Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Oct. 30, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2020 | |
Document Transition Report | false | |
Entity File Number | 001-37986 | |
Entity Registrant Name | INTERNATIONAL MONEY EXPRESS, INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 47-4219082 | |
Entity Address, Address Line One | 9480 South Dixie Highway | |
Entity Address, City or Town | Miami | |
Entity Address, State or Province | FL | |
Entity Address, Postal Zip Code | 33156 | |
City Area Code | 305 | |
Local Phone Number | 671-8000 | |
Title of 12(b) Security | Common stock ($0.0001 par value) | |
Trading Symbol | IMXI | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 38,072,882 | |
Entity Central Index Key | 0001683695 | |
Current Fiscal Year End Date | --12-31 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Current assets: | ||
Cash | $ 109,067 | $ 86,117 |
Accounts receivable, net of allowance of $1,243 and $759, respectively | 59,962 | 39,754 |
Prepaid wires, net | 8,983 | 18,201 |
Prepaid expenses and other current assets | 2,685 | 4,155 |
Total current assets | 180,697 | 148,227 |
Property and equipment, net | 12,770 | 13,282 |
Goodwill | 36,260 | 36,260 |
Intangible assets, net | 22,168 | 27,381 |
Deferred tax asset, net | 0 | 741 |
Other assets | 2,328 | 1,415 |
Total assets | 254,223 | 227,306 |
Current liabilities: | ||
Current portion of long-term debt, net | 7,044 | 7,044 |
Accounts payable | 9,890 | 13,401 |
Wire transfers and money orders payable, net | 48,189 | 40,197 |
Accrued and other liabilities | 24,086 | 23,074 |
Total current liabilities | 89,209 | 83,716 |
Long-term liabilities: | ||
Debt, net | 82,340 | 87,623 |
Deferred tax liabilities, net | 571 | 0 |
Total long-term liabilities | 82,911 | 87,623 |
Commitments and contingencies | ||
Stockholders' equity: | ||
Common stock $0.0001 par value; 230,000,000 shares authorized, 38,059,737 and 38,034,389 shares issued and outstanding as of September 30, 2020 and December 31, 2019, respectively. | 4 | 4 |
Additional paid-in capital | 56,793 | 54,694 |
Retained earnings | 25,340 | 1,176 |
Accumulated other comprehensive (loss) income | (34) | 93 |
Total stockholders' equity | 82,103 | 55,967 |
Total liabilities and stockholders' equity | $ 254,223 | $ 227,306 |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable allowance | $ 1,243 | $ 759 |
Common stock, par value (in dollars per share) | $ 0.0001 | $ 0.0001 |
Common shares, authorized (in shares) | 230,000,000 | 230,000,000 |
Common shares, issued (in shares) | 38,059,737 | 38,034,389 |
Common shares, outstanding (in shares) | 38,059,737 | 38,034,389 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Revenues: | ||||
Revenues | $ 95,594 | $ 85,334 | $ 257,907 | $ 236,359 |
Operating expenses: | ||||
Service charges from agents and banks | 63,904 | 56,319 | 172,403 | 156,510 |
Salaries and benefits | 8,084 | 7,612 | 22,512 | 22,806 |
Other selling, general and administrative expenses | 6,336 | 9,788 | 16,827 | 20,850 |
Depreciation and amortization | 2,698 | 3,179 | 8,079 | 9,486 |
Total operating expenses | 81,022 | 76,898 | 219,821 | 209,652 |
Operating income | 14,572 | 8,436 | 38,086 | 26,707 |
Interest expense | 1,530 | 2,145 | 5,033 | 6,503 |
Income before income taxes | 13,042 | 6,291 | 33,053 | 20,204 |
Income tax provision | 3,544 | 2,253 | 8,889 | 5,936 |
Net income | 9,498 | 4,038 | 24,164 | 14,268 |
Other comprehensive income (loss) | 14 | (9) | (127) | 34 |
Comprehensive income | $ 9,512 | $ 4,029 | $ 24,037 | $ 14,302 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.25 | $ 0.11 | $ 0.64 | $ 0.38 |
Diluted (in dollars per share) | $ 0.25 | $ 0.11 | $ 0.63 | $ 0.38 |
Weighted-average common shares outstanding: | ||||
Basic (in shares) | 38,050,610 | 37,984,316 | 38,040,339 | 37,230,831 |
Diluted (in shares) | 38,652,707 | 38,286,702 | 38,246,429 | 37,365,371 |
Wire transfer and money order fees, net | ||||
Revenues: | ||||
Revenues | $ 82,646 | $ 72,468 | $ 222,534 | $ 201,410 |
Foreign exchange gain, net | ||||
Revenues: | ||||
Revenues | 12,296 | 12,272 | 33,510 | 33,297 |
Other income | ||||
Revenues: | ||||
Revenues | $ 652 | $ 594 | $ 1,863 | $ 1,652 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings (Accumulated Deficit) | Accumulated Other Comprehensive Loss |
Beginning balance at Dec. 31, 2018 | $ 44,473 | $ 4 | $ 61,889 | $ (17,418) | $ (2) |
Beginning balance (in shares) at Dec. 31, 2018 | 36,182,783 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Warrant exchange | (10,031) | (10,031) | |||
Warrant exchange (in shares) | 1,800,065 | ||||
Net income | 14,268 | 14,268 | |||
Issuance of common stock: | |||||
Exercise of stock options | (4) | (4) | |||
Exercise of stock options (in shares) | 1,583 | ||||
Restricted stock units | 0 | ||||
Restricted stock units (in shares) | 21,192 | ||||
Share-based compensation | 1,894 | 1,894 | |||
Adjustment from foreign currency translation, net | 34 | 34 | |||
Ending balance at Sep. 30, 2019 | 49,619 | $ 4 | 53,748 | (4,165) | 32 |
Ending balance (in shares) at Sep. 30, 2019 | 38,005,623 | ||||
Beginning balance at Jun. 30, 2019 | 44,960 | $ 4 | 53,118 | (8,203) | 41 |
Beginning balance (in shares) at Jun. 30, 2019 | 37,982,848 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 4,038 | 4,038 | |||
Issuance of common stock: | |||||
Exercise of stock options | (4) | (4) | |||
Exercise of stock options (in shares) | 1,583 | ||||
Restricted stock units | 0 | ||||
Restricted stock units (in shares) | 21,192 | ||||
Share-based compensation | 634 | 634 | |||
Adjustment from foreign currency translation, net | (9) | (9) | |||
Ending balance at Sep. 30, 2019 | 49,619 | $ 4 | 53,748 | (4,165) | 32 |
Ending balance (in shares) at Sep. 30, 2019 | 38,005,623 | ||||
Beginning balance at Dec. 31, 2019 | 55,967 | $ 4 | 54,694 | 1,176 | 93 |
Beginning balance (in shares) at Dec. 31, 2019 | 38,034,389 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 24,164 | 24,164 | |||
Issuance of common stock: | |||||
Exercise of stock options | (110) | (110) | |||
Exercise of stock options (in shares) | 11,497 | ||||
Restricted stock units | 0 | ||||
Restricted stock units (in shares) | 13,851 | ||||
Share-based compensation | 2,209 | 2,209 | |||
Adjustment from foreign currency translation, net | (127) | (127) | |||
Ending balance at Sep. 30, 2020 | 82,103 | $ 4 | 56,793 | 25,340 | (34) |
Ending balance (in shares) at Sep. 30, 2020 | 38,059,737 | ||||
Beginning balance at Jun. 30, 2020 | 71,896 | $ 4 | 56,098 | 15,842 | (48) |
Beginning balance (in shares) at Jun. 30, 2020 | 38,035,279 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 9,498 | 9,498 | |||
Issuance of common stock: | |||||
Exercise of stock options | (106) | (106) | |||
Exercise of stock options (in shares) | 10,607 | ||||
Restricted stock units | 0 | ||||
Restricted stock units (in shares) | 13,851 | ||||
Share-based compensation | 801 | 801 | |||
Adjustment from foreign currency translation, net | 14 | 14 | |||
Ending balance at Sep. 30, 2020 | $ 82,103 | $ 4 | $ 56,793 | $ 25,340 | $ (34) |
Ending balance (in shares) at Sep. 30, 2020 | 38,059,737 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 24,164 | $ 14,268 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 8,079 | 9,486 |
Share-based compensation | 2,209 | 1,894 |
Provision for bad debt | 1,421 | 1,171 |
Debt origination costs amortization | 564 | 546 |
Deferred income tax provision, net | 1,312 | 572 |
Loss on disposal of property and equipment | 336 | 182 |
Total adjustments | 13,921 | 13,851 |
Changes in operating assets and liabilities: | ||
Accounts receivable | (21,694) | (19,224) |
Prepaid wires, net | 7,773 | 17,259 |
Prepaid expenses and other assets | 433 | 933 |
Wire transfers and money orders payable, net | 9,465 | 21,047 |
Accounts payable and accrued and other liabilities | (2,465) | 9,013 |
Net cash provided by operating activities | 31,597 | 57,147 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (2,770) | (3,817) |
Acquisition of agent locations | 0 | (250) |
Net cash used in investing activities | (2,770) | (4,067) |
Cash flows from financing activities: | ||
Borrowings under term loan | 0 | 12,000 |
Repayments of term loan | (5,746) | (3,679) |
Repayments under revolving loan, net | 0 | (30,000) |
Debt origination costs | 0 | (240) |
Proceeds from exercise of options | 20 | 0 |
Cash paid in warrant exchange | 0 | (10,031) |
Net cash used in financing activities | (5,726) | (31,950) |
Effect of exchange rate changes on cash | (151) | 30 |
Net increase in cash | 22,950 | 21,160 |
Cash, beginning of period | 86,117 | 73,029 |
Cash, end of period | 109,067 | 94,189 |
Supplemental disclosure of cash flow information: | ||
Cash paid for interest | 4,475 | 5,780 |
Cash paid for income taxes | 7,323 | 2,550 |
Supplemental disclosure of non-cash investing activity: | ||
Agent business acquired in exchange for receivables | 0 | 85 |
Supplemental disclosure of non-cash financing activity: | ||
Issuance of common stock for cashless exercise of options | $ 130 | $ 4 |
BUSINESS AND ACCOUNTING POLICIE
BUSINESS AND ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
