Western Union Company Results Highlights
Key Statistics and Reconciliation of Non-GAAP Measures
Non-GAAP related notes:
WesternUnion \\WU
(j) Represents the impact from the fluctuation in exchange rates between all foreign currency denominated amounts and the United States dollar. Constant currency results
exclude any benefit or loss caused by foreign exchange fluctuations between foreign currencies and the United States dollar, net of foreign currency hedges, which would not
have occurred if there had been a constant exchange rate. The Company believes that this measure provides management and investors with information about revenue results
and trends that eliminates currency volatility while increasing the comparability of the Company's underlying results and trends.
(k) On May 9, 2019, the Company completed the sale of its United States electronic bill payments business known as "Speedpay" to ACI Worldwide Corp. and ACW Worldwide,
Inc. ("ACI") for approximately $750 million in cash. In addition, on May 6, 2019, the Company completed the sale of Paymap Inc. ("Paymap"), which provides electronic
mortgage bill payment services, for contingent consideration and immaterial cash proceeds received at closing. Both Speedpay and Paymap were included as a component of
"Other" in the Company's segment reporting. 2019 revenues have been adjusted to exclude the carved out financial information for Speedpay and Paymap to compare the
year-over-year revenue change. These financial measures are non-GAAP measures and should not be considered a substitute for the GAAP measures. The Company has
included this information because management believes that presenting these measures as adjusted to exclude divestitures will provide investors with a more meaningful
comparison of results within the periods presented.
(1) Earnings before Interest, Taxes, Depreciation, and Amortization ("EBITDA”) results from taking operating income and adjusting for depreciation and amortization expenses.
EBITDA results provide an additional performance measurement calculation which helps neutralize the operating income effect of assets acquired in prior periods. The
Company ceased depreciation and amortization for its Business Solutions business during the second half of 2021 as this business was held for sale.
(m) Represents impact from expenses incurred in connection with an overall restructuring plan, approved by the Board of Directors on August 1, 2019, to improve the Company's
business processes and cost structure by reducing headcount and consolidating various facilities. While certain of these expenses are identifiable to the Company's business
segments, primarily to the Company's Consumer-to-Consumer segment, they have been excluded from the measurement of segment operating income provided to the Chief
Operating Decision Maker for purposes of assessing segment performance and decision making with respect to resource allocation. These expenses are therefore excluded
from the Company's segment operating income results. While these expenses are specific to this initiative, the types of expenses related to this initiative are similar to expenses
that the Company has previously incurred and can reasonably be expected to incur in the future. The Company believes that, by excluding the effects of these charges that can
impact operating trends, management and investors are provided with a measure that increases the comparability of the Company's underlying operating results. As of
December 31, 2020, all expenses associated with this plan have been incurred.
(n) Represents the impact from expenses incurred in connection with the Company's acquisition and divestiture activity, including for the review and closing of these transactions.
The Company believes that, by excluding the effects of these charges that can impact operating trends, management and investors are provided with a measure that increases
the comparability of the Company's underlying operating results.
(0) On April 12, 2021, the Company sold a substantial majority of the noncontrolling interest it held in a private company for cash proceeds of $50.9 million. As a result, the
Company recorded a pre-tax gain in the second quarter of 2021. The gain on the sale and the income taxes on the gain have been removed from adjusted results. The Company
believes excluding the impact of this gain will provide investors with a more meaningful comparison of results with the historical periods presented.
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