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 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.

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 recent acquisitions we now provide remittance services from Spain, Italy, the United Kingdom 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, Germany and the United Kingdom, 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 117 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

Money remittance services to LAC countries, mainly Mexico, Guatemala, El Salvador, Honduras and the Dominican Republic, are the primary source of our revenue. These services involve the movement of funds on behalf of an originating consumer for receipt by a designated beneficiary at a designated receiving location. Our remittances to LAC countries are primarily generated in the United States by consumers with roots in Latin American and Caribbean countries, many of whom do not have an existing relationship with a traditional full-service financial institution capable of providing the services we offer. We provide these consumers with flexibility and convenience to help them meet their financial needs. We believe many consumers who use our services may have access to traditional banking services, but prefer to use our services based on reliability, convenience and value. We generate money remittance revenue from fees paid by consumers (i.e., the senders of funds), which we share with our sending agents in the originating country and our paying agents in the destination country. Remittances paid in local currencies that are not pegged to the U.S. dollar, Canadian dollar or Euro can also generate revenue if we are successful in our daily management of currency exchange spreads.

Current wording

Money remittance services to LAC countries, mainly Mexico, Guatemala, El Salvador, Honduras and the Dominican Republic, are the primary source of our revenue. These services involve the movement of funds on behalf of an originating consumer for receipt by a designated beneficiary at a designated receiving location. Our remittances to LAC countries are primarily generated in the United States by consumers with roots in Latin American and Caribbean countries, many of whom do not have an existing relationship with a traditional full-service financial institution capable of providing the services we offer. We provide these consumers with flexibility and convenience to help them meet their financial needs. We believe many consumers who use our services may have access to traditional banking services, but prefer to use our services based on reliability, convenience and value. We generate money remittance revenue primarily from fees paid by consumers (i.e., the senders of funds), which we share with our sending agents in the originating country and our paying agents in the destination country. Remittances paid in local currencies that are not pegged to the U.S. dollar, Canadian dollar or Euro can also generate revenue if we are successful in our daily management of currency exchange spreads.

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 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.

Current wording

Our money remittance services enable consumers to send funds through our broad network of locations in the United States, Canada, Spain, Italy, Germany and the United Kingdom 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 nine months ended September 30, 2024, our agent network decreased by approximately 0.4% primarily as a result of a lower number of agents onboarded during the period relative to ordinary course agent terminations. For the nine months ended September 30, 2024, principal amount sent decreased slightly by approximately 0.2% to $18.3 billion, as compared to the same period in 2023, and total remittances processed were approximately 44.0 million, representing an increase of approximately 1.6%, as compared to the same period in 2023 primarily related to increased volume generated by our agent network, digital channels and European subsidiaries.

Previous 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.

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 to develop efficiencies within the Company. For the three and nine months ended September 30, 2024, the Company incurred approximately $27.0 thousand and $2.5 million in expenses for a reduction of workforce in certain locations, closing of certain facilities, discontinuing technology and disposal of obsolete assets. These expenses include approximately $1.7 million in severance payments and related benefits, $0.4 million in software and software development costs write-offs and $0.4 million in legal and professional fees, which are included in restructuring costs in the condensed consolidated statement of income and comprehensive income.

Previous wording

The Company has paid out $0.7 million of the above charges during the three months ended June 30, 2024 and has a liability of $1.4 million recorded in accrued and other liabilities in the condensed consolidated balance sheet as of June 30, 2024. We expect to incur a total of approximately$[2.8] million in connection with the restructuring of La Nacional and certain of our foreign subsidiaries.

Current wording

The Company has paid out $1.1 million of the above charges during the three and nine months ended September 30, 2024 and has a liability of $1.4 million recorded in accrued and other liabilities in the condensed consolidated balance sheet as of September 30, 2024.

Previous wording

•economic factors such as inflation, the level of economic activity, recession risks and labor market conditions, as well as rising interest rates;

Current wording

•economic factors such as inflation, the level of economic activity, recession risks and labor market conditions, as well as volatility in market interest rates;

Previous wording

•international political factors, political instability, tariffs, border taxes or restrictions on remittances or transfers from the outbound countries in which we operate or plan to operate;

Current wording

•international political factors, including hostilities in Ukraine and the Middle East, political instability, tariffs, border taxes or restrictions on remittances or transfers from the outbound countries in which we operate or plan to operate;

Previous wording

•our success in developing and introducing new products, services and infrastructure;

Current wording

•our success in developing, introducing and expanding customer acceptance of new products, digital services and infrastructure;

Previous wording

We maintain a compliance department, the responsibility of which is to monitor transactions, detect and report suspicious activity, maintain appropriate records and train our employees and agents. An independent third-party periodically reviews our policies and procedures and performs independent testing to assess the effectiveness of our anti-money laundering and Bank Secrecy Act compliance program. We also maintain a regulatory affairs and licensing department, under the direction of our Chief Compliance Officer.