BUSINESS AND ACCOUNTING POLICIES | BUSINESS AND ACCOUNTING POLICIES International Money Express, Inc. (the “Company” or “us” or “we”) operates as a money transmitter between the United States of America (“U.S.”) and Canada to Mexico, Guatemala and other countries in Latin America, Africa and Asia through a network of authorized agents located in various unaffiliated retail establishments and 34 Company-operated stores throughout the U.S. and Canada. The condensed consolidated financial statements of the Company include Intermex Holdings, Inc., its wholly-owned indirect subsidiary, Intermex Wire Transfer, LLC (“LLC”), Intermex Wire Transfers de Guatemala, S.A. (“Intermex Guatemala”) - 99.8% owned by LLC, Intermex Wire Transfer de Mexico, S.A. and Intermex Transfers de Mexico, S.A. (“Intermex Mexico”) - 98% owned by LLC, Intermex Wire Transfer Corp. - 100% owned by LLC, Intermex Wire Transfer II, LLC - 100% owned by LLC and Canada International Transfers Corp. - 100% owned by LLC. Non-controlling interest in the results of operations of consolidated subsidiaries represents the minority stockholders’ share of the profit or loss of Intermex Mexico and Intermex Guatemala. The non-controlling interest asset and non-controlling interest in the portion of the profit or loss from operations of these subsidiaries were not recorded by the Company as they are considered immaterial. The condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All significant inter-company balances and transactions have been eliminated from the condensed consolidated financial statements. The Company’s interim condensed consolidated financial statements and related notes are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim financial statements have been included. The results reported in these interim financial statements are not necessarily indicative of the results that may be reported for the entire year. Certain information and footnote disclosures required by GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. Risks and Uncertainties On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of the outbreak of a new strain of coronavirus (“COVID-19”) and the risks to the international community as the virus spread globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally and national, state and local governments in the jurisdictions where we operate and serve our customers imposed emergency restrictions to mitigate the spread of the virus. Starting in March 2020, governmental authorities took measures that restricted the normal course of operations of businesses and consumers. Although those restrictions were in place for most of the second and third quarter and affected the Company, sending and paying agents as well as consumers and their beneficiaries, those measures did not have a material adverse effect on the Company’s financial condition, results of operations and cash flows for the three and nine month periods ended September 30, 2020. The Company and our sending agents are considered essential businesses under current federal guidance; however, the Company’s business is dependent upon the willingness and ability of its employees, network of agents and consumers to conduct money transfer services and the ultimate effects of the economic disruption caused by the pandemic and responses thereto. Although the Company’s operations continued effectively despite social distancing and other measures taken in response to the pandemic, the ultimate impact of the COVID-19 pandemic on our results of operations and financial condition is dependent on future developments, including the duration of the pandemic and the related extent of its severity, as well as its impact on the economic conditions, particularly the level of unemployment of our customers, all of which remain uncertain and cannot be predicted at this time. If the global response to contain the COVID-19 pandemic escalates further or is unsuccessful, or if governmental decisions to ease pandemic related restrictions are ineffective, premature, counterproductive or reversed, the Company could experience a material adverse effect on its business, financial condition, results of operations and cash flows. Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) issued guidance, Leases (Topic 842) , to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. The guidance requires that a lessee recognizes a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. This guidance is required to be adopted by the Company on January 1, 2022 and may be applied using either the earliest period adjustment method or the modified retrospective approach. The adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. The FASB issued amended guidance, Intangibles – Goodwill and other (Topic 350): Simplifying the Test for Goodwill Impairment . The amended standard simplifies how an entity tests goodwill by eliminating Step 2 of the goodwill impairment test related to measuring an impairment charge. Instead, impairment will be recorded for the amount that the carrying amount of a reporting unit exceeds its fair value. This new guidance is effective for the Company on January 1, 2021. The adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. The FASB issued amended guidance, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The amended standard requires implementation costs incurred by customers in cloud computing arrangements to be deferred and recognized over the term of the arrangement, if those costs would be capitalized by the customers in a software licensing arrangement. This new guidance is effective for the Company on January 1, 2021. The adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. The FASB issued guidance, Simplifying the Accounting for Income Taxes (Topic 740) , which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This new guidance is effective for the Company on January 1, 2021. The adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. The FASB issued guidance, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , regarding the measurement of credit losses for certain financial instruments. The new standard replaces the incurred loss model with a current expected credit loss (“CECL”) model. The CECL model is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. The Company is currently required to adopt the new standard on January 1, 2023. The Company is currently evaluating the impact this guidance will have on the condensed consolidated financial statements. The FASB issued guidance, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (“IBORs”) and, particularly, the risk of cessation of the LIBOR, regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. This accounting standards update provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This new guidance may be adopted by the Company no later than December 1, 2022, with early adoption permitted. The potential adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. |
REVENUES
REVENUES | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The Company recognized revenues from contracts with customers for the three and nine months ended September 30, 2020 and 2019, as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Wire transfer and money order fees $ 82,890 $ 72,710 $ 223,171 $ 202,202 Discounts and promotions (244) (242) (637) (792) Wire transfer and money order fees, net 82,646 72,468 222,534 201,410 Foreign exchange gain, net 12,296 12,272 33,510 33,297 Other income 652 594 1,863 1,652 Total revenues $ 95,594 $ 85,334 $ 257,907 $ 236,359 There are no significant initial costs incurred to obtain contracts with customers, although the Company has a loyalty program under which customers earn one point for each wire transfer completed. Points can be redeemed for a discounted wire transaction fee or higher foreign exchange rate. The discounts vary by country, and the earned points expire if the customer has not initiated and completed an eligible wire transfer transaction within the immediately preceding 180 day period. In addition, earned points will expire 30 days after the end of the program. Therefore, because the loyalty program benefits represent a future performance obligation, a portion of the initial consideration is recorded as deferred revenue (see Note 7) and a corresponding loyalty program expense is recorded as contra revenue. Revenue from this performance obligation is recognized upon customers redeeming points or upon expiration of any points outstanding. Except for the loyalty program discussed above, our revenues include only one performance obligation, which is to collect the customer’s money and make funds available for payment, generally on the same day, to a designated recipient in the currency requested. |
ACCOUNTS RECEIVABLE, NET OF ALL
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE | ACCOUNTS RECEIVABLE, NET OF ALLOWANCE Accounts receivable represent outstanding balances from sending agents for pending wire transfers or money orders from our customers. The outstanding balance consists of the following (in thousands): September 30, 2020 December 31, 2019 Accounts receivable $ 61,205 $ 40,513 Allowance for credit losses (1,243) (759) Accounts receivable, net $ 59,962 $ 39,754 The changes in the allowance for credit losses related to accounts receivable and notes receivable are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Beginning balance $ 1,350 $ 1,236 $ 1,236 $ 1,290 Provision 320 619 1,421 1,171 Charge-offs (120) (589) (1,338) (1,317) Recoveries 154 45 385 167 Ending Balance $ 1,704 $ 1,311 $ 1,704 $ 1,311 The allowance for credit losses allocated by financial instrument category is as follows (in thousands): September 30, 2020 December 31, 2019 Accounts receivable $ 1,243 $ 759 Notes receivable (1) 461 477 Allowance for credit losses $ 1,704 $ 1,236 (1) This allowance relates to $1.3 million in notes receivable from sending agents as of both September 30, 2020 and December 31, 2019. The current portion of these notes amounted to $1.1 million and $1.0 million as of September 30, 2020 and December 31, 2019, respectively. The net current portion is included in prepaid expenses and other current assets (see Note 4) and the net long-term portion is included in other assets in the condensed consolidated balance sheets. |
