Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
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| Statement |
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| We have been able to attain these outside results through the execution of our metrically driven strategy |
| We continue to deliver solid earnings and cash generation for our shareholders in every environment, and our fourth quarter results fully demonstrate that |
| That has done quite well, and I think we're executing and continuing to execute against that |
| Our guidance also anticipates a tenacious focus on efficiency and execution, that is part of our culture and why we feel better positioned than anybody else in the market |
| We'll continue to beat the market growth rate in both retail and digital |
| So that's what we mentioned in the text was that that program is going quite well, and we've executed well against it |
| Intermex continues to offer our best-in-class service and loyalty offerings through both our Retail and our Digital products |
| This is an advantage that no other provider can claim |
| Our technological advantage makes transacting fast and convenient for both Digital and Retail consumers |
| The overall -- actually, our overall approach to the market has been better margins |
| This strategy enabled the company to deliver products and services to consumers through the highest-performing retail agent network in the industry |
| Us in the market growth, which will gain further market share for us |
| We've brought the pricing component into finance, and Andrew Kugbei, who is head of the sales planning and analysis, has been running the pricing and we've actually done much better in terms of margins versus the margins in the year ago |
| This is when and where Intermex is able to best differentiate our value-added service where we can in turn capture margin and where we ultimately benefit our shareholders |
| We think we're gaining share at retail and we're gaining share at digital |
| As a result, we are delivering a highly attractive margin |
| Our experience is that contact drives many more wires, and the payback is really even good if the US team, but the fact that it's much more efficient cost wise to do this in Guatemala, we're able to triple our reach from the inside perspective without anywhere near tripling the cost of that function |
| Our expanding margins related to our Digital product place us in a great position to expand in new markets, including India, the Philippines, and others through our new partnership with Visa |
| So it's not at all cost but I feel pretty good about being able to pick up $20 million worth a quarter and then blocks on top of that |
| In summary, we continue executing the Intermex playbook and are well positioned to deliver another strong year for our shareholders |
| And finally, we'll utilize our strong liquidity and ability to generate cash to more aggressively pursue shares via our buyback program |
| As we do with our Retail business, we will leverage our best-in-class customer service and our metrical orientation to drive profitable wire growth |
| This translates into consistent product expansion, strong margins, exceptional cash generation, and a fortress of a balance sheet |
| Our margins will remain strong, justified by a premium product and highly tactical execution |
| I am pleased to report that our efforts are continuing to be productive, and the sales team continues to execute on that plan |
| Intermex is proud to announce fourth quarter earnings that are a testament to who we are as a company |
| Furthermore, adjusted EBITDA was up 14.5% to $33.3 million, and adjusted diluted EPS of 21.7% to $0.56 |
| It's a huge market opportunity |
| After that, we continue to see great value in the stock |
| We continue to strengthen our relationship with our retail agents while deepening our competitive mode and growing our mutually beneficial high-margin business |
| Statement |
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| As Bob mentioned earlier, revenue was at the lower end of our guidance, as we were not immune to the slowdown in send to Mexico |
| At the same time, shortly after Q3 earnings, we saw Mexico market growth slow considerably to levels we have not seen in years |
| We refrain from reacting to market pressures with a broad-brush approach that degrades margins for the company |
| While it is difficult to predict what our key markets will do in 2024, the guidance Andras will take you through later in the presentation anticipates underlying softness in that market for a period of time |
| This guidance takes into account a noteworthy step down in market growth for Mexico, the key corridor in Latin America |
| Bob Lisy I think we've seen the broader market, and certainly not only Mexico, but Guatemala and other key countries for us, slow down relative to growth, not as acutely as Mexico has |
| So, I think the overall market has slowed a bit to virtually just about every country in Latin America |
| I know earlier in the year, and I think it was in the third quarter, you guys mentioned some pricing pressures stemming from competitors |
| Dominican Republic, we're seeing that there's some slowing in that market |
| So the overall average might come down a bit, but nothing will be done to degrade the core business |
| I know kind of one of the largest global player I know on their call had mentioned they had returned to gaining share in Mexico after a long time and you've talked about pricing pressures in that corridor in past calls |
| On face value, it appears that the Average Principal is down year-over-year to $406 a transaction in Q4, that is mostly driven by the inclusion of La Nacional and iTransfer, where the send amounts are structurally lower |
| I think that geography is a little bit trickier because the margins aren't as good |
| We'll be much more aggressive there, but that doesn't degrade at all our current margins |
| The challenge for us is today our business is not weighted the same way as the market |
| Moreover, we've taken a decisive step by significantly enlarging our inside sales team, a move that marks a departure from traditional methods by tripling the team's size from twelve to 36 members and strategically positioning these roles offshore |
| So that weighting causes our growth to maybe look not as good as it does |
| And just lastly, are you able to put like a revenue range or in terms of growth, what Mexico is acting as a headwind for '24, like, five points of revenue growth, four points, seven points |
| So, it actually grew a tenth of a percent slower than it did during COVID in Q4, and we kind of projected that through '24 |
| In many cases, spending may not have achieved an ROI that would support that investment |
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