Current wording

Independent third-parties periodically review our policies and procedures and perform independent testing to assess the effectiveness of our anti-money laundering and Bank Secrecy Act compliance programs. We also maintain a regulatory affairs and licensing department, under the direction of our Chief Compliance Officer.

Previous wording

The market for money remittance services is very competitive. Our competitors include a small number of large money remittance providers, financial institutions, banks and a large number of small niche money remittance service providers that serve select regions. We compete with larger companies, such as Western Union, MoneyGram, Remitly and Euronet, and a number of other smaller money services business (“MSB”) entities. We generally compete for money remittance agents on the basis of value, service, quality, technical and operational differences, commission structure and marketing efforts. As a philosophy, we sell credible solutions to our sending agents, not discounts or higher commissions, as is typical for the industry. We compete for money remittance customers on the basis of trust, convenience, service, efficiency of outlets, value, enhanced technology and brand recognition.

Current wording

The market for money remittance services is very competitive. Our competitors include a small number of large money remittance providers, financial institutions, banks, a large number of small niche money remittance service providers that serve select regions and new digital platforms and applications. We compete with larger companies, such as Western Union, MoneyGram, Remitly and Euronet, and a number of other smaller money services business (“MSB”) entities. We generally compete for money remittance agents on the basis of value, service, quality, technical and operational differences, commission structure and marketing efforts. As a philosophy, we sell credible solutions to our sending agents, not discounts or higher commissions, as is typical for the industry. We compete for money remittance customers on the basis of trust, convenience, service, efficiency of outlets, value, enhanced technology and brand recognition.

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

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 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.

Previous 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.

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 and other service partners 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 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.

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 $15.8 million is expected to be recognized over a weighted-average period of 1.9 years.

Previous wording

General and administrative expenses primarily consist of fixed overhead expenses associated with our operations, such as information technology, telecommunications, rent, insurance, professional services, non-income or indirect taxes, facilities maintenance, provision for credit losses and other similar types of operating expenses. A portion of these expenses relate to our Company-operated stores; however, the majority relate to the overall business operation and compliance requirements of a regulated publicly traded financial services company. Selling expenses include expenses such as advertising and promotion, shipping, supplies and other expenses associated with serving and increasing our network of agents.

Current wording

General and administrative expenses primarily consist of fixed overhead expenses associated with our operations, including our Company-operated stores, such as information technology, telecommunications, rent, insurance, professional services, non-income or indirect taxes, facilities maintenance, provision for credit losses, selling expenses, public company reporting requirements, regulatory compliance requirements and other similar types of operating expenses. Selling expenses include expenses such as advertising and promotion, shipping, supplies and other expenses associated with serving and increasing our customer base and network of agents.

Previous wording

We incurred transaction costs associated with potential acquisitions. These costs included all internal and external costs directly related to the transaction, consisting primarily of legal, consulting, accounting and advisory fees and certain incentive bonuses.

Current wording

We incurred transaction costs associated with completed and potential acquisitions. These costs included all internal and external costs directly related to the transaction, consisting primarily of legal, consulting, accounting and advisory fees and certain incentive bonuses.

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 six months ended June 30, 2024 for the term loan facility and revolving credit facility were 8.70% and 2.31%, respectively.

Current wording

Interest expense consists primarily of interest associated with our debt, which consists of a term loan facility (until August 29, 2024) and a revolving credit facility. The effective interest rates for the nine months ended September 30, 2024 for the term loan facility and revolving credit facility were 9.02% and 2.48%, 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 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.

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 117 Company-operated stores throughout the United States, Canada, Spain, Italy, Germany and the United Kingdom. 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 $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

Current wording

Wire transfer and money order fees, net of $144.6 million for the three months ended September 30, 2024 decreased by $2.8 million, or 2%, from $147.4 million for the three months ended September 30, 2023. The decrease was primarily due to a decrease in transaction

Previous wording

This decrease was partially offset by:

Current wording

volume processed through our retail network of sending agents and Company-operated stores in the third quarter of 2024 compared to the third quarter of 2023 as a result of a slight contraction in the market. This decrease was partially offset by $1.9 million in revenue recognized as a result of the changes to the terms and conditions of our loyalty program effective in the third quarter of 2024.

Previous 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.