PREPAID EXPENSES AND OTHER CURR
PREPAID EXPENSES AND OTHER CURRENT ASSETS | 9 Months Ended |
Sep. 30, 2020 | |
Prepaid Expense and Other Assets [Abstract] | |
PREPAID EXPENSES AND OTHER CURRENT ASSETS | PREPAID EXPENSES AND OTHER CURRENT ASSETS Prepaid expenses and other current assets consisted of the following (in thousands): September 30, 2020 December 31, 2019 Prepaid insurance $ 431 $ 404 Prepaid fees 682 1,211 Notes receivable, net of allowance 705 648 Prepaid taxes 130 1,025 Other prepaid expenses and current assets 737 867 $ 2,685 $ 4,155 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETSIntangible assets on the condensed consolidated balance sheets of the Company consist of goodwill, agent relationships, trade name, developed technology and other intangible assets. Agent relationships, trade name and developed technology are all amortized over 15 years using an accelerated method that correlates with the projected realization of the benefit. The agent relationships intangible represents the network of independent sending agents; trade name refers to the Intermex name, branded on all agent locations and well recognized in the market; and developed technology includes the state-of-the-art system that the Company has continued to develop and improve upon over the past 20 years. Other intangible assets primarily relate to the acquisition of Company-operated stores, which are amortized on a straight line basis over 10 years. The determination of our intangible fair values includes several assumptions that are subject to various risks and uncertainties. Management believes it has made reasonable estimates and judgments concerning these risks and uncertainties. See below for further discussion on impairment. The following table presents the changes in goodwill and intangible assets (in thousands): Goodwill Intangibles Balance at December 31, 2019 $ 36,260 $ 27,381 Amortization expense — (5,213) Balance at September 30, 2020 $ 36,260 $ 22,168 Amortization expense related to intangible assets for the next five years and thereafter is as follows (in thousands): 2020 $ 1,738 2021 5,161 2022 3,997 2023 2,989 2024 2,270 Thereafter 6,013 $ 22,168 Due to the COVID-19 pandemic that has resulted in a deterioration in macro-economic conditions and increased stock market volatility, the Company performed a qualitative assessment of goodwill during both the second and third quarter of 2020 to determine whether a quantitative test was necessary. Although our fair value measurements include some significant inputs, such as the Company’s forecasted revenues and assumed turnover of agent locations, that may have or will be affected by the pandemic, we believe that as of September 30, 2020, the effects of the pandemic have not had a material negative effect on the Company’s financial condition, results of operations and cash flows. As a result, there are currently no indicators that the fair value of the Company’s goodwill is below its carrying amount based on our qualitative assessment. Therefore, we determined that a quantitative test was not necessary as of September 30, 2020. For our finite-lived intangibles, we also assessed during both the second and third quarter of 2020 whether there were events or changes in circumstances that indicated that the carrying amounts of our intangible assets may not be recoverable. Similar to our goodwill assessment above, we believe that as of September 30, 2020, the effects of the COVID-19 pandemic have not had a material negative effect on the company’s financial condition, results of operations and cash flows. As a result, there are currently no indicators that could require an impairment test. Therefore, we determined that the carrying amounts of our intangibles are recoverable as of September 30, 2020. We will continue to monitor this evolving pandemic to determine the need, if any, to further evaluate for impairment our goodwill and intangible assets. |
WIRE TRANSFERS AND MONEY ORDERS
WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET | WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET Wire transfers and money orders payable, net consisted of the following (in thousands): September 30, 2020 December 31, 2019 Wire transfers payable, net $ 18,995 $ 16,058 Customer voided wires payable 13,888 10,937 Money orders payable 15,306 13,202 $ 48,189 $ 40,197 Customer voided wires payable consist of wire transfers that were not completed because the recipient did not collect the funds within 30 days and the sender has not claimed the funds and, therefore, are considered unclaimed property. Unclaimed property laws of each state in the United States in which we operate, the District of Columbia, and Puerto Rico require us to track certain information for all of our money remittances and payment instruments and, if the funds underlying such remittances and instruments are unclaimed at the end of an applicable statutory abandonment period, require us to remit the proceeds of the unclaimed property to the appropriate jurisdiction. Applicable statutory abandonment periods range from three to seven years. |
ACCRUED AND OTHER LIABILITIES
ACCRUED AND OTHER LIABILITIES | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
ACCRUED AND OTHER LIABILITIES | ACCRUED AND OTHER LIABILITIES Accrued and other liabilities consisted of the following (in thousands): September 30, 2020 December 31, 2019 Commissions payable to sending agents $ 11,866 $ 10,124 Accrued legal settlement (see Note 13) 2,925 3,250 Accrued salaries and benefits 2,413 2,374 Accrued bank charges 1,158 976 Accrued interest 12 17 Accrued legal fees 343 120 Accrued other professional fees 848 655 Accrued taxes 866 2,345 Deferred revenue loyalty program 2,602 2,495 Other 1,053 718 $ 24,086 $ 23,074 The following table shows the changes in the deferred revenue loyalty program liability (in thousands): Balance, December 31, 2019 $ 2,495 Revenue deferred during the period 535 Revenue recognized during the period (428) Balance, September 30, 2020 $ 2,602 |
DEBT
DEBT | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Debt consisted of the following (in thousands): September 30, 2020 December 31, 2019 Term loan $ 91,298 $ 97,044 Less: Current portion of long-term debt (1) (7,044) (7,044) Less: Debt origination costs (1,914) (2,377) $ 82,340 $ 87,623 (1) Current portion of long-term debt is net of debt origination costs of approximately $0.6 million both at September 30, 2020 and December 31, 2019. The Company and certain of its domestic subsidiaries as borrowers (the “Loan Parties”) have a financing agreement (as amended, the “Credit Agreement”) with a group of banking institutions. The Credit Agreement provides for a $35 million revolving credit facility, a $90 million term loan facility and an up to $30 million incremental facility of which $12 million was utilized in the second quarter of 2019. The Credit Agreement also provides for the issuance of letters of credit, which would reduce availability under the revolving credit facility. The maturity date of the Credit Agreement is November 7, 2023. As of September 30, 2020 and December 31, 2019, there were no outstanding amounts drawn on the revolving credit facility. Interest on the term loan facility and revolving credit facility under the Credit Agreement is determined by reference to either LIBOR or a “base rate”, in each case plus an applicable margin of 4.50% per annum for LIBOR loans or 3.50% per annum for base rate loans. The Company is also required to pay a fee on the unused portion of the revolving credit facility equal to 0.35% per annum. The effective interest rates for the nine months ended September 30, 2020 for the term loan facility and revolving credit facility were 5.93% and 0.99%, respectively. The principal amount of the term loan facility under the Credit Agreement must be repaid in consecutive quarterly installments of 5.0% in year 1, 7.5% in years 2 and 3, and 10.0% in years 4 and 5, in each case on the last day of each quarter, which commenced in March 2019 with a final payment at maturity. The loans under the Credit Agreement may be prepaid at any time without premium or penalty. The Credit Agreement contains covenants that limit the Company’s and its subsidiaries’ ability to, among other things, grant liens, incur additional indebtedness, make acquisitions or investments, dispose of certain assets, make dividends and distributions, change the nature of their businesses, enter into certain transactions with affiliates or amend the terms of material indebtedness. The Credit Agreement also contains financial covenants that require the Company to maintain a quarterly minimum fixed charge coverage ratio of 1.25:1.00 and a quarterly maximum consolidated leverage ratio of 3.25:1.00. The obligations under the Credit Agreement are guaranteed by the Company and certain domestic subsidiaries of the Company and secured by liens on substantially all of the assets of the Loan Parties, subject to certain exclusions and limitations. On April 20, 2020, the Company received funds under the Paycheck Protection Program (the “Program”) in the amount of $3.5 million. Although the Company believes that it met all eligibility criteria for a loan under the Program at the time of its application, subsequent to receiving the funds, the Small Business Administration (“SBA”), in consultation with the Department of the Treasury (“Treasury”), provided additional guidance to address public, borrower and lender questions concerning the eligibility criteria under the Program. Based on this guidance provided by the SBA and Treasury, the Company returned the funds received under the Program on April 29, 2020. