MoneyGram 2005 Annual Report Download - page 20

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Table of Contents
Years Ended December 31,
2005 2004 2003 2002 2001
(Dollars and shares in thousands, except per share data)
Other Selected Data
Capital expenditures $ 47,359 $ 29,589 $ 27,128 $ 26,842 $ 32,225
Depreciation and amortization 32,465 29,567 27,295 25,894 30,552
Cash dividends declared per share (6) 0.07 0.20 0.36 0.36 0.36
Average investable balances (7) 6,726,790 6,772,124 6,979,247 6,131,145 4,992,650
Net investment margin (8) 1.91% 1.42% 1.30% 1.81% 1.96%
Approximate number of countries and territories served 170 170 160 155 152
Number of money order and money transfer locations 127,069 116,032 104,963 98,816 95,334
(1) Earnings per share for 2001 through 2003 is based on outstanding shares of Viad common stock. On June 30, 2004, Viad effected a 1:1 distribution of
MoneyGram common stock, for a total distribution of 88,556,077 shares.
(2) Unrestricted and restricted assets are comprised of cash and cash equivalents, receivables and investments. See Note 2 of the Notes to Consolidated
Financial Statements for the determination of unrestricted assets.
(3) Long-term debt for 2001 through 2003 represents Viad's long-term debt prior to the June 30, 2004 spin-off. In connection with the spin-off, Viad
repurchased $52.6 million of its medium-term notes and subordinated debt. In addition, Viad repaid $188.0 million of its outstanding commercial paper
and retired $9.0 million of industrial revenue bonds.
(4) Redeemable preferred stock relates solely to shares issued by Viad and redeemed in connection with the June 30, 2004 spin-off.
(5) Stockholders' equity for 2001 through 2003 represents Viad's capital structure prior to the June 30, 2004 spin-off.
(6) Cash dividends declared per share for 2000 through 2003 is based on dividends declared by Viad to holders of its common stock. Viad declared
dividends of $0.18 per share during the first half of 2004. MoneyGram declared dividends of $0.02 per share during the second half of 2004.
(7) Investable balances are comprised of cash and cash equivalents and investments.
(8) Net investment margin is determined as net investment revenue (investment revenue less investment commissions) divided by daily average investable
balances.
Item 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The following discussion should be read in conjunction with MoneyGram International, Inc.'s consolidated financial statements and related notes. This
discussion contains forward-looking statements that involve risks and uncertainties. MoneyGram's actual results could differ materially from those anticipated
due to various factors discussed under "Forward-Looking Statements" and elsewhere in this Annual Report on Form 10-K.
Our Separation from Viad Corp
On July 24, 2003, Viad announced a plan to separate its payment services segment, operated by Travelers Express Company, Inc. ("Travelers"), from its other
businesses into a new company, and to effect a tax-free distribution of its shares in that company to Viad's stockholders. On December 18, 2003, MoneyGram
was incorporated in Delaware as a subsidiary of Viad for the purpose of effecting the proposed distribution. On June 30, 2004, Travelers was merged with a
wholly owned subsidiary of MoneyGram and Viad distributed 88,556,077 shares of MoneyGram common stock to
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