Current wording

Revenues from foreign exchange gain, net of $24.0 million for the three months ended September 30, 2024 increased by $1.3 million, or 6%, from $22.7 million for the three months ended September 30, 2023. This increase was primarily due to a higher foreign exchange spread on money transfers sent to certain countries in LAC during the quarter ended September 30, 2024.

Previous wording

Other income of $2.9 million for the three months ended June 30, 2024 increased by $0.6 million, or 2.6%, from $2.3 million for the three months ended June 30, 2023 primarily due to the impact of the revenue generated from ancillary services provided to a particular segment of our consumer base, an increase in fees related to a higher volume of transfers deemed abandoned property, check cashing service fees, as well as an increase in income related to money transfer transactions paid with debit or credit cards.

Current wording

Other income of $3.4 million for the three months ended September 30, 2024 increased by $1.0 million, or 41.7%, from $2.4 million for the three months ended September 30, 2023 primarily due to the impact of the revenue generated from ancillary services provided to a particular segment of our consumer base through our Company-operated stores, an increase in fees related to a higher volume of transfers deemed abandoned property, and check cashing service fees, 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 $113.4 million for the three months ended June 30, 2024 compared to $111.0 million for the three months ended June 30, 2023. The increase of $2.4 million, or 2%, was primarily due to the increase in transaction volume described above and a higher sending agent fee per transaction due to an increase in total principal sent as well as an increase in fees related to money transfers processed online or by using mobile devices.

Current wording

Service charges from agents and banks — Service charges from agents and banks were $111.3 million for the three months ended September 30, 2024 compared to $112.9 million for the three months ended September 30, 2023. The decrease of $1.6 million, or 1%, was primarily due to the decrease in transaction volume described above partially offset by an increase in fees related to money transfers processed online or by using mobile devices.

Previous wording

Salaries and benefits— Salaries and benefits of $16.9 million for the three months ended June 30, 2024 decreased by $0.7 million, or 4%, from $17.6 million for the three months ended June 30, 2023. The decrease is primarily due to cost savings related to the restructuring plan of La Nacional, which was implemented in the third quarter of 2023.

Current wording

Salaries and benefits— Salaries and benefits of $17.2 million for the three months ended September 30, 2024 decreased by $0.6 million, or 3%, from $17.8 million for the three months ended September 30, 2023. The decrease is primarily due to cost savings related to the restructuring plans implemented in the past year.

Previous 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.

Current wording

Other selling, general and administrative expenses — Other selling, general and administrative expenses of $12.1 million for the three months ended September 30, 2024 decreased by $0.8 million, or 6.2%, from $12.9 million for the three months ended September 30, 2023.

Previous wording

•$0.5 million - decrease in facilities related expenses during the six 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;

Current wording

•$0.3 million - decrease in facilities related expenses during the three months ended September 30, 2024 primarily related to facility closures as a result of the restructuring of La Nacional during the third quarter of 2023 and the move to our new U.S. headquarters; and

Previous wording

•$0.6 million - increase in provision for credit losses primarily due to higher outstanding receivable balances from sending agents as of June 30, 2024 compared to June 30, 2023 as receivable balances tend to increase during weekends.

Current wording

•$0.2 million - decrease in provision for credit losses primarily due to lower outstanding receivable balances from sending agents as of September 30, 2024 compared to September 30, 2023 as receivable balances tend to increase during weekends combined with a lower level of write-offs in the three months ended September 30, 2024.

Previous wording

Depreciation and amortization — Depreciation and amortization of $3.4 million for the three months ended June 30, 2024 increased by $0.3 million or 9.7% from $3.1 million for the three 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

Current wording

Depreciation and amortization — Depreciation and amortization of $3.4 million for the three months ended September 30, 2024 decreased by $0.1 million or 2.9% from $3.5 million for the three months ended September 30, 2023. The decrease is the result of a

Previous wording

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 $0.2 million in amortization related to our Intermex trade name, developed technology and agent relationships during the three months ended June 30, 2024, as these intangibles are being amortized on an accelerated basis, which declines over time.

Current wording

decrease of approximately $0.2 million in amortization related to our trade names, developed technology and agent relationships during the three months ended September 30, 2024, as these intangibles are being amortized on an accelerated basis, which declines over time.

Previous wording

Interest expense — Interest expense of $3.1 million for the three months ended June 30, 2024 increased by $0.4 million, or 14.8%, from $2.7 million for the three months ended June 30, 2023. The increase was primarily due to higher market interest rates and higher draws under our revolving credit facility to support the growth in our business.