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS The Company determines fair value in accordance with the provisions of FASB guidance, Fair Value Measurements and Disclosures , which defines fair value as an exit price, representing the amount that would be received from the sale of an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. As such, fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, a three-level fair value hierarchy that prioritizes the inputs used to measure fair value was established. There are three levels of inputs used to measure fair value and for disclosure purposes. Level 1 relates to quoted market prices for identical assets or liabilities in active markets. Level 2 relates to observable inputs other than quoted prices included in Level 1. Level 3 relates to unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. The Company’s non-financial assets measured at fair value on a nonrecurring basis include goodwill and intangibles assets. The determination of our intangible fair values includes several assumptions and inputs (Level 3) that are subject to various risks and uncertainties. Management believes it has made reasonable estimates and judgments concerning these risks and uncertainties. All other financial assets and liabilities are carried at amortized cost. The Company’s cash is representative of fair value as these balances are comprised of deposits available on demand. Accounts receivable, prepaid wires, accounts payable and wire transfers and money orders payable are representative of their fair values because of the short turnover of these items. The Company’s financial liabilities include its revolving credit facility and term loan. The fair value of the term loan, which approximates book value, is estimated by discounting the future cash flows using a current market interest rate. The estimated fair value of the revolving credit facility would approximate face value given the payment schedule and interest rate structure, which approximates current market interest rates. |
STOCKHOLDERS' EQUITY AND SHARE-
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION | STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION On September 30, 2020, the Company entered into an underwriting agreement with certain selling stockholders and several underwriters relating to the underwritten public offering of 4.9 million shares of the Company’s common stock at a price to the public of $13.50 per share. The closing of the offering occurred on October 5, 2020. Also, on November 4, 2020, the underwriters completed the purchase of 0.7 million additional shares of common stock at the same price as the initial shares under a 30-day option granted by certain of the selling stockholders. The Company did not receive any of the proceeds from the offering. It did, however, incur approximately $0.5 million in certain costs, which are included in other selling, general and administrative expenses in the condensed consolidated statement of operations and comprehensive income. On June 26, 2020, at the 2020 Annual Meeting of Stockholders, the Company's stockholders approved the International Money Express, Inc. 2020 Omnibus Equity Compensation Plan (the “2020 Plan”), which provides for the granting of stock-based incentive awards, including stock options and restricted stock units (“RSUs”), to employees and independent directors of the Company. There are 3.4 million shares of the Company's common stock available for issuance under the 2020 Plan, including 0.4 million shares that were available for grant under the International Money Express, Inc. 2018 Omnibus Equity Compensation Plan (the “2018 Plan”). As of September 30, 2020, there are 0.3 million stock options granted under the 2020 Plan. The 2018 Plan was terminated effective June 26, 2020. Hereafter, we refer to the 2020 Plan and 2018 Plan together as the “Plans.” The value of each option grant is estimated on the grant date using the Black-Scholes option pricing model (“BSM”). The option pricing model requires the input of certain assumptions, including the grant date fair value of our common stock, expected volatility, risk-free interest rates, expected term and expected dividend yield. To determine the grant date fair value of the Company’s common stock, we use the closing market price of our common stock at the grant date. We also use an expected volatility based on the historical volatility of the Company's common stock and the “simplified” method for calculating the expected life of our stock options as the options are “plain vanilla” and we do not have any significant historical post-vesting activity. We have elected to account for forfeitures as they occur. The risk-free interest rates are obtained from publicly available U.S. Treasury yield curve rates. Share-based compensation is recognized as an expense on a straight-line basis over the requisite service period, which is generally the vesting period. The stock options issued under the Company’s Plans have 10-year terms and vest in four equal annual installments beginning one year after the date of the grant. During the nine months ended September 30, 2020, 0.7 million stock options vested. The Company recognized compensation expense for stock options of approximately $0.7 million and $0.6 million for the three months ended September 30, 2020 and 2019, respectively, and $1.9 million for both the nine months ended September 30, 2020 and 2019, which are included in salaries and benefits in the condensed consolidated statements of operations and comprehensive income. As of September 30, 2020, there were 3.2 million outstanding stock options and unrecognized compensation expense of $7.4 million is expected to be recognized over a weighted-average period of 2.5 years. A summary of the stock option activity under the Company’s Plans during the nine months ended September 30, 2020 is presented below: Number of Weighted-Average Weighted-Average Weighted-Average Outstanding at December 31, 2019 2,905,219 $ 10.51 8.74 $ 3.58 Granted 555,000 $ 12.66 $ 5.54 Exercised (47,500) $ 9.98 $ 3.45 Forfeited (244,792) $ 11.66 $ 3.89 Outstanding at September 30, 2020 3,167,927 $ 10.81 8.24 $ 3.90 Exercisable at September 30, 2020 1,239,443 $ 10.11 7.88 $ 3.48 The RSUs issued under the Company’s Plans to the Company’s independent directors vest on the one-year anniversary from the grant date and the RSUs issued under the 2020 Plan to the Company’s employees vest with respect to 25% of the shares on each of the first four anniversaries of the date of grant. The Company recognized compensation expense for RSUs of $89.1 thousand and $17.5 thousand for the three months ended September 30, 2020 and 2019, respectively, and $0.3 million and $0.1 million for the nine months ended September 30, 2020 and 2019, respectively, which is included in salaries and benefits in the condensed consolidated statements of operations and comprehensive income. During the nine months ended September 30, 2020, 10.0 thousand RSUs were granted to the Company's employees and no RSUs vested. There were no forfeited RSUs during the nine months ended September 30, 2020. As of September 30, 2020, there was $0.4 million of unrecognized compensation expense for the restricted stock units, which is expected to be recognized over a weighted-average period of 1.74 years. |
EARNINGS PER SHARE
