, supplemented in the ordinary course, with borrowings under our revolving credit facility. We maintain a strong cash and cash equivalents balance position and have access to committed funding sources, which we have used only on an ordinary course basis during the three months ended March 31, 2024. Therefore, we believe that our current cash and cash equivalents position, as well as projected cash flows generated from operations, together with borrowings under our revolving credit facility are sufficient to fund our principal and interest payments, lease expenses, our working capital needs, our business acquisitions, our expected capital expenditures and projected common stock repurchases in the short and long term.

Current wording

We have funded and still expect to continue funding our liquidity requirements through internally generated funds, supplemented in the ordinary course, with borrowings under our revolving credit facility. We maintain a strong cash and cash equivalents balance position and have access to committed funding sources, which we have used only on an ordinary course basis during the six months ended June 30, 2024. Therefore, we believe that our current cash and cash equivalents position, as well as projected cash flows generated from operations, together with borrowings under our revolving credit facility are sufficient to fund our principal and interest payments, lease expenses, our working capital needs, our business acquisitions, our expected capital expenditures and projected common stock repurchases in the short and long term.

Previous wording

As of March 31, 2024, we had $73.8 million of borrowings under the term loan facility excluding debt origination costs of $1.1 million. As of March 31, 2024, there were $85.5 million of outstanding amounts drawn on the revolving credit facility. There were $204.5 million of additional borrowings available under these facilities as of March 31, 2024.

Current wording

As of June 30, 2024, we had $72.2 million of borrowings under the term loan facility excluding debt origination costs of $1.0 million. As of June 30, 2024, there were $140.0 million of outstanding amounts drawn on the revolving credit facility. There were $150.0 million of additional borrowings available under these facilities as of June 30, 2024.

Previous wording

The effective interest rates for the three months ended March 31, 2024 for the term loan facility and revolving credit facility were 8.70% and 1.93%, respectively. Interest is payable (x)(i) generally on the last day of each interest period selected for SOFR loans, but in any event, not less frequently than every three months, and (ii) on the last business day of each quarter for base rate loans and (y) at final maturity.

Current wording

The effective interest rates for the six months ended June 30, 2024 for the term loan facility and revolving credit facility were 8.70% and 2.31%, respectively. Interest is payable (x)(i) generally on the last day of each interest period selected for SOFR loans, but in any event, not less frequently than every three months, and (ii) on the last business day of each quarter for base rate loans and (y) at final maturity.

Previous wording

The Company accounts for purchases of treasury stock under the cost method. Any direct costs incurred to acquire treasury stock are considered stock issue costs and added to the cost of the treasury stock. During the three months ended March 31, 2024, including the shares purchased in the privately-negotiated transaction described below, the Company purchased 1,124,476 shares for an aggregate purchase price of $23.4 million. During the three months ended March 31, 2023, the Company purchased 316,459 shares for an aggregate purchase price of $7.6 million. As of March 31, 2024, there was $50.7 million available for future share repurchases under the Repurchase Program.

Current wording

The Company accounts for purchases of treasury stock under the cost method. Any direct costs incurred to acquire treasury stock are considered stock issue costs and added to the cost of the treasury stock. During the six months ended June 30, 2024, including the shares purchased in the privately-negotiated transaction described below, the Company purchased 1,646,127 shares for an aggregate purchase price of $34.6 million. During the six months ended June 30, 2023, the Company purchased 1,232,581 shares for an aggregate purchase price of $30.5 million. As of June 30, 2024, there was $39.4 million available for future share repurchases under the Repurchase Program.

Previous wording

We are party to operating leases for office space, warehouses and Company-operated store locations, which we use as part of our day-to-day operations. Operating lease expenses were $1.8 million and $2.1 million for the three months ended March 31, 2024 and 2023, respectively, which we expect to be consistent throughout the year. We have not entered into finance lease commitments. For additional information on operating lease obligations, refer to Note 7, Leases, to the Condensed Consolidated Financial Statements.

Current wording

We are party to operating leases for office space, warehouses and Company-operated store locations, which we use as part of our day-to-day operations. Operating lease expenses were $1.7 million and $3.5 million for the three and six months ended June 30, 2024, respectively, which we expect to be consistent throughout the year. We have not entered into finance lease commitments. For additional information on operating lease obligations, refer to Note 7, Leases, to the Condensed Consolidated Financial Statements.

Previous wording

Net cash provided by operating activities was $48.2 million for the three months ended March 31, 2024, an increase of $47.0 million from net cash provided in operating activities of $1.2 million for the three months ended March 31, 2023. The increase is primarily a result of a $45.2 million change in working capital, which varies due to timing of remittances of consumer funds by sending agents and transmittal orders and payments, as well as prefunding of payers primarily for weekends, and additional cash generated by our improved operating results for the three months ended March 31, 2024, which reflected the further growth of our business.

Current wording

$27.8 million change in working capital, which varies due to timing of remittances of consumer funds by sending agents and transmittal orders and payments, as well as prefunding of payers primarily for weekends, and additional cash generated by our operating results for the six months ended June 30, 2024, which reflected the further growth of our business.

Previous wording

Net cash used in investing activities was $13.5 million for the three months ended March 31, 2024, representing an increase of $11.4 million from net cash used in investing activities of $2.1 million for the three months ended March 31, 2023. This increase in cash used was primarily due to the capitalization of leasehold improvements, furniture and equipment related to the Company's move to the new U.S. headquarters in February 2024 of approximately $8.4 million, as well as investments in software and equipment to support our continued growth of sending agents and commitment to improve our proprietary software during the three months ended March 31, 2024 in comparison with the three months ended March 31, 2023.

Current wording

Net cash used in investing activities was $20.2 million for the six months ended June 30, 2024, representing an increase of $10.2 million from net cash used in investing activities of $10.0 million for the six months ended June 30, 2023. This increase in cash used was primarily due to the capitalization of leasehold improvements, furniture and equipment related to the Company's move to the new U.S. headquarters in February 2024 of approximately $9.9 million, as well as investments in software and equipment to support our continued growth of sending agents and commitment to improve our proprietary software during the six months ended June 30, 2024 in comparison with the six months ended June 30, 2023.