Current wording

Interest expense — Interest expense of $3.2 million for the three months ended September 30, 2024 increased by $0.4 million, or 14.3%, from $2.8 million for the three months ended September 30, 2023. The increase was primarily due to higher draws under our revolving credit facility to fund our working capital needs, as well as a loss on debt extinguishment of $0.3 million associated with the payoff of our term loan facility as a result of entering into the Second A&R Credit Agreement on August 29, 2024.

Previous 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.

Current wording

Income tax provision — Income tax provision was $7.3 million for the three months ended September 30, 2024, which represents an increase of $0.7 million from an income tax provision of $6.6 million for the three months ended September 30, 2023. The increase in income tax provision was mainly attributable to higher income before taxes as result of the variances described above, slightly offset by a decrease in our effective state tax rate for the three months ended September 30, 2024.

Previous 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.

Current wording

We reported Net Income of $17.3 million for the three months ended September 30, 2024 compared to Net Income of $14.8 million for the three months ended September 30, 2023, which resulted in an increase of $2.5 million, or 16.9%, due to the same factors discussed above.

Previous 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.

Current wording

Adjusted Net Income for the three months ended September 30, 2024 was $19.8 million, representing an increase of $1.4 million from Adjusted Net Income of $18.4 million for the three months ended September 30, 2023. The increase in Adjusted Net Income was primarily due to the increase in Net Income discussed above, offset by the lower net effect of the adjusting items detailed in the table below.

Previous wording

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

Current wording

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

Previous 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.

Current wording

(f)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 - 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.

Current wording

Adjusted Earnings per Share - Basic for the three months ended September 30, 2024 was $0.61, representing an increase of $0.09, or 17.3%, compared to $0.52 for the three months ended September 30, 2023. The increase in Adjusted Earnings per Share - Basic was primarily due to the increase in net income as well as a lower weighted average common shares total for the period due to stock repurchases.

Previous wording

Adjusted Earnings per Share - Basic for the three months ended June 30, 2024 was $0.55, representing an increase of $0.04, or 7.8%, compared to $0.51 for the three months ended June 30, 2023. The increase in Adjusted Earnings per Share - Basic was primarily due to 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 September 30, 2024 was $0.61, representing an increase of $0.10, or 19.6%, compared to $0.51 for the three months ended September 30, 2023. The increase in Adjusted Earnings per Share - Diluted was primarily due to the increase in net income as well as a lower weighted average common shares total for the period due to stock repurchases.

Previous 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.

Current wording

Adjusted EBITDA for the three months ended September 30, 2024 was $33.9 million, representing an increase of $2.2 million, or 6.9%, from $31.7 million for the three months ended September 30, 2023. The increase in Adjusted EBITDA was primarily due to the increase in Net Income discussed above.

Previous wording

Wire transfer and money order fees, net of $272.8 million for the six months ended June 30, 2024 increased by $3.8 million, or 1.4%, from $269.0 million for the six months ended June 30, 2023. The increase was primarily due to a 2.7% increase in transaction volume in the six months ended June 30, 2024 compared to the six months ended June 30, 2023, largely due to the continued growth in transactions processed by our agent network which also increased by 1.2% when compared to June 30, 2023. These increases were partially offset primarily by a lower average price per transaction on money transfers.

Current wording

Wire transfer and money order fees, net of $417.4 million for the nine months ended September 30, 2024 increased by $1.0 million, or 0.2%, from $416.4 million for the nine months ended September 30, 2023. The increase was primarily due to a 1.6% increase in transaction volume in the nine months ended September 30, 2024 compared to the nine months ended September 30, 2023, largely due to the growth in transactions processed by our agent network and digital channels. In addition, during the nine months ended September 30, 2024, the Company recognized $1.9 million in revenue as a result of the changes to the terms and conditions of our loyalty program effective in the third quarter of 2024. These increases were partially offset primarily by a lower average price per transaction on money transfers.

Previous wording

Revenues from foreign exchange gain, net of $43.1 million for the six months ended June 30, 2024 increased by $1.5 million, or 3.6%, from $41.6 million for the six 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 higher foreign exchange spread on money transfers sent to certain countries in the LAC.

Current wording

Revenues from foreign exchange gain, net of $67.1 million for the nine months ended September 30, 2024 increased by $2.9 million, or 4.5%, from $64.2 million for the nine months ended September 30, 2023. This increase was primarily due to higher transaction volume combined with a higher foreign exchange spread on money transfers sent to certain countries in the LAC.

Previous 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.

Current wording

Other income of $9.4 million for the nine months ended September 30, 2024 increased by $3.0 million, or 46.9%, from $6.4 million for the nine months ended September 30, 2023 primarily due to the effect of higher revenue generated from other ancillary services provided by our Company-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.