EARNINGS PER SHARE | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHAREBasic earnings per share is calculated by dividing net income for the period by the weighted average number of common shares outstanding for the period. In computing dilutive earnings per share, basic earnings per share is adjusted for the assumed issuance of all applicable potentially dilutive share-based awards, including common stock options and RSUs. Below are basic and diluted earnings per share for the periods indicated (in thousands, except for share data): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Net income for basic and diluted earnings per common share $ 9,498 $ 4,038 $ 24,164 $ 14,268 Shares: Weighted-average common shares outstanding – basic 38,050,610 37,984,316 38,040,339 37,230,831 Effect of dilutive securities: RSUs 12,721 19,222 9,570 16,555 Stock options 589,376 283,164 196,520 100,975 Warrants — — — 17,010 Weighted-average common shares outstanding – diluted 38,652,707 38,286,702 38,246,429 37,365,371 Earnings per common share – basic $ 0.25 $ 0.11 $ 0.64 $ 0.38 Earnings per common share – diluted $ 0.25 $ 0.11 $ 0.63 $ 0.38 As of September 30, 2020, there were 0.7 million options excluded from the diluted earnings per share calculation because, under the treasury stock method, the inclusion of these would be anti-dilutive. As of September 30, 2019, there were 0.4 million options excluded from the diluted earnings per share calculation because, under the treasury stock method, the inclusion of these would be anti-dilutive. In April 2019, the Company executed a tender offer for all warrants, subsequent to which all warrants ceased to exist. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES A reconciliation between the income tax provision at the US statutory tax rate and the Company’s income tax provision on the condensed consolidated statements of operations and comprehensive income is below (in thousands, except for tax rates): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Income before income taxes $ 13,042 $ 6,291 $ 33,053 $ 20,204 US statutory tax rate 21 % 21 % 21 % 21 % Income tax expense at statutory rate 2,739 1,321 6,941 4,243 State tax expense, net of federal 745 345 1,803 1,140 Foreign tax rates different from U.S. statutory rate 19 26 78 41 Non-deductible expenses 92 218 114 246 Credits (7) 8 (10) (1) Other (44) 335 (37) 267 Total tax provision $ 3,544 $ 2,253 $ 8,889 $ 5,936 Effective income tax rates for interim periods are based upon our current estimated annual rate. The Company’s effective income tax rate varies based upon an estimate of taxable earnings as well as on the mix of taxable earnings in the various states and countries in which we operate. Changes in the annual allocation and apportionment of the Company’s activity among these jurisdictions results in changes to the effective rate utilized to measure the Company’s deferred tax assets and liabilities. As presented in the income tax reconciliation above, the tax provision recognized on the condensed consolidated statements of operations and comprehensive income was affected by state taxes, non-deductible expenses, share-based compensation expenses and foreign tax rates applicable to the Company’s foreign subsidiaries that are higher or lower than the U.S. statutory rate. In January 2020, Intermex Holdings II, Inc., the Company's parent company prior to the 2018 merger, was notified by the IRS that its 2017 federal income tax return was selected for examination. In August 2020, the examination was closed with no changes to the reported tax. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Leases The Company is a party to leases for office space, warehouses and Company-operated store locations. Rent expense under all operating leases, included in other selling, general and administrative expenses in the condensed consolidated statements of operations and comprehensive income, amounted to approximately $0.6 million and $0.5 million for the three months ended September 30, 2020 and 2019, respectively, and $1.6 million and $1.5 million for the nine months ended September 30, 2020 and 2019, respectively. At September 30, 2020, future minimum rental payments required under operating leases for the remainder of 2020 and thereafter are as follows (in thousands): 2020 $ 385 2021 1,374 2022 1,096 2023 882 2024 776 Thereafter 662 $ 5,175 Contingencies and Legal Proceedings The Company is subject to legal proceedings and claims that have arisen in the ordinary course of its business and have not been finally adjudicated. Although there can be no assurance as to the ultimate disposition of these matters, it is the opinion of the Company’s management, based upon the information available at this time and the stage of the proceedings, that it is not possible to determine the probability of loss or estimate of damages, and therefore, the Company has not established a reserve for any of these proceedings, except for the matter related to a complaint filed under the Telephone Consumer Protection Act of 1991 (the “TCPA claim”) described below. On May 30, 2019, Stuart Sawyer filed a putative class action complaint in the United States District Court for the Southern District of Florida asserting a claim under the TCPA, 47 U.S.C. § 227, et seq., based on allegations that since May 30, 2015, the Company had sent text messages to class members’ wireless telephones without their consent. Following a mediation held on October 7, 2019, the Company and the plaintiff entered into a term sheet providing the general terms for the settlement of the action, which was memorialized in a definitive Settlement Agreement on March 16, 2020 subject to subsequent Court approval. The Settlement Agreement provides for resolution of Mr. Sawyer's TCPA claims and the claims of a class of similarly situated individuals, as defined in the complaint, who received text messages from the Company during the period May 30, 2015 through October 7, 2019, and for the creation of a $3.25 million settlement fund that will be used to pay all class member claims, class counsel's fees and the costs of administering the settlement. The Settlement Agreement also established procedures for the notification of claimants and the processing of claims. The settlement fund will be managed by a duly-appointed settlement administrator which will be authorized to communicate with class members, process claims and make payments from the fund in accordance with the terms of the Settlement Agreement and the final judgment in the case. No amount of the settlement fund will revert to the Company; instead, any unclaimed funds will be sent to a consumer advocacy organization approved by the Court. The remaining balance of the amount payable under the Settlement Agreement of approximately $2.9 million is included in accrued and other liabilities in the condensed consolidated balance sheet as of September 30, 2020. The $2.9 million was paid to the settlement fund in October 2020. The Company operates in all U.S. states, two U.S. territories and three other countries. Money transmitters and their agents are under regulation by state and federal laws. Violations may result in civil or criminal penalties or a prohibition from providing money transfer services in a particular jurisdiction. It is the opinion of the Company’s management, based on information available at this time, that the expected outcome of regulatory examinations will not have a material adverse effect on either the results of operations or financial condition of the Company. Regulatory Requirements Pursuant to applicable licensing laws, certain domestic subsidiaries of the Company are required to maintain minimum tangible net worth and liquid assets (eligible securities) to cover the amount outstanding of wire transfers and money orders payable. As of September 30, 2020, the Company’s subsidiaries were in compliance with these two requirements. |
BUSINESS AND ACCOUNTING POLIC_2
BUSINESS AND ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The condensed consolidated financial statements are prepared in accordance with accounting principles generally accepted in the U.S. (“GAAP”). All significant inter-company balances and transactions have been eliminated from the condensed consolidated financial statements. The Company’s interim condensed consolidated financial statements and related notes are unaudited. In the opinion of management, all adjustments (including normal recurring adjustments) and disclosures necessary for a fair presentation of these interim financial statements have been included. The results reported in these interim financial statements are not necessarily indicative of the results that may be reported for the entire year. Certain information and footnote disclosures required by GAAP have been condensed or omitted. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. |
Risks and Uncertainties | Risks and Uncertainties On January 30, 2020, the World Health Organization (“WHO”) announced a global health emergency because of the outbreak of a new strain of coronavirus (“COVID-19”) and the risks to the international community as the virus spread globally beyond its point of origin. In March 2020, the WHO classified the COVID-19 outbreak as a pandemic, based on the rapid increase in exposure globally and national, state and local governments in the jurisdictions where we operate and serve our customers imposed emergency restrictions to mitigate the spread of the virus. Starting in March 2020, governmental authorities took measures that restricted the normal course of operations of businesses and consumers. Although those restrictions were in place for most of the second and third quarter and affected the Company, sending and paying agents as well as consumers and their beneficiaries, those measures did not have a material adverse effect on the Company’s financial condition, results of operations and cash flows for the three and nine month periods ended September 30, 2020. The Company and our sending agents are considered essential businesses under current federal guidance; however, the Company’s business is dependent upon the willingness and ability of its employees, network of agents and consumers to conduct money transfer services and the ultimate effects of the economic disruption caused by the pandemic and responses thereto. Although the Company’s operations continued effectively despite social distancing and other measures taken in response to the pandemic, the ultimate impact of the COVID-19 pandemic on our results of operations and financial condition is dependent on future developments, including the duration of the pandemic and the related extent of its severity, as well as its impact on the economic conditions, particularly the level of unemployment of our customers, all of which remain uncertain and cannot be predicted at this time. If the global response to contain the COVID-19 pandemic escalates further or is unsuccessful, or if governmental decisions to ease pandemic related restrictions are ineffective, premature, counterproductive or reversed, the Company could experience a material adverse effect on its business, financial condition, results of operations and cash flows. |
Accounting Pronouncements | Accounting Pronouncements The Financial Accounting Standards Board (“FASB”) issued guidance, Leases (Topic 842) , to increase transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet for those leases classified as operating leases under previous GAAP. The guidance requires that a lessee recognizes a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term on the balance sheet. This guidance is required to be adopted by the Company on January 1, 2022 and may be applied using either the earliest period adjustment method or the modified retrospective approach. The adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. The FASB issued amended guidance, Intangibles – Goodwill and other (Topic 350): Simplifying the Test for Goodwill Impairment . The amended standard simplifies how an entity tests goodwill by eliminating Step 2 of the goodwill impairment test related to measuring an impairment charge. Instead, impairment will be recorded for the amount that the carrying amount of a reporting unit exceeds its fair value. This new guidance is effective for the Company on January 1, 2021. The adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. The FASB issued amended guidance, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract . The amended standard requires implementation costs incurred by customers in cloud computing arrangements to be deferred and recognized over the term of the arrangement, if those costs would be capitalized by the customers in a software licensing arrangement. This new guidance is effective for the Company on January 1, 2021. The adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. The FASB issued guidance, Simplifying the Accounting for Income Taxes (Topic 740) , which removes certain exceptions to the general principles in Topic 740 and improves consistent application of and simplifies GAAP for other areas of Topic 740 by clarifying and amending existing guidance. This new guidance is effective for the Company on January 1, 2021. The adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. The FASB issued guidance, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , regarding the measurement of credit losses for certain financial instruments. The new standard replaces the incurred loss model with a current expected credit loss (“CECL”) model. The CECL model is based on historical experience, adjusted for current conditions and reasonable and supportable forecasts. The Company is currently required to adopt the new standard on January 1, 2023. The Company is currently evaluating the impact this guidance will have on the condensed consolidated financial statements. The FASB issued guidance, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , which provides optional expedient and exceptions for applying generally accepted accounting principles to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. In response to the concerns about structural risks of interbank offered rates (“IBORs”) and, particularly, the risk of cessation of the LIBOR, regulators in several jurisdictions around the world have undertaken reference rate reform initiatives to identify alternative reference rates that are more observable or transaction based and less susceptible to manipulation. This accounting standards update provides companies with optional guidance to ease the potential accounting burden associated with transitioning away from reference rates that are expected to be discontinued. This new guidance may be adopted by the Company no later than December 1, 2022, with early adoption permitted. The potential adoption of this guidance is not expected to have a material impact on the condensed consolidated financial statements. |
REVENUES (Tables)
REVENUES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues from Contracts with Customers | The Company recognized revenues from contracts with customers for the three and nine months ended September 30, 2020 and 2019, as follows (in thousands): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Wire transfer and money order fees $ 82,890 $ 72,710 $ 223,171 $ 202,202 Discounts and promotions (244) (242) (637) (792) Wire transfer and money order fees, net 82,646 72,468 222,534 201,410 Foreign exchange gain, net 12,296 12,272 33,510 33,297 Other income 652 594 1,863 1,652 Total revenues $ 95,594 $ 85,334 $ 257,907 $ 236,359 |
ACCOUNTS RECEIVABLE, NET OF A_2
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Accounts Receivable, Allowance for Credit Loss | Accounts receivable represent outstanding balances from sending agents for pending wire transfers or money orders from our customers. The outstanding balance consists of the following (in thousands): September 30, 2020 December 31, 2019 Accounts receivable $ 61,205 $ 40,513 Allowance for credit losses (1,243) (759) Accounts receivable, net $ 59,962 $ 39,754 The changes in the allowance for credit losses related to accounts receivable and notes receivable are as follows (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Beginning balance $ 1,350 $ 1,236 $ 1,236 $ 1,290 Provision 320 619 1,421 1,171 Charge-offs (120) (589) (1,338) (1,317) Recoveries 154 45 385 167 Ending Balance $ 1,704 $ 1,311 $ 1,704 $ 1,311 The allowance for credit losses allocated by financial instrument category is as follows (in thousands): September 30, 2020 December 31, 2019 Accounts receivable $ 1,243 $ 759 Notes receivable (1) 461 477 Allowance for credit losses $ 1,704 $ 1,236 (1) This allowance relates to $1.3 million in notes receivable from sending agents as of both September 30, 2020 and December 31, 2019. The current portion of these notes amounted to $1.1 million and $1.0 million as of September 30, 2020 and December 31, 2019, respectively. The net current portion is included in prepaid expenses and other current assets (see Note 4) and the net long-term portion is included in other assets in the condensed consolidated balance sheets. |
PREPAID EXPENSES AND OTHER CU_2
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Prepaid Expense and Other Assets [Abstract] | |
Prepaid Expenses and Other Current Assets | Prepaid expenses and other current assets consisted of the following (in thousands): September 30, 2020 December 31, 2019 Prepaid insurance $ 431 $ 404 Prepaid fees 682 1,211 Notes receivable, net of allowance 705 648 Prepaid taxes 130 1,025 Other prepaid expenses and current assets 737 867 $ 2,685 $ 4,155 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Goodwill and Intangible Assets | The following table presents the changes in goodwill and intangible assets (in thousands): Goodwill Intangibles Balance at December 31, 2019 $ 36,260 $ 27,381 Amortization expense — (5,213) Balance at September 30, 2020 $ 36,260 $ 22,168 |
Amortization Expense Related to Intangible Assets | Amortization expense related to intangible assets for the next five years and thereafter is as follows (in thousands): 2020 $ 1,738 2021 5,161 2022 3,997 2023 2,989 2024 2,270 Thereafter 6,013 $ 22,168 |
WIRE TRANSFERS AND MONEY ORDE_2
WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Wire Transfer and Money Orders Payable | Wire transfers and money orders payable, net consisted of the following (in thousands): September 30, 2020 December 31, 2019 Wire transfers payable, net $ 18,995 $ 16,058 Customer voided wires payable 13,888 10,937 Money orders payable 15,306 13,202 $ 48,189 $ 40,197 |
ACCRUED AND OTHER LIABILITIES (
ACCRUED AND OTHER LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Payables and Accruals [Abstract] | |
Accrued and Other Liabilities | Accrued and other liabilities consisted of the following (in thousands): September 30, 2020 December 31, 2019 Commissions payable to sending agents $ 11,866 $ 10,124 Accrued legal settlement (see Note 13) 2,925 3,250 Accrued salaries and benefits 2,413 2,374 Accrued bank charges 1,158 976 Accrued interest 12 17 Accrued legal fees 343 120 Accrued other professional fees 848 655 Accrued taxes 866 2,345 Deferred revenue loyalty program 2,602 2,495 Other 1,053 718 $ 24,086 $ 23,074 |
Changes in Deferred Revenue Loyalty Program Liability | The following table shows the changes in the deferred revenue loyalty program liability (in thousands): Balance, December 31, 2019 $ 2,495 Revenue deferred during the period 535 Revenue recognized during the period (428) Balance, September 30, 2020 $ 2,602 |
DEBT (Tables)
DEBT (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Instruments | Debt consisted of the following (in thousands): September 30, 2020 December 31, 2019 Term loan $ 91,298 $ 97,044 Less: Current portion of long-term debt (1) (7,044) (7,044) Less: Debt origination costs (1,914) (2,377) $ 82,340 $ 87,623 (1) Current portion of long-term debt is net of debt origination costs of approximately $0.6 million both at September 30, 2020 and December 31, 2019. |
STOCKHOLDERS' EQUITY AND SHAR_2
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Option Activity | A summary of the stock option activity under the Company’s Plans during the nine months ended September 30, 2020 is presented below: Number of Weighted-Average Weighted-Average Weighted-Average Outstanding at December 31, 2019 2,905,219 $ 10.51 8.74 $ 3.58 Granted 555,000 $ 12.66 $ 5.54 Exercised (47,500) $ 9.98 $ 3.45 Forfeited (244,792) $ 11.66 $ 3.89 Outstanding at September 30, 2020 3,167,927 $ 10.81 8.24 $ 3.90 Exercisable at September 30, 2020 1,239,443 $ 10.11 7.88 $ 3.48 |
EARNINGS PER SHARE (Tables)
EARNINGS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Net Loss per Share | Below are basic and diluted earnings per share for the periods indicated (in thousands, except for share data): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Net income for basic and diluted earnings per common share $ 9,498 $ 4,038 $ 24,164 $ 14,268 Shares: Weighted-average common shares outstanding – basic 38,050,610 37,984,316 38,040,339 37,230,831 Effect of dilutive securities: RSUs 12,721 19,222 9,570 16,555 Stock options 589,376 283,164 196,520 100,975 Warrants — — — 17,010 Weighted-average common shares outstanding – diluted 38,652,707 38,286,702 38,246,429 37,365,371 Earnings per common share – basic $ 0.25 $ 0.11 $ 0.64 $ 0.38 Earnings per common share – diluted $ 0.25 $ 0.11 $ 0.63 $ 0.38 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Income Tax Disclosure [Abstract] | |
Reconciliation of Tax Provision (Benefit) | A reconciliation between the income tax provision at the US statutory tax rate and the Company’s income tax provision on the condensed consolidated statements of operations and comprehensive income is below (in thousands, except for tax rates): Three Months Ended Nine Months Ended 2020 2019 2020 2019 Income before income taxes $ 13,042 $ 6,291 $ 33,053 $ 20,204 US statutory tax rate 21 % 21 % 21 % 21 % Income tax expense at statutory rate 2,739 1,321 6,941 4,243 State tax expense, net of federal 745 345 1,803 1,140 Foreign tax rates different from U.S. statutory rate 19 26 78 41 Non-deductible expenses 92 218 114 246 Credits (7) 8 (10) (1) Other (44) 335 (37) 267 Total tax provision $ 3,544 $ 2,253 $ 8,889 $ 5,936 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Rental Payments | At September 30, 2020, future minimum rental payments required under operating leases for the remainder of 2020 and thereafter are as follows (in thousands): 2020 $ 385 2021 1,374 2022 1,096 2023 882 2024 776 Thereafter 662 $ 5,175 |
BUSINESS AND ACCOUNTING POLIC_3
BUSINESS AND ACCOUNTING POLICIES (Details) | 9 Months Ended |
Sep. 30, 2020store | |
Noncontrolling Interest [Line Items] | |
Number of company owned stores | 34 |
Intermex Guatemala | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 99.80% |
Intermex Mexico | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 98.00% |
Intermex Wire Transfer Corp | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
Intermex Wire Transfer II, LLC | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
Canada International Transfers Corp | |
Noncontrolling Interest [Line Items] | |
Ownership percentage | 100.00% |
REVENUES, Revenues from Contrac
REVENUES, Revenues from Contract with Customers (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Wire transfer and money order fees | $ 82,890 | $ 72,710 | $ 223,171 | $ 202,202 |
Discounts and promotions | (244) | (242) | (637) | (792) |
Revenues | 95,594 | 85,334 | 257,907 | 236,359 |
Wire transfer and money order fees, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 82,646 | 72,468 | 222,534 | 201,410 |
Foreign exchange gain, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12,296 | 12,272 | 33,510 | 33,297 |
Other income | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 652 | $ 594 | $ 1,863 | $ 1,652 |
REVENUES, Narrative (Details)
REVENUES, Narrative (Details) | 9 Months Ended |
Sep. 30, 2020obligationpoint | |
Revenue from Contract with Customer [Abstract] | |
Point earned for each wire transfer processed | point | 1 |
Point expiration period for non completion of wire transfer transaction | 180 days |
Point expiration period after end of program | 30 days |
Number of performance obligation | obligation | 1 |
ACCOUNTS RECEIVABLE, NET OF A_3
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE, Accounts Receivable Outstanding Balance (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Accounts receivable | $ 61,205 | $ 40,513 |
Allowance for credit losses | (1,243) | (759) |
Accounts receivable, net | $ 59,962 | $ 39,754 |
ACCOUNTS RECEIVABLE, NET OF A_4
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE, Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Beginning balance | $ 1,350 | $ 1,236 | $ 1,236 | $ 1,290 |
Provision | 320 | 619 | 1,421 | 1,171 |
Charge-offs | (120) | (589) | (1,338) | (1,317) |
Recoveries | 154 | 45 | 385 | 167 |
Ending Balance | $ 1,704 | $ 1,311 | $ 1,704 | $ 1,311 |
ACCOUNTS RECEIVABLE, NET OF A_5
ACCOUNTS RECEIVABLE, NET OF ALLOWANCE, Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Accounts receivable | $ 1,243 | $ 759 |
Notes receivable | 461 | 477 |
Allowance for credit losses | 1,704 | 1,236 |
Notes receivable allowance | 1,300 | 1,300 |
Short-term portion of notes receivable allowance | $ 1,100 | $ 1,000 |
PREPAID EXPENSES AND OTHER CU_3
PREPAID EXPENSES AND OTHER CURRENT ASSETS (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Prepaid Expense and Other Assets [Abstract] | ||
Prepaid insurance | $ 431 | $ 404 |
Prepaid fees | 682 | 1,211 |
Notes receivable, net of allowance | 705 | 648 |
Prepaid taxes | 130 | 1,025 |
Other prepaid expenses and current assets | 737 | 867 |
Prepaid expenses and other assets | $ 2,685 | $ 4,155 |
GOODWILL AND INTANGIBLE ASSETS,
GOODWILL AND INTANGIBLE ASSETS, Narrative (Details) | 9 Months Ended |
Sep. 30, 2020 | |
Agent Relationships | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Intangible assets amortization period, under accelerated method | 15 years |
Trade Names | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Intangible assets amortization period, under accelerated method | 15 years |
Developed Technology Rights | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Intangible assets amortization period, under accelerated method | 15 years |
Number of development years for state-of-the-art system | 20 years |
Other Intangible Assets | |
Finite-Lived Intangible Assets, Net [Abstract] | |
Intangible asset, useful life | 10 years |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS, Changes in Goodwill and Intangible Assets (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Goodwill | |
Goodwill, beginning balance | $ 36,260 |
Amortization expense | 0 |
Goodwill, ending balance | 36,260 |
Intangibles | |
Other intangible assets, beginning balance | 27,381 |
Amortization expense | (5,213) |
Other intangible assets, ending balance | $ 22,168 |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS, Amortization Expense Related to Intangible Assets (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2020 | $ 1,738 |
2021 | 5,161 |
2022 | 3,997 |
2023 | 2,989 |
2024 | 2,270 |
Thereafter | 6,013 |
Net amortizable intangible assets | $ 22,168 |
WIRE TRANSFERS AND MONEY ORDE_3
WIRE TRANSFERS AND MONEY ORDERS PAYABLE, NET (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Wire transfers payable, net | $ 18,995 | $ 16,058 |
Customer voided wires payable | 13,888 | 10,937 |
Money orders payable | 15,306 | 13,202 |
Total wire transfers and money orders payable, net | $ 48,189 | $ 40,197 |
ACCRUED AND OTHER LIABILITIES,
ACCRUED AND OTHER LIABILITIES, Accrued and Other Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Payables and Accruals [Abstract] | ||
Commissions payable to sending agents | $ 11,866 | $ 10,124 |
Accrued legal settlement | 2,925 | 3,250 |
Accrued salaries and benefits | 2,413 | 2,374 |
Accrued bank charges | 1,158 | 976 |
Accrued interest | 12 | 17 |
Accrued legal fees | 343 | 120 |
Accrued other professional fees | 848 | 655 |
Accrued taxes | 866 | 2,345 |
Deferred revenue loyalty program | 2,602 | 2,495 |
Other | 1,053 | 718 |
Total accrued and other liabilities | $ 24,086 | $ 23,074 |
ACCRUED AND OTHER LIABILITIES_2
ACCRUED AND OTHER LIABILITIES, Changes in Deferred Revenue Loyalty Program Liability (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Movement in Deferred Revenue [Roll Forward] | |
Beginning balance | $ 2,495 |
Revenue deferred during the period | 535 |
Revenue recognized during the period | (428) |
Ending balance | $ 2,602 |
DEBT, Schedule of Debt Instrume
DEBT, Schedule of Debt Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Less: Current portion of long-term debt | $ (7,044) | $ (7,044) |
Less: Debt origination costs | (1,914) | (2,377) |
Long-term debt, noncurrent | 82,340 | 87,623 |
Debt origination costs, current | 600 | 600 |
Term loan | ||
Debt Instrument [Line Items] | ||
Long-term debt, gross | $ 91,298 | $ 97,044 |
DEBT, Narrative (Details)
DEBT, Narrative (Details) | Apr. 20, 2020USD ($) | Nov. 07, 2018USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |||||
Funds received under the Paycheck Protection Program | $ 3,500,000 | ||||
Minimum | |||||
Debt Instrument [Line Items] | |||||
Fixed charge coverage ratio | 1.25 | ||||
Maximum | |||||
Debt Instrument [Line Items] | |||||
Consolidated leverage ratio | 3.25 | ||||
Term loan | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 91,298,000 | $ 97,044,000 | |||
Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Long-term debt, gross | $ 0 | $ 0 | |||
Credit Agreement | |||||
Debt Instrument [Line Items] | |||||
Unused line fee percentage | 0.35% | ||||
Credit Agreement | LIBOR | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 4.50% | ||||
Credit Agreement | Base Rate | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 3.50% | ||||
Credit Agreement | Term loan | |||||
Debt Instrument [Line Items] | |||||
Debt instrument, face amount | $ 90,000,000 | ||||
Effective interest rate | 5.93% | ||||
Credit Agreement | Term loan | Year 1 | |||||
Debt Instrument [Line Items] | |||||
Periodic repayment percentage | 5.00% | ||||
Credit Agreement | Term loan | Year 2 | |||||
Debt Instrument [Line Items] | |||||
Periodic repayment percentage | 7.50% | ||||
Credit Agreement | Term loan | Year 3 | |||||
Debt Instrument [Line Items] | |||||
Periodic repayment percentage | 7.50% | ||||
Credit Agreement | Term loan | Year 4 | |||||
Debt Instrument [Line Items] | |||||
Periodic repayment percentage | 10.00% | ||||
Credit Agreement | Term loan | Year 5 | |||||
Debt Instrument [Line Items] | |||||
Periodic repayment percentage | 10.00% | ||||
Credit Agreement | Revolving credit facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 35,000,000 | ||||
Effective interest rate | 0.99% | ||||
Credit Agreement | Incremental Facility | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 30,000,000 | ||||
Repayments under revolving loan, net | $ 12,000,000 |
STOCKHOLDERS' EQUITY AND SHAR_3
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION, Narrative (Details) | Nov. 03, 2020USD ($)shares | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2020USD ($)$ / sharesshares | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)installment$ / sharesshares | Sep. 30, 2019USD ($) | Jun. 26, 2020shares |
the “2020 Plan” | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares available for grant (in shares) | 3,400,000 | |||||||
Shares issued in period (in shares) | 300,000 | |||||||
the “2018 Plan” | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Number of shares available for grant (in shares) | 400,000 | |||||||
Stock options vested (in shares) | 700,000 | |||||||
the “2018 Plan” | Stock options | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Stock options term | 10 years | |||||||
Number of equal installments for options vesting | installment | 4 | |||||||
Award vesting period | 1 year | |||||||
Share-based compensation expense | $ | $ 700,000 | $ 600,000 | $ 1,900,000 | $ 1,900,000 | ||||
Outstanding stock options (in shares) | 3,200,000 | 3,200,000 | 3,200,000 | 3,200,000 | ||||
Unrecognized compensation expense | $ | $ 7,400,000 | $ 7,400,000 | $ 7,400,000 | $ 7,400,000 | ||||
Weighted-average period for recognition | 2 years 6 months | |||||||
Granted (in shares) | 555,000 | |||||||
Forfeited RSUs (in shares) | 244,792 | |||||||
the “2018 Plan” | RSUs | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Award vesting period | 1 year | |||||||
Stock options vested (in shares) | 0 | |||||||
Share-based compensation expense | $ | 89,100 | $ 17,500 | $ 300,000 | $ 100,000 | ||||
Unrecognized compensation expense | $ | $ 400,000 | $ 400,000 | $ 400,000 | $ 400,000 | ||||
Weighted-average period for recognition | 1 year 8 months 26 days | |||||||
Percentage of vesting of award | 25.00% | |||||||
Granted (in shares) | 10,000 | |||||||
Forfeited RSUs (in shares) | 0 | |||||||
Underwriting Agreement | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Common stock newly issued (in shares) | 4,900,000 | |||||||
Share price (in dollars per share) | $ / shares | $ 13.50 | $ 13.50 | $ 13.50 | $ 13.50 | ||||
Underwriting Agreement | Subsequent Event | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Additional shares of common stock issuable at the option of underwriters (in shares) | 700,000 | |||||||
Period of option for purchasing additional shares | 30 days | |||||||
Offering cost | $ | $ 500,000 |
STOCKHOLDERS' EQUITY AND SHAR_4
STOCKHOLDERS' EQUITY AND SHARE-BASED COMPENSATION, Stock Option Activity (Details) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020$ / sharesshares | Dec. 31, 2019$ / sharesshares | |
Weighted-Average Grant Date Fair Value | ||
Exercisable ending balance (in dollars per share) | $ 3.48 | |
Stock options | the “2018 Plan” | ||
Number of Options | ||
Outstanding, beginning balance (in shares) | shares | 2,905,219 | |
Granted (in shares) | shares | 555,000 | |
Exercised (in shares) | shares | (47,500) | |
Forfeited (in shares) | shares | (244,792) | |
Outstanding, ending balance (in shares) | shares | 3,167,927 | 2,905,219 |
Exercisable, ending balance (in shares) | shares | 1,239,443 | |
Weighted-Average Exercise Price | ||
Outstanding, beginning balance (in dollars per share) | $ 10.51 | |
Granted (in dollars per share) | 12.66 | |
Exercised (in dollars per share) | 9.98 | |
Forfeited (in dollars per share) | 11.66 | |
Outstanding, ending balance (in dollars per share) | 10.81 | $ 10.51 |
Exercisable, ending balance (in dollars per share) | $ 10.11 | |
Weighted-Average Remaining Contractual Term (Years) | ||
Weighted average remaining contractual term, outstanding | 8 years 2 months 26 days | 8 years 8 months 26 days |
Weighted average remaining contractual term, exercisable | 7 years 10 months 17 days | |
Weighted-Average Grant Date Fair Value | ||
Outstanding beginning balance (in dollars per share) | $ 3.58 | |
Granted (in dollars per share) | 5.54 | |
Exercised (in dollars per share) | 3.45 | |
Forfeited (in dollars per share) | 3.89 | |
Outstanding ending balance (in dollars per share) | $ 3.90 | $ 3.58 |
EARNINGS PER SHARE, Basic and D
EARNINGS PER SHARE, Basic and Diluted Net Loss per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Net Income (Loss) Per Share, Basic and Diluted [Abstract] | ||||
Net income for basic and diluted earnings per common share | $ 9,498 | $ 4,038 | $ 24,164 | $ 14,268 |
Shares: | ||||
Weighted-average common shares outstanding - basic (in shares) | 38,050,610 | 37,984,316 | 38,040,339 | 37,230,831 |
Weighted-average common shares outstanding - diluted (in shares) | 38,652,707 | 38,286,702 | 38,246,429 | 37,365,371 |
Earnings per common share – basic (in dollars per share) | $ 0.25 | $ 0.11 | $ 0.64 | $ 0.38 |
Earnings per common share – diluted (in dollars per share) | $ 0.25 | $ 0.11 | $ 0.63 | $ 0.38 |
RSUs | ||||
Shares: | ||||
Effect of dilutive securities (in shares) | 12,721 | 19,222 | 9,570 | 16,555 |
Stock options | ||||
Shares: | ||||
Effect of dilutive securities (in shares) | 589,376 | 283,164 | 196,520 | 100,975 |
Warrants | ||||
Shares: | ||||
Effect of dilutive securities (in shares) | 0 | 0 | 0 | 17,010 |
EARNINGS PER SHARE, Narrative (
EARNINGS PER SHARE, Narrative (Details) - shares shares in Millions | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Stock options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Securities excluded from computation of diluted loss per share (in shares) | 0.7 | 0.4 |
INCOME TAXES, Reconciliation of
INCOME TAXES, Reconciliation of Tax Provision (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Income before income taxes | $ 13,042 | $ 6,291 | $ 33,053 | $ 20,204 |
US statutory tax rate | 21.00% | 21.00% | 21.00% | 21.00% |
Income tax expense at statutory rate | $ 2,739 | $ 1,321 | $ 6,941 | $ 4,243 |
State tax expense, net of federal | 745 | 345 | 1,803 | 1,140 |
Foreign tax rates different from U.S. statutory rate | 19 | 26 | 78 | 41 |
Non-deductible expenses | 92 | 218 | 114 | 246 |
Credits | (7) | 8 | (10) | (1) |
Other | (44) | 335 | (37) | 267 |
Total tax provision | $ 3,544 | $ 2,253 | $ 8,889 | $ 5,936 |
COMMITMENTS AND CONTINGENCIES,
COMMITMENTS AND CONTINGENCIES, Narrative (Details) $ in Thousands | Oct. 07, 2019USD ($) | Oct. 31, 2020USD ($) | Sep. 30, 2020USD ($)countryterritory | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)countryterritory | Sep. 30, 2019USD ($) |
Loss Contingencies [Line Items] | ||||||
Rent expense | $ 600 | $ 500 | $ 1,600 | $ 1,500 | ||
Amount of settlement created | $ 3,250 | |||||
Balance of settlement liabilities | $ 2,900 | $ 2,900 | ||||
Number of territories in which entity operates | territory | 2 | 2 | ||||
Number of countries in which entity operates | country | 3 | 3 | ||||
Subsequent Event | ||||||
Loss Contingencies [Line Items] | ||||||
Amount paid for settlement | $ 2,900 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES, Future Minimum Rental Payments (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
2020 | $ 385 |
2021 | 1,374 |
2022 | 1,096 |
2023 | 882 |
2024 | 776 |
Thereafter | 662 |
Total | $ 5,175 |
Uncategorized Items - imxi-2020
Label | Element | Value |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,015,000) |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (1,015